A bill to modify the Galveston Channel 40-foot project for navigation in Galveston Bay, Texas.

Modifies the Galveston Channel 40-foot project for navigation in Galveston Bay, Texas, as authorized under the Flood Control Act of 1965, to provide that non-Federal interests contribute 25 percent of the costs of areas required by disposal of spoil and of necessary retaining dikes, bulkheads, embankments, levees, and spillways. Allows a credit for reasonable expenditures for such acquisition and construction. Waives the 25 percent contribution requirement upon findings by the Administrator of the Environmental Protection Agency that political and industrial concerns are complying with an approved waste treatment plan and water quality standards are not being violated.