The Critical Water Supplies for Resilient Communities Act amends the Federal Water Pollution Control Act to transform the existing alternative water source projects pilot program into a permanent grant program . This change removes the "pilot program" designation, establishing a continuous mechanism for funding projects aimed at securing water resources. The bill significantly redefines "critical water supply needs" to encompass existing or anticipated future water shortages identified in publicly developed plans for comprehensive local, statewide, or regional water supply, or for local or regional drought resiliency . Furthermore, it extends the program's authorization from 2026 to 2031 and mandates annual reports to Congress detailing funded projects and their effectiveness in addressing these critical water supply needs.