The U.S. Department of Agriculture (USDA) announced last week it is accepting fiscal year 2026 applications for grants to create revolving loan funds to build and improve water and wastewater disposal systems in rural areas.

USDA is making funds available through the Revolving Funds for Financing Water and Wastewater Projects program. This program helps qualified nonprofit organizations create loans to finance water and wastewater projects. Recipient organizations may use funds to cover pre-development costs for water and wastewater treatment projects. They may also use funds to finance short-term and small capital improvement projects that are not part of regular operation and maintenance costs. Within approved guidelines, program recipients set the loan terms for the individual communities they serve.

Applications must be submitted electronically using Grants.gov no later than midnight Eastern Time on July 3, 2026. Additional information is available on Grants.gov, or you contact your local USDA Rural Development office.