Small Storage Program: $43.5 Million for Western Water Storage Projects

The Bureau of Reclamation's Small Surface Water and Groundwater Storage Projects program (Small Storage Program) provides federal cost-share funding for water storage projects across the Western United States. With $43.5 million available and individual awards up to $30 million, the program offers water districts, local governments, and tribal organizations the chance to plan, design, and construct critical water infrastructure.

What is the Small Storage Program?

Authorized by Section 40903 of the Infrastructure Investment and Jobs Act (IIJA), Public Law 117-58, the Small Storage Program funds surface water and groundwater storage projects that enhance water supply reliability across the 17 western states, Alaska, and Hawaii. The program is administered by the Bureau of Reclamation under the U.S. Department of the Interior.

Surface water and groundwater storage are essential tools for stretching limited water supplies in the Western United States. These projects enhance and increase the reliability of municipal and irrigation water supplies, provide opportunities for groundwater management, and deliver water quality improvements and ecosystem benefits.

Who Can Apply?

The Small Storage Program is open to a range of non-federal entities located in the 17 western Reclamation states, Alaska, or Hawaii. Eligible applicants include:

• State governments
• County governments
• City or township governments
• Special district governments (water conservation districts, conservancy districts, wastewater districts, rural water districts)
• Native American tribal governments (Federally recognized)
• Native American tribal organizations
• Nonprofits with 501(c)(3) status (other than institutions of higher education)
• State, regional, or local water authorities
• Joint powers authorities organized under state law

Eligible Projects

To be eligible for funding, projects must meet all of the following requirements:

• Storage capacity between 200 acre-feet and 30,000 acre-feet
• Increase yield to identified beneficiaries
• Increase surface water or groundwater storage, or convey water to or from storage
• Submit a feasibility study to Reclamation for review by February 13, 2026

The feasibility study must meet the requirements of Reclamation's CMP TRMR-127 and be approved by Reclamation before the merit review can begin.

Funding can be used for planning, design, and/or construction of eligible storage projects. The program supports both surface water storage (reservoirs, dams) and groundwater storage (aquifer recharge, managed aquifer storage) projects.

Cost Sharing Requirements

The Small Storage Program has strict cost-sharing requirements that applicants must understand:

• Federal share: Up to 25% of total project cost
• Non-federal share: At least 75% of total project cost

Applicants may meet their cost-share through:

• Cash contributions
• Costs contributed directly by the applicant
• Third-party in-kind contributions (non-cash contributions of property or services from non-federal third parties)

Important: Other federal funding received for the project generally cannot count toward the non-federal cost share, with limited exceptions for programs like tribal awards under PL 93-638. Applicants should secure cost-share funding from sources outside their organization (such as loans or state grants) and ensure it is available before the award.

Priority Criteria

The Secretary of the Interior gives priority to proposals that meet one or more of the following criteria:

• Projects providing more reliable water supply for states, Indian Tribes, and local governments
• Projects increasing water management flexibility and reducing environmental impacts from projects operated by federal and state agencies
• Projects that are regional in nature
• Projects with multiple stakeholders
• Projects providing multiple benefits, including water supply reliability, ecosystem benefits, groundwater management, and water quality improvements

How Applications Are Evaluated

Applications are scored on a 100-point scale across five evaluation criteria:

Criterion 1: Water Supply Reliability (35 points)

The highest-weighted criterion evaluates how the project secures and stretches reliable water supplies. This includes two sub-criteria:

• Enhanced Water Supplies (20 points): How much additional storage capacity the project adds, reduction in reliance on imported water, contribution to sustainable groundwater yield, and measurable performance metrics
• Contributions to Water Supply (15 points): How the project addresses drought resilience, water shortages, groundwater depletion, and water quality issues

Criterion 2: Water Management Flexibility (16 points)

• Operational Flexibility (10 points): Improvements to water supply management, water quality protection, environmental impact minimization, and habitat benefits
• Legal and Contractual Obligations (6 points): Whether the project helps fulfill Reclamation's legal obligations, protects threatened or endangered species, or reduces dependence on Colorado River Basin imports

Criterion 3: Benefits to Rural Communities (12 points)

Projects serving rural communities (under 50,000 people) with economic growth, employment, water quality, and tribal water supply benefits.

Criterion 4: Stakeholder Support (12 points)

Collaborative partnerships, alignment with regional or state water plans, public outreach, and resolution of competing interests. Documented tribal support is also considered.

Criterion 5: Economic Benefits (25 points)

• Cost Effectiveness (15 points): Cost per acre-foot of water delivered compared to alternative supply options
• Economic Analysis and Project Benefits (10 points): Quantified and qualitative project benefits including water supply, recreation, ecosystem, flood risk, and energy efficiency benefits

Application Requirements

Applications must be submitted through Grants.gov and include:

• SF-424, Application for Federal Assistance
• SF-424A, Budget Information (Non-Construction Programs)
• SF-LLL, Disclosure of Lobbying Activities (if requesting over $100,000 in federal funds)
• Project Abstract Summary (OMB 4040-0019)
• Project Narrative (up to 125 pages, 11-point font minimum, 1-inch margins)
• Budget Narrative with detailed cost justifications
• Letters of commitment from cost-share sources

The Project Narrative must include a title page, table of contents, executive summary, project location with maps, project schedule, detailed project description, evaluation criteria responses, and budget narrative.

Key Dates and Deadlines

• Feasibility Study Submission: February 13, 2026 (to Reclamation for review)
• Application Deadline: April 17, 2026, 4:00 PM MDT
• Award Notifications: April 2026 (anticipated)
• Anticipated Project Start: October 1, 2026
• Anticipated Project End: October 31, 2029

Tips for a Competitive Application

1. Start with Required Registrations Early

Ensure your organization has an active SAM.gov registration and Unique Entity Identifier (UEI). SAM.gov registration can take several months. You must also be registered on Grants.gov with an Authorized Organization Representative (AOR) — allow 30 days for this process.

2. Submit Your Feasibility Study by February 13

Your feasibility study must meet CMP TRMR-127 requirements and be found acceptable by Reclamation before your application enters merit review. This is a prerequisite — missing this deadline could disqualify your application regardless of its quality.

3. Focus on Water Supply Reliability

At 35 out of 100 points, water supply reliability is the most heavily weighted criterion. Quantify additional storage capacity in acre-feet, demonstrate reduction in imported water dependence, and show measurable drought resilience benefits.

4. Demonstrate Cost Effectiveness

Provide detailed cost-per-acre-foot calculations and compare your project to alternative water supply options. Include construction costs by year, operation and maintenance costs, replacement costs, and the maximum volume of new water available annually.

5. Secure and Document Cost-Share Commitments

With a 75% non-federal cost-share requirement, demonstrating committed funding is critical. Include letters of commitment identifying funding amounts, availability dates, and any contingencies.

6. Build Multi-Stakeholder Support

Regional projects with multiple stakeholders receive priority. Include letters of support from partner organizations, tribal governments, and community stakeholders. Describe collaborative partnerships and public outreach efforts.

7. Comply with Buy America Requirements

As an infrastructure project funded under the Bipartisan Infrastructure Law, Buy America preferences apply. All iron, steel, manufactured products, and construction materials must be American-made per 2 CFR Part 184. Davis-Bacon prevailing wage requirements also apply to construction work.

Program Contact Information

• Application & Submission Questions: bor-sha-fafoa@usbr.gov
• Eligibility Questions: Austin Olah, aolah@usbr.gov or 303-445-3240
• Website: usbr.gov/smallstorage
• Reference: Include NOFO number R25AS00270 in all correspondence

How Avila Can Help

Preparing a competitive Small Storage Program application is a substantial undertaking. The 125-page narrative, detailed budget analysis, cost-per-acre-foot calculations, and five evaluation criteria require significant technical expertise and coordination across multiple stakeholders.

Avila's AI-powered platform helps water authorities and local governments streamline the grant application process by:

• Analyzing NOFOs to identify key requirements and evaluation criteria
• Helping draft narratives that align with scoring rubrics
• Tracking deadlines and compliance requirements
• Managing the complete grant lifecycle from discovery to closeout

Ready to explore how Avila can support your Small Storage Program application? Book a demo to learn more about our platform.

For more information on federal grant applications, see our guides on federal grant writing, SAM.gov registration, and Grants.gov registration.