Federal Legislation
Congress Advances DROUGHT Act to Boost Water Infrastructure Funding
March 05, 2026
Congressman Scott Peters introduced the DROUGHT Act to increase federal funding support for water infrastructure projects in drought-affected and underserved communities by raising the federal share cap from 80% to 90% for eligible projects. This legislative effort aims to accelerate financing and construction of critical water infrastructure, including projects like San Diego's Pure Water initiative, enhancing water security amid worsening drought conditions. The Act would expand access to Water Infrastructure Finance and Innovation Act (WIFIA) loans, making federal assistance more accessible to local governments and water authorities managing drought resilience and water supply sustainability.
- The increased federal share cap under the DROUGHT Act signals expanded funding opportunities for water infrastructure contractors and suppliers, particularly in drought-prone regions such as Southern California.
- Procurement professionals should anticipate greater federal loan availability through WIFIA programs, potentially accelerating project timelines and contract awards for water treatment, distribution, and conservation infrastructure.
- Municipal agencies and water authorities may require enhanced collaboration with federal programs to leverage the increased funding, emphasizing equitable access for underserved communities.
- Companies specializing in water infrastructure development, engineering, and construction should evaluate strategic positioning to support projects benefiting from the enhanced federal funding provisions.
We must take every opportunity to invest in Southern Californiaโs water infrastructure so that we are prepared for the next drought. Water supports our local economies, powers tourism, and allows our San Diego County farmers to grow avocados, tomatoes, flowers, and other crops. The DROUGHT ACT will guarantee that federal loans are sufficient and accessible to support water infrastructure projects for the people of Southern California โ both those living here today and the generations to come.
— Rep. Levin (CA-49)
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.
— Congressman Costa (CA-21)
Every Californian deserves access to safe, clean, reliable drinking water. I'm proud to join Congressman Peters in introducing the DROUGHT Act to ensure communities have the resources and federal support they need to advance equitable, sustainable water infrastructure projects.
— Rep. Garamendi (CA-08)
Agencies
Water Infrastructure Finance and Innovation Act, Environmental Protection Agency, San Diego City Council, San Diego County Water Authority, U.S. Chamber of Commerce
Contracts
, $614 million
Locations
Sources
- Peters Introduces Legislation to Combat Drought, Build Local Water Infrastructure | Congressman Scott Peters · Peters Ca 52 House · Mar 05