New Bill Creates Interest-Bearing Account for Colorado River Conservation: Non-Federal Funds Get a Boost

The Lower Colorado River Multi-Species Conservation Program Amendment Act of 2025 does one main thing: it sets up a special, interest-earning bank account for non-federal money contributed to the Lower Colorado River Multi-Species Conservation Program (LCR MSCP). Think of it like this, Arizona, California, Nevada, or even a private company donates to the LCR MSCP. Before this bill, that money didn't earn interest. Now, it will, and all of that goes straight back into conservation efforts.

Banking on Conservation

The bill amends Section 9402 of the Omnibus Public Land Management Act of 2009. The core change? Any non-federal contributions to the LCR MSCP now go into a dedicated U.S. Treasury account called the "Non-Federal Funding Account for the Lower Colorado River Multi-Species Conservation Program" (SEC. 2). This account earns interest, and all of it is available to the Secretary (likely the Secretary of the Interior, though the bill doesn't specify) to spend on program activities, as defined in the existing "Program Documents." No further Congressional approval is needed for these expenditures.

Show Me the Money

So, how does this play out? Imagine a local water district in Nevada wants to contribute $1 million to help restore riparian habitat along the river. Under this new law, that $1 million gets deposited into the Fund (SEC. 2). The Secretary of the Treasury can invest that money in things like U.S. Treasury bonds (SEC. 2). Any interest earned gets added to the Fund and is available for the program. The bill requires that any non-federal contributions made before this law passed, but not yet spent, also get transferred into this new account within 90 days of the law's enactment (SEC. 2). Future contributions go in "as soon as practicable" (SEC. 2).

Risk and Reward

One key detail: once a state party (like Arizona, California, or Nevada) deposits its contribution, they're off the hook for any investment losses (SEC. 2). This might encourage more contributions, as states won't have to worry about managing the funds or potential losses. However, while the bill grants the Secretary of the Treasury broad power to invest and spend these funds, the level of oversight depends heavily on the details within the existing "Program Documents." This is a point to watch to ensure the money is being used effectively and as intended.

###The Bigger Picture

By creating an interest-bearing account, the bill provides a potential financial boost to the LCR MSCP. It streamlines the funding process and could lead to more money available for conservation efforts. The program aims to protect endangered species and their habitats along the Lower Colorado River. Whether you're a farmer relying on Colorado River water, a resident of a city that depends on it, or just someone who cares about the environment, this change could indirectly benefit you by strengthening the program's financial footing. While the bill is a relatively simple financial fix, its long-term success hinges on responsible investment by the Treasury and effective use of the funds by those managing the conservation program.