Gov. Gavin Newsom vetoed a unanimously passed bill that would have directed $300 million a year toward Sacramento-San Joaquin Delta levee repairs and canal subsidence fixes.

Senate Bill 872, vetoed Sept. 27, would have split the money two ways: $150 million annually for 20 years to the Department of Water Resources for State Water Project canal repairs, and $150 million annually for 20 years to the Delta Conservancy for levee improvements. The bill drew zero "no" votes in either chamber.

More than 60 organizations backed the measure, according to a State Water Contractors statement. State Sen. Jerry McNerney authored the bill. Assemblymember Rhodesia Ransom co-authored it.

The Delta levee system helps supply water to roughly 27 million Californians, according to the State Water Contractors. While Folsom Lake sits on the American River rather than the State Water Project's Delta pumping system, regional water reliability depends on the broader Sacramento River watershed. The El Dorado Irrigation District draws about one-third of its water supply from Folsom Lake through its Folsom Lake Intake, which feeds the El Dorado Hills Water Treatment Plant.

In his veto message, Newsom called the bill "well-intentioned" but "unnecessary." He pointed to more than $171 million already in this year's budget: $68 million for aqueduct and canal subsidence work, $75 million for Delta levee repairs and flood protection, $20.2 million for the Delta Conservancy, and $7.9 million for levee-project mitigation costs.

Ransom told ABC10 those budget dollars are one-time investments, not the sustained funding SB 872 would have locked in.

"We could be one levee incident away from flooding entire communities, and so, that's why this bill was so important to us here in this region," Ransom said.

San Joaquin County Supervisor Steve Ding, a Republican who led his board's vote to support SB 872, called the veto "unconscionable" and questioned where existing budget money would go.

The State Water Contractors said the full cost to repair the State Water Project's infrastructure runs "in the billions of dollars." The bill explicitly barred its funds from being used on any new Delta conveyance facilities, including the proposed Delta tunnel, according to the California Globe.

McNerney called 2026's legislative push on water infrastructure "a major step forward" but said the work is not finished, describing the current investment as "just a down payment."

The California Globe reported that a Senate override vote is under possible consideration. No date has been set.