North Dakota Bill Swaps State Land Inside Reservations for Federal Land, Setting Up Tribal Trust

This legislation, the North Dakota Trust Lands Completion Act of 2025, sets up a formal, state-wide mechanism for North Dakota to trade state-owned trust lands located within Indian reservations for federal land outside those boundaries. The core idea is to clean up administrative boundaries: the State gives up its parcels inside a reservation, and in return, the federal government gives the State equivalent "unappropriated Federal land" elsewhere in North Dakota. This swap aims to consolidate land holdings for both the State and the Tribes.

The Land Swap: Trading Checkerboards for Consolidation

When North Dakota became a state, certain sections of land (like sections 16 and 36) were set aside to generate revenue for schools and universities—these are the State land grant parcels. Over time, these parcels ended up creating a "checkerboard" pattern inside reservations, complicating jurisdiction and management. This bill allows the State to relinquish its title to these parcels inside a reservation. In exchange, the Secretary of the Interior must let the State select federal land of "substantially equal" value. The State gets the new federal land, and here’s the key part: if the affected Indian Tribe requests it, the relinquished state land inside the reservation must be taken into trust by the Secretary for the Tribe, effectively making it part of the reservation (SEC. 3).

This is a big deal for tribal sovereignty and management. For example, a Tribe could gain control over a parcel of land that was previously state-owned and subject to state law, allowing for more unified management of resources and infrastructure within their boundaries. The State, meanwhile, gets to move its revenue-generating trust lands to areas that might be easier to manage or lease.

The Fine Print: Valuations and Loopholes

The most complex part of any land swap is making sure the values match up. The bill requires independent appraisers to determine the value of both the relinquished state land and the selected federal land, following strict federal standards (SEC. 4). However, there's a significant exception: if both the State and the Secretary agree, parcels valued under $500,000 or $500 per acre can skip the full, detailed appraisal and use simpler methods like a "summary appraisal." While this sounds efficient for small trades, it creates a potential loophole. If large parcels are carved up, or if the State and the Secretary aren't rigorous, this simplified process could result in unequal trades, potentially shortchanging taxpayers or environmental interests by avoiding a thorough valuation of the federal land.

If the values aren't exactly equal, the difference can be settled with cash or tracked in a special ledger account, but the cash difference cannot exceed 25% of the value of the federal land received by the State. This ledger account must be settled within three years (SEC. 4).

Real-World Impacts and Protections

For anyone currently using the land, the bill offers some security. If you are a rancher with an existing grazing lease on either the state land being given up or the federal land being received, that lease remains valid for its full term, including the original stocking rates and fees (SEC. 5). This prevents the transfer from immediately disrupting agricultural operations.

Another important protection is environmental. Before any federal land is transferred, the Secretary must inspect and certify whether hazardous materials are present. The State must do the same for the land it relinquishes (SEC. 5). This ensures that neither party is unknowingly inheriting a costly environmental cleanup liability. Furthermore, as soon as the State selects a piece of federal land, that land is immediately protected from any new mining claims or mineral leasing until the deal is finalized or rejected, which prevents last-minute complications (SEC. 3).

In essence, this Act is a detailed procedural roadmap for land consolidation. It provides a clear benefit to Tribes seeking to unify their reservations and the State looking to optimize its trust lands. The main challenge lies in the execution, specifically ensuring that the valuation process—especially for smaller parcels—is rigorous enough to guarantee a truly fair exchange for all parties involved.