Big Investments in Water Infrastructure Welcome News for Western Growers
March 18, 2026 The U.S. Department of the Interior has announced $889 million in investments for critical water infrastructure projects across the West. The funding will support 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.
The legislation provides $1 billion to the Bureau of Reclamation through 2034 to restore and expand existing water conveyance systems and increase surface water storage capacity across the West.
California projects will receive $540 million of the total funding to support improvements to major water conveyance systems and storage projects that serve farms, communities and businesses throughout the Central Valley.
The Delta-Mendota Canal will receive $235 million, the largest allocation from the legislation. 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-Kern Canal will receive $200 million for subsidence correction efforts along the canal.
The San Luis Canal will receive $50 million to address subsidence issues affecting water delivery reliability.
The Tehama-Colusa Canal Authority pumping plant will receive $15 million to increase flow rates and improve system performance.
An additional $40 million will support planning and preconstruction activities associated with raising Shasta Dam, 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.
In response to the announcement, Western Growers issued the following statement: “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,” says Western Growers President and CEO Dave Puglia.
For more details and to learn about other projects to be supported by the water infrastructure investments, visit doi.gov.