Energy and Water Development and Related Agencies Appropriations Act, 2026
Sponsored By: Senator Kennedy, John [R-LA]
Introduced
Summary
Provides FY2026 appropriations and tighter oversight for water, energy, and nuclear programs. This bill would fund Corps civil works, Interior water projects, the Department of Energy's defense and cleanup accounts, and independent agencies while imposing stricter reprogramming and reporting rules to preserve congressional direction.
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- Communities and ports: Would fund Army Corps construction and operations and direct Harbor Maintenance Trust Fund shares for donor and energy ports, with roughly $2.5 billion for Corps construction and about $6.0 billion for Corps operation and maintenance.
- Water users and project beneficiaries: Would limit decisions on the San Luis Unit until California and the Interior agree on a drainage plan, revise repayment and reimbursement rules, and raise authorization levels for Northwestern New Mexico rural water projects to about $1.8 billion and a cap to $1.0 billion.
- Energy and nuclear sector: Would provide major DOE accounts including funds for defense nuclear nonproliferation and cleanup, create a consent-based interim storage program for spent fuel, and transfer $75.0 million to boost domestic grid transformer manufacturing.
- Agencies, grants, and oversight: Would fund the Nuclear Regulatory Commission and regional commissions, require baseline and quarterly reports, tighten reprogramming limits, and add advance-notice and termination-notice rules for large grants and programs.
*Would authorize FY2026 appropriations including about $6.0 billion for Corps O&M, $2.5 billion for Corps construction, $2.4 billion for Defense Nuclear Nonproliferation, $7.6 billion for Defense Environmental Cleanup, and $952.7 million for NRC salaries and expenses.*
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 2 benefits, 0 costs, 3 mixed.
DOE nuclear, grid, and SBIR funding
If enacted, the bill would move large unobligated IIJA balances into DOE programs and create new program authorities. It would repurpose $900 million and $1.5 billion (total $2.4 billion) for DOE Nuclear Energy demonstration and deployment programs, and move $75 million to DOE grid deployment for transformers and grid supply chain work. The bill would also let DOE use certain account funds for SBIR/STTR, technology commercialization, and a domestic transformer supply program. It would authorize a consent‑based federal interim storage program for spent nuclear fuel, but require host agreements, cost and schedule estimates, and public hearings before siting.
Bureau of Reclamation funding and rules
If enacted, the bill would make large changes to Bureau of Reclamation money and rules. It would appropriate about $1.416 billion for Reclamation and specify $200 million of that comes from unobligated IIJA balances. The bill would add reporting and tight limits on reprogramming of title II funds and Corps reprogrammings. It would require repayments and reimbursements tied to the Aging Infrastructure account and make San Luis Unit drainage costs collectible from beneficiaries. The bill also raises the Northwestern New Mexico rural water authorization to $1.815 billion and caps the non‑Federal share at $76 million, extends Fort Peck dates to 2028, and provides $23 million for the Central Utah project with set sub‑allocations.
Army Corps project and contract rules
If enacted, the bill would change how the Army Corps runs big water and flood projects. It would set dollar and percentage caps on Corps reprogrammings for investigations, design, construction, and operations. The Corps must modify existing integrated design and construction contracts within 60 days for projects that already have those contracts. The bill would let the Corps make advance payments for some very large public‑private flood projects with federal shares over $700 million. It would stop open‑lake dumping of dredged material from Lake Erie unless a State approves it, and allow up to $8.733 million to transfer to Fish and Wildlife for fisheries mitigation.
New DOE large-award oversight rules
If enacted, the bill would add new notice, reporting, and approval steps for many DOE awards and projects. The Secretary would need to notify Appropriations Committees at least 3 business days before awards or obligations of $1 million or more, and before direct lab funding of $25 million or more. DOE must give long advance notice before changing programs or terminating awards, bar major construction approvals over $100 million until an independent cost estimate is done, and keep FY2024 negotiated indirect cost rates. These rules could slow large awards but increase oversight.
Higher public land authorization cap
If enacted, the bill would raise a public‑land authorization cap from $960 million to $1.0 billion. This increases the maximum amount that may be authorized under that program, but it does not itself appropriate money.
Sponsors & CoSponsors
Sponsor
Kennedy, John [R-LA]
LA • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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