May 18, 2026

On Wednesday, May 13, Senators Katie Britt (R-AL) and Ben Ray Luján (D-NM) introduced the Advancing Water Reuse Act, which would establish a 30 percent investment tax credit (ITC) to help manufacturers and other industrial entities scale up their use of recycled water. The bill is a companion to H.R. 2940, which was introduced in the U.S. House of Representatives by Darin LaHood (R-IL), Claudia Tenney (R-NY), Linda Sanchez (D-CA) and Brad Schneider (D-IL). In the months ahead, WateReuse will work to add cosponsors to the Senate bill to demonstrate broad support for the ITC. We will also be working to add cosponsors to the House companion, which now has 26 sponsors in total.

WateReuse is working to identify a legislative vehicle to enact the ITC. Narrowly focused tax legislation typically does not pass on its own; rather, it tends to be incorporated into larger tax packages. In the meantime, we will continue to work with congressional champions to position the ITC for inclusion when the opportunity arises. WateReuse applauds Senators Britt and Luján for their leadership on the issue and looks forward to our continued work together. To help secure cosponsors for the House and Senate bills, please reach out to Greg Fogel at gfogel@watereuse.org.

Late last week, the Bureau of Reclamation announced the availability of funding for the Title XVI Water Reuse Grants Program and the Desalination Construction Grants Program for 2026 and 2027. Both opportunities will have two submission periods, one ending August 26, 2026, and another ending a year later, on August 26, 2027.

On Tuesday, June 2, 2026, at 11:00am MT, Reclamation will host an informational webinar to discuss eligible applicants and project types, program requirements, and the evaluation criteria for the Title XVI and Desalination Construction funding opportunities. Use this link to join the webinar. A recording will be made available after June 2 on the Water Recycling and Desalination webpage.

Title XVI Water Reclamation and Reuse Projects
Reclamation is making $40 million available through the Title XVI Water Reclamation and Reuse Projects Program, which provides support and technical assistance for water reuse project planning, design, and construction throughout Reclamation states. Annual awards through the Title XVI Program tend to be in the $8-15 million range; however, project sponsors may apply for multiple rounds of funding up to a total of $40 million per project. Reclamation expects to make roughly 10 awards through this funding opportunity. The WateReuse Association helped create the Title XVI Program in the 1990s and has fought since then to preserve, improve, and increase funding for the program.

See Opportunity

Desalination Construction Program
The Desalination Construction Program funds projects that address desalination of saltwater and brackish water. Reclamation expects to award roughly 10 grants through this cycle. While funding is capped at $120 million per project, annual awards tend to be in the $5 million to $25 million range. Applicants must be located in one of the 17 Western states.

See Opportunity

WateReuse is pleased to report that the Bureau of Reclamation’s latest Notice of Funding Opportunity for the Title XVI Water Reuse Grants Program adopts a WateReuse recommendation to raise the per-project funding cap from $30 million to $40 million. WateReuse first advocated for the increase in our recommendations to President-Elect Trump’s Transition Team in early November 2024. We reiterated the recommendation in a February 2026 meeting with Reclamation Commissioner Scott Cameron. The per-project funding increase will help WateReuse members and other Title XVI grant recipients account for inflation and other cost increases in 2026 and 2027. The Title XVI Water Reuse Competitive Grants Program has funded and supported water reuse projects throughout Reclamation states for ten years. It is a key economic and water resiliency tool. WateReuse will continue to advocate for a strong program, both through our work with Congress on funding and policy as well as through our ongoing work with the Administration.

Last month, WateReuse Association state sections carried forward our work at two of the largest state water conferences: AZ Water and Texas Water.

This year was AZ Water’s 99^th year, and the conference had over 4,000 in attendance. Among them were our WateReuse Arizona leaders, who staffed a table in the exhibit hall and gave numerous presentations. WateReuse Arizona’s president, Andrea Odegard-Begay of Hazen and Sawyer, spoke alongside WateReuse member City of Flagstaff’s Lee Williams about how Flagstaff is optimizing the conjunctive use of its water reclamation facilities and planning capital upgrades for its evolving needs.

Meanwhile, an even larger state gathering of water professionals was taking place: Texas Water 2026. WateReuse Texas held a Reuse Roundtable with speakers from the conference’s dedicated reuse track and other subject matter experts, creating a space for in-depth discussions about research, treatment, funding, planning, policy, and outreach. Conversations were led by WRTX committee chairs: Nathan Vassar from Lloyd Gosselink for the policy discussion, Martin Bartlett from Consor for the outreach discussion, and Dr. Keisuke Ikehata from Texas State University for the research discussion.

Contact us at info@watereuse.org