H.R. 4553: Energy and Water Development and Related Agencies Appropriations Act, 2026

H.R. 4553 funds energy and water agencies for fiscal year 2026, but the real story is how aggressively it uses spending rules to shape policy. The bill steers $4.604 billion into small modular reactor projects, expands several water project authorizations, and places tighter reporting and approval rules on how agencies move money around.

On water infrastructure, some of the jumps are large enough to matter to specific regions. The Northwestern New Mexico Rural Water Projects Act would rise from $870 million to $1.815 billion, desalination authority would rise from $30 million to $106.5 million, and wastewater and groundwater recycling authority would rise from $50 million to $177.5 million.

The bill also targets China-linked transactions. It blocks Strategic Petroleum Reserve sales to entities the bill describes as controlled by the Chinese Communist Party or intended for export to China, and it bars Energy Department grants or loans of $10 million or more to certain covered foreign-linked entities.

There is also a long list of operational riders. H.R. 4553 would bar federal funding for DEI initiatives and related training, block federal COVID-19 mask or vaccine mandates, require federal computer networks to block pornography with a law-enforcement exception, and limit federal property flag displays to a short approved list.

For nuclear waste, the bill says federal money cannot support consolidated interim spent fuel storage unless host state, local, and tribal governments consent. That gives communities more leverage over whether they become a storage site.

The oversight side is stricter too. Energy Department projects above $100 million would need an independent cost estimate, and agencies would face notice rules before large grants, loans, or budget shifts move forward.