Why It Matters
Congress has directed more than $3 billion toward western water storage over roughly a decade through three major legislative vehicles, according to a Congressional Research Service (CRS) report published Aug. 12.
The Secretary of the Interior must recommend projects to Congress, which then approves them by name in appropriations acts. Meanwhile, Congress faces a tightening eligibility window: only eight of 13 initially funded projects met a Jan. 1, 2021 feasibility deadline, leaving five ineligible for ongoing construction funding.
The Big Picture
Section 4007 of the Water Infrastructure Improvements for the Nation Act (WIIN Act; P.L. 114-322) created new authority for Reclamation to fund the study and/or construction of new surface and groundwater storage projects. Section 4007 of that law allows federally owned storage projects to receive up to 50% federal funding and state-led projects up to 25%, in contrast with prior Reclamation practice. Critically, project approval authority shifted primarily to appropriations committees rather than authorizing committees, allowing water resources projects to move forward without direct involvement of the House Natural Resources Committee or the Senate Energy and Natural Resources Committee.
The Infrastructure Investment and Jobs Act (IIJA) added $1.05 billion over fiscal years 2022 through 2026 for water storage projects broadly. The Budget Reconciliation Act of 2025 (OBBBA) provided additional funding available through fiscal year 2034, with no nonfederal cost sharing or reimbursement required.
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