DROUGHT Act of 2026

Priority water loans but 90% federal cap

If enacted, the bill would require the Secretary or Administrator to prioritize WIFIA financing for certain "covered projects." A covered project would qualify if it meets drought, income/affordability, or regional/national significance tests. Drought tests include a State at D2 (severe drought) or worse for at least 4 weeks in the five years before assistance, or a county with a gubernatorial drought emergency in that five-year period. Income tests include areas with average household income at or below 200% of the Census poverty threshold on the date assistance is provided, or areas meeting State affordability rules under the Safe Drinking Water Act or Clean Water Act. Projects can also qualify if the Secretary or Administrator designates them regionally or nationally significant for increasing supply, reuse, reducing usage, lowering ratepayer costs, or large health/environmental gains. For any covered project, the bill would limit total Federal assistance under the subtitle to no more than 90 percent of total project cost, so sponsors would need other funding for the rest.