What Happened?
Federal money that helps towns and cities pay for flood control, shoreline protection, and ecosystem restoration is still flowing, even though the Trump administration asked Congress to cut it entirely.
The Congressional Research Service (CRS), Congress's nonpartisan in-house research arm, reported that Congress set aside $33.1 million for the Army Corps of Engineers' Continuing Authorities Programs (CAPs) in fiscal year 2026, despite the administration's budget request calling for zero dollars.
CAPs are the main way local governments and nonprofits can apply for federal water infrastructure help without needing a separate act of Congress for each project.
Why Does it Matter to Me?
If your community faces flooding or eroding shorelines, CAPs are the federal route for flood control and shoreline protection, and they carry cost-sharing requirements.
Congress directed the $33.1 million in fiscal 2026 funding across several sections, with Section 204 receiving $18.0 million, Section 107 receiving $6.5 million, and Section 111 receiving $3.1 million. Shore protection and flood control channel clearing received no annual funding this cycle.
In fiscal 2025, the administration funded just one CAP project through regular annual appropriations: a $23 million Section 111 project at Camp Ellis in Saco, Maine. It also directed nearly $100 million in disaster supplemental funds toward flood-related CAPs.
Both Sides, Now
Supporters point to evidence that local demand already outpaces what the program can fund, with the Army Corps receiving more project requests than available money in prior years.
The administration's position, reflected in its fiscal 2026 budget, is that CAPs should receive no annual appropriation, part of a broader proposal to cut the Army Corps' overall budget by roughly $2 billion, from about $8.70 billion to $6.66 billion.
Opponents of zeroing out the program argue that cutting it would leave communities without a key federal route to pursue local flood-control, shoreline-protection, and ecosystem-restoration projects. Congress, not the administration, holds the power to set final spending levels.
What Happens Next?
Two bills that would reshape CAPs cleared their respective committees unanimously this summer.
The Senate version of the Water Resources Development Act of 2026 would simplify the review process for CAP projects and exempt them from certain environmental documentation requirements. The House version of the Water Resources Development Act of 2026 would authorize new CAP work on flood control improvements and drought resiliency.
Both bills now await a vote by their full chambers and would need to pass Congress and be signed by the president before any new CAP rules take effect. Will Congress send a final bill to the president before communities waiting on water projects run out of time?
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