Home\Advocacy\House Appropriations Committee Advances FY 2027 Appropriations Legislation 

House Appropriations Committee Advances FY 2027 Appropriations Legislation 

Date: May 22, 2026

Each year, Congress must determine how much funding to dedicate to federal agencies and programs, including water reuse grant and loan programs. Last week, the U.S. House Appropriations Committee released FY 2027 funding bills for the U.S. Environmental Protection Agency (EPA) and Bureau of Reclamation and the programs they administer. The WateReuse Association has been advocating this year for an increase in funding for the Pilot Program for Alternative Water Source Grants and the Title XVI Water Reclamation and Reuse Grants Program. The FY 2027 appropriations bills released last week meet our requests for both programs—increasing funding for Alternative Water Source Grants from $2 million to $5 million and increasing funding for the Title XVI Water Reuse Grants Program from $12.5 million to $41 million.  

Unfortunately, while the House agreed to increase funding for these two water reuse grant programs, it proposed cuts of 27 percent and 19 percent to the Clean Water and Drinking Water State Revolving Fund (SRF) Programs, respectively. The legislation maintains level funding for the Water Infrastructure Finance and Innovation Act (WIFIA) Program, another important source of financing for water reuse projects.  

The legislation acknowledges the critical water shortages facing the western Gulf Coast, in areas such as Corpus Christi, Texas, and provides $10 million through the National Alliance for Water Innovation (NAWI) for activities that advance desalination, water reuse, water technology, resource recovery, brackish groundwater development, aquifer storage, decentralized treatment systems, modeling, and data-driven water management that convert nontraditional and underused water sources into reliable supply. 

During consideration of the Energy and Water Development appropriations bill, the Appropriations Committee adopted language directing the U.S. Department of Energy (DOE) to collaborate with partners to evaluate the impacts of data centers on water and ratepayers. The language also directs DOE to evaluate water reuse systems as a way to improve data center water use efficiency.  

While the House of Representatives is moving swiftly to approve its 12 appropriations bills for FY 2027, the Senate has not yet started to debate and pass its own versions of the bills. Given the short legislative calendar this year due to the November elections, we anticipate that Congress will pass one or more funding extensions through at least December 2026 before working to negotiate final funding levels for FY 2027.  

For a detailed breakdown of the funding levels included in House FY 2027 appropriations legislation, view our annual appropriations tracker here. 

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