Opportunity Information: Apply for RDRUS 22 01 DWS

The Rural Decentralized Water System (DWS) Grant Program is a discretionary grant opportunity from the U.S. Department of Agriculture (USDA), Rural Utilities Service, designed to improve basic household water and wastewater infrastructure in rural areas by helping low- to moderate-income individuals afford essential systems they own or will own. Instead of providing direct assistance straight to every household from the federal government, the program funds organizations to set up and operate a revolving fund. That revolving fund is then used to offer loans and sub-grants to eligible households so they can pay for needed work on privately owned water wells and decentralized wastewater systems, such as septic systems.

A key point of the program is what the money can be used for at the household level. Through the loans and/or sub-grants issued from the revolving fund, an individual household may construct a new system or refurbish, rehabilitate, or replace an existing one. For a well system, the eligible scope runs up to the "point of entry," meaning the junction where water enters the home water delivery system after being pumped from the well. For wastewater systems, the program uses an equivalent boundary called the "point of exit," meaning the junction where wastewater leaves the home collection plumbing and flows into the septic tank and drain field. In practical terms, the program focuses on the well and septic components serving the home rather than broader community-wide distribution or treatment facilities.

The grant funds awarded under this opportunity must be used to establish and maintain the revolving fund itself, and they may also cover administrative expenses tied to making and servicing the DWS loans and sub-grants. That administrative flexibility matters because it supports the real work of running the program: underwriting, documenting eligibility, processing assistance, tracking repayments (for loans), and managing compliance and reporting responsibilities connected to the revolving fund model.

From the source listing, the opportunity is titled "Rural Decentralized Water System Grant Program" with Funding Opportunity Number RDRUS 22 01 DWS and CFDA (Assistance Listing) number 10.862. The activity categories include agriculture, community development, environment, and health, reflecting the program's role in public health protection and rural quality of life. The agency is USDA Rural Utilities Service. The posting shows an expected 10 awards, an original closing date of July 31, 2022, and an award ceiling listed as 0, which typically indicates the maximum award amount was not specified in that field of the summary. Eligibility is labeled as "Others," with details intended to be clarified in the opportunity's additional eligibility information section.

  • The Department of Agriculture, Rural Utilities Service in the agriculture, community development, environment, health sector is offering a public funding opportunity titled "Rural Decentralized Water System Grant Program" and is now available to receive applicants.
  • Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 10.862.
  • This funding opportunity was created on Jun 21, 2022.
  • Applicants must submit their applications by Jul 31, 2022. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
  • The number of recipients for this funding is limited to 10 candidate(s).
  • Eligible applicants include: Others (see text field entitled Additional Information on Eligibility for clarification).
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Frequently Asked Questions (FAQs) - Rural Decentralized Water System (DWS) Grant Program

What is the Rural Decentralized Water System (DWS) Grant Program?

The Rural Decentralized Water System (DWS) Grant Program is a discretionary grant opportunity from the U.S. Department of Agriculture (USDA), Rural Utilities Service. Its purpose is to improve basic household water and wastewater infrastructure in rural areas by helping low- to moderate-income individuals afford essential privately owned systems they own or will own.

Who runs the program and provides the funding?

The program is administered by the USDA Rural Utilities Service. Federal grant funding is awarded to organizations, which then operate a revolving fund to provide assistance to eligible households.

Does the federal government provide funds directly to individual households?

No. The program does not provide direct federal assistance straight to every household. Instead, the grant funds organizations to set up and operate a revolving fund that then issues loans and sub-grants to eligible households.

What is the revolving fund model in this program?

Under the revolving fund model, an organization uses the USDA grant to establish and maintain a fund. That fund is then used to provide loans and/or sub-grants to eligible households for qualifying water well and decentralized wastewater system work. Loans, if repaid, help replenish the fund so it can continue assisting additional households.

What kinds of household systems are supported?

The program supports privately owned water wells and decentralized wastewater systems, such as septic systems, that serve individual homes in rural areas.

What can an eligible household use the loans or sub-grants for?

Through the loans and/or sub-grants issued from the revolving fund, an individual household may construct a new system or refurbish, rehabilitate, or replace an existing privately owned well system or decentralized wastewater system.

What does "point of entry" mean for well systems?

For a well system, eligible work runs up to the "point of entry," meaning the junction where water enters the home water delivery system after being pumped from the well. This defines the boundary of what the program focuses on at the household level.

What does "point of exit" mean for wastewater (septic) systems?

For wastewater systems, the program uses a "point of exit" boundary. This is the junction where wastewater leaves the home collection plumbing and flows into the septic tank and drain field. The program focuses on the septic components serving the home rather than broader community facilities.

Does the program fund community-wide distribution or treatment facilities?

Based on the scope described, the program focuses on the well and septic components serving an individual home (up to the point of entry/exit boundaries), rather than broader community-wide water distribution networks or centralized treatment facilities.

What can the USDA grant funds be used for by the organization receiving the award?

The grant funds must be used to establish and maintain the revolving fund. They may also cover administrative expenses tied to making and servicing the DWS loans and sub-grants, such as underwriting, documenting eligibility, processing assistance, tracking repayments (for loans), and managing compliance and reporting responsibilities connected to the revolving fund.

Why are administrative expenses allowed under this program?

Administrative flexibility supports the practical work required to operate a revolving fund program, including evaluating applicants, documenting eligibility, processing loans and sub-grants, servicing and tracking repayments (when applicable), and handling compliance and reporting requirements.

What is the official title of this funding opportunity?

The opportunity is titled "Rural Decentralized Water System Grant Program."

What is the Funding Opportunity Number for this program?

The Funding Opportunity Number listed is RDRUS 22 01 DWS.

What is the CFDA or Assistance Listing number for this program?

The CFDA (Assistance Listing) number is 10.862.

What activity categories are associated with this opportunity?

The listed activity categories include agriculture, community development, environment, and health, reflecting the program's role in rural quality of life and public health protection.

How many awards were expected to be made?

The posting indicates an expected 10 awards.

What was the original closing date shown for the opportunity?

The original closing date shown is July 31, 2022.

What does it mean that the award ceiling is listed as 0?

The summary shows an award ceiling of 0, which typically indicates that the maximum award amount was not specified in that particular summary field.

Who is eligible to apply for the grant?

Eligibility is labeled as "Others" in the source listing. Additional eligibility details are intended to be clarified in the opportunity's additional eligibility information section.

Who benefits from the revolving fund at the household level?

The revolving fund is intended to provide loans and sub-grants to eligible low- to moderate-income individuals in rural areas so they can afford needed work on essential privately owned water wells and decentralized wastewater systems they own or will own.

Does the program support both loans and grants to households?

Yes. The revolving fund established by the awarded organization can offer loans and sub-grants to eligible households, according to the program description.

What types of projects at a home are generally covered?

Projects described as eligible include constructing a new well or septic system, or refurbishing, rehabilitating, or replacing an existing privately owned system, within the program's point of entry/point of exit boundaries.

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