The Voluntary Groundwater Conservation Act of 2023 creates a new federal program that pays landowners and organizations to voluntarily place easements on groundwater rights, restricting how much water can be pumped from aquifers while still allowing continued farming and other compatible uses. The program is open to state and local government agencies, Indian tribes, and eligible conservation organizations that purchase these easements from private landowners, farmers, and others who hold groundwater rights in areas experiencing significant depletion. The federal government will cover up to 65 percent of the fair market value of the easement, with eligible entities providing the remaining funding through cash, donations, or appraisal costs, though entities can opt for a lower 25 percent federal share. The bill modifies existing conservation funding programs under the Food Security Act to target groundwater conservation specifically and adjusts income limits so that payments received for these easements do not count against a landowner's adjusted gross income limits for other farm program benefits. The program will operate in regions with documented groundwater depletion where states or local groundwater management districts already have monitoring and permitting systems in place.
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