WaterSMART Drought Response Grant: $13.5M for Western Water Projects

The Bureau of Reclamation is offering $13.5 million through the WaterSMART Drought Response Program to help Western communities build drought resilience. This program funds infrastructure projects and water management planning efforts that increase water supply reliability, improve drought preparedness, and support long-term sustainability for communities facing water scarcity.

With drought conditions continuing to impact water supplies across the Western United States, this grant provides critical funding for states, tribes, irrigation districts, and water districts to invest in system modifications, alternative water supply sources, groundwater recovery, and drought contingency planning.

Two Funding Groups

The program is structured into two funding groups based on award size:

• Funding Group I: Awards up to $500,000 in federal funding. Projects in this group are typically smaller-scale infrastructure improvements or planning efforts.
• Funding Group II: Awards from $500,001 to $1,500,000 in federal funding. These larger awards support more complex infrastructure projects and comprehensive drought response initiatives.

Category A applicants (states, tribes, and water districts) may receive up to $1.5 million. Category B applicants (nonprofit conservation organizations) may receive up to $3 million when partnering with multiple non-duplicative Category A entities.

Who Can Apply?

Eligibility is divided into two categories, and applicants must be located in or serve Western US states:

Category A: Direct Applicants

• States and state agencies
• Federally recognized Indian Tribes and Tribal organizations
• Irrigation districts and water districts
• Any other organization with water or power delivery authority located in the Western United States

Category B: Nonprofit Conservation Organizations

• Must partner with at least one Category A entity
• Can receive up to $3 million when working with multiple non-duplicative partners
• Must demonstrate the partnership advances drought resilience in the Western US

Eligible Western States

The following states and territories are eligible: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Kansas, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, Wyoming, American Samoa, Guam, the Northern Mariana Islands, and the U.S. Virgin Islands.

What Does the Grant Fund?

The program supports two distinct task areas. Applicants should select the task area that best matches their project.

Task A: Drought Resiliency Infrastructure Projects

Task A funds construction and implementation of infrastructure that builds long-term drought resilience. Eligible activities include:

• System Modifications - Modifications to existing water supply infrastructure to improve drought resilience, such as canal lining, pipeline upgrades, or system interconnections
• Water Storage - Construction of new water storage facilities or expansion of existing storage capacity
• Alternative Supply Sources - Development of alternative water supply sources such as water recycling, desalination, or conjunctive use facilities
• Groundwater Recovery - Projects that increase groundwater supplies through aquifer recharge, recovery wells, or related infrastructure

Task A projects must include a detailed implementation plan, design documentation, and environmental compliance information. Projects that are further along in design will score higher under the Readiness to Proceed criterion.

Task B: Drought Contingency Planning and Water Management

Task B funds planning and management activities that help communities prepare for and respond to drought. Eligible activities include:

• Decision Support Tools - Development of modeling, forecasting, and decision support systems for drought response
• Drought Contingency Plans - Development or update of comprehensive drought contingency plans that include all six required elements (monitoring, vulnerability assessment, mitigation actions, response actions, operational and administrative framework, and plan update process)

If your project includes a Drought Contingency Plan, you must contact the Reclamation Drought Coordinator in your area for a pre-application technical consultation before submitting. Contact bor-sha-fafoa@usbr.gov for coordinator information.

What's NOT Eligible

The following project types are not eligible under this program:

• Operations and maintenance activities
• Water conservation projects (these are funded under a separate WaterSMART program)
• On-farm irrigation improvements
• Emergency drought response or disaster recovery
• Building construction (offices, facilities)
• Pilot projects or research studies
• Projects that already have other federal funding for the same scope of work

Cost Sharing Requirements

This program requires a 50% non-federal cost share. For every dollar of federal funding requested, applicants must provide at least one dollar of non-federal match. For example, a project requesting $500,000 in federal funding must have at least $500,000 in non-federal contributions, for a total project cost of $1,000,000.

Eligible cost share sources include:

• Cash contributions from the applicant or partners
• In-kind contributions (staff time, equipment, materials) at fair market value
• Third-party contributions from state or local agencies

Other federal funds cannot be used as cost share. Projects that contribute more than the minimum 50% cost share may receive additional points under the Cost Share Priority criterion (up to 5 bonus points).

How Applications Are Scored

Applications are evaluated on a 100-point scale across eight criteria:

A. Severity of Drought and Impacts (15 points)

Describe the severity of drought conditions in your area, including specific impacts on water supply, agricultural production, municipal use, and environmental resources. Include data on recent drought conditions and how the project addresses these specific impacts.

B. Project Benefits (20 points)

Demonstrate the expected benefits of the project, including improvements to water supply management, increased operational flexibility, and enhanced drought resilience. Provide quantitative estimates of water supply benefits where possible.

C. Planning and Support (10 points)

Show that the project is supported by existing planning efforts (such as a drought contingency plan, water management plan, or watershed plan) and has diverse stakeholder support. Include letters of support from partners and stakeholders.

D. Readiness to Proceed (15 points)

Provide a detailed implementation schedule with milestones and dates. Describe the status of engineering design, permitting, environmental compliance, and any land acquisition. Projects further along in design and permitting will score higher.

E. Nexus to Reclamation (5 points)

Describe any connection to Bureau of Reclamation projects, activities, or tribal trust responsibilities. Include contract numbers for water service, repayment, or O&M agreements if applicable.

F. Presidential and Department of Interior Priorities (20 points)

Demonstrate how the project aligns with current administration priorities, including energy development, AI technology adoption, and water management in Reclamation States. Priority is given to projects in the Colorado River Basin.

G. Construction Priority (10 points)

For infrastructure projects (Task A), describe the hard infrastructure construction components. Projects that deliver durable, long-term improvements in water reliability and resilience will be prioritized.

H. Cost Share Priority (5 points)

Projects that contribute non-federal cost share exceeding the minimum 50% by at least 5 percentage points may receive additional points. State your non-federal funding percentage using: Non-Federal Funding / Total Project Cost.

Buy America Requirements

Infrastructure projects funded under this program are subject to Buy America preferences. This means that iron, steel, manufactured products, and construction materials used in the project must be produced in the United States. Applicants should factor these requirements into their budget planning and procurement processes.

Construction Start Limitations

For Task A infrastructure projects, construction activities cannot begin until at least 12 months after the application submission deadline (July 28, 2027 at the earliest). Environmental and cultural resources compliance must be completed before any ground-disturbing activities can begin. Plan your project schedule accordingly.

Application Requirements

Key Dates

• NOFO Published: March 5, 2026
• Application Deadline: July 28, 2026, 4:00 PM MDT
• Anticipated Award Notification: Winter 2027
• Anticipated Project Start: July 28, 2027
• Anticipated Project End: October 3, 2030

Mandatory Documents

Applications must be submitted through Grants.gov and include:

1. Application for Federal Assistance (SF-424)
2. Budget Information for Construction Programs (SF-424C) for Task A, or Non-Construction Programs (SF-424A) for Task B
3. Project Narrative (maximum 35 pages)
4. Budget Narrative
5. Letters of support and partnership documentation

Project Narrative Requirements

The project narrative must not exceed 35 pages and should address all eight scoring criteria. Task A applicants respond to Task A-specific sub-criteria, and Task B applicants respond to Task B-specific sub-criteria. Your narrative should include:

• Technical project description and scope of work
• Drought severity data and water supply impact analysis
• Quantified project benefits and expected outcomes
• Supporting planning documentation (attach relevant plan sections as appendices)
• Detailed implementation schedule with milestones
• Environmental and cultural compliance status
• Engineering design status and permitting progress
• Budget justification for all cost categories

Getting Started with Your Application

1. Determine your eligibility - Confirm your organization qualifies as a Category A or Category B applicant in an eligible Western state
2. Select your task area - Choose Task A (infrastructure) or Task B (planning/management) based on your project scope
3. Contact your Reclamation Drought Coordinator - Required for Drought Contingency Plan projects, recommended for all applicants to discuss compliance requirements
4. Gather drought impact data - Compile data on drought severity, water supply impacts, and community effects in your area
5. Secure cost share commitments - Document non-federal funding sources totaling at least 50% of the total project cost
6. Obtain letters of support - Gather stakeholder and partner commitment letters
7. Advance design and permitting - For Task A projects, progress engineering design as far as possible before the deadline
8. Verify SAM.gov registration - Ensure your organization has an active UEI and SAM.gov registration
9. Submit by July 28, 2026 - Applications must be received by 4:00 PM MDT through Grants.gov

How Avila Can Help

Applying for the WaterSMART Drought Response Program requires a detailed 35-page narrative addressing eight scoring criteria, extensive budget documentation, and supporting data on drought severity. Avila's AI-powered platform helps organizations streamline the grant writing process by:

• Tracking grant opportunities like this Bureau of Reclamation program from federal databases
• Analyzing eligibility requirements and matching them to your organization's profile
• Generating draft narratives based on program requirements and your organizational data
• Ensuring compliance with page limits, formatting, and content requirements

With the application deadline on July 28, 2026, now is the time to start preparing your project narrative and securing cost share commitments. Contact Avila today to learn how our platform can help you secure funding for drought resilience in your community.