Water and Waste Disposal Systems for Rural Communities

Provide loan and grant funds for water and waste projects serving the most financially needy communities. Financial assistance should result in reasonable user costs for rural residents, rural businesses, and other rural users.

For Water & Waste Disposal loans and grants: Municipalities, counties, other political subdivisions of a State such as districts and authorities, associations, cooperatives, corporations operated on a not-for-profit basis, Indian tribes on Federal and State reservations and other Federally recognized Indian tribes. The applicant must: (1) be unable to finance the proposed project from its own resources or through commercial credit at reasonable rates and terms; and (2) have the legal authority necessary for constructing, operating, and maintaining the proposed facility or service, and for obtaining, giving security for, and repaying the proposed loan. Assistance is authorized for eligible applicants in rural areas of the United States, Puerto Rico, the Virgin Islands, Guam, Commonwealth of Northern Mariana Islands, and American Samoa. For Water & Waste Disposal loan guarantees: Federally regulated lending institution with the legal authority, financial strength and sufficient experience to operate a successful lending program. Other non-regulated lending institutions may also be approved by the Agency.

In selecting applications for funding, the agency cooperates with appropriate State agencies. RUS assistance for water and waste disposal projects will be directed toward truly rural areas and rural communities. Considerations for available funds emphasize such criteria as, but not limited to: Population; low income unemployment; and health and sanitary problems. RUS financed facilities will be consistent with any development plans of the State, multi-jurisdictional area, county, or municipality in which the proposed project is located.

Fiscal year 2026: Funds may be used to finance the acquisition, construction or improvement of: Drinking water sourcing, treatment, storage and distribution Sewer collection, transmission, treatment and disposal Solid waste collection, disposal and closure Storm water collection, transmission and disposal