Politics
Newsom administration unveils new $20-billion cost estimate for delta water tunnel
Gov. Gavin Newsom’s administration announced that the estimated cost of building a tunnel to transport water beneath the Sacramento-San Joaquin River Delta has risen to $20.1 billion.
The estimate is part of a new cost-benefit analysis by the California Department of Water Resources, which concluded that the projected benefits of constructing the water tunnel would far outweigh the costs.
State officials released the analysis Thursday, saying the proposed Delta Conveyance Project is vital to improving the reliability of water supplies in the face of climate change, sea level rise and the risks of an earthquake that could put existing infrastructure out of commission for months.
The state estimates that the project’s benefits would total nearly $38 billion by offsetting steep reductions in water deliveries due to existing infrastructure limitations and climate change.
A gull flies above McLeod Lake in Stockton.
(Brian van der Brug/Los Angeles Times)
“The project easily passes a benefit-cost test,” said David Sunding, a UC Berkeley emeritus professor who led the analysis as a consultant for the state. “The benefits clearly justify the costs.”
The last time the state produced an estimate, in 2020, the price tag came to $16 billion. The cost increase, Sunding said, is almost entirely due to inflation. The projected benefits also increased.
The cost analysis is the state’s latest step toward building the 45-mile tunnel, which would create a second route to draw water from the Sacramento River into the aqueducts of the State Water Project.
Newsom says the project is critical for California’s future, but opponents argue it is a costly boondoggle that would harm the delta and further imperil its ecosystem.
Environmental groups, Indigenous tribes, fishing organizations and local agencies have filed lawsuits seeking to block the project.
This week, dozens of groups filed protests with the State Water Resources Control Board challenging a state petition to change its “point of diversion” in the delta — one of the steps necessary to move forward with construction.
The State Water Project supplies 27 million people and about 750,000 acres of farmland — fueling a $2.3-trillion portion of the state’s economy.
Flooded rice fields along the San Joaquin River in Stockton.
(Brian van der Brug/Los Angeles Times)
But state officials say the state’s existing pumping infrastructure in the south delta, which draws water into the California Aqueduct, is vulnerable to the more intense extremes driven by climate change, as well as sea level rise.
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They estimate that if the state relies on its current infrastructure, there would likely be a 22% reduction in water deliveries by 2070. However, construction of the tunnel would boost supplies by an estimated 400,000 acre-feet annually, compared to the “no project” alternative.
The estimates included an analysis of impacts from sea level rise — using scenarios of a 1.8 feet or 3.5 feet rise by 2070 — which would bring increasing risks of delta levees failing or being overtopped, and higher salinity water encroaching on existing infrastructure.
State officials also analyzed the risk that a major earthquake would pose to the existing infrastructure, which they say could disrupt deliveries of supplies for months. Sunding said the tunnel would have a “superior ability” to withstand earthquakes and would make the state’s system less vulnerable.
A sign of opposition to the Delta Conveyance Project along a levee road near the Sacramento River in Hood.
(Brian van der Brug/Los Angeles Times)
“I get a lump in my throat when I look at the potential for a catastrophic failure in the delta,” said Karla Nemeth, director of the state Department of Water Resources. “This is a project that just provides enormous value to the broad California economy.”
Nemeth said the analysis shows that doing nothing would mean substantial costs for the state through frequent water shortages, mandatory restrictions in cities, and reductions in agricultural supplies that would force farmers to leave fields dry and fallow.
“It is vastly more efficient and economical to avoid declining supplies,” Nemeth said.
The costs of the project would be paid for by urban and agricultural water districts that decide to participate.
The state’s cost-benefit analysis is intended to provide information that local water agencies, such as the Metropolitan Water District of Southern California, will consider.
The Antioch Bridge over the San Joaquin River.
(Brian van der Brug/Los Angeles Times)
In preparing the updated cost estimate, the Delta Conveyance Design and Construction Authority examined potential “design and construction innovations” that could reduce the overall costs by about $1.2 billion.
Currently, about 56% of water deliveries from the State Water Project supply urban areas, while nearly 44% go to agriculture.
The analysis projects that with the tunnel, California would have fewer periods of mandatory water rationing and also less severe rationing, Sunding said. The project “helps to preserve the supplies that would otherwise be eroded through climate change,” he said.
State officials also compared the costs of additional supplies from the tunnel, at $1,325 per acre-foot, to the costs of additional supplies through investments in desalination, wastewater recycling, stormwater capture and conservation.
Sunding said they found the median costs of these other types of investments would be higher, with the exception of conservation, which is “in the same ballpark” with the project.
“But it is important to note that we’ve done a lot of water conservation in the state, particularly in Southern California and some parts of the Bay Area, and a lot of the cheapest water conservation projects have already been done,” Sunding said. “So there are limits to how much more water conservation there can be.”
However, other experts say California still has a great deal of potential to continue reducing water use through conservation. Researchers with the Pacific Institute, a water think tank, found in a 2022 study that the state could reduce water use by more than 30% in cities and suburbs by investing in measures to use water more efficiently.
Opponents of the tunnel project have argued the state should instead invest in other approaches in the delta, such as shoring up levees and restoring natural floodplains to reduce flood risks, while changing water management to protect the estuary’s health.
An angler casts into Bethany Reservoir in Byron.
(Brian van der Brug/Los Angeles Times)
Fish populations have suffered declines in recent years, and environmentalists say the tunnel would cause additional ecological harm.
State officials say the tunnel would lessen limitations on water deliveries linked to fish protections at the state’s existing pumping facilities in the south delta.
They point to this year as an example. Despite a wet winter and ample river flows, a rise in the deaths of steelhead trout and other fish in areas around the pumps forced reductions in pumping.
The Department of Water Resources said that if the delta tunnel had been in operation this year, an additional 909,000 acre-feet of water could have been delivered from intakes in the north delta, helping to resolve what officials described as “difficult conflicts” in the south delta.
“The status quo is not an option going forward. It’s just not something that can be maintained,” Sunding said. “One way or another, the system is going to change. Climate change is going to have its impact.”
Politics
Wyoming Supreme Court rules laws restricting abortion violate state constitution
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The Wyoming Supreme Court ruled on Tuesday that a pair of laws restricting abortion access violate the state constitution, including the country’s first explicit ban on abortion pills.
The court, in a 4-1 ruling, sided with the state’s only abortion clinic and others who had sued over the abortion bans passed since the U.S. Supreme Court overturned Roe v. Wade in 2022, which returned the power to make laws on abortion back to the states.
Despite Wyoming being one of the most conservative states, the ruling handed down by justices who were all appointed by Republican governors upheld every previous lower court ruling that the abortion bans violated the state constitution.
Wellspring Health Access in Casper, the abortion access advocacy group Chelsea’s Fund and four women, including two obstetricians, argued that the laws violated a state constitutional amendment affirming that competent adults have the right to make their own health care decisions.
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The Wyoming Supreme Court ruled that a pair of laws restricting abortion access violate the state constitution. (Tom Williams/CQ-Roll Call, Inc via Getty Images)
Voters approved the constitutional amendment in 2012 in response to the federal Affordable Care Act, which is also known as Obamacare.
The justices in Wyoming found that the amendment was not written to apply to abortion but noted that it is not their job to “add words” to the state constitution.
“But lawmakers could ask Wyoming voters to consider a constitutional amendment that would more clearly address this issue,” the justices wrote.
Wellspring Health Access President Julie Burkhart said in a statement that the ruling upholds abortion as “essential health care” that should not be met with government interference.
“Our clinic will remain open and ready to provide compassionate reproductive health care, including abortions, and our patients in Wyoming will be able to obtain this care without having to travel out of state,” Burkhart said.
Wellspring Health Access opened as the only clinic in the state to offer surgical abortions in 2023, a year after a firebombing stopped construction and delayed its opening. A woman is serving a five-year prison sentence after she admitted to breaking in and lighting gasoline that she poured over the clinic floors.
Wellspring Health Access opened as the only clinic in the state to offer surgical abortions in 2023, a year after a firebombing stopped construction. (AP)
Attorneys representing the state had argued that abortion cannot violate the Wyoming constitution because it is not a form of health care.
Republican Gov. Mark Gordon expressed disappointment in the ruling and called on state lawmakers meeting later this winter to pass a constitutional amendment prohibiting abortion that residents could vote on this fall.
An amendment like that would require a two-thirds vote to be introduced as a nonbudget matter in the monthlong legislative session that will primarily address the state budget, although it would have significant support in the Republican-dominated legislature.
“This ruling may settle, for now, a legal question, but it does not settle the moral one, nor does it reflect where many Wyoming citizens stand, including myself. It is time for this issue to go before the people for a vote,” Gordon said in a statement.
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Gov. Mark Gordon expressed disappointment in the ruling. (Getty Images)
One of the laws overturned by the state’s high court attempted to ban abortion, but with exceptions in cases where it is needed to protect a pregnant woman’s life or in cases of rape or incest. The other law would have made Wyoming the only state to explicitly ban abortion pills, although other states have implemented de facto bans on abortion medication by broadly restricting abortion.
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Abortion has remained legal in the state since Teton County District Judge Melissa Owens blocked the bans while the lawsuit challenging the restrictions moved forward. Owens struck down the laws as unconstitutional in 2024.
Last year, Wyoming passed additional laws requiring abortion clinics to be licensed surgical centers and women to receive ultrasounds before having medication abortions. A judge in a separate lawsuit blocked those laws from taking effect while that case moves forward.
The Associated Press contributed to this report.
Politics
What Trump’s vow to withhold federal child-care funding means in California
SACRAMENTO — Gov. Gavin Newsom and other state Democratic leaders accused President Trump of unleashing a political vendetta after he announced plans to freeze roughly $10 billion in federal funding for child care and social services programs in California and four other Democrat-controlled states.
Trump justified the action in comments posted on his social media platform Truth Social, where he accused Newsom of widespread fraud. The governor’s office dismissed the accusation as “deranged.”
Trump’s announcement came amid a broader administration push to target Democratic-led states over alleged fraud in taxpayer-funded programs, following sweeping prosecutions in Minnesota. The U.S. Department of Health and Human Services confirmed the planned funding freeze, which was first reported by the New York Post.
California officials said they have received no formal notice and argued the president is using unsubstantiated claims to justify a move that could jeopardize child care and social services for low-income families.
How we got here
Trump posted on his social media site Truth Social on Tuesday that under Newsom, California is “more corrupt than Minnesota, if that’s possible???” In the post, Trump used a derogatory nickname for Newsom that has become popular with the governor’s critics, referring to him as “Newscum.”
“The Fraud Investigation of California has begun,” Trump wrote.
The president also retweeted a story by the New York Post that said his Department of Health and Human Services will freeze taxpayer funding from the Child Care Development Fund, the Temporary Assistance for Needy Families program, which is known as CalWORKS in California, and the Social Services Block Grant program. Health and Human Services said the affected states are California, Colorado, Illinois, Minnesota and New York.
“For too long, Democrat-led states and Governors have been complicit in allowing massive amounts of fraud to occur under their watch,” said Andrew Nixon, a department spokesperson. “Under the Trump Administration, we are ensuring that federal taxpayer dollars are being used for legitimate purposes. We will ensure these states are following the law and protecting hard-earned taxpayer money.”
The department announced last month that all 50 states will have to provide additional levels of verification and administrative data before they receive more funding from the Child Care and Development Fund after a series of fraud schemes at Minnesota day-care centers run by Somali residents.
“The Trump Administration is using the moral guise of eliminating ‘fraud and abuse’ to undermine essential programs and punish families and children who depend on these services to survive, many of whom have no other options if this funding disappears,” Kristin McGuire, president of Young Invincibles, a young-adult nonprofit economic advocacy group, said in a statement. “This is yet another ideologically motivated attack on states that treats millions of families as pawns in a political game.”
California pushes back
Newsom’s office brushed off Trump’s post about fraud allegations, calling the president “a deranged, habitual liar whose relationship with reality ended years ago.” Newsom himself said he welcomes federal fraud investigations in the state, adding in an interview on MS NOW that aired Monday night: “Bring it on. … If he has some unique insight and information, I look forward to partnering with him. I can’t stand fraud.”
However, Newsom said cutting off funding hurts hardworking families who rely on the assistance.
“You want to support families? You believe in families? Then you believe in supporting child care and child-care workers in the workforce,” Newsom told MS NOW.
California has not been notified of any changes to federal child-care or social services funding. H.D. Palmer, a spokesperson for the Department of Finance, said the only indication from Washington that California’s child-care funding could be in jeopardy was the vague 5 a.m. post Tuesday by the president on Truth Social.
“The president tosses these social media missives in the same way Mardi Gras revelers throw beads on Bourbon Street — with zero regard for accuracy or precision,” Palmer said.
In the current state budget, Palmer said, California’s child-care spending is $7.3 billion, of which $2.2 billion is federal dollars. Newsom is set to unveil his budget proposal Friday for the fiscal year that begins July 1, which will mark the governor’s final spending plan before he terms out. Newsom has acknowledged that he is considering a 2028 bid for president, but has repeatedly brushed aside reporters’ questions about it, saying his focus remains on governing California.
Palmer said while details about the potential threat to federal child-care dollars remain unclear, what is known is that federal dollars are not like “a spigot that will be turned off by the end of the week.”
“There is no immediate cutoff that will happen,” Palmer said.
Since Trump took office, California has filed dozens of legal actions to block the president’s policy changes and funding cuts, and the state has prevailed in many of them.
What happened in Minnesota
Federal prosecutors say Minnesota has been hit by some of the largest fraud schemes involving state-run, federally funded programs in the country. Federal prosecutors estimate that as much as half of roughly $18 billion paid to 14 Minnesota programs since 2018 may be fraudulent, with providers accused of billing for services never delivered and diverting money for personal use.
The scale of the fraud has drawn national attention and fueled the Trump administration’s decision to freeze child-care funds while demanding additional safeguards before doling out money, moves that critics say risk harming families who rely on the programs. Gov. Tim Walz has ordered a third-party audit and appointed a director of program integrity. Amid the fallout, Walz announced he will not seek a third term.
Outrage over the fraud reached a fever pitch in the White House after a video posted online by an influencer purported to expose extensive fraud at Somali-run child-care centers in Minnesota. On Monday, that influencer, Nick Shirley, posted on the social media site X, “I ENDED TIM WALZ,” a claim that prompted calls from conservative activists to shift scrutiny to Newsom and California next.
Right-wing podcaster Benny Johnson posted on X that his team will be traveling to California next week to show “how criminal California fraud is robbing our nation blind.”
California officials have acknowledged fraud failures in the past, most notably at the Employment Development Department during the COVID-19 pandemic, when weakened safeguards led to billions of dollars in unemployment payments later deemed potentially fraudulent.
An independent state audit released last month found administrative vulnerabilities in some of California’s social services programs but stopped short of alleging widespread fraud or corruption. The California state auditor added the Department of Social Services to its high-risk list because of persistent errors in calculating CalFresh benefits, which provides food assistance to those in need — a measure of payment accuracy rather than criminal activity — warning that federal law changes could eventually force the state to absorb billions of dollars in additional costs if those errors are not reduced.
What’s at stake in California
The Trump administration’s plans to freeze federal child-care, welfare and social services funding would affect $7.3 billion in Temporary Assistance for Needy Families funding, $2.4 billion for child-care subsidies and more than $800 million for social services programs in the five states.
The move was quickly criticized as politically motivated because the targeted states were all Democrat-led.
“Trump is now illegally freezing childcare and other funding for working families, but only in blue states,” state Sen. Scott Wiener (D-San Francisco) said in a statement. “He says it’s because of ‘fraud,’ but it has nothing to do with fraud and everything to do with politics. Florida had the largest Medicaid fraud in U.S. history yet isn’t on this list.”
Added California Assembly Speaker Robert Rivas (D-Hollister): “It is unconscionable for Trump and Republicans to rip away billions of dollars that support child care and families in need, and this has nothing to do with fraud. California taxpayers pay for these programs — period — and Trump has no right to steal from our hard-working residents. We will continue to fight back.”
Times staff writer Daniel Miller contributed to this report.
Politics
Video: Walz Drops Re-Election Bid as Minnesota Fraud Scandal Grows
new video loaded: Walz Drops Re-Election Bid as Minnesota Fraud Scandal Grows
transcript
transcript
Walz Drops Re-Election Bid as Minnesota Fraud Scandal Grows
Governor Tim Walz of Minnesota abandoned his re-election bid to focus on handling a scandal over fraud in social service programs that grew under his administration.
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“I’ve decided to step out of this race, and I’ll let others worry about the election while I focus on the work that’s in front of me for the next year.” “All right, so this is Quality Learing Center — meant to say Quality ‘Learning’ Center.” “Right now we have around 56 kids enrolled. If the children are not here, we mark absence.”
By Shawn Paik
January 6, 2026
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