Arizona Budget Proposal Includes Major Funding for Colorado River Protection
On January 16, 2026, the Arizona Department of Water Resources (ADWR) shared details of Governor Katie Hobbs’ FY 2027 Executive Budget Proposal focused on preparing for long-term challenges facing the Colorado River. The plan includes new and expanded funding aimed at strengthening water security across Arizona in the face of ongoing Colorado River shortages.
Key points from the budget related to water:
- $30 million one-time deposit into a newly created Colorado River Protection Fund to support conservation efforts and short-term drought response.
- Permanent funding mechanism for that Protection Fund to be supported by a water usage fee on data centers.
- Continued investment in water conservation, shortage mitigation, supply augmentation, and water infrastructure upgrades.
- A recognition that current Colorado River operating rules expire at the end of 2026, with negotiations underway to create a sustainable long-term framework.
Source:
Arizona Water News https://azwaternews.com/2026/01/16/fy2027_execbudgetproposal/
