The Water Resources Development Act (WRDA) serves as the primary vehicle through which Congress authorizes U.S. Army Corps of Engineers civil works projects and establishes policy frameworks for water resource development nationwide. Enacted on a biennial schedule, WRDAs provide congressional authorization for USACE to conduct feasibility studies, construct flood risk reduction projects, improve navigation infrastructure, restore aquatic ecosystems, and assist with environmental infrastructure development.

Since the enactment of WRDA 1986, Congress has used these omnibus authorization bills to both create new USACE authorities and refine existing programs based on evolving national priorities and lessons learned from program implementation. Recent WRDAs have addressed critical issues including drought resilience, water supply development, infrastructure modernization, and support for economically disadvantaged communities.

The most recent legislation, the Water Resources Development Act of 2024 (WRDA 2024, P.L. 118-272), continued Congress's bipartisan commitment to strengthening America's water infrastructure by authorizing new construction projects, modifying existing authorities, and establishing updated policy guidance for USACE operations. WRDA 2024 also authorized five new regional environmental infrastructure programs, each incorporating flexible delivery mechanisms that allow federal assistance to be provided through grants or reimbursements to nonfederal sponsors.

Authorization through WRDA is typically a prerequisite for USACE activities to receive federal appropriations through the annual Energy and Water Development appropriations process. This two-step framework—authorization followed by appropriation—ensures congressional oversight of both program scope and funding levels.

Section 219 of WRDA 1992, as amended, represents one of USACE's most geographically expansive environmental infrastructure assistance authorities. Originally enacted to authorize design assistance for 18 specific projects, Section 219 has been amended by subsequent Congresses to authorize both design and construction assistance for water-related environmental infrastructure in hundreds of municipalities, counties, and states across the nation.

The Congressional Research Service has identified over 600 environmental infrastructure assistance authorities with cumulative authorizations of appropriations totaling approximately $18.1 billion. Section 219 authorities constitute the majority of these geographically specific project authorizations, covering at least 46 states, the District of Columbia, and four U.S. territories.

Section 219 projects address critical community needs including wastewater treatment facilities, water supply and distribution systems, stormwater management infrastructure, surface water protection, and environmental restoration. These projects support public health, environmental quality, and economic development in communities that have secured congressional authorization for USACE assistance.

Congress has continued to expand Section 219 in recent legislation. WRDA 2022 added 132 new Section 219 authorities and amended 24 existing authorities. WRDA 2024 authorized an additional 193 new Section 219 authorities and amended 53 existing authorities, providing a combined $5.4 billion increase in authorization of appropriations. WRDA 2024 also established a seven-year pilot program to increase the federal cost share from 75 percent to 90 percent for Section 219 projects benefiting economically disadvantaged communities.

Unlike traditional USACE water resource projects, Section 219 assistance does not require completion of the agency's standard feasibility study process. However, projects receiving Section 219 assistance must comply with applicable federal environmental laws, including the National Environmental Policy Act.

Under current law, Section 219 authorizes USACE to provide assistance to nonfederal interests in two specific forms: technical assistance and planning and design assistance. The statute explicitly requires that if USACE provides design or engineering assistance, the agency must obtain all necessary services through procurement from private sources unless the service requires new technology unavailable in the private sector or a solicitation fails to attract at least two bids.

The federal cost share for Section 219 projects is established at 75 percent federal and 25 percent nonfederal, subject to ability-to-pay provisions. The nonfederal sponsor must provide all lands, easements, rights-of-way, relocations, and disposal areas necessary for construction, operation, and maintenance. The nonfederal sponsor assumes 100 percent responsibility for operations and maintenance of completed facilities.

USACE and nonfederal sponsors execute partnership agreements before USACE provides assistance under Section 219. These agreements establish the specific scope of work, cost-sharing arrangements, and respective responsibilities of federal and nonfederal parties.

From FY2020 through FY2025, Congress appropriated between $100 million and $300 million annually for environmental infrastructure assistance across all USACE authorities. Appropriations have been provided both through Community Project Funding/Congressionally Directed Spending requests for specific projects and through additional funding that USACE allocates among eligible authorities in work plans.

However, the current statutory framework limits the form in which federal assistance can be delivered under Section 219. Unlike many other USACE environmental infrastructure authorities, Section 219 does not explicitly authorize the federal share to be provided in the form of grants or reimbursements to nonfederal sponsors for work they perform directly.

The absence of explicit reimbursement authority under Section 219 creates a fundamental delivery constraint that distinguishes this program from other successful USACE environmental infrastructure authorities and limits the efficient use of federal appropriations.

Under current practice, USACE must act as the construction manager for Section 219 projects regardless of local capacity or capability. This means the Corps must directly manage design, contracting, and construction using federal procurement processes even when local governments are fully equipped to deliver the same work more quickly and at lower cost using existing local contractors, established delivery methods, and streamlined procurement vehicles.

This statutory limitation produces several inefficiencies that undermine the program's effectiveness:

Capacity Constraints Lead to Project Delays or Cancellations. USACE districts operate with finite staffing and contracting resources. When the agency must directly manage every aspect of Section 219 project delivery, Corps personnel and administrative capacity become bottlenecks. In practice, USACE has declined to move forward on otherwise shovel-ready projects simply because district offices lack the internal capacity to execute them through federal procurement. This can result in critical infrastructure projects experiencing significant delays in initiation and completion, or projects never advancing despite having secured congressional authorization.

Federal Procurement Requirements Increase Costs. Federal procurement processes, while designed to ensure competition and transparency, add cost premiums and administrative overhead compared to local government contracting. Local governments routinely deliver similar infrastructure projects at lower total costs by leveraging existing relationships with regional contractors, utilizing competitive local bidding processes, and employing streamlined project delivery methods. When USACE must procure all services federally for Section 219 projects, these cost efficiencies are lost, reducing the number of projects that can be completed with available appropriations.

Appropriated Funds Remain Unobligated. Congress regularly appropriates funding for environmental infrastructure assistance with the expectation that these federal dollars will translate into completed projects serving communities. However, when USACE lacks the administrative capacity to manage projects through federal procurement, appropriated funds can remain unobligated or be obligated more slowly than necessary. This represents an inefficient use of taxpayer resources and delays the delivery of critical infrastructure improvements.

Inconsistency with Proven Delivery Models. The Section 219 limitation is particularly problematic because numerous other USACE environmental infrastructure authorities successfully use grants and reimbursements as delivery mechanisms. Regional, state, and multi-state environmental infrastructure programs have demonstrated for decades that allowing nonfederal sponsors to lead project delivery—with federal reimbursement of eligible costs—accelerates timelines, reduces costs, and improves outcomes. Section 219's procurement-only restriction prevents the program from benefiting from these proven efficiencies.

The current statutory framework effectively requires USACE to do more with less while preventing the agency from using delivery mechanisms that would allow appropriated funds to accomplish more projects. This creates an untenable situation where both federal and local partners face unnecessary obstacles to delivering infrastructure improvements that Congress has explicitly authorized and funded.

A targeted statutory amendment would authorize USACE to provide the federal share of Section 219 project costs in the form of reimbursements to nonfederal sponsors for eligible project expenditures. This approach is already authorized and successfully implemented under numerous other USACE environmental infrastructure authorities, representing a proven delivery model with decades of effective use.

The proposed change is narrow and limited in scope. It would allow, but not require, reimbursement as a delivery option while maintaining all existing program requirements, cost-sharing ratios, sponsor responsibilities, and congressional oversight mechanisms. Projects would continue to require partnership agreements between USACE and nonfederal sponsors, and all applicable federal laws including environmental compliance requirements would remain in full effect.

This amendment follows clear congressional precedent. Most regional, state, and multi-state environmental infrastructure authorities enacted since 2007 explicitly authorize federal assistance to be provided through grants or reimbursements. Most recently, WRDA 2024 established five new environmental infrastructure programs—covering Western Washington State, Kentucky and West Virginia, Southeastern North Carolina, Oregon, and Pennsylvania—each of which expressly allows federal assistance through grants or reimbursements to nonfederal sponsors.

The requested Section 219 amendment is actually more limited than these recent precedents. It seeks only reimbursement authority, not grant authority, and simply aligns Section 219 with long-standing, bipartisan congressional practice that has proven effective across USACE's broader environmental infrastructure portfolio.

Authorizing reimbursements under Section 219 produces measurable benefits for federal taxpayers, local communities, and program efficiency:

Lower Federal Costs. Local governments deliver infrastructure projects at competitive costs using established local contractors, regional bidding processes, and proven delivery methods. By avoiding federal procurement premiums and administrative overhead, reimbursement authority stretches limited federal appropriations further, allowing the same dollars to complete more projects or larger scopes of work.

Reduced Federal Administrative Burden. Eliminating the requirement for USACE to manage every construction contract through federal procurement frees already-stretched Corps personnel to provide technical oversight and support for more projects simultaneously. Districts can deploy limited staff capacity more strategically rather than being constrained by direct project management requirements.

Faster Project Delivery. Nonfederal sponsors can move quickly using shovel-ready designs and existing contracting vehicles without waiting for USACE to complete federal procurement processes. This removes months or potentially years of delay, accelerating the delivery of critical infrastructure improvements to communities.

More Efficient Use of Appropriations. By eliminating capacity bottlenecks and cost premiums, reimbursement authority allows congressional appropriations to translate directly into completed projects rather than remaining unobligated or moving slowly through federal processes. This improves the efficiency of federal spending and ensures taxpayer dollars deliver tangible infrastructure improvements.

Alignment with Established Practice. Numerous USACE environmental infrastructure authorities already allow grants and reimbursements as delivery mechanisms. Updating Section 219 simply brings the program into alignment with proven, bipartisan, fiscally responsible delivery models that Congress has authorized and funded successfully for decades.

Empowerment of Local Ownership. Nonfederal sponsors already own and operate Section 219 infrastructure and bear full responsibility for long-term operations and maintenance. Allowing these sponsors to lead project delivery recognizes their capabilities, leverages their existing infrastructure management expertise, and ensures accountability for project outcomes.

This is not a new program and does not increase federal authorizations or cost shares. It is a targeted efficiency reform that preserves all existing program requirements while unlocking greater value from every federal dollar appropriated under Section 219.

The Ferguson Group recommends the following amendment to Section 219 of the Water Resources Development Act of 1992, as amended:

Section 219 of the Water Resources Development Act of 1992, as amended, is further amended to redesignate subsection (d) as subsection (e) and insert a new subsection (d) as follows:

(d) REIMBURSEMENTS.—For projects, or separable elements of projects, for which assistance is provided under this section, the Federal share may be in the form of reimbursements of non-Federal project costs.

This commonsense amendment saves money for taxpayers, accelerates infrastructure delivery, helps USACE meet congressional intent, and empowers local governments to deliver results faster and at lower cost. It represents a fiscally responsible reform that maximizes the value of federal environmental infrastructure investments while maintaining appropriate oversight and accountability.

If you are interested in requesting this proposed amendment, please contact your U.S. House Representative and your U.S. Senators by late January 2026 and provide them with the enclosed submission information.

The Ferguson Group provides federal government relations and advocacy services to local governments, water districts, public agencies, transit agencies, and other municipal entities seeking to advance their interests in Washington, D.C. Our team specializes in securing federal funding, navigating congressional authorization processes, and developing strategic advocacy campaigns for projects of all sizes. TFG works directly with Members of Congress, federal agencies, and stakeholders to help clients achieve their funding and policy objectives.