Assistance for Rural Water Systems Act of 2026

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7530 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 7530

  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.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           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

_______________________________________________________________________

                                 A BILL

  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.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

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:

``SEC. 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.''.
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