SENATE FY2026 ENERGY AND WATER APPROPRIATIONS BILL

November 25, 2025

NWC members,

As we head into this season of thanks and gather with family and friends, I want to take a moment to thank you for your continued support of the National Waterways Conference. Your commitment keeps our work moving forward and strengthens the voice of every community that depends on reliable water resources, safe navigation, and resilient infrastructure.

Thanksgiving has always been about connection. In many ways, our waterways tell that same story. They connect towns, economies, ecosystems, and people. They remind us that nothing stands alone and that our shared efforts matter.

On behalf of NWC, thank you for being part of this community and for the work you do every day.

Wishing you and your loved ones a very happy Thanksgiving.

Best,

Julie and NWC team

SENATE APPROPRIATIONS COMMITTEE RELEASES FY 2026 ENERGY AND WATER BILL

 On November 24, the Senate Appropriations Committee released its Fiscal Year 2026 Energy and Water Development bill, proposing total funding of $65.626 billion for the fiscal year. The bill provides $9.79 billion for the U.S. Army Corps of Engineers and $1.577 billion for the Bureau of Reclamation. The Department of Energy would receive $49.57 billion under the Senate proposal.

The bill includes reductions across several energy-focused accounts. Energy Efficiency and Renewable Energy would receive $2.2 billion, which is $1.2 billion below the current level. Science programs would receive $8 billion, and ARPA E would receive $414 million. The National Nuclear Security Administration would receive slightly more than $25 billion, an increase of $878.4 million.

This release comes as Congress continues to work through the fiscal year 2026 appropriations backlog. The federal government shut down on October 1 after Congress failed to enact any of the 12 annual funding bills or pass a continuing resolution. The shutdown lasted 43 days. Since reopening, Congress has enacted three fiscal year 2026 bills, leaving nine still outstanding. The Senate is assembling a broader package of appropriations bills, and with the release of both the Energy and Water bill and the Financial Services bill, that package could expand to six or more. It remains unclear whether the Energy and Water bill will move within that package or follow its own track.

Regardless of how the Senate proceeds, the bill must ultimately be conferenced with the House FY2026 Energy and Water version, and significant funding differences will need to be resolved before final passage.

USACE highlights:

  • Senate rejects all USACE budget structure changes: The Senate explicitly rejects the Administration’s proposal to restructure USACE accounts, including creating a standalone Harbor Maintenance Trust Fund account, consolidating O& M activities into national programs, and moving dam safety work to different accounts.
  • Senate includes congressionally directed spending (earmarks): The Senate report includes congressionally directed spending for USACE projects, all of which are authorized and requested by local sponsors. The full table of CDS items is included in the report.
  • No additional new starts beyond those in the President’s Budget: The committee only includes the new starts that were in the budget request for Investigations, Construction, and Mississippi River and Tributaries. No additional new starts are provided.
  • Strong restrictions on USACE work plan deviations: The Senate requires that once USACE submits the work plan, it cannot deviate from it. That prohibition applies to Investigations, PED, Construction, MR&T, and O&M. This mirrors the House bill’s restrictions but appears across multiple accounts in the Senate bill text.
  • Planning, Engineering, and Design account created to improve project design maturity:

The Senate pushes USACE to complete Class 3 cost estimates before beginning construction to reduce cost overruns and delays.

  • Senate expresses concern with USACE cost estimates and design quality: The report criticizes repeated cost overruns and directs more rigorous design and modeling before advancing projects to construction.

Resources:

  • Senate FY2026 Energy and Water bill text
  • Senate FY2026 Energy and Water bill report
    FY 2026 ENERGY AND WATER FUNDING COMPARISONS (in millions)
    Account FY 2025 Enacted House FY 2026 Senate FY 2026
    USACE Civil Works Total $8,680.5 m $9,570 $9,790.928
    Investigations $142.99 $200 $97.452
    Construction $1,854.688 $2,550 $2,481.772
    Operation and Maintenance $5,552.816 $5,550 $5,990.160
    Mississippi River and Tributaries $368.037 $490 $468.213
    Regulatory Program $221 $221 $225
    FUSRAP $300 $0 $100
    Flood Control and Coastal Emergencies $35 $40 XX
    Bureau of Reclamation Total $1,866.256 $1,710 $1,577
    Water and Related Resources $1,710.806 $1,710 $1,415.630
    CVP Restoration Fund $55.656 Such sums $65.370
    California Bay Delta $33 $32 $32
    Policy and Administration $66.794 $64 $64

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