Urban Canal Modernization Act

This measure updates federal law so the Interior Department can step in to fix risky “urban canals of concern.” It lets the Department, or the local group that runs the canal, do major repair and safety work when needed, following existing guidelines . It also cleans up some definitions and wording in the earlier law to make it clearer .

Local canal operators would not have to pay for everything at once. The federal government would cover 35% of these special repair costs without payback. The rest would be fronted by the federal government and then repaid by the local operator over time. Money that must be repaid can still count as “non‑federal” when matching other federal grants, making it easier to pull together funding .

• Who is affected: Communities near aging or risky canals in cities; local canal operators; Interior Department .
• What changes: Allows major repair work on urban canals of concern; clarifies definitions; sets cost‑sharing rules .
• Cost share: 35% paid by the federal government with no repayment; the rest advanced by the federal government and repaid by the local operator; repayable funds still count as non‑federal for matching grants .