Through WaterSMART, the Bureau of Reclamation (Reclamation) leverages Federal and non-Federal funding to work cooperatively with States, Tribes, and other entities as they plan for and implement actions to increase water supply and hydropower reliability. The WaterSMART Drought Response Program NOFO invites eligible applicants to submit proposals for projects designed to improve drought resilience by developing effective water management strategies and drought contingency plans. Funding under the Drought Response Program supports a range of initiatives including infrastructure improvements for increased water storage and distribution capabilities, water source diversification, decision-making tools for water management, and comprehensive planning to prepare for and respond to drought conditions. WaterSMART Drought Response Program demonstrably advances Trump administration priorities, such as those identified in Presidential Executive Order 14154 (January 20, 2025): Unleashing American Energy (E.O. 14154) and Secretarial Order 3418, and aligns with other priorities and requirements, such as those identified in Presidential Executive Order 14332 (August 7, 2025): Improving Oversight in Federal Grantmaking (E.O. 14332).

Bureau of Reclamation

Notice of Funding Opportunity

WaterSMART Drought Response Program

Funding Opportunity Number: R26AS00016

BASIC INFORMATION

Announcement Type: Initial Funding Opportunity Number: R26AS00016 Assistance Listing Number(s): 15.514 Estimated Total Program Funding: $13,500,000 Expected Number of Awards: 20 Award Ceiling: $1,500,000 Award Floor: $25,000

Approximately 8-20 awards will be awarded under this Notice of Funding Opportunity (NOFO), depending on the amount requested by each applicant and available Federal appropriations.

Applicants are invited to submit proposals under the following funding groups:

• Funding Group I: Up to $500,000 in Federal funds, not to exceed 50% of project costs. Drought Contingency Planning applications are limited to applying under Funding Group I.
• Funding Group II: Up to $1,500,000 in Federal funds, not to exceed 50% of project costs.

Construction Start Date Limitation - Proposed projects must not start construction until at least 12 months after the submission deadline. The estimated start date is dependent upon the complexity of the project and degree and significance of environmental impacts associated with the project. Some projects may require more than 12 months to start construction.

Cost Sharing Required? Yes

Closing Date: July 28, 2026, 4:00 p.m. Mountain Daylight Time (MDT)

U.S. states and local governments may be required under Executive Order 12372, Intergovernmental Review of Federal Programs to submit their application to their State Single Point of Contact (SPOC) for review. For more information, see the Intergovernmental Review SPOC List.

Have Questions? For questions regarding application and submission, contact the NOFO team at bor-sha-fafoa@usbr.gov. For questions regarding applicant and project eligibility or application content, contact the Program Coordinator, Sheri Looper, slooper@usbr.gov, 916-612-7816. Please include the NOFO number R26AS00016 in the subject line of any email correspondence.

Executive Summary

Through WaterSMART, the Bureau of Reclamation (Reclamation) leverages Federal and non-Federal funding to work cooperatively with States, Tribes, and other entities as they plan for and implement actions to increase water supply and hydropower reliability. The WaterSMART Drought Response Program NOFO invites eligible applicants to submit proposals for projects designed to improve drought resilience by developing effective water management strategies and drought contingency plans. Funding under the Drought Response Program supports a range of initiatives including infrastructure improvements for increased water storage and distribution capabilities, water source diversification, decision-making tools for water management, and comprehensive planning to prepare for and respond to drought conditions.

WaterSMART Drought Response Program demonstrably advances Trump administration priorities, such as those identified in Presidential Executive Order 14154 (January 20, 2025): Unleashing American Energy (E.O. 14154) and Secretarial Order 3418, and aligns with other priorities and requirements, such as those identified in Presidential Executive Order 14332 (August 7, 2025): Improving Oversight in Federal Grantmaking (E.O. 14332).

ELIGIBILITY

Eligible Applicants Others (see text field entitled "Additional Information on Eligibility" for clarification)

Additional Information on Eligibility Applicants eligible to receive an award under this funding opportunity are described below.

• Category A Applicants

  • States, Tribes, irrigation districts, and water districts;
  • State, regional, or local authorities, the members of which include one or more organizations with water or power delivery authority; and
  • Other organizations with water or power delivery authority.

  Category A applicants must be located in the Western United States or Territories; specifically: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Kansas, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, Wyoming, American Samoa, Guam, the Northern Mariana Islands, the U.S. Virgin Islands and Puerto Rico.

• Category B Applicants:

  • Nonprofit conservation organizations that are acting in partnership with, and with the agreement of an entity described in Category A.

  Category B applicants should include with their application a letter from the Category A partner stating that the Category A partner:

  • Is acting in partnership with the applicant;
  • Agrees to the submittal and content of the application; and
  • Intends to participate in the project in some way, for example, by providing input, feedback, or other support for the project.

  Partners do not necessarily need to contribute cost share funding. All Category B applicants must be located in the United States or the specific Territories identified above.

Ineligible Applicants - Those not eligible include, but are not limited to, the following entities:

• Federal Governmental entities
• Individuals
• Institutes of higher education

PLEASE NOTE: Applicants in Puerto Rico and Alaska and Category B applicants are not eligible to apply for Drought Contingency Plans as applicant eligibility is defined in the Reclamation States Emergency Drought Relief Act of 1999, as amended.

Cost Sharing Requirement

Cost Sharing Required? Yes 50% of total project costs.

All cost-share contributions must be non-Federal in original source and meet the requirements of 2 CFR 200.306. Total project cost is the sum of all allowable costs, including cost share and third-party contributions. For example, if the total project cost is $1.5 million, the minimum amount of non-Federal cost share would be $750,000.

• Total Project Costs - $1,500,000
• Cost Share- x 50%
• Applicant share of project costs $750,000
• Federal share $750,000

Note: This cost-sharing requirement is not applicable to American Samoa, Guam, the Northern Mariana Islands, or the Virgin Islands. Cost-share waivers may be considered for Drought Contingency Plans (see Attachment C for more details).

GET READY TO APPLY

Required System Registrations

Unique Entity Identifier and SAM.gov Registration Before applying, all applicants except individuals applying as a natural person must be registered in SAM.gov. During the SAM.gov registration the entity will obtain their Unique Entity Identifier (UEI).

The SAM.gov registration process can take several months. If your organization is not already registered in SAM.gov, begin the registration process as soon as possible. To register in SAM.gov, go to the SAM.gov website and use the available resources to complete registration.

• Financial assistance registrants must review and certify compliance with the SAM.gov “Financial Assistance General Representations and Certifications”.
• Already registered? You already have a Unique Entity ID. Before applying, check that your “Financial Assistance General Representations and Certifications” on SAM.gov is complete. Remember to renew your registration every year to keep it active while you have an award or application in progress. You can update your registration whenever you need, including during renewal.
• Need help? For additional information and contact information on the SAM.gov Help page.

GRANTS.GOV This program accepts applications through Grants.gov so once you receive your UEI return to Grants.gov to register with Grants.gov. Please allow 30 days to register and set up a Workspace in Grants.gov. See Submission Instructions section below for additional details.

PROGRAM OVERVIEW

Program Goals

• Through WaterSMART, Reclamation leverages Federal and non-Federal funding to work cooperatively with States, Tribes, and local entities as they plan for and implement actions to increase water supply reliability through investments in infrastructure and attention to local water needs.
• The objective of the WaterSMART Drought Response Program NOFO is to invite eligible applicants to leverage their money and resources by cost sharing with Reclamation on drought resiliency and planning projects designed to increase water management flexibility and reliability, helping entities prepare for and address impacts of drought and water supply shortages. Projects funded under this NOFO are proactive measures to build long-term drought resiliency.

Program Description

In general, projects under this NOFO will increase water supply reliability and build long-term resilience to drought. Proposed projects should aim to reduce the need for emergency drought response actions, such as water hauling programs and temporary infrastructure, while providing sustained benefits that build long-term resilience. This NOFO provides funding under two task areas: Task A: Infrastructure Projects and Task B: Water Management and Planning Projects.

Eligible projects under each task area are described below.

Phases of a larger project may be eligible for funding under this program, so long as the phase proposed for funding will generate benefits to address drought resiliency or water supply reliability, independent of completing additional phases.

Certain restrictions apply to water reclamation, reuse, desalination, and water storage projects, including phases of these types of projects. Please see Water Reclamation, Reuse, and Desalination and Small Surface and Ground Water Projects below for more information.

Proposed projects will be reviewed by the Program Office to determine eligibility for merit evaluation. Additionally, projects may be prioritized based on project type and task area (Tasks A and B), ensuring a balanced distribution across both task areas and a diverse range of projects within each task area.

Certified Local Governments are encouraged to prioritize projects in support of the celebration of America’s 250th birthday (American250). This may include, but is not limited to, preservation planning, interpretation, public engagement, and rehabilitation projects that recognize and honor the nation’s founding, history, and cultural heritage.

Task A: Infrastructure Projects

Investments in infrastructure improve drought resiliency by increasing water management flexibility and providing alternative sources of water supply. Infrastructure projects include, but are not limited to the following:

• System modifications or improvements. Projects that will increase flexibility of water conveyance and deliveries, facilitating access to water supplies in times of drought. Projects include, but are not limited to:
  • Constructing or modifying surface water intakes to access supplies when water levels are low (e.g., at dead pool), or to allow access at different locations.
  • Constructing new conveyance system components (pipelines, canals, pumping plants, etc.) to increase delivery flexibilities, facilitate voluntary water marketing, or to deliver water from alternative sources.
  • Constructing connections between water delivery systems to provide more options for water conveyance.
  • Installing barriers or other facilities to prevent saltwater intrusion into surface supplies.
• Storing water and/or recharging groundwater supplies. Projects that enable the capture or storage of additional water supplies that can be made available during drought. Projects include, but are not limited to:
  • Developing or expanding surface water storage facilities such as off-stream storage ponds.
  • Installing water towers and storage tanks to store water for municipal and domestic use.
  • Installing recharge ponds or injection wells to increase recharge and storage of surplus, inactive, or reclaimed water for later beneficial use.
  • Note: Multiple recharge basins or injection wells in one application will be considered as one project (or a phase of a larger project, if applicable). Storage projects have cost limitations for eligibility under this NOFO. See Small Surface Water and Groundwater Storage Projects below for more details.
• Developing Alternative Water Supply Sources Through the Treatment and Reuse of Surface Water and Reclaimed Water. Projects that develop alternative water supplies to build drought resiliency. Projects include, but are not limited to:
  • Constructing or expanding water treatment facilities to treat impaired surface water, municipal wastewater or stormwater runoff for later beneficial use.
  • Constructing stormwater capture and reuse systems, including stormwater infrastructure solutions such as rain gardens, cisterns, and bioswales.
  • Installing residential grey water and rain catchment systems.
  • Note: Water reclamation, reuse, and desalination projects have eligibility limitations under this NOFO. See Water Reclamation, Reuse, and Desalination information below for more details.
• Groundwater Recovery and Treatment Projects. Projects that implement the sustainable use of groundwater or the recovery of recharged water to build drought resiliency. Projects include, but are not limited to:
  • Constructing or rehabilitating a well to provide back-up water supplies during times of drought.
  • Constructing an extraction well at groundwater banks or other recharge areas to improve extraction and return capabilities during dry years.
  • Constructing an aquifer storage and recovery well
  • Treating impaired groundwater for beneficial use.
  • Note for applicants applying for groundwater projects: Applications for groundwater projects (including rehabilitation and the treatment of well water) will be limited to two wells per applicant. If two wells are included in the same application the wells must be located within the applicant’s service area. This limitation does not apply to monitoring or injection wells.

Task B: Water Management and Planning Projects

Task B projects are intended to help entities better manage water supplies through decision support tools, modeling, the identification of potential strategies to address drought, and comprehensive drought planning. Projects include but are not limited to the following:

• Developing water management, water marketing, and modeling tools to help communities evaluate options and implement strategies to address drought.
  • Developing online decision support tools to help communities identify alternative water supplies or water management options in times of drought.
    • For example, in 2019, Reclamation awarded the Texas Water Development Board with a Drought Resiliency Grant to modify their existing drought prediction tool to provide more accurate forecasting of average May through July rainfall, reservoir levels, and reservoir storage across the state by county. The project was completed in 2022, and the forecasts are updated bi-weekly and made accessible for water managers through the Water Data for Texas website: www.waterdatafortexas.org/reservoirs/statewide.
  • Installation of monitoring equipment to accurately track water supply conditions (e.g., stream flow measurement structures, groundwater monitors, reservoir level monitors) to improve water management practices, optimizing water resources and supporting informed decision-making.
  • Developing new models or improving existing models for analyzing and predicting drought conditions. Such models should be based on proven methods to analyze drought frequency, duration, and intensity, as opposed to research type efforts.
  • Developing water budgets and tiered pricing programs that incentivize decreased consumptive use.
  • Real-time operational modeling to track supply conditions and demands. Modeling can be used to analyze different operational scenarios to optimize pumping capacities, evaluate user restrictions, water delivery needs, etc., and determine how to best meet compliance requirements such as temperature control points, water quality, or other environmental compliance (e.g., Endangered Species Act), and Clean Water Act.
  • Assessing water quality with respect to the level of drought to determine appropriate measures to protect water quality for fish and wildlife, agriculture, and human consumption (e.g., water quality testing or constructing groundwater monitoring wells).
  • Developing tools to facilitate water marketing, connecting willing sellers and willing buyers that want to participate in the buying, selling, leasing, or exchanging of water.
• Developing or updating Drought Contingency Plans (comprehensive drought plans) that, when implemented, will increase water reliability and improve water management through the use of expanded technologies for drought forecasting, planning mitigation actions, and identifying drought response actions.
  • Drought contingency planning efforts are to develop and update comprehensive drought plans designed to build resilience to drought in advance of a crisis. Applicants under this NOFO may request funding to develop a new drought plan or to update an existing drought plan (collectively, Drought Contingency Plans).
  • Drought Contingency Plans funded under this NOFO must include six required project elements: 1) Drought Monitoring, 2) Vulnerability Assessment, 3) Mitigation Actions, 4) Response Actions, 5) Operational and administrative Framework, and 6) Plan Development and Update Process.
  • See Attachment C for detailed information regarding the Drought Contingency Plan’s six required elements, Phase 1, and Phase 2.

Ineligible Projects

Projects that are not eligible for funding under this NOFO include, but are not limited to:

• Operations, Maintenance, and Replacement: In accordance with Section 9504 of Secure Water Act, projects that are considered normal operations, maintenance, and replacement (OM&R) are not eligible for funding under this NOFO. OM&R is described as system improvements that replace or repair existing infrastructure or function without providing increased efficiency or effectiveness of water distribution over the expected life of the improvement. Examples of ineligible OM&R projects include:
  • Replacing malfunctioning components of an existing facility with the same components
  • Improving an existing facility to operate as originally designed
  • Performing an activity on a recurring basis, even if that period is extended (e.g., a 10-year interval)
  • Sealing expansion joints of concrete lining because the original sealer or the water stops have failed
  • Sealing cracks in canals and/or pipes, including those sealant projects intended to improve facilities with inherent design and construction flaws
  • Replacing broken meters with new meters of the same type
  • Replacing leaky pipes with new pipes of the same type
  • Completion of one-time leak detection surveys
• Water Conservation Projects: Projects primarily focused on water conservation are not eligible under this NOFO, including:
  • Lining or piping canals to conserve water.
  • Installing landscape irrigation measures.
  • Turf replacement.
  • Water metering and measurement projects are ineligible as a standalone project but may be included if it is a necessary subcomponent of an eligible project type.
• Water Reclamation, Reuse, and Desalination: Projects or project components that are required to comply with the Comprehensive Environmental Response, Compensation, and Liability Act or the Resource Conservation and Recovery Act are not eligible for funding under this program.
  • Any projects or project elements that are part of a congressionally authorized Title XVI Water Reclamation or Reuse Project are not eligible for funding under this NOFO.
  • Any projects or project elements that are part of a water desalination or recycling project eligible for funding under Section 4009(a) or 4009(c) of the WIIN Act, P.L. 114-322 are not eligible for funding under this NOFO.
  • In addition, if a water desalination, reclamation, or recycling project has a total estimated project cost of more than $20 million, that project is not eligible under this NOFO and should be pursued under the Title XVI Water Reclamation and Reuse Program or the WaterSMART Desalination Planning and Construction Program. Note, this applies to phases or project elements of a desalination, reclamation, or recycling project that are part of a larger project with a total estimated project cost of more than $20 million.
  • See the Title XVI-Water Reclamation and Reuse webpage, https://www.usbr.gov/watersmart/title/titlexvi.html, for more information.
• Small Surface Water and Groundwater Storage Projects: An application for funding of a small surface or groundwater storage project (including groundwater recharge, injection wells, and aquifer storage and recovery wells) with a total estimated project cost of more than $10 million, or that is a phase of a larger project that exceeds $10 million, is not eligible under this NOFO. Applicants proposing such projects may wish to consider Reclamation’s Small Storage Program. See the Small Storage Program webpage, https://www.usbr.gov/smallstorage/, for more information.
• Water, Land Purchases, and Easements: The purchase of water, land, or land with the primary purpose to secure a permanent easement, are not eligible under this NOFO and cannot be included as part of the non-federal cost-share.
• Emergency Drought Response Projects: Emergency drought response projects that provide temporary benefits, including projects involving temporary facilities (e.g., temporary pipes and pumps), water hauling services, and water purchases. Applicants seeking funding drought emergency relief should request emergency drought assistance under Reclamation’s Drought Response Program. See the WaterSMART Drought Response Program webpage, www.usbr.gov/drought/, for more information.
• Building Construction: Proposals to construct a building are not eligible for Federal funding under this NOFO (e.g., a building to house administrative staff or a building to house promotion of public awareness for water conservation).
• Pilot Projects: Proposals to conduct a pilot study to evaluate technical capability, economic feasibility, or viability for full-scale implementation or to test an unproven material or technology are not eligible for Federal funding under this NOFO.
• On-Farm Improvements: Projects to conduct on-farm improvements are not eligible under this NOFO. Applicants interested in on-farm improvements should contact the U.S. Department of Agriculture’s Natural Resources Conservation Service (NRCS) to investigate opportunities for Federal assistance. For more information on NRCS programs, including application deadlines and a description of available funding, please contact your local NRCS office or see www.nrcs.usda.gov for further contact information in your area.
  • Applicants interested in projects for water delivery systems improvements that will enable farmers to make additions on-farm improvements in the future should consider Reclamation's Water and Energy Efficiency Grants. See the WaterSMART Water and Energy Efficiency Grants webpage, https://www.usbr.gov/watersmart/weeg/index.html, for more information.
• Projects Receiving Other Federal Financial Assistance: Proposals for projects or activities that are funded under another Federal Financial Assistance agreement are not eligible for funding under this NOFO.

Multiple Applications - Multiple applications for funding may be submitted for consideration under this funding opportunity, provided that the project scopes are not duplicative. No more than $1,500,000 will be awarded to a Category A applicant under this NOFO. Category B applicants may be awarded up to a total of $3,000,000 given that the Category A partners are not duplicative on projects selected for award.

In general, if you are seeking funding for multiple project components, and the components are interrelated or closely related (e.g., a project to construct a new storage and conveyance system coupled with a decision support tool for operation of the system), you should combine these in one application. However, if the projects are only loosely related or are independently operated, you should submit them as separate applications.

Technical Assistance - Technical assistance should be discussed with Reclamation staff prior to applying. By request, Reclamation can provide technical assistance after award of the project. If you plan to receive Reclamation’s assistance, you must account for these costs in your budget. To discuss available assistance and associated costs, contact the Program Coordinator identified in the Have Questions section above.

For more information regarding WaterSMART Drought Response Program, including previously funded projects and applications, visit https://www.usbr.gov/drought/.

Buy America Preferences for Infrastructure Projects This program has Federal funding for infrastructure projects. Buy America preferences apply to Federal awards for infrastructure projects in the United States. Reference 2 CFR Part 184 - Buy America Preferences for Infrastructure Project for further guidance.

Projects funded under this NOFO are subject to the following Buy America preferences:

• All iron and steel products used in the project must be produced in the U.S., including beams, bars, rods, and tubing.
• All manufactured products must be made in the U.S., requiring substantial transformation and final assembly in the country.
• All construction materials, such as cement and concrete, must be sourced domestically.

Buy America preferences need to be taken into consideration when developing the project budget.

Legislative Authority

• Section 9504(a) of the Secure Water Act, Subtitle F of Title IX of the Omnibus Public Land Management Act of 2009, Public Law (P.L.) 111-11 (42 United States Code [U.S.C.] 10364), as amended.
• Title I of the Reclamation States Emergency Drought Relief Act of 1999, P.L. 102-250, (43 U.S.C. Section 2201, et seq.), as amended.

Type of Award

Projects will be funded through CA (Cooperative Agreement), G (Grant). Recipient should expect the Federal agency to have substantial involvement in the project. Awards will be made through a grant or cooperative agreement, depending on the project. If a cooperative agreement is awarded, the recipient should expect Reclamation to have substantial involvement in the project. This may include collaboration or participation in the management of the project and/or review, input, and approval during implementation of the project.

PREPARE YOUR APPLICATION

Application Content and Format

Pre-Application Requirements

Prior to applying, applicants should review presidential actions found at: https://www.whitehouse.gov/presidential-actions/ and DOI Secretary’s Orders found at: https://www.doi.gov/document-library/secretary-order. By applying in response to this Notice of Funding Opportunity, the applicant certifies awareness and compliance with all currently effective and applicable executive orders and secretary’s orders, including, but not limited to the Executive Order titled Ending Radical and Wasteful Government DEI Programs and Preferencing as well as the Executive Order and Secretary’s order titled Restoring Truth and Sanity to American History. Applicants are responsible for ensuring their proposed activities are consistent with the intent and requirements of these directives.

To be eligible under this NOFO for a Drought Contingency Plan, applicants must participate in a technical consultation with the Reclamation Drought Coordinator before submitting an application. During this technical consultation, the Reclamation Drought Coordinator will discuss the six required elements of a drought plan or plan update (as outlined in Attachment C), planning steps, and eligible tasks. Reclamation reserves the right to remove an application from consideration if a technical consultation was not completed. To schedule a technical consultation, contact the program coordinator identified in Have Questions.

Application Documents

Applicants must submit the following forms with their application as specified below. Instructions for accessing and submitting application forms are provided in the Submission Instructions section of this document below. For instructions on completing form fields, see the form instructions on the Grants.gov Forms Repository.

| Forms/Assurances/Certifications | Submission Requirement