How Trump tariffs could make Nevada water projects more expensive

The Southern Nevada Water Authority’s head official is closely tracking how construction costs may snowball under the federal government’s tariff structure.

John Entsminger, the water authority’s general manager, presented the agency’s proposed budget at a public meeting on Thursday, with that caveat about construction costs.

Since initially touting tariffs on the campaign trail and in his first months in office, President Donald Trump has put a temporary pause on them, with the exception of those aimed at China. In Las Vegas, consumer costs are anticipated to rise in the largely tourism-based economy, from the restaurant industry to real estate.

Multimillion-dollar water infrastructure projects are not immune to shifts in the economy, Entsminger said.

“Our crystal ball is no better than anyone else’s,” Entsminger said. “I wanted to put that out at the front end, just so the board is aware of that if we need to come back for a budget adjustment mid-year or something. We’re aware of these exigencies, but we’re going to proceed with the data we have.”

Part of the budget presented on Thursday was the $729.7 million operating budget, or the day-to-day costs of keeping water service going in the Las Vegas Valley. The agency’s capital budget, including the money needed for long-term infrastructure projects, was presented as a total of $428.7 million.

Together, the two budgets total $1.15 billion, and are subject to change before the water authority board approves them next month.

Tariffs on China already raising costs

Uncertainty abounds, but the water authority staff has some idea of which projects could prove to be challenging financially.

The project meant to replace more-than-20-year-old ozone generators that disinfect water is one of them, Enstminger said. They’re so old that a staff member told the board that the agency had to go on eBay to find spare parts to fix them.

Replacing the five of them is projected to cost $6 million normally, he said, but that cost could realistically rise to between $10 million and $13 million based on market research and current contracts.

Auto samplers, or the devices put on the bottom of manholes to measure chemicals in sewage, usually cost $2,970. An added $1,839 cost per device now exists because of tariffs on China, Entsminger said.

“We’re watching those costs carefully,” said David Johnson, the water authority’s deputy general manager of operations. “Even though we have contracts in place, we’re just making sure that cost doesn’t continue to creep up with any escalations in tariffs that may happen.”

Breaking down major projects

Of the water authority’s pending infrastructure investments, these are the three projected to cost the most this year:

1. Garnet Valley water transmission system and wastewater system: $194 million in fiscal 2025-26, $851 million in total.

The agency is building a water system to serve North Las Vegas’ Apex Industrial Complex, an area with buy-in from big companies such as Crocs. Part of the plan is to build a line to reuse wastewater, as other parts of the valley do, so that it can be treated and sent back to Lake Mead. Construction on the water system will begin in July, as will the next phase of construction on the wastewater system. Both are expected to be completed in 2028.

2. Horizon lateral: $19.4 million in fiscal 2025-26, $2 billion for all of phase one.

Aimed at preventing disruptions in service to water users in growing parts of Henderson and western Las Vegas, the massive pipeline will be a backup to the existing one from Lake Mead. Congress is now considering whether to allow it to be built under Sloan Canyon National Conservation Area — the water authority’s preferred route that will minimize disruptions to urban parts of Henderson. Phase one is on track to be completed in 2030.

3. Sloan/Lamb Pumping Station expansion: $11.1 million in fiscal 2025-26, $85 million in total.

To take demand off of what’s known as the Hacienda Pumping Station to serve East Las Vegas and parts of the Strip, the agency will add four new pumps to the Sloan/Lamb pumping station. The project will increase redundancy in the system, meaning that it will add more avenues to continue water service should the Hacienda station need to be taken down and repaired. Construction will begin in February and be completed by February 2028.

Contact Alan Halaly at ahalaly@reviewjournal.com. Follow @AlanHalaly on X.