- $4.89 billion requested for Clean Water State Revolving Fund.
- Major investments proposed for flood mapping, dam safety, and fish passage.
- Environmental justice and tribal water access highlighted.
- Nature-based solutions prioritized across multiple programs.
Monday, July 28, 2025 — On July 24, 2025, American Rivers
released its recommended budget for fiscal year 2026, outlining funding priorities aimed at protecting and restoring the nation’s rivers, watersheds, and drinking water infrastructure. The proposal was developed in partnership with the American Rivers Action Fund and includes program-by-program recommendations for Congress to consider during its annual appropriations process. The fiscal year runs from October 1, 2025, through September 30, 2026.
Addressing Aging Water Infrastructure.
One of the central recommendations in the fiscal year 2026 river budget is to increase federal investment in water infrastructure. American Rivers is urging Congress to allocate $4.89 billion for the Clean Water State Revolving Fund and $4.38 billion for the Drinking Water State Revolving Fund. These programs provide essential loans and grants to states for the construction and maintenance of public water systems, wastewater treatment plants, and other critical infrastructure.
The budget document cites low grades from the American Society of Civil Engineers for the nation’s drinking water and stormwater systems, which received ratings of C-minus and D, respectively. These ratings reflect outdated infrastructure, water contamination risks, and service gaps in many communities.
Funding for Flood Resilience.
American Rivers also recommends robust funding for flood mitigation and mapping. The proposal includes $2 billion for the Federal Emergency Management Agency’s Building Resilient Infrastructure and Communities (BRIC) program, $313 million for flood hazard mapping, and $175 million for the Flood Mitigation Assistance Grant Program.
The organization advocates for nature-based approaches to flood management, including wetland restoration, reconnecting floodplains, and preserving native vegetation. According to the proposal, these methods are not only cost-effective but also help build long-term resilience in flood-prone areas.
Environmental Justice and Tribal Access.
To improve equity in water access, American Rivers is calling for $180 million to pilot the Low Income Household Water Assistance Program and $50 million for the Indian Reservation Drinking Water Program. These initiatives are designed to provide financial and technical assistance to underserved communities, especially those facing chronic water insecurity.
Additionally, $109 million is recommended for Environmental Protection Agency programs that support environmental justice efforts at the state, tribal, and local levels.
Protecting Rivers and Ecosystems.
A range of programs supporting habitat restoration and ecological health are featured in the budget. American Rivers proposes:
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$56 million for the National Oceanic and Atmospheric Administration’s Community-Based Restoration Program.
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$18.6 million for the National Fish Passage Program.
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$15 million for the Bureau of Reclamation’s Aquatic Ecosystem Restoration and Protection Program.
These programs help remove outdated dams, improve fish migration, and restore aquatic habitats. For example, a highlighted project in Maryland would remove the Cypress Branch Dam to reopen miles of river habitat for blueback herring and alewife.
The organization also recommends $20 million for high-hazard dam safety grants and $13.9 million for the National Dam Safety Program administered by the Federal Emergency Management Agency.
Support for Rural and Agricultural Communities.
The United States Department of Agriculture is another key agency in the river budget. Recommendations include:
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$5.48 billion for the Environmental Quality Incentives Program.
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$2.5 billion for the Conservation Stewardship Program.
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$497 million for the Rural Water and Waste Disposal Program.
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$51 million for Watershed and Flood Prevention Operations.
These investments would assist farmers, ranchers, and rural communities in improving land management, reducing nutrient runoff, and upgrading water systems.
The Legislative Process Ahead.
The budget recommendations are not binding. Congress will use them as part of the larger appropriations process that determines funding levels for federal agencies each fiscal year. Lawmakers will review, debate, and amend agency-specific appropriations bills in the House and Senate before voting on a final version, which must then be signed into law by the president.
American Rivers and its partners are urging swift action, arguing that the current era of extreme weather, water scarcity, and infrastructure decay requires immediate and sustained federal leadership.
The full document, titled River Budget: National Priorities for Healthy Rivers and Clean Water in Fiscal Year 2026, is available at https://www.americanrivers.org/wp-content/uploads/2025/07/FY26-River-Budget-combined-FINAL.pdf
