DROUGHT Act of 2026

The DROUGHT Act of 2026 would modify federal water infrastructure financing rules to help communities address drought conditions. Currently, water infrastructure projects that receive loans under the Water Infrastructure Finance and Innovation Act (WIFIA) cannot accept federal assistance for more than 80 percent of project costs. This bill would raise that federal funding cap to 90 percent for projects in areas experiencing extreme drought, projects of regional and national significance, or projects serving historically disadvantaged communities.

The bill would allow drought-impacted and underserved communities to access additional federal funds while remaining eligible for long-term, low-interest WIFIA loans. Importantly, the bill would not change borrowers' obligations to repay their loans, repayment timelines, or interest rates. The legislation is currently under consideration by the House Transportation and Infrastructure Committee and the House Energy and Commerce Committee.