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Manager of the Orchard Mesa Irrigation District Jackie Fisher points out the crumbling concrete in the lining of the district’s canal No. 1. Orchard Mesa Irrigation District was awarded a $10.5 million federal grant for infrastructure upgrades, but that funding has been paused by the Trump administration.
In the Grand Valley south of U.S. Highway 50, Orchard Mesa Canal No. 1 winds through 18 miles of rural agricultural farmland and residential backyards.
In January, the Orchard Mesa Irrigation District was promised $10.5 million from the U.S. Bureau of Reclamation to pipe the open canal — which has crumbling chunks of concrete and rebar poking out along its sides — and install more-efficient valves instead of headgates. In addition to delivering water more easily to the 6,700 users in the district, a goal of the project is to improve the irrigation system’s efficiency so more water could be left for endangered fish in a critical 15-mile stretch of the Colorado River.
But the future of the project is uncertain because about $151 million in funding for projects aimed at conservation and drought resilience on the Western Slope has been frozen by the Trump administration.
“We are on hold ourselves because we don’t have the revenue to move forward,” said Jackie Fisher, manager of the Orchard Mesa Irrigation District.
On Jan. 17, during the final days of the Biden administration, the U.S. Bureau of Reclamation announced it had awarded $388 million in funding through the Inflation Reduction Act for projects throughout the Colorado River’s Upper Basin (Colorado, New Mexico, Utah and Wyoming). The money was allocated through what the bureau called “Bucket 2, Environmental Drought Mitigation,” or B2E, which is earmarked for projects that provide environmental benefits and address issues caused by drought.
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Palisade Town Manager Janet Hawkinson points out the aerators in the town’s wastewater lagoons. The Town plans to pipe its wastewater to Clifton’s treatment plant and reclaim the nine-acre area as wetlands using a $3 million federal grant — funding that has now been paused by the Trump administration.
But only three days later, the Trump administration issued an executive order, “Unleashing American Energy,” which said “all agencies shall immediately pause the disbursement of funds appropriated through the Inflation Reduction Act of 2022.”
Water managers say they are waiting on information from the bureau and have not heard anything about the status of funding since the Jan. 17 announcement. Most are operating under the assumption funding is still paused and, with it, their projects. The Trump administration has yet to appoint a new Bureau of Reclamation commissioner.
“Officially, from Reclamation we have not heard a thing,” said Steve Wolff, general manager of the Durango-based Southwestern Water Conservation District, which was awarded $26 million for drought mitigation. “We’re very happy we were successful, but now we are in a no-man’s land.”
Officials from the bureau did not respond to questions from Aspen Journalism about the status of the funding.
Seventeen of the 42 Upper Basin projects are in western Colorado and include things such as almost $3 million for dam removal and wetlands restoration at Fruita Reservoir; $1.9 million for studying the effectiveness of beaver dam analogs in the headwaters of the Roaring Fork River; and $4.6 million for drought resiliency on conserved lands. The funding pause also affects six tribal water projects in the Upper Basin, including $16 million for the Southern Ute Indian Tribe for drought mitigation on the Pine River.
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The Town of Palisade was awarded a $3 million grant from the U.S. Bureau of Reclamation to convert these wastewater lagoons into a wetlands habitat with public access to the Colorado River. It’s one of 17 projects in Western Colorado aimed at addressing drought that have had their federal funding frozen by the Trump administration.
Abby Burk, a senior manager with Audubon Rockies’ Western Rivers Program, said everyone awarded the funding is in limbo now. Burk is involved with two of the projects awarded B2E money in the Grand Valley: the Fruita Reservoir dam removal and restoration, and a project in Palisade that would convert wastewater lagoons into wetlands.
“We’ve got some great projects that are just hanging in the air waiting for a decision,” Burk said. “We in the environmental community are trying to support our project partners; we are just at a momentary loss. There’s just quite a bit of uncertainty.”
The uncertainty surrounding B2E funding comes at a crucial time for the Colorado River basin, which has been plagued by drought and dwindling streamflows because of climate change for more than two decades. Representatives from the seven Colorado River basin states (California, Arizona and Nevada, which comprise the Lower Basin) are in the midst of tense negotiations about how the nation’s two largest reservoirs — Lake Powell and Lake Mead — will be operated and how water-supply shortages will be shared in the future.
Some water managers said that without this once-in-a-lifetime federal funding they were promised, many of these projects probably won’t happen. Southwestern Water Conservation District was awarded the grant, but the district plans to distribute the money to smaller local entities for a variety of projects, including invasive plant control through the Mancos Conservation District; to the Ute Mountain Ute Tribe for erosion control and restoration; and to Mountain Studies Institute for restoration of fens.
“For these projects to happen, we absolutely need this funding,” Wolff said. “I certainly hope it does shake loose.”
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These lagoons are part of the Town of Palisade’s wastewater treatment plant. The town was awarded $3 million from the U.S. Bureau of Reclamation’s B2E grant program to transform the lagoons into wetlands, providing habitat for birds and fish.
The $10.5 million awarded to the Orchard Mesa Irrigation District would cover the entire cost of the canal piping project, and without federal money, the district would struggle to pay for it, Fisher said.
“We already run on a shoestring budget, so a $10.5 million project is nearly impossible,” Fisher said. “We’re pinching pennies all the way around.”
The Glenwood Springs-based Colorado River Water Conservation District is the recipient of the biggest B2E award in Colorado: $40 million toward the purchase of the Shoshone water rights. The River District is in the midst of a campaign to buy the water rights associated with Xcel Energy’s hydropower plant in Glenwood Canyon for $99 million. These water rights are some of the oldest nonconsumptive rights on the Western Slope and help keep water flowing to downstream ecosystems, cities, agricultural and recreational water users.
In a prepared statement, the River District’s general manager, Andy Mueller, struck a slightly more optimistic tone.
“While the timing of federal funding to secure the Shoshone water rights remains uncertain, the River District is encouraged by key appointments within the Department of the Interior,” Mueller said. “We are prepared to work closely with the next Bureau of Reclamation commissioner to advance this critical effort and other essential water projects that protect agriculture and the communities that rely on it — both in Colorado and across the basin.”
This story is provided by Aspen Journalism, a nonprofit, investigative news organization covering water, environment, social justice and more. Visit aspenjournalism.org.
