Washington, D.C. — This week, the U.S. Senate passed three bicameral, bipartisan fiscal year appropriations bills: the Commerce, Justice, Science, and Related Agencies; Energy and Water Development; and Interior, Environment, and Related Agencies bills — also known as the “minibus.” The bill now heads to the president’s desk for signature to become law.
Within the Energy and Water Development legislation, water power secured robust levels of funding for the research, development and deployment of marine energy, conventional hydropower, and pumped storage hydropower.
“Funding for water power in this year’s minibus is strong and historic,” said NHA’s President and CEO, Malcolm Woolf. ” It includes record investments in the Water Power Technologies Office (WPTO), which will speed up the development and deployment of innovative technologies like marine energy. This in turn helps meet energy demand across the country, especially in remote communities. NHA also welcomes the Committee’s attention to the U.S. Army Corps of Engineers and recognizing the importance of supporting our nation’s federal hydropower assets. NHA applauds the House and Senate Appropriations Committee, including Chair Collins, Vice Chair Murray, Chairman Cole, and Ranking Member DeLauro, for showing a commitment to water power and an appreciation for its ability to provide 24/7 reliable power to Americans.”
What’s in the FY26 Energy and Water Bill?
Historic Funding for Hydropower
- The bill provides $250,000 for the Grid Deployment Office to facilitate the continued implementation of the hydroelectric incentives program and disbursement of previously awarded grant funds.
- $79 million for hydropower and pumped storage activities, the highest level since the program was restarted in FY 2008. These funds will support industry-led research, demonstration, and deployment of innovative technologies.
- Up to $10 million is dedicated to advanced analytics for hydropower optimization, including machine learning-based hydrologic forecasts and operations.
- $15 million is allocated to establish a network of new and existing hydropower testing facilities, accelerating technology validation and commercialization.
Unprecedented Support for Marine Energy
- The bill delivers no less than $141 million for marine energy, the highest level ever for the program.
- Up to $30 million is available for competitive solicitations to rapidly design, fabricate, and test marine energy systems, with a focus on projects nearing market adoption.
- Directive language is included instructing DOE to spend previously awarded funds for tidal energy grant awardees.
- $9 million is provided for the Testing Expertise and Access for Marine Energy Research (TEAMER) Initiative and $1,000,000 for the University Marine Energy Research Community (UMERC) Initiative.
- $15 million is included for infrastructure upgrades at marine energy technology testing sites, and up to $10 million to initiate operations at PacWave.
- $20 million is provided for foundational research at the National Marine Energy Centers and affiliated universities, with an additional $10 million for operations to support market adoption and workforce development.
- $24 million is provided for the Powering the Blue Economy initiative, leveraging national lab capabilities in partnership with universities and industry.
- Up to $60 million is available for core marine energy R&D at national laboratories, supporting research, demonstration, and validation across power at sea, community, and utility scales.
