Rural Decentralized Water System Grant Program

The Rural Decentralized Water Systems (DWS) Grant Program, administered by the USDA Rural Utilities Service, seeks to provide grants to eligible nonprofit organizations to establish revolving loan funds for low to moderate income individuals in rural areas. The program will finance the construction, refurbishment, rehabilitation, or replacement of individually owned water well and wastewater systems, with loan amounts not exceeding $15,000 and terms up to 20 years at a 1% annual interest rate. Eligible applicants must be private, nonprofit organizations with demonstrated expertise in lending and water system infrastructure, and must have the legal capacity to perform grant obligations. Applications will be evaluated and scored competitively based on seven key criteria, including organizational expertise, loan servicing experience, proposed work plan, goal clarity, and administrative expense ratio, with a maximum possible score of 100 points. The application period is open from October 1, 2025, to December 1, 2025, with electronic submissions required through Grants.gov by 11:59 PM Eastern Time on the closing date.

The program will make approximately $6,000,000 available, with $1,000,000 specifically reserved for subgrants supporting individually owned household decentralized wastewater systems. Anticipated award date is December 31, 2025, with funding distributed on a reimbursement basis to successful applicants. Geographically, the program targets truly rural areas and rural communities, with considerations given to factors such as population, low income, unemployment, and existing health and sanitary problems. Applicants must be registered in the System for Award Management (SAM), possess a Unique Entity Identifier (UEI), and comply with federal requirements including civil rights laws and non-discrimination standards. The program is authorized under Section 306E of the Consolidated Farm and Rural Development Act.