Feds pump $540M into California’s crumbling canals

By Camille von Kaenel | 03/18/2026 06:33 AM EDT

The funding announcement shows President Donald Trump delivering for Central Valley farmers — but not as much as they wanted.

This photo shows a buckle in the lining of the Delta Mendota Canal caused by sinking land near Dos Palos, California.

The new federal funding will go toward repairing canals that are sinking and cracking because of land subsidence. Scott Smith/AP

The Interior Department announced nearly $900 million in new spending on water storage and conveyance projects across the West on Tuesday, with the bulk going to repairing sinking canals in California’s Central Valley.

What happened: The funding comes from a set-aside in HR 1, the spending bill passed by Congress last summer and signed into law by President Donald Trump.

California will receive $540 million, followed by projects in Idaho, North Dakota, South Dakota, Utah and Wyoming.

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The biggest single amount, $235 million, will go to the Delta-Mendota Canal, followed by the Friant-Kern Canal at $200 million and the San Luis Canal at $50 million. The money is meant to repair the canals, which move irrigation water around the Central Valley, after decades of groundwater over-pumping has caused the land to sink and the canals to crack, reducing their ability to move water.

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