Rural Decentralized Water System Grant Program

The Rural Decentralized Water System Grant Program provides funding through nonprofit organizations to assist low- to moderate-income individuals with the costs of establishing, repairing, or replacing privately owned water wells and decentralized wastewater systems. Eligible nonprofit recipients receive grants to create and manage revolving funds that offer loans and sub-grants to qualifying homeowners for system construction, refurbishment, rehabilitation, or replacement. Funding for water well systems covers expenses up to the point where water enters the home’s internal delivery system, while wastewater system funding extends to the point where waste exits the home and enters the septic tank or drain field. Administrative costs incurred by the nonprofit in managing the loan and sub-grant programs are also eligible for support using DWS grant dollars. This federal initiative, administered by the Rural Utilities Service under the Department of Agriculture, is open to nonprofit applicants responding to solicitation RDRUS-26-DWS2, with submissions due by September 30, 2026. The program targets rural communities where access to safe, reliable water and wastewater infrastructure is limited, and funding is specifically designed to empower local organizations to serve households that otherwise lack the financial means to address critical water system needs. All grant activity must align with the goal of improving public health and sanitation through decentralized, privately owned systems. Contact information for inquiries is provided through Lois E East of the Rural Utilities Service.