Healthy Watersheds, Healthy Communities Act of 2026

The Healthy Watersheds, Healthy Communities Act of 2026 amends the Watershed Protection and Flood Prevention Act to expand Federal support for local watershed projects that address erosion, flooding, drought, and water quality issues. The bill defines "multibenefit works of improvement" as projects that deliver at least two public benefits, such as improved fish habitat, water conservation, flood risk reduction, or renewable energy production, and requires that at least 20 percent of project benefits relate to agriculture or conservation. It streamlines the approval process by delegating decision-making authority to State Conservationists and sets a 45-day deadline for the Secretary of Agriculture to approve or disapprove applications, while also requiring notification to Congress for projects exceeding $50 million in Federal funding. The legislation allocates at least 50 percent of available funds to multibenefit projects, increases the maximum loan amount to $10 million, and introduces new conditions for Federal assistance, including requirements for land acquisition, water rights, and repayment plans for future water storage demands.