April 02, 2026

Western water projects receive $889M boost under federal infrastructure funding

The investments target irrigation canals, storage and delivery systems. Read more on how the funding will impact agriculture and communities.

2 minute read
The Department of the Interior announced $889 million in funding for water infrastructure projects across the western United States. 

The investments, provided via the Trump Administration’s One Big Beautiful Bill, support projects in California, Idaho, North Dakota, South Dakota, Utah and Wyoming focused on irrigation water delivery and storage, as well as system upgrades.

Where did funding come from?

Legislation approved last summer unlocked $1 billion in funds earmarked to the Bureau of Reclamation through 2034 for these much-needed improvements to existing water delivery systems and expanded surface water storage capacity.

“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,” said Dave Puglia, president and CEO, Western Growers. “Farmers in California’s Central Valley are grateful for this much-needed investment in economic sustainability.”

Where improvements are being made

California water system projects account for well over half ($540 million) of the total approved funding, with several major canal and storage efforts in the Central Valley receiving support:

  • The Delta-Mendota Canal will receive $235 million for rehabilitation work, including embankment improvements and structural repairs. 
  • The Friant-Kern Canal is allocated $200 million for subsidence correction
  • The San Luis Canal will receive $50 million to correct issues affecting water delivery. 
  • The Tehama-Colusa Canal Authority pumping plant will receive $15 million to increase flow capacity.
  • An additional $40 million is designated for planning and preconstruction related to raising Shasta Dam, a project that will increase total storage capacity by 634,000 acre-feet.

Other projects funded through the legislation

Idaho

$30 million for a conveyance and pump storage project in the Lewiston Orchards Irrigation District.

North Dakota

$100 million for the Eastern North Dakota Alternate Water Supply Project to support municipal and rural water systems.

$8 million for repairs to the McClusky Canal and Snake Creek pumping plant within the Garrison Diversion Unit.

South Dakota

$11 million for the Belle Fourche Siphon lining project to repair aging infrastructure serving more than 24,000 acres.

Utah

$100 million to replace the Highline Canal near Duchesne with an enclosed pipeline to improve delivery efficiency.

Wyoming

$100 million for repairs to the Fort Laramie Tunnels to address long-term structural concerns.

The Department of the Interior says the projects will improve the reliability and efficiency of water delivery systems and support agricultural and municipal water use across the region.