Energy and Water Development: FY2026 Appropriations

The Energy and Water Development and Related Agencies appropriations (E&W) bill funds civil works activities of the U.S. Army Corps of Engineers (USACE) in the Department of Defense; the Department of the Interior’s Bureau of Reclamation (Reclamation) and Central Utah Project (CUP); the Department of Energy (DOE); the Nuclear Regulatory Commission (NRC); the Appalachian Regional Commission (ARC); and several other independent agencies. DOE typically accounts for about 80% of the bill’s funding. Overall Funding Totals President Donald Trump submitted his initial FY2026 budget request on May 2, 2025, followed by more details in late May 2025 and subsequent weeks. The Trump Administration request included $56.031 billion in discretionary appropriations for energy and water development agencies, a decrease of $5.233 billion (-9%) below the FY2025 enacted amount, excluding emergency appropriations, mandatory appropriations, rescissions, offsets, and adjustments. The House passed its version of the bill (H.R. 4553; H.Rept. 119-213) on September 4, 2025, at 12% above the Administration request and less than 1% below the FY2025 level. An FY2026 E&W bill (S. 3293) introduced by Senate E&W Appropriations Subcommittee Chairman Kennedy on December 1, 2025, would have provided nearly level E&W funding with the FY2025 total, plus transfers of unobligated appropriations. The FY2026 funding measure, with an increase of 1% over FY2025, was signed January 23, 2026 (P.L. 119-74). Many E&W accounts are also bolstered by supplemental, emergency, and advance appropriations from other acts. The FY2025 budget reconciliation measure (P.L. 119-21) included rescissions and additional appropriations for several E&W programs affecting funds available for various years. Energy and Water Development Appropriations, FY2025 and FY2026 Actions (in millions of nominal dollars and % change from FY2025 enacted) AgencyFY2025 EnactedFY2026 Request (% Change)FY2026 House (% Change)FY2026 S. 3293 (% Change)FY2026 Enacted (% Change) U.S. Army Corps of Engineers 8,703 6,663 (-23%) 9,891 (14%) 9,791 (13%) 10,435 (20%) Bureau of Reclamation/CUP 1,889 1,290 (-32%) 1,895 (<1%) 1,600 (-15%) 1,650 (-13%) Department of Energy 50,170 47,863 (-5%) 48,510 (-3%) 49,574 (-1%) 49,124 (-2%) Independent Agencies 502 215 (-57%) 460 (-8%) 531 (6%) 522 (4%) Total Appropriations 61,264 56,031 (-9%) 60,756 (<-1%) 61,496 (<1%) 61,731 (1%) Sources: P.L. 119-74 and related H.R. 6938 explanatory statement; S. 3293 and draft report (no committee action); H.R. 4553; H.Rept. 119-213. Notes: Does not include rescissions, transfers, and scorekeeping adjustments. Enacted amounts do not include supplemental or reconciliation appropriations. CUP = Central Utah Project Completion Account. Selected Key Issues Zero Funding Request for Wind, Solar, and Hydrogen Research and Development. No appropriations were requested for FY2026 for Wind, Solar, and Hydrogen R&D, which were allocated a total of $108 million in DOE’s FY2025 spending plan (down from $625 million in FY2024). The House approved $220 million for those activities, while the Senate draft report would have provided $439 million. The enacted measure provided $690 million. Continuing Funding of the Federal Regional Commissions and Authorities. All but one of the regional economic development commissions and authorities would have been terminated by the FY2026 request; the Appalachian Regional Commission annual appropriation would have been reduced from $200 million in FY2025 to $14 million in FY2026 (-93%). The enacted measure continued funding for the federal regional commissions and authorities with an increase of 1% from their FY2025 enacted levels. The act also provided funding for a new regional commission for distressed areas in Idaho, Montana, Oregon, and Washington. As of the date of this report, the commission had not been authorized.