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Fong Announces $540 Million in Federal Funds Secured for CA Water Projects

March 17, 2026

Applauds Department of Interior for Historic Investment

WASHINGTON, D.C. — Today, Congressman Vince Fong (CA-20) announced that the Department of the Interior will provide California with $540 million in federal funding which will directly benefit the state’s water infrastructure. Congressman Fong, along with Congressman Valadao and his other California colleagues, secured this funding through relentless advocacy after their successful efforts to include $1 billion in western water infrastructure funding in the Working Families Tax Cuts Act (P.L. 119-21). These dollars will be used to fix aging systems throughout the western United States, helping to bolster water supply, delivery, and conservation in a region plagued by boom-and-bust cycles of water availability.

“Water is the lifeblood of the Central Valley, and today’s announcement marks a monumental investment in securing its future.

“Unfortunately, while we grow nearly three-quarters of the nation’s fresh fruits and nuts and half of its vegetables, we lack the infrastructure needed to store and move this precious resource effectively. This historic $540 million investment begins to address this critical need.

“I worked with President Trump and my California colleagues to secure this funding, which will directly strengthen the Friant-Kern, Delta-Mendota, and Tehama-Colusa canals, as well as the California Aqueduct and the Shasta Dam and Reservoir Enlargement Project. These are not just upgrades—they are transformative investments that will modernize how water moves across our state and ensure reliable delivery to communities, businesses, and farms.

“I’m grateful to the Department of the Interior and the Bureau of Reclamation for stepping up and partnering with us to meet this moment. We must continue to bring California’s water management practices into the 21st century by reforming decades-old regulations and prioritizing the construction of water storage and conveyance infrastructure.

“This is how we secure California’s water future—now and for generations to come.”

Specifically, the Department of Interior has awarded the following funding amounts to the below projects:

  • $40 million – Shasta Dam and Reservoir Enlargement Project
  • $200 million – Friant-Kern Canal Middle Reach Capacity Correction Project
  • $235 million – Delta-Mendota Canal Subsidence Correction Project
  • $50 million – San Luis Canal, California Aqueduct
  • $15 million – Tehama Colusa Canal

Canal infrastructure throughout the Central Valley has been sinking due to lowered groundwater levels, causing subsidence-related capacity issues on the major water delivery arteries intersecting our state. Along some stretches of these canals, subsidence was so severe that it has reduced water delivery by nearly 60%. Without proper canal conveyance systems, water cannot reach the Central Valley’s abundant farmland or urban communities in the Los Angeles region.

The funding allocated to the above canals will materialize in projects that can break ground within the year. Additionally, the funding for Shasta Dam will allow for the completion of the preconstruction phase of raising the existing dam by more than 18 feet at California’s most iconic and largest reservoir, leading to an additional 634,000 acre-feet of storage capacity.

In recent years, the Golden State has pursued policies that limit the construction of new reservoirs and prioritize wasteful water flows, both of which are exacerbated by our boom-and-bust cycle of water availability. The state’s 2022 water year was characterized by extreme drought following the driest three-year period on record. In contrast, 2023 was considered a “miracle” year with record-breaking precipitation, snowpack reaching 237% of average, and reservoirs filling to 128% of their historical average. This led to historic flooding throughout the Central Valley and the reemergence of Tulare Lake, demonstrating the need for additional capacity at our reservoirs and hardened canal systems throughout the state. The Department of Interior’s targeted investments in California’s water system will be critical to ensuring stable water supplies needed for our economic well-being and our national food supply.

Issues:Congress