Gallego Introduces Legislation to Stop Wall Street Water Price Gouging
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WASHINGTON, DC – Today, Rep. Ruben Gallego (AZ-03) introduced the Drought Related Overpricing Prevention (DROP) Act to stop outside investors from buying up scarce Western water and selling it at excess prices.
“Shadowy Wall Street firms are more regularly buying up Arizona water rights as if they are a business opportunity rather than a lifeline for our communities,” said Rep. Gallego. “To them, Arizona’s water crisis is nothing more than a chance to line their pockets at the expense of everyday Arizonans. My bill ensures these firms can’t price gouge our farmers and communities in desperate need of water. It makes sure Arizona’s water stays first and foremost, for Arizonans.”
The DROP Act builds on Rep. Gallego’s continued commitment to keep Arizona’s water for Arizonans. Recent reporting reveals that investment firms have started to see the West’s decades-long megadrought as a profit-making opportunity.
The goal of the bill is to ensure Western communities do not have to compete with outside interests for scarce water resources.
The DROP Act directs the Federal Trade Commission (FTC) to create regulations prohibiting the sale or lease of water rights at an excessive price in drought-stricken areas. The bill includes exceptions for state, local, and Tribal governments and for entities with gross revenues under $100 million a year.
Last Congress, Rep. Gallego introduced the Domestic Water Protection Act to crack down on the abuse of water resources by foreign governments in drought-stricken states.
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