Colorado water officials dream big, team up after feds drop $450 million for water projects

The federal government has planned since 2022 to spend $450 million on water projects in four Western states, including Colorado. Last week, water officials finally learned which projects are eligible — and they’re planning to dream big.

The funding is part of the federal government’s plan to address the impacts of drought in the overstretched Colorado River Basin. It will, in part, be used for projects that restore habitats and ecosystems or offer other environmental benefits, according to an announcement from the Bureau of Reclamation July 22. A second application period, which opens later this year, will focus on long-term water conservation efforts using the same bucket of funds.

The door seems to be wide open for larger-scale projects — with more flexibility and fewer hurdles for applicants, several groups said.

“Normally we’ll see somewhere in the ballpark of $20 million to $30 million annually for ecosystem restoration work through WaterSMART for the Upper Colorado River Basin,” said Alex Funk, director of water resources and senior counsel at Theodore Roosevelt Conservation Partnership. “Never have we seen $450 million come online all in one (request for proposals).”

The influx of money is headed for Colorado, New Mexico, Wyoming and Utah, the four states in the Colorado River’s upper basin. The river basin spans seven Western states, the lands of 30 tribal nations and two Mexican states. There, the future water supply for 40 million people has been compromised by two decades of drought, a changing climate and overuse.