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119-s-4234119th CongressWALLET

Healthy Watersheds, Healthy Communities Act of 2026

Sponsored By: Senator Bennet, Michael F. [D-CO]

Introduced

Summary

Prioritize nationally coordinated, multibenefit watershed projects and stricter local sponsorship rules. This bill would restructure federal watershed programs to favor projects that deliver multiple public benefits while tightening eligibility, cost sharing, and oversight for major works.

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  • Local sponsors and Tribal organizations would face clearer obligations. They must secure land and water rights, arrange operation and maintenance funding, get conservation agreements from owners representing at least 50 percent of the drainage area above a retention reservoir, and provide repayment plans that generally recover future storage costs within the reservoir life and not past 50 years.
  • Conservation, recreation, and habitat outcomes get stronger weight. At least 50 percent of annual program funds would be reserved for multibenefit works, and every work must include agriculture or conservation benefits equal to at least 20 percent of total benefits.
  • Local control over planning rises and federal advances are capped. Local organizations could hire planning and design services and receive advances capped at 5 percent of estimated installation costs for flood or drought projects, and major projects with more than $50 million in federal construction funding trigger detailed committee notifications.

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 1 benefits, 0 costs, 6 mixed.

Land and recreation cost sharing limits

If enacted, the bill would allow the federal government to pay up to 50% of the cost to buy land, easements, or rights-of-way for fish and wildlife mitigation. For public fish, wildlife, or recreational sites that a local group agrees to run, the Secretary would not pay more than 50% of land or basic facility costs. The bill would also cap the number of recreational developments per watershed: 1 site if the watershed is under 75,000 acres, 2 if 75,000–150,000 acres, and 3 if over 150,000 acres.

Local financing, advances, and storage rules

If enacted, the bill would let local organizations get reimbursed for planning and contracting costs and allow federal advances for those services. Advances could be up to 5% of estimated installation cost for flood/drought projects and up to 75% for projects primarily for fish habitat or water quality. The program maximum loan would rise to $10,000,000. The bill would also cap costs for future water storage at 30% of a reservoir's estimated cost, require local groups to pay at least 50% of present storage costs, and limit repayment of future-storage costs to the reservoir life and no more than 50 years after first use.

Priority funding and public data rules

If enacted, the bill would require at least 50% of yearly program money to go to planning, design, or construction of multibenefit projects. USDA would have to publish project data on its website, including drought resilience and listed spending categories like water quality and fish habitat. The bill would also count money from other federal agencies as part of the local non‑Federal match for projects. These rules would steer more funding to multibenefit work but change how matching funds are counted.

Which watershed projects qualify

If enacted, the bill would set which projects count as a "work of improvement." A project would have to be in a watershed or subwatershed no larger than 250,000 acres. A single structure would be excluded only if it both holds more than 12,500 acre-feet of flood detention and more than 25,000 acre-feet total. The bill would also require each project to show at least 20% of its benefits come from agriculture or conservation and it would expand which local groups, including Indian Tribes and nonprofit water entities, can be local organizations.

Sustainable pipe materials funding

If enacted, the bill would let the Secretary approve funding for pipe materials that are fully recyclable, last at least 100 years, and can be manufactured on-site. A project sponsor could still choose alternative materials if the State Conservationist recommends them. This could lower life-cycle costs for some projects and encourage recyclable materials.

Agency power, delegation, and repeals

If enacted, the bill would give the Secretary more discretion to set assistance terms. It would require the State Conservationist to decide when a watershed plan goes out for final public comment. The Secretary would generally be barred from constructing on non‑Federal land unless a local organization asks. The bill would also repeal two existing Watershed Act sections, changing the statutory rules that guide USDA and sponsors.

Oversight and decision timelines for big plans

If enacted, plans with an estimated federal construction share over $50 million or structures over 2,500 acre-feet would need Secretary approval and at least 60 days' notice to Congress. Flood prevention projects with any single structure over 4,000 acre-feet would trigger notice to different congressional committees. The bill would also require the Secretary to approve or deny applications within 45 days, with one 45‑day extension allowed.

Sponsors & CoSponsors

Sponsor

Bennet, Michael F. [D-CO]

CO • D

Cosponsors

  • Sen. Fischer, Deb [R-NE]

    NE • R

    Sponsored 3/26/2026

  • Sen. Merkley, Jeff [D-OR]

    OR • D

    Sponsored 3/26/2026

Roll Call Votes

No roll call votes available for this bill.

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