; and (2) in the case of a project designed to benefit a rural community outside the jurisdiction of the grantee, to maintain existing water supplies of the grantee that will be reduced as a result of the project. (c) Rural community In this section, the term rural community does not include— (1) any area in any city or town with a population in excess of 10,000 inhabitants according to the most recent decennial census of the United States; or (2) any area with a median household income in excess of the State nonmetropolitan median household income. (d) Full funding Grants under this section shall be made in an amount equal to 100 percent of the costs of the projects conducted under this section. (e) Application Subsection (h) of section 306A shall apply with respect to the administration of applications for grants under this section. . (b) Repeal Effective 5 years after the date of the enactment of this Act, section 306F of the Consolidated Farm and Rural Development Act, as added by the amendment made by subsection (a), is repealed. 3003. New well construction grants (a) In general Subtitle A of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1922–1936c ) is further amended by inserting after section 306F the following: 306G. New well construction grants (a) In general The Secretary shall provide grants in accordance with this section to public or private nonprofit entities for projects designed to supply drinking water to rural communities in which a significant number of dwellings with private drinking water wells have wells that are not producing water. (b) Use of funds Grants made under this section may be used— (1) for waterline extensions from existing systems, laying of new waterlines, repairs or maintenance to an existing system, digging of new wells or development of other sources of water designed to replace sources of drinking water with high levels of nitrates, equipment replacement, and hook-up fees