Rural Decentralized Water System Grant Program
This program funds nonprofits to create revolving loan and grant programs that help low- and moderate-income rural residents finance household water well and wastewater system projects.
Funder: Rural Utilities Service
Due Dates: July 28, 2026 (Application window opens) | September 30, 2026 (Full application deadline)
Funding Amounts: Approx. $11,000,000 total; no minimum or maximum award; typical awards expected to be around $1M; up to $15,000 per household loan/subgrant.
Summary: Supports nonprofit organizations in establishing revolving funds to finance household water wells and decentralized wastewater systems for low- and moderate-income individuals in rural areas.
Key Information: Eligible applicants are private nonprofits; matching funds not required but prioritized; only electronic submissions via Grants.gov accepted.
Description
This program provides grant funding to qualified nonprofit organizations—including tribally owned nonprofits—to establish revolving loan funds and award subgrants that help low- and moderate-income rural residents finance the costs of constructing, refurbishing, or replacing individually owned water wells and decentralized wastewater systems. The aim is to improve access to safe, reliable drinking water and sanitary wastewater disposal in rural communities where centralized systems are not feasible.
Nonprofits receiving grants use the funds to provide loans (up to $15,000 per household, 1% interest, max 20 years) or subgrants to eligible individuals for eligible water/wastewater projects. Administrative expenses related to providing these loans/subgrants are also eligible. The program is authorized under Section 306E of the Consolidated Farm and Rural Development Act and administered by the USDA Rural Utilities Service.
