DROUGHT Act of 2026

This bill, titled the DROUGHT Act of 2026, amends the Water Infrastructure Finance and Innovation Act of 2014 (WIFIA) to enhance federal support for specific water infrastructure projects. It introduces new exceptions to existing federal assistance limits, allowing certain projects to receive up to 90 percent of their total project cost in federal funding. The legislation defines "covered projects" that qualify for this increased assistance and prioritization. These include projects located in states experiencing severe drought (D2 or greater for at least four weeks in five years) or counties with a governor-declared drought emergency within the preceding five years. Additionally, projects serving areas where the average household income is at or below 200 percent of the poverty threshold , or those meeting state affordability criteria, are eligible. The bill also covers projects designated as regionally or nationally significant by the Secretary or Administrator. Such significant projects must demonstrably increase drinking water supply, enhance water reuse, reduce regional water usage, lower costs for ratepayers, or provide substantial public health or environmental benefits. The bill mandates that financing for these covered projects be prioritized, aiming to address critical water needs and improve infrastructure resilience.