Opportunity Information: Apply for RDRUS 26 RFP
The Revolving Fund Program (Funding Opportunity Number: RDRUS 26 RFP) is a discretionary grant opportunity run by the USDA Rural Utilities Service. Its purpose is to provide grant funding to qualified private, nonprofit organizations so they can capitalize (set up and seed) revolving loan funds. Those revolving funds are then used to finance certain types of water and wastewater needs for eligible borrowers, with an emphasis on helping communities move projects forward or address smaller, time-sensitive capital needs that can be difficult to cover through normal operating budgets.
A core focus of the program is covering pre-development costs tied to proposed water and wastewater projects. In practice, this can include early-stage expenses that are necessary to plan and position a project for construction financing, such as feasibility and engineering work, environmental documentation, preliminary design, and other up-front steps that often stall projects when communities lack cash on hand. In addition to pre-development, the revolving fund can also support short-term costs for existing systems, particularly when the expenses relate to replacement equipment, small-scale service extensions, or other small capital projects. A key boundary is that these supported activities are not meant to be routine operations and maintenance; the intent is to help with discrete capital needs and near-term project costs rather than day-to-day system running expenses.
The direct applicants to USDA under this opportunity are not the local systems themselves in most cases, but qualified private, nonprofit entities that will manage the revolving fund and then provide financing onward to eligible entities. The official eligibility details and definitions of eligible recipients and eligible uses are maintained by USDA Rural Development and are referenced at: https://www.rd.usda.gov/programs-services/revolving-funds-for-financing-water-and-wastewater-projects. Because eligibility and allowable costs can be specific, prospective applicants typically need to confirm they meet USDA requirements for nonprofit status and fund management capacity, and that their proposed revolving fund policies align with program rules.
This funding opportunity is associated with CFDA (Assistance Listing) 10.864 and is categorized under Agriculture, Community Development, Environment, and Health, reflecting the public health and infrastructure role of safe drinking water and effective wastewater management in rural areas. The agency indicates an expected four awards. The notice lists an award ceiling of 0, which commonly signals that a single maximum dollar cap is not specified in the posting itself and that applicants should rely on the full program guidance and notice materials for typical award sizes, limits, and budgeting expectations.
Key dates included in the listing are a creation date of 2026-06-01 and an original application closing date of 2026-07-03. Organizations considering applying should plan around that deadline and allow time to assemble documentation, governance and lending policies for the revolving fund, and a clear plan for how the fund will be deployed, replenished, and managed over time in compliance with USDA requirements.Apply for RDRUS 26 RFP
- The Rural Utilities Service in the agriculture, community development, environment, health sector is offering a public funding opportunity titled "Revolving Fund Program" and is now available to receive applicants.
- Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 10.864.
- This funding opportunity was created on 2026-06-01.
- Applicants must submit their applications by 2026-07-03. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
- The number of recipients for this funding is limited to 4 candidate(s).
- Eligible applicants include: Others.
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Revolving Fund Program (RDRUS 26 RFP) - Frequently Asked Questions
What is the Revolving Fund Program (Funding Opportunity Number: RDRUS 26 RFP)?
The Revolving Fund Program is a discretionary grant opportunity administered by the USDA Rural Utilities Service. It provides grant funding to qualified private, nonprofit organizations so they can capitalize (set up and seed) revolving loan funds that will finance eligible water and wastewater needs for eligible borrowers.
What is the main purpose of this grant?
The main purpose is to fund nonprofit-managed revolving loan funds that help communities move water and wastewater projects forward, especially where projects stall due to lack of cash for early steps or where smaller, time-sensitive capital needs are hard to cover through normal operating budgets.
Who is the federal agency running this opportunity?
The opportunity is run by the USDA Rural Utilities Service, within USDA Rural Development.
Who applies directly to USDA for this funding?
Direct applicants are typically qualified private, nonprofit organizations that will manage the revolving fund. In most cases, local water and wastewater systems are not the direct applicants; instead, they may become borrowers or recipients of financing from the revolving fund established by the nonprofit grantee.
What does it mean to "capitalize" a revolving loan fund?
In this context, "capitalize" means providing initial grant dollars to establish and seed a revolving fund. The nonprofit uses that fund to make loans or other eligible financing to borrowers, and as funds are repaid, the money can be re-lent to support additional projects over time.
What types of costs does the revolving fund emphasize supporting?
A core focus is covering pre-development costs for proposed water and wastewater projects. These are early-stage costs that help a project become ready for construction financing and implementation.
What are examples of pre-development costs mentioned in the listing?
Examples include feasibility work, engineering work, environmental documentation, preliminary design, and other up-front steps needed to plan and position a project for construction financing.
Can the revolving fund support costs for existing water or wastewater systems?
Yes. In addition to pre-development activities, the revolving fund can support short-term costs for existing systems when the expenses relate to replacement equipment, small-scale service extensions, or other small capital projects.
Is this funding intended to cover routine operations and maintenance (O&M)?
No. The supported activities are not meant to be routine operations and maintenance. The intent is to help with discrete capital needs and near-term project costs rather than day-to-day system running expenses.
What kinds of community needs is this program designed to address?
The program is designed to address water and wastewater infrastructure needs that are difficult to fund through normal operating budgets, particularly smaller or time-sensitive capital needs, and early project steps that can delay progress when communities lack cash on hand.
Where are the official eligibility details and definitions maintained?
The official eligibility details and definitions of eligible recipients and eligible uses are maintained by USDA Rural Development and referenced at: https://www.rd.usda.gov/programs-services/revolving-funds-for-financing-water-and-wastewater-projects.
What should prospective applicants confirm before applying?
Prospective applicants typically need to confirm they meet USDA requirements for nonprofit status and fund management capacity, and that their proposed revolving fund policies align with program rules.
What is the Assistance Listing (CFDA) number for this opportunity?
This funding opportunity is associated with Assistance Listing (CFDA) 10.864.
How is this opportunity categorized?
The listing categorizes the opportunity under Agriculture, Community Development, Environment, and Health, reflecting the public health and infrastructure role of safe drinking water and effective wastewater management in rural areas.
How many awards does the agency expect to make?
The agency indicates an expectation of four awards.
Is there a maximum award amount listed?
The notice lists an award ceiling of 0. This commonly signals that a single maximum dollar cap is not specified in the posting itself, and applicants should rely on the full program guidance and notice materials for typical award sizes, limits, and budgeting expectations.
What are the key dates listed for this opportunity?
The listing includes a creation date of 2026-06-01 and an original application closing date of 2026-07-03.
When is the application deadline?
The original application closing date listed is 2026-07-03. Organizations should plan around that deadline and allow time to assemble required materials.
What should an applicant plan to prepare as part of an application?
Based on the listing, applicants should allow time to assemble documentation, develop governance and lending policies for the revolving fund, and present a clear plan for how the fund will be deployed, replenished, and managed over time in compliance with USDA requirements.
Why does the program emphasize pre-development and near-term capital needs?
The listing notes that early-stage planning and positioning work often stalls projects when communities do not have cash on hand. The revolving fund approach is intended to help cover these discrete, time-sensitive costs so projects can move toward construction financing and implementation.
What types of projects are generally in scope based on the description?
Based on the description, in-scope needs include financing water and wastewater project pre-development activities (such as feasibility, engineering, environmental documentation, and preliminary design) as well as certain short-term capital needs for existing systems (such as replacement equipment and small-scale service extensions), as long as they are not routine O&M.
Where can applicants find the program rules that govern allowable costs and recipient eligibility?
The listing points applicants to USDA Rural Development for official rules and definitions, referenced at: https://www.rd.usda.gov/programs-services/revolving-funds-for-financing-water-and-wastewater-projects.
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