Arizona Faces Steep Colorado River Water Cuts Under New Federal Plan
- Bureau of Reclamation, Arizona faces a potential Colorado River water allocation reduction of up to 77%, far exceeding the 31% reduction proposed by Lower Basin states earlier in...
- The long-awaited final environmental impact statement outlines post-2026 operating guidelines for the climate-stressed river, which provides water to between 35 and 40 million people across seven Western states,...
- In May, the Lower Basin states of Arizona, California, and Nevada submitted a joint proposal to reduce water usage by 1.25 million acre-feet per year, which would have...
Under a new federal operating plan released by the U.S. Bureau of Reclamation, Arizona faces a potential Colorado River water allocation reduction of up to 77%, far exceeding the 31% reduction proposed by Lower Basin states earlier in the year.
The long-awaited final environmental impact statement outlines post-2026 operating guidelines for the climate-stressed river, which provides water to between 35 and 40 million people across seven Western states, 30 tribes, and two Mexican states, according to federal and state reports.
Federal Proposal Exceeds Lower Basin Cuts
In May, the Lower Basin states of Arizona, California, and Nevada submitted a joint proposal to reduce water usage by 1.25 million acre-feet per year, which would have cut Arizona’s annual supply by 31%. However, the Bureau of Reclamation’s final environmental impact statement calls for a Lower Basin reduction of 3 million acre-feet annually.

While Arizona is legally entitled to a 2.8 million acre-feet yearly allocation from the river, the federal framework could eliminate up to 77% of that supply, according to state water officials. Currently, Arizona is already reducing its usage by over 500,000 acre-feet, and 36% of the state’s total water supply comes from the Colorado River, with the remainder drawn from groundwater, in-state rivers, and reclaimed water.
The 10-year management approach allows river operations to adjust every two years based on changing hydrological conditions unless the seven basin states reach a long-term agreement. Interim guidelines and drought contingency plans agreed upon in 2007 and 2019 are set to expire in 2027.
State Reactions and Potential Litigation
Arizona state officials and water leaders immediately criticized the federal announcement. In an official statement, the Arizona Department of Water Resources called the proposed reductions unacceptable, stating that such reductions would devastate Arizona’s water users and its economy.

Such reductions would devastate Arizona’s water users and its economy.
Arizona Department of Water Resources
Governor Katie Hobbs stated that the federal document still contains a range of alternatives that allows for the adoption of the compromise proposal put forward by the Lower Basin states for 2027 and 2028. Within that range is the opportunity for the federal government to adopt the commonsense, compromise proposal put forward by Lower Basin States for 2027 and 2028,
Hobbs said in a statement.
Republican leaders in the state also expressed sharp frustration with the federal plan. House Speaker Steve Montenegro urged state leaders to remain united, while Representative Teresa Martinez of Casa Grande pointed out that Pinal County farmers already lost their Colorado River water allocations years ago without a bailout.
Ahead of the announcement, Governor Hobbs’ office hired a law firm to prepare for potential litigation, and the Arizona Legislature set aside millions of dollars across the last two state budgets to protect the state’s share of the river. Litigation remains an active option for the state.
Next Steps in the Federal Process
The guidelines released by the Bureau of Reclamation are not yet final. The agency plans an expedited public comment period before issuing a Record of Decision that will formally establish river operations for the coming years.
The Arizona Department of Water Resources stated that it will continue working with federal authorities, tribal, agricultural and municipal partners in Arizona, and other basin states to shape river management before the final decision is reached.
