Congress expands federal water funding for drought-stricken, low-income communities
H.R. 7845 — DROUGHT Act of 2026 · Filed by Scott Peters (D-CA) · 9 cosponsors · Introduced Mar 5, 2026 · Referred to committee
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What it does
This bill amends the Water Infrastructure Finance and Innovation Act to increase federal funding for water infrastructure projects in drought-stricken areas and low-income communities. It allows the federal government to cover up to 90% of project costs (instead of a lower cap) for projects in states experiencing severe drought, low-income areas, or those designated as regionally/nationally significant, prioritizing their financing.
Why we flagged it
The bill's core mechanism is straightforward: it raises the federal cost-share ceiling for WIFIA-financed water projects in drought and low-income areas and mandates prioritization of such projects. This is a direct expansion of public funding for water infrastructure serving vulnerable populations.
What the text implies
- The 90% federal cost-share may reduce incentive for states/localities to contribute their own funds, potentially shifting long-term maintenance responsibility to federal budget.
- Prioritization of drought-designated projects may concentrate federal resources in specific regions, potentially leaving other water-stressed areas with lower federal support.
The full analysis lists 3 implications of this text.
Who stands to gain
water utilities in drought-affected states; construction and engineering firms contracted for water infrastructure projects; municipalities and water districts in low-income areas