To authorize the conduct of small projects for the rehabilitation or removal of dams.

Authorizes the Secretary of the Army to carry out a small dam removal or rehabilitation project, including one relating to a privately-owned dam that does not generate hydropower, upon determining that the project will enhance public safety or improve the quality of the environment, or is in the public interest.

Directs a non-federal interest to provide 35% of removal or remediation costs. Permits construction to be commenced only after a non-federal interest has entered into a binding agreement with the Secretary to pay: (1) the non-federal share of construction costs; and (2) 100% of any operation and maintenance costs. Limits to $5 million in federal funds the amount that may be allotted for a project at any single location.