Assistance for Rural Water Systems Act of 2025
- Bill Number
- S. 783
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Water Resources Development
- Status
- Introduced
- Latest Action
- 2025-02-27: Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
- Last Updated
- 2026-02-25T15:44:14Z
AI-Generated Summary
Purpose
The Assistance for Rural Water Systems Act of 2025 aims to expand federal support for rural water, wastewater, and waste disposal systems by amending the Consolidated Farm and Rural Development Act. It seeks to help these systems maintain operations, ensure public health and safety, and address financial challenges in economically distressed areas.
Key Provisions
- Eligible Entities: Defines "eligible entity" as a 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:
- 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 (limited to loans for eligible purposes under sections 306(a)(1) or 306C).
- Limitation: Assistance under loan forgiveness/refinancing cannot apply to new loans made under this section.
- Eligible Purposes: Assistance can be used to:
- Ensure the entity has resources to maintain public health, safety, or order.
- Address 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/geographic areas, based on household water costs as a percentage of median household income.
- Factors to identify disadvantaged or economically distressed areas.
Significant Changes to Existing Law
This bill inserts a new section (306B) into Subtitle A of the Consolidated Farm and Rural Development Act, immediately after section 306A. It builds on existing water and wastewater programs by introducing flexible new tools like low-interest loans, grants, and loan modifications/refinancing, which were not previously available in this targeted manner for rural systems facing financial distress or public health needs.
Potential Impacts
- Government Agencies: The U.S. Department of Agriculture (USDA), through the Secretary, will administer the new assistance programs, potentially increasing workload and funding demands on rural development offices.
- Citizens: Rural residents, especially in low-income or distressed areas, may benefit from more affordable and reliable water/wastewater services, reducing health risks from inadequate infrastructure and easing household financial burdens.
- International Relations: No direct impacts, as the bill focuses on domestic rural infrastructure.
Main Stakeholders Affected
- Rural water, wastewater, and waste disposal facilities and their operators.
- Residents and households in rural, disadvantaged, or economically distressed communities, who rely on these systems for essential services.
- The U.S. Department of Agriculture and its rural development programs, responsible for implementing and funding the assistance.
- State and local governments in rural areas, which may collaborate on applications or benefit from improved infrastructure.
Notable Legal, Constitutional, or Political Implications
- Legal: Expands USDA authority without altering core eligibility under existing programs, potentially streamlining aid but requiring new administrative guidelines for affordability indicators and distress factors to ensure fair distribution.
- Constitutional: Aligns with Congress's spending power under Article I to support public welfare and infrastructure; no apparent conflicts with equal protection or federalism principles.
- Political: Could enhance support for rural constituencies by addressing infrastructure gaps, a common bipartisan issue, but may raise debates over federal spending priorities and the definition of "distressed areas" in budget-constrained environments.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2025-02-27: Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
- 2025-02-27: Introduced in Senate
Bill Versions
- Assistance for Rural Water Systems Act of 2025 — issued 2025-02-27 — PDF (3 pages)