To authorize appropriations for each of fiscal years 1996 through 2000 for the provision of grants for construction of wastewater treatment works to serve United States colonias and for connecting residents to sewer collection systems and making any necessary plumbing improvements to enable residences to meet existing county or city code requirements.

Authorizes the Administrator of the Environmental Protection Agency (EPA) to make grants to any State along the U.S.-Mexican border or to any designated entity for the construction of treatment works to serve U.S. colonias or for connecting colonia residents to sewer collection systems and making plumbing improvements to enable colonias to meet existing county or city code requirements.

Defines "U.S. colonia" as any identifiable community that: (1) is in Arizona, California, New Mexico, or Texas; (2) is within 100 kilometers of the border between the United States and Mexico; (3) is determined to be a colonia on the basis of objective criteria, including lack of potable water or adequate sewage systems; (4) is in an unincorporated area and was in existence before January 1, 1990; and (5) includes a community within a standard metropolitan statistical area (MSA) that has a population exceeding one million but does not include the entire MSA.

Provides for approval of construction plans by States under appropriate EPA standards.

Authorizes appropriations.