PolicyBrief
S. 3737
119th CongressJan 29th 2026
GROW SMART Act
IN COMMITTEE

The GROW SMART Act establishes a drought planning assistance program to support innovative, voluntary water-sharing agreements and the adoption of water-thrifty crops to keep agricultural land in production.

Alejandro "Alex" Padilla
D

Alejandro "Alex" Padilla

Senator

CA

LEGISLATION

GROW SMART Act Proposes 75% Federal Funding for Innovative Water-Saving Farm Projects to Combat Drought

The GROW SMART Act is essentially a toolkit for farmers and local communities to keep their fields green and their taps running without relying on the old-school method of just letting land go dry. It sets up a new program under the Bureau of Reclamation to provide technical and financial help for 'innovative' water projects. The big hook? The federal government will pick up to 75% of the tab for planning these projects (Section 2), provided they keep agricultural land in production rather than just paying farmers to stop farming—a practice known as 'fallowing' that this bill explicitly tries to avoid.

More Than Just Sprinklers

This isn't about buying a slightly better hose. To get the cash, projects have to be 'innovative,' meaning they don't have a well-established track record in your area yet. We’re talking about things like agrovoltaics (putting solar panels over crops), gravity-powered drip irrigation, or switching to 'water-thrifty' crops that don't drink the local aquifer dry. For a family farm or a local irrigation district, this could mean getting federal experts to help design a root-zone management system that targets water exactly where it’s needed, potentially saving enough water to share with the nearby town without cutting into the season's harvest.

The Buddy System for Water

The bill pushes for 'voluntary water sharing agreements' between farmers and other groups like city water providers or tech companies (Section 201A). Imagine a scenario where a local brewery or a data center partners with a group of nearby farmers. They could work together on a shared storage project that gives the business a steady supply while insulating the farmers from the risk of a dry year. While the bill usually requires these partnerships, it makes an exception for States and Tribes, especially if they are facing a massive 40% drop in their water supply. This is a direct lifeline for areas where the groundwater is disappearing faster than it can be replaced.

Long-Term Stakes and Local Benefits

Because this is a planning grant, the bill is looking for projects that can eventually stand on their own two feet without a permanent federal allowance. When deciding who gets the money, the Secretary of the Interior will look at whether the saved water stays in the local community and if the agreement lasts at least 10 years. It’s a 'teach a man to fish' approach to water policy—providing $5 million in annual funding through 2034 to figure out the logistics now, so that when the next major drought hits, the local economy doesn't dry up along with the dirt.