To amend the Consolidated Farm and Rural Development Act to modify provisions relating to rural decentralized water systems grants.
- Sponsor
- Rep. Sewell, Terri A. [D-AL-7]
- Committees
- Agriculture Committee (primary)
- Last action
- Apr 3, 2026
Bottom line
The bill aims to improve access to and the reliability of individual water and wastewater systems in rural areas by increasing financial assistance and extending program authorization.
What it actually does
This bill amends the Consolidated Farm and Rural Development Act to expand and clarify a grant program for individually owned household water well and decentralized wastewater systems in rural areas. It increases the maximum assistance amount from $15,000 to $20,000, allows subgrants to cover performance warranties for wastewater systems, and extends the program's authorization of appropriations through fiscal year 2031.
Proponents argue
Supporters argue that this bill addresses critical infrastructure needs in rural communities where centralized water and wastewater services are often unavailable or cost-prohibitive. They contend that increasing the maximum grant amount and providing for performance warranties will make these essential systems more accessible, affordable, and sustainable for rural residents, particularly those with lower incomes.
Opponents contend
Critics might express concerns about the increased federal spending implied by extending the authorization of appropriations and raising the maximum grant amount, especially without a clear understanding of the program's overall effectiveness and long-term fiscal impact. Some may argue for alternative approaches or question the efficiency of decentralized systems compared to broader infrastructure investments.
The bill is very short and clear, making it easy for any informed reader to understand its provisions quickly.
Section 1(1), amending Section 306E(a) and (b)(1) of the Consolidated Farm and Rural Development Act
Program Renaming and Clarification of Grant/Loan Eligibility
This provision renames the grant program to explicitly include 'individually owned household water well systems' and 'household decentralized wastewater systems.' It also clarifies that grants are provided to nonprofit organizations, which then offer subgrants to individuals with household incomes below 60% of the median nonmetropolitan income and loans to individuals with incomes at or above 60% of that median. This formalizes the distinction between direct financial aid and repayable assistance based on income.
Supporters argue
Supporters argue that explicitly naming water well systems and decentralized wastewater systems clarifies the program's intent and ensures that critical, often overlooked, rural infrastructure needs are met. The income-based differentiation for subgrants and loans ensures that assistance is appropriately targeted to those who need it most while still providing options for other rural residents.
Critics contend
No specific opposition is typically raised against clarifying program scope and income-based targeting, as these are generally seen as good governance practices. Potential concerns might arise if the clarification is perceived to unduly narrow or broaden the program's original intent, but this bill appears to be an expansion and clarification.
Tradeoffs
The primary tension is balancing the need to serve all rural residents with limited federal resources, which is addressed by the tiered approach of subgrants for lower incomes and loans for higher incomes.
Section 1(2)(A), amending Section 306E(b)(2)(B) of the Consolidated Farm and Rural Development Act
Increase in Maximum Assistance Amount
This provision increases the maximum amount of a subgrant or loan an individual can receive under the program from $15,000 to $20,000. This adjustment aims to account for rising costs of construction, refurbishing, and servicing water well and wastewater systems, making the financial assistance more impactful for recipients.
Section 1(2)(B), adding Section 306E(b)(5) to the Consolidated Farm and Rural Development Act
Funding for Performance Warranties for Wastewater Systems
This new provision allows subgrants for individually owned household decentralized wastewater systems to include additional funding specifically to cover the cost of a performance warranty with a duration of at least 5 years. This aims to ensure the long-term functionality and reliability of these systems, protecting homeowners from unexpected repair costs shortly after installation.
Section 1(3), amending Section 306E(d) of the Consolidated Farm and Rural Development Act
Extension of Authorization of Appropriations
This provision extends the authorization for appropriations for the rural decentralized water systems grant program from fiscal year 2023 to fiscal year 2031. This ensures that the program has legislative authority to receive federal funding for an additional eight years, allowing for continued operation and planning.