NRWA Initiatives Included in New Farm Bill

           Provisions initiated by the National Rural Water Association have been included in the Farm Bill recently signed by President Bush.  This new bill will increase spending by nearly 80 percent over the cost of continuing water and wastewater development programs.

These provisions will benefit rural development across the nation by ensuring the drinking water and wastewater needs of rural America will be funded.

Section 6031 of the Farm Bill provides $360 million (budget authority) to fund the backlog of water and waste disposal loan and grant applications that are pending when the Bill is enacted.  Drinking water applications will receive priority.

"This is a great bill for rural water," said NRWA CEO Rob Johnson.

The bill allows substantially completed applications to RUS to be funded immediately.  RUS will decide how much will be allocated for grants and how much for loans, but the total cost to the government cannot exceed $360 million.  State RD offices will be given latitude in determining which applications are funded.  This provision provides an extra half-year of funding.  It also means that systems will quickly be moved up in the funding process for the next fiscal year.

"The farm bill has made a positive impact for rural water," said Johnson.  "With this funding, new programs can be developed and existing programs replenished."  "Economic development for rural water will expand to a greater depth."