Taos Pueblo Indian Water Rights Settlement Amendments Act of 2025
Sponsored By: Representative Rep. Leger Fernandez, Teresa [D-NM-3]
Introduced
Summary
Creates and funds new Taos Pueblo water trust funds and a $161.0 million mutual-benefit projects pot to support groundwater, surface-water sharing, and mitigation infrastructure. The bill would reorganize trust governance, require indexed mandatory appropriations, and set deadlines and enforcement rules for project funding.
Show full summary
- Taos Pueblo: Establishes the Taos Pueblo Water Development Fund plus a Groundwater Development Supplemental Trust Fund and a Surface Water Sharing Supplemental Trust Fund. Those supplemental funds receive mandatory appropriations of $190.0 million and $16.0 million, respectively, indexed for cost changes.
- Eligible non-Pueblo entities: Authorizes the Secretary of the Interior, through the Commissioner of Reclamation, to award grants or nonreimbursable agreements from a $161.0 million Taos Settlement Mutual-Benefit Projects Supplemental Fund for planning, design, and construction. Applicants must meet application windows tied to enactment timing.
- Project delivery and enforcement: Imposes spending and completion milestones (for example, at least 10% spent in 3 years and full completion in 8 years for most projects, and faster deadlines and 15% initial spend for projects tied to the Mitigation Well System). The Commissioner may extend deadlines for good cause, terminate awards for missed milestones, reallocate returned funds, or fund alternative offset infrastructure.
- Authority and property: Clarifies investment and management rules under trust fund law and specifies the Commissioner will not hold title to property built or acquired with the specified federal funds.
*This bill would increase mandatory federal spending by at least $367.0 million (the sum of $161.0 million, $190.0 million, and $16.0 million), indexed for cost changes, thereby increasing federal outlays and adding to the deficit.*
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 0 costs, 1 mixed.
New Taos water trust funds
If enacted, this bill would create three Taos Pueblo trust funds in the Treasury: a Mutual-Benefit Projects fund, a Groundwater Development Supplemental Trust, and a Surface Water Sharing Supplemental Trust. It would require mandatory transfers of $161 million, $190 million, and $16 million respectively, with each amount indexed for construction-cost changes since July 2025 using the Bureau of Reclamation index and adjustments for market volatility. The mutual-benefit transfer would be deposited into a noninterest-bearing Treasury account for section 507(c) work until awarded; the groundwater and surface funds would earn interest and be invested under the Trust Fund Reform Act standard. Indexing repeats until the adjusted amounts are fully appropriated, with timing limits set in the bill (for the mutual-benefit fund no later than 10 years after enactment and for the other funds when deposited).
Rules, deadlines, and project help
If enacted, the bill would let the Commissioner of Reclamation give grants, nonreimbursable assistance, or contracts for Mutual-Benefit Projects and approved offset infrastructure. Eligible Non-Pueblo Entities must have applied under existing rules within 90 days of enactment and must apply for the supplemental money within 180 days to be eligible. Awards would carry milestone rules: non-Mitigation projects must spend at least 10% within 3 years, reach substantial completion in 6 years, and finish in 8 years; projects with Mitigation Well System components must spend 15% in 3 years, be substantially complete in 4 years, and finish in 5 years. The Commissioner may terminate awards, reallocate returned or undisbursed funds to other eligible entities, or (with Pueblo and State consent) hire third parties to finish works. The bill would allow funding of alternative or interim offset infrastructure, waive non‑Federal cost share for projects built on Pueblo lands, prohibit the Commissioner from taking title to certain funded property, and preserve prior settlement findings without requiring amendment of the Settlement Agreement.
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Sponsors & CoSponsors
Sponsor
Rep. Leger Fernandez, Teresa [D-NM-3]
NM • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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