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Congressional Research Service
Informing the legisiitive debate since 1914


                                                                                                     June 18, 2026

Bureau of Reclamation: FY2027 Budget and Appropriations


The Bureau of Reclamation (Reclamation), part of the
Department of the Interior, is responsible for the
construction and operation of hundreds of large dams and
water diversion structures in the 17 western Reclamation
States, as designated in statute (43 U.S.C. §391).
Reclamation is the largest wholesale supplier of water in
these 17 states and the second-largest hydroelectric power
producer in the nation.

Reclamation's Water and Related Resources account funds
most agency activities, as well as the agency's
programmatic and grant authorities (e.g., water reuse and
recycling, desalination, conservation/efficiency).
Reclamation also receives funding for three smaller
accounts: California Bay-Delta Restoration, the Central
Valley Project Restoration Fund (which is offset by
customer receipts), and Policy and Administration.

FY2027 Budget and Appropriatons
Most Administrations have typically requested a lower
amount  for Reclamation than the final enacted total for
Reclamation's annual appropriations. The FY2027 budget
proposed $1.275 billion in current budget authority for
Reclamation, or $352 million (22%) less than the $1.627
billion in annual discretionary appropriations that Congress
approved for FY2026 in P.L. 119-74. H.R. 9022, the
House-reported FY2027  Energy and Water Development
and Related Agencies Appropriations bill, recommended
$1.838 billion for Reclamation (Figure 1).

Figure  I. Bureau of Reclamation Annual
Appropriations,  FY20 I 8-FY2027
      All Other   Ater &    oRelated  . Ir0 l tion-Adjusted
      Acco -,unts Resources Account   Total
 $ in millions
 $2,000O

 $1,500  

   1,000  

   $500           >   >

                             / <p

                                                -9

Source: CRS, based on FY2018-FY2026 enacted appropriations,
FY2027 budget request (FY27 Req) and H.R. 9022 (FY27 Hse).
Inflation adjustment based on FY2027 budget request, Historical
Table 10.1.
Notes: CR= continuing resolution. Amounts do not reflect
supplemental funding or offsetting receipts.


Recent Supplemental Funding
Congress has approved supplemental appropriations for
Reclamation in recent years, typically with direction to
prioritize and/or allocate funds toward specific types of
Reclamation activities that also receive annual discretionary
appropriations. The Infrastructure Investment and Jobs Act
(IIJA; P.L. 117-58) included $8.3 billion for Reclamation in
various categories in equal installments from FY2022 to
FY2026  and available until expended. P.L. 117-169 (also
known  as the Inflation Reduction Act) provided
Reclamation $4.6 billion in funding (available through
FY2026  or FY2031, depending on the section), including
$4.0 billion for drought mitigation. P.L. 119-21 (also
referred to as the One Big Beautiful Bill Act) included $1.0
billion for Reclamation (available through FY2034) for
projects that enhance capacity at Reclamation surface water
storage facilities.

Additional  Funding  and  Earmarks
Reclamation's Water and Related Resources account
consists largely of individual project funding lines. During
the 112th-116th Congresses, congressional earmark
moratoriums restricted funding for project line items not
requested by the Administration. Congress responded by
including additional funding amounts for specified
categories of Reclamation projects (e.g., Water
Conservation and Delivery) that were allocated for specific
projects in spend plans made available after enactment of
the appropriations bills.

Recent Congresses have recommended  earmarks-typically
categorized as community projectfunding in the House or
congressionally directed spending in the Senate-in
addition to providing additional funding amounts above
the President's budget request (Figure 2). In FY2027, the
House report (H.Rept. 119-667) included additional funding
amounts for rural water ($58 million), fish passage and fish
screens ($3 million), water conservation and delivery ($355
million), and environmental restoration or compliance ($28
million). For water conservation and delivery funding,
House report language specified subsets of funding for
emergency  canal repair construction ($50 million),
Colorado River conservation ($50 million), and Indian
water rights settlements ($50 million), plus $205 million for
Section 4007 projects (see below). The House report also
included five earmarks totaling $16.8 million.