WaterSMART Drought Response Program

The Bureau of Reclamation is soliciting applications for drought resilience and water management projects under the WaterSMART Drought Response Program, with applications due July 28, 2026. The program distributes approximately $13.5 million in federal funding across 8–20 awards ranging from $25,000 to $1.5 million, with most applicants required to provide 50 percent non-federal cost-share matching (waived only for American Samoa, Guam, the Northern Mariana Islands, and the U.S. Virgin Islands).

Eligible applicants include states, tribes, irrigation districts, water districts, regional authorities with water or power delivery authority, and nonprofit conservation organizations partnering with eligible entities in designated western locations. Applicants except those in the four exempted territories must provide cost-share contributions; those showing less than 50 percent non-federal match may request waiver or reduction based on overwhelming federal interest and significant financial need, evaluated against median household income, poverty levels, unemployment rates, and applicant financial statements.

Two funding groups are available: Funding Group I provides up to $500,000 (limited to drought contingency planning) and Funding Group II provides up to $1.5 million. Task A focuses on infrastructure improvements including water conveyance systems, storage facilities, groundwater recovery, and alternative water supply development. Task B encompasses water management planning, decision-support tools, and comprehensive drought contingency plan development. Ineligible projects include operations and maintenance, water conservation initiatives, certain water reclamation and desalination projects exceeding $20 million, storage projects exceeding $10 million, emergency response activities, building construction, pilot projects, and on-farm improvements.

Drought contingency planning projects proceed through two phases: Phase I establishes a planning task force and develops a work plan for Reclamation approval; Phase II develops or updates the plan addressing six required elements: drought monitoring, vulnerability assessment, mitigation actions, response actions, operational and administrative framework, and plan development and update process. Applications undergo initial eligibility review, merit evaluation against eight criteria totaling 100 points, risk assessment, and managerial prioritization. Award recipients must comply with federal environmental compliance requirements, obtain necessary permits, and maintain cost-sharing commitments. Funding is authorized under Section 9504(a) of the Secure Water Act and Title I of the Reclamation States Emergency Drought Relief Act of 1999 (CFDA 15.514).