- Federal officials released $40 million for the Shoshone Water Rights Preservation Project.
- The project is designed to help protect flows on the Colorado River.
- Nearly all of the $99 million purchase price has now been secured.
- Colorado leaders say the project could help farmers, ranchers, and river communities during dry years.
Tuesday, May 26, 2026 — For more than a century, the Shoshone Hydropower Plant near Glenwood Canyon has quietly influenced water flows across Colorado’s Western Slope.
On May 22, 2026, federal officials announced a major milestone in a long-running effort to permanently protect those water rights.
The U.S. Department of the Interior released $40 million in federal funding for the Shoshone Water Rights Preservation Project, helping move the deal much closer to completion.
According to the Colorado River District
, the funding brings the total amount secured for the purchase to $97 million out of the $99 million needed.
Historic Water Rights at the Center of the Deal.
The project centers on water rights tied to the historic Shoshone Hydropower Plant, which is owned by Public Service Company of Colorado, a subsidiary of Xcel Energy.
In 2023, the Colorado River District entered into an agreement to purchase the rights for $99 million.
Supporters say preserving the rights could help maintain steady flows in the Colorado River system, especially during dry periods.
The Shoshone call is one of the oldest and most powerful water rights on the river in Colorado, and it has long affected river operations upstream and downstream.
Colorado Leaders Praise the Funding Release.
Congressman Joe Neguse called the funding release “a monumental step forward for the health of the Colorado River and everyone who depends on it.”
He said the project “will have a generational impact on the farmers, ranchers, and communities” on Colorado’s West Slope.
Senator John Hickenlooper also praised the decision, saying Colorado continues to face serious water challenges.
“Thanks to the Inflation Reduction Act, this funding will support the Shoshone Permanency Project’s efforts to protect the Colorado River, especially during dry years,” Hickenlooper said.
Funding Had Been Frozen.
The funding had previously been frozen in early 2025 along with other western water projects.
Colorado lawmakers from both parties spent months urging federal officials to release the money.
According to Hickenlooper’s office, seven of the original 17 Colorado drought-resiliency projects have now received more than $99 million combined, though additional projects are still awaiting funding.
A Broad Coalition Backed the Project.
Colorado River District General Manager Andy Mueller described the funding release as “a major breakthrough” and praised the broad coalition supporting the effort.
That coalition includes more than 100 water providers, local governments, conservation groups, and regional entities.
The River District said another major step was completed in November 2025 when Colorado’s water board unanimously approved the use of the water rights within the state’s instream flow program.
The district has also filed a change case in Colorado water court to allow the rights to continue supporting both hydropower production and river flows.
Long-Term Colorado River Protection.
While the project still must complete final contracting steps, supporters say the funding announcement marks one of the biggest recent investments in long-term Colorado River protection efforts.
