Congress Passes Fiscal Year 2026 Appropriations
Congress has finalized FY 2026 funding for key water, energy, and environmental programs with passage of the three-bill Fiscal Year (FY) 2026 minibus that includes the Interior-Environment and Energy and Water Development bills. The legislation keeps most programs funded at current levels, avoids the deeper cuts proposed by the Administration, and ensures continued funding for agencies like EPA, Bureau of Reclamation, and the Army Corps of Engineers through September 30, 2026.

This month, Congress passed and the President signed into law the three-bill Fiscal Year (FY) 2026 minibus that included the two key spending bills for CASA priorities, the Interior-Environment and Energy and Water Development spending bills. These two bills collectively fund federal water infrastructure, drought, flood and navigation, wildfire, energy, and habitat conservation programs, among other environment and energy programs. As a result of the passage, the U.S. Environmental Protection Agency, U.S. Bureau of Reclamation, and U.S. Army Corp of Engineers will be funded through the remainder of the fiscal year, September 30, 2026. Importantly, the approved funding levels maintained most program spending at current levels and where reductions were made, the cuts were incremental compared with the White House’s proposed funding cuts in its budget request.

Upon its passage, Congress released the Committee on Appropriations’ explanatory statements for the bills, which provides detailed overview of programmatic funding levels: FY 2026 Minibus Bill Summary, FY 2026 Minibus Explanatory Statement: Interior-Environment , FY 2026 Minibus Explanatory Statement: Energy and Water Development. The following summarizes the key funding takeaways included in the FY2026 Interior and Environment and Energy and Water Development bills that are relevant for CASA.

U.S. Environmental Protection Agency: Allocated a total of $8.8 billion, which represents a 4% reduction compared to FY2025 levels.

  • Office of Science and Technology – $744.2 million, of which $9 million is to support research into PFAS impacts in agricultural settings and communities.
  • Environmental Programs and Management – $3.11 billion
  • Clean Water State Revolving Loan Fund – $1.6 billion
  • Drinking Water State Revolving Loan Fund – $1.126 billion
  • WIFIA Program – $64.6 million
  • Hazardous Substance Superfund: – $282.75 million
  • Geographic Programs – $681.7 million

U.S. Bureau of Reclamation: Allocated a total of $1.65 billion. Of this total, the Water and Related Resources account receives $1.47 billion, of which:

  • Regional Programs—$591 million to support drought response, water recycling, desalination, basin studies and related programs
  • WaterSMART—$36 million
  • Desalination—$11 million
  • Rural Water Projects – $117.1 million
  • Water Conservation and Delivery, and water storage projects authorized under WIIN Act – $127.9 million
  • Bay Delta—$32 million
  • Prioritizes projects that increase water supply and support drought response

U.S. Army Corps of Engineers: Allocated $10.4 billion representing a $2 billion increase from current year spending, of which:

  • Investigations – $150.384 million
  • Construction – $3.196 billion
  • Operations & Maintenance – $6.013 billion
  • Flood Control & Coastal Emergencies – $40 million

U.S. Department of the Interior: Allocated a total of $14.54 billion. Of which:

  • Wildland Fire Management – $1.52 billion and $370 million for fire suppression cap adjustment as authorized

U.S. Forest Service – Allocated $8.61 billion, of which:

  • Funds essential wildfire preparedness and suppression efforts by providing $4.25 billion for wildfire suppression, of which $2.85 billion is for the Wildfire Suppression Operations Reserve Fund.
  • Provides funding for the permanent pay fix and job series for federal wildland firefighters to prevent a pay cut for the firefighting workforce.
  • Does not endorse the consolidation of federal wildland firefighting into one agency as proposed in President Trump’s budget request.