Trump Administration Releases Detailed Fiscal Year 2026 Budget

  • by ACWA Staff
  • Jun 11, 2025
  • Water News

WASHINGTON, D.C. — OnMay 30, 2025, the Trump administration released a supplemental appendix to its Fiscal Year 2026budget proposal. The supplemental appendix provides a greater level of detail than the “skinny budget” released earlier in May. 

The President’s budget would reduce non-military spending by approximately 23 percent. These cuts are spread across different federal agencies at various levels. While the President’s budget is an important document, it is ultimately up to Congress to set funding levels and appropriate funds for federal programs. ACWA is working closely with partner organizations and allies on Capitol Hill to secure robust funding for water infrastructure. 

Topline Takeaways 

The Bureau of Reclamation budget request is for $1.2 Billion, a reduction of approximately $600 million as compared to last year. These cuts come from a number of programs across Reclamation. ACWA is especially concerned about the recommendation to zero out (allocate no funding to) Reclamation’s WaterSmart programs (including Title XVI), WIIN Act Storage Funding, Water Conservation Field Services Program, and Aging Infrastructure Program funding.   

The Environmental Protection Agency (EPA) budget request is for $4.16 billion, a 54 percent cut. ACWA is especially concerned about cuts to the Clean Water and Drinking Water State Revolving Loan Funds (SRF). The budget requests $155 million for the CWSRF and $150 million for the DWSRF. This represents a $2.4 billion dollar decrease to the SRF programs.  

The Army Corps of Engineers budget request is for $6.6 billion $2 billion or a 23 percent reduction over enacted funding levels. Funding cuts include zeroing out funding for new Corps WIFIA projects.  

The Department of Agriculture budget request totals $23 billion, a decrease of $6.7 billion or 23 percent from the FY 2025 Enacted Budget level.  

Detailed Summary 

U.S. Department of Agriculture (USDA)—USDA FY 2026 budget summary 

  • The FY 2026 proposed budget for USDA totals $23 billion, a decrease of $6.7 billion or 23 percent from the FY 2025 Enacted Budget level.   
  • $112 million for the Natural Resource Conservation Service (NRCS) for conservation measures including farm irrigation, land drainage, water management, and pollutant control.   
  • $265 million for Rural Development Programs to plan and develop infrastructure projects regarding aging rural water and wastewater systems.  
  • $0 for the Source Water Protection Program (SWPP) to help prevent water pollution and improve water quality.  
  • $78 million for U.S. Forest Service capital improvements and maintenance including facilities, roads, and trails.  
  • $1.47 billion for U.S. Forest Service management, protection, improvement, and utilization of the National Forest System.  
  • $759 million for the Forest Service Operations to support facilities maintenance and leases, information technology, and administrative support.  
  • $0 for wildland fire management and instead proposes to consolidate USDA and Department of the Interior (DOI) wildland fire management programs under a new U.S. Wildland Fire Service within DOI, and transfer appropriations of $175 million. More information on the U.S. Wildland Fire Service can be found in the Department of the Interior summary section of this update.  

U.S. Army Corps of Engineers (USACE)—USACE FY 2026 budget summary 

  • The FY 2026 proposed budget for USACE totals $6.66 billion, a decrease of $2 billion or 23 percent from the FY 2025 Enacted Budget level.  
  • $1.5 billion for construction, $2.3 billion for operation and maintenance, and $130 million for investigations to support water resources development, management, and restoration.  
  • $0 in new funding for USACE’s Water Infrastructure Finance and Innovation Act (WIFIA) program.  

U.S. Environmental Protection Agency (EPA)—EPA FY 2026 budget summary 

  • The FY 2026 proposed budget for EPA totals $4.16 billion, a decrease of $5 billion or 54 percent from the FY 2025 Enacted Budget level.  
  • $155 million for the Clean Water State Revolving Fund and $150 million for the Drinking Water State Revolving Fund, which offers low-cost financing for water quality projects.  This is a $2.4 billion cut to the SRF programs. 
  • $8 million for EPA’s WIFIA program, which helps fund water and wastewater projects.  
  • $282 million for the Superfund program to help clean up hazardous waste sites. The budget also proposes significant changes to Superfund funding by transitioning the Superfund Remedial program to Superfund excise tax revenues.  
  • Funding is not directly mentioned for PFAS, however the proposed budget states it plans to “address 40 different PFAS compounds in surface water, groundwater, and wastewater through cutting-edge methods.”  

U.S. Department of the Interior (DOI)—DOI FY 2026 budget summary 

  • The FY 2026 proposed budget for DOI totals $14.4 billion, (this figure includes funding for a new U.S. Wildland Fire Service which would require legislation from Congress). The DOI request is for $11.9 billion in current authority, or $11.7 billion in net discretionary authority.  
  • $1.2 billion for the Bureau of Reclamation (BOR) to help manage water resources such as storage and delivery projects in the 17 Western states. BOR proposed funding includes California-specific projects such as $32 million for the California Bay-Delta Restoration, $65.4 million for the Central Valley Project Restoration Fund, and $13.6 million for the San Joaquin Restoration Fund. As noted above, Reclamation’s WaterSmart programs (including Title XVI), WIIN (Section 4007) Storage funding, Water Conservation Field Services Program, and Aging Infrastructure Program are all zeroed out.  
  • $936 million for the Bureau of Land Management (BLM), including $827 million for the management of lands, resources, and wildlife habitat.  
  • $1.1 billion for the Fish and Wildlife Service (USFWS) for the management of fish and wildlife resources, species recovery activities, and construction to maintain infrastructure.  
  • $891.6 million for U.S. Geological Survey (USGS) programs relating to surveys, investigations, and research that provide science information on natural hazards, ecosystems, water, energy and mineral resources.  
  • U.S. Wildland Fire Service – as discussed above the President’s budget proposes consolidating Department of the Interior and U.S. Forest Service wildland fire fighting functions on federal lands into the new U.S. Wildland Fire Service housed within the Department of the Interior. A total of $6.55 billion is requested for the U.S. wildland Fire Service which includes $3.7 billion for operations and $2.85 billion for the Wildfire Suppression Operations Reserve Fund.  Establishing the U.S. Wildland Fire Service would require specific authorization from Congress. 

U.S. Department of Commerce (Commerce)—DOC FY 2026 budget summary 

  • The FY 2026 proposed budget for DOC totals $8.4 billion, a decrease of $1.76 billion or 17 percent from the FY 2025 Enacted Budget level.  
  • $4.45 billion for the National Oceanic and Atmospheric Administration (NOAA) to support weather forecasting, coastal restoration, and fisheries.  
  • $790 million for the National Marine Fisheries Service (NMFS). The budget requests also includes a proposed restructuring and transfer of NMFS responsibilities for endangered species and marine mammal protection to DOI’s U.S. Fish and Wildlife Service. This transfer of authorities is similar to H.R. 1894 (The FISH Act), legislation that is supported by ACWA.  
  • $1.3 billion for the National Weather Service, a $59 million increase, for timely and accurate weather-related warnings and forecast- related research.  

U.S. Department of Homeland Security (DHS)—DHS FEMA FY 26 budget summary 

  • The FY 2026 proposed budget for FEMA totals $ 36.2 billion, an increase of $3.94 billion, or 17 percent from the FY 2025 Enacted Budget level. This includes $26.5 billion for the Disaster Relief Fund, which reimburses states for disaster cleanup and recovery.  
  • $2.38 billion for Cybersecurity and Infrastructure Agency (CISA), a $495 million dollar cut for CISA which identifies and manages risk to the cyber and physical infrastructure including water and wastewater systems that provide critical services like drinking water, fire suppression, and sanitation. 

For more information on the Trump administration’s  budget proposal and the congressional appropriations process, please contact ACWA Federal Relations Director, Ian Lyle, at ianl@acwa.com.

Suggested Resources

15 RESOURCES prev next
Comment Letter: ACWA Comment Letter regarding Draft Intended Use Plans for the Drinking Water State Revolving Fund Fiscal Year 2025 – 2026

To: Courtney Tyler, Clerk to the Board, State Water Resources Control Board Subject: Draft Intended Use Plans for the Drinking […]

Coalition Letter: Wildfire Solutions Coalition Supports Reauthorizing Cap-and-Trade Program and Increased Investment in Wildfire Resilience and Other Nature-Based Climate Solutions

To: President pro Tempore Mike McGuire, Speaker Robert Rivas, Senators Benjamin Allen, Catherine Blakespear, Monique Limón and Assemblymembers Steve Bennett, […]

Comment Letter: U.S. Department of the Interior: Regulatory Reform—Docket No. DOI–2025–0005

To: Gregory Zerzan, Acting Solicitor, U.S. Department of the Interior Subject: U.S. Department of the Interior: Regulatory Reform—Docket No. DOI–2025–0005 […]

Comment Letter: U.S. Environmental Protection Agency: NDWAC proposed revisions to the PFAS National Primary Drinking Water Regulation — Docket ID No. FRL–12882–01–OW

To: Tracey Ward, U.S. Environmental Protection Agency, Office of Ground Water and Drinking Water Subject: U.S. Environmental Protection Agency: NDWAC […]

Comment Letter: U.S. Army Corps of Engineers: Proposal To Reissue and Modify Nationwide Permits—Docket No. COE-2025-0002

To: Lieutenant General William H. “Butch” Graham, Jr., U.S. Army Corps of Engineers Subject: U.S. Army Corps of Engineers: Proposal […]

Priority Issues Bulletin

Sorry, but only ACWA members have permission to view this content. Member login is required.

Regulatory Roundup

The following document is released each month and includes policy updates from ACWA’s Regulatory Department. Click on the below link […]

Coalition Letter: FY 2025 – 2026 Budget – Support for AB 102 and SB 102 – Funding for the Agreements to Support Healthy Rivers and Landscapes

To: President pro Tempore McGuire, Speaker Rivas, Budget Chairs Weiner and Gabriel, and Subcommittee Chairs Allen and Bennett Subject: FY […]

Coalition Letter: Dam Safety and Resilience Program – Updated Request for 2024/25 Budget Funds and Allocation of Proposition 4 Monies

To: Governor Newsom, Policy Chairs and Budget Subcommittee Chairs Subject: Dam Safety and Resilience Program – Updated Request for 2024/25 […]

Coalition Letter: 2025-26 Budget – Oppose Proposed Reduction of Funding for the Agreements to Support Healthy Rivers and Landscapes

To: President pro Tempore Mike McGuire, Speaker Robert Rivas, Budget Chairs Scott Weiner and Jesse Gabriel, and Subcommittee Chairs Benjamin Allen […]

Cross-Connection Control Toolkit

Sorry, but only ACWA members have permission to view this content. Member login is required.

Comment Letter: Updated Water Measurement and Reporting Revisions

To: Courtney Tyler, Clerk to the Board, State Water Resources Control Board Subject: Updated Water Measurement and Reporting Revisions Letter […]

Joint Comment Letter: Request for Information – Development of a 2025 National Artificial Intelligence Research and Development Strategic Plan

To: Faisal D’Souza, Technical Coordinator, Networking and Information Technology Research and Development (NITRD) Subject: Request for Information: Development of a […]

Joint Comment Letter: RFI Response and Proposal for National AI Resource Exchange (NAIREX) with Industry Partnership Framework

To: Faisal D’Souza, Technical Coordinator, Networking and Information Technology Research and Development (NITRD) National Coordination Office (NCO) Subject: RFI Response […]

Federal Legislative Matrix

Sorry, but only ACWA members have permission to view this content. Member login is required.

Suggested News

15 Articles prev next
Experimental Hatchery Strays Find Suitable Habitat and Cold Water on the Tuolumne

LA GRANGE – In an exciting and unexpected conservation success, 1,200 adult spring-run Chinook salmon—originally released as part of the […]

District Earns Distinguished Financial Award for 17th Year

MARINA— Once again, the Marina Coast Water District has been recognized for outstanding financial stewardship—earning the Certificate of Achievement for […]

DWR Accepting Comments on Draft Subsidence Management Document

SACRAMENTO – For almost a century, parts of California have been gradually sinking, impacting critical infrastructure and the communities who […]

July 25, 2025 ACWA News Available

Read the June 27 edition of ACWA News for informative articles about the association and water industry. Articles include: ACWA Staff Organizes Educational […]

Mojave Water Agency celebrates 65 Years of Service

APPLE VALLEY — In tribute to six and a half decades of service, the Mojave Water Agency (MWA) hosted a […]

Projects Aligned with Healthy Rivers and Landscapes Program Producing Results

ACWA has long supported the Healthy Rivers and Landscapes (HRL) Program as the preferred pathway for updating the state’s Bay-Delta […]

Help Build California Water’s Future, Apply to Serve on an ACWA Committee

Now is the time to apply for an ACWA committee, where collaboration leads to real impact across California’s water sector. […]

ACWA Responds to Revised Draft Bay-Delta Plan Update

SACRAMENTO — The Association of California Water Agencies (ACWA) today issued a statement from Interim Executive Director Marwan Khalifa regarding […]

ACWA Committee Appointment Process Under Way for the 2026-’27 Term

ACWA members interested in serving on one of ACWA’s 13 standing committees may apply now through Sept. 19. ACWA’s committees […]

BCVWD Recognized for Excellence in Financial Management and Technology

BEAUMONT — The Beaumont-Cherry Valley Water District (BCVWD) continues to demonstrate leadership in financial transparency and innovation, having been recognized […]

Agency Recognized for Enduring Impact on Inland Empire Youth

BEAUMONT – The SoCal STEAM Challenge has recognized the San Gorgonio Pass Water Agency (SGPWA) for 15 years of transformative […]

Improved Water Availability Raises Bond Rating To ‘AA-‘ for Montecito Water District

S&P Global Ratings announced the long-term rating on Montecito Water District California’s series 2020A water revenue refunding bonds increased to […]

Yuba Water’s Latest Grants Support Levee Improvements and More

On July 15, Yuba Water Agency approved more than $6.2 million in grants for major levee improvements along the Feather […]

SMWD’s Stewart Recognized for Exemplary Leadership

California Water Environment Association (CWEA) recently recognized Bryan Stewart as the 2025 Emerging Leader of the Year. Bryan’s strategic mindset, […]

SMWD’s Water Festival: A Splashing Success

Santa Margarita Water District’s 2025 Water Festival made a big splash on Saturday, June 7, drawing more than 2,700 customers, families, and […]