Trump Administration Releases Fiscal Year 2026 Budget

  • by ACWA Staff
  • May 20, 2025
  • Water News

WASHINGTON, D.C. — The Trump Administration on May 2 released a summary of its Fiscal Year 2026 budget proposal that recommends a decrease in discretionary and non-defense spending of an estimated $163 billion. Notably for ACWA members, the budget includes estimated cuts of $4.9 billion for the Environmental Protection Agency, $5.1 billion for the Department of Interior, $5 billion for the Department of Agriculture, and $1.7 billion for the Department of Commerce.

While the president’s budget serves as a funding blueprint, it is ultimately up to Congress to set funding levels and appropriate funds for federal programs. ACWA staff is working closely with partner organizations and allies on Capitol Hill to secure robust funding for water infrastructure.

Specific budget proposals include the following:

U.S. Environmental Protection Agency

  • Decrease of $2.4 billion for the Clean and Drinking Water State Revolving Fund (SRF), which offers low-cost financing for water quality projects. SRFs are the largest source of federal funds for drinking water utilities, sewage treatment plants, and other infrastructure like water pipes.
  • Decrease of $254 million for the Superfund program, which is tasked with cleaning up contaminated areas and responding to emergencies. Informally called Superfund, the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) helps protect exposure to per- and polyfluoroalkyl substances (PFAS).

U.S. Department of the Interior (DOI)

  • Decrease of $609 million to the Bureau of Reclamation for restoration projects.
  • Decrease of $564 million for U.S. Geological Survey (USGS) programs relating to surveys, investigations, and research. These USGS programs provide science information on natural hazards, ecosystems, water, energy and mineral resources.
  • Decrease of $198 million for Bureau of Land Management Conservation Programs, including the Wildlife and Aquatic Habitat Management program that helps conserves and improve aquatic ecosystems and land-based wildlife habitats.
  • Consolidation of U.S. Department of Agriculture and DOI wildfire fighting strategies including wildfire suppression response, risk mitigation efforts, and coordination with non-Federal partners to combat the wildfire crisis. Specifically, this seeks to consolidate the Federal wildland fire responsibilities into a single new Federal Wildland Fire Service at DOI, including transferring USDA’s current wildland fire management responsibilities.

U.S. Department of Agriculture

  • Decrease of $721 million for the Rural Development Programs, which provides loans to low-income communities to plan and develop infrastructure projects regarding aging rural water and wastewater systems.
  • Decrease of $391 million for Forest Service Operations, which provides policy, oversight, and operational support over the management of million acres of public land encompassing national forests and grasslands.
  • Decrease of $754 million for the Natural Resource Conservation Service (NRCS) Private Lands Conservation Operations, which provides conservation technical assistance to comply with State environmental regulations; this includes California’s Irrigated Lands Regulatory Program, which regulates agricultural runoff. Additionally, this proposal calls for a decrease of $16 million for the NRCS Watershed Operations, which provides assistance to implement conservation practices that address watershed resource concerns such as renovating locally owned dams and installing flood control measures.

U.S. Department of Commerce

  • Decrease of $1.5 billion for the National Oceanic and Atmospheric Administration (NOAA), including $209 million for projects pertaining to weather satellites and infrastructure that relate to climate-measurement instruments.

U.S. Army Corps of Engineers

  • Decrease of $1 billion for the Harbor Maintenance Trust Fund Surplus, which finances operation and maintenance projects for ports and harbors nationwide.
  • Decrease of $7 million to eliminate the Water Infrastructure Finance and Innovation Act program, which provides low-cost, long-term loans for non-Federal water infrastructure projects such as dam safety.

U.S. Department of Homeland Security

  • Decrease of $646 million for Federal Emergency Management Agency’s (FEMA) Non-Disaster Grant Programs, which provide assistance to submit applications and review and accept awards, among other things, to help prevent, respond to, and recover from various emergencies.
  • Decrease of $491 million for Cybersecurity and Infrastructure Security Agency, which identifies and manages risk to the cyber and physical infrastructure. This includes 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 appropriations process, please contact ACWA Federal Relations Director Ian Lyle at ianl@acwa.com.

Suggested Resources

15 RESOURCES prev next
Comment Letter: Horizontal Sliding and Swinging Gates Regulation Recommendations

To: Kevin J. Goddard, Senior Safety Engineer, Committee Chair, Occupational Safety and Health Standards Board Advisory Committee Subject: Horizontal Sliding […]

Coalition Letter: Prioritize Proposition 4 Implementation in FY 2025-26

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

Priority Issues Bulletin

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

Comment Letter: U.S. Environmental Protection Agency: Clean Water Act Section 401 Implementation Challenges—Docket ID No. EPA–HQ–OW–2025–0272

To: Lauren Kasparek, U.S. Environmental Protection Agency, Office of Water, Oceans, Wetlands and Communities Division Subject: U.S. Environmental Protection Agency: […]

Comment Letter: U.S. Army Corps of Engineers: NEPA Implementing Regulations—Docket No. COE-2025-0006 and COE-2025-0007

To: Milt Boyd, U.S. Army Corps of Engineers Subject: U.S. Army Corps of Engineers: NEPA Implementing Regulations—Docket No. COE-2025-0006 and […]

Comment Letter: U.S. Department of the Interior: NEPA Implementing Regulations—Docket No. DOI-2025-0004

To: Stephen G. Tryon, Director of the Office of Environmental Policy and Compliance, U.S. Department of the Interior Subject: U.S. […]

Comment Letter: 2025-26 State Budget: Climate Bond Implementation

To: President pro Tempore McGuire, Speaker Rivas, Budget Chairs Weiner and Gabriel, and Subcommittee Chairs Allen and Bennett Subject: 2025-26 […]

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: Comments on the Draft Guidelines for Recovery Planning

Agency: California Department of Fish and Wildlife, Wildlife Branch, Attn: Austin Roy/Recovery Guidelines Subject: Comments on the Draft Guidelines for […]

Coalition Letter: Petition to the California Fish and Game Commission for a Regulation Change Regarding the Striped Bass Slot Limit (Petition Tracking Number 2022-12)

To: Erika Zavaleta, President, California Fish and Game Commission Subject: Petition to the California Fish and Game Commission for a Regulation […]

Comment Letter: U.S. Department of Agriculture: NEPA Implementing Regulations—Docket No. USDA–2025–0008

To: Scott Vandegrift, Office of the Secretary, U.S. Department of Agriculture Subject: U.S. Department of Agriculture: NEPA Implementing Regulations— Docket […]

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 […]

Suggested News

15 Articles prev next
EMWD Unveils “Landscapes for Business and Beyond” Website and Portal

PERRIS – Eastern Municipal Water District (EMWD) is excited to announce the launch of its new Landscapes for Business and […]

Rancho Water Celebrates 60 Years with Splash Fest Community Event

TEMECULA – Rancho California Water District (Rancho Water/District) marked its 60th Anniversary on Saturday, August 16, with a lively and […]

Tuolumne Utilities District Announces Completion of New Gibbs Tank

Tuolumne Utilities District (TUD) is proud to announce the successful completion of the new Gibbs Water Tank, marking a significant […]

San Juan Water District Appoints Adam Larsen as New General Manager

GRANITE BAY – The San Juan Water District Board of Directors is pleased to announce the appointment of Adam Larsen […]

Contact Legislators to Approve Prop. 4 Spending Plan

SACRAMENTO — ACWA is urging member agencies to sign a coalition letter and contact their legislators in support of a […]

Hi-Desert Water District Breaks Ground on $103 Million Sewer Expansion Project

YUCCA VALLEY– Hi-Desert Water District proudly announces the official groundbreaking and start of construction on the long-anticipated $103 million expansion […]

CHWD Breaks Ground on Two New Wells to Secure Community’s Water Future

Citrus Heights Water District (CHWD) recently began constructing two new groundwater wells to improve water reliability for the community and […]

Otay Water District Serves a Vital Role by Preserving Local Habitat, Biodiversity and Water Quality

The Otay Water District’s efforts to preserve local habitat contribute to the region’s biodiversity and support healthy ecosystems, which are […]

Golden Mussel Veligers Detected in Lake Palmdale; PWD Preparing Plan

PALMDALE – The California Department of Fish and Wildlife (CDFW) has found three golden mussel veligers in plankton samples collected […]

Clair A. Hill Award Winner Celebrates Project’s Completion with Community

Last month, more than 100 community members, staff, Board members, and elected officials gathered for a celebration marking the completion […]

PV Water Celebrates College Lake Water Supply Project

WATSONVILLE — On Friday August 8th, about 100 people, including the Pajaro Valley Water Management Agency (PV Water), elected officials, and […]

August 2025 Priority Issues Update Now Available

The August 2025 Priority Issues Update is now available online to members. The update is a summary of the latest […]

Tuolumne Utilities District Utilizes Goats for vegetation Control

Tuolumne Utilities District (TUD) is pleased to announce the continuation of its innovative and eco-friendly approach to vegetation management at […]

Workplace Safety Excellence Earns Rowland Water Top National Recognition

ROWLAND HEIGHTS — For the third consecutive year, Rowland Water District (RWD) has been awarded the Occupational Excellence Achievement Award […]

State Water Board Adopts Revised Water Measurement and Reporting Regulations

SACRAMENTO — The State Water Resources Control Board on Aug. 5 adopted revised Water Measurement and Reporting regulations, which apply […]