This bill approves and funds a settlement resolving decades-old water rights claims by the Navajo Nation in New Mexico's Rio San José Stream System and Rio Puerco Basin, ending long-running litigation with the state, nearby Pueblos, local communities, and acequia associations. It formally recognizes and quantifies the Nation's water rights in these areas, protects those rights from being lost through non-use, and gives the Navajo Nation authority to manage and lease this water for tribal and, with federal approval, off-reservation use. The legislation creates a trust fund for the Navajo Nation, with the federal government providing about $223 million for water rights settlement and water infrastructure operations and maintenance, while New Mexico contributes $3 million to local irrigation districts; some funds become available immediately for wells and infrastructure planning, with the rest released once the settlement takes legal effect. That effective date requires several conditions to be met, including court approval, full funding, and required actions by the state, and the entire law expires if these steps aren't completed by July 1, 2030. The bill also protects the separate water rights of individual Navajo allottees, clarifies court jurisdiction for reviewing tribal water permit decisions, and allows expansion of the Navajo-Gallup Water Supply Project to reach more Navajo communities in the region.
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