The bill provides a clear, transparent path and federal support to study and potentially deliver Missouri River water to western South Dakota communities, but shifts substantial planning and matching costs to local partners, concentrates project authority in a single nonprofit, and imposes time and funding constraints that could delay or prevent implementation.
Rural communities in western South Dakota gain a clear, designated project pathway plus a federally funded feasibility study to evaluate bringing municipal, rural, and industrial water from the Missouri River, improving the likelihood of a new water supply.
Assigning Western Dakota Regional Water System, Inc. as the non‑Federal project entity clarifies leadership and responsibility, which should speed coordination with federal agencies and project delivery.
Local, State, Tribal, and regional authorities will be consulted and the feasibility study results will be publicly released, improving coordination, transparency, and stakeholder input before any construction decisions.
Local governments and rural communities could be unable to meet the minimum 25% non‑Federal construction share, which could delay or prevent the project and leave communities without improved water service.
Non‑Federal entities (including small local or Tribal governments) may face significant financial strain because federal law limits the Federal share of the feasibility study to 50%, requiring local matching funds that may be hard to raise.
Taxpayers could fund up to $10 million for a feasibility study that may not lead to construction, representing federal spending with uncertain returns.
Based on analysis of 3 sections of legislative text.
Directs Interior to study a Missouri River water supply project for western South Dakota, limits federal study share to 50%, and authorizes $10 million for the study.
Introduced January 29, 2026 by John Thune · Last progress January 29, 2026
Requires the Secretary of the Interior to work with the Western Dakota Regional Water System (a nonprofit) to carry out a feasibility study and produce a feasibility report for a rural water supply project that would bring municipal, rural, and industrial water from the Missouri River to western South Dakota. The federal government may pay up to 50% of study costs, the non‑Federal partner must enter a cost‑sharing agreement, and up to $10,000,000 is authorized to carry out the study; the authority sunsets after 10 years and the Secretary must publish the report for Congress.