Rural Decentralized Water System Grant Program
🏛 Rural Utilities Service
✓ Free, no account · Source: Grants.gov · Last verified Sep 3, 2026
Can you apply?
This grant is for nonprofit organizations establishing revolving loan funds to serve low- and moderate-income individuals in rural areas. Eligible nonprofits provide loans and sub-grants to homeowners for decentralized water well and wastewater system construction, repair, or replacement. Funds support systems up to the point of entry (water) or point of exit (wastewater) at individual homes. Administrative expenses for managing the loan/sub-grant program are also eligible.
The program targets rural areas where homeowners lack access to public water or sewer systems. Individual beneficiaries must have low to moderate incomes and own or plan to own their water or wastewater systems. Systems must be individually owned and decentralized.
⚖️ Cost sharing / matching required — applicants must contribute their own funds.
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Program description
The DWS Grant Program has been established to help individuals with low to moderate incomes finance certain costs of household water wells and individually owned decentralized wastewater systems that they own or will own. Grants are made to eligible nonprofit organizations to establish and maintain a revolving fund to provide loans and sub-grants to eligible individuals for individually owned water well systems and/or individually owned wastewater systems. Loan and/or sub-grant funds may be used by the individual to construct, refurbish, rehabilitate, or replace decentralized water well or wastewater systems. For water well systems, funds may be used up to the point of entry to a home, which is the junction where water enters into a home water delivery system after being pumped from a well. For wastewater systems, in lieu of the point of entry, the point of exit is substituted. The point of exit is the junction where wastewater exits out of the home wastewater collection system into the septic tank and drain field. DWS grant funds may be used by the nonprofit recipient to pay administrative expenses associated with providing DWS loans and/or sub-grants.
Who can apply
Eligible applicants
Demographic focus
How to apply
Application links
Key dates & requirements
Required documents
- SF-424 (federal application form)
- Project Narrative (program plan and capacity)
- Budget and Budget Narrative
- Organizational documentation (bylaws, 501(c)(3) status)
- Financial statements and audit
- Evidence of rural service area need
Program contact
- 👤 Lois E East Grantor
- 📧 Water-RD@usda.gov
- 📞 660-492-4268
Funding track record
Recent awards under CFDA 10.862 from the last 3 years — real organizations that won funding through this same program.
Top 10 Largest Recent Awards
-
$2,000,000
-
$2,000,000
-
$1,750,000
-
$500,000
-
$500,000
-
$400,000
-
$400,000
-
$328,288
-
$323,263
-
$323,263
Top States by Funding
- NC 3 awards $5.8M
- GA 6 awards $1.4M
- VA 2 awards $0.9M
- AL 4 awards $0.7M
- CA 2 awards $0.7M
Source: USAspending.gov — federal spending transparency. Data covers last 3 years.
Funding history
Annual funding for this program — Federal obligations (CFDA 10.862). How funding has trended year over year.
| 2024 | $3,662,496 | |
| 2025 | $3,934,618 | |
| 2026 est. | $5,000,000 |
FAQ
Who can apply for this grant?
Nonprofit organizations can apply to establish revolving loan funds. These nonprofits then provide loans/sub-grants to eligible low- to moderate-income homeowners.
What activities are eligible?
Funds support construction, refurbishment, rehabilitation, or replacement of individual water wells and wastewater systems. Administrative costs for managing the loan program are also eligible.
Can funds cover the full cost of a system?
Grants cover costs up to the point of entry (water systems) or point of exit (wastewater systems) at the home. Full system coverage depends on program rules.
Is cost-sharing required?
Yes, cost-sharing is required. The nonprofit applicant organization must contribute matching funds to establish the revolving fund.
When is the application deadline?
The deadline is September 30, 2026. Check RUS website for application procedures and any recent updates.
💡 Tips for applicants
- Show strong organizational capacity to manage a revolving loan fund and serve rural homeowners responsibly over time.
- Demonstrate knowledge of water quality standards and decentralized system regulations in your target rural area.
- Include detailed financial projections showing how the fund will sustain itself through loan repayments and sub-grant administration.
- Partner with local government or water districts to strengthen your application and expand reach to eligible homeowners.
- Document unmet need in your rural service area with data on homes lacking safe water or sewer access.
⚠️ Common mistakes
Failing to show nonprofit capacity to manage loan portfolios and collections over multiple years. Underestimating the cost of program administration and outreach to low-income homeowners. Not addressing how the fund will become sustainable through loan repayments.
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