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S565119th CongressWALLET

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

Sponsored By: Senator Heinrich, Martin [D-NM]

In Committee

Summary

Settles the Navajo Nation’s water rights in the Rio San José Stream System and creates a federally managed trust to fund water infrastructure, operations, and water-rights administration. The bill ratifies a detailed settlement agreement and sets rules for how those rights are held and used.

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  • Navajo Nation: Recognized settlement rights will be held in trust by the United States, protected from forfeiture, and the Nation gains authority to allocate, distribute, and lease water rights off Navajo lands for up to 99 years with Interior approval.
  • Allottees and individual landholders: Allotment water rights are preserved and adjudicated separately, and the Navajo Nation generally will not oppose quantifying reasonable domestic, stock, or irrigation uses on Allotments.
  • Local communities and infrastructure: The bill establishes a Navajo Nation Rio San José Water Rights Settlement Trust Fund with two accounts and authorizes expansion of the Navajo-Gallup Water Supply Project to serve Rio San José Basin communities with Reclamation coordination.

*The bill requires federal appropriations of about $200.3 million to the Navajo Nation Water Rights Settlement Account and $23 million to the Navajo Nation Operations and Maintenance Account.*

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 3 benefits, 0 costs, 4 mixed.

Large settlement fund and immediate water money

If enacted, the bill would create a Navajo Nation water settlement trust fund. The Treasury would transfer $200,271,000 to a Settlement Account and $23,000,000 to an Operations and Maintenance Account (total $223,271,000). Up to $15,000,000 of the Settlement Account, including earnings, would be available immediately for planning and groundwater wells. The State of New Mexico would also need to provide $3,000,000 as a cost share under the Agreement.

When the settlement becomes final

If enacted, the bill would make the settlement enforceable only when the Secretary publishes six required findings in the Federal Register. Those findings include payment of the federal funds, a state funding step, and a court decree. Limitation periods for some claims would stop running from enactment until the Enforceability Date. If the Secretary does not publish findings by July 1, 2030, the Act would expire and federal funds and waivers could be voided or returned.

Expand Navajo-Gallup water project service

If enacted, the bill would authorize expanding the Navajo‑Gallup Water Supply Project to serve Rio San Jose Basin communities on Navajo lands. If Reclamation still owns Project facilities, the Nation must get written approval from the Commissioner for final designs. Construction of connections must be coordinated with the Commissioner of Reclamation.

Water rights held in trust and leasing

If enacted, the bill would place the Navajo Nation's settlement water rights in Federal trust. The rights could not be permanently sold and would not be lost for non-use. The Navajo Nation could allocate and lease water off Navajo Lands for up to 99 years, but leases off Navajo Lands would need Secretary approval. Allottee water rights would remain separate and be adjudicated separately.

Who signs, who pays, and federal liability

If enacted, the bill would let the Secretary execute and implement the Agreement so long as it does not conflict with the Act. The Navajo Nation would prepare required environmental documents and pay most compliance costs from the Navajo Trust Fund, while the Secretary would handle Federal approval and inherently Federal costs. The bill would also say the United States is not liable for failing to carry out obligations if Congress does not appropriate sufficient funds.

Limited state-court review of permits

If enacted, the bill would allow limited judicial review in New Mexico courts of Navajo Nation Water Use Permit decisions, but only with Navajo consent. Review would be on the administrative record and under strict standards. State courts must respect the Navajo Water Code and can ask the Navajo Nation court to interpret Navajo law when needed.

Waivers and reserved claims in settlement

If enacted, the bill would require broad waivers by the Navajo Nation and the United States of past Rio San Jose water claims in exchange for the settlement benefits. The bill would also preserve important rights and claims, like environmental claims under CERCLA, Safe Drinking Water Act, and Clean Water Act, and post‑Enforceability Date water rights. The United States would be able to offset up to $20,000,000 against certain Rio Puerco judgments or future federal contributions.

Sponsors & CoSponsors

Sponsor

Heinrich, Martin [D-NM]

NM • D

Cosponsors

  • Sen. Luján, Ben Ray [D-NM]

    NM • D

    Sponsored 2/13/2025

Roll Call Votes

No roll call votes available for this bill.

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