California’s water crisis could cost the state billions of dollars each year if not resolved

New economic data from California shows the state could face anywhere from $3-14 billion in water losses each year if no action is taken.
California has faced water supply challenges for years and is expected to shrink by 12-25% by 2050.

The data collected by researchers at UC Davis and UC Merced shows that without coordinated action, nearly three million acres of California farmland could be taken out of production.
That would mean a loss of 67,000 jobs, severely impacting rural communities.

The research supports the state’s Senate Bill 72, which proposes California’s first-ever water supply target to develop 9 million acre-feet of new water by 2040.

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The trustees’ 2025 annual report, released June 18, cited a law enacted this year as the primary reason why the funds are projected to run out a year earlier than previously projected.
“Sometimes populations correct on their own. That seems to be what is happening here.”