The Rural Utilities Service of the USDA is offering the Rural Decentralized Water System Grant Program, aimed at providing financial assistance to nonprofit organizations for establishing revolving funds to support low- to moderate-income individuals in financing household water well and decentralized wastewater systems. The program is critical for enhancing access to safe and reliable water and wastewater services in rural areas where public infrastructure is lacking. Approximately $6,000,000 in total funding is available, with $1,000,000 earmarked specifically for wastewater system sub-grants, and applications will be accepted from October 1, 2025, until the deadline of December 1, 2025, via Grants.gov. Interested applicants must ensure they have an active SAM registration and a Unique Entity Identifier (UEI), and can direct inquiries to the DWS Grant Manager at Water-RD@usda.gov.

FY26.pdf

The Rural Decentralized Water Systems (DWS) Program, managed by the USDA Rural Utilities Service, offers grants for Fiscal Year 2026. This program aims to establish revolving funds for private non-profit organizations to issue sub-grants and loans to low- to moderate-income individuals for household water well and decentralized wastewater systems. Approximately $6,000,000 is available, with $1,000,000 specifically for wastewater system subgrants. Applications open on October 1, 2025, and are due by December 1, 2025, via Grants.gov. Applicants must have an active SAM registration and a Unique Entity Identifier (UEI). Awards are competitive, based on criteria in 7 CFR 1776.9 and this Notice, with an anticipated award date of December 31, 2025. The program emphasizes the importance of safe and reliable water and wastewater access in rural areas where public services are not feasible.

The DWS Grant Program has been established to help individuals with low to moderate incomes finance certain costs of household water wells and individually owned decentralized wastewater systems that they own or will own. Grants are made to eligible nonprofit organizations to establish and maintain a revolving fund to provide loans and sub-grants to eligible individuals for individually owned water well systems and/or individually owned wastewater systems. Loan and/or sub-grant funds may be used by the individual to construct, refurbish, rehabilitate, or replace decentralized water well or wastewater systems. For water well systems, funds may be used up to the point of entry to a home, which is the junction where water enters into a home water delivery system after being pumped from a well. For wastewater systems, in lieu of the point of entry, the point of exit is substituted. The point of exit is the junction where wastewater exits out of the home wastewater collection system into the septic tank and drain field. DWS grant funds may be used by the nonprofit recipient to pay administrative expenses associated with providing DWS loans and/or sub-grants.

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