Navajo-Gallup Water Project Gets Major Upgrade: Funding Boost, Expanded Service, and New Trust Funds

The Navajo-Gallup Water Supply Project Amendments Act of 2025 is a significant overhaul of the existing Northwestern New Mexico Rural Water Projects Act. It's all about getting more clean water to more people on the Navajo Nation and making sure the project runs smoothly for decades to come, and also sets aside funds for the Jicarilla Apache Nation, as well.

Water Works: Project Expansion and Upgrades

This bill expands where the Navajo-Gallup Water Supply Project can deliver water. It now includes more Navajo Nation communities in the Rio San Jose Basin in New Mexico and over in Lupton, Arizona, which is in the Little Colorado River Basin. The bill also streamlines how land can be acquired for the project (SEC. 3). Think of it like this: if the project needs a piece of land for a pipeline or a treatment plant, this makes the process easier. The bill specifically names parcels of land, including the sites of the Tohlakai Pumping Plant and the San Juan Generating Station, that will be put into trust for the Navajo Nation (SEC. 3). This means the land will be held by the federal government for the benefit of the Nation. The bill also sets aside up to $6,250,000 for renewable energy development for the project, with a chunk of that potentially going to hydroelectric power (SEC. 3). So, they're not just getting water, they're potentially getting cleaner power too.

Cash Flow: Funding and Financial Fixes

One of the biggest changes is a major increase in authorized funding. The project is now authorized to receive up to $2,175,000,000 through 2029 (SEC. 3). That's a lot of money, and it reflects the rising costs of construction and materials. The bill also creates a "Deferred Construction Fund" to hold money for parts of the project that might be delayed (SEC. 2 & 3). It's like a savings account for future construction, and it gives the Navajo Nation more flexibility in how they build out the project. The City of Gallup's repayment obligation is capped at $76,000,000 (SEC. 3). The bill also extends the deadline for the Navajo Nation to use water from the San Juan River to 2032, giving them more time to get the full benefit of the project (SEC. 3). It clarifies who can tax what. Construction and operations on Nation land are taxed only by the Nation, not the state or local governments. Activities on other land are taxed by the state or local governments, but not the Nation (SEC. 3).

Trust Funds and Long-Term Planning

The bill significantly revamps the trust funds related to the project. It renames the existing "Navajo Nation Water Resources Development Trust Fund" to "Settlement Trust Funds" and creates several new ones (SEC. 4). There's a fund for water resources development, allowing the Nation to invest in things like water conservation (SEC. 4). There's also a fund specifically for operation, maintenance, and replacement costs for the Navajo Nation, with $250,000,000 authorized for deposit (SEC. 4). Finally, there is also a similar fund for the Jicarilla Apache Nation, with up to $10,000,000 authorized, but it's contingent on a study showing they can't afford those costs themselves (SEC. 4). These trust funds are designed to give the Nations long-term financial stability for managing their water resources. To access the money, both the Navajo Nation and the Jicarilla Apache Nation need to have a "Tribal management plan" approved by the Secretary of the Interior (SEC. 4). It's about ensuring responsible spending and accountability.

Utah Water Situation

Section 5 gets pretty specific about water use in Utah. The Navajo Nation can supply non-Project water to its communities in Utah, up to 2,000 acre-feet per year. This water has to be treated, stored, or transported using existing infrastructure. The key here is that no new infrastructure can be built with Project funds to connect to the Sweetwater pipeline, and it can't increase costs for existing Project participants. This water is considered part of the Navajo-Utah water rights, so it impacts Utah's overall water allocation. Basically, it's a way for the Navajo Nation to use some of its existing water rights to serve its communities in Utah, but with very specific limitations.

The Bottom Line

This bill is a big deal for the Navajo Nation and the Jicarilla Apache Nation. It provides more water, more funding, and more control over their water resources. It also addresses some long-standing issues related to water rights and project management. While the increased funding and extended deadlines are good, there's always the potential for cost overruns and delays. And even with the requirement for tribal management plans, there's a risk of mismanagement of the trust funds. But overall, this bill represents a major step forward in securing a reliable water supply for these communities.