Section 1. Short title
This Act may be cited as the Drought Relief Obtained Using Government Help Today Act of 2026 or the DROUGHT Act of 2026.
Section 2. Federal assistance for certain water infrastructure projects
Section 5029(b)(9) of the Water Infrastructure Finance and Innovation Act of 2014 (33 U.S.C. 3908(b)(9)) is amended by adding at the end the following:
(i) In general
Notwithstanding subparagraph (A), the total amount of Federal assistance for a covered project for which assistance is provided under this subtitle shall not exceed 90 percent of the total project cost.
(ii) Priority
In carrying out this section, the Secretary or the Administrator, as applicable shall prioritize financing for covered projects.
(iii) Definitions
In this subparagraph, the term covered project means a project described in paragraph (6) or (7) of section 5026—
(I) that is located in—
(aa) a State that has been designated as D2 (severe drought) or greater according to the United States Drought Monitor for a minimum of 4 weeks during the 5-year period preceding the date on which assistance is provided for the project under this subtitle; or
(bb) a county for which a drought emergency has been declared by the applicable Governor at any time during such period;
(II) that serves—
(aa) an area in which, on the date on which assistance is provided for the project under this subtitle, the average household income is at or below 200 percent of the poverty threshold established by the Bureau of the Census; or
(bb) an area that meets the affordability criteria established by a State pursuant to section 1452(d)(3) of the Safe Drinking Water Act (42 U.S.C. 300j12(d)(3)) or section 603(i)(2) of the Federal Water Pollution Control Act (33 U.S.C. 1383(i)(2)); or
(III) that the Secretary or the Administrator, as applicable, has designated to be a project of regional or national significance because the project demonstrably—
(aa) increases drinking water supply capacity or reliability;
(bb) enhances water reuse or recycling;
(cc) reduces regional water usage;
(dd) lowers costs to ratepayers; or
(ee) provides substantial public health or environmental benefits.