The investment is part of DOI’s WaterSMART Program, which helps tackle water challenges in the US.
The agency will spend over $24m in grants for 50 water and energy efficiency projects in 12 western states, more than $23m for seven water reclamation and reuse projects in California.
About $2m will be invested for seven water reclamation and reuse feasibility studies in California and Texas.
The investment is expected to help cities such as Los Angeles undertake their sustainability objectives, further build local water supply and reduce dependence on imported water.
Bureau of Reclamation Commissioner Estevan López said: "Through the WaterSMART Program, Reclamation is providing funding for water conservation improvements and water reuse projects across the West.
"We hope this federal funding for water reuse and efficiency will help us leverage scarce resources between the state and federal governments to bring much-needed relief for the people and environment of California."
WaterSMART program, which was established in 2010, has offered around $250m in competitively-awarded funding to non-federal partners, including tribes, water districts, municipalities and universities.
The investments have resulted in the conservation of enough water for over 3.8 million people.
