The Future of Water Act of 2024
Press Release — Text of Bill — Text of One-Pager
Senator Elizabeth Warren (D-Mass.) and Representative Ro Khanna (D-Calif.) have re-introduced the Future of Water Act to amend the Commodity Exchange Act to prohibit the trading of water and water rights in commodity futures contracts.
Under current law, water prices are vulnerable to manipulation and speculation from futures markets. Without limitations on these markets, passive investors are incentivized to purchase acres of farmland purely for the commoditized water rights that accompany the land, giving control of the water futures market to individuals with no personal or commercial stake in it. This regime could lead to physical water hoarding and price increases, harming American families and farmers and incentivizing further farmland consolidation.
The Future of Water Act, which was first introduced in the 117th Congress, would:
Prohibit the trading of water and water rights in commodity futures contracts. The proposed bill would add “water and water rights” to the current list of prohibitions in the Commodity Exchange Act.
Protect American families, farmers, and ranchers from water price spikes. Wall Street’s interest in financial derivatives based on water and water rights could lead to severe real-world water price spikes due to market manipulation and/or excessive speculation. Prohibition of water and water rights futures trading stops this dangerous speculation and protects American families, farmers, and ranchers.