# Federally Supported Projects and Programs for Wastewater, Drinking Water, and Water Supply Infrastructure > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/crs%3AR46471 ## Record - **Collection:** Congressional research report - **Document type:** Reports - **Published:** August 12, 2026 - **Citation:** R46471 ## Text Federally Supported Projects and Programs for Wastewater, Drinking Water, and Water Supply Infrastructure Updated August 12, 2026 Congressional Research Service https://crsreports.congress.gov R46471 SUMMARY Federally Supported Projects and Programs for Wastewater, Drinking Water, and Water Supply Infrastructure For decades, Congress has authorized, modified, and funded federal programs to help communities address water supply and water infrastructure needs. Departments and agencies that administer these assistance programs include the Bureau of Reclamation (Reclamation), the U.S. Army Corps of Engineers (USACE), the U.S. Department of Agriculture (USDA), the Environmental Protection Agency (EPA), the Department of Housing and Urban Development (HUD), and the Department of Commerce’s Economic Development Administration (EDA). R46471 August 12, 2026 Jonathan L. Ramseur, Coordinator Specialist in Environmental Policy In general, Congress has utilized two approaches to authorization and funding: individual project authorization and program authorization. Reclamation and USACE administer a number of individual projects pursuant to direct authorizations from Congress. Other agencies administer programs with standing authorizations that establish funding eligibility criteria. As a practical matter, individual project authorizations generally must be funded each year and provide no guarantee of predictable assistance over time. Although the authorized programs are not guaranteed to receive annual appropriations, in recent years Congress has generally provided some level of annual appropriations to the water infrastructure programs identified in this report. The federal agencies responsible for administering water-related projects and programs undertake these activities pursuant to wide-ranging missions with varying scopes. For example, EPA’s authorities relate to protecting public health and the environment, whereas HUD and EDA focus on community and economic development. Some agencies’ activities are national in scope (e.g., USDA and EPA), while others are regionally focused (e.g., Reclamation’s programs and projects, which are limited to the 17 “reclamation states” in the West). Some focus primarily on urban areas (HUD), whereas others concentrate mainly on rural areas (USDA). Federal funding for these programs and projects varies greatly and continues to compete with many other programs that are supported by discretionary spending. Some of these programs have received supplemental appropriations, such as the funds provided in the 2021 Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58), the American Relief Act (P.L. 118-158), and the FY2025 reconciliation act (P.L. 119-21). FY2026 appropriations highlights include • $746 million for capitalization grants to states under EPA’s Clean Water State Revolving Fund (SRF) program, and $411 million for EPA’s Drinking Water SRF program; $893 million for wastewater infrastructure, and $715 million for drinking water infrastructure through community project funding/congressionally directed spending (IIJA provided an additional $2.6 billion for each SRF program); • • $3 billion for EPA’s Drinking Water SRF program for lead service line replacement and related activities; • $370 million for loan subsidies and grants for USDA’s rural water and waste disposal programs to, in part, support $1 billion in loan authority for direct loans and guaranteed loans; • $3.3 billion for HUD’s Community Development Block Grant (CDBG) program (water and wastewater projects are among many eligible uses); • $1.5 billion in supplemental funding (P.L. 118-158) for EDA disaster economic recovery efforts, which may include, but are not limited to, water supply or wastewater projects; • • $360 million for USACE environmental infrastructure projects; and $72 million for subsidy costs for the EPA-administered Water Infrastructure Finance and Innovation Act (WIFIA) program, allowing the agency to provide credit assistance of about $6.5 billion; $63 million for Reclamation water storage projects, $212 million for Reclamation rural water projects, and $176 million for Reclamation’s Title XVI reclamation/recycling projects. For FY2027, the Trump Administration’s discretionary budget request proposed to reduce or eliminate funding for a number of water infrastructure programs identified in this report. Congressional Research Service Federally Supported Water Projects and Programs Contents Introduction ..................................................................................................................................... 1 Department of the Interior ............................................................................................................. 12 Bureau of Reclamation ............................................................................................................ 12 “Traditional” Multipurpose Reclamation Projects ............................................................ 13 WIIN Act Water Storage Projects ..................................................................................... 15 Rural Water Supply Projects ............................................................................................. 17 Title XVI Projects ............................................................................................................. 18 Desalination Projects ........................................................................................................ 21 Department of Defense .................................................................................................................. 22 U.S. Army Corps of Engineers (USACE) Civil Works ........................................................... 22 USACE Civil Works Projects ........................................................................................... 22 USACE Assistance for Nonfederal Projects ..................................................................... 24 Storage of M&I Water at Multipurpose USACE Reservoirs ............................................ 25 Environmental Infrastructure Assistance .......................................................................... 27 Department of Agriculture ............................................................................................................. 29 Rural Utilities Service (Water and Waste Disposal Programs) ............................................... 29 Natural Resources Conservation Service ................................................................................ 31 Watershed and Flood Prevention Operations .................................................................... 32 Small Watershed Rehabilitation ........................................................................................ 34 Environmental Protection Agency ................................................................................................. 35 Clean Water State Revolving Fund Loan Program ................................................................. 35 Drinking Water State Revolving Fund Loan Program ............................................................ 38 Water Infrastructure Finance and Innovation Act Program ..................................................... 42 Other EPA Water Infrastructure Funding Programs ................................................................ 44 Sewer Overflow and Stormwater Grant Program ............................................................. 44 Technical Assistance for Rural, Small, and Tribal Wastewater Systems .......................... 45 Technical Assistance for Small, Rural, and Tribal Drinking Water Systems .................... 46 Small and Disadvantaged Communities Drinking Water Grant Program ......................... 47 Lead Reduction Projects Grant Program .......................................................................... 48 Small Water System Resilience and Sustainability Grant Program .................................. 49 Midsize and Large Drinking Water System Infrastructure Resilience and Sustainability Program................................................................................................... 50 Department of Housing and Urban Development ......................................................................... 51 Community Development Block Grants ................................................................................. 51 CDBG Section 108 Loan Guarantees...................................................................................... 53 Department of Commerce ............................................................................................................. 55 Economic Development Administration Public Works Program ............................................ 55 Economic Development Administration Economic Adjustment Assistance Program ............ 58 Tables Table 1. Wastewater, Drinking Water, and Water Supply Infrastructure: Federal Funding for Projects and Programs ............................................................................................................ 3 Congressional Research Service Federally Supported Water Projects and Programs Contacts Author Information........................................................................................................................ 62 Congressional Research Service Federally Supported Water Projects and Programs Introduction This report provides background and funding information on water infrastructure projects, including those involving wastewater and drinking water, and water supply projects traditionally funded by the federal government. The report also discusses federal funding programs that provide assistance to communities to support these types of projects and related, eligible activities. For decades, Congress has authorized, modified, and funded federal programs and projects to help communities address water supply and water infrastructure needs. The approaches and statutory frameworks supporting water infrastructure vary. For example, the Department of the Interior (DOI) Bureau of Reclamation (Reclamation) and the Department of Defense’s U.S. Army Corps of Engineers (USACE) administer a number of individual projects that require direct, individual project authorizations from Congress prior to being eligible to receive appropriations.1 Other agencies administer programs with standing authorizations that establish eligibility criteria rather than identify specific projects. Although these authorized programs are not guaranteed to receive annual appropriations, Congress has generally provided some level of annual appropriations in recent years to the water infrastructure programs identified in this report. Agencies administering such programs covered in this report include • • • • the U.S. Department of Agriculture (USDA), the Environmental Protection Agency (EPA), the Department of Housing and Urban Development (HUD), and the Department of Commerce’s Economic Development Administration (EDA). In addition, the projects and programs differ due to the varied scopes and missions of the implementing agencies. For example, the statutory requirements for EPA-administered programs generally focus on protecting public health and the environment. The EDA and HUD programs focus on economic and community development. Further, the scope of the specific programs and authorized projects discussed in this report—while all address either water supply or wastewater and drinking water infrastructure to some degree—differ in other respects. Some are national in scope (e.g., USDA and EPA), while others are regionally focused (e.g., Reclamation’s programs and projects). Some focus primarily on urban areas (HUD), whereas others concentrate mainly on rural areas (USDA). For each of the projects and programs discussed, this report describes their purposes, financing mechanisms, eligibility requirements, recent funding, and statutory/regulatory authority. The report does not address special projects and programs aimed specifically at assisting Indian tribes, Alaska Native villages, colonias,2 or other regional programs, such as those associated exclusively with the Appalachian region or U.S. territories. This report focuses on programs that support drinking water and wastewater infrastructure projects and also municipal and industrial (M&I) water supply projects and activities. This report generally does not address water projects and programs for irrigation, flood control, 1 For Reclamation, this also includes some projects that must be submitted to, and approved by, Congress prior to funding (but no direct authorization is required). Department of Defense is currently also using the secondary title Department of War under Executive Order 14347 on “Restoring the United States Department of War,” dated September 5, 2025, which President Trump signed on September 6, 2025. 2 Colonias are typically rural, unincorporated communities or housing developments near the U.S.-Mexico border that lack some or all basic infrastructure, including plumbing and public water and sewer. Congressional Research Service 1 Federally Supported Water Projects and Programs hydroelectricity, and recreation. However, in some cases (noted below), a federal program or agency (e.g., Reclamation and USDA) may primarily support one or more of these other objectives while providing some support for M&I activities, even if only incidentally. Other federal authorities (e.g., ones administered by Reclamation and USACE) may be available to assist with the provision of emergency water and wastewater needs, such as improving access to water supplies during a drought. Such authorities are generally not discussed in this report.3 Table 1 summarizes financial and other key elements of the projects and program activities discussed in this report. As indicated in the table, the level and scope of federal funding for these programs and projects varies greatly. Congressional funding for the water programs continues to compete with many other federal programs supported by discretionary spending. Stakeholders and others continue to call for increased funding for these programs. As Table 1 indicates, the Administration’s FY2027 discretionary budget request proposed to reduce or eliminate funding for a number of water infrastructure programs.4 3 These programs are not discussed further in this report except for the Emergency Community Water Assistance Grants administered by the U.S. Department of Agriculture (USDA). For more information, see CRS Report R46911, Drought in the United States: Science, Policy, and Selected Federal Authorities, coordinated by Charles V. Stern and Eva Lipiec. 4 For more information on the difference between discretionary and mandatory spending, see CRS In Focus IF13124, Distinguishing Between Discretionary and Mandatory Spending, by Megan S. Lynch. Congressional Research Service 2 Table 1. Wastewater, Drinking Water, and Water Supply Infrastructure: Federal Funding for Projects and Programs Federal/ Nonfederal Cost Share Agency and Projects or Program Project/ Program Purposes Type of Financial Assistance DOI Bureau of Reclamationa Multipurpose projects, which may include some municipal and industrial (M&I) activities De facto 40- to 50year loan 0%/100%, with interest for M&I uses Not applicable P.L. 119-74: $1.627 billion DOI Bureau of Reclamation Water Infrastructure Improvements for the Nation (WIIN) Act Water Storage Projects Multipurpose projects, which may include some M&I activities Direct funding for the federal share of costs, with the reimbursable share of these costs subject to repayment (i.e., de facto loans) 50%/50% for federal projects; 25%/75% for nonfederal projects Not applicable P.L. 119-74: $62.5 million — DOI Bureau of Reclamation (Title XVI, P.L. 102-575)b Wastewater reclamation and reuse,c which may include some M&I activities De facto grant Up to 25%/75%; dollar limits may apply Not readily available P.L. 119-74: $13.0 million IIJA: $160.6 million — DOI Bureau of Reclamation Rural Water Supplyd Indian and non-Indian rural water supply De facto grant, plus loan Non-Indian projects: range from 75%/25% to 80%/20%; Indian projects: 100%/0% Not applicable P.L. 119-74: $119.5 million IIJA: $92.0 million DOI Bureau of Reclamation Desalination Project Construction Brackish and seawater desalination, which may include some M&I activities Grant Up to 25%/75%; dollar limits may apply Not readily available P.L. 119-74: $6.7 million IIJA: $79.9 million CRS-3 Average Amount of Assistance FY2026 Enacted Fundinga FY2027 President Funding Request $1.275 billion $31.3 million — Federal/ Nonfederal Cost Share Agency and Projects or Program Project/ Program Purposes Type of Financial Assistance USACE Multipurpose Reservoirs with Storage for M&I Water Reservoirs may provide M&I water storage through permanent or temporary storage agreements Upfront federal financing of reservoirs; M&I storage is repaid through fees collected from nonfederal entities 0%/100%, with interest Not applicable $6.0 million — USACE Environmental Infrastructure Assistance Assistance is typically for public drinking water and wastewater infrastructure and source water protection and development Technical/planning and design services or grants; design and construction services or grants 75%/25% generally; some authorities are 65%/35% Varies (see report text for details) P.L. 119-74: $359.6 million — USDA Rural Utilities Service (RUS), Circuit Rider Program Technical assistance to help those operating rural water systems to overcome day-to-day management, financial, and technical issues Cooperative agreement awarded to the National Rural Water Association to provide technical assistance to entities that own and operate rural water systems 100%/0% Not applicable P.L. 119-37, Division B: $23.9 million USDA RUS, Emergency Community Water Assistance Grant Program Assistance to rural communities to prepare for, or recover from, disasters that may affect the availability of clean drinking water Grants to eligible entities to help rural communities facing a major decline in water quality or quantity 100%/0% (cost share is encouraged) Up to $150,000 for water transmission line grants Up $1.0 million for water source grants P.L. 119-37, Division B: $7.0 million CRS-4 Average Amount of Assistance FY2026 Enacted Fundinga FY2027 President Funding Request $24.0 million — Agency and Projects or Program Project/ Program Purposes Type of Financial Assistance USDA RUS, Rural Decentralized Water Systems Grant Program Assistance for the construction, service, or refurbishment of individually owned wells and decentralized wastewater systems (typically septic tanks) Grants to eligible entities that provide loans and subgrants to homeowners for projects USDA RUS, Revolving Funds for Financing Water and Wastewater Projects Program Assistance to eligible entities create revolving loan funds (i.e., loan funds that are replenished by loan repayment). Loan funds support rural water and waste disposal projects. USDA RUS, Water and Waste Disposal Loan and Grant Program USDA RUS, Water and Waste Disposal Loan Guarantee Program CRS-5 Federal/ Nonfederal Cost Share FY2027 President Funding Request Average Amount of Assistance FY2026 Enacted Fundinga Grants to eligible entities: 90%/10% Loans and subgrants for household projects: 100%/0% Loans up to $15,000 per household P.L. 119-37, Division B: $5.0 million — Grants to eligible entities to set up revolving funds to provide loans for rural community water and wastewater projects Grants for revolving loan funds: 80%/20% Loans for rural community projects: 100%/0% Loans up to $200,000 per borrower P.L. 119-37, Division B: $1.0 million — Assistance to acquire, construct, or improve rural drinking water, storm water, and waste disposal systems Loans and grants to eligible entities to support projects in rural communities Loans: 100%/0% Grants: Federal share is variable depending on income of the rural community Not readily available P.L. 119-37, Division B: $47.6 loan subsidy (to support $1.0 billion loan authority); $140.0 million (competitive grants); $110.5 million (CPF/CDS) $58.5 loan subsidy (to support $816.9 million loan authority); $100.0 million (competitive grants); $0 for CPF/CDS Assistance to acquire, construct, or improve rural drinking water, storm water, and waste disposal systems Loan guarantees to eligible entities to support projects in rural communities 100%/0% Not readily available P.L. 119-37, Division B: No loan subsidy needed to support $50.0 million loan authority No loan subsidy needed to support $50.0 million loan authority Federal/ Nonfederal Cost Share Average Amount of Assistance FY2026 Enacted Fundinga FY2027 President Funding Request Agency and Projects or Program Project/ Program Purposes Type of Financial Assistance USDA RUS, Water and Waste Disposal Technical Assistance and Training Program Technical assistance to rural communities to identify and evaluate solutions to water and waste disposal issues, and apply for loans and grants Grants to eligible entities that provide technical assistance 100%/0% Not readily available P.L. 119-37, Division B: $35.0 million — USDA Watershed and Flood Prevention Operations Program Multiple activities, including municipal or industrial water supply, but must generally include flood control measures Project grants and technical advisory services 100%/0% Varies according to purpose of improvement activity Not applicable P.L. 119-21 and P.L. 119-37: $17.6 million for grants and $32.4 million for CPF/CDS (discretionary) $150.0 million (mandatory) $0 (discretionary) $150.0 million (mandatory) USDA Small Watershed Rehabilitation Program Dam rehabilitation Project grants and technical advisory services 100%/0% Varies according to purpose of improvement activity Not applicable P.L. 119-37: $3.0 million — EPA, Clean Water State Revolving Fund (SRF) Loan Program Municipal wastewater treatment, stormwater infrastructure, and other eligible projects and activities Grants to states to capitalize loan funds SRF loans made by states to local project sponsors States required to provide a minimum level of additional subsidization (e.g., principal forgiveness) and authorized to provide further subsidization 80%/20% for grants to states to capitalize SRFs 0%/100%e (project loans are repaid 100% to states) Average capitalization grant to states and territories: $64.6 million (FY2026)f Average assistance from SRF to local recipients: $5.2 million (FY2023)g P.L. 119-74: $746.1 million for capitalization grants $892.8 million (CPF/CDS) $155.0 million for capitalization grants CRS-6 IIJA: $2.603 billion for capitalization grants $225.0 million for emerging contaminants Federal/ Nonfederal Cost Share Agency and Projects or Program Project/ Program Purposes Type of Financial Assistance EPA, Drinking Water SRF Loan Program Public water supply projects needed to meet federal drinking water standards and to address serious health risks Grants to states to capitalize loan funds SRF loans made by states to local project sponsors States must provide a minimum level of additional subsidization (e.g., principal forgiveness) and may provide further subsidization 80%/20% for grants to states to capitalize SRFs 0%/100%e (project loans are repaid 100% to states) Average Amount of Assistance FY2026 Enacted Fundinga Average capitalization grant to states and territories: $113.9 million (through FY2026)h Average assistance from SRF to local recipients: $4.1 million (FY2025) P.L. 119-74: $410.7 million for capitalization grants $715.4 million (CPF/CDS) FY2027 President Funding Request $150.0 million for capitalization grants IIJA: $2.603 billion for capitalization grants $3.0 billion for lead service line (LSL) replacement $800.0 million for emerging contaminants EPA, Water Infrastructure Finance and Innovation Act (WIFIA) Program Wastewater and drinking water projects with costs of $20.0 million or larger (or $5.0 million for rural areas) Loans or loan guarantees In general, WIFIA funding cannot exceed 49% of project costs $155.0 million (average of 154 closed loans)i P.L. 119-74: $72.3 million (including $7.6 million for administrative expenses) $7.8 million for administrative expenses EPA, Sewer Overflow and Stormwater Grant Program Sewer overflow or stormwater infrastructure projects, with priority for financially distressed communities Grants to states, which make grants to municipalities 55%/45% Average allotment to states and territories in FY2026 was $725,000j P.L. 119-74: $41.0 million $41.0 million CRS-7 Federal/ Nonfederal Cost Share Agency and Projects or Program Project/ Program Purposes Type of Financial Assistance EPA, Technical Assistance for Rural, Small, and Tribal Wastewater Systems Assist rural, small, and tribal publicly owned treatment works and decentralized wastewater treatment systems to comply with the Clean Water Act and apply for financing from the Clean Water SRF Grants to qualified nonprofits to provide technical assistance 100%/0% EPA awarded $49.0 million to 6 organizations in 2025k P.L. 119-74: $25.5 million EPA, Technical Assistance for Rural, Small, and Tribal Drinking Water Systems Assist public water systems and particularly small systems (serving 25-10,000 customers) with Safe Drinking Water Act (SDWA) compliance Grants to qualified nonprofits to provide technical assistance 100%/0% For FY2025, EPA awarded an average grant amount of $8.6 million to 3 entitiesl P.L. 119-74: $26.0 million — EPA, Small and Disadvantaged Communities Drinking Water Grant Program Drinking water projects needed to meet federal drinking water standards, household water quality testing, assistance that benefits a community on a perhousehold basis Grants to states on behalf of an underserved community, public water systems, tribal water systems 55%/45% for grants (EPA may waive match under certain circumstances) Appropriations distributed noncompetitively to states P.L. 119-74: $28.5 million $20 million EPA, Lead Reduction Projects Grant Program Drinking water projects and activities to reduce lead in drinking water; replacement of LSLs; corrosion control activities Grants to community water systems, tribal water systems, states, schools, and municipalities 80%/20% for grants (EPA may waive match under certain circumstances) For FY2025, EPA awarded an average of $6.5 million to grant recipientsm P.L. 119-74: $22.0 million CRS-8 Average Amount of Assistance FY2026 Enacted Fundinga FY2027 President Funding Request $10.0 million IIJA: $1.0 billion for emerging contaminants $20 million Agency and Projects or Program Project/ Program Purposes Type of Financial Assistance EPA, Small Water Systems Resilience and Sustainability Grant Program Projects that increase water use efficiency, enhance water supply through watershed management or desalination, and increase energy efficiency in the conveyance or treatment of drinking water Grants to community water systems, tribal water systems, states EPA, Midsize and Large Water Systems Resilience and Sustainability Grant Program Projects include water conservation, desalination construction, and watershed management activities, among others HUD, Community Development Block Grant Programp Multipurpose community development projects; may include water and waste disposal CRS-9 Federal/ Nonfederal Cost Share FY2027 President Funding Request Average Amount of Assistance FY2026 Enacted Fundinga 90%/10% for grants (EPA may waive match under certain circumstances) For FY2023, EPA awarded an average of $2.3 million to grant recipientsn P.L. 119-74: $6.5 million $16.5 million 50% of grants for water systems serving 10,000 or more to 100,000 individuals, and 50% for systems serving more than 100,000 individuals 100%/0% No assistance provided to dateo P.L. 119-74: $2.3 million $2.3 million Formula grants, 70% of which are reserved for urban areas, 30% for state grants 100%/0% Entitlement formula grants: $2.1 million; average award to state programs: $20.0 million (for subawards to communities) in FY2024 P.L. 119-75: $3.3 billion — Federal/ Nonfederal Cost Share Average Amount of Assistance FY2026 Enacted Fundinga FY2027 President Funding Request Agency and Projects or Program Project/ Program Purposes Type of Financial Assistance Commerce, EDA, Economic Adjustment Assistance (EAA)q Multipurpose economic development projects; may include water and sewer Project grants Generally, 60%/40% $650,000 (FY2025) P.L. 119-74: Congress directed EDA to allocate $39.5 million to EAA The President’s FY2027 budget requested to eliminate funding for the EDA programs and requested $20 million for “an orderly closeout of EDA”r Commerce, EDA, Public Works Multipurpose economic development projects; may include water and sewer Project grants Generally, 60%/40% $1.4 million (FY2025) P.L. 119-74: Congress directed EDA to allocate $100.0 million to Public Works The President’s FY2027 budget requested to eliminate funding for the EDA programs and requested $20 million for “an orderly closeout of EDA”r Source: CRS. Notes: An em dash (—) indicates that the President did not make a funding request; IIJA = Infrastructure Investment and Jobs Act (P.L. 117-58); DOI = Department of the Interior; USACE = U.S. Army Corps of Engineers; HUD = Department of Housing and Urban Development; EDA = Economic Development Administration; CPF/CDS = Community Project Funding/Congressionally Directed Spending. a. In some cases, funding amounts may address other objectives within a given project or program. b. These projects must generally be authorized by Congress prior to construction. Municipal water supply is not the primary purpose of these projects. IIJA funding for Title XVI reflects all funding for these projects under that legislation, including both regular and “large-scale” projects. c. Title XVI supports what is generally considered water reuse and reclamation. Reclamation is treatment of wastewater or other impaired surface water (e.g., seawater) or groundwater (e.g., groundwater with high levels of contaminants, such as arsenic or salts) to make it usable or reusable for nonpotable or indirect potable use (e.g., potable use after storage and recovery, such as after groundwater recharge). Reuse connotes planned beneficial use (e.g., landscape watering, agricultural irrigation, and industrial cooling) of treated municipal wastewater. d. These projects must generally be authorized by Congress prior to construction. CRS-10 e. f. g. h. i. j. k. l. m. n. o. p. q. r. CRS-11 This ratio does not account for additional subsidization. Under certain conditions, states may provide additional subsidization, including principal forgiveness, negative interest loans, or a combination. In addition, appropriations acts in recent years have required states to use minimum percentages of their allotted funds to provide additional subsidization, including grants. This figure is based on FY2026 allotments to states and territories from the Commerce, Justice, Science; Energy and Water Development; and Interior and Environment Appropriations Act, 2026 (P.L. 119-74), and IIJA (P.L. 117-58). See U.S. Environmental Protection Agency (EPA) Memorandum from Jessica Kramer to Water Division Directors, “Fiscal Year 2026 Allotments for the State Revolving Fund Provisions of the Infrastructure Investment and Jobs Act and Base Program Funding,” April 14, 2026, Attachment I, https://www.epa.gov/system/files/documents/2026-04/fy-2026-joint-srf-allotments-memorandum.pdf. This figure is based on FY2023 total dollars of annual assistance provided ($8.8 billion) and total number of assistance agreements (1,682) from the Clean Water State Revolving Fund (CWSRF) National Information Management System, “National Report,” https://www.epa.gov/cwsrf/clean-water-state-revolving-fund-cwsrfnational-information-management-system-reports. As of the date of this report, the data in the national report contain information through FY2023. “Average annual capitalization grant” includes emergency supplemental appropriations provided by IIJA (P.L. 117-58) directed toward specific project purposes (e.g., lead service line replacement). EPA, “Annual Allotment of Federal Funds for States, Tribes, and Territories,” https://www.epa.gov/dwsrf/annual-allotment-federalfunds-states-tribes-and-territories. EPA, “WIFIA Closed Loans,” as of July 8, 2026, https://www.epa.gov/wifia/wifia-closed-loans. Memorandum from Raffael Stein, Director, EPA Water Infrastructure Division, to Regional Water Division Directors, “Allocation of Federal Fiscal Year 2025 & 2026 Funding for the Sewer Overflow and Stormwater Reuse Municipal Grant Program,” April 27, 2026, https://www.epa.gov/system/files/documents/2026-04/osgfy25-fy26-allocation-memo.pdf. For more information, see EPA, “Training and Technical Assistance (TA) Program for Rural, Small, and Tribal Wastewater Systems,” https://www.epa.gov/small-andrural-wastewater-systems/training-and-technical-assistance-ta-program-rural-small-and. For more information, see EPA, “Training and Technical Assistance to Improve Water Quality and Enable Small Public Water Systems to Provide Safe Drinking Water,” https://www.epa.gov/dwcapacity/training-and-technical-assistance-improve-water-quality-and-enable-small-public-water-0. EPA, “WIIN Grant: Reduction in Lead Exposure Via Drinking Water,” https://www.epa.gov/dwcapacity/wiin-grant-reducing-lead-drinking-water#recentfunding. For more information, see EPA, “Drinking Water System Infrastructure Resilience and Sustainability,” https://www.epa.gov/dwcapacity/drinking-water-systeminfrastructure-resilience-and-sustainability#funding2. For more information, see EPA, “Midsize and Large Drinking Water System Infrastructure Resilience and Sustainability Program,” https://www.epa.gov/dwcapacity/ midsize-and-large-drinking-water-system-infrastructure-resilience-and-sustainability#available%20funding. Community Development Block Grant (CDBG) figures in this table do not include Community Development Fund set-asides. The totals for the EAA program do not include supplemental appropriations or annual appropriations directed to the Assistance to Indigenous Communities, Assistance to Coal Communities (ACC), or other Assistance to Energy Communities initiatives. OMB, Appendix—Budget of the U.S. Government FY2027, https://www.whitehouse.gov/wp-content/uploads/2026/04/com_fy2027.pdf#page=4sd. Federally Supported Water Projects and Programs Department of the Interior5 Bureau of Reclamation6 The Bureau of Reclamation (Reclamation) was established to implement the Reclamation Act of 1902, which authorized the construction of water works to provide water for irrigation in arid and semiarid western states.7 Reclamation owns and manages 491 dams and 296 reservoirs, which are capable of storing 140 million acre-feet of water.8 These facilities serve approximately 10 million acres of irrigated farmland and 31 million municipal and industrial (M&I) customers throughout the West. Historically, Reclamation primarily supports M&I water supplies as part of larger, multipurpose federal reclamation projects serving irrigation, flood control, power supply, and recreation purposes. However, it has constructed few such projects in recent years. Since 1980, Congress has individually authorized construction of several “rural water supply” projects that have also served these purposes. Further, since 1992 Congress has also authorized nonfederal participation in reclamation wastewater and reuse/recycling projects. These projects, discussed below, are known as Title XVI projects because they were first authorized in 1992 under Title XVI of P.L. 102-575. Congress has in the past decade expanded Reclamation’s involvement in other types of nonfederal water supply projects. In the 2016 Water Infrastructure Improvements for the Nation Act (WIIN Act; P.L. 114-322), Congress added authority for Reclamation to support nonfederal construction of brackish and seawater desalination projects and added new authority for Reclamation to support water storage project construction (generally referred to here as “WIIN Act water storage projects”) on a cost-shared basis, including construction of nonfederal water storage projects. Each of these areas is discussed below. In P.L. 117-169 (popularly known as the Inflation Reduction Act, or IRA), Congress appropriated $550.0 million for Reclamation to provide up to 100% of the cost for water projects where the primary purpose is to provide domestic water supplies to disadvantaged communities or households (see text box below). 5 This section was prepared by Charles V. Stern, Specialist in Natural Resources Policy, Resources, Science, and Industry Division, and Anna E. Normand, Specialist in Natural Resources Policy in the Resources, Science, and Industry Division. 6 For more information on Bureau of Reclamation (Reclamation) water supply authorities and activities, see CRS Report R46303, Bureau of Reclamation: History, Authorities, and Issues for Congress, by Charles V. Stern and Anna E. Normand. 7 Reclamation is generally authorized to construct projects only in the 17 western states (Arizona, California, Colorado, Idaho, Kansas, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, and Wyoming) unless otherwise directed by Congress. For example, in 1986, Congress authorized Reclamation to also work in U.S. territories (P.L. 99-396), and Section 8501(1) of P.L. 116-9 authorized Reclamation to provide grants for water efficiency improvements in Hawaii and Alaska, in addition to other authorized areas. 8 Bureau of Reclamation, “About Us – Fact Sheet,” accessed August 12, 2026, https://www.usbr.gov/main/about/ fact.html. Congressional Research Service 12 Federally Supported Water Projects and Programs Bureau of Reclamation’s Disadvantaged Community Domestic Water Supply Projects9 Section 50231 of P.L. 117-169, commonly referred to as the Inflation Reduction Act, appropriated $550.0 million, available through FY2031, for the Bureau of Reclamation (Reclamation) to provide up to 100% of the cost for the planning, design, and/or construction of water projects where the primary purpose is to provide domestic water supplies to disadvantaged communities or households in a Reclamation state or territory (43 U.S.C. §391). The funding mechanism may be via grants, contracts, or financial assistance agreements at a cost share determined by the Commissioner of Reclamation. Utilizing Section 50231, Reclamation reported that it had committed $222 million in funding for domestic water supply projects as of March 2026. This includes funding to assist tribes under a new Tribal Domestic Water Supplies Program for tribes in Reclamation states, and a new Territorial Domestic Water Supply Program for the U.S. territories of American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands. In addition, Reclamation has supported some eligible proposals for WaterSMART Planning and Project Design Grants and WaterSMART Drought Resiliency Projects above the usual 50% federal cost share. Historically, Reclamation constructed projects with federal funds, then established a repayment schedule based on the amount of total construction costs allocated to specific project purposes. Reclamation project authorizations typically require 100% repayment, with interest, for the M&I portion of water supply facilities, which makes Reclamation assistance a de facto long-term loan.10 A similar arrangement is required for the federal portion of WIIN Act water storage projects. For M&I projects under rural water, Title XVI, desalination, and disadvantaged community domestic water supply authorities, Congress has established terms providing some or all federal funding for projects on a nonreimbursable basis. “Traditional” Multipurpose Reclamation Projects11 Reclamation undertakes “traditional” reclamation projects (i.e., projects authorized under the structure laid out in the Reclamation Act of 1902 and related laws) at the explicit direction of Congress. Local project sponsors may approach Reclamation or Congress with proposals for project construction and funding. However, except where blanket feasibility study authorizations exist (e.g., certain program areas described below), specific project feasibility studies must first be authorized by Congress.12 Once a feasibility study is completed, congressional authorization is typically sought prior to a request for construction appropriations.13 Because there is no 9 The sources for this text box are Reclamation Reports on Inflation Reduction Act, July 11, 2025; Reclamation, “Tribal Domestic Water Supplies Program,” https://www.usbr.gov/native/programs/DomesticWaterprogram.html; Reclamation, Territorial Domestic Water Supply Projects Financial Assistance Request for Proposals, February 2026, https://www.usbr.gov/international/DWSP/ RFP_Territorial%20Domestic%20Water%20Supplies%20Program_Phase%202.pdf; DOI, “Biden-Harris Administration Delivers $147 Million from Investing in America Agenda for Drought Resiliency and Water Supply Reliability Across the West,” May 6, 2024, https://www.doi.gov/pressreleases/biden-harris-administration-delivers147-million-investing-america-agenda-drought. 10 Repayment obligations are typically spread over a 40- or 50-year repayment term. In contrast to municipal and industrial (M&I) repayment, Reclamation-built irrigation facilities are generally repaid without interest over similar time periods. 11 This section discusses “traditional” authority for Reclamation to construct water resources projects. Reclamation also has a similar (but separate) authority to construct new surface water storage projects under Section 4007 of the Water Infrastructure Improvements for the Nation Act (WIIN Act; P.L. 114-322). For more information about how this authority differs from Reclamation’s traditional construction authority, see CRS In Focus IF10626, Reclamation Water Storage Projects: Section 4007 of the Water Infrastructure Improvements for the Nation (WIIN) Act, by Charles V. Stern. 12 See Section 8 of the Federal Water Project Recreation Act of 1965 (P.L. 89-72; 16 U.S.C. §460l-19). 13 Section 9(a) of the Reclamation Project Act of 1939 (53 Stat. 1193; 43 U.S.C. §485h(a)) provides that, if the (continued...) Congressional Research Service 13 Federally Supported Water Projects and Programs “program” per se, there are no general eligibility or program criteria for selecting large, multipurpose projects. Rather, Congress relies on information provided in feasibility studies, including cost-benefit, engineering, and environmental analyses and policy considerations. While Reclamation maintains almost 200 of these projects throughout the country, it has constructed few new reclamation projects in recent years. Project Purposes Individual authorization statutes establish project purposes. Generally, M&I projects are part of larger, multipurpose projects such as those built for irrigation water supply, flood control, and hydropower purposes. Financing or Funding Mechanism Projects are financed and constructed up front by the federal government. Costs for M&I portions of such projects are generally considered reimbursable to the government and are thus scheduled to be repaid in full, with interest, over extended terms. Irrigation districts must also repay their share of project benefits, but such payments are not subject to interest charges. Other water supply costs, such as costs for fish and wildlife enhancement, are considered nonreimbursable pursuant to federal law, and repayment is not required. Eligibility Requirements Generally, local governments and organizations, such as irrigation, water, or conservation districts, may approach Reclamation and/or Congress for project support. All construction project funding must be appropriated by Congress. As noted earlier, Reclamation works only on projects located in the 17 western states (32 Stat. 388; 43 U.S.C. §§391 et seq.) unless otherwise specifically authorized. Recent Federal Funding Funding information for the M&I portions of multipurpose reclamation projects is not readily available. Total discretionary Reclamation appropriations (gross current authority for all Reclamation projects and programs, not including permanent funding) for FY2026 were $1.63 billion. For FY2027, the President requested $1.28 billion for Reclamation.14 Statutory and Regulatory Authority Reclamation generally carries out its water supply activities in 17 western states as authorized by the Reclamation Act of 1902, as amended (32 Stat. 388; 43 U.S.C. §§391 et seq.), as well as through hundreds of individual project authorization statutes. Secretary of the Interior finds that the allocable benefits of the project equal or outweigh anticipated costs, then the project shall be deemed authorized. Even so, the Secretary of the Interior has first sought congressional approval for large construction projects in recent decades. In any case, Congress would need to provide appropriations for any new project construction. 14 These amounts include funding requests for Rural Water and Title XVI programs, discussed below. Congressional Research Service 14 Federally Supported Water Projects and Programs WIIN Act Water Storage Projects15 Congress enacted new authority for Reclamation to support surface and groundwater storage projects (i.e., authority apart from the aforementioned “traditional” project authority) under Section 4007 of the WIIN Act.16 Congress authorized $335.0 million in discretionary appropriations for these projects and approved a different approach than the traditional reclamation law process of federal project study and construction with full, up-front federal funding for individual projects. Funding for water storage projects under Section 4007 is available for two primary project types. Federally owned storage projects (surface water storage projects to which the United States holds title, and which were authorized to be constructed pursuant to reclamation law and regulations) may be no more than 50% federally funded. State-led storage projects (surface water or groundwater storage projects constructed, operated, and maintained by states or political subdivisions) may be no more than 25% federally funded. Prior to the WIIN Act, Congress had not authorized Reclamation to fund state-led water storage projects. Before projects can receive federal support under the WIIN Act authority, several milestones must be met. The Secretary of the Interior must find that the project is feasible and provides benefits proportionate to the federal government’s cost share, and project sponsors must agree to pay their portion of project costs up front. Appropriations under the Section 4007 authority are available to individual projects only after the Secretary transmits a list of recommended projects and funding levels to Congress and Congress designates those projects by name in an enacted appropriations act.17 Any project that meets the aforementioned criteria is eligible for funding allocations by Reclamation. However, Congress also stipulated that in order to move forward, the Secretary must find projects feasible by January 1, 2021.18 As of May 2026, Reclamation had recommended funding for 13 projects in three states; Reclamation also recommended 8 of these projects for construction prior to the aforementioned WIIN Act deadline. These projects are eligible for construction funding moving forward. Project Purposes Congress did not specify purposes for WIIN Act water storage projects, only that a project must be feasible and have federal benefits “in accordance with the reclamation laws.”19 To date, projects receiving funding under this authority are expected to provide benefits related to agricultural irrigation and/or M&I uses, among other things. Financing or Funding Mechanism Water storage projects determined by Reclamation to be eligible under Section 4007 of the WIIN Act may receive direct, up-front federal funding in amounts recommended by Reclamation and approved by Congress, subject to the WIIN Act’s authorized cost shares (i.e., 50% for federal 15 For more on this authority, see CRS In Focus IF10626, Reclamation Water Storage Projects: Section 4007 of the Water Infrastructure Improvements for the Nation (WIIN) Act, by Charles V. Stern; and CRS Report R47987, Bureau of Reclamation Support for Water Storage Projects, by Charles V. Stern. 16 43 U.S.C. §390b note. 17 For more information, see P.L. 114-322, §4007(a) and (b). 18 P.L. 114-322, §4007(i). 19 P.L. 114-322, §4007(b)(3)(A), §4007(c)(2)(B)(i). Congressional Research Service 15 Federally Supported Water Projects and Programs projects, 25% for nonfederal projects). Similar to the “traditional” multipurpose federal reclamation projects discussed above, the federal share for WIIN Act storage projects is subject to a cost allocation by Reclamation during the study process that determines which portions of the federal cost share are reimbursable and nonreimbursable. Reimbursable costs, which include the portions of benefits estimated to accrue to M&I agricultural water supplies, must be repaid by project sponsors over a 40-year period (with interest for M&I water supply benefits, and without interest for agricultural irrigation benefits). Nonreimbursable costs, such as water supplies for fish and wildlife purposes and flood control, are considered federal benefits and do not have to be repaid. Eligibility Requirements Eligible projects must be located in the 17 western states and territories authorized in reclamation law and may include federal projects—projects to which the United States holds title and were authorized and constructed pursuant to reclamation laws. “State-led” projects—projects constructed, operated, and maintained by any state, department of a state, subdivision of a state, or public agency organized pursuant to state law—are also eligible for funding under this section.20 Recent Federal Funding Similar to funding for traditional reclamation projects, there is no funding breakdown available for the M&I portions of WIIN Act water storage projects. Congress included $62.5 million for WIIN Act Section 4007 projects in P.L. 119-74. The President requested no funding for these projects in the FY2026 budget request. Apart from regular appropriations, Congress has also made supplemental appropriations for Reclamation water storage projects, including Section 4007 projects. Congress appropriated $1.05 billion for water storage projects from FY2022 to FY2026 in the Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58), and Reclamation allocated $1.029 billion in funding for these projects in FY2022-FY2026 IIJA spend plans.21 In the 119th Congress, the FY2025 reconciliation law commonly known as the One Big Beautiful Bill Act (P.L. 119-21) appropriated another $1.0 billion for projects that would increase the capacity of existing Reclamation surface water storage facilities, including Section 4007 projects. The Administration allocated $889 million in this funding in 2026.22 Statutory and Regulatory Authority Water storage projects are authorized under Subtitle J, Section 4007, of the WIIN Act (130 Stat. 1863-1866, 43 U.S.C. §390b note). 20 P.L. 114-322, §4007(a)(1)-(2). 21 FY2022-FY2025 Reclamation Infrastructure Investment and Jobs Act (IIJA) spend plans are available at https://www.usbr.gov/bil/2022-spendplan.html. 22 Reclamation, “Interior Announces $889 Million Investment in Western Water Infrastructure Through President Trump’s One Big Beautiful Bill,” press release, March 17, 2026, https://www.doi.gov/pressreleases/interior-announces889-million-investment-western-water-infrastructure-through. Congressional Research Service 16 Federally Supported Water Projects and Programs Rural Water Supply Projects23 Similar to its traditional multipurpose projects, Reclamation has undertaken individual rural water projects, largely at the explicit direction of Congress. In lieu of the project-based approach to authorizing new rural water projects, Congress authorized a rural water supply program in the Reclamation Rural Water Supply Act of 2006 (Title I of P.L. 109-451; 42 U.S.C. §§2401 et seq.). Under the program, Reclamation was authorized to work with rural communities and Indian tribes to identify M&I water needs and options to address such needs through appraisal investigations and, in some cases, feasibility studies. In 2008, Reclamation published an interim final rule establishing future program criteria.24 According to Reclamation, between 2006 and 2016, it used this authority to study approximately 22 projects to varying extents. It did not recommend any projects for construction, as authorized by Congress. No projects have been constructed under this authority, which expired at the end of FY2016 and has not been renewed. Congress continues to provide funding for previously authorized rural water projects and those authorized thereafter.25 Project Purposes Individual authorization statutes have established rural water project purposes. Some rural water project authorizations meet obligations under Indian water settlements or otherwise provide benefits to Indian tribes. Financing or Funding Mechanism Projects are generally cost-shared between the federal government and local sponsors. The federal government pays up to 100% of the cost of Indian rural water supply projects, including operation and maintenance, and the federal cost share for current nontribal projects ranges from 75% to 80%. Reclamation requests and distributes funding from Congress generally based on prioritization criteria aimed to reflect both the priorities identified in the statutes that authorized individual projects and the goals of the Reclamation Rural Water Supply Act of 2006. Eligibility Requirements Local governments and organizations such as water and conservation districts or associations, including tribes, may approach Reclamation and/or Congress for project support. Currently, all construction project funding must be authorized at the project level and appropriated by Congress. As noted earlier, Reclamation works only on projects located in the 17 western states (32 Stat. 388; 43 U.S.C. §§391 et seq.) unless specifically authorized by Congress. Reclamation previously published an interim final rule (43 C.F.R. Part 404) that established criteria for developing new rural supply projects.26 However, the authority for the program has 23 See also CRS Report R46308, Bureau of Reclamation Rural Water Projects, by Anna E. Normand. 24 43 C.F.R. Part 404. 25 The Clean Water for Rural Communities Act (§1110 of Title XI of Division FF of P.L. 116-260) directed the Secretary of the Interior to enter into a cooperative agreement to provide assistance at a 65% federal cost share for the planning, design, and construction of the Musselshell-Judith Rural Water System and authorized appropriations at $56.7 million subject to cost indexing for the 2014 cost estimate of the feasibility report. The act also authorized $5.0 million for reviewing the Dry-Redwater Regional Water Authority System submitted to Reclamation on September 1, 2010, and for completing any additional work to ensure the study complied with Reclamation’s feasibility standards. Congress has appropriated funding for the Musselshell-Judith Rural Water System. 26 DOI, “Reclamation Rural Water Supply Program,” 73 Federal Register 67782, November 17, 2008, http://edocket.access.gpo.gov/2008/pdf/E8-26584.pdf. Congressional Research Service 17 Federally Supported Water Projects and Programs since expired, and Congress last authorized a project in 2009.27 The rule does not apply to previously authorized or newly authorized projects. As previously stated, ongoing rural water construction activities are limited to individually authorized projects. Recent Federal Funding For FY2026, the explanatory statement accompanying the Energy and Water Development and Related Agencies Appropriations Act, 2026 (Division B of P.L. 119-74) directed Water and Related Resources Account appropriations for the following individual rural water projects:28 • • • • $17.5 million for the Mni Wiconi Project, $14.3 million for rural water activities at the Garrison Diversion Unit, $10.7 million for Eastern New Mexico Water Supply—Ute Reservoir, and $2.0 million for the Mid-Dakota Rural Water Project. The explanatory statement also directed $75.0 million for construction of rural water projects for Reclamation to allocate in a spend plan. Reclamation allocated $50.0 million for the Eastern North Dakota Alternate Water Supply project part of the Pick-Sloan Missouri Basin Program and $25.0 million for construction at the Eastern New Mexico Water Supply Project.29 Reclamation’s IIJA spend plan indicates $92.0 million for FY2026.30 Therefore, the total FY2026 allocation for rural water supply projects is $211.5 million. For FY2027, the President requested $31.3 million for tribal rural water O&M requirements at the Mni Wiconi Project ($17.3 million) and Garrison Diversion Unit ($14 million).31 Statutory and Regulatory Authority The Rural Water Supply Program was authorized by the Reclamation Rural Water Supply Act of 2006. This programmatic authority expired at the end of FY2016 and has not been renewed. Construction and operations and maintenance are ongoing for several geographically specific projects that were authorized under various individual acts. Title XVI Projects Title XVI of the Reclamation Projects Authorization and Adjustment Act of 1992 (P.L. 102-575) directs the Secretary of the Interior to develop a program to “investigate and identify” opportunities to reclaim and reuse wastewater and naturally impaired ground and surface water. Water reclaimed via Title XVI projects is primarily used for M&I water supply (nonpotable and 27 DOI, “Reclamation Rural Water Supply Program,” 73 Federal Register 67778-67791, November 17, 2008, http://edocket.access.gpo.gov/2008/pdf/E8-26584.pdf. Under the rule, priority was given to domestic, residential, and municipal uses. Communities or groups of communities with populations under 50,000 were also eligible. The use of water for commercial irrigation purposes was not allowed. 28 Funding levels for operations of the Mni Wiconi Project, rural water activities at the Garrison Diversion Unit, and the Mid-Dakota Rural Water Project were as requested in the President’s budget request. Funding for the Eastern New Mexico Water Supply—Ute Reservoir was included as a congressional directed spending request. 29 Reclamation, Bureau of Reclamation FY 2026 Additional Funding Allocation Recommendations, https://www.usbr.gov/budget/2026/FY-2026-BOR-Spend-Plan-Distribution-Additional-Funds.pdf. 30 Reclamation, Infrastructure Investment and Jobs Act (IIJA) Annual Spend Plan 2026, https://www.usbr.gov/foia/ docs/bor-infrastructure-investment-jobs-act/archive/docs/spendplan-2026/FY-2026-Reclamation-BIL-Spend-Plan.pdf. 31 Reclamation, Budget Justifications and Performance Information Fiscal Year 2027, https://www.doi.gov/sites/ default/files/documents/2026-05/fy2027greenbookusbr.pdf. Congressional Research Service 18 Federally Supported Water Projects and Programs indirect potable purposes only). Other uses include irrigation supply, groundwater recharge, fish and wildlife enhancement, and outdoor recreation. The original Title XVI legislation authorized construction of five reclamation wastewater projects and six wastewater and groundwater recycling/reclamation studies. The act has been amended on multiple occasions, resulting in a total of 53 projects individually authorized for construction. Amendments to Title XVI enacted in the WIIN Act made changes to the program, including authorizing the Secretary of the Interior to accept and review nonfederal feasibility studies for potential planning, design, and construction projects.32 The WIIN Act also authorized a competitive grant program for construction of projects approved under this authority.33 In IIJA, Congress further amended the Title XVI authority and created a new category of “largescale” Title XVI projects, defined as projects with total costs in excess of $500.0 million.34 In contrast to “regular” Title XVI projects (which are generally limited to the lesser of $20.0 million or 25% federal cost share), projects under this section are entitled to a federal cost share of 25% of project costs, with no dollar cap on federal support. As a result, Reclamation currently supports three types of water reuse and recycling projects: congressionally authorized Title XVI projects; WIIN Act Title XVI projects, and large-scale water reuse/recycling projects. Project Purposes The general purpose of Title XVI projects is to provide supplemental water supplies by recycling/reusing agricultural drainage water, wastewater, brackish surface and groundwater, and other sources of contaminated water. Projects may be permanent or for demonstration purposes. Financing or Funding Mechanism Title XVI projects are funded through grants that are available only to authorized projects (i.e., projects with individual authorizations from Congress or approved by the Administration and Congress pursuant to the WIIN Act). Title XVI project construction costs are shared by the federal government and a local project sponsor or sponsors. The federal share is nonreimbursable and is generally limited to the lesser of $20.0 million (1996 dollars) or 25% of total project costs.35 The exception is large-scale water reuse and recycling projects funded pursuant to IIJA, which are eligible to receive up to 25% of project costs, with no comparable cost cap. Eligibility Requirements Similar to other Reclamation activities, the Title XVI water reclamation and wastewater recycling program is limited to projects and studies in the 17 western states, unless otherwise specified.36 Prior to enactment of the WIIN Act, Administration requests for construction funding had generally been limited to individual congressionally authorized projects where (1) an appraisal 32 These guidelines were published in Reclamation, Reclamation Manual Directive and Standard WTR 11-01, February 8, 2017, https://www.usbr.gov/recman/wtr/wtr11-01.pdf. 33 While selection criteria for WIIN Act grants have generally been the same as those for “traditional” Reclamation projects, the two groups of projects are typically allocated funding amounts separately by Congress, and Reclamation solicits grant proposals for each category separately. 34 See Title IX, §40905 of P.L. 117-58. 35 The exceptions are individually authorized projects where Congress authorized costs shares that differ from this amount, and large-scale water recycling and reuse projects receiving support under IIJA (authorized to receive up to 25% of total costs, with no dollar cap). 36 For example, Congress has authorized three projects for construction in Hawaii (P.L. 109-70). Congressional Research Service 19 Federally Supported Water Projects and Programs investigation and feasibility study had been completed and approved by the Secretary, (2) the Secretary determined that the project sponsor was capable of funding the nonfederal share of project costs, and (3) the local sponsor entered into a cost-share agreement with Reclamation. The WIIN Act provided DOI with additional authority to accept nonfederal feasibility studies and to approve and consider these projects for construction funding if they meet Title XVI program criteria.37 These criteria require that (1) the study comply with federal laws and regulations applicable to water reuse and recycling studies, and (2) the project is technically and financially feasible and provides a federal benefit in accordance with Reclamation laws. The WIIN Act authority has essentially rendered unnecessary the prior practice of obtaining specific authorizations for individual Title XVI projects before Reclamation can pursue funding, although Congress may still choose to authorize individual projects where it wishes to alter the terms for federal support. Over time, Reclamation has issued and revised multiple documents outlining evaluation criteria for prioritizing Title XVI projects. Reclamation posted the most recent evaluation criteria for Title XVI projects in March 2018.38 Recent Federal Funding Total appropriations for the Title XVI program in FY2026 under P.L. 119-74 were $4.0 million. Reclamation also allocated $539.0 million in IIJA funding for Title XVI projects in FY2022FY2025 IIJA spend plans, plus an additional $441.0 million for large-scale Title XVI projects in FY2022-FY2025 IIJA spend plans.39 For FY2027, the President’s budget request did not include funds for Title XVI projects. Statutory and Regulatory Authority The original statutory authority for the Reclamation wastewater and reuse program is the Reclamation Wastewater and Groundwater Study and Facilities Act, Title XVI of P.L. 102-575, as amended (43 U.S.C. §§390h et seq.). Other statutes that authorized individual Title XVI projects include the Reclamation Recycling and Water Conservation Act of 1996 (P.L. 104-266); the Oregon Public Land Transfer and Protection Act of 1998 (P.L. 105-321); the 1999 Water Resources Development Act (WRDA; P.L. 106-53, §595); the Consolidated Appropriations Act, 2001 (P.L. 106-554, Division B, §106); a bill amending the Reclamation Wastewater and Groundwater Study and Facilities Act (P.L. 107-344); the Consolidated Appropriations Resolution, 2003 (P.L. 108-7, Division D, §211); the Emergency Wartime Supplemental Appropriations Act of 2003 (P.L. 108-11); the Irvine Basin Surface and Groundwater Improvement Act of 2003 (P.L. 108-233); the Williamson County Water Recycling Act of 2004 (P.L. 108-316); the Hawaii Water Resources Act of 2005 (P.L. 109-70); the Consolidated Appropriations Act, 2008 (P.L. 110-161); the Consolidated Natural Resources Act of 2009 (P.L. 110-229); and the Omnibus Public Land Management Act of 2009 (P.L. 111-11, Title IX, Subtitle B). Programmatic authority for Reclamation to approve studies and grant funding for individual Title XVI projects was provided in the WIIN Act (P.L. 114-322, Title III, Subtitle J) and IIJA (P.L. 117-58). 37 See generally P.L. 114-322, §4009(c). 38 Reclamation, Title XVI Water Reclamation and Reuse Program, Updated Evaluation Criteria for Review and Comment, March 2018, https://www.usbr.gov/watersmart/title/docs/2018/Title%20XVI-Evaluation-CriteriaReview.pdf. 39 FY2022-FY2025 Reclamation IIJA spend plans are available at https://www.usbr.gov/bil/2022-spendplan.html. Congressional Research Service 20 Federally Supported Water Projects and Programs Desalination Projects Desalination projects develop and supplement water supplies through the treatment of ocean or brackish water. Water supplies created by desalination projects are primarily used for M&I and irrigation water supply, but they may also be used for other purposes. Congress authorized the Secretary of the Interior, through Reclamation, to support nonfederal construction of ocean or brackish water desalination projects in Section 4009(a) of the WIIN Act. Similar to congressionally authorized Title XVI projects, this funding is awarded as grants to projects with a completed feasibility study that has been submitted to Reclamation and that meets all of the requirements in Reclamation’s Directive and Standard for feasibility study review of Title XVI and Desalination Projects.40 Project Purposes The general purpose of desalination construction projects is to provide supplemental water supplies by treating seawater or brackish water. Projects may be permanent or for demonstration purposes.41 Financing or Funding Mechanism Desalination projects are funded through grants, which are available only to projects that have submitted a feasibility study to Reclamation. Project construction costs are shared by the federal government and a local project sponsor or sponsors. The maximum federal share is 25% of total project costs; thus, nonfederal sponsors must be capable of funding 75% of project costs.42 These costs may be made available through cash, costs contributed by the applicant, or third-party inkind contributions. Other federal funding may not be counted toward the required nonfederal cost share, unless the statute authorizing a program stipulates that it may be made available for matching cost-share requirements. Eligibility Requirements Like other Reclamation activities, support for nonfederal desalination projects is limited to nonfederally owned and operated projects and studies in the 17 western United States or territories identified in the Reclamation Act of 1902, as amended. Projects must meet several other requirements, including having completed feasibility studies that have been submitted to Reclamation and that meet all of the requirements in Reclamation’s Directive and Standard for feasibility study review of Title XVI and Desalination Projects.43 Projects must also be included in a state-approved plan or, as an alternative, be requested by the governor of the state in which it is located. The sponsor of any project in a western state that meets the aforementioned criteria may be eligible to apply for grants under this authority. 40 Reclamation, Title XVI Water Reclamation and Reuse Program and Desalination Construction Program Feasibility Study Review Process, Reclamation Manual, WTR 11-01, October 18, 2019, https://www.usbr.gov/recman/wtr/wtr1101.pdf. 41 See generally P.L. 114-322, §4009(a). 42 Cost shares and other requirements under this section were established administratively. For more information, see Reclamation, “WaterSMART: Desalination,” https://www.usbr.gov/watersmart/desalination/index.html. 43 Reclamation, Title XVI Water Reclamation and Reuse Program and Desalination Construction Program Feasibility Study Review Process, Reclamation Manual, WTR 11-01, October 18, 2019, https://www.usbr.gov/recman/wtr/wtr1101.pdf. Congressional Research Service 21 Federally Supported Water Projects and Programs Several types of projects are not eligible for funding under this authority, including projects with water reuse and recycling components (some of which may be eligible for funding from the aforementioned Title XVI program), research and/or demonstration projects, and operations, maintenance, and repair projects. Recent Federal Funding Grants for desalination project construction are funded through Reclamation’s research and development program for desalination and water purification; total FY2026 appropriations for that program under P.L. 119-74 were $6.7 million. Congress also appropriated $250.0 million for these projects in IIJA from FY2022 to FY2026. Reclamation allocated $245.0 million for desalination projects in FY2022-FY2026 IIJA spend plans. For FY2027, the President requested no funding for the desalination research and development program. Statutory and Regulatory Authority Desalination projects were authorized under the Water Desalination Act of 1996 (P.L. 104-298, as amended by Section 4009(a) of Title II, Subtitle J, of the WIIN Act, P.L. 114-322). Department of Defense44 U.S. Army Corps of Engineers (USACE) Civil Works USACE Civil Works Projects Storage at USACE Authorized and Constructed Reservoirs As part of its civil works activities, USACE constructs and operates water resource projects throughout the country. USACE civil works projects and authorities are concentrated on three principal missions—navigation, flood risk management, and aquatic ecosystem restoration. Some USACE activities may support M&I water supply storage (e.g., for agricultural use or M&I use), hydroelectric generation, fish and wildlife, and recreation, in addition to addressing one or more of the three principal missions. The most common way that USACE infrastructure supports M&I water supply is through providing storage of M&I water at a USACE reservoir.45 M&I water supply is generally not a USACE reservoir’s or a USACE project’s primary purpose.46 These projects are discussed further under the heading “Storage of M&I Water at Multipurpose USACE Reservoirs.” 44 This section was prepared by Anna E. Normand, Specialist in Natural Resources Policy in the Resources, Science, and Industry Division, and Nicole T. Carter, Specialist in Natural Resources Policy in the Resources, Science, and Industry Division. 45 Congress has established that construction costs associated with the M&I water supply components of USACE reservoirs are 100% nonfederal and 0% federal (33 U.S.C. §2213(c)(2)). 46 USACE developed a document in response to congressional direction to provide the authorizing committees a report on benefits and consequences of including water supply and water conservation as a primary mission of USACE projects. See USACE, Water Resources Development Act of 2020: Section 221: Study on Water Supply and Water Conservation at Water Resources Development Projects, August 2023, https://usace.contentdm.oclc.org/utils/getfile/ collection/p16021coll5/id/37142. Congressional Research Service 22 Federally Supported Water Projects and Programs Congress passed the Grace F. Napolitano Priority for Water Supply, Water Conservation, and Drought Resiliency Act of 2024, as Title I, Subtitle B, of Division A of P.L. 118-272, the Thomas R. Carper Water Resources Development Act of 2024 (WRDA 2024). The water supply provisions of the act include a declaration of U.S. policy for USACE to maximize opportunities for water supply and conservation measures and drought resilience efforts at and in the operation of the agency’s water resource projects. The act also directs the Secretary of the Army to give full consideration to requests and proposals by nonfederal sponsors for USACE to use its authorities to further such measures and efforts in alignment with the authorized purposes of the agency’s projects. WRDA 2024 also authorized USACE to conduct certain single-purpose water supply feasibility studies, among other provisions.47 How implementation of the act may affect USACE water supply activities remains to be seen. Specific Projects In addition to USACE operating the Washington Aqueduct and associated reservoirs which transport and treat drinking water for Washington, DC, and parts of northern Virginia, Congress has authorized two USACE civil works projects to have significant water supply components. Both projects are located in Arkansas and address groundwater overdraft: the Grand Prairie Area Demonstration Project and the Bayou Meto Basin Project. These projects received USACE funding most recently in FY2026 at $16.0 million and $12.0 million, respectively; they were not funded in FY2025. These three specific projects are not discussed further in this report. Study and Construction Authority In Section 155 of the WRDA of 2020 (Division AA of the Consolidated Appropriations Act, 2021, P.L. 116-260; 33 U.S.C. §2347c), Congress authorized USACE to carry out small water storage projects, including for water supply.48 In Section 8108 of the WRDA of 2022 (Title LXXXI of Division H of P.L. 117-263; 33 U.S.C. §2357), Congress authorized USACE to perform up to 10 feasibility studies (at 90% federal cost and 10% nonfederal cost) on managed aquifer recharge projects in drought-prone or water-scarce areas.49 No projects appear to have 47 WRDA 2024’s Section 1201(a) included five single-purpose water supply feasibility studies (which were in Michigan, New Mexico, Oklahoma, Tennessee, and Texas/Oklahoma) and a feasibility study for “alternate water supply” in Pennsylvania. Additionally, WRDA 2024’s Section 1201(b) authorized a study of modifications to a USACE dam in California to include “water supply recharge and storage,” as well as improved flood risk management. Section 1208 directed USACE to study whether to include water supply as a purpose for a USACE project in the Colorado River Basin within Arizona, if such a study is requested by the project’s nonfederal sponsors or the Governor of Arizona (if there is no nonfederal sponsor). Section 1229 also authorized a USACE study, in coordination with relevant federal and state agencies and nonfederal interests, on water supply, availability, drought resilience, aquifer recharge, and causes of aquifer depletion, for those regions overlying the Ogallala Aquifer. These WRDA 2024 studies were not funded in FY2025 or in 2026 and are not discussed further in this report. 48 The provision provides various criteria for the maximum size of the storage projects and other specific project and program requirements (e.g., federal project costs are limited to $65.0 million; M&I costs are 100% nonfederal). The water storage capacity of a project under the program is to be not less than 2,000 acre-feet and not more than 30,000 acre-feet. The Assistant Secretary of the Army for Civil Works (ASACW) implementation guidance for the Section 155 program indicates that the policy of USACE not conducting single-purpose water supply studies is superseded for purposes of this program. Memorandum from Michael L. O’Connor, ASACW, to Commanding General, USACE, “Implementation Guidance for Section 155 of the Water Resources Development Act of 2020, Small Water Storage Projects,” April 25, 2022, https://usace.contentdm.oclc.org/utils/getfile/collection/p16021coll5/id/35987. 49 The ASACW released implementation guidance for this provision; it indicates that the managed aquifer recharge portion of a study undertaken pursuant to this authority uses the 10% nonfederal cost share and that construction costs follow existing USACE cost sharing for water supply set out at 33 U.S.C. §2213, which is 100% nonfederal for M&I water supply and 35% nonfederal for agricultural water supply. Assistant Secretary of the Army (Civil Works), (continued...) Congressional Research Service 23 Federally Supported Water Projects and Programs been funded under these two authorities; these two authorities are not discussed further in this report. USACE Assistance for Nonfederal Projects Environmental Infrastructure (EI) Assistance At the direction of Congress, USACE also provides assistance for municipal EI, which typically consists of assistance with municipal drinking water and wastewater infrastructure projects and municipal source water protection and development. These authorities are discussed further under the heading “Environmental Infrastructure Assistance.” USACE Credit Assistance Program The Water Infrastructure Finance and Innovation Act of 2014 (WIFIA) authorizes USACE and EPA to provide credit assistance—loans or loan guarantees—for a broad range of water projects.50 USACE’s program is known as Corps Water Infrastructure Financing Program (CWIFP) to differentiate it from EPA’s WIFIA program. The program is authorized to offer long-term, lowcost loans with flexible repayment options for creditworthy nonfederal borrowers. Various state, local, and tribal government entities and various private entities (e.g., corporations, partnerships, and trusts) that are publicly sponsored are eligible for CWIFP loans.51 In December 2021, Congress created an account—the Water Infrastructure Finance and Innovation Program (WIFIP)—for USACE to implement its WIFIA authority. From FY2021 through FY2023, Congress provided USACE with a total of $81.0 million for credit assistance, as well as funding for program administration. Congress has limited the available appropriations for credit assistance to nonfederal dam safety projects (based on dam ownership information in the National Inventory of Dams).52 Dam safety projects can include work to upgrade, repair, and maintain a dam, and can include dam removals.53 USACE identifies selection criteria for its CWIFP credit assistance, including the extent to which the project is nationally or regionally significant in generating public benefits (e.g., water quality and quantity, including aquifer recharge, and protection of drinking water, including source water protection). In fall 2023, USACE solicited preliminary applications from prospective borrowers seeking credit assistance under CWIFP for nonfederal dam safety projects.54 After evaluating the preliminary applications for the support available through FY2023, USACE in September 2024 invited 18 prospective Memorandum from Jaime A. Pinkham, Acting ASACW, to Commanding General, USACE, “Implementation Guidance for Section 8108(b) of the Water Resources Development Act of 2022, Managed Aquifer Recharge Feasibility Studies,” January 17, 2025, https://usace.contentdm.oclc.org/utils/getfile/collection/p16021coll5/id/38410. 50 WIFIA 2014, Title V, Subtitle C, of P.L. 113-121; 33 U.S.C. §§3901-3914, as amended by P.L. 115-270. 51 33 U.S.C. §3907(a)(4). 52 Congress authorized USACE’s program for a broader set of activities than have been funded (33 U.S.C. §3905). Congress authorized USACE to provide credit assistance for water resource projects, such as flood control, hurricane and storm damage reduction; aquatic ecosystem restoration; and navigation; and multipurpose projects that are supported by USACE and the Environmental Protection Agency (EPA) WIFIA authorities (e.g., drinking water, wastewater, desalination, managed aquifer recharge, and/or stormwater system improvements). 53 An eligible dam safety project must also be a project for flood damage reduction, hurricane and storm damage reduction, environmental restoration, coastal or inland harbor navigation improvement, or inland and intracoastal waterways navigation improvement that the Secretary of the Army determines is technically sound, economically justified, and environmentally acceptable. 54 USACE, Department of Defense, “Notice of Funding Availability for Applications for Credit Assistance Under the Corps Water Infrastructure Financing Program,” 88 Federal Register 64892-64897, September 20, 2023. Congressional Research Service 24 Federally Supported Water Projects and Programs borrowers to complete their applications for an estimated almost $3.2 billion in loans. The Trump Administration’s request for FY2026 and FY2027 did not include funds for the WIFIP account. In FY2026 (and each of FY2024 and FY2025), the WIFIP account was funded at $7.2 million; $5.0 million is for program administration, and $2.2 million is to WIFIP for credit assistance for nonfederal dam safety and levee projects. Given the program’s current focus on nonfederal dam safety and levee projects, CWIFP is not discussed further in this report.55 Storage of M&I Water at Multipurpose USACE Reservoirs A total of 136 USACE reservoirs have roughly 9.8 million acre-feet of storage designated for M&I water.56 Most of this water was allocated to M&I purposes when the projects were constructed. Around 0.9 million acre-feet of this storage space has been assigned to M&I use from existing USACE reservoirs using USACE’s general water supply authorities.57 The storage of M&I water at USACE reservoirs, as discussed below, is subject to availability of storage space, and the associated costs are 100% a nonfederal responsibility.58 For its projects, USACE policy is that the agency does not acquire water rights for either M&I or agricultural water supply and conservation purposes. Rather, the water user is responsible for securing water rights. In addition to the WRDA 2024 direction and authorities previously discussed, Congress has given USACE limited general authority for M&I water supply under two statutes: 1. The Water Supply Act of 1958 authorized USACE (and Reclamation) to recommend economically justified M&I water supply storage space in new or existing reservoirs.59 2. The Flood Control Act of 1944 authorizes USACE to provide, through temporary agreements, surplus water from USACE reservoirs.60 Surplus water contracts have generally been limited to five-year terms with options to extend. Pursuant to these statutes, the agency can enter into agreements with nonfederal entities for water supply storage. While much of USACE’s water supply activities are conducted using the above general authorities, Congress has also at times authorized M&I water supply activities at specific USACE projects, principally USACE reservoirs. Project Purposes As previously noted, Congress authorized USACE to allocate a portion of its multipurpose reservoirs for permanent M&I storage or to provide M&I water from USACE reservoirs under 55 For more information on USACE’s program, see CRS Insight IN12021, Corps Water Infrastructure Financing Program (CWIFP), by Nicole T. Carter. For more information on the EPA WIFIA program, see “Water Infrastructure Finance and Innovation Act Program” in the EPA portion of the report. 56 U.S. Army Engineer Institute for Water Resources, FY 2016 Municipal, Industrial, and Irrigation Water Supply Database Report, 2017-R-02, Alexandria, VA, June 2017, p. 6, https://publibrary.planusace.us/#/document/e71cd9b9faff-4d63-8d42-8ee1baa3cc7f. 57 U.S. Army Engineer Institute for Water Resources, FY 2016 Municipal, Industrial, and Irrigation Water Supply Database Report, 2017-R-02, Alexandria, VA, June 2017, p. 8. 58 33 U.S.C. §2213(c)(2). 59 43 U.S.C. §390b. 60 33 U.S.C. §708. Congressional Research Service 25 Federally Supported Water Projects and Programs temporary agreements for surplus water.61 Under these authorities, USACE delivers water if it is available and if delivery does not substantially affect other authorized purposes. Financing or Funding Mechanism Most agreements for new M&I water supply storage are associated with existing USACE reservoirs. USACE policy generally is to obtain full payment of M&I allocated costs from nonfederal entities prior to or during construction.62 Eligibility Requirements For USACE’s water supply activities conducted using the above general authorities, nonfederal entities can contact USACE directly about pursuing water supply activities under the general authorities. Otherwise, nonfederal entities may submit a proposal to add or adjust water supply aspects of specific USACE projects through an annual public proposal submission process;63 Congress may draw from these proposals when developing USACE authorization legislation. For new USACE projects with M&I water supply, existing law and agency policy require that the water supply allocation for anticipated demand at any project not exceed 30% of the total estimated construction cost.64 Congress has enacted occasional exceptions to USACE’s general authority, which is generally limited to storage of water supply at existing projects that does not “seriously affect” other project purposes.65 Recent Federal Funding USACE primarily uses annual appropriations for administration of its water supply authorities. From FY2025 annual appropriations, USACE planned to use $6.5 million for USACE’s costs for implementing its reservoir-related water supply authorities.66 Information on the amount of USACE’s FY2026 annual appropriations that is planned for implementing its reservoir-related water supply authorities is not publicly available. For FY2027, the President’s budget request did not include funds for USACE’s water supply implementation costs.67 61 43 U.S.C. §390b; 33 U.S.C. §708. 62 USACE, Policy for Conducting Civil Works Planning Studies, Engineer Regulation (ER) 1105-2-103, November 2023, p. 77. For more on payments for reallocation to M&I at existing USACE projects, see ER 1105-2-103, p. 78. 63 For more information, see CRS Insight IN11118, U.S. Army Corps of Engineers: Section 7001 Report on Future Studies and Projects, by Anna E. Normand. 64 43 U.S.C. §390b; USACE, Policy for Conducting Civil Works Planning Studies, ER 1105-2-103, p. 77. 65 43 U.S.C. §390b(e). 66 This does not include such costs for projects in the explanatory statement funded from prior unobligated IIJA appropriations. 67 USACE, Fiscal Year 2025: Civil Works Budget of the U.S. Army Corps of Engineers, March 2024, p. 6, https://usace.contentdm.oclc.org/utils/getfile/collection/p16021coll6/id/2476. Congressional Research Service 26 Federally Supported Water Projects and Programs Statutory Authority Statutory authority is provided in the Water Supply Act of 1958 (Title III, 72 Stat. 320, as amended; 43 U.S.C. §390b),68 the Flood Control Act of 1944 (§6, 58 Stat. 890, as amended, 33 U.S.C. §708), and project-specific authorities in WRDAs or similar legislation. Environmental Infrastructure Assistance Project Purpose Since 1992, Congress has enacted more than 600 authorizations allowing USACE to provide designated communities, counties, and states with design and construction assistance for drinking water and wastewater infrastructure (including treatment and distribution/collection facilities), source water protection and development, and other nonfederal projects. This assistance is known as environmental infrastructure (EI) assistance.69 The authorizations of federal appropriations for these activities have varied widely, from $0.1 million for a water monitoring station to $1.1 billion for a seven-state EI program. Financing or Funding Mechanism Under most USACE EI assistance authorizations, federal assistance typically requires a 75% federal and 25% nonfederal cost share. Congress typically provides the federal portion in annual Energy and Water Development Appropriations acts.70 How USACE and nonfederal financing is managed varies according to the specifics of the authorization. USACE is authorized to perform design and/or construction work with appropriated funds and, generally for programmatic authorities, may use appropriated funds to reimburse nonfederal sponsors for work they perform. Eligibility Requirements Because EI assistance activities are not part of a national USACE program per se, there are no general eligibility criteria. Most USACE EI authorities specify a specific geographic location (e.g., a city, county, or state) and a type of project (e.g., municipal drinking water) as the principal eligibility requirements. Consequently, USACE evaluates an activity’s eligibility by identifying whether there is an authorization for the geographic area of the activity and whether the type of activity is eligible under that authorization. Based on a review of enacted legislation likely to include EI assistance authorities, CRS identified authorized EI assistance in at least 46 states, the District of Columbia, Guam, Puerto Rico, the U.S. Virgin Islands, and the Northern Mariana Islands. CRS did not identify authorities for EI assistance in Iowa, Maine, Nebraska, Rhode Island, and other U.S. territories. Because this assistance is not associated with traditional USACE water resources projects, it is not subject to USACE planning requirements (e.g., a benefit-cost analysis is not performed); however, other federal laws apply to EI assistance, including the National Environmental Policy Act (42 U.S.C. §§4321 et seq). 68 For information on USACE’s civil works program, see USACE, “Missions: Civil Works,” https://www.usace.army.mil/Missions/Civil-Works/. For more information on the process associated with USACE water resources projects, see CRS Report R47946, Process for U.S. Army Corps of Engineers (USACE) Projects, by Nicole T. Carter and Anna E. Normand. 69 For more information, see CRS Report R47162, Overview of U.S. Army Corps of Engineers Environmental Infrastructure (EI) Assistance, by Anna E. Normand. 70 In addition, the IIJA and American Relief Act (P.L. 118-158) provided appropriations for EI assistance. Congressional Research Service 27 Federally Supported Water Projects and Programs Recent Federal Funding Historically, only a portion of the authorized USACE EI activities have received appropriations. Congress typically funds EI assistance through USACE’s Construction account in Energy and Water Development and Related Agencies annual appropriations acts. For FY2026, the explanatory statement accompanying the Energy and Water Development and Related Agencies Appropriations Act, 2026 (Division B of P.L. 119-74) directed $344 million to EI assistance authorities. The explanatory statement also directed $14 million for EI assistance that USACE allocated to projects in a subsequent work plan.71 Presidential budget requests typically do not include funding for EI assistance, with an exception for FY2024. For FY2027, the President did not request funding for EI assistance.72 Statutory Authority Prior to 1992, USACE was generally not widely involved with municipal drinking water treatment and distribution and wastewater collection and treatment. The agency is now authorized to contribute to more than 600 EI projects and programs. A WRDA or similar legislation is the typical legislative vehicle for USACE authorizations. Beginning with WRDA 1992 (P.L. 102580), Congress has authorized USACE to assist local interests with planning, design, and construction assistance for EI projects. Subsequent USACE authorization acts have included new EI assistance activities and raised the authorized funding ceilings for previously authorized projects. Most recently, WRDA 2024 (Division A of P.L. 118-272) provided a combined increase in authorization of appropriations of $5.4 billion for these authorities. In WRDAs, Congress has also authorized various processes to deauthorize existing authorities meeting certain criteria.73 In two instances, these processes have resulted in the deauthorization of EI assistance authorities. Pursuant to Section 301 of WRDA 2020 (Division AA of P.L. 116-260; 33 U.S.C. §579d-2), as amended, USACE published on May 21, 2026, a Federal Register notice titled “Proposed Deauthorization of Water Resources Projects.”74 The accompanying list includes around 180 EI assistance authorities.75 71 USACE, Army Civil Works Program, FY2026 Work Plan—Construction, https://usace.contentdm.oclc.org/utils/ getfile/collection/p16021coll6/id/2575. 72 USACE, Fiscal Year 2027: Civil Works Budget of the U.S. Army Corps of Engineers, April 2026, https://usace.contentdm.oclc.org/utils/getfile/collection/p16021coll6/id/2574. 73 While EI assistance authorities have been deauthorized through processes established by Congress and implemented by the Secretary of the Army, CRS did not identify any enacted provisions where Congress in statute deauthorized specific EI assistance authorities. 74 USACE, “Proposed Deauthorization of Water Resources Projects,” 91 Federal Register 98, May 21, 2026. 75 USACE, Proposed List for Deauthorization Federal Register Docket ID No. COE-2026-0034, https://usace.contentdm.oclc.org/utils/getfile/collection/p16021coll5/id/38480. Although neither the statute nor the Federal Register is explicit that the projects on the final list are automatically deauthorized once the list is submitted to the House Committee on Transportation and Infrastructure and the Committee on Environment and Public Works and it is published in the Federal Register, that is a working assumption given no other guidance. Congressional Research Service 28 Federally Supported Water Projects and Programs Department of Agriculture Rural Utilities Service (Water and Waste Disposal Programs)76 The USDA Rural Utilities Service (RUS) administers a variety of water and waste disposal77 programs that provide grants, loans, loan guarantees, and technical assistance to support drinking water, sanitary sewer, and storm drainage facilities in rural communities. These programs help rural communities construct, repair, and expand their water and waste disposal systems. Technical assistance programs help rural communities identify solutions to water and waste disposal challenges they are facing. One way these programs support rural communities is helping them apply for state and federal grants and loans. In FY2025, RUS obligated $1.545 billion for 637 water and waste disposal projects.78 Program Purpose The RUS water and waste disposal programs support the development, storage, and treatment of drinking water and the disposal of wastewater in rural areas.79 Eligible projects can include drinking water facilities, sanitary sewers, and stormwater drainage and disposal facilities. Funds may be used for installation, repair, improvement, or expansion of rural water facilities, including costs of distribution lines and well-pumping facilities. USDA is required to use 3% to 5% of the water and waste grants appropriation to make grants to qualified nonprofits to provide technical assistance and training to help communities identify solutions to water and waste problems, prepare applications for grants and loans, and improve operation and maintenance of existing water and waste disposal facilities in rural areas.80 Financing or Funding Mechanism USDA supports water and waste disposal projects through direct loans, guaranteed loans, grants, and technical assistance. USDA provides loans and grants for water and waste disposal projects that are to serve the “most financially needy communities.”81 The Circuit Rider Program provides technical assistance to rural water systems that are experiencing day-to-day operational, financial, or management issues. Public bodies with legal authority to own and operate the water facility in question are eligible to receive technical assistance. USDA RUS has contracted with the National Rural Water Association to provide technical assistance through a network of state-based water experts known as “Circuit Riders.” The Emergency Community Water Assistance Program provides grants to eligible communities to help them prepare for, or recover from, an emergency that threatens the availability of safe, 76 This section was prepared by Lisa S. Benson, Specialist in Agricultural Policy, Resources, Science, and Industry Division. 77 The programs’ official titles contain “Waste Disposal,” but the vast majority of the waste disposal projects are for wastewater infrastructure. A small amount of funding, typically less than 1%, goes to technical assistance related to solid waste management, although Congress authorizes annual appropriations for solid waste management grants. 78 USDA, Office of Budget and Program Analysis, 2027 USDA Explanatory Notes—Rural Utilities Service, Table RUS-82 - 2025 Financial and Performance Data for WEP Programs (thousands of dollars), https://www.usda.gov/sites/ default/files/documents/FY-2027-Chapter-33-RUS.pdf. 79 7 U.S.C. §1926. 80 7 U.S.C. §1926(a)(14)(C), Rural Water and Wastewater Technical Assistance Training Programs. 81 7 C.F.R. §1780.2. Congressional Research Service 29 Federally Supported Water Projects and Programs reliable drinking water. Eligible entities include public bodies, nonprofit organizations, and federally recognized tribes. Emergencies include natural disasters such as droughts or hurricanes and man-made disasters such as chemical spills. A federal disaster declaration is not required. The Revolving Funds for Financing Water and Wastewater Projects Program (Revolving Fund Program) provides grants to nonprofit organizations and government entities to establish revolving loan funds that finance projects that improve water and waste disposal systems in rural areas. Eligible rural areas are areas with 10,000 or fewer residents. The Rural Decentralized Water Systems Grant Program provides grants to nonprofits and tribes to establish revolving loan funds for homeowners. Homeowners can use the loans to construct, refurbish, or service household water well and septic systems. Terms for the loans include a 1% fixed interest rate, a 20-year maximum term, and a $15,000 maximum loan per household. Homeowners need to be in rural areas, which are defined as areas or towns of 50,000 residents or fewer. The Water and Waste Disposal Loan and Grant Program provides loans and grants for projects that build or enhance clean and reliable drinking water systems, sanitary sewage disposal systems, and storm water drainage to households and businesses in eligible rural areas. Eligible rural areas are areas with 10,000 or fewer residents. The Water and Waste Disposal Loan Guarantee Program provides loan guarantees for projects that build or enhance clean and reliable drinking water systems, sanitary sewage disposal systems, and storm water drainage to households and businesses in eligible rural areas. Eligible rural areas are areas with 10,000 or fewer residents. RUS guarantees loans issued through eligible banks, credit unions, and other lenders so that these entities can issue loans to qualified borrowers. The Water and Waste Disposal Technical Assistance and Training Program provides grants to nonprofit organizations for projects that help local communities identify and evaluate water issues. Eligible rural areas are areas with 10,000 or fewer residents. Eligibility Requirements The entities eligible for funding differ by program. For most programs, eligible entities include public bodies (such as municipalities, counties, and other political subdivisions of a state), nonprofit organizations, and federally recognized tribes. To be eligible for assistance, the applicants must be unable to get financing for the proposed projects from their own resources or through commercial credit at reasonable rates and terms.82 Statutory and Regulatory Authority Statutory authority for the water and waste disposal loan and grant programs, water technical assistance, and other rural water assistance programs is Sections 306, 306A, and 306E of the Consolidated Farm and Rural Development Act, as amended (ConAct; P.L. 87-128, 7 U.S.C. §1926, 7 U.S.C. §1926a, 7 U.S.C. §1926e). Regulations for these programs are codified at Title 7, Parts 1779-1780, of the Code of Federal Regulations.83 82 7 C.F.R. §1780.7(d). 83 For additional information on RUS water and environmental programs, see USDA, “Water & Waste Disposal Loan & Grant Program,” https://www.rd.usda.gov/programs-services/water-waste-disposal-loan-grant-program. Congressional Research Service 30 Federally Supported Water Projects and Programs Recent Federal Funding Congress provided appropriations for FY2026 for the RUS water and waste disposal programs through the Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026 (Division B, P.L. 119-37). Congress provided the following funding for the RUS programs for FY2026: • • • • • • • Circuit Rider Program: $23.9 million; Emergency Community Water Assistance Grant Program: $7.0 million; Revolving Fund Program: $1.0 million; Rural Decentralized Water Systems Grant Program: $5.0 million; Water and Waste Disposal Loan and Grant Program: $140.0 million for competitive grants, $110.5 million for community project funding/congressionally directed spending (CPF/CDS), a loan subsidy of $47.6 million to support $1.0 billion in direct loan authority; Water and Waste Disposal Loan Guarantee Program: No loan subsidy needed to support $50.0 million in guaranteed loan authority; and Water and Waste Disposal Technical Assistance and Training Program: $35.0 million. For FY2027, the Administration requested the following funding for the RUS water and waste disposal programs: • • • • • • • Circuit Rider Program: $24.0 million; Emergency Community Water Assistance Grant Program: $0; Revolving Fund Program: $0; Rural Decentralized Water Systems Grant Program: $0; Water and Waste Disposal Loan and Grant Program: $100.0 million for competitive grants and $58 million loan subsidy to support $816.9 million in direct loan authority; Water and Waste Disposal Loan Guarantee Program: No loan subsidy needed to support $50.0 million in guaranteed loan authority; and Water and Waste Disposal Technical Assistance and Training Program: $0. Natural Resources Conservation Service84 The USDA provides assistance for watershed activities under four closely related authorities that are administered by the Natural Resources Conservation Service (NRCS). The Watershed and Flood Prevention Operations Program (WFPO) consists of two authorities—P.L. 83-566 and P.L. 78-534. Projects funded under these authorities are referred to as “P.L. 566” and “P.L. 534” projects, respectively. These authorize NRCS to provide technical and financial assistance to state and local organizations to plan and install measures to prevent erosion, sedimentation, and flood damage and to conserve, develop, and utilize land and water resources. Dams constructed under the WFPO program may also be eligible to receive assistance under the Small Watershed 84 This section was prepared by Megan Stubbs, Specialist in Agricultural Conservation and Natural Resources Policy, Resources, Science, and Industry Division. Congressional Research Service 31 Federally Supported Water Projects and Programs Rehabilitation Program. The fourth authority is a watershed emergency program that is not discussed in this report.85 Watershed and Flood Prevention Operations The WFPO program consists of projects built under two authorities—the Watershed Protection and Flood Prevention Act of 1954 (P.L. 83-566) and the Flood Control Act of 1944 (P.L. 78-534). The majority of the projects have been built pursuant to the authority of P.L. 83-566 (and are referred to as “P.L. 566” projects). This law authorizes the chief of the NRCS to approve construction of smaller projects (defined below), while statute indicates that appropriations for larger projects shall not be made unless plans have received congressional committee approval. Eleven specific projects were authorized by P.L. 78-534 (referred to as “P.L. 534” projects). They are much larger and more expensive than P.L. 566 projects. In total, the P.L. 534 projects encompass almost 37.9 million acres and are divided into component projects in sub-watersheds. As of June 2026, there had been a total of 2,530 WFPO projects in all 50 states and Puerto Rico.86 Program Purpose The purpose of the WFPO program is to provide technical and financial assistance to states and local organizations to plan and install watershed projects. Both P.L. 566 and P.L. 534 projects have similar objectives and are implemented following similar procedures. Both project types fund land treatment and nonstructural and structural facilities for flood prevention, erosion reduction, agricultural water management, public recreation development, fish and wildlife habitat development, and municipal or industrial water supplies. Structural measures can include dams, levees, canals, and pumping stations. Local sponsors agree to operate and maintain completed projects. Financing or Funding Mechanism USDA provides partial project grants plus technical advisory services. Financing for water projects under the WFPO program varies depending on project purposes. The federal government pays all costs related to construction for flood control purposes only. Costs for nonagricultural water supply must be repaid by local organizations. However, up to 50% of costs for land, easements, and rights-of-way allocated to public fish and wildlife and recreational developments may be paid with program funds. Additionally, sponsors may apply for RUS Water and Waste Program loans to finance the local share of project costs. Participating state and local organizations pay all operation and maintenance costs.87 Eligibility Requirements P.L. 566 projects are sometimes referred to as “small watershed projects” because no project may exceed 250,000 acres and no structure may exceed more than 12,500 acre-feet of floodwater 85 The Emergency Watershed Protection (EWP) program is used to restore the natural functions of a watershed after a natural disaster has occurred and to minimize the risks to property and life posed by floods by purchasing easements on flood plains. For more information on the EWP program, see CRS Report R42854, Emergency Assistance for Agricultural Land Rehabilitation, by Megan Stubbs. 86 Personal communication with USDA, Office of Congressional Relations, June 1, 2026. 87 For additional information on financing requirements, see USDA, NRCS, “Watershed Programs—Sponsor Guide,” https://www.nrcs.usda.gov/sites/default/files/2022-08/Sponsor%20Guide.pdf. Congressional Research Service 32 Federally Supported Water Projects and Programs detention capacity or 25,000 acre-feet of total capacity.88 For projects that need an estimated federal contribution of more than $25.0 million for construction or include a storage structure with a capacity in excess of 2,500 acre-feet, the statute includes a provision that no appropriations are to be provided unless the plan is approved by the Senate and House Agriculture Committees.89 Statute states that for a single structure with a capacity in excess of 4,000 acre-feet, no appropriations are to be provided unless the plan (including the plan for the structure) is approved by the Senate Environment and Public Works Committee and the House Transportation and Infrastructure Committee.90 There are no population or community income-level limits on applications for P.L. 566 projects, but at least 20% of the total benefits of the project must directly relate to agriculture (including rural communities).91 Recent Federal Funding The FY2026 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act (P.L. 119-37, Division B, Title II) provided WFPO with $50.0 million. Of the $50.0 million, $32.4 million (64.8%) is directed to CPF/CDS projects. Of the remaining funds, $10.0 million is directed to projects that are multibenefit irrigation modernization projects and activities that increase fish or wildlife habitat, reduce drought impact, improve water quality or instream flow, or provide off-channel renewable energy production. For FY2027, the President’s budget request did not include funding for the WFPO program.92 In addition to discretionary funding through appropriations, the 2018 farm bill permanently authorized $50.0 million annually from mandatory sources.93 In 2025, the budget reconciliation act (P.L. 119-21) increased the mandatory funding authority to $150.0 million annually. This mandatory funding will be available unless otherwise amended by Congress. Mandatory funds are authorized for P.L. 566 projects as well as rehabilitation work under the Small Watershed Rehabilitation Program. Statutory and Regulatory Authorities The WFPO program consists of two authorities: the Flood Control Act of 1944, P.L. 78-534, as amended, 58 Stat. 905 (33 U.S.C. §701b-1); and the Watershed Protection and Flood Prevention Act of 1954, P.L. 83-566, as amended, 68 Stat. 666 (16 U.S.C. §§1001-1008). Regulations are codified at Title 7, Part 622, of the Code of Federal Regulations.94 88 The enacted FY2026 appropriation included a policy provision that waives the 250,000-acre project limit when the project’s primary purpose is something other than flood prevention (including structural and land treatment measures). 89 16 U.S.C. §1002. 90 16 U.S.C. §1002. 91 16 U.S.C. §1002. 92 USDA, 2027 USDA Explanatory Notes—Natural Resources Conservation Service, https://www.obpa.usda.gov/ explan_notes.html. 93 The 2018 farm bill authorizes mandatory funding from the Commodity Credit Corporation, a government-owned entity that finances programs supporting U.S. agriculture. For more information, see CRS Report R44606, The Commodity Credit Corporation (CCC), by Megan Stubbs. 94 For information on the program, see NRCS, “Watershed and Flood Prevention Operations (WFPO) Program,” https://www.nrcs.usda.gov/programs-initiatives/watershed-and-flood-prevention-operations-wfpo-program. Congressional Research Service 33 Federally Supported Water Projects and Programs Small Watershed Rehabilitation Some of the oldest P.L. 566 projects that have exceeded their design life (dams were constructed starting in 1948) need rehabilitation work to continue to protect public health and safety by reducing any possibility of dam failure and to meet changing resource needs. By the end of 2025, 6,782 watershed dams had reached the end of their designed lifespans. In response to this concern, Congress created a dam rehabilitation program, known as the Small Watershed Rehabilitation Program, in Section 313 of the Grain Standards and Warehouse Improvement Act of 2000 (P.L. 106-472), which revised the WFPO program. In FY2025, NRCS allocated over $30 million to 112 dam projects. Of these projects, 50 are in the assessment phase, 19 are in the planning phase, 5 are in the design phase, and 18 are in the construction phase.95 Program Purpose The purpose of rehabilitation is to extend the service life of the dams and bring them into compliance with applicable safety and performance standards or to decommission the dams, so they no longer pose a threat to life and property. Financing or Funding Mechanism Partial project grants, plus provision of technical advisory services, are provided. NRCS may provide 65% of the total rehabilitation costs but no more than 100% of the actual construction cost and is prohibited from funding operation and maintenance expense. Rehabilitation projects also provide an opportunity to modify projects to provide additional benefits, including municipal water supplies. Local watershed project sponsors provide 35% of the cost of a rehabilitation project and obtain needed land rights and permits. The source of these funds varies from state to state and may include bonds, local taxing authority, state appropriations, or in-kind technical services.96 Eligibility Requirements Only dams constructed under the P.L. 83-566 authority, the Resource Conservation and Development program, and pilot watershed projects from 1953 are eligible for assistance under the Small Watershed Rehabilitation Program.97 Recent Federal Funding The Small Watershed Rehabilitation Program has discretionary funding authority of up to $85.0 million annually through the end of FY2026.98 Congress appropriated $3.0 million for FY2026, $2.0 million more than provided in FY2025. 95 Personal communication with USDA, Office of Congressional Relations, June 1, 2026. 96 For additional information on financing requirements, see USDA, NRCS, “Watershed Programs—Sponsor Guide,” https://www.nrcs.usda.gov/sites/default/files/2022-08/Sponsor%20Guide.pdf. 97 16 U.S.C. §1012. 98 The program is authorized through omnibus farm bills, most recently the 2018 farm bill (P.L. 115-334). Congress enacted three one-year extensions (P.L. 118-22, Division B, §102; P.L. 118-158, Division D, §4101; and P.L. 119-37, Division E, §5002) of farm bill authorizations through FY2026 and crop year 2026, which includes the Small Watershed Rehabilitation Program’s discretionary funding authority. For additional information on farm bill expiration and extension, see CRS In Focus IF12047, Farm Bill Primer: Overview and Status, by Megan Stubbs and Jim Monke. Congressional Research Service 34 Federally Supported Water Projects and Programs For FY2027, the President’s budget request did not include funds for the program, stating that mandatory funding is available to support watershed projects.99 The $150.0 million in annual mandatory funding authorized for WFPO may also be used for rehabilitation work under the Small Watershed Rehabilitation Program.100 Statutory and Regulatory Authorities The Small Watershed Rehabilitation Program is authorized by the Watershed Protection and Flood Prevention Act of 1954, P.L. 83-566, as amended by Section 313 of the Grain Standards and Warehouse Improvement Act of 2000, P.L. 106-472, 114 Stat. 2077 (16 U.S.C. §1012). Regulations are codified at Title 7, Part 622, of the Code of Federal Regulations.101 Environmental Protection Agency Clean Water State Revolving Fund Loan Program102 In 1987, Congress amended the Clean Water Act (CWA)103 to establish the Clean Water State Revolving Fund (CWSRF) program.104 The CWSRF program is a federal and state partnership: all 50 states, plus Puerto Rico, implement their own program.105 EPA receives annual appropriations to support the CWSRF program and distributes grants to the states based on a CWA statutory formula.106 States provide matching funds equal to 20% of the federal grant to capitalize their revolving loan funds and use their funds primarily to provide loans to cities and other eligible recipients. Over the long term, the loan programs are intended to be sustained through repayment of loans to states, thus creating a continuing source of assistance for other communities. According to the most recent estimate by EPA and states (published in 2024 and based on data from 2022), an additional $630.1 billion nationwide is needed over the next 20 years for all types of projects eligible for funding through the CWSRF program.107 99 2027 USDA Explanatory Notes—Natural Resources Conservation Service. 100 For additional information, see CRS Report R45698, Agricultural Conservation in the 2018 Farm Bill, by Megan Stubbs. 101 For information on the program, see NRCS, “Watershed Rehabilitation Program,” https://www.nrcs.usda.gov/ programs-initiatives/watershed-rehabilitation. 102 This section was prepared by Jonathan L. Ramseur, Specialist in Environmental Policy, Resources, Science, and Industry Division. 103 Although the statute is commonly referred to as the Clean Water Act, the official statutory name is the Federal Water Pollution Control Act (P.L. 92-500), as amended, codified at Title 33, Sections 1251 et seq., of the U.S. Code. 104 Prior to 1989 (when the CWSRF program became effective), EPA states used their annual allotment to make grants to cities and other eligible recipients. 105 U.S. territories, Indian tribes, and the District of Columbia receive grants from EPA under separate CWA authorities. 106 For more information, see CRS Report RL31073, Allocation of Wastewater Treatment Assistance: Background and Formula History, by Jonathan L. Ramseur. 107 EPA, 2022 Clean Watersheds Needs Survey, 2024, https://www.epa.gov/cwns/clean-watersheds-needs-surveycwns-2022-report-and-data. The previous survey (issued in 2016 and based on 2012 data) estimated needs of $271.0 billion over an analogous time period. See EPA, Clean Watersheds Needs Survey 2012, 2016, https://www.epa.gov/ cwns/clean-watersheds-needs-survey-cwns-past-reports-and-data. Congressional Research Service 35 Federally Supported Water Projects and Programs Program Purpose The CWSRF program provides assistance in constructing and upgrading publicly owned municipal wastewater treatment plants and related equipment (including stormwater infrastructure), implementing nonpoint pollution management programs, developing and implementing management plans under the National Estuary Program, and supporting a range of other eligible activities that were added to the program in 2014 and in subsequent amendments. Financing or Funding Mechanism EPA grants (from appropriated funds) and state matching funds help capitalize state CWSRF programs. These programs may provide seven general types of financial assistance: making loans; buying or refinancing existing local debt obligations; guaranteeing or purchasing insurance for local debt obligations [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/crs%3AR46471. Public record. Not legal advice.