Sponsors (3)
The bill directs predictable federal dollars and broader eligibility toward large and natural water‑storage and recharge projects to boost drought resilience and geographic equity, but raises federal spending and budget exposure while risking underfunding of many local projects and introducing administrative and allocation tradeoffs.
State and local water agencies, and rural communities, gain expanded eligibility to federal Reclamation programs so more water-infrastructure and sediment/flood-management projects across additional Reclamation States can receive federal support, increasing local water reliability and flood risk mitigation.
State and local water agencies can construct much larger groundwater recharge projects (up to 150,000 acre-feet/year average), enabling materially greater long-term storage and drought resilience where implemented.
The bill creates predictable, dedicated federal grant funding streams (combined: $20 million/year for large recharge grants FY2027–2033 and $15 million/year for watershed natural-storage grants FY2027–2031), giving sponsors recurring federal dollars to plan and pursue storage and recharge projects.
Taxpayers and federal budgets face increased outlays because the bill expands eligibility, creates new non‑reimbursable grants, and establishes dedicated funding streams, raising long-term federal spending commitments.
State and local sponsors will likely find the available federal funding (the $20M and $15M annual streams) modest relative to the capital cost of large recharge and storage projects, so many projects may remain unfunded or require substantial additional state/local funding.
Expanding eligibility to very large recharge projects and concentrating grant dollars may direct funding toward a few large projects and away from smaller local projects, reducing support available for numerous community-scale needs.
Based on analysis of 4 sections of legislative text.
Expands Reclamation grant/assistance eligibility for storage, groundwater recharge, and nature-based retention projects and authorizes annual grant funding for FY2027–FY2033.
Introduced January 29, 2026 by Ruben Gallego · Last progress January 29, 2026
Authorizes expanded Interior/Water Bureau funding and new grant programs to boost water storage, groundwater recharge, and nature-based retention projects across Reclamation States. It raises size caps for recharge projects, requires geographic distribution of awards across multiple Reclamation States, and adds annual authorizations for competitive grants for small water storage/groundwater projects and for natural water retention projects. The bill also makes two named feasibility-study projects eligible for construction funding under existing construction rules, allows grants to cover up to 90% of project costs (generally nonreimbursable), and includes provisions preserving existing State and Federal water law and water rights.