February 12, 2026
Mr. Davis of North Carolina (for himself and Mr. Johnson of South Dakota) introduced the following bill; which was referred to the Committee on Agriculture
To amend the Consolidated Farm and Rural Development Act to provide additional assistance to rural water, wastewater, and waste disposal systems, and for other purposes.
Section 1. Short title
This Act may be cited as the Assistance for Rural Water Systems Act of 2026
.
Sec. 2. Additional assistance for rural water systems
Subtitle A of the Consolidated Farm and Rural Development Act is amended by inserting after section 306A (7 U.S.C. 1926a) the following:
306B. Additional assistance for rural water systems
(a) Definition of eligible entity
In this section, the term eligible entity means a rural water, wastewater, or waste disposal facility with respect to which assistance may be provided under a water, wastewater, or waste disposal program under section 306(a), 306A, 306C, or 306D.
(b) Additional assistance
(1) Grants and loans
The Secretary may provide a grant, a zero percent interest loan, or a 1 percent interest loan to an eligible entity.
(2) Existing loans
The Secretary may—
(A)
forgive principal or interest or modify any term or condition of an outstanding loan made to an eligible entity; or
(B)
refinance part or all of any other loan (if the purpose of the loan is an eligible purpose under section 306(a)(1) or 306C) made to an eligible entity.
(3) Limitation
The Secretary may not provide assistance under paragraph (2) with respect to a loan made under paragraph (1).
(c) Eligible purposes
The Secretary may provide assistance to an eligible entity under subsection (b) as the Secretary determines is necessary—
(1)
to ensure that the eligible entity has the necessary resources to maintain public health, safety, or order; or
(2)
to address financial hardships of the eligible entity, if the eligible entity is located in a disadvantaged or economically distressed area, as determined under subsection (d).
(d) Determination
To determine whether an eligible entity may receive assistance pursuant to subsection (c)(2), the Secretary shall establish—
(1)
a residential indicator of affordable water services in each State or local or geographic area, calculated using the cost per household as a percentage of median household income; and
(2)
factors relating to disadvantaged or economically distressed areas.