To amend the Federal Water Pollution Control Act to authorize appropriations in each of fiscal years 1996 through 1998 for the construction of wastewater treatment facilities to serve U.S. Colonias and to provide water pollution control in the vicinity of the international boundary between the United States and Mexico.

Amends the Federal Water Pollution Control Act to authorize the Administrator of the Environmental Protection Agency to provide financial assistance to any State along the U.S.-Mexican border or to any entity designated by the Administrator for construction of treatment works to serve U.S. colonias in Arizona, California, New Mexico, and Texas. Bases the determination of whether a community is a colonia on objective criteria, including lack of potable water supply or adequate sewage systems.

Limits Federal funding to 50 percent of construction costs.

Authorizes appropriations.