Trump Administration Releases Detailed Fiscal Year 2026 Budget

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

WASHINGTON, D.C. — On May 30, 2025, the Trump administration released a supplemental appendix to its Fiscal Year 2026 budget 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.