House Appropriations Committees Release Draft 2026 Energy and Water Development Spending Bills

NWC members,

With only a few legislative days remaining before Congress adjourns for the August recess, the FY2026 appropriations process is moving forward quickly. this week, House appropriators released several key draft spending bills, including the Energy and Water Development, Transportation, Housing and Urban Development (T-HUD; markup July 14), and Interior and Environment (subcommittee markup July 15).

The House has just 8 legislative days remaining before August recess, while the Senate has 15 days. Looking ahead, the House is scheduled to be in session for only 22 more days before the fiscal year ends on September 30. The Senate is scheduled for 31.

Later today, the House Energy and Water Appropriations Subcommittee is scheduled to take up its draft bill. A summary of the House version of the Energy and Water Development bill is provided below.

Draft House Energy and Water Bill Released YESTERDAY, Subcommittee Markup Today

On July 13, the House Appropriations Committee released the draft fiscal year (FY) 2026 Energy and Water Development Appropriations bill. The House Subcommittee on Energy and Water Development is scheduled to hold its markup of the bill today, Monday, July 14, at 6:00 p.m. Eastern Time.

The bill includes funding and policy provisions for the U.S. Army Corps of Engineers (USACE), Bureau of Reclamation, and Department of Energy (DOE). Below are key highlights relevant to NWC members – including funding comparisons to FY 2025 enacted levels.

FY2026 U.S. Army Corps of Engineers – Civil Works Accounts

Total Funding: $9.57 billion (FY 2026 Draft) | ~$8.6 billion (FY 2025 Enacted)

  • Construction: $2.55 billion (FY2025 Enacted: $1.85 billion)
  • Investigations: $200 million (FY2025 Enacted: $143 million)
  • Operations and Maintenance (O&M): $6.14 billion (FY2025 Enacted: $ 5.55 billion)
  • Mississippi River and Tributaries (MR&T): $490 million (FY2025 Enacted: $368 million)
  • Regulatory Program: $221 million (FY2025 Enacted: $221 million)
  • Flood Control and Coastal Emergencies: $40 million (FY2025 Enacted: $35 million)
  • General Expenses (Headquarters/Admin): $225 million (FY2025 Enacted: $216 million)
  • Office of the Assistant Secretary of the Army for Civil Works: $6 million (FY2025 Enacted: $5 million)

Highlights from USACE section:

  • The Construction account includes $200 million for 72 Congressionally Directed Spending (earmarks) for Member-prioritized projects.
  • Maintains the 35 percent cost-share from the Inland Waterways Trust Fund
  • Provides $3.38 billion from the Harbor Maintenance Trust Fund within O&M
  • Allocates $40 million for federal dredge replacement 
  • Sets aside $62 million from the general fund for WRRDA 2014 Section 2106(c) to support small, low-use, or underserved harbors and navigation projects.
  • Requires submission of a detailed work plan within 60 days of enactment, and prohibits deviation once approved. This clause prevents the Corps from adding new projects not included in the plan, shifting funding between projects (even within the same account), changing the scope, priority or amount allocated for any project, and using reprograming authority to reallocate funds from work plan items to other activities.

Policy Riders and Program Directives

  • Section 104 – Authorizes transfer of up to $8.73 million from USACE to the U.S. Fish and Wildlife Service for fish and wildlife mitigation associated with civil works projects.
  • Section 105 – Prohibits open-lake placement of dredged material in Lake Erie unless the placement is approved under a state water quality certification.
  • Section 106 – Prohibits the Corps from conducting any water supply reallocation studies at Wolf Creek Dam (Lake Cumberland, KY).
  • Section 108 – Ensures lawful firearm possession is permitted at USACE-managed recreation areas, consistent with state law.
  • Section 109 – Prohibits use of funds to implement Section 370 of Public Law 116–283 (related to NEPA reforms and project delivery changes).
  • Reprogramming Control – Reinforces prior approval and dollar cap restrictions on USACE fund transfers, maintaining Congressional oversight.

FY2026 Bureau of Reclamation  

Total Funding: $1.71 billion (FY2026 Draft) | (FY2025 Enacted: $1.86 Billion)

  • Upper Colorado River Basin fund: $23.8 million
  • Lower Colorado River Basin Development Fund: $7.679 million
  • San Gabriel Basin Restoration Fund: $3.237 million
  • Central Valley Project Restoration Fund: Such sums as collected (FY2025 Enacted: $55.6 million)
  • California Bay-Delta Restoration: $32 million (FY2025 Enacted: $33 million)
  • Policy and Administration: $64 million (FY2025 Enacted: $66 million)

Highlights from Bureau of Reclamation Section:

  • Extends WIIN Act water storage authorization deadlines: Feasibility studies through 2027; Construction through 2034.
  • Raises spending caps: Title XVI Water Reuse Projects to $177.5 million and desalination projects to $106.5 million
  • Increases Emergency Drought Response authority to $130 million

Policy Riders and Program Directives – Bureau of Reclamation

  • Section 201: Core funding section for Water and Related Resources that authorizes infrastructure planning, O&M, water conservation, and environmental programs and has permits transfers of up to $500,000 between project components.
  • Section 208: Requires a report to Congress within 90 days on water marketing efforts, drought response activities, and implementation of obstacles or delays.
  • Section 209: Prohibits federal permitting requirements for groundwater recharge projects conducted by state/local entities and aims to preserve state control over aquifer recharge initiatives.
  • Section 204: Requires adherence to accessibility standards (e.g., closed captioning for public communication systems)
  • Section 207: Allows interagency transfer of funds to U.S. Fish and Wildlife Service for project-specific environmental mitigation
  • Section 210: Allows prior-year funding balances to remain available for construction and pre-construction activities related to authorized rural water projects