§2. Additional assistance for rural water systems
This section establishes a new program to provide additional assistance to eligible entities, defined as rural water, wastewater, or waste disposal facilities that may receive assistance under USDA Rural Development water programs in sections 306(a) (water and waste disposal loans and grants), 306A (emergency community water assistance grants), 306C (solid waste management grants), or 306D (water systems for rural, insular, and Native villages). Assistance may include (1) grants, zero-percent interest loans, or 1-percent interest loans; or (2) forgiveness of principal or interest, modification of terms, or refinancing of outstanding loans made for eligible purposes under section 306(a)(1) or 306C, subject to a prohibition on such assistance for loans made under the new program. Assistance must be necessary, as determined by the Secretary, either (1) to ensure the entity has resources to maintain public health, safety, or order; or (2) to address financial hardships for entities in disadvantaged or economically distressed areas, based on a statewide or local affordability indicator (i.e., cost per household as a percentage of median household income) and related factors.