# Summary of S. 2162, the STREAM Act
The Support To Rehydrate the Environment, Agriculture, and Municipalities Act (STREAM Act) authorizes $1.55 billion in federal funding through fiscal year 2029 to support water infrastructure projects in western reclamation states. The bill expands federal cost-sharing for water storage, recycling, and desalination projects while creating new competitive grant programs to help states and local agencies build water supplies and improve drought resilience.
The legislation funds four main categories of water infrastructure: storage and conveyance projects ($750 million), water recycling projects ($300 million), desalination projects ($150 million), and drinking water assistance for disadvantaged communities ($100 million). It establishes new eligibility criteria for non-federal storage projects, including natural water retention initiatives like aquifer recharge and floodplain restoration, with federal cost-sharing up to 90 percent for certain natural projects. The bill also authorizes $250 million for ecosystem restoration and habitat protection activities.
Key provisions include requiring the Interior Department to submit annual reports to Congress on feasible storage projects, allowing temporary water transfers to fund drought resilience and dam safety investments, and establishing performance-based contracting authority for habitat restoration. The legislation modifies existing drought assistance programs and extends authorization for desalination research and the California Bay-Delta restoration program through 2028. All funded projects must comply with federal and state environmental laws.
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