Bureau of Reclamation Banner

Challenge Grant Program

Through the Challenge Grant Program, Reclamation provides 50/50 cost share funding to irrigation and water districts and states for projects focused on water conservation, efficiency, and water marketing. Projects are selected through a competitive process, based on their ability to meet the goals identified in Water 2025: Preventing Crises and Conflict in the West. The focus is on projects that can be completed within 24 months that will help to prevent crises over water.

Reclamation awarded $4.5 million dollars in August 2008 to fund 15 Challenge Grant projects in seven states.  Including the matching contributions of non-federal partners, the selected projects represent a combined investment of more than $31.8 million in water management improvements.

These grants awarded by Reclamation will fund a variety of projects that will improve the efficient use of existing water supplies through water conservation, efficiency and water market projects.

Since 2004, 137 Challenge Grant projects have been funded.  $30 million in Federal funding combined with local partnerships into almost $$130 million worth of water management improvements in 16 western states. Those 137 projects will create new water banks, promote the use of advanced technology to improve water management, and increase collaboration among Federal, State, tribal, and local entities.

Ten projects from the 2004 awards and six from the 2005 awards have been completed.  For those projects that reported water savings, the total water savings in annual acre-ft is 75,640. These projects were successful in saving water, reducing conflict, and building partnerships.

Current Opportunities:

Secretary of the Interior Dirk Kempthorne announced on 8/13/08 that he has approved $4.5 million in new Water 2025 Challenge Grants for water conservation projects across the West. List of Grants

Click links below for:
Summary of the Selection Criteria for Challenge Grants
List of All Projects Funded to Date (PDF - 91 KB)
Map of the Locations of All Projects Funded Through 2007 (PDF - 1.3 MB)
Frequently Asked Questions Regarding the Challenge Grant Program

W.C. Austin Project
Water 2025 Grant: Infrastructure Modernization, W.C. Austin Project - A Water 2025 Challenge grant was provided to the Lugert-Altus Irrigation District in Oklahoma to continue modernizing its irrigation delivery system by expanding remote monitoring and automation sites, improving flow measurement, and replacing and rehabilitating their farm turnouts.

The W.C. Austin Project provides water supply for more than 1/2 of the state’s cotton crop. In a typical year, more than 100,000 bales of cotton worth $35 million dollars are produced, generating a total economic impact of $220 million to Jackson County alone.

Last Updated: 8/15/08