Rural Decentralized Water Systems Grant Program

DWS
CFDA 10.862 Active Grant
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Program Funding

Annual program obligations reported to SAM.gov.

Latest annual funding (estimated)
$5M FY2026
$3.7M
FY24
$3.9M
FY25
$5M
FY26*
* estimated

Who has received this funding

Organizations awarded under CFDA 10.862 (USAspending.gov).

Funded Projects

Examples of what this program has supported.

FY2025 Seven qualified nonprofit organizations were awarded funding to establish revolving loan funds to assist households with immediate water well and septic system needs.

Program Objective

To make grants to private, nonprofit organizations to finance the construction, refurbishing and servicing of individually-owned household water well and/or wastewater systems in rural areas for individuals with low or moderate income.

Eligibility

Eligible Applicants

  • Federally Recognized Tribal Government
  • Nonprofit Organization

An applicant must be a private organization, organized as a non-profit corporation. The applicant must have the legal capacity and authority to perform the obligations of the grant. The applicant must have sufficient expertise and experience in lending activities and promoting the safe and productive use of individually-owned household water well systems and ground water.

How to Apply

Award Procedure

The Water and Environmental Programs staff in Washington, DC, will review and process the application. Following completion of application processing requirements and grant approval, funds are made available to the applicant on a reimbursement basis.

Decision Timeline

  • Renewal interval: From 30 to 60 days

Dependent upon funding availability and the completeness of the application. From 60 to 120 days following the submission deadline.

Program details & compliance

Description

This program provides grant funding to qualified nonprofits, including tribally owned nonprofits, to create a revolving loan fund or to award sub-grants to homeowners for supporting access to individually owned water and wastewater services in eligible rural areas.

Mission Categories

Primary: Rural Community Development

Use of Funds

Allowed Uses

Grant funds will be used by eligible entities to establish and maintain a revolving loan fund to provide loans to eligible individuals to construct, refurbish, and service individually-owned household water well and/or wastewater systems. Eligible individuals must own or will own the household water well or individual wastewater system. Loans will be made at a fixed rate of one-percent with a twenty year term. The maximum amount per loan is $11,000. Funds may be used to pay administrative expenses associated with providing the loans. Grant funds may not be used to pay (1) administrative expenses exceeding 10 percent of the loans made during the calendar year; (2) administrative expenses incurred before the Rural Utilities Service executes a grant agreement; (3) delinquent debt owed to the Federal Government; (4) costs of home plumbing system.

Required Documentation

Evidence of legal capacity, economic feasibility, ability to administer and service a revolving loan fund, commitment and sources of financial resources the organization controls.

Matching Requirements

Applicants must provide funds from sources other than the HWWS grant. The required match must be at least 10 percent of the HWWS grant.

Reporting & Compliance

Records Retention
3 years

Applicable 2 CFR 200 Subparts

  • Subpart B — General Provisions
  • Subpart C — Pre-Federal Award Requirements
  • Subpart D — Post-Federal Award Requirements
  • Subpart E — Cost Principles
  • Subpart F — Audit Requirements

Contacts

Assistant Administrator
202-690-1078
Rural Utilities Service, 1400 Independence Avenue, SW, Stop 1599, Washington, DC 20250
Data from SAM.gov Federal Assistance Listings. Source published: 2026-02-04. Spec v2.0. Last synced: 2026-05-29 05:36:04.