A bill to amend Public Law 89-108 to modify the authorization of appropriations for State and Tribal, municipal, rural, and industrial water supplies, and for other purposes.

On March 10, 2026, Senators Hoeven (R-ND), Padilla (D-CA), and Cramer (R-ND) introduced S.4040, the 'Dakota Water Resources Act Amendments of 2026.' The bill authorizes $637 million in new appropriations for specific water infrastructure projects in North Dakota: $120 million for the Northwest Area Water Supply Biota Water Treatment Plant and Pump Station, $404 million for the McClusky Canal and Missouri River North Alternative for the Eastern North Dakota Alternate Water Supply Project, $50 million for the Southwest Pipeline Project, and $63 million for rural water distribution expansion. The bill has been referred to the Senate Committee on Energy and Natural Resources, and a hearing was held by the Subcommittee on Water and Power on March 17, 2026. An identical companion bill (HR8006) has been introduced in the House, increasing the probability of eventual enactment. The money trail: This is an authorization bill, not an appropriations bill. It sets a $637 million spending ceiling but does not allocate actual funds. Actual money requires a future appropriations bill from the House and Senate Appropriations Committees. However, authorization bills signal congressional intent and create the legal framework for future spending. The four specific projects named in the bill each have existing environmental impact studies (Records of Decision and Environmental Assessments dating from 2009 to 2021), meaning environmental review is largely complete, which accelerates the project timeline once appropriations are made. Structural winners: Water utilities ($WTRG, $CWT) benefit from the overall positive signal for federal water infrastructure investment, though neither has direct North Dakota exposure. Materials and industrial companies supplying water filtration products could see incremental demand from treatment plant construction. Construction and engineering firms specializing in water infrastructure would be the primary direct beneficiaries, though no publicly traded pure-play water construction firms are captured in the provided market data. Real market data context: $WTRG is trading at $39.63, up 1.72% over 7 days, reflecting positive sentiment toward water infrastructure. $CWT at $46.53 is up 3.38% over 30 days, indicating steady investor interest in regulated water utilities. at $146.03 is up 2.09% over 30 days, showing modest positive momentum. The presidential DPA actions on April 20, 2026 (energy infrastructure and grid components) are tangential to this water bill—they focus on energy sector production rather than water, but the broader executive focus on infrastructure investment supports the narrative of federal infrastructure spending. Timeline: The bill is in early committee stage. Next steps: full committee vote in the Senate Energy and Natural Resources Committee, then Senate floor vote. The companion bill HR8006 is in the House Natural Resources Committee. If both chambers pass their versions, a conference committee would reconcile differences before sending to the President. Given that this is an authorization bill (not a must-pass spending bill), the timeline is uncertain but likely extends into 2027. The bipartisan sponsorship and single jurisdiction (Energy and Natural Resources) increase the probability of passage, likely in the 70-80% range within this Congress.