DROUGHT Act of 2026

This bill, known as the DROUGHT Act of 2026, increases the maximum federal funding level for certain water infrastructure projects from the standard cap to 90 percent of project costs. It directly affects states and counties experiencing severe drought conditions, as well as projects serving low-income communities or those designated as regionally or nationally significant. The legislation defines covered projects as those located in areas with severe drought designations or declared drought emergencies, those serving low-income populations, or those that improve water supply, reuse, or reduce water usage. The bill requires federal officials to prioritize financing for these specific projects under the Water Infrastructure Finance and Innovation Act of 2014.