A bill to amend the Consolidated Farm and Rural Development Act to modify provisions relating to rural decentralized water systems grants.

To amend the Consolidated Farm and Rural Development Act to modify provisions relating to rural decentralized water systems grants. 1. Rural decentralized water systems grant program modifications Section 306E of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1926e (1) by striking the section designation and heading and all that follows through the end of subsection (b)(1) and inserting the following: 306E. Grants to nonprofit organizations making loans and subgrants for construction, refurbishing, and servicing of individually owned household water well systems and household decentralized wastewater systems in rural areas (a) Grants to nonprofit organizations The Secretary may provide grants to private nonprofit organizations for the purpose of providing subgrants and loans in accordance with subsection (b) to individuals for the construction, refurbishing, and servicing of individual household water well systems and individually owned household decentralized wastewater systems in rural areas that are or will be owned by the individuals. (b) Loans and subgrants to individuals (1) In general A nonprofit organization shall use grant amounts received under subsection (a) to provide— (A) subgrants for use in accordance with this section to individuals residing in the service area of the nonprofit organization who are members of a household with a combined income (for the most recent 12-month period for which the information is available) that is less than 60 percent of the median nonmetropolitan household income for the area, according to the most recent decennial census; and (B) loans for use in accordance with this section to individuals residing in the service area of the nonprofit organization who are members of a household with a combined income (for the most recent 12-month period for which the information is available) that is not less than 60 percent and not more than 100 percent of the median nonmetropolitan household income for the area, according to the most recent decennial census. ; (2) in subsection (b)— (A) in paragraph (2)(B), by striking $15,000 $20,000 (B) by adding at the end the following: (5) Funding to cover cost of performance warranties A subgrant provided to an individual under this subsection for an individually owned household decentralized wastewater system may include sufficient additional funding to cover the cost of a performance warranty with a duration of at least 5 years. ; and (3) in subsection (d), by striking 2023 2028

Summary: This bill revises and reauthorizes through FY2028 a program that provides financial assistance for rural water systems under the Consolidated Farm and Rural Development Act. Under the existing program, the Department of Agriculture may provide grants to nonprofit organizations that in turn must provide subgrants and loans to individuals for household water well systems or individually owned household decentralized wastewater systems in rural areas. This bill modifies the eligibility requirements for subgrants. To be eligible for a subgrant, an individual must be a member of a household with an annual combined income that is no more than 60% of the median nonmetropolitan household income for the area served by the nonprofit (currently, the state or territory in which the individual resides). The bill also allows a subgrant for a household decentralized wastewater system to include sufficient additional funding to cover the cost of a performance warranty with a duration of at least five years. In addition, the bill allows loans to be awarded to an individual who is a member of a household with an annual combined income that is 60% to 100% of the median nonmetropolitan household income for the area.