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Presidential Signature Authorizes F-M Area Diversion Project Construction

On June 10, 2014, President Obama signed a bill into law which authorizes construction to move forward on the Fargo-Moorhead Area Diversion Project. The signing of the Water Resources Reform and Development Act (WRRDA) marks a critical step to acquiring federal funding for the Project, which will build permanent flood protection for approximately 200,000 people in North Dakota and Minnesota.

With authorization secured, the Corps and the local sponsors, represented by Fargo, Moorhead and the Diversion Authority, will work toward signing a project partnership agreement which spells out the cost sharing and construction responsibilities of the Corps of Engineers and the local sponsors.

WRRDA authorizes $846 million in federal funding for the Diversion Project. The Diversion Authority will now focus efforts on securing funding to begin construction. Federal funding is expected to be appropriated over time. Funding from the State of North Dakota can only be used for the Diversion once federal funding for construction is received. The State of North Dakota has already committed $175 million to the Diversion Project, in addition to legislative intent for an additional $275 million over the next four bienniums. Voters in the City of Fargo and Cass County have overwhelmingly approved two dedicated local sales taxes to help fund the Project. With modest growth, the sales taxes are expected to jointly raise $700 million over the life of the tax.

 

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