The bill mandates the establishment of an Office of Water Supply, Water Conservation, and Drought Resiliency within the Directorate of Civil Works in the U.S. Army Corps of Engineers. This office, to be created within 180 days of enactment, will be headed by a dedicated Program Manager and staffed with personnel capable of operating across Corps districts and divisions. The primary purpose of this new office is to enhance the Corps' water supply mission by focusing on water conservation and drought resiliency. It will be responsible for identifying and evaluating opportunities to promote these goals using existing Corps authorities, and for providing information and recommending new policies to improve related practices. Key tasks include assisting States and non-Federal interests in accessing Corps programs and technical assistance for water resource development projects. The office will also coordinate the review and completion of water supply reallocation studies to address backlogs and ensure timely processing of new studies. Furthermore, it will act as a liaison between the Corps and non-Federal entities for various water supply efforts, such as reallocating storage space for municipal and industrial use, entering into surplus water contracts, and modifying project operations for incidental water supply benefits. These modifications could involve adjusting release timings, capturing stormwater, or replenishing aquifers. The office is also tasked with conducting outreach, evaluating budget requests for water supply resources, and cooperating with State and local authorities to identify strategies for augmenting water supplies and enhancing drought preparedness. Finally, the Secretary of the Army must report to Congress within two years on the office's progress, staffing, and the status of ongoing water supply studies and projects.