North Dakota Infrastructure Projects Gain Cost Savings

By Scout Nelson

Senator John Hoeven outlines new federal funding provisions that support water supply and flood protection projects across North Dakota. The measures are included in Fiscal Year 2026 appropriations legislation and are expected to save taxpayers well over $300 million in both construction and long-term operating costs.

The funding includes $ 50 million and project authorization for the Eastern North Dakota Alternate Water Supply project. This project uses existing federal infrastructure such as the Snake Creek Pumping Plant and the McClusky Canal. By using these systems, the project helps reduce costs tied to the Red River Valley Water Supply Project. Officials estimate savings of about $200 million in construction costs and nearly $4 million each year in operating costs due to shorter pumping distances and reduced elevation needs.

Hoeven also works to secure additional funding through the One Big Beautiful Bill. This bill includes one billion dollars for Bureau of Reclamation water projects. Hoeven adds language to ensure the water supply project qualifies for funding, with award announcements expected soon.

The water supply project aims to provide a reliable and drought resistant source of water for more than 30 communities and rural water systems across central and eastern North Dakota. The project completed its environmental review process in 2021.

In addition to water supply efforts, Hoeven advances legislation that allows federal savings to reduce local costs for flood protection in the Red River Valley. His goal is to transfer between $100 million and $120 million to local sponsors this year. This marks the 17th legislative effort he has supported to improve flood protection for the Fargo Moorhead area.

These savings result from earlier actions that fully funded the federal share of flood protection costs in advance. This approach allowed work to move faster and stay under budget, creating savings that can now reduce local cost shares.

“Between the two provisions we passed last week, we are working to save North Dakota taxpayers well over $300 million. The federal ENDAWS project brings real savings to the Red River Valley Water Supply Project, reducing its construction costs by $200 million and saving $4 million in annual operating costs. At the same time, by enabling the Corps to build its share of flood protection more quickly, we have created savings that can be used to reduce the local cost share, with a goal of securing $100 million to $120 million for the local sponsors this year,” said Hoeven. “Under the original model, the federal government would’ve taken the lead on the entire flood protection project for the Red River Valley. This would’ve resulted in delays and cost overruns. Our first-in-the-nation P3 model, along with our work to fully fund the $750 million cost share up front, significantly reduced the federal construction timeline and costs. Our legislation transfers those savings to the local sponsors this year, which will reduce the local cost share and save taxpayer money.”

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