On Friday, January 23, 2026, President Trump signed the FY 2026 Energy and Water Development Appropriations bill into law, delivering unprecedented support for the U.S. water power sector. This year’s bill includes the highest funding levels ever recorded for the Department of Energy’s (DOE) Water Power Program, a direct result of sustained advocacy from National Hydropower Association (NHA) members and partners.

The FY 2026 Energy and Water Appropriations bill passed the House on January 8, 2026, by a resounding 397 – 28 roll call vote, and on January 15, 2026, the Senate passed the legislation by a vote of 82-15.

NHA’s CEO and President, Malcolm Woolf, commented on the bill’s progression:

“Funding for water power in this year’s minibus is strong and historic. 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 will continue to work with Congress, DOE, and our members on ensuring these funds are deployed effectively, helping keep water power at the forefront of America’s energy abundance agenda.

The United States Capitol building. (Photo Credit – Wikimedia)

WHAT’S IN THE FY26 ENERGY AND WATER BILL?

Historic Funding for Hydropower

• $79 million (total) 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; the below items are part of the overall $79 million for hydro and pumped storage:
  • 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.
  • 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.

Hoover Dam Receives Needed Investment

A bipartisan provision in the FY26 Energy and Water Development bill would unlock about $50 million in long‑stranded hydropower‑funded dollars for long‑overdue repairs at Hoover Dam, directly benefiting the hydropower industry by stabilizing power rates, reducing future maintenance backlogs, and ensuring more reliable generation as drought and aging equipment threaten output.

By amending the Boulder Canyon Project Act, the measure gives the Bureau of Reclamation new authority to spend funds already paid by hydropower customers on operations, maintenance, and capital upgrades, offering a rare, near‑term win for utilities that rely on Hoover’s output across the Southwest. The provision referenced that was included in the FY26 Energy and Water Development Act is the Help Hoover Dam Act (H.R. 3158).

The Hoover Dam (Photo Credit – National Hydropower Association)

Unprecedented Support for Marine Energy

• The bill delivers no less than $141 million (total) for marine energy, the highest level ever for the program; the below items are part of the overall $141 million for marine energy:
  • 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.

Guests visit PacWave’s facilities in Newport, Oregon. (Photo Credit – NHA)

This historic funding for water power wouldn’t have been possible with the House and Senate Appropriations Committee, including Chair Collins, Vice Chair Murray, Chairman Cole, and Ranking Member DeLauro, for showing a commitment to both hydro and marine energy while demonstrating appreciation for it ability to provide 24/7 reliable power to Americans.

As we look ahead to Water Power Week 2026, these investments will be critical to advancing hydropower and marine energy innovation, deployment, and workforce development. It also demonstrates how effective our industry can be when we come together and advocate for the water power industry and share our story with lawmakers in Washington.

KEEP UP THE MOMENTUM WITH WATER POWER WEEK

Attendees at Water Power Week 2025 listen to a panel featuring FERC Commissioners. (Photo Credit – NHA)

Water Power Week 2026 is the premier opportunity for the hydropower and marine energy community to come together, celebrate our historic policy achievements, and chart the course for future success. By participating, you’ll help ensure that our industry’s voice remains strong in Washington, D.C., while educating policymakers about the value of water power.

With unprecedented funding now secured, NHA stresses the importance of continued engagement with federal agencies. Whether you’re sharing your priorities or advocating for effective implementation of these programs, your involvement will help sustain the momentum we’ve built, drive innovation, and secure a resilient, clean energy future for all.

To learn more about Water Power Week, click here.

If you have any additional questions about NHA’s advocacy, please do not hesitate to reach out to the NHA legislative team at [email protected] and [email protected] for more information.