Sponsors (2)
The bill expands grant-funded help and consumer protections for the poorest rural households to install or repair private water and wastewater systems, while shifting costs to moderate-income households and introducing funding, cap, and administrative uncertainties that could limit program effectiveness.
Low-income rural households (income <60% of nonmetropolitan median) can receive grant-funded subgrants to build or repair private wells and decentralized wastewater systems, reducing out-of-pocket costs.
Homeowners receiving subgrants can have funds cover at least a 5-year performance warranty for decentralized wastewater systems, increasing consumer protection and lowering long-term maintenance costs.
Nonprofit organizations can receive grants to administer the program, leveraging local organizations' capacity to target assistance to community needs in rural areas.
Moderate-income rural households (≥60% of nonmetropolitan median) are required to use loans rather than grants, raising out-of-pocket and long-term costs for many middle-income homeowners.
An undefined edit to the authorization of appropriations leaves total funding levels and whether the program is expanded or reduced unclear, creating budgetary uncertainty for grantees and recipients.
An ambiguous or malformed change to the per-system dollar cap creates uncertainty about how much assistance individuals can receive and could delay or complicate program implementation.
Based on analysis of 1 section of legislative text.
Authorizes USDA grants to private nonprofits that must subgrant to households under 60% of nonmetropolitan median and lend to higher‑income households; permits 5‑year wastewater warranties; contains ambiguous cap and funding edits.
Official title: To amend the Consolidated Farm and Rural Development Act to modify provisions relating to rural decentralized water systems grants.
Introduced March 12, 2026 by Terri Sewell · Last progress March 12, 2026
Makes the USDA-authorized rural water and decentralized wastewater assistance program pay out grants through private nonprofit intermediaries that must subgrant to low-income households (under 60% of nonmetropolitan median) and make loans to higher‑income households (60% or above). It adds explicit authority to fund a performance warranty (at least 5 years) for decentralized wastewater systems and tries to change the per‑system dollar cap and the authorization of appropriations, but the draft contains malformed numeric and appropriation edits that leave those changes ambiguous.