Governor Newsom and state lawmakers have reached a budget agreement for the 2025-2026 fiscal year, though additional budget items are expected over the summer. Newsom’s approval of the spending plan hinges on lawmakers passing a bill to streamline new housing development by reforming the California Environmental Quality Act, a priority he has advocated for since May. While the governor’s proposed budget included plans to fast-track the Delta Conveyance Project, budget documents reveal this initiative will not move forward.
Here are reactions from the Delta Caucus, Californians for Water Security, State Water Contractors, and the Southern California Water Coalition.
From the Delta Caucus:
From State Senator Jerry McNerney: Delta Caucus Co-Chairs Senator Jerry McNerney, D-Pleasanton, and Assemblywoman Lori D. Wilson, D-Suisun City, on Wednesday applauded the 2025-26 California budget agreement for excluding Governor Gavin Newsom’s controversial proposal to fast-track the costly and destructive Delta Tunnel Project.
“Keeping the tunnel fast-tracking proposal out of the state budget is an important victory for California and the Delta, and for the communities, farms, and historic resources surrounding the largest estuary on the West Coast. The 45-mile-long, $20-plus billion water tunnel project not only would devastate much of the Delta region, but is also unaffordable and unnecessary,” said Sen. McNerney, whose district includes the heart of the Delta region. “The Legislature and Governor should pursue alternatives that will cost far less and would safeguard California’s main water supply system without inflicting major harm to it, such as fortifying Delta levees and increasing water recycling, water efficiency, and groundwater storage.”
“Excluding this proposal from the budget rightly avoids rushing a decision on a project of this magnitude,” said Assemblywoman Wilson. “If the Governor chooses to pursue the Delta Tunnel, I urge him to bring it forward through the standard policy committee process, where it can receive the full transparency, debate, and scrutiny it deserves. The Delta Tunnel is a massive, costly, and destructive project that demands serious review, not shortcuts. I echo Senator McNerney’s call to focus instead on smart, sustainable alternatives like levee improvements, water recycling, and groundwater storage — solutions that strengthen our water system without devastating the Delta.”
Last month, Gov. Newsom proposed to fast-track the Delta Tunnel Project in this year’s state budget. The plan would have effectively eliminated environmental and judicial review of the project, while giving the state a blank check to float bonds to pay for the water tunnel.
But after the fast-tracking proposal was met with strong opposition by a broad bipartisan coalition, both the Senate and Assembly agreed to reject it and instead refer the governor’s plan to the regular legislative process.
From Californians for Water Security:
“Although the Governor’s trailer bill to streamline the Delta Conveyance Project was left out of today’s budget agreement, Californians for Water Security remains committed to advancing this critical proposal. Our broad coalition — representing more than 120 labor unions, local governments, social justice leaders, business advocates, and water agencies — will continue working to secure the trailer bill’s passage as follow-up budget items move through the Legislature this summer.
Moving the Delta Conveyance Project forward is essential to protecting the reliability of water deliveries through the State Water Project and is critical to California’s ability to prepare for the impacts of climate change.
The Governor’s proposal would reduce the bureaucratic hurdles and cut red tape that have added time and cost to this vital infrastructure project. Governor Newsom has reiterated that this proposal is one of his top priorities to protect water supplies for more than 27 million Californians and he remains optimistic that it will pass before the end of the legislative session. Californians for Water Security will continue working with legislators to get this done.”
From the State Water Contractors
Yesterday, Governor Newsom and state lawmakers reached a three-party budget agreement for the fiscal year 2025-2026, with more follow-up budget items expected over the summer. Although today’s budget package did not include the Governor’s Delta Conveyance Project (DCP) streamlining proposal, support for this proposal has never been greater, and we are confident that this essential affordability bill will be adopted in 2025.
The DCP is critical to protecting SWP reliability, California’s primary water distribution system. The SWP provides an affordable source of high-quality, clean water for 27 million Californians and 750,000 acres of agricultural land. The DCP has already been legislated through the 2009 Delta Reform Act and has undergone rigorous, transparent environmental review under the California Environmental Quality Act.
Statement from Jennifer Pierre, General Manager of the State Water Contractors: “The Governor’s proposal to maintain affordable water supplies for Californians by expediting administrative processes for the Delta Conveyance Project is still active and currently moving through the legislative process. Several housing bills were included in yesterday’s package, and there can be no housing without reliable water supplies. The Delta Conveyance Project is absolutely necessary to support the State’s housing, clean energy and climate resiliency goals.
“We look forward to working with the Governor and Legislature throughout the summer to finalize this proposal, which is widely supported by a bipartisan group of community leaders and elected officials from across the state, including substantial and growing support among Members of the Legislature.
“While the proposal was not included in yesterday’s budget package, nothing has changed about California’s urgent need to make overdue upgrades to its essential water infrastructure. The move to negotiate details over the summer was expected, and this important conversation about securing California’s water future does not end here. The Governor remains committed to the Delta Conveyance Project, and we remain optimistic that this critical proposal to reduce costs and increase water security for Californians will be passed.”
Southern California Water Coalition Statement on State Budget Agreement
The Southern California Water Coalition (SCWC) acknowledges the three-party state budget agreement reached this week by Governor Newsom and legislative leaders for the 2025–2026 fiscal year. While the Governor’s proposal to streamline the Delta Conveyance Project (DCP) was not included in the initial budget package, momentum for the project is undeniable—and growing by the day among lawmakers, communities, and stakeholders who understand the stakes.
Charles Wilson, Executive Director of SCWC,issued the following statement: “California cannot afford further delay in securing a safe, affordable, and reliable water supply for the 27 million people who depend on the State Water Project. The Delta Conveyance Project is a critical upgrade to this aging system—and each year of inaction drives up costs, increases risk, and weakens our ability to respond to drought, climate extremes, and future growth.”
“We are encouraged by the increasing support from legislative leaders and communities across California who recognize that reliable water is the foundation of everything—public health, housing, clean energy, food security, and economic vitality. The legislative process is still very much alive, and we believe the case for DCP has never been stronger or more urgent.”
“We applaud Governor Newsom for his leadership and continued push to modernize the state’s water infrastructure. The DCP has undergone thorough environmental review, is rooted in science, and is fully consistent with the 2009 Delta Reform Act. It is a forward-looking investment that protects the future without compromising the Delta today.”
“Californians across regions, party lines, and sectors are coalescing around the need for action. The status quo is unsustainable. Together with our growing coalition of supporters, SCWC will keep working tirelessly this summer to move this vital project forward in the Legislature.”
SCWC remains committed to championing policies and infrastructure solutions that protect and enhance water reliability for all Californians—now and for generations to come.
