Bill would increase WIFIA funding share for drought-impacted water projects

Supported by California lawmakers and industry groups, the bill aims to enhance funding flexibility for water projects.
March 10, 2026
2 min read

Representative Scott Peters has introduced legislation aimed at expanding federal financial support for water infrastructure projects in drought-affected regions, particularly across the U.S. West.

The proposed Drought Relief Obtained Using Government Help Today (DROUGHT) Act would raise the federal cost-share cap for certain projects funded through the Water Infrastructure Finance and Innovation Act (WIFIA) program. Current rules limit federal assistance to 80% of project costs, but the bill would increase that limit to 90% for projects in areas experiencing extreme drought, those of regional or national significance, or projects serving historically disadvantaged communities.

According to Peters, the higher cap could help state and local governments finance water supply and drought resilience projects that might otherwise face delays due to funding constraints.

“San Diegans know we cannot take our water for granted — that’s why the city and county are investing in long-term solutions like Pure Water,” Peters said in a press release. “The federal government must help communities across America invest in much-needed drought relief and prevention projects as we continue to face the worsening effects of climate change. Clean water is one of our most basic needs, and I look forward to working with my colleagues in Congress and our local partners to ensure every American has access to safe, reliable water.”

The legislation would allow drought-impacted and underserved communities to combine additional federal assistance with long-term, low-interest WIFIA loans. It would not change repayment requirements, interest rates or loan timelines for borrowers.

Supporters say the bill could help advance large-scale projects such as Pure Water San Diego, which aims to supply roughly half of the city’s drinking water by 2035 through water recycling.

Several members of California’s congressional delegation co-sponsored the bill, including Jim Costa, John Garamendi, Raul Ruiz, Juan Vargas, Nanette Barragán and Mike Levin.

“Access to reliable water is essential for every community. Large-scale water projects have long supported our local communities, and increasing federal assistance for drought-prone, low-income areas where access to safe drinking water is often limited will help meet the growing demands on our water infrastructure,” Costa said in a press release.

The bill has also drawn support from several industry and municipal organizations, including the National Association of Clean Water Agencies, the U.S. Chamber of Commerce, the American Public Works Association and the San Diego County Water Authority.

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