NWC NEWS ALERT (April 3, 2026)

PRESIDENT’S FY2027 BUDGET RELEASED

On April 3, the White House released the full FY2027 budget proposal package, including the main Budget of the U.S. Government volume, Analytical Perspectives, and the Appendix. Together, these documents outline the Administration’s priorities, provide summary tables and economic analysis, and include detailed program and appropriation account information for Federal agencies.

NWC is continuing to analyze the FY2027 budget. Below are some initial observations on high-level funding numbers, including for the U.S. Army Corps of Engineers. As additional information becomes available, NWC will provide a deeper dive into the President’s budget request and its implications for water resources priorities.

FY2027 on Initial Glance 

The FY2027 request proposes a sharp shift in federal spending priorities. The Director of the Office of Management and Budget (OMB) states that the budget proposes a 10 percent cut compared to FY2026 non-defense levels while requesting a $1.5 trillion increase for national defense.

Specifically looking at programs of interest to NWC members, the budget proposes significant reductions across core water infrastructure programs. At EPA, the State Revolving Funds are proposed at $305 million combined in FY2027, including $155 million for the Clean Water State Revolving Fund (CWSRF) and $150 million for the Drinking Water State Revolving Fund (DWSRF). This represents a reduction from FY2026 enacted levels of $746.1 million for the CWSRF and $410.7 million for the DWSRF. The budget also proposes eliminating WaterSMART grants for ecosystem restoration, climate studies, and water recycling. Furthermore, under the Department of Homeland Security, the budget proposes a $1.3 billion cut to FEMA’s non-disaster grant programs, as well as a $707 million cut to the Cybersecurity and Infrastructure Security Agency.

The budget also contains several policy and waterways-related proposals relevant to NWC members.

The President’s budget proposal:

  • Consolidates the Department of Interior’s Fish and Wildlife Service’s oversight of the Endangered Species Act and NOAA’s National Marine Fisheries Service’s management of the Marine Mammal Protect Act permitting functions within the Department of the Interior;
  • Condenses federal wildfire prevention and response activities within the U.S. Wildland Fire Service;
  • Proposes a new Maritime Security Trust Fund;
  • Provides $450 million for the Port Infrastructure Development Program, and;
  • Dedicates $30 million to a Center of Excellence for Domestic Maritime Workforce Training and Education.

The President’s budget also proposes a plus-up for the U.S. Coast Guard, stating that Coast Guard operations would receive a $12.5 billion increase overall.

U.S. Army Corps of Engineers FY2027 Budget Proposal 

For the U.S. Army Corps of Engineers, the FY2027 President’s budget proposes significant reductions across the core Civil Works accounts, while also making one of its biggest structural changes by moving district and field office salaries, overhead, and related expenses out of the major business lines and into a new District Salaries and Expenses account.

The USACE civil works FY2027 proposal at-a-glance:

  • Investigations: $37.95 million
  • Construction: $1.166 billion
  • Operation and Maintenance (O&M): $759.7 million
  • Mississippi River and Tributaries (MR&T) at $156.3 million
  • Regulatory at $223 million
  • Flood Control and Coastal Emergencies at $40 million
  • Expenses:  $218 million
  • District Salaries and Expenses: $2.429 billion

The new District Salaries and Expenses account would cover salaries, overhead, and related expenses for district and field offices carrying out work in Investigations, Construction, Mississippi River and Tributaries, Operation and Maintenance, the Harbor Maintenance Trust Fund, and the Inland Waterways Trust Fund. The budget also states that this new account would not affect cost-sharing responsibilities of non-Federal interests or other terms and conditions for water resources development studies, projects, and programs.

In addition, under Construction, the budget proposes to encourage greater non-Federal participation by eliminating the cap on the number of projects in the pilot program established under Section 1043(b). For the Harbor Maintenance Trust Fund, the budget proposes $1.393 billion, of which $1.355 billion would support eligible operation and maintenance costs for coastal harbors and channels and inland harbors, and $5.975 million would cover the Federal share of eligible operation and maintenance costs for inland harbors on the Mississippi River. For the Inland Waterways Trust Fund, the budget proposes $33.44 million.

What the President’s Budget Is and Is Not

The President’s budget is not law. It is the Administration’s proposal to Congress and serves as the opening step in the annual appropriations process. It signals policy direction and funding priorities, but Congress will ultimately determine final funding levels through the appropriations bills. Even so, the President’s request remains an important early marker for agencies, appropriators, and stakeholders as the FY2027 process begins.

What Happens Next 

Congressional appropriators will now begin reviewing the request, holding hearings with agency officials, and drafting annual spending bills for the fiscal year that begins Oct. 1. As always, the budget sets the starting point for the appropriations process, but Congress will write the final bills. For NWC members, this release provides the first full look at how the Administration is proposing to fund water resources, navigation, ports, flood control, water supply, and related infrastructure programs in FY2027.

NWC will continue monitoring the budget rollout and provide updates on items affecting water resources, navigation, ports, flood control, water supply, and other infrastructure priorities.

Resources 

Julie A. Ufner

President and CEO
National Waterways Conference (NWC)
703-203-4795 (cell)
waterways.org