Domestic Water Protection Act of 2023

HR 5325, the Domestic Water Protection Act of 2023, imposes a 300% tax on the sale of specific water-intensive crops grown by foreign entities (non-U.S. individuals, corporations, or governments) in areas designated as experiencing severe, extreme, or exceptional drought for over six months by the U.S. Drought Monitor. The tax applies to manufacturers, producers, or exporters of these crops, with revenue deposited into a new Drought Trust Fund to support existing federal drought response programs. The bill excludes crops containing previously taxed water-intensive crops from double taxation. It does not affect U.S. farmers or crops grown outside drought-identified areas.