Rural Decentralized Water System Grant Program

The Rural Decentralized Water System Grant Program, solicitation RDRUS-26-DWS2, is a federal funding opportunity administered by the USDA Rural Utilities Service. The program provides grants to eligible private nonprofit organizations to establish revolving funds that offer loans and sub-grants to low-to-moderate income individuals. These funds are used to construct, refurbish, rehabilitate, or replace individually owned household water well and decentralized wastewater systems. For the fiscal year 2026 second opportunity, approximately 11 million dollars is available, including 1 million dollars specifically for wastewater system sub-grants. Eligible individuals may receive loans up to 15,000 dollars at a 1 percent interest rate for terms up to 20 years. Applications must be submitted electronically via Grants.gov by 11:59 p.m. ET on September 30, 2026. Applicants are required to have an active SAM.gov registration, a valid Unique Entity Identifier, and a Taxpayer Identification Number. A complete application must include a project proposal, work plan, budget justification, and several standard federal forms, including SF-424 and SF-424A. Awards are determined through a competitive scoring process based on expertise in water/wastewater systems, loan servicing experience, the quality of the work plan, defined goals, administrative efficiency, and the level of non-federal applicant contributions. The performance period for these awards is scheduled from January 1, 2027, to December 31, 2027. Grant funds are distributed as reimbursements for approved activities, with funding requests permitted on a monthly basis. The program is governed by the Consolidated Farm and Rural Development Act and 7 CFR Part 1776. All recipients must comply with various federal civil rights laws and non-discrimination mandates, including Title VI of the Civil Rights Act of 1964 and Section 504 of the Rehabilitation Act of 1973.