Energy and Water Development and Related Agencies Appropriations Act, 2026
- Sponsor
- Sen. Kennedy, John [R-LA]
- Committees
- Appropriations Committee (primary)
- Last action
- Dec 1, 2025
Bottom line
The bill provides critical funding for federal infrastructure, energy, and environmental programs for FY2026, while also enacting notable policy changes and reallocating billions in previously appropriated funds.
What it actually does
This bill appropriates funds for the fiscal year ending September 30, 2026, for energy and water development and related agencies. It covers the Army Corps of Engineers (Civil Works), the Department of the Interior (Bureau of Reclamation, Central Utah Project), the Department of Energy (various energy programs, nuclear security, environmental cleanup, power marketing administrations), and several independent agencies (e.g., Nuclear Regulatory Commission, regional commissions). Beyond funding, the bill includes significant policy provisions, such as expanding the Water Infrastructure Finance and Innovation Act (WIFIA) program, authorizing federal consolidated nuclear waste storage facilities, and repurposing substantial unobligated balances from the Infrastructure Investment and Jobs Act (IIJA) for new priorities.
Proponents argue
Proponents argue that this bill is essential for maintaining and upgrading the nation's vital infrastructure, ensuring energy security through diverse investments, and addressing critical environmental challenges. They would highlight the investments in clean energy, nuclear technology, water resource management, and regional economic development as crucial for national prosperity and security. The repurposing of funds is presented as a strategic reallocation to meet evolving national priorities and accelerate key projects.
Opponents contend
Opponents may contend that the bill includes controversial policy riders unrelated to appropriations, such as the nuclear waste storage provision, which could bypass established legislative processes. Concerns might also be raised about the repurposing of significant IIJA funds, arguing it diverts resources from their original intent and potentially undermines long-term infrastructure planning. Specific funding allocations for certain energy sectors or projects could also draw criticism for being misaligned with national needs or favoring particular interests.
The bill is substantial and contains detailed appropriations and complex policy language across multiple titles, requiring careful review and specialized knowledge to fully understand its implications.
Title I, Corps of Engineers--Civil
Corps of Engineers Civil Works Appropriations
This title appropriates over $9.6 billion for the Army Corps of Engineers' civil works programs. This includes funds for investigations, planning, construction, operation and maintenance of river and harbor projects, flood and storm damage reduction, and aquatic ecosystem restoration. Significant allocations include $2.48 billion for construction and nearly $6 billion for operation and maintenance, with substantial portions derived from the Harbor Maintenance Trust Fund.
Supporters argue
Supporters argue these appropriations are vital for national security, economic competitiveness, and public safety, ensuring critical water infrastructure is maintained and improved to protect communities and facilitate commerce.
Critics contend
Critics may argue that some projects are inefficient or politically motivated, or that the overall spending levels contribute to the national debt without sufficient return on investment.
Tradeoffs
The bill balances investments in new construction with the ongoing maintenance of existing infrastructure, and allocates funds between navigation, flood control, and environmental restoration, often competing priorities.
Title I, Water Infrastructure Finance and Innovation Program Account
Expansion of WIFIA Program Eligibility for Dam and Levee Safety
This provision appropriates $5 million for direct loans and loan guarantees under the Water Infrastructure Finance and Innovation Act (WIFIA) of 2014, specifically for safety projects to maintain, upgrade, and repair dams and levees. Crucially, it expands eligibility to include levees and ancillary features owned by State, municipal, county, private, or other non-Federal entities, and clarifies that any activity decreasing hazard or potential consequences of poor performance for eligible dams is considered a safety project. It also prohibits funding for federally owned or jointly owned dams/levees.
Title II, Bureau of Reclamation--Water and Related Resources
Bureau of Reclamation Water and Related Resources Appropriations and IIJA Fund Repurposing
This section appropriates over $1.4 billion for the Bureau of Reclamation's water and related natural resources management, development, and restoration activities. A significant aspect is the transfer of $200 million from unobligated balances of Infrastructure Investment and Jobs Act (IIJA) funds, originally for section 9603(d)(1) of the Omnibus Public Land Management Act of 2009, to be used for projects specified in the accompanying report's table, regardless of their original purpose. This effectively reallocates prior-year infrastructure funding to new or different Bureau of Reclamation projects.
Title III, Energy Efficiency and Renewable Energy
Energy Efficiency and Renewable Energy Appropriations and IIJA Fund Repurposing
This section appropriates $3.287 billion for Department of Energy (DOE) energy efficiency and renewable energy activities. A significant portion, $1.059 billion, is derived by transferring unobligated balances from IIJA funds originally provided for section 40308 of division D of that Act. This repurposes prior-year infrastructure funding to support various energy efficiency and renewable energy initiatives, including research, development, and deployment.
Title III, Nuclear Energy
Nuclear Energy Appropriations and Significant IIJA Fund Repurposing
This section appropriates $1.685 billion for DOE's nuclear energy activities. It includes a transfer of $92.35 million from IIJA funds (originally for section 813 of the Energy Policy Act of 2005). Additionally, Section 309 of Title III repurposes a massive $2.4 billion from IIJA unobligated balances (including $900 million from prior Nuclear Energy appropriations and $1.5 billion from the Carbon Dioxide Transportation Infrastructure Finance and Innovation Program Account) specifically for advanced reactor demonstration projects, commercial utility deployment projects, risk reduction for future generations, and the Advanced Nuclear Fuel Availability Program.
Title III, Science
Science Program Appropriations and IIJA Fund Repurposing
This section appropriates over $8.25 billion for DOE's science activities, which include fundamental research in physical sciences, high-performance computing, and operation of national scientific user facilities. It also includes a transfer of $250.237 million from IIJA unobligated balances (originally for section 813 of the Energy Policy Act of 2005) to support these science programs.
Title III, Sec. 310
Authorization for Federal Consolidated Nuclear Waste Storage Facilities
This section authorizes the Secretary of Energy to establish a program for licensing, constructing, and operating one or more federal consolidated interim storage facilities for spent nuclear fuel and high-level radioactive waste, using a consent-based siting process. This is authorized "notwithstanding any provision of the Nuclear Waste Policy Act of 1982," which established a different framework for nuclear waste disposal. The program prioritizes storage for spent fuel at sites without operating nuclear reactors and requires agreements with host states, local governments, and affected Indian tribes.
Title III, Sec. 315
DOE Indirect Cost Rate Directive
This provision mandates that the Department of Energy (DOE) continue to apply indirect cost rates for federal financial assistance to the same extent and in the same manner as applied in fiscal year 2024. Furthermore, it prohibits the use of any funds to develop, modify, or implement changes to such negotiated indirect cost rates.
Title III, Sec. 316
DOE Discretionary Award Termination Notification Requirements
This section establishes new requirements for the Department of Energy (DOE) before terminating any discretionary award (as defined by 2 CFR 200.1) solely under the authority of 2 CFR 200.340(a)(4). DOE must provide written notification to House and Senate Appropriations Committees and the recipient at least 120 days prior to termination, with at least 90 days for the recipient to restructure or re-scope the award. Recipients continue to receive disbursements during this period. If terminated, DOE should prioritize eligible applications from such entities in future funding opportunities. These requirements apply to awards from this Act, prior Energy and Water Development Acts (excluding emergency funds), and Title III of IIJA, but not to awards publicly announced after November 1, 2024, or non-discretionary awards.
Title IV, Nuclear Regulatory Commission
Nuclear Regulatory Commission Appropriations
This title appropriates $952.7 million for the Nuclear Regulatory Commission (NRC) to carry out its regulatory functions related to nuclear energy and materials. A significant portion, $804.5 million, is offset by licensing fees, inspection services, and other collections, resulting in a net general fund appropriation of $148.19 million. The funds support NRC's oversight of nuclear power plants, nuclear materials, and waste management.
Expands eligibility for WIFIA dam safety projects to include any activity that decreases the hazard or potential consequences of poor performance of a dam structure listed on the National Inventory of Dams with a primary owner type of State, local government, public utility, or private. It also makes any safety project for such dams eligible under section 5026(1)(A) of the Water Resources Reform and Development Act of 2014.
Title I, Water Infrastructure Finance and Innovation Program Account (Provisos 2 and 3)
Why it matters:This is a common legislative technique to modify existing program parameters within an appropriations bill, often to address specific stakeholder needs or perceived gaps in current law without a standalone authorizing bill. It's technically precise but can obscure the policy change.
Case for: Supporters argue this clarification and expansion are crucial to ensure a broader range of critical dam safety projects can access federal financing, thereby enhancing public safety and infrastructure resilience across the country.
Case against: Critics might argue that such expansions should undergo more rigorous review through authorizing committees, and that embedding them in an appropriations bill limits public and legislative scrutiny of the policy implications.
Estimated impact: Potentially expands the pool of eligible projects for WIFIA loans by clarifying and broadening the definition of 'safety project' for non-federal dams, impacting hundreds or thousands of dams nationwide.
Expands WIFIA eligibility to include projects to construct, maintain, upgrade, and repair levees and ancillary features with a primary owner type of State, municipal, county, private, or other non-Federal entity. It also amends 33 CFR 386.2(v) to add this new category and prohibits funding for federally owned levees.
Title I, Water Infrastructure Finance and Innovation Program Account (Provisos 6 and 7)
Why it matters:This is a significant expansion of the WIFIA program's scope, moving beyond dams to include levees. Placing it in an appropriations bill allows for immediate implementation without a separate, potentially lengthier, authorizing legislative process. The direct CFR amendment is a highly technical way to enact policy.
Case for: Proponents argue that levees are critical flood protection infrastructure, and providing WIFIA financing for non-federal levees is essential to protect communities and property, especially given the increasing frequency of severe weather events.
Case against: Critics might argue that expanding WIFIA to levees without a dedicated authorizing bill bypasses normal legislative review. Concerns could also be raised about the capacity of the Corps to manage this expanded program and the potential for federal funds to subsidize local responsibilities.
Estimated impact: Significantly expands the WIFIA program's scope to include non-federal levees, potentially unlocking billions in financing for levee projects nationwide and impacting flood risk management strategies.
Repurposes $2.4 billion from unobligated balances of prior Infrastructure Investment and Jobs Act (IIJA) appropriations. Specifically, $900 million from previous Nuclear Energy IIJA funds and $1.5 billion from the Carbon Dioxide Transportation Infrastructure Finance and Innovation Program Account are transferred to 'Department of Energy--Energy Programs--Nuclear Energy' for advanced reactor demonstration projects, commercial utility deployment, risk reduction, and the Advanced Nuclear Fuel Availability Program.
Title III, Sec. 309
Why it matters:This is a significant policy decision to reallocate substantial funds from one set of IIJA priorities to another. Placing it in an appropriations bill allows for this shift without a separate, potentially contentious, authorizing bill. It's a way to redirect funds to new priorities quickly.
Case for: Proponents argue that this reallocation is a strategic move to accelerate critical advanced nuclear energy initiatives, which are seen as vital for long-term clean energy goals and national security, and that these funds can be more effectively utilized for these purposes.
Case against: Critics would argue that this represents a significant departure from the original intent of the IIJA, potentially undermining investments in carbon capture and transportation infrastructure. They might also raise concerns about the transparency of such a large-scale repurposing of funds without explicit debate in authorizing committees.
Estimated impact: A $2.4 billion shift in federal investment priorities, significantly boosting advanced nuclear energy programs while reducing funds available for carbon dioxide transportation infrastructure.