The US Senate has approved a fiscal year 2026 spending package that includes record funding levels for hydropower and pumped storage programs, marking the largest federal investment in the sector since the program was reinstated in 2008. The legislation, part of a bipartisan “minibus” covering multiple government departments, now moves to the president for final approval.
The Energy and Water Development portion of the bill increases federal support for water-based renewable energy, including conventional hydropower, pumped storage, and marine energy. Lawmakers said the funding is intended to accelerate technology development, expand grid reliability, and support energy infrastructure across the United States.
“Funding for water power in this year’s minibus is strong and historic,” said NHA’s President and CEO, Malcolm Woolf. ” It includes record investments in the Water Power Technologies Office (WPTO), which will speed up the development and deployment of innovative technologies like marine energy. This in turn helps meet energy demand across the country, especially in remote communities. NHA also welcomes the Committee’s attention to the U.S. Army Corps of Engineers and recognizing the importance of supporting our nation’s federal hydropower assets. NHA applauds the House and Senate Appropriations Committee, including Chair Collins, Vice Chair Murray, Chairman Cole, and Ranking Member DeLauro, for showing a commitment to water power and an appreciation for its ability to provide 24/7 reliable power to Americans.”
Funding for hydropower and pumped storage
The legislation allocates $79m for hydropower and pumped storage activities, the highest level since the program was restarted in fiscal year 2008. The funding will support industry-led research, demonstration projects, and deployment of new technologies.
An additional $250,000 is designated for the Grid Deployment Office to support the continued implementation of the federal hydroelectric incentives program and the distribution of previously awarded grant funding.
Up to $10m is allocated for advanced data analytics to improve hydropower performance, including machine learning-based hydrologic forecasting and operational tools. The bill also includes $15 million to establish a national network of hydropower testing facilities aimed at accelerating technology validation and commercialization.
Marine energy funding
The Energy and Water bill also provides at least $141m for marine energy programs, the highest funding level ever approved for the sector.
Up to $30m is set aside for competitive project solicitations focused on the rapid design, fabrication, and testing of marine energy systems that are nearing commercial readiness. The legislation also directs the US Department of Energy to distribute previously awarded funding to tidal energy grant recipients.
Additional allocations include $9m for the Testing Expertise and Access for Marine Energy Research (TEAMER) initiative and $1m for the University Marine Energy Research Community (UMERC) initiative.
The bill includes $15m for infrastructure upgrades at marine energy testing sites and up to $10m to begin operations at the PacWave testing facility. It also provides $20m for foundational research at National Marine Energy Centers and affiliated universities, along with an additional $10m to support operations focused on workforce development and market adoption.
Other funding includes $24m for the Powering the Blue Economy initiative and up to $60m for core marine energy research and development at national laboratories.
