Urban Watershed Restoration Act of 1994

Urban Watershed Restoration Act of 1994 - Amends the Federal Water Pollution Control Act to require the Administrator of the Environmental Protection Agency (EPA) to establish a National Urban Watershed Restoration Program to be administered by each State which has a demonstrated successful urban river restoration program or by the Regional EPA Administrator in States without such programs.

Allocates at least 25 percent of funds made available for nonpoint source pollution management to the Program. Provides for grants and technical assistance for projects meeting this Act's requirements. Limits the Federal share of a project's cost to 60 percent of the total cost.

Sets forth conditions for project selection.

Gives priority to projects that assist in the: (1) meeting of municipal stormwater discharge and combined sewer overflow permit program requirements; (2) implementation of national estuary plans; and (3) development and implementation of stream protection measures and monitoring. Establishes other factors with respect to priority consideration, including that a project will be carried out in a low-income area and will correct a problem which contributes to economic, social, and environmental degradation.

Lists projects eligible for funding under the Program.