Sponsor
Dustin Johnson
Representative · R-SD
The bill advances a federally funded feasibility study that could enable long‑term regional water supplies for rural communities, but it shifts significant cost and matching responsibility to local partners, exposes taxpayers to study costs that may not yield construction, and may be constrained by funding caps and a 10‑year sunset that could delay or derail outcomes.
Rural and municipal communities in the Dakota Mainstem/IA‑MN‑SD service area could gain access to a more stable municipal, rural, and industrial water supply if the project is authorized and built.
The federal authorization provides up to $10 million in federal funding for a Reclamation feasibility study, lowering upfront planning costs for non‑Federal partners and enabling more detailed project development.
The bill requires studies to follow Reclamation feasibility standards and provides technical/planning and financial analysis support, improving study quality, regulatory alignment, and local budgeting for a potential construction share.
Local governments, tribal entities, the nonprofit project entity, and water users face significant cost‑share requirements (25%+ for construction and up to half of study costs), which could strain budgets, increase local expenditures or debt, and limit participation by cash‑strapped communities.
Study uncertainties, a 10‑year sunset on authorization, and potential cost/environmental unknowns risk delaying or interrupting planning and could prolong existing water supply challenges for communities.
Taxpayers would fund up to $10 million for a feasibility study that may not lead to construction, representing an opportunity cost for other priorities.
Based on analysis of 3 sections of legislative text.
Authorizes Interior to study feasibility of three regional rural water projects, recommends at least 25% non‑Federal cost share, limits Federal study share to 50%, and authorizes up to $10M per study.
Representative · R-SD
Official title: To direct the Secretary of the Interior to conduct studies to determine the feasibility of constructing projects to supply municipal, rural, and industrial water in certain parts of the Missouri River basin, and for other purposes.
Introduced July 20, 2026 by Dustin Johnson · Last progress July 20, 2026
Authorizes the Interior Department to carry out feasibility studies for three regional rural water supply projects serving parts of South Dakota, Iowa, Minnesota, and Nebraska. Each study must evaluate whether to authorize construction, recommend a minimum non‑Federal construction cost share of 25% (with the final share set by a financial capability analysis), limit the Federal share of study costs to no more than 50%, and may be supported by up to $10 million in federal funds per study. The studies must be done in coordination with specified non‑Federal regional water system entities, include consultation with federal, state, tribal, regional, and local authorities, and the authority to carry out each study expires 10 years after enactment.