CaliforniaThe most ambitious water infrastructure project in almost fifty years has just become significantly more costly - and PresidentDonald Trumpis being held responsible for a portion of the sharp increase in prices.
The architects of the massive Sites Reservoir, a vast basin that may one daysupply potable water to over 24 million residents of Californiahave verified that the construction cost has increased from $4.5 billion to as high as $6.8 billion.
And among the factors mentioned for the $2 billion increase are the Trumptariffsimplemented at the beginning of this year, which project managers claim are still causing significant impact throughout thesupply chain.
The main factors contributing to the rise included factory closures during theCovid-19"pandemic and recent tariffs imposed by President Donald Trump," Jerry Brown, executive director of the Sites Project Authority (unrelated to the former governor), stated to thePress Democrat.
Rising expenses are never anticipated with enthusiasm, but they are a reality of everyday living.
He credited the increase toinflationsince 2021, for steel, concrete, and other construction materials
The disclosure has sparked new political conflicts in the Golden State, where the governorGavin NewsomThe administration has been making significant efforts to strengthen water infrastructure due to increasing climate-related challenges.
The Sites project – a reservoir so vast it would span 13 miles in length and four miles in width within Colusa County – is rapidly turning into a focal point in the ongoing conflict regarding water, financial resources, and environmental concerns.
Close to 70 residents in Antelope Valley are anticipated to lose their homes as the basin encroaches on large areas of Colusa County. For them, the cost is not measured in billions of dollars, but in shattered lives and displaced communities.
"Many people are expected to witness their homes being submerged," stated an earlier report regarding the project's local effects, which has taken over 45 years to develop.
If finished, the Sites Reservoir would be California's eighth-largest, capable of storing 1.5 million acre-feet of water, which is approximately 490 billion gallons - mainly meant for use in Southern and Central California, along with the Bay Area.
Construction is still planned to start next year, with completion expected by 2033, Brown stated.
However, increasing expenses could lead to difficult choices regarding financial support and focus.
Despite the Sites project receiving support from both Congress and the Biden administration, with almost $365 million in federal grants over the last three years, the sudden increase in projected costs has turned into a political issue, especially as tariffs from the Trump era are now seen as a possible cause.
On Wednesday, Brown shared the revised expenses with the nine-person State Water Commission, which has already allocated $875 million from Proposition 1 bond funds for the initiative.
Commissioner Daniel Curtin mentioned that 22 water agencies have pledged funds for planning, with 16 others awaiting their turn to request additional water capacity.
The rubber meets the road when the money arrives," Curtin said. "But it seems the commitments are quite solid.
Commissioner Jose Solorio stated: 'The entire state would gain from the development of this project.'
California Republicans have mostly remained silent regarding the link to tariffs, while environmental organizations are seizing the opportunity to rekindle their ongoing resistance to the proposal.
"A lawsuit brought by conservationists claimed that the Sites Reservoir would damage the Sacramento River ecosystem, endanger vulnerable fish species, and emit greenhouse gas pollution," which was eventually rejected by Yolo County Superior Court.
"The project will result in significant environmental damage, borne by the public, and only a minor benefit, which mainly advantages the project's investors," said Stork, a senior policy advocate with Friends of the River.
Among other negative impacts, the reservoir will significantly contribute to greenhouse gas emissions. A recent study projected that the site would release emissions comparable to those from 80,000 gasoline vehicles annually.
Last year, opponents had their appeal rejected, yet they are not giving up. "It's not unexpected," remarked Ron Stork, policy director at Friends of the River.
Big large-scale projects often see their expenses rise significantly beyond the original projections. That's why these dams remain unbuilt.
Stork stated, "We need to check if the affluent urban water districts in Southern California and the Bay Area are willing to keep funding this project." He predicted that the chances of the Sites Reservoir being constructed at this time are "roughly 50-50."
The opposition has not discouraged Governor Newsom, who has fully backed the project as part of his overall plan for water sustainability.
Climate change means we'll require additional storage initiatives," stated Matt Keller, a representative from the Santa Clara Valley Water District, one of the project's supporters. "Our board is examining various water supply projects across Northern California and locally, and has been monitoring this one for some time.
The more time we delay and the longer it takes to complete this, the higher the cost becomes," Brown said to reporters. "Even though it is becoming more expensive, it is still something we urgently need to accomplish.
He likened Sites to a financial reserve for upcoming dry periods: "Individuals see all the water flowing through rivers during wet winters and ask why we can't store more of it?"
Supporters claim that Sites is ideally placed to collect 'extra water from large storms' and keep it for use during drier years, a situation that is becoming more frequent with rising global temperatures.
However, for critics, the project represents the significant environmental and social expenses of large-scale infrastructure during a time of climate unpredictability.
It's extremely challenging to defend the cost and environmental impact of large-scale surface storage infrastructure projects," stated John Buse, a lawyer with the Center for Biological Diversity. "The Sites Reservoir will result in significantly more damage than benefit.
Slightly humorously, the project's cost increase occurs following an unusual series of rainy winters that have saturated current reservoirs.
Both Shasta Lake and Lake Oroville experienced overflow for the third straight year in 2025.
If the reservoir had already been in place, Brown pointed out, Sites could have collected runoff from the last two wet winters. "It would have been completely full," he said, noting that it would have diverted just approximately 3% of Delta flows during the wettest months.
However, specialists caution that overconfidence poses risks. As California's rainfall becomes more focused in brief, heavy downpours followed by extended periods of drought, the requirement for water storage is still critical.
The project's website cautions, 'Water shortage is always just a step away.'
Brown admitted that the project has attracted intense attention - but stated that history supports its position.
Rarely, when reviewed after 20, 40, or 60 years, do these projects lead to regret regarding their societal benefits," he stated. "These are challenging decisions for a society to make, but we are constructing this for ourselves and future generations.
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