This bill, titled the Healthy Watersheds, Healthy Communities Act of 2026, significantly amends and updates the Watershed Protection and Flood Prevention Act. It begins by establishing new findings regarding the widespread damages caused by erosion, floodwater, drought, and sediment, and expresses a sense of Congress for enhanced federal cooperation with a broader range of entities, including **Tribal organizations** and **nonprofit organizations**, to address these issues. Key changes include expanded definitions, notably for "local organization" to encompass irrigation districts, water users' associations, and non-profits, and the introduction of a new term, **"multibenefit work of improvement."** This new category refers to projects that provide two or more public benefits, such as improving fish or wildlife habitat, reducing drought impact, enhancing water quality, or promoting water conservation. The bill also clarifies the scope of a "work of improvement" to include federal land and requires a minimum of 20 percent agriculture or conservation benefits. The legislation streamlines administrative processes by delegating final decision-making authority for watershed plan release to **State Conservationists** and imposing a 45-day deadline for the Secretary to approve or disapprove project applications. Crucially, it allows for the approval of **multibenefit works of improvement** regardless of their cost-benefit ratio, acknowledging their broader societal value. Additionally, it provides for funding approval for certain construction materials, including those that are fully recyclable and maintain structural integrity for at least 100 years. Revised **notification requirements** for Congress are established for projects exceeding specific cost or capacity thresholds, with different committees receiving notice based on the project's scale. A significant provision mandates that **not less than 50 percent of the total annual funding** under the Act must be allocated to the planning, design, or construction of multibenefit works of improvement, underscoring a shift towards more holistic watershed management. The bill also details **conditions for Federal assistance**, requiring local organizations to acquire necessary land, make arrangements for operation and maintenance, secure water rights, and obtain agreements for soil conservation measures. It outlines cost-sharing provisions for public fish and wildlife or recreational development and for mitigating habitat losses. Furthermore, it increases the maximum loan amount available to local organizations from $5 million to **$10,000,000**. Finally, the Act enhances transparency and accountability by requiring the Secretary to **collect, maintain, and publish data** on the Department of Agriculture website regarding expenditures for various project benefits, including those related to drought resilience, water quality, instream flow, and off-channel renewable energy production. This aims to provide a clearer picture of the impact and effectiveness of the funded projects.