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             Congressional Research Service
   ~ Inforrming the legislative debate since 1914


                                                                                                   March 30, 2023

Bureau of Reclamation: FY2024 Budget and Appropriations


Overview
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). These
projects provide water to approximately 10 million acres of
farmland and 31 million people. Reclamation is the largest
wholesale supplier of water in these 17 states and the
second-largest hydroelectric power producer in the nation.
Reclamation's mission areas and geographic scope are
narrower than those of the other principal federal water
resource agency, the U.S. Army Corps of Engineers.

Reclamation has evolved since its creation in 1902; its
focus has shifted from construction of new water storage
projects to operation and maintenance (O&M) of existing
projects. Reclamation also has expanded into new areas,
such as funding water projects on tribal lands and in rural
areas. Congress also has authorized new Reclamation grants
for nonfederal projects, including those for water reuse and
recycling, desalination, conservation and efficiency, and
restoration, among other purposes.

Reclamation's Water and Related Resources account funds
most agency activities, including construction, O&M, dam
safety, ecosystem restoration, Indian water rights
settlements, and most programmatic and grant authorities.
Reclamation typically 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.

FY2024 Budget and Appropriations
The Administration budget request for Reclamation is
usually for a lower amount than the final enacted total of
annual appropriations. For FY2024, the President requested
$1.45 billion in current budget authority (i.e.,
appropriations before offsets) for Reclamation. The Energy
and Water Development  and Related Agencies
Appropriations Act, 2023 (Division D of the Consolidated
Appropriations Act, 2023, P.L. 117-328), provided $1.93
billion for Reclamation. Figure 1 shows recent
Reclamation annual appropriations levels.

In addition to regular appropriations, Congress has provided
Reclamation with supplemental appropriations that may
factor into FY2024 appropriations considerations. The
Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58)
included $8.30 billion in supplemental appropriations for
various infrastructure-focused Reclamation expenditures.
This funding is to be made available in equal installments
from FY2022  to FY2026  (i.e., $1.66 billion per year). P.L.
117-169 (popularly known as the Inflation Reduction Act,


IRA) provided an additional $4.59 billion for Reclamation,
including $4.00 billion for western drought mitigation with
priority given to actions in the Colorado River Basin. IIJA
funding is no year funding, meaning it remains available
until expended; IRA funding is to remain available until
FY2026  or FY2031, depending on the provision.
Reclamation has been gradually allocating IIJA funding in
spend plans for each fiscal year and is releasing IRA
funding on a rolling basis.

Figure  1. Reclamation Annual  Appropriations  from
FY20  1 5 to FY2023 and FY2024  Budget  Request
(nominal $ in millions)
    $2,000


    $1,500


    $1,000


    $500
      $o



                         iscam Yar
       . Water and Related Resources  All Other Accounts

Source: CRS, based on FY2015-FY2023 enacted appropriations and
the FY2024 President's Budget request.
Notes: Does not reflect supplemental funding or offsetting receipts.

Earmarks and Reclamation
Most of Reclamation's budget goes to projects rather than
programs, and the Water and Related Resources account
consists largely of individual project funding lines. During
the 112th1 116th Congresses, Reclamation appropriations
were subject to general earmark moratoriums that
restricted Congress from funding geographically specific
project line items not requested by the Administration.
Instead, Congress included additional funding amounts
for selected categories of Reclamation projects, typically in
five categories: Rural Water, Water Conservation and
Delivery, Environmental Restoration and Compliance, Fish
Passage/Fish Screens, and Facilities Maintenance and
Rehabilitation. The Administration recommended
allocations of these funds for specific projects in spend
plans made available several months after enactment of the
appropriations bills. (Spend plans are available at
http://www.usbr.gov/budget/.)

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