Assistance for Rural Water Systems Act of 2026
- Bill Number
- H.R. 7530
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Water Resources Development
- Status
- Introduced
- Latest Action
- 2026-03-20: Referred to the Subcommittee on Commodity Markets, Digital Assets, and Rural Development.
- Last Updated
- 2026-07-02T08:07:08Z
AI-Generated Summary
Purpose
The Assistance for Rural Water Systems Act of 2026 aims to expand federal support for rural water, wastewater, and waste disposal systems by amending the Consolidated Farm and Rural Development Act. It focuses on providing flexible financial help to ensure these systems can maintain operations, protect public health, and address economic challenges in underserved areas.
Key Provisions
- Eligible Entities: Defines "eligible entity" as any rural water, wastewater, or waste disposal facility that qualifies for assistance under existing programs in sections 306(a), 306A, 306C, or 306D of the Consolidated Farm and Rural Development Act.
- Types of Assistance:
- New grants, zero-interest loans, or 1-percent interest loans to eligible entities.
- For existing loans: Forgiveness of principal or interest, modification of terms/conditions, or refinancing of loans (if for eligible purposes like water/wastewater improvements).
- Limitation: Assistance cannot be provided for loans issued under the new grant/loan provisions.
- Eligible Purposes:
- To secure resources needed for public health, safety, or community order.
- To ease financial hardships for entities in disadvantaged or economically distressed areas.
- Determination Process: The Secretary of Agriculture must create:
- A "residential indicator of affordable water services" for states or local areas, based on household water costs as a percentage of median household income.
- Criteria to identify disadvantaged or economically distressed areas for targeted aid.
Significant Changes to Existing Law
This bill inserts a new section (306B) into Subtitle A of the Consolidated Farm and Rural Development Act, building on current programs by introducing more flexible and low-cost financing options. It expands beyond standard loans to include grants, loan forgiveness, and refinancing, specifically tailored for rural infrastructure challenges, without altering core eligibility rules in sections 306(a), 306A, 306C, or 306D.
Potential Impacts
- Government Agencies: The U.S. Department of Agriculture (USDA), led by the Secretary, will administer new programs, potentially increasing administrative workload and funding needs through congressional appropriations.
- Citizens: Rural residents, especially in low-income or distressed areas, may benefit from improved, more affordable water and waste services, reducing health risks from failing systems and lowering household costs.
- International Relations: No direct impacts, as the bill focuses on domestic rural infrastructure.
Main Stakeholders Affected
- Rural Water, Wastewater, and Waste Facilities: Primary beneficiaries, gaining access to grants, low-interest loans, and debt relief to upgrade or maintain operations.
- Rural Communities and Residents: Especially those in economically distressed areas, who could see better public health protections and more affordable services.
- U.S. Department of Agriculture (USDA): Responsible for implementing, evaluating affordability indicators, and distributing aid.
- State and Local Governments: May collaborate on identifying distressed areas and applying for funds on behalf of local systems.
Notable Legal, Constitutional, or Political Implications
- Legal: Enhances existing federal authority under the Consolidated Farm and Rural Development Act without creating new regulatory burdens; requires USDA to develop objective criteria (e.g., affordability indicators) to ensure fair distribution, potentially subject to administrative review or challenges if criteria are deemed inconsistent.
- Constitutional: Aligns with Congress's spending power to support general welfare, particularly rural infrastructure, with no apparent conflicts to federalism or equal protection principles.
- Political: Supports bipartisan rural development priorities by addressing infrastructure gaps in underserved areas, potentially influencing future farm bills or appropriations debates on rural funding equity.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Davis, Donald G. [D-NC-1]
Cosponsors (1)
Rep. Johnson, Dusty [R-SD-At Large]
Recent Actions
- 2026-03-20: Referred to the Subcommittee on Commodity Markets, Digital Assets, and Rural Development.
- 2026-02-12: Referred to the House Committee on Agriculture.
- 2026-02-12: Introduced in House
- 2026-02-12: Introduced in House
Bill Versions
- Assistance for Rural Water Systems Act of 2026 — issued 2026-02-12 — PDF (3 pages)