Navajo Nation Water Rights Settlement Bill Clears: $223 Million Trust Fund Established, Rio San Jose Claims Resolved

The Navajo Nation Rio San Jose Stream System Water Rights Settlement Act of 2025 settles a long-standing water dispute in New Mexico. The bill ratifies a complex agreement between the Navajo Nation, the State of New Mexico, and other local water users, primarily concerning water rights in the Rio San Jose Stream System. It establishes a substantial trust fund to manage and develop water resources for the Navajo Nation and sets terms for water use and claims waivers.

Making the Desert Bloom: The Trust Fund

The core of the bill is the creation of the Navajo Nation Rio San Jose Settlement Trust Fund, totaling $223,271,000. This fund is split into two accounts: $200,271,000 for the Navajo Nation Water Rights Settlement Account and $23,000,000 for the Navajo Nation Operations and Maintenance Account. Think of it as a savings account for water infrastructure and a checking account for ongoing maintenance. The larger account can be used for things like acquiring new water sources, building pipelines, and even watershed protection projects. The smaller account is strictly for keeping the water flowing – covering the costs of operating, maintaining, and replacing existing infrastructure. The bill specifically states that the money cannot be distributed as direct payments to individuals (SEC. 6(i)).

For example, if the Navajo Nation wants to build a new water treatment plant to serve a growing community, they could tap the larger fund. If an existing pipeline springs a leak, the smaller fund would cover the repairs. Up to $15,000,000 is available right away for feasibility studies, planning, and design of water infrastructure, and for getting groundwater wells and infrastructure up and running on Navajo Lands (SEC. 6(e)).

While the Bureau of Reclamation Construction Cost Index can adjust the appropriated amounts, the bill also includes a provision for adjustments due to "unforeseen market volatility" (SEC. 7(b)). This could be a double-edged sword, potentially leading to more funding if costs skyrocket, but also creating uncertainty if interpretations of "volatility" differ. The Navajo Nation is required to submit annual reports detailing how they spend the money (SEC. 6(h)), which should provide some transparency.

Laying Down the Law (and the Claims)

Beyond the money, the bill does some significant legal housekeeping. It ratifies the water rights agreement between the Navajo Nation, New Mexico, and other parties (SEC. 4). This means everyone officially agrees on who gets how much water. Crucially, the Navajo Nation and the U.S. (acting as trustee) waive certain past and future claims related to water rights in the Rio San Jose Stream System (SEC. 9). The trade-off is certainty: the Navajo Nation gets defined water rights and funding, but gives up the ability to sue for certain past damages or disruptions.

However, the bill doesn't mean the Navajo Nation is giving up all its rights. They retain claims related to enforcing the agreement, water quality issues, and water rights acquired after the bill's enactment (SEC. 9(d)). They can also lease water for off-reservation use for up to 99 years, a potentially significant economic opportunity, but one that requires Secretarial approval (SEC. 5(b)).

One potentially controversial provision is a $20,000,000 offset against any future judgment or settlement related to Navajo Nation water rights claims in the Rio Puerco Basin (SEC. 9(f)). This could be seen as limiting the Nation's potential recourse in a separate, but related, water rights area.

Ripple Effects

The bill also expands the service area of the Navajo-Gallup Water Supply Project to include communities within the Rio San Jose Basin (SEC. 14). This could mean more reliable water access for those communities, but the details of the connection and facilities require approval from the Commissioner of Reclamation. The Act has an expiration date of July 1, 2030, unless the Secretary publishes certain findings before then, providing a built-in deadline for implementation (SEC. 9(h)). If the deadline isn't met, the waivers are void, and the agreement is off – a significant incentive to keep things moving. Finally, the bill specifically addresses the rights of Allottees (individuals granted land), ensuring their water rights are determined separately and are not subject to the same restrictions as the Navajo Nation's (SEC. 13).