A bill to amend section 306(a) of the Consolidated Farm and Rural Development Act to prescribe criteria for determining the amount of grants made under such section, to prescribe the priority of applicants for loans and grants under such section.

[AI summary unavailable — showing source text] Amends the Consolidated Farm and Rural Development Act to increase from 50 to 90 the percentage of the cost of a water or waste project which the Department of Agriculture may fund by a grant to a local association. Requires that such a grant be in an amount that will leave the average domestic user payment rate in the area served by the project at no more than: (1) one percent of the median family income of the area if such income fails in the lowest 25 percentile of the national median income; (2) one-and-one-half percent, if the median income falls in the 26 to 49 percentile; (3) two percent, if the median income falls in the 50 to 74 percentile; or (4) two-and- one-half percent, if the median income is above the 75 percentile of the national median income. Requires the Secretary of Agriculture to seek State and Federal assistance if the maximum amount of a grant will be insufficient to result in the applicable user cost limitation prescribed. Specifies conditions under which the Secretary may increase the amount of a grant. Revises the priorities for recipients of such grants to accord the highest priority to specified municipalities or public agencies which have a hazardous pu…