Rural Decentralized Water System Grant Program
This program provides funding to non-profit organizations to help low to moderate-income individuals in rural areas access affordable water well and wastewater systems where public services are unavailable.
The Rural Decentralized Water Systems (DWS) Program for Fiscal Year 2025, administered by the Rural Utilities Service (RUS) under the USDA Rural Development mission area, aims to provide grant funds to private non-profit organizations. These grants will establish revolving loan funds and issue sub-grants to finance household water well systems and individually owned decentralized wastewater systems. The program emphasizes energy efficiency, resilience, and water reuse technologies to address critical water and wastewater needs in rural areas. The program seeks to assist individuals with low to moderate incomes who require household water well and septic systems where public water or wastewater services are unavailable or unfeasible. Funding can be used to construct, refurbish, and maintain these systems up to the point of entry into residences. In certain cases, where groundwater contamination is documented, funding may extend beyond the point of entry. Loans provided under this program are capped at $15,000, with repayment terms of up to 20 years at a one percent annual interest rate. Up to 50 percent of the funds awarded may be used as sub-grants to reduce costs for eligible individuals. Eligible applicants for the program are private non-profit organizations as defined under 7 CFR 1776.5, and cost-sharing requirements must be met as specified in 7 CFR 1776.9(b)(3). Projects should align with USDA's key priorities, including supporting economic recovery in rural communities, addressing climate change impacts, and advancing racial justice and equity. Priority points may be awarded to projects located in economically distressed or socially vulnerable communities, federally recognized tribal lands, or areas classified as disadvantaged or energy communities. Applicants must submit complete applications electronically through Grants.gov by March 3, 2025, at 11:59 p.m. Eastern Time. Registration in the System for Award Management (SAM) and obtaining a Unique Entity Identifier (UEI) are required for application submission and grant eligibility. Applications must adhere to the requirements outlined in the DWS Application Guide and include all necessary forms and supporting documentation. The program will allocate approximately $5,000,000 in funding for FY 2025, with no minimum or maximum award amounts specified. Applications will be reviewed competitively based on criteria outlined in 7 CFR 1776.9, including considerations for addressing key USDA priorities. Final funding decisions will be made based on scores, technical feasibility, and funding availability. For further inquiries, applicants can contact Lola Maratita, Community Programs Specialist, Water and Environmental Programs, RUS, USDA, via email at Water-RD@usda.gov or by phone at (615) 714-8883.
Award Range
Not specified - Not specified
Total Program Funding
$5,000,000
Number of Awards
10
Matching Requirement
Yes - Percentage of applicant contributions. Points allowed under this paragraph will be based on written evidence of the availability of funds from sources other than the proceeds of a DWS grant to pay part of the cost of a loan recipient's project. In-kind contributions will not be considered. Funds from other sources as a percentage of the DWS grant and points corresponding to such percentages are as follows: (i) 0 to 9 percent—ineligible; (ii) 10 to 25 percent—5 points; (iii) 26 to 30 percent—10 points; (iv) 31 to 50 percent—15 points; and (v) 51 percent or more—20 points
Eligible Applicants
Additional Requirements
The applicant must be a private organization. (b) The applicant must be organized as a non-profit organization. (c) The applicant must have legal capacity and lawful authority to perform the obligations of a grant recipient under this part. Example 1: If the organization is incorporated as a non-profit corporation, it must have corporate authority under state law and its corporate charter to engage in the practice of making loans to individuals. Example 2: if the organization is an unincorporated association, state law may prevent the organization from entering into binding contracts, such as a grant agreement. (d) The applicant must have sufficient expertise and experience in lending and in promoting the safe and productive use of individually-owned decentralized water systems and ground water to assure the likelihood that the objectives of this part can be achieved.
Geographic Eligibility
All
Application Opens
January 1, 2025
Application Closes
March 3, 2025
Grantor
U.S. Department of Agriculture (Rural Utilities Service)
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