The Urban Canal Modernization Act amends federal law to authorize the Secretary of the Interior to fund major repair and maintenance work on aging urban canals that pose public safety risks. The bill specifically targets "urban canals of concern"—canal segments where failure could endanger more than 100 people—and allows the federal government or local canal operators to undertake necessary extraordinary maintenance work on these critical infrastructure projects. For non-emergency repairs, the federal government will cover 35 percent of costs at no cost to local operators, while advancing the remaining 65 percent as a loan to be repaid by the local operating entity responsible for the canal. The legislation essentially expands the Interior Department's authority to address deteriorating urban canal infrastructure by providing both grant funding and favorable loan terms, with repaid funds counting toward local cost-sharing requirements for other federal grants.
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