What's Happening?
The Waterways Council, Inc. (WCI) is advocating for the revocation of Executive Order 12322, issued by President Ronald Reagan in 1981, which requires federal agencies to submit water and related land
resources project proposals to the Office of Management and Budget (OMB) for review before they are sent to Congress. This process is seen as a bureaucratic bottleneck that limits effective solutions for infrastructure projects. The WCI argues that this order hinders the modernization and expansion of the nation's inland waterways infrastructure, which is crucial for the economy. Since 1987, only ten projects have been completed, with significant cost overruns and delays. The Olmsted Locks and Dam project, for example, took 26 years to complete with a 275% cost increase. The WCI suggests that the Corps of Engineers should treat the inland navigation waterways as a system and manage it through a Capital Investment Strategy, improve cost estimations, and use standard designs to enhance efficiency.
Why It's Important?
The modernization of the inland waterways infrastructure is vital for the U.S. economy, as it supports the transportation of agricultural and energy products, steel, and other manufacturing inputs. The current bureaucratic processes and inefficiencies in project delivery have led to significant delays and cost overruns, which could hinder economic growth. By revoking Executive Order 12322 and implementing the WCI's recommendations, the Corps of Engineers could streamline project delivery, reduce costs, and improve the reliability of the waterways. This would benefit towboat operators, shippers, and various industries reliant on efficient transportation routes. Additionally, the passage of the FY26 Energy & Water Development appropriations bill, which includes nearly $400 million for inland navigation construction, is crucial for keeping modernization projects on schedule.
What's Next?
The WCI is pushing for Congress to pass the FY26 Energy & Water Development appropriations bill to secure funding for ongoing projects. If the bill is not passed, Congress will need to pass a stop-gap funding measure to extend funding beyond the current deadline of January 30, 2026. Failure to do so could result in a full-year Continuing Resolution, which would allow the OMB to dictate funding allocations, potentially impacting the Corps' Civil Works program. The WCI plans to continue advocating for changes to improve the future of the nation's inland waterways, emphasizing the need for a centralized program management office and better project management practices.
