U.S. Army Corps of Engineers: FY2026 Appropriations

Congress generally funds and provides related policy direction to the civil works activities of the U.S. Army Corps of Engineers (USACE) in annual Energy and Water Development appropriations acts and their accompanying reports. These activities primarily include the planning and construction of authorized water resource projects and the operation and maintenance (O&M) of USACE-managed infrastructure and navigation improvements. USACE is operating under a continuing resolution (CR; P.L. 119-37), with appropriations accounts funded for operations at a rate consistent with FY2025 levels through January 30, 2026. Issues for Congress include the manner in which FY2026 appropriations are enacted for the remainder of the fiscal year and the accompanying project and policy direction.

FY2026 Request

President Trump's FY2026 budget request included $6.66 billion for USACE civil works (Figure 1). This is, which was $2.04 billion less in nominal dollars than Congress provided in each of the previous two fiscal years. For FY2025, Congress passed a full-year continuing resolution (CR)the roughly $8.70 billion provided for in each of FY2024 and FY2025 (See Figure 1). For FY2025, a full-year CR, the Full-Year Continuing Appropriations and Extensions Act, 2025 (FY2025 full-year CR; P.L. 119-4), which provided the same level of annual appropriations for USACE civil works as the appropriationsUSACE annual appropriations as provided by the Consolidated Appropriations Act, 2024 (Division D, Title 1, of P.L. 118-42). Therefore, annual appropriations for each of FY2024 and FY2025 were $8.70 billion with rescissions of $22 million from prior-year appropriations.

Figure 1. Annual USACE Budget Requests and Appropriations, FY2018-FY2026 FY2025, and FY2026 Request

Source: Congressional Research Service (CRS), based on appropriations laws and USACE budget requests. Notes: Does not reflect supplemental appropriations, redirection of prior-year appropriations, rescissions, or reprogramming. The lines show inflation-adjusted FY2018-FY2024 amounts in FY2024 dollars using FY2026 Budget of the U.S. Government, Historical Tables, Table 10.1. FY2025 and FY2026 figures are not adjusted. USACE uses most of its appropriations on specific studies and projects authorized by Congress. Nonfederal project sponsors or users often share in these costs. As with previous requests

As with previous requests and annual appropriations, a majority of the request would fund, a majority of the President's FY2026 request proposed funding the maintenance of existing infrastructure, as reflected in the amount proposed for the O&M account (see Figure 2). The request would fundalso proposed funding 15 construction projects, including 2 under the Mississippi River and Tributaries (MR&T) account. For comparison, USACE allocated FY2025 appropriations in the FY2025 work plan to 28 construction projects under the Construction and MR&T accounts. The. While the Administration did not request FY2026 funds for anyto start new construction projects; however, it did request funds for four new studies. The FY2025 full-year CR did not allow funding for new studies or new construction projects.

Figure 2. USACE FY2018-FY2025 Annual Appropriations and FY2026 Budget Request, Percentage of Total Funds by Account

Source: CRS, using appropriations laws and the FY2026 FY2026 request. Notes: WIFIP = Water Infrastructure Finance and Innovation Program; ASA = Assistant Secretary of the Army; Regulatory = Regulatory Program; FCCE = Flood Control and Coastal Emergencies; FUSRAP = Formerly Utilized Sites Remedial Action Program; MR&T = Mississippi River and Tributaries; O&M = operation and maintenance; Req. = request. Does not reflect supplemental appropriationsfunds or redirection of prior-year appropriations, rescissions, or reprogramming. Although the FY2026 request includes a proposal to fund certain expenses directly from a navigation trust fund, this figure shows only traditional USACE accounts.

As depicted in Figure 1, the President's request has been consistently less than enacted annual appropriations. From FY2022 through FY2024, much of this difference was from Member-requested funding for geographically specific studies and projects, referred to as "community project funding" (CPF) in the House and as "congressionally directed spending" (CDS) in the Senate. CPF/CDS have funded studies and projects above the budget request amount or those absent from the budget request. In recent years, including for FY2026, appropriations committees instructed Members submitting CPF/CDS requests to provide an estimate for USACE's capability for the work. Capability is typically considered the full funding level that USACE could apply to a study or project in a fiscal year regardless of policy constraints.

At $2.99 billion, navigation accountsNavigation and Its Two Trust Funds At $2.99 billion, navigation accounted for 44% of the FY2026 request. Of this total, $1.67 billion would come from the Harbor Maintenance Trust Fund (HMTF) for eligible coastal and inland harbor-O&M-related USACE expenses (including $30 million for construction related to dredge material disposal sites or certain uses), and $918 million from General Funds million for the inland and intracoastal waterway systems' O&M.

derived from the Treasury's General Fund. The FY2026 navigation construction request of $379 million iswas largely for $370 million in coastal and inland harbor work. The request includesincluded $9 million for inland and intracoastal waterway construction, which iswas proposed to receive no funding from the Inland Waterways Trust Fund (IWTF). The most recent budget request to include IWTF monies was for FY2023. The FY2025 full-year CR work plan allocated General FundsFund monies and almost $50 million in IWTF funds to three inland waterway construction projects. The acting ASACWIn June 2025, the then-acting Assistant Secretary of the Army for Civil Works (ASACW) testified that the FY2025 work plan funded most ongoing IWTF-eligible projects close to their full capabilities. The FY2026 request also proposed creating a USACE account for and that USACE aims to apply IWTF balances to fund projects in future fiscal years as the agency's capabilities become available.

The FY2026 request proposes creating an account for USACE activities funded by the HMTF, as requested (but not enacted) in seven previous budget requests. The $1.70 billion HMTF request is $26 million lower than the previous three requests (e.g., $1.73 billion in FY2025), and $1.07 billion less than the amount provided for FY2025 (estimated at $2.77 billion). The acting ASACW testified that the FY2026 requested HMTF funding is focused on "principal federal responsibilities, which [are] the maintenance and dredging of federal channels." The request also stated that of the FY2024 HMTF funds, "$1.4 billion remained unobligated in the first quarter of 2025."

Flood Risk Reduction and Aquatic Ecosystem Restoration Activities

The FY2026 request for flood risk reduction iswas $1.71 billion. Inland flood risk reduction would receive $1.65 billionThe Administration proposed $1.65 billion for inland flood risk reduction, including $659 million in construction funding for projects such as dam safety work at Whittier Narrows, CA ($571 million). The request also includesincluded $60 million for coastal storm damage reduction (with $2 million of this amount for construction). For FY2026, the request includesincluded $650 million for USACE aquatic ecosystem restoration efforts, of which $446 million iswas for Everglades restoration.

Corps Water Infrastructure Financing Program

In 2014, Congress authorized USACE to establish a program to provide credit assistance (i.e., direct loans or loan guarantees) for a range of water projects (33 U.S.C. §§3901-3915). Congress provided the program's first funding in FY2021. The Corps Water Infrastructure Financing Program (CWIFP) is funded from the Water Infrastructure Finance and Innovation Program (WIFIP) account. In September 2024, the program had invited 18 prospective borrowers to complete their applicationapplications for CWIFP loans (see CRS Insight IN12021, Corps Water Infrastructure Financing Program (CWIFP)). According to the FY2026 request, funding for the WIFIP account is proposed to be eliminatedwas no longer supported because "there is no demonstrated need in the private market" for this federal assistance, and it is "duplicative" of other" federal programs. ItThe request also stated that the program is "arguably outside of the Corps' mission, which is to provide engineering expertise for military construction and civil works projects—not serve as a creditor to private entities."

Continuing Authorities Programs and Environmental Infrastructure Assistance

The FY2026 request doesdid not include funding for environmental infrastructure assistance (see CRS In Focus IF11184, Army Corps of Engineers: Environmental Infrastructure (EI) Assistance) or small USACE projects under the various continuing authorities programs (see CRS In Focus IF12635, Continuing Authorities Programs (CAPs) of the U.S. Army Corps of Engineers). The Administration did not fund these activities in its FY2025 full-year CR work plan did not fund these activities, aside from one CAP project; however, the American Relief Act, 2025 (ARA 2025; P.L. 118-158) provided $100 million for flood and storm damage reduction CAP projects and $300 million for EI assistance.