USDA Rural Development’s Rural Utilities Service is accepting applications for the Rural Decentralized Water Systems Program, Fiscal Year 2026 Second Opportunity, Funding Opportunity Number RDRUS-26-DWS2. Complete applications must be submitted through Grants.gov no later than 11:59 p.m. Eastern Time on September 30, 2026.
Purpose and public health fit
The program helps low to moderate income rural households obtain safe and reliable household water well and individually owned decentralized wastewater systems. USDA makes grants to qualified private nonprofit organizations that establish revolving loan programs and, where permitted, issue subgrants to eligible individuals.
Funding
USDA anticipates approximately $11 million for this second FY 2026 opportunity. Of that amount, approximately $1 million is available for applications directly supporting subgrants for individually owned household decentralized wastewater systems. The NOFO establishes no minimum or maximum federal award amount. Individual household loans may not exceed $15,000, may have terms of up to 20 years, and carry a one percent annual interest rate.
Eligibility and applicant contribution
Eligible applicants must satisfy 7 CFR 1776.5 and the current NOFO. USDA’s program page describes qualified nonprofit applicants as organizations with relevant household water well or decentralized wastewater expertise, legal lending authority, sufficient lending experience, and the financial, technical, and managerial capacity to comply with applicable requirements. Eligible service areas include qualifying rural areas and towns of 50,000 or fewer, rural Tribal lands, and colonias.
For revolving fund applications, applicant contribution is a material eligibility and scoring control. The amended FY 2026 application guide states that a contribution of 0 through 9 percent is ineligible, while contributions of 10 percent or more receive progressively higher scoring. The NOFO states that cost share requirements apply to revolving funds and not to subgrant awards. In kind contributions do not count toward the applicant contribution scoring factor.
Current amendment and application controls
The FY 2026 Second Opportunity Application Guide was amended on August 13, 2026 to update go.usa.gov links and link titles. Applicants must use the current NOFO, amended guide, required SF 424 family forms, organizational documents, board and principal information, IRS tax exempt evidence, the most recent independent audit, required financial statements and projections, work plan, budget justification, active SAM.gov registration, UEI, and other materials required by the NOFO and 7 CFR Part 1776. Non Tribal applicants proposing to serve households on Tribal lands must include the required Tribal Resolution of Support.
Atlas assessment
Atlas Opportunity Score: 78/100. This is a public health enabling rural water and sanitation opportunity. It does not establish a clinical technology or telehealth procurement pathway.
N9+ Fit Score: 0/100. The current scope does not support positioning the Nonagon N9+ device and platform.
Dr. Miltie direct applicant or vendor fit: 0/100 under the published federal structure. The program requires a qualified private nonprofit applicant with specialized lending and decentralized water or wastewater capability. Applicant specific evaluation and outreach should proceed only after independent eligibility verification against the current NOFO and amended application guide.
Official sources: Grants.gov opportunity RDRUS-26-DWS2 and USDA Rural Development Rural Decentralized Water Systems Grant Program.