US SB3738

Reauthorizes the large-scale water recycling and reuse program with $450 million for fiscal years 2028-2032, extends program authority from 5 to 10 years, and increases the federal cost-share limit from 30% to 60% of project costs.

Establishes a new Water Conveyance Improvement Program with $500 million for fiscal years 2028-2032 to fund new or improved water conveyance facilities in Reclamation States, with federal share capped at 50% of project costs.

Requires conveyance projects costing $800 million or more to be "multi-benefit projects" providing safe drinking water for low-income communities or environmental benefits; prohibits federal funding for new conveyance facilities exceeding $5 billion.

Authorizes $550 million for fiscal years 2028-2032 for new water recycling projects and increases the per-project federal cost-share ceiling from $20 million to $50 million with automatic inflation adjustments.

Creates a deauthorization process for inactive Bureau of Reclamation projects that have not received funding obligations for 8 consecutive fiscal years, allowing removal of stalled projects from the authorization backlog unless Congress intervenes.