WASHINGTON – Sen. John Kennedy (R-La.), Chairman of the Senate Appropriations Subcommittee on Energy and Water Development, today introduced a proposal to fund American energy and water priorities while taking critical steps to address federal spending in fiscal year (FY) 2026.

“The FY 2026 Energy and Water Development Appropriations bill is a responsible step toward cutting bloated spending while bolstering America’s defense and energy infrastructures. It reflects a good-faith effort to live within our means without shortchanging the American people. I’m optimistic about the work ahead to move this critical legislation across the finish line,” said Kennedy. 

Overall, Kennedy’s bill would result in a 1.1% reduction in spending for the Appropriations Subcommittee on Energy and Water Development, making it the only FY 2026 Senate appropriations bill so far that cuts spending. Kennedy rejected the overall topline given to him by Senate appropriators because he believed he could fund these vital programs with more force and efficiency.

This legislation would increase defense spending by 3%, reaching a $34.353 billion total. To combat the growing federal deficit, the bill would lower non-defense spending to $23.132 billion, a 6.5% spending reduction.

Kennedy’s bill would also ensure that funding for the U.S. Army Corps. of Engineers remains robust, allowing states like Louisiana to effectively respond to hurricanes and mitigate flood threats.

Full text of the FY 2026 Energy and Water Development Appropriations bill is available here.