S. 783 — Assistance for Rural Water Systems Act of 2025

This section establishes additional assistance for rural water, wastewater, and waste disposal facilities eligible under Rural Development water and waste programs (sections 306(a), 306A, 306C, or 306D of the Consolidated Farm and Rural Development Act). (As background, these programs provide loans, grants, and guarantees to construct, enlarge, extend, or improve water supply and waste disposal systems serving rural areas and towns with populations of 10,000 or fewer.) The Secretary may provide grants, zero-percent interest loans, or one-percent interest loans; forgive principal or interest or modify terms of existing loans to such facilities; or refinance part or all of certain other loans (excluding those made under this new authority). Assistance must address threats to public health, safety, or order, or financial hardships for facilities in disadvantaged or economically distressed areas, as determined using a statewide or local residential affordability indicator (i.e., water costs per household as a percentage of median household income) and related factors.