S. 3732 — Water Security and Drought Resilience Act

This section authorizes the Secretary of the Interior to provide financial assistance for water storage projects in any Reclamation State. It makes eligible for such funding any project with a feasibility study authorized under section 40902(a)(1)(B)(i) of the Infrastructure Investment and Jobs Act, and requires the assistance to be distributed across multiple Reclamation States.

This section expands eligibility for grants under the small storage program to projects with 200 to 30,000 acre-feet of storage capacity that increase surface or groundwater storage or convey water to or from storage, and to groundwater recharge projects with 200 to 150,000 acre-feet of average annual capacity that increase aquifer storage or convey or recover water from storage. It requires the Secretary to distribute grants across multiple Reclamation States, extends the program's termination date to 10 years (from 5 years), and authorizes $20 million annually for fiscal years 2027 through 2033. It also provides that the program does not affect state or federal water law, authorize federal water acquisition, or infringe on water rights.

This section authorizes the Secretary of the Interior to award grants to eligible entities, including states, Indian Tribes, water districts, and qualified nonprofit partners in Reclamation States, for natural water retention and release projects that use natural materials to increase water availability through aquifer recharge, floodplain retention, or similar methods. The federal cost share may not exceed 90 percent, funds are nonreimbursable, grants must be distributed across multiple Reclamation States, and $15 million is authorized annually for fiscal years 2027 through 2031.