Bureau of Reclamation Announces Investments in Colorado River Basin Water Projects

The water challenges confronting the western United States are severe. The Colorado River and the rivers, streams and groundwater supplies that feed it are stressed and depleted by growing populations and ongoing drought. Investments from the federal government are essential to help states manage limited water resources as well as the increasingly severe wildfires and other natural disasters that are exacerbated by hotter and drier conditions.

To help Upper Colorado River Basin communities mitigate the impacts of drought, the Bureau of Reclamation announced a grant program for Upper Basin Bucket 2 Environmental Drought Mitigation grant program.   In January 2025, the Bureau of Reclamation announced it is awarding $388 million in grants under this program to support projects that will restore struggling rivers, streams, forests and wetlands in the Upper Basin states of the Colorado River Basin. This funding demonstrates the impressive strides the Bureau of Reclamation has taken to ensure that critical funding from the Inflation Reduction Act (IRA) is put to work on drought mitigation efforts across the Colorado River Basin. Unlocking and administering this funding is no small feat and has significant benefits for the Upper Colorado River Basin. These projects will create healthier and more resilient landscapes and communities, which in turn enable communities to better prepare for and manage the impacts of long-term drought and ensure clean water supplies are available now and in the future.

This initial investment of the federal funding allocated for western water needs under the Upper Basin Bucket 2 Environmental Drought Mitigation (Bucket 2E) provision of the IRA will support a diverse range of communities within the Colorado River Basin, including rural and Tribal communities, who have been disproportionately impacted by drought.

This groundbreaking investment reflects what NGOs and Colorado River Basin communities have long been advocating for: a holistic approach that recognizes the importance of a healthy environment to address the ongoing water crisis in the Colorado River Basin. With continued support from the federal government, western states can help ensure that communities in the Colorado River basin states have the water resources they need for  future generations. These funds are a great first step in helping communities mitigate the impacts of drought and other natural hazard risks.

Here are some of the projects that will receive funds:

• • Watershed Resiliency in the Colorado River Headwaters (WY): Up to approximately $8.6m: Funding is provided for fish passage improvements and the restoration of wet meadows, increasing groundwater recharge and extending baseflows vital for greater sage-grouse and boreal toads while improving water quality and reducing sediment loads.

• • San Juan Water Lease Agreement: Up to approximately $6.1m (NM): Funding is provided to enhance water security by leasing water annually from Navajo Reservoir, benefiting native fish species such as the Colorado pikeminnow and razorback sucker through improved habitat and flow conditions in the San Juan River.

• • Drought Resiliency on Western Colorado Conserved Lands (CO): Up to approximately $4.6m: Funding is provided to implement various ecological restoration strategies, including the restoration of wetlands, reconnection of floodplains, the installation of erosion control structures to reduce sediment transport and enhance water quality, while promoting habitat restoration for at-risk species like the yellow-billed cuckoo and Gunnison sage-grouse.

• • Matheson Wetland Enhancement Drought Mitigation Project (UT): Up to approximately $21m: Funding is provided to revitalize essential wetland habitats along the Colorado River and enhancing water supply and quality, it fosters a resilient ecosystem for diverse wildlife. Funding includes the construction of a tertiary wastewater treatment facility, restoring wetlands and enhancing species habitat, including endangered fish and migratory birds.

• • Process-Based Restoration of Drought Impacted Riverscapes in the Upper Colorado River Basin: Up to $33.2m (multistate): Funding is provided for 124 identified sites to enhance drought resilience in the Upper Colorado River Basin through restoration efforts across multiple states. By implementing effective ecological practices, it targets critical habitats and improves water quality for various species. The project will remove invasive species that deplete water resources and implement low-tech restoration techniques to foster sustainable ecosystem recovery.

The grants provide a critical down payment towards a healthier Colorado River Basin. But more is needed. Addressing the magnitude of the challenges we face requires ongoing support for long-term, large-scale water projects like these.  By continuing to use funds allocated for western water projects under the IRA, and providing more long-term funding opportunities, the federal government can help create a more secure water future for the west.

Photo: Colorado River, Kremmling. Credit: Russ Schnitzer, SchnitzerPhoto