A bill to amend the Consolidated Farm and Rural Development Act to modify provisions relating to rural decentralized water systems grants.
- Bill Number
- S. 4096
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Water Resources Development
- Status
- Introduced
- Latest Action
- 2026-03-12: Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
- Last Updated
- 2026-04-15T14:13:10Z
AI-Generated Summary
Purpose
This bill (S. 4096) aims to update and expand a federal grant program under the Consolidated Farm and Rural Development Act to improve access to safe water and wastewater systems for low- and moderate-income households in rural areas. It focuses on supporting the construction, repair, and maintenance of individual household wells and decentralized (non-centralized, on-site) wastewater systems through nonprofit organizations.
Key Provisions
- Grants to Nonprofits: The U.S. Department of Agriculture (USDA) Secretary can award grants to private nonprofit organizations. These organizations then provide subgrants (non-repayable funds) and loans to eligible rural individuals for building, refurbishing, or servicing household water wells and decentralized wastewater systems that the individuals will own.
- Eligibility for Assistance:
- Subgrants: Available to households with combined income below 60% of the median nonmetropolitan household income in the area (based on the latest U.S. Census data).
- Loans: Available to households with income between 60% and 100% of that median.
- Funding Limits and Uses:
- Increases the maximum amount per subgrant or loan from $15,000 to $20,000.
- For wastewater systems, subgrants can include extra funds to cover a performance warranty lasting at least 5 years (a guarantee that the system will function as promised).
- Program Duration: Extends the program's authorization through 2031 (previously set to end in 2023).
Significant Changes to Existing Law
- Expanded Program Scope: Rewrites the program's title and early sections to explicitly include both water well systems and decentralized wastewater systems, emphasizing individual household ownership in rural areas.
- Tiered Income-Based Assistance: Introduces a two-tier system differentiating subgrants for lower-income households from loans for moderate-income ones, replacing a more uniform approach.
- Increased Support: Raises the per-project funding cap and adds coverage for long-term warranties on wastewater systems, which were not previously specified.
- Extended Timeline: Prolongs funding availability by eight years to sustain the program.
Potential Impacts
- On Citizens: Improves access to reliable, safe water and sanitation for rural low- and moderate-income families, potentially reducing health risks from poor systems (e.g., contaminated water or sewage issues) and promoting environmental protection in underserved areas.
- On Government Agencies: Places additional administrative responsibilities on the USDA to oversee grants to nonprofits, including verifying income eligibility and project compliance, which may require modest increases in staffing or resources.
- On International Relations: No direct impact, as the bill is focused on domestic rural infrastructure.
- Broader Effects: Could enhance rural quality of life and economic stability by supporting homeownership and system maintenance, indirectly aiding small communities' resilience to climate or aging infrastructure challenges.
Main Stakeholders Affected
- Rural Residents: Primary beneficiaries, especially low- and moderate-income households in non-urban areas needing affordable water and wastewater solutions.
- Nonprofit Organizations: Key intermediaries that receive grants and distribute aid; they must manage loans, subgrants, and eligibility checks.
- U.S. Department of Agriculture (USDA): Oversees the program, including grant awards and compliance.
- Local Communities and Contractors: Rural areas and service providers (e.g., well drillers or system installers) may see increased demand for their services.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens existing federal support for rural infrastructure under the Consolidated Farm and Rural Development Act without creating new entitlements; income thresholds tie eligibility to Census data for transparency and fairness. No challenges to due process or equal protection are evident.
- Constitutional: Aligns with Congress's spending power under Article I to fund public welfare programs, focusing on rural equity without infringing on state authority over local water systems.
- Political: Bipartisan sponsorship (by Senators Booker, D-NJ, and Capito, R-WV) signals broad support for rural aid; extension to 2031 ensures long-term funding stability but may spark debates on federal spending priorities amid budget constraints. No major controversies anticipated, as it builds on an established program.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Sen. Capito, Shelley Moore [R-WV]
Recent Actions
- 2026-03-12: Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
- 2026-03-12: Introduced in Senate
Bill Versions
- To amend the Consolidated Farm and Rural Development Act to modify provisions relating to rural decentralized water systems grants. — issued 2026-03-12 — PDF (4 pages)