Sponsors (2)
The bill expands grant and loan support plus warranties to help rural households install and maintain private wells and decentralized wastewater systems, improving access and reducing maintenance risk, but it raises federal spending, may leave near-cutoff households facing higher costs, and creates administrative and legal implementation risks.
Low- and moderate-income rural households gain access to locally delivered financial help for private wells and decentralized wastewater: direct subgrants for households under 60% of area median and low-cost loans for households at/above that threshold expand financing options and reduce upfront barriers to safe water and sanitation.
Recipients of decentralized wastewater systems receive at least a 5-year performance warranty funded by the program, lowering future maintenance risk and potential repair costs and improving health and safety outcomes.
The program leverages local private nonprofit organizations to administer assistance, using community organizations to reach rural service areas and potentially improving local delivery and uptake.
Households just above the 60% area-median cutoff may only qualify for loans (not grants), leaving moderately low-income rural families with higher financing costs and continued affordability risk.
The program requires additional federal outlays to fund grants, loans, and warranties, increasing taxpayer-funded spending without an explicit offset in the text.
Reliance on private nonprofits' capacity and eligibility rules tied to decennial census data and 12-month income calculations could delay or complicate eligibility determinations and slow delivery of aid to rural households.
Based on analysis of 1 section of legislative text.
Authorizes the Secretary of Agriculture to make grants to private nonprofit organizations so those organizations can give loans and subgrants to individuals for building, repairing, and servicing individually owned household water wells and individually owned household decentralized wastewater systems in rural areas. Subgrants are targeted to lower-income households and loans to higher-income households based on area median nonmetropolitan household income. Sets income eligibility so subgrants go to households with income under 60% of the area median and loans to households at or above 60% of the area median, using the most recent 12-month income data and the most recent decennial census for area median figures. Also permits subgrant funds to cover the cost of a performance warranty of at least five years for decentralized wastewater systems and makes a numeric correction to existing statutory text; the bill retains USDA grant authority but does not specify appropriation amounts.
Introduced March 12, 2026 by Terri Sewell · Last progress March 12, 2026