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Title 7, AgricultureRelease 119-110

§1926e Rural Decentralized Water Systems

Title 7 › CHAPTER 50 — AGRICULTURAL CREDIT › SUBCHAPTER I — REAL ESTATE LOANS › § 1926e

Last updated Sep 22, 2026|Official source

Summary

Gives grants to private nonprofit groups so they can make loans and smaller grants to low-income rural households to build, repair, or maintain privately owned home water wells and home wastewater systems. An eligible individual is someone in a household whose combined income for the most recent 12 months is not more than 60 percent of the State’s or territory’s nonmetropolitan median household income, based on the most recent decennial census. Loans from these grant funds must carry a 1 percent interest rate and run no longer than 20 years. Each loan or subgrant may be no more than $15,000 per water well or wastewater system. Grant recipients may use some money for administrative costs as the Secretary allows. If groundwater is contaminated, funds can pay for water treatment past the point where water enters the home, with or without putting in a new well. The Secretary must favor applicants with strong experience in safe use of private wells, home wastewater systems, and groundwater. Congress authorized $20,000,000 for each fiscal year 2019 through 2023.

Full Legal Text

Title 7, §1926e

Agriculture, Source: USLM XML via OLRC

(a)Definition of eligible individual
In this section, the term “eligible individual” means an individual who is a member of a household the members of which have a combined income (for the most recent 12-month period for which the information is available) that is not more than 60 percent of the median nonmetropolitan household income for the State or territory in which the individual resides, according to the most recent decennial census of the United States.
(b)Grants
(1)In general
The Secretary may make grants to private nonprofit organizations for the purpose of providing loans and subgrants to eligible individuals for the construction, refurbishing, and servicing of individual household water well systems and individually owned household decentralized wastewater systems in rural areas that are or will be owned by the eligible individuals.
(2)Terms and amounts
(A)Terms of loans
A loan made with grant funds under this section— (i)
(ii)shall have a term not to exceed 20 years.
(B)Amounts
A loan or subgrant made with grant funds under this section shall not exceed $15,000 for each water well system or decentralized wastewater system described in paragraph (1).
(3)Administrative expenses
A recipient of a grant made under this section may use grant funds to pay administrative expenses associated with providing the assistance described in paragraph (1), as determined by the Secretary.
(4)Ground well water contamination
In the event of ground well water contamination, the Secretary shall allow a loan or subgrant to be made with grant funds under this section for the installation of water treatment where needed beyond the point of entry, with or without the installation of a new water well system.
(c)Priority in awarding grants
In awarding grants under this section, the Secretary shall give priority to an applicant that has substantial expertise and experience in promoting the safe and effective use of individually owned household water well systems, individually owned household decentralized wastewater systems, and ground water.
(d)Authorization of appropriations
There is authorized to be appropriated to carry out this section $20,000,000 for each of fiscal years 2019 through 2023.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Codification Pub. L. 110–234 and Pub. L. 110–246 made identical

Amendments

to this section. The

Amendments

by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.

Amendments

2018—Pub. L. 115–334, § 6409(1), substituted “Rural decentralized water systems” for “Grants to nonprofit organizations to finance the

Construction

, refurbishing, and servicing of individually-owned household water well systems in rural areas for individuals with low or moderate incomes” in section catchline. Subsec. (a). Pub. L. 115–334, § 6409(2), substituted “60” for “100”. Subsec. (b)(1). Pub. L. 115–334, § 6409(3)(A), inserted “and subgrants” after “loans” and “and individually owned household decentralized wastewater systems” after “well systems”. Subsec. (b)(2). Pub. L. 115–334, § 6409(3)(B), added par. (2) and struck out former par. (2). Prior to amendment, text read as follows: “A loan made with grant funds under this section— “(A) shall have an interest rate of 1 percent; “(B) shall have a term not to exceed 20 years; and “(C) shall not exceed $11,000 for each water well system described in paragraph (1).” Subsec. (b)(4). Pub. L. 115–334, § 6409(3)(C), added par. (4). Subsec. (c). Pub. L. 115–334, § 6409(4), substituted “effective use of individually owned household water well systems, individually owned household decentralized wastewater systems,” for “productive use of individually-owned household water well systems”. Subsec. (d). Pub. L. 115–334, § 6409(5), substituted “$20,000,000” for “$5,000,000” and “2019 through 2023” for “2014 through 2018”. 2014—Subsec. (d). Pub. L. 113–79 substituted “$5,000,000 for each of fiscal years 2014 through 2018” for “$10,000,000 for each of fiscal years 2008 through 2012”. 2008—Subsec. (b)(2)(C). Pub. L. 110–246, § 6010(1), substituted “$11,000” for “$8,000”. Subsec. (d). Pub. L. 110–246, § 6010(2), substituted “2008 through 2012” for “2003 through 2007”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2008 AmendmentAmendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an

Effective Date

note under section 8701 of this title.

Effective Date

Pub. L. 107–171, title VI, § 6012(b),
May 13, 2002, 116 Stat. 358, provided that: “The amendment made by subsection (a) [enacting this section] takes effect on
October 1, 2002.”

Reference

Citations & Metadata

Citation

7 U.S.C. § 1926e

Title 7, Agriculture

Last Updated

Sep 22, 2026

Release point: 119-110