DROUGHT Act of 2026

Summary#

This bill amends the Water Infrastructure Finance and Innovation Act of 2014. It allows certain water projects in drought-impacted or low-income areas, or projects of regional or national importance, to receive up to 90% federal assistance. The Secretary or Administrator must prioritize financing for these "covered projects."

A "covered project" under the bill means a project described in section 5026(6) or (7) that also meets at least one of these tests:

  • It is located in a State that was at D2 (severe drought) or worse on the U.S. Drought Monitor for at least 4 weeks in the 5 years before funding, or in a county where the Governor declared a drought emergency during that period;
  • It serves an area where the average household income is at or below 200% of the Census poverty threshold, or the area meets a State affordability test under the Safe Drinking Water Act or the Clean Water Act; or
  • The Secretary or Administrator designates it as regionally or nationally significant because it demonstrably increases drinking water supply or reliability, enhances water reuse or recycling, reduces regional water use, lowers ratepayer costs, or provides substantial public health or environmental benefits.

What it means for you#

If your community or utility applies for this program and meets the bill's criteria, federal support for an eligible project could cover up to 90% of the project cost. Projects that help areas with severe drought, low incomes, or that offer broad regional benefits are prioritized. State affordability standards and drought designations affect who qualifies.

Expenses#

The bill changes the maximum federal share for covered projects to 90 percent of total project costs. No publicly available information on the total federal cost, budgetary offsets, or the number of projects expected to receive this higher share.

Proponents' View#

Proponents argue the change targets more federal help to areas with severe drought and to projects that increase water supply or reuse, reduce water use, lower costs for ratepayers, or provide public health or environmental benefits. They support prioritizing financing for projects that meet those goals and that serve low-income or drought-impacted communities.

Opponents' View#

No publicly available information.