Community Drinking Water Assistance Act - Amends the Safe Drinking Water Act to require the Administrator of the Environmental Protection Agency (EPA) to establish a program of grants for small public water systems (those serving populations of not more than 200,000 or located in specified communities) in disadvantaged communities, or in those that may become disadvantaged as a result of compliance with drinking water standards, for use in carrying out projects and activities to comply with such standards. Requires the Administrator to: (1) give priority in awarding grants based on, first, the financial need of the community and, second, the per capita cost of the community's compliance; and (2) ensure that not less than 20 percent of grant funds are used for activities in communities with populations of less than 50,000.
Sets forth the process for applications. Limits the Federal share of costs for grant-funded activities to 90 percent of the total.
Provides temporary relief from enforcement of drinking water standards for eligible entities during and after the grant application process.
Delays implementation or enforcement by the Administrator of an arsenic standard in any State until the earlier of January 1, 2006, or the date on which the Administrator certifies that the program has been implemented in that State and the State has made substantial progress in drinking water standards compliance.