Section 50231 of the IRA appropriates $550 million to the DOI, through the Commissioner of Reclamation, to remain available through September 30, 2031, for grants, contracts, and other financial assistance agreements for disadvantaged communities.
The determination of a disadvantaged community shall be made based on criteria adopted by the Commissioner of Reclamation. The primary purpose of projects under this section is to provide domestic water supplies to households or communities that do not have reliable access to the same. The costs, planning, design, or construction of water projects under this section shall be 100% funded by this appropriation.
To qualify, the communities must be located in the following states or territories:
1) Arizona
2) California
3) Colorado
4) Idaho
5) Kansas
6) Montana
7) Nebraska
8) Nevada
9) New Mexico
10) North Dakota
11) Oklahoma
12) Oregon
13) South Dakota
14) Texas
15) Utah,
16) Washington
17) Wyoming
18) American Samoa
19) Guam
20) Northern Mariana Islands
21) Virgin Islands
Eligible Entities:
Environmental Justice Considerations:
This IRA provision is expected to fund up to one hundred percent of costs associated with planning and building domestic water supply projects for disadvantaged communities and households without access to a reliable domestic water supply.
Current Status:
Trump Administration Actions:
- Litigation Compliance Report Indicates DOI Released Some Previously Frozen Awards [04/23/2025]
- DOI Secretary Issues Order to Review IRA Regulations and Spending [02/03/2025]
- OMB Orders Temporary Pause on Financial Assistance Programs, Later Rescinded [01/27/2025]
- OMB Clarifies Scope of the Order to Halt IRA Spending [01/21/2025]
- Trump Issues Executive Order to Halt All IRA Funding Disbursements [01/20/2025]
Implementation Status at End of Biden Administration:
DOI has awarded over $400 million of the appropriated $550 million. Thus far, grants have been awarded to tribal communities, states, and territories. Approximately $150 million of the appropriated funds are still available.
Biden Administration Actions:
- DOI Announces $82 Million in Water Access Grants for Tribal Communities [10/31/2024]
- DOI Announces $320 Million for Tribal Domestic Water Infrastructure [04/02/2024]
- DOI Announces Continued Commitment to Protecting Stability and Sustainability of Colorado River [05/24/2023]
- White House Releases IRA Guidebook for Tribes [04/04/2023]
- DOI Announces Tribal Consultation on the IRA [12/28/2022]
- DOI Hosts Public Meeting on Drought Relief Programs [09/30/2022]