The Bureau of Reclamation awarded $9.2 million to the Klamath Project Drought Response Agency on September 19, 2025, through the Upper Klamath Basin Water Supply Alignment program (CFDA 15.566) to develop and implement drought response programs that align water supplies with demand for irrigation water users in the Klamath Project. The award, which extends through December 31, 2030, supports three primary program components: a groundwater substitution and supplementation program that contracts with irrigation well owners to provide supplemental water for project lands; an assistance program providing per-acre payments to compensate irrigators for reducing irrigation demand; and a domestic and municipal well mitigation program designed to reduce conflicts between agricultural and domestic groundwater use by restoring impacted well functionality.
These coordinated drought response initiatives directly benefit over 1,000 family farms in the Klamath Project region while providing the Bureau of Reclamation with greater operational flexibility in managing water resources for irrigation water users, fish and wildlife including Endangered Species Act-listed species, and tribal interests. By improving alignment between water supply and demand through conservation measures, land idling, and groundwater utilization, the programs mitigate the economic impacts of water shortages on agricultural producers while supporting broader resource management objectives across the upper Klamath Basin.