Navajo-Gallup Water Supply Project Amendments Act of 2025
Sponsored By: Senator Sen. Luján, Ben Ray [D-NM]
In Committee
Summary
Expands and extends the Navajo-Gallup Water Supply Project to reach more Navajo, Jicarilla Apache, and nearby communities while changing who pays, how projects are financed, and how some lands and revenues are managed.
Show full summary
- Tribal families and communities: Would let the Navajo Nation add service areas including Lupton, Arizona, expand delivery to more New Mexico and Arizona communities, and direct the Department of the Interior to take certain lands into trust for the Nation.
- Project participants and cities: Would revise cost-sharing rules, cap a city repayment obligation at $76 million and limit repayment percentages, and create three named settlement trust funds plus a Deferred Construction Fund for operations, maintenance, replacement, and deferred work.
- Utah communities and water managers: Would create a framework to convey non-project water to Utah, cap that conveyance at 2,000 acre-feet per year, and limit use of Project funds for new non-project infrastructure beyond necessary connections.
*Would authorize up to $2.2 billion in project appropriations through 2029 and establish trust accounts to fund construction, operations, and deferred activities.*
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Bill Overview
Analyzed Economic Effects
8 provisions identified: 6 benefits, 0 costs, 2 mixed.
Tribal water trust funds created
This bill would create three Navajo and Jicarilla settlement trust funds in the Treasury. One fund would be authorized up to $250 million for Navajo operations, maintenance, and replacement. It would keep earlier yearly authorizations for a Navajo development fund and bar per‑capita payments to tribal members. A Jicarilla fund could be created after an Ability to Pay study and be limited to $10 million.
Who taxes Project construction work
This bill would say that construction, operation, and maintenance on land held in trust for the Navajo Nation would be taxable only by the Nation and exempt from State or local taxes. Work on non‑trust land would be taxable by the State and exempt from Nation taxes. If enacted, this would change which government collects taxes and could change costs for contractors.
More communities eligible for Project water
This bill would define and expand the Project Service Area to include 43 Navajo Nation chapters and parts of the Jicarilla Reservation. It would allow delivery to Rio San Jose Basin communities and possibly Lupton, AZ (subject to a statutory test). It would also make it explicit that treatment plants can store water.
More time for waivers and releases
This bill would move certain statutory waiver and release deadlines from 2025 to 2030. That would give parties five more years to obtain required waivers or releases tied to the Project.
Certain lands put into Navajo trust
This bill would require the Secretary to take specified fee and public domain parcels into trust for the Navajo Nation after conditions are met. Trust lands would become part of the Navajo Reservation and stay subject to existing rights. The San Juan Generating Station land would carry a U.S. easement for Project use.
Fund for deferred Project work
This bill would create a Deferred Construction Fund in the Treasury for mutually deferred NGWSP facilities. Amounts for agreed deferred work must be deposited by Dec. 31, 2029. Depositing the money would let the Secretary be treated as having met certain project timing deadlines even if construction is delayed.
Renewable power funding for Project
This bill would let the Secretary use up to $6.25 million from Project funds to add renewable power where Project sites lack Colorado River power. Up to $1.25 million of that could be used for hydroelectric development at suitable Project facilities.
Limited water sharing to Utah
This bill would allow limited non‑Project water to be provided to Navajo communities in Utah, capped at 2,000 acre‑feet per year. Such deliveries must follow the Navajo‑Utah Settlement and a Utah decreed water right. Project funds generally could not pay to build new non‑Project infrastructure, and the United States would have no broader funding obligation.
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Sponsors & CoSponsors
Sponsor
Sen. Luján, Ben Ray [D-NM]
NM • D
Cosponsors
Sen. Curtis, John R. [R-UT]
UT • R
Sponsored 2/19/2025
Sen. Heinrich, Martin [D-NM]
NM • D
Sponsored 2/19/2025
Roll Call Votes
No roll call votes available for this bill.
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