Delta Mendota Canal cropped photo by flickr user Dave Park under CC license https://creativecommons.org/licenses/by/2.0/

California’s Central Valley is set to receive its largest-ever federal water investment — $540 million directed at aging canals, conveyance systems, and reservoir expansion — with Fresno, Kings, Madera, and Tulare counties among the primary beneficiaries.

The funding, secured through the Working Families Tax Cuts Act, was announced by the U.S. Department of the Interior and Bureau of Reclamation. Rep. Vince Fong (CA-20) and Rep. David Valadao (CA-22) were central to the effort, spending nearly a year lobbying for its passage and release.

“Water is the lifeblood of the Central Valley, and today’s announcement marks a monumental investment in securing its future,” Fong said. “These are not just upgrades — they are transformative investments that will modernize how water moves across our state.”

The largest single allocation — $235 million — goes to the Delta-Mendota Canal Subsidence Correction Project, which serves farms, communities, and wildlife refuges across the San Joaquin, San Benito, and Santa Clara Valleys. Decades of groundwater pumping have caused significant land subsidence along parts of the canal, reducing water delivery capacity by as much as 60% in some stretches.

Federico Barajas, executive director of the San Luis & Delta-Mendota Water Authority, called the award “an important step toward restoring the capacity and performance of a critical component of the Central Valley Project,” adding that the investment will improve long-term affordability for water users across the region.

The Friant-Kern Canal, which runs through Tulare and Kern counties and serves much of the east side of the San Joaquin Valley, is slated to receive $200 million for its own subsidence correction work. Johnny Amaral, CEO of the Friant Water Authority, said the announcement “will leave a lasting imprint on the east side of the San Joaquin Valley for generations.”

Additional allocations include $50 million for the San Luis Canal, $40 million toward planning and preconstruction for enlarging Shasta Dam — which could add 634,000 acre-feet of storage capacity — and $15 million for the Tehama-Colusa Canal.

Westlands Water District General Manager Allison Febbo welcomed the scope of the investment. “This year’s mix of wet days followed by an unusual March heatwave only demonstrates how critical expanding storage capacity is,” she said. “It is a practical, forward-looking, and essential strategy.”

The Central Valley produces nearly three-quarters of the nation’s fresh fruits and nuts and half of its vegetables. Proponents argue that without reliable water infrastructure, the region’s agricultural economy — and the national food supply it supports — remains vulnerable to the state’s volatile boom-and-bust water cycles.

Construction on canal projects is expected to begin within the year.