Wednesday January 7, 2026
Sacramento News & Review —
Seven California counties – in coalition with environmental groups, fishing associations and the Winnemem Wintu Tribe – won their second big victory against the Newsom Administration and California Department of Water Resources when it comes to financing the proposed $20 billion Delta Conveyance Project, also known as “the Delta Tunnel.”
The Court of Appeal for the Third Appellate District just upheld a Sacramento County judge’s decision in 2024 that state authorities have an invalid bond plan to fund the highly embattled project. Specifically, the appellate court agreed with the original judge that the state Department of Water Resources, or DWR, lacks the authority to issue revenue bonds to pay for the massive tunnel that would benefit central and southern California Ag interests and a handful of Newsom mega-donors.