Energy and Water Development and Related Agencies Appropriations Act, 2026
Energy and Water Development and Related Agencies Appropriations Act, 2026 is a comprehensive annual appropriations bill that finances the Army Corps of Engineers (civil works), the Department of the Interior (notably water-related programs like the Bureau of Reclamation and major water projects), and the Department of Energy (covering a broad suite of energy programs). The bill sets discretionary funding for FY 2026 across these agencies, including use of dedicated trust funds (e.g., Harbor Maintenance Trust Fund and Inland Waterways Trust Fund) and specific program accounts (such as the CALFED Bay-Delta Restoration, Central Utah Project, and various DOE program offices). It also imposes a framework of oversight and management controls, particularly around how funds can be reprogrammed or transferred between programs, and it includes a number of policy directives on project priorities, environmental compliance, and certain program restrictions. In addition to funding levels, the act contains a mix of policy provisions that affect project planning, environmental compliance, and program administration. Notable items include restrictions on certain dredged material disposal decisions, requirements for state water quality certifications for dredged material disposal options, limits on reallocating funds without congressional approval, and a set of DOE program provisions that structure funding for energy efficiency, grid deployment, nuclear energy, fossil energy, and innovative loan guarantee authorities. Taken together, the bill aims to advance flood control, water supply, and energy programs while maintaining tight congressional oversight over how funds are shifted and used.
Key Points
- 1Broad funding scope for FY 2026: The bill appropriates funds for the Corps of Engineers (Civil Works), the Department of the Interior (including Bureau of Reclamation and related water projects), and multiple Department of Energy programs (Energy Efficiency and Renewable Energy, Cybersecurity/Energy Security/Emergency Response, Grid Deployment, Nuclear Energy, Fossil Energy, and related accounts), with some amounts drawn from or allowed to be transferred to trust funds (Harbor Maintenance Trust Fund, Inland Waterways Trust Fund) as specified.
- 2Reprogramming, transfers, and oversight: The act imposes extensive rules on how funds can be reprogrammed or transferred between programs and activities. It requires committee approvals for many reallocations, sets per-project limits, and requires quarterly reporting of all reprogramming between programs, projects, activities, or funding categories. It also requires a baseline plan and specific reporting to accompany any changes, and it generally restricts moving funds to create new programs or to discontinue existing ones without authorization.
- 3Environmental and water policy provisions: The bill includes several project-specific and environmental protections, such as prohibiting open-lake placement of dredged material from Lake Erie unless a state water quality certification is obtained, and mandating upland (non-dredged) disposal as the default until certification is secured. It also restricts certain water-supply reallocation studies (e.g., Wolf Creek Dam/Lake Cumberland) and directs compliance with water quality standards and repayment plans related to San Luis Unit drainage programs. Additionally, it authorizes emergency flood/coastal emergency funding and clarifies allocations for various water projects.
- 4Department of Energy program structure and financing: The DOE titles fund a wide array of activities, including:
- 5- Energy Efficiency and Renewable Energy: program direction and projects.
- 6- Cybersecurity, Energy Security, and Emergency Response: program activities.
- 7- Electricity and Grid Deployment: funding for grid-related activities.
- 8- Nuclear Energy and Fossil Energy: core R&D and deployment activities, with program direction funding.
- 9- Advanced Technology Vehicles Manufacturing Loan Program and Title 17 Innovative Technology Loan Guarantees: administrative expenses, loan guarantees, and related fee handling, including offsets and limitations tied to compliance and restrictions on guarantees.
- 10Interior and water infrastructure programs: Specific provisions address the Central Utah Project Completion Account, CALFED Bay-Delta Restoration, San Gabriel Basin Restoration, and general policy/administration within the Bureau of Reclamation. It also includes provisions about fund management, accounting, and governance for these programs, along with special funding for administration and program direction.