Rural Decentralized Water System Grant Program

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.