Healthy Watersheds, Healthy Communities Act of 2023

This bill amends the Watershed Protection and Flood Prevention Act to prioritize projects that provide multiple environmental and community benefits. It requires at least 50% of annual funding to go toward "multibenefit works of improvement," defined as projects that provide two or more specific benefits like improved fish habitat, better water quality, water conservation, or flood-risk reduction. The bill ensures that at least 20% of project benefits directly support agriculture or conservation in rural communities, while establishing new definitions for terms like "water conservation" and "multibenefit work of improvement." It also creates new notification requirements for Congress regarding major projects exceeding certain cost thresholds.