Deadline Approaching! Apply for Bureau of Reclamation’s Annual WaterSMART Drought Response Program for Versatile Funding Opportunities

The Bureau of Reclamation’s (BOR) WaterSMART Program provides financial assistance to states, tribes, and local entities to support water management improvements and projects that increase water supply through investment to modernize existing infrastructure in the Western United States. Through WaterSMART, the BOR Drought Response Program offers grant funding opportunities for projects that build long-term resilience to drought. The BOR’s WaterSmart Drought Response Program NOFO (Notice of Funding Opportunity) invites eligible applicants to submit proposals for projects designed to improve drought resilience by developing effective water management strategies and drought contingency plans. This outline provides an overview of the application process and requirements and is not intended to be comprehensive. Please refer to the program’s official NOFO when applying.  

• The application is open until July 28, 2026, 4:00 p.m. Mountain Daylight Time (MDT)
• 50% non-Federal cost sharing is required for the grant. For New Mexico applicants, the New Mexico Match Fund is available.
• The total program funding is $13,500,00 with an expected award number of 8-20 awardees.
• Individual award ceiling is $1,500,000 and award floor is $25,000.

Applicant eligibility falls into two categories:

Category A (must be in Western US or US Territories):

• States, Indian Tribes, irrigation districts, and water districts;
• State, regional, or local authorities, whose members include one or more organizations with water or power delivery authority; and
• Other organizations with water or power delivery authority.

Category B

• Nonprofit conservation organizations that are acting in partnership with and with the agreement of an entity described in Category A.

Ineligible applicants include but are not limited to:

• Federal Governmental entities
• Individuals
• Institutes of higher education

Before applying

1. Register at SAM.gov:
   • If not already, register in Sam.gov and obtain a Unique Entity Identifier (UEI).
   • This process can take up to several months, so if your organization is not yet registered, start as soon as possible.
   • This program accepts applications through Grants.gov. Once you receive your UEI return to Grants.gov to register with Grants.gov. Please allow 30 days to register and set up a Workspace in Grants.gov.
2. Identify your project Task Area:
   • Task A: Infrastructure projects
     • System modifications or improvements. Projects include, but are not limited to
       • Constructing or modifying surface water intakes to access supplies when water levels are low (e.g., at dead pool), or to allow access at different locations.
       • Constructing new conveyance system components (pipelines, canals, pumping plants, etc.) to increase delivery flexibilities, facilitate voluntary water marketing, or to deliver water from alternative sources
       • Developing or expanding surface water storage facilities such as off-stream storage ponds.Installing water towers and storage tanks to store water for municipal and domestic use.
     • Developing alternative water supply sources through the treatment and reuse of surface water and reclaimed water. Projects include, but are not limited to:
       • Constructing or expanding water treatment facilities to treat impaired surface water, municipal wastewater or stormwater runoff for later beneficial use.
       • Constructing stormwater capture and reuse systems, including stormwater infrastructure solutions such as rain gardens, cisterns, and bioswales.Installing residential grey water and rain catchment systems.
     • Groundwater recovery and treatment projects. Projects include, but are not limited to:
       • Constructing or rehabilitating a well to provide back-up water supplies during times of drought.
       • Constructing an extraction well at groundwater banks or other recharge areas to improve extraction and return capabilities during dry years.
       • Constructing an aquifer storage and recovery well.
     • Storing water and/or recharging groundwater supplies. Projects include, but are not limited to:
       • Treating impaired groundwater for beneficial use.
   • Task B: Water Management and Planning Projects
     • Developing water management, water marketing, and modeling tools. Projects include, but are not limited to:
       • Developing new models or improving existing models for analyzing and predicting drought conditions.
       • Developing water budgets and tiered pricing programs that incentivize decreased consumptive use.
       • Assessing water quality with respect to the level of drought to determine appropriate measures to protect water quality for fish and wildlife, agriculture, and human consumption (e.g., water quality testing or constructing groundwater monitoring wells).
       • Developing tools to facilitate water marketing, connecting willing sellers and willing buyers that want to participate in the buying, selling, leasing, or exchanging of water.
     • Developing or updating Drought Contingency Plans (comprehensive drought plans).
       • Drought contingency planning efforts are to develop and update comprehensive drought plans designed to build resilience to drought in advance of a crisis. Applicants under this NOFO may request funding to develop a new drought plan or to update an existing drought plan (collectively, Drought Contingency Plans).
   • Ineligible Projects:
     • Operations, maintenance, and replacement
     • Water conservation projects
     • Water reclamation, reuse, and desalination
     • Small surface water and groundwater storage projects
     • Water, land purchases, and easements
     • Emergency drought response projects
     • Building construction
     • Pilot projects
     • On-farm improvements
     • Projects receiving other federal financial assistance

Key points to remember

• Projects funded under this NOFO are subject to Buy America Requirements.
• By applying in response to this NOFO, the applicant certifies awareness and compliance with all currently effective and applicable executive orders and secretary’s orders. Applicants are responsible for ensuring their proposed activities are consistent with the intent and requirements of these directives.
• To be eligible under this NOFO for a Drought Contingency Plan, applicants must participate in a technical consultation with the Reclamation Drought Coordinator before submitting an application.

Preparing your application

1. Gather required forms/assurances/certifications:
   • SF-424A Budget Information
   • SF-LLL, Disclosure of Lobbying Activities
   • Project Abstract Summary
2. Prepare a Project Narrative including the following elements:
   • Title page
   • Table of contents
   • Executive summary
   • Project location
   • Technical project description
   • Merit review criteria (listed in table below)
   • Letters of support
   • Letter of partnership (Category B Applicants)
   • Budget narrative
   • Program cost restrictions
   • Environmental and regulatory compliance costs
   • Conflict of interest and unresolved matters disclosure
   • Overlap or duplication of effort statement
   • Letters of commitment

NOTE: It is recommended that applicants directly copy and paste the criteria in their application, answering applicable questions to their project and removing any irrelevant merit review questions.

Award notices

Notices of Federal Award are sent electronically via GrantSolutions or e-mail.

In Conclusion

Grants through the BOR’s Drought Response Program provide a wide range of opportunities for communities to fund infrastructure projects as well as water management and planning projects to help them become more resilient to drought. While time is short to take advantage of this opportunity this funding cycle, if your utility already has a Sam.gov UEI and is registered with Grants.gov then there is still time. If you have any questions or need any assistance with applying for this NOFO, don’t hesitate to reach out to the Environmental Finance Center Network.

Questions?

Examples of previously selected applications can be found here.

For more information regarding the Drought Program, please contact Sheri Looper at slooper@usbr.gov or contact Shelbie Neff at sneff@usbr.gov.You can schedule a meeting with the BOR for any program inquiries here.