DROUGHT Act of 2026

Bill Number

H.R. 7845

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Water Resources Development

Status

Introduced

Latest Action

2026-03-06: Referred to the Subcommittee on Water Resources and Environment.

Last Updated

2026-06-03T08:07:05Z

AI-Generated Summary

Purpose of the Legislation

The DROUGHT Act of 2026 aims to increase federal financial support for specific water infrastructure projects under the Water Infrastructure Finance and Innovation Act of 2014 (WIFIA). It focuses on projects in areas hit hard by drought, low-income communities, or those with broad regional/national benefits, to help improve water supply reliability and affordability amid water shortages.

Key Provisions

• Exceptions to Federal Funding Limits: For "covered projects," the federal government can provide up to 90% of the total project cost in loans or other assistance, overriding the standard cap (typically lower, such as 49% under WIFIA).
• Priority for Funding: The Secretary of Transportation (for certain projects) or the EPA Administrator must prioritize financing for these covered projects when reviewing applications.
• Definition of Covered Projects: Applies to eligible water infrastructure projects (as defined in WIFIA sections 5026(6) or (7), which include drinking water, wastewater, or stormwater systems). A project qualifies if it:
• Is located in a state designated as having "severe drought" (D2 level or worse on the U.S. Drought Monitor) for at least 4 weeks in the past 5 years, or in a county where the governor declared a drought emergency during that period.
• Serves an area where average household income is at or below 200% of the federal poverty level (as set by the U.S. Census Bureau), or meets state-defined affordability standards under the Safe Drinking Water Act or Clean Water Act.
• Is designated by the Secretary or Administrator as regionally or nationally significant due to benefits like expanding drinking water supply, promoting water reuse/recycling, reducing overall water use, lowering costs for users, or providing major public health/environmental gains.

Significant Changes to Existing Law

• Higher Federal Contribution: Amends WIFIA's Section 5029(b)(9) by adding a new exception (subparagraph D) that raises the maximum federal assistance from the previous limit (generally up to 49% of project costs) to 90% for qualifying projects. This targets drought-impacted or high-need areas without altering rules for other projects.
• New Qualification Criteria: Introduces specific drought, income, affordability, and significance tests to identify eligible projects, emphasizing climate resilience and equity—features not previously detailed in WIFIA for funding exceptions.

Potential Impacts

• On Government Agencies: The U.S. Department of Transportation and EPA will handle increased prioritization and funding for these projects, potentially speeding up approvals but requiring more resources for drought monitoring and designations. This could enhance federal coordination on water issues.
• On Citizens: Residents in drought-prone or low-income areas may gain better access to reliable, affordable water through faster project funding, reducing risks of shortages, contamination, or high bills. It promotes equity by focusing on underserved communities.
• On International Relations: Minimal direct impact, though it could indirectly support U.S. water security in regions like the Southwest, which share water resources with Mexico (e.g., Colorado River), potentially aiding bilateral stability.
• Broader Effects: Encourages investment in sustainable water practices, helping combat climate-driven droughts, but may increase federal spending without new revenue sources.

Main Stakeholders Affected

• States and Local Governments: Especially in drought-vulnerable areas like California (sponsors include representatives from there), benefiting from easier access to federal loans for water upgrades.
• Communities and Residents: Low-income households (≤200% poverty) and those in severe drought zones, who gain from improved water infrastructure and affordability protections.
• Water Utilities and Project Developers: Eligible entities under WIFIA, such as public water systems, that can secure higher federal support for projects like reservoirs, recycling facilities, or pipelines.
• Federal Agencies: EPA and DOT, responsible for implementing and designating projects, facing expanded oversight duties.
• Environmental and Public Health Groups: Indirectly supported through provisions for health/environmental benefits, potentially leading to more resilient systems.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens WIFIA's framework by embedding drought response and equity criteria, aligning with existing laws like the Safe Drinking Water Act (which ensures clean water access) and Clean Water Act (which funds pollution control). No conflicts with federal funding rules, but requires clear implementation guidelines to avoid disputes over designations.
• Constitutional: Supports the federal spending power (Article I, Section 8) for public welfare, including environmental protection, without infringing on states' rights—states retain roles in affordability criteria and emergency declarations.
• Political: Addresses urgent water crises in politically sensitive regions (e.g., Western states), potentially building bipartisan support for infrastructure amid climate debates. Could influence future budgets by expanding federal commitments, raising questions about long-term fiscal sustainability without offsetting cuts.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Peters, Scott H. [D-CA-50]

Cosponsors (9)

Rep. Barragán, Nanette Diaz [D-CA-44], Rep. Garamendi, John [D-CA-8], Rep. Vargas, Juan [D-CA-52], Rep. Jacobs, Sara [D-CA-51], Rep. Costa, Jim [D-CA-21], Rep. Ruiz, Raul [D-CA-25], Rep. Levin, Mike [D-CA-49], Rep. Panetta, Jimmy [D-CA-19], Rep. Kiggans, Jennifer A. [R-VA-2]

Recent Actions

• 2026-03-06: Referred to the Subcommittee on Water Resources and Environment.
• 2026-03-05: Referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-03-05: Referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-03-05: Introduced in House
• 2026-03-05: Introduced in House

Bill Versions

• Drought Relief Obtained Using Government Help Today Act of 2026 — issued 2026-03-05 — PDF (4 pages)