Interior Announces $540 Million Investment in California Water by ACWA Staff Mar 17, 2026 Water News WASHINGTON, D.C. — The Department of the Interior today announced $889 million in investments for critical water infrastructure projects across the West, with $540 million going to California projects. The investment will support improvements to major water conveyance systems and storage projects that serve farms, communities and businesses throughout the Central Valley. The largest allocation, $235 million, will fund improvements to the Delta-Mendota Canal, operated and maintained by the San Luis & Delta-Mendota Water Authority. The funding will support rehabilitation of the upper canal, including raising canal embankments, repairing check structures and advancing potential construction of a new concrete-lined canal segment. The Friant Water Authority will receive $200 million for subsidence correction efforts along the Friant-Kern Canal. The Interior Department will invest $50 million to address subsidence issues on the San Luis Canal affecting water delivery reliability. The canal is jointly operated by the U.S. Bureau of Reclamation and the Department of Water Resources. The Tehama-Colusa Canal Authority will receive $15 million to increase flow rates and improve system performance at its pumping plant. An additional $40 million will support planning and preconstruction activities associated with raising Shasta Dam, operated by the Bureau, which will increase water storage capacity by approximately 634,000 acre-feet. That volume of water is enough to supply about 2.5 million people for a year. “The Friant-Kern Canal is a lifeline for farms, communities, and groundwater recharge efforts throughout the San Joaquin Valley,” stated Johnny Amaral, Chief Executive Officer of Friant Water Authority (FWA), in a news release. “It cannot be overstated how important and lasting this funding will be for FWA and the communities we serve.” Westlands Water District also issued a news release expressing appreciation for the funding. “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,” stated General Manager Allison Febbo, in a news release. “This year’s mix of wet days followed by an unusual March heatwave 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.” Made possible by the One Big Beautiful Bill Act, the funding will support U.S. Bureau of Reclamation projects in California, Idaho, North Dakota, South Dakota, Utah and Wyoming that improve water conveyance, expand storage and modernize infrastructure that supports American communities and agriculture.
