US water infrastructure work surges into 2026 with billion-dollar projects breaking ground

Builders won a run of large water and flood-control contracts in early 2026, from an Ohio River tunnel to Virginia Beach floodwater work.

US water infrastructure projects picked up in the first half of 2026, according to the fact sheet, with a string of large contracts moving from planning into construction. FlatironDragados started a $518 million Virginia Beach floodwater project after a two-year preconstruction phase. A Lane-Brayman joint venture won a $1 billion Ohio River tunnel meant to cut sewer overflow in Allegheny County, Pennsylvania. Smaller but significant jobs landed too: a $210 million California contract for the Placer County Water Agency, an $89 million Texas job in Lewisville, and a completed $74 million wastewater project in Lawrence, Kansas.

The work spans supply, treatment, and resilience. A Jacobs-McCarthy joint venture began a $185 million expansion of the Torrance Groundwater Desalter, expected to finish in October 2028. Federal money is flowing as well: the US DOT earmarked $1.86 billion for storm-damaged infrastructure, including over $908 million for Hurricane Helene recovery. The fact sheet also notes that data center buildouts consume large amounts of water, tying the sector's growth to that demand.

Water is a foundational need, and pipes, tunnels, and treatment plants are the unglamorous machinery that keep it clean and available. A wave of funded projects means more communities get flood protection and reliable supply — the kind of capacity that quietly makes water cheaper to deliver and harder to lose.

Watch the pending $30.5 billion water infrastructure bill, which the fact sheet describes as not yet enacted. Its passage would shape how long this construction run lasts.

Source: Construction Dive