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119-hr-1324119th CongressWALLET

Navajo Nation Rio San José Stream System Water Rights Settlement Act of 2025

Sponsored By: Representative Leger Fernandez, Teresa [D-NM-3]

Introduced

Summary

Ratifies a Navajo Nation Rio San Jose water-rights settlement and creates a federally managed trust fund to implement it. The law fixes how Navajo water rights are held, protected from forfeiture, and used for on- and off-reservation needs.

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 3 benefits, 0 costs, 3 mixed.

Funding and projects for Navajo water

If enacted, the government would deposit $200,271,000 and $23,000,000 into Navajo water trust accounts that stay available until spent. Amounts would be adjusted for construction cost changes starting from October 1, 2021. The Navajo Nation could expand the Navajo‑Gallup Project to serve communities in the Rio San José Basin, with federal design approval if using federal facilities. The Navajo Nation would prepare environmental reviews and pay most compliance costs from its funds, while the Secretary would handle and pay for federal approvals.

When the water settlement starts

If enacted, the settlement would start on an Enforceability Date the Secretary would publish after key steps. Steps include depositing the $200,271,000 and $23,000,000, a State $3 million contribution (inflation‑adjusted) and a 99‑year leasing law, court approval, and signed waivers. From enactment to that date, time limits on covered claims would pause, but expired claims would not restart. The Secretary would sign the Agreement and could approve consistent changes; the U.S. would not be liable to perform unless Congress funds it. If findings are not published by July 1, 2030 (or a later agreed date), the Act would expire, waivers and authorizations would be void, and unspent federal funds would be returned.

Waivers, kept rights, and federal offsets

If enacted, the Navajo Nation would waive many claims that started before the Enforceability Date in exchange for the settlement’s benefits. Some claims would be kept, like future‑accruing rights and environmental law claims. The United States would keep sovereign immunity under this bill. The U.S. could offset up to $20 million against Rio Puerco judgments or future federal settlement contributions. The Act says the benefits would replace the waived claims.

Allottee water rights stay separate

If enacted, individual Allottee water rights would stay separate from the Navajo Nation’s rights when a court decides them. Allottees or the United States as trustee could file claims in the Rio San José or Rio Puerco basins. If an Allotment later becomes Navajo Nation land, those water rights would then follow Navajo rules.

Local acequias named in settlement

If enacted, the bill would list specific irrigation and community ditch groups as the acequias covered by the settlement. If your group is named, it would be treated as an Acequia under the Act.

State court review of water permits

On the Enforceability Date, New Mexico courts would be able to review Navajo Nation water‑permit decisions. Review would be limited to the administrative record and checks like substantial evidence, not arbitrary or unlawful, fraud, or acting beyond authority. State courts would give full faith and credit to certain Navajo code provisions and send questions on non‑code Navajo law to the Navajo Nation court, with one narrow exception.

Sponsors & CoSponsors

Sponsor

Leger Fernandez, Teresa [D-NM-3]

NM • D

Cosponsors

  • Rep. Stansbury, Melanie A. [D-NM-1]

    NM • D

    Sponsored 2/13/2025

  • Rep. Vasquez, Gabe [D-NM-2]

    NM • D

    Sponsored 2/14/2025

Roll Call Votes

No roll call votes available for this bill.

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