Funding for Arizona’s Lands and Waters

How the state budget shapes the stewardship of Arizona’s natural resources
Cooper's Hawk

This blog was updated on June 15, 2026 to reflect what is included in the Arizona state budget for fiscal year 2027. 

While there are many important needs that arise when crafting a state budget, legislators and the Governor must remember the essential natural resources that allow Arizonans to thrive here in the first place—our lands and waters.  

And it is vital that we maintain and protect them. 

To do so, ̽»¨¾«Ñ¡ Southwest has outlined three key budget provisions that should be considered for inclusion into next fiscal year’s state budget (July 1, 2026 - June 30, 2027).  

  1. Invest in water security: To continue to adapt to our drier future, we must protect and stretch our water supplies in the quickest and most cost-effective ways—by investing in conservation, efficiency, reuse, groundwater recharge, and forest and watershed health.   
    • ̽»¨¾«Ñ¡ request: $30 million for the Colorado River Protection Fund to deploy immediate water conservation to prop up reservoir levels in Lake Mead and to bolster in-state water supplies with forest health projects that protect our water supplies. We must act on the near-term emergency we face from the  of this winter and spring in the Colorado River Basin.
      • Total funded in state budget: $0. The lack of inclusion of the Colorado River Protection Fund in this budget is not the outcome we had hoped for, particularly given what Arizona voters have made clear, and the conditions we see on the river from this paltry winter. A recent statewide poll found that 94% of likely voters want lawmakers to make water security a priority, and 75% support creating this fund, with only 7% opposed. With new river guidelines pending and continued uncertainty about how water reductions will impact water users and the river itself, Arizona must do all that it can to conserve water, restore our watersheds and forests, and keep our rivers flowing.
    • ̽»¨¾«Ñ¡ request: Beyond the near-term needs on the Colorado River, there are successful existing state programs like the Water Infrastructure Finance Authority’s Water Conservation Grant Fund a²Ô»å ; the ; ; ; and the  that could kickstart projects and make an immediate impact for communities around the state, if provided funding.   
      • Total funded in state budget: $21 million was removed from the Water Infrastructure Finance Authority’s Water Supply Development Revolving Fund to support other needs in the General Fund. However, it is noteworthy that the Long-Term Water Augmentation Fund was not diminished and maintains its current balance of $386 million. Additionally, $500,000 was allocated to the Small Drinking Water Systems Fund to help struggling utilities repair and upgrade safe drinking water treatment infrastructure.
      • Total funded in state budget: $10 million to fight wildfires (and protect water supplies) as well as $30 million for proactive forest health practices to assist communities in high-risk areas.
  2. Support crucial state agencies: The state agencies tasked with protecting the state’s water quality and quantity—the Arizona Department of Water Resources and the Arizona Department of Environmental Quality—need adequate funding to do their job.
    • ̽»¨¾«Ñ¡ request: Maintain the current funding levels at the Arizona Department of Water Resources. With new Active Management Areas to implement and manage, along with ongoing negotiations and management decisions on the Colorado River, this is not the time to reduce funding for this state agency tasked with safeguarding Arizona’s water supplies.  
      • The state budget keeps funding steady with no reductions for the Department, in recognition of the vital work it performs for our state. 
    • ̽»¨¾«Ñ¡ request: $9.5 million to the Water Quality Fee Fund will help the Arizona Department of Environmental Quality develop and maintain the state and federally mandated programs that  protect the quality of Arizona's surface, ground, and drinking water. 
      • Total funded in state budget: $9.5 million. 
  1. Conserve landscapes. ̽»¨¾«Ñ¡ supports the following additional priorities:
    • ̽»¨¾«Ñ¡ request: would allocate $3 million to the Arizona Department of Forestry and Fire Management to reduce flood and fire risk by strategically removing salt cedar and reestablishing native plants, restoring habitat along the Lower Gila River west of Phoenix and along the confluence of the Gila and Colorado Rivers, near Yuma. This bill unanimously passed the House Natural Resources, Energy, and Water Committee on March 24. It must be incorporated into the state budget to become a reality.
      • Total funded in state budget: $0. 
    • ̽»¨¾«Ñ¡ request: $100,000 for the maintenance and improvement of the , which spans 800 miles, providing recreational opportunities and crossing important habitats for birds like Cooper’s Hawks and American Goshawks.
      • Total funded in state budget: $0. 
    • ̽»¨¾«Ñ¡ request: $1 million to the , which helps to protect and promote our state’s historic, cultural, and natural treasures. 
      • Total funded in state budget: $0 (but no money was swept from this fund.

Stewarding Arizona’s lands and waters for generations to come is critical—for people, birds, fish, and other wildlife. Voters expect action. 90% say it's important that their legislators prioritize Colorado River action in this state budget. 67% say they would view their legislator more favorably for supporting the fund — versus just 9% unfavorably.  

While there are many tradeoffs when it comes to state budget negotiations, lawmakers must continue to prioritize protecting our lands and waters.