Tuesday, March 17, 2026

Water

Western Water Infrastructure Gets $889M Federal Investment

The funding strengthens water storage and conveyance projects across the West, including $540 million for projects in California’s Central Valley.

The Department of the Interior has allocated $889 million for critical water infrastructure projects across the West. These projects will run through 2034 and will address sinking canals, expanding reservoir storage and replacing aging delivery systems.

The funding is part of the “One Big Beautiful Bill Act” and will support Bureau of Reclamation projects in California, Idaho, North Dakota, South Dakota, Utah and Wyoming.

California Projects

Projects in California will receive $540 million, targeting the Central Valley Project infrastructure:

  • Delta-Mendota Canal ($235 million) — Repairs to the upper canal, raising canal embankments, repairing check structures and a potential new concrete lining.
  • Friant-Kern Canal ($200 million) — Dedicated to fixing subsidence-related bottlenecks that currently restrict water delivery to the southern Central Valley.
  • San Luis Canal ($50 million) — Subsidence repairs to ensure delivery reliability.
  • Shasta Dam ($40 million) — Planning and pre-construction to raise the dam, aiming to add 634,000 acre-feet of new storage capacity.
  • Tehama-Colusa Canal Authority ($15 million) — Pumping plant upgrades to increase water flow rates.

Other States

This funding will also address several failure points in the Western water grid:

  • Idaho ($30 million) — New pump storage and conveyance for the Lewiston Orchards Irrigation District.
  • Utah ($100 million) — Replacing the 110-year-old open Highline Canal with an enclosed pipeline to improve safety and water delivery efficiency.
  • Wyoming ($100 million) — Long-term structural repairs to the Fort Laramie Tunnels to prevent a total system collapse.
  • North Dakota ($108 million) — Securing a reliable backup water source for eastern North Dakota by using the Missouri River (via the Garrison Diversion and the Eastern North Dakota Alternate Water Supply Project) to protect operations from local groundwater shortages during droughts.
  • South Dakota ($11 million) — Lining the Belle Fourche Siphon to stop leaks currently affecting 24,000 acres of farmland.

New rules allow the Bureau of Reclamation to prioritize irrigation deliveries over some environmental flow requirements. The bureau says that thanks to rain and snow and by relaxing certain restrictions, it was able to divert and store 200,000 acre-feet of winter storm runoff that previously would have been allowed to flow out to the ocean.

“These investments strengthen our nation’s water security, modernize aging infrastructure and support the farmers, communities and industries that depend on reliable water supplies,” says Interior Secretary Doug Burgum. “By helping ensure strong agricultural production and efficient water delivery, this investment also supports more stable and affordable food prices for American families.”

Industry Reaction

Allison Febbo, general manager of Westlands Water District, says the funding toward the Shasta Dam enlargement is a much-needed investment in water supply.

“This critical funding will help put shovels in the ground and position California to better capture and store water during wet years for use during inevitable dry years,” she says. “This year’s mix of wet days followed by an unusual March heat wave only demonstrates how critical expanding storage capacity is in the state. It is a practical, forward-looking and essential strategy that protects necessary water supplies that sustain productive farmland and ensures that our family farmers can continue growing the food that feeds America.”

Febbo also acknowledged the funding to support improvements to the San Luis Canal and Delta-Mendota Canal.

“These facilities are essential components of the Central Valley Project, delivering water to farms and rural communities throughout the San Joaquin Valley,” she says. “Investments in conveyance infrastructure represent a practical step toward improving water supply reliability for the hardworking family farms who produce much of the nation’s food supply.”

Western Growers President and CEO Dave Puglia also expressed gratitude for this critically needed infrastructure funding.

“We are excited to see federal water infrastructure funds being deployed to address critical canal system deficiencies to ensure reliability for California farmers served by those systems,” he says. “Farmers in California’s Central Valley are grateful to President Donald J. Trump and Secretary Doug Burgum for this much-needed investment in economic sustainability.”


Source: The Packer