WaterSMART Drought Response Program

The Bureau of Reclamation, under the U.S. Department of the Interior, administers the WaterSMART Drought Response Program to support water entities in enhancing drought resiliency and managing limited water resources across the western United States and U.S. territories. The 2026 funding opportunity, issued under Funding Opportunity Number R26AS00016, aligns with federal strategic priorities for sustainable water management and infrastructure modernization. The program aims to assist applicants in developing and implementing actions that bolster water supply reliability, improve drought preparedness, and mitigate the impacts of water shortages through both infrastructure investment and planning initiatives. The program is divided into two main funding categories—Task A and Task B. Task A supports infrastructure projects that enhance water management flexibility and improve access to alternative water supplies. Eligible infrastructure investments include conveyance system modifications, groundwater recharge and recovery, development of alternative water sources through treatment and reuse, and storage improvements such as off-stream ponds or tanks. Task B focuses on water management and planning efforts, including the development of modeling tools, decision-support systems, and drought contingency plans. Drought planning efforts must incorporate six core elements including drought monitoring, vulnerability assessments, mitigation and response actions, and an operational framework. Projects must be located in the western U.S. or eligible territories. Category A applicants include state and local governments and entities with water or power delivery authority. Category B applicants—nonprofit conservation organizations—must partner with a Category A entity. All applicants are subject to a cost-sharing requirement of 50% of total project costs unless otherwise exempted (e.g., for specific U.S. territories). Funding is offered in two tiers: Group I projects are eligible for up to $500,000, and Group II projects may receive up to $1.5 million in federal support. Approximately 8–20 awards will be made, depending on available appropriations and project scopes. Applicants must complete registrations in SAM.gov and Grants.gov and submit required forms including SF-424, SF-424A, and SF-LLL where applicable, along with a project abstract, detailed narrative, budget narrative, and, for Category B applicants, a letter of partnership. Planning projects require prior consultation with a Reclamation Drought Coordinator to confirm eligibility and planning structure. Applications must be submitted electronically through Grants.gov by July 28, 2026, at 4:00 p.m. MDT. The evaluation process includes eligibility and merit reviews based on defined criteria such as severity of drought, project benefits, planning support, readiness, nexus to Reclamation, federal priorities, infrastructure focus, and cost-sharing commitment. Each application is scored on a 100-point scale, with emphasis on quantifiable outcomes, stakeholder collaboration, and alignment with federal mandates. Awards will be issued via grants or cooperative agreements, with significant federal involvement expected in cooperative agreements. Notifications are anticipated in Winter 2027, and selected projects should commence no earlier than July 28, 2027. Funded projects must comply with all relevant environmental and cultural preservation laws, and no ground-disturbing activities may occur until a formal Notice to Proceed is issued. All funded infrastructure must comply with Buy America provisions, and reporting requirements will include performance metrics and federal financial reports. This NOFO does not support temporary emergency measures, water conservation-only projects, or pilot efforts. The WaterSMART program continues to play a pivotal role in helping western water stakeholders transition from crisis response to proactive drought preparedness and resilience planning.

Provide quantifiable benefits; Follow all merit review criteria; Consult with Drought Coordinator if applying for planning funds; Budget for environmental compliance