This bill amends federal water infrastructure law to expand support for water storage and drought resilience projects across the western United States. It authorizes the Secretary of the Interior to provide financial assistance for water storage projects in any Reclamation State, while ensuring funding is spread across multiple states rather than concentrated in just one, and gives the Secretary new authority to conduct or participate in feasibility studies for both federal and state-led storage projects. The bill also creates a new grant program through the Bureau of Reclamation to fund natural water retention and release projects, such as aquifer recharge and floodplain restoration, that improve water storage using natural materials and processes. States, tribes, water districts, and eligible nonprofit partners can apply for these grants, with federal funding capped at 50% of project costs on a non-reimbursable basis; larger projects exceeding $20 million require additional verification that they provide water storage benefits in wet, normal, and dry years. Overall, the legislation aims to strengthen water supply reliability and drought preparedness nationwide by broadening eligibility for federal support and encouraging both traditional and nature-based infrastructure solutions, while ensuring funds are distributed equitably across multiple Reclamation States rather than favoring any single region.