HR4553119th CongressWALLET

Energy and Water Development and Related Agencies Appropriations Act, 2026

Sponsored By: Representative Rep. Fleischmann, Charles J. "Chuck" [R-TN-3]

Passed House

Summary

Sets FY2026 appropriations and policy for federal water and energy programs. It would lock in specific funding levels, update several statutory caps, and impose reprogramming, procurement, and policy limits across the Army Corps, Interior, DOE, and independent agencies.

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Bill Overview

Analyzed Economic Effects

21 provisions identified: 10 benefits, 2 costs, 9 mixed.

More money for cleanup and mercury storage

If enacted, the bill would provide $337.7 million for non-defense environmental cleanup, available until spent. It would also use FY2026 mercury-fee receipts to cover mercury storage costs, also available until spent. This would support cleanup sites and storage that protect nearby communities and fund contractors doing the work.

Higher caps for water projects

If enacted, this would raise and extend several Western water programs. One cap would rise to $1.0 billion, and the drought relief cap would rise to $130 million. Northwestern New Mexico rural water would increase to $1.815 billion, and its date would move to 2026. Wastewater reuse would be authorized up to $177.5 million, and desalination up to $106.5 million. It would push key dates to 2026 and 2027, require an action by December 16, 2026, and set one section to end on December 16, 2034. For CALFED, every “2022” would become “2026,” and a $30 million cap would rise to $35 million.

Major energy programs would get funding

If enacted, this bill would fund key energy programs. It would provide about $1.83 billion for energy efficiency and renewables and $1.80 billion for nuclear energy, with parts available through September 30, 2027 for program direction. It would provide $687.5 million for fossil energy, $135 million for energy data (EIA), and $294.6 million to run the Strategic Petroleum Reserve. It would also provide $7.15 million for the Northeast Home Heating Oil Reserve and $100,000 for the SPR Petroleum Account. These funds would stay available until spent.

More money for Western water projects

If enacted, the bill would provide about $1.71 billion for Bureau of Reclamation water management and restoration. It would add $32 million for CALFED Bay-Delta work and $23 million for the Central Utah Project, with named amounts for administration and mitigation. It would fund Reclamation policy and administration at $64 million through September 30, 2027. It would make FY2026 Central Valley Project Restoration Fund collections available and require full collection of mitigation payments, and it would allow up to $8.733 million to be transferred to Fish and Wildlife for fisheries mitigation. Some dollars are directed to Colorado River and San Gabriel Basin funds.

More federal backing for small modular reactors

If enacted, the bill would provide $150 million for the cost of loan guarantees for eligible small modular or advanced nuclear reactor projects. It would also provide up to $35 million for program administration through September 30, 2027, offset by FY2026 fees. The Director of OMB would need to certify projects, and guarantees could not back projects expecting to use other federal funds, staff, or property (with limited exceptions). It would transfer $672.7 million, $981.5 million, $1.0 billion, $1.5 billion, and $950 million into DOE Nuclear Energy. That money would fund up to two competitive Generation 3+ SMR awards, two earlier demonstration awards, and risk-reduction work.

Freeze on major new federal rules

If enacted, agencies could not use these funds to finalize any rule that counts as a “major rule” under federal law. This could delay large regulations that affect businesses and consumers.

More flexibility for energy SBIR funds

If enacted, the bill would provide $225 million for DOE Electricity programs, including $19.7 million for program direction through September 30, 2027. It would let DOE move SBIR/STTR and Technology Commercialization Fund dollars inside this account without the usual section 301 limits. This could speed awards and changes for small businesses working on energy technologies.

Environmental limits on select water projects

If enacted, the Corps could not fund open‑lake disposal of dredged material from Lake Erie unless a State issues a Clean Water Act section 401 certification. It would block picking a final discharge point for the San Luis Unit drain until a plan meets California’s EPA‑approved water standards. It would also bar funding for a water‑supply reallocation study at Wolf Creek Dam, Lake Cumberland, Kentucky.

More oversight on big DOE projects

If enacted, DOE would need to give 3 business days’ notice before most awards of $1 million or more and seek approval before large reprogramming. Grants or agreements over $100 million would need independent project management procedures. High‑hazard nuclear construction would require independent oversight. DOE could not commit funds beyond unobligated balances (except approved reprogramming), and projects over $100 million would need an independent cost estimate before key approvals.

Protect marriage‑belief rights from penalties

If enacted, the government could not use these funds to punish people for speaking or acting on a sincere belief that marriage is between one man and one woman. It would bar actions like changing tax‑exempt status, denying grants or licenses, or blocking access to federal programs for that reason. Such persons would be considered accredited or licensed for federal purposes if they would be but for that determination.

No funds for DEI or CRT

If enacted, agencies could not use these funds for diversity, equity, and inclusion offices, training, or programs. They also could not fund efforts that promote Critical Race Theory.

No funding to police online speech

If enacted, the government could not use these funds to label U.S. persons’ speech as misinformation or to fund partners that press companies to remove lawful speech. Agencies would be limited in partnering on content removal requests for legal speech.

No funds for COVID mandates

If enacted, agencies and federal funding recipients could not use these funds to run or enforce any COVID‑19 mask or vaccine mandates.

Stronger national‑security limits at DOE sites

If enacted, DOE could not use FY2025 funds to buy office IT or video tools from companies with any PRC ownership. DOE would need to give 30 days’ notice before admitting non‑U.S. citizens from Russia or China to non‑public areas of nuclear weapons production facilities. DOE also could not make $10 million‑plus awards to entities of concern and would apply risk‑based screening, including extra documentation and interagency checks.

Tighter controls on project reprogramming

If enacted, the bill would tighten how the Corps and Interior may shift money among projects. For the Corps, it sets caps by account (for example, O&M non‑emergency changes up to 15% and $5 million; Investigations up to 25% and $150,000; Construction up to 15% and $3 million), allows emergency O&M with notice, and says under $50,000 need not be submitted. Interior Water and Related Resources reprogramming would be limited to 15% for items over $2 million or $400,000 for smaller items, with some transfers over $500,000 needing approval, plus quarterly reports. A baseline report would be due in 60 days, extra funds could go only to projects the Chief of Engineers deems eligible, and funds could not enforce Section 370 on civil works.

Block clean‑energy rule for federal buildings

If enacted, DOE could not use these funds to finalize, run, or enforce its May 1, 2024 rule on clean energy for new federal buildings and major renovations. This could lower near‑term compliance costs but reduce potential long‑term energy savings.

Budget needed for new fuel reserves

If enacted, DOE could not start a new regional petroleum product reserve unless the President requests it in the annual budget and Congress approves it. The request would need costs, an operating plan with release conditions, a location, and an inventory estimate.

Limit oil reserve sales to China

If enacted, SPR oil could not be sold to buyers owned, controlled, or influenced by the Chinese Communist Party. Any sale would need conditions that prevent export of the oil to China.

Keep Western power funds in program

If enacted, the bill would stop transfers this year from the Western Area Power Administration’s Colorado River Basins Power Marketing Fund to the Treasury’s general fund. This would keep money in the power program.

Only U.S. or POW/MIA flags allowed

If enacted, these funds could only fly the U.S. flag, an official U.S. Government seal flag, or the POW/MIA flag at federal facilities covered by the bill.

Campgrounds stay open; lawful firearms allowed

If enacted, funds could not be used to close seven named campgrounds at Lake Sidney Lanier, Georgia. It would also bar the Corps from enforcing rules that ban lawful firearm possession at its water projects, if state law allows it and the person is not otherwise prohibited.

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Sponsors & CoSponsors

Sponsor

Rep. Fleischmann, Charles J. "Chuck" [R-TN-3]

TN • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 423 • No: 431

house vote • 9/4/2025

On Motion to Recommit

Yes: 209 • No: 218

house vote • 9/4/2025

On Passage

Yes: 214 • No: 213

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