Business
Some big water agencies in farming areas get water for free. Critics say that needs to end
The water that flows down irrigation canals to some of the West’s biggest expanses of farmland comes courtesy of the federal government for a very low price — even, in some cases, for free.
In a new study, researchers analyzed wholesale prices charged by the federal government in California, Arizona and Nevada, and found that large agricultural water agencies pay only a fraction of what cities pay, if anything at all. They said these “dirt-cheap” prices cost taxpayers, add to the strains on scarce water, and discourage conservation — even as the Colorado River’s depleted reservoirs continue to decline.
“Federal taxpayers have been subsidizing effectively free water for a very, very long time,” said Noah Garrison, a researcher at UCLA’s Institute of the Environment and Sustainability. “We can’t address the growing water scarcity in the West while we continue to give that water away for free or close to it.”
The report, released this week by UCLA and the environmental group Natural Resources Defense Council, examines water that local agencies get from the Colorado River as well as rivers in California’s Central Valley, and concludes that the federal government delivers them water at much lower prices than state water systems or other suppliers.
The researchers recommend the Trump administration start charging a “water reliability and security surcharge” on all Colorado River water as well as water from the canals of the Central Valley Project in California. That would encourage agencies and growers to conserve, they said, while generating hundreds of millions of dollars to repair aging and damaged canals and pay for projects such as new water recycling plants.
“The need for the price of water to reflect its scarcity is urgent in light of the growing Colorado River Basin crisis,” the researchers wrote.
The study analyzed only wholesale prices paid by water agencies, not the prices paid by individual farmers or city residents. It found that agencies serving farming areas pay about $30 per acre-foot of water on average, whereas city water utilities pay $512 per acre-foot.
In California, Arizona and Nevada, the federal government supplies more than 7 million acre-feet of water, about 14 times the total water usage of Los Angeles, for less than $1 per acre-foot.
And more than half of that — nearly one-fourth of all the water the researchers analyzed — is delivered for free by the U.S. Bureau of Reclamation to five water agencies in farming areas: the Imperial Irrigation District, Palo Verde Irrigation District and Coachella Valley Water District, as well as the Truckee-Carson Irrigation District in Nevada and the Unit B Irrigation and Drainage District in Arizona.
Along the Colorado River, about three-fourths of the water is used for agriculture.
Farmers in California’s Imperial Valley receive the largest share of Colorado River water, growing hay for cattle, lettuce, spinach, broccoli and other crops on more than 450,000 acres of irrigated lands.
The Imperial Irrigation District charges farmers the same rate for water that it has for years: $20 per acre-foot.
Tina Shields, IID’s water department manager, said the district opposes any surcharge on water. Comparing agricultural and urban water costs, as the researchers did, she said, “is like comparing a grape to a watermelon,” given major differences in how water is distributed and treated.
Shields pointed out that IID and local farmers are already conserving, and this year the savings will equal about 23% of the district’s total water allotment.
“Imperial Valley growers provide the nation with a safe, reliable food supply on the thinnest of margins for many growers,” she said in an email.
She acknowledged IID does not pay any fee to the government for water, but said it does pay for operating, maintaining and repairing both federal water infrastructure and the district’s own system.
“I see no correlation between the cost of Colorado River water and shortages, and disagree with these inflammatory statements,” Shields said, adding that there “seems to be an intent to drive a wedge between agricultural and urban water users at a time when collaborative partnerships are more critical than ever.”
The Colorado River provides water for seven states, 30 Native tribes and northern Mexico, but it’s in decline. Its reservoirs have fallen during a quarter-century of severe drought intensified by climate change. Its two largest reservoirs, Lake Mead and Lake Powell, are now less than one-third full.
Negotiations among the seven states on how to deal with shortages have deadlocked.
Mark Gold, a co-author, said the government’s current water prices are so low that they don’t cover the costs of operating, maintaining and repairing aging aqueducts and other infrastructure. Even an increase to $50 per acre-foot of water, he said, would help modernize water systems and incentivize conservation.
A spokesperson for the U.S. Interior Department, which oversees the Bureau of Reclamation, declined to comment on the proposal.
The Colorado River was originally divided among the states under a 1922 agreement that overpromised what the river could provide. That century-old pact and the ingrained system of water rights, combined with water that costs next to nothing, Gold said, lead to “this slow-motion train wreck that is the Colorado right now.”
Research has shown that the last 25 years were likely the driest quarter-century in the American West in at least 1,200 years, and that global warming is contributing to this megadrought.
The Colorado River’s flow has decreased about 20% so far this century, and scientists have found that roughly half the decline is due to rising temperatures, driven largely by fossil fuels.
In a separate report this month, scientists Jonathan Overpeck and Brad Udall said the latest science suggests that climate change will probably “exert a stronger influence, and this will mean a higher likelihood of continued lower precipitation in the headwaters of the Colorado River into the future.”
Experts have urged the Trump administration to impose substantial water cuts throughout the Colorado River Basin, saying permanent reductions are necessary. Kathryn Sorensen and Sarah Porter, researchers at Arizona State University’s Kyl Center for Water Policy, have suggested the federal government set up a voluntary program to buy and retire water-intensive farmlands, or to pay landowners who “agree to permanent restrictions on water use.”
Over the last few years, California and other states have negotiated short-term deals and as part of that, some farmers in California and Arizona are temporarily leaving hay fields parched and fallow in exchange for federal payments.
The UCLA researchers criticized these deals, saying water agencies “obtain water from the federal government at low or no cost, and the government then buys that water back from the districts at enormous cost to taxpayers.”
Isabel Friedman, a coauthor and NRDC researcher, said adopting a surcharge would be a powerful conservation tool.
“We need a long-term strategy that recognizes water as a limited resource and prices it as such,” she wrote in an article about the proposal.
Business
Rent-hike ban to protect fire victims ends despite gouging concerns
A rule intended to prevent rent gouging in the wake of the Eaton and Palisades fires has lapsed in Los Angeles County, possibly exposing some renters to hikes.
The executive order that blocked rent increases was issued by Gov. Gavin Newsom amid the devastating wildfires last year. Under the order, landlords couldn’t increase rents by more than 10% above their prefire levels.
The rule, which was supposed to be temporary and was repeatedly extended, ended Friday after a vote to extend it again failed to garner enough votes. Supervisor Lindsey Horvath, whose district includes Pacific Palisades, sounded the alarm in a motion to extend price protections that failed to pass at the Board of Supervisors’ May 19 meeting.
“These price gouging protections continue to be necessary as construction and rebuilding continue, and as thousands of people remain displaced,” the motion said. “Families which signed short-term leases could face drastic price increases of 50% or more without further price gouging protection.”
Los Angeles County is home to more than 1 million rental properties, though not all of them needed protection from the new rule. There are already stricter rent increase caps for many residences, depending on the location, type and age of the building. Despite the rent control in the region, the people of Los Angeles pay among the highest rents in the country.
It is uncertain whether renters will face rapidly rising rents now that the protection has lapsed. But some real estate experts and policymakers said there was no need for the temporary rule that was part of the governor’s state of emergency.
Supervisors Kathryn Barger, Janice Hahn and Holly Mitchell abstained from voting on the motion to extend the protection, while Supervisors Hilda Solis and Horvath supported it.
“I abstained because I did not see sufficient evidence to justify extending this emergency ordinance, nor did I see evidence to eliminate it entirely,” Hahn said.
Barger’s office said she supported allowing the protections to sunset while waiting to see whether new information emerged.
“Market data already shows countywide rents are only about 2% above pre-emergency levels and rental inventory has grown,” Barger representative Helen E. Chavez Garcia said. “The Supervisor is also mindful of the burden these ongoing protections place on small property owners throughout the county.”
Mitchell did not immediately respond to a request for comment.
There haven’t been steep rent hikes in neighborhoods within three miles of the Palisades fire, according to a Times analysis of data from Zillow, the property listing company.
In ZIP Codes within three miles of the Palisades fire, rent increased 4.8% from December 2024 to April 2025. In areas around the Eaton fire, which destroyed swaths of Altadena, rent jumped 5.2% in the same period.
In L.A. County, ZIP Codes farther from the fires saw only about a 2% increase.
A landlords representative, Jesus Rojas of the Apartment Owners Assn. of Greater Los Angeles, told the supervisors during public comment at the meeting that the county’s rent-gouging rules have “long outlived the emergency they were intended to address” and are now being “wrongfully used to harm thousands of rental housing providers throughout the county.”
“There is no proof that multifamily rental housing providers are hugely increasing rents for impacted homeowners,” Rojas said.
Indeed, there are strong signs that the property market in the Los Angeles area has at last begun to cool.
L.A. metro-area rent prices recently fell to a four-year low, with the median rent slipping to $2,167 in December.
Meanwhile, condominium sales had their slowest start of the year in decades. Condo sales in Los Angeles have plummeted to a 20-year low, with fewer than 2,000 units sold in January and February — the worst start to the year since 2005.
Newsom defended the price-gouging protections shortly after they went into effect.
“In the days following the Los Angeles firestorms, we worked quickly to protect Los Angeles survivors from any form of exploitation,” he said in February 2025. “The state has the tools in place to not only block price gouging during this emergency, but also to prosecute bad actors.”
The Los Angeles County Department of Consumer and Business Affairs said it received more than 2,000 complaints after the fires, alleging that retailers and landlords were taking advantage of people put in hardship by their losses, and sent out more than 2,000 cease-and-desist letters to businesses and landlords for alleged price gouging, said Morine Merritt, who oversees department investigations into consumer and real estate fraud.
“Close to 90% of the complaints that we received involved allegations of rent increases,” Merritt said in an interview. Now that the fire-related protections have expired, existing laws and “regular market conditions determine price increases for goods and services, including rents,” she said.
Crackdowns on fire-related rent gouging have been rare, said Chelsea Kirk of the activist organization the Rent Brigade, which analyzed L.A. County’s rental market in the year after the fires. It reported 18,360 potential examples of price gouging in listings but said that few lawsuits had been filed by authorities so far.
Last week, Rent Brigade announced what it said was the first private civil lawsuit brought by a family that claimed to be rent-gouged in the aftermath of the wildfires. Plaintiffs Randall and Candy Renick, whose Altadena home was damaged, said they were charged nearly three times the maximum permitted rate for nearly 10 months. They seek restitution of $96,000 plus civil penalties and attorneys’ fees.
The rental market has probably stabilized since the fires, Kirk said, but other families may still be “locked into illegal rents” that they agreed to pay when they were in a rush to find housing after they were displaced.
Business
Read Nick Bilton’s Letter to Scott Pelley
Dear Mr. Pelley:
I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.
Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.
Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.
Sincerely,
Nick Bilton
Executive Producer, 60 Minutes
Business
Aspiration co-founder sentenced to 14 years for fraud
The co-founder of Aspiration, Joseph Sanberg, was sentenced to 14 years in prison on Monday after defrauding investors and lenders of over $248 million.
The startup, an eco-friendly digital banking company boasting fossil fuel-free investments, carbon offsets for gas purchases, and a debit card with cash-back benefits for shopping at clean companies, was founded by Sanberg and Andrei Cherny. Cherny left the company in 2022 and has not been charged.
Sanberg, an Orange County native, pleaded guilty to wire fraud in October after being arrested in March last year. Aspiration subsequently filed for bankruptcy and liquidated all of its assets by July.
Sanberg and venture capitalist Ibrahim AlHusseini, who also faces charges, together forged a series of bank statements in order to obtain loans. From 2020 to 2021, the pair forged AlHusseini’s bank statements to show millions of dollars in assets in order to obtain millions of dollars from lenders.
Additionally, they forged a letter from their audit committee stating that $250 million in funds were available, when in reality Aspiration had less than $1 million. The amount of loans defrauded exceeded $248 million.
In 2021, Sanberg artificially inflated Aspiration’s 2021 revenue by $44 million by recruiting 27 fake customers to sign letters of intent pledging tens of thousands of dollars per month for tree planting services. Sanberg himself funded the contracts and used the inflated revenue numbers to obtain more loans.
The charges sparked an NBA investigation into salary cap allegations due to Aspiration’s connections with Clippers owner Steve Ballmer.
Ballmer personally invested $60 million in Aspiration, all of which was lost. He is now the target of a civil lawsuit alleging his participation in the scheme. Ballmer denies the allegations.
The team announced a $300-million sponsorship deal with Aspiration, and Clippers player Kawhi Leonard signed a four-year, $28-million marketing contract with the company, which reportedly performed no duties. The issue has raised concerns about how players are circumventing the NBA’s salary cap.
The team lost the $300-million sponsorship deal and an additional $20 million paid for carbon offset purchases.
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