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Senator Hoeven announces roughly $300 million in upfront savings for North Dakota water projects
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Summary
At a regional briefing, Senator Hoeven and water leaders said recent legislation and reuse of existing federal infrastructure will cut upfront construction costs by about $300 million across the Red River Valley flood diversion and the Eastern North Dakota alternate water supply (NDOS), and that NDOS will save about $4 million a year in operating costs.
Senator Hoeven announced that North Dakota will realize roughly $300,000,000 in upfront construction savings across two linked water projects — the Metro Flood Diversion (Red River Valley flood protection) and the Eastern North Dakota alternate water supply (NDOS) — because of recent federal funding and reuse of existing federal infrastructure.
"We're gonna save North Dakota taxpayers over $300,000,000," Senator Hoeven said at the briefing, presenting charts showing the combined savings. He attributed roughly $100–$120 million in savings to the diversion project and about $200 million to the NDOS plan that uses the McCluskey Canal rather than building a new long pipeline.
Why it matters: the reductions lower the local cost share for communities and reduce the long-term operating burden for utilities and users. Senator Hoeven said the diversion savings stem from an innovative public‑private partnership and earlier federal funding that accelerated Corps construction; NDOS savings come from authorizing reuse of the McCluskey Canal and a shorter, gravity‑fed route.
Federal and project details: Hoeven said the legislation enacted in the energy and water appropriations package enables early access to federal funds that otherwise would not have been available until later. Jason Benson, executive director for the FM Diversion Project, said officials expect an amendment to the Corps project partnership agreement in the coming months and "first payment, probably roughly 60,000,000 in by the end of this fiscal year." Rhys Hoss, director of the North Dakota Department of Water Resources, confirmed the state had invested more than $400,000,000 to date in the Red River Valley Water Supply Project and said the Biota/NAS treatment plant is expected to deliver water in 2026.
On NDOS and McCluskey Canal: project leaders said the McCluskey Canal (built in the 1970s and fed from Lake Audubon) is in good condition and was intended to convey water eastward; reauthorizing its use avoids a pipeline that was conservatively estimated to cost $200,000,000. Officials noted that avoiding long-distance pumping will also save an estimated $4,000,000 annually in operating costs once the system is running.
What’s next: leaders said work continues on negotiating partnership amendments, moving federal tranches into project accounts and finishing remaining construction. The briefing closed with a pledge to continue coordination with Interior, the Corps and state agencies while pursuing remaining appropriations.
The event concluded with local mayors and water‑district leaders thanking the senator and project staff; no formal votes or legislative actions were taken at the briefing.
