Navajo Nation Rio San José Stream System Water Rights Settlement Act of 2025

This bill settles water rights claims of the Navajo Nation in the Rio San José area of New Mexico. It approves a settlement and creates a trust fund to carry it out, while recognizing the Nation’s water rights and protecting them from being lost just because they are not used. The United States will hold these rights in trust for the Nation. The money can support planning, new wells, and water systems so families and farms have reliable, clean water. The bill also lets the Nation expand the Navajo-Gallup Water Supply Project to serve Navajo communities in the Rio San José Basin.

It sets up two accounts with about $200.27 million for projects and $23 million for operations and maintenance, with up to $15 million available right away for urgent needs like wells. New Mexico must also contribute $3 million to local irrigation groups. The Nation may lease some water for up to 99 years, including for use off Navajo lands, with required approvals, and the state must update its law to allow these leases before the settlement takes effect. The settlement begins only after all sides complete specific steps; if that does not happen by July 1, 2030, the act expires and unused federal funds are returned. The bill waives certain past water claims in this stream system but keeps the right to enforce the new water rights and to protect water quality. It does not reduce the rights of other tribes or of individual allotments.

• Who is affected: Navajo Nation communities in the Rio San José Basin; local irrigation groups in New Mexico.
• What changes: Water rights are recognized and held in trust; a settlement trust fund pays for water projects and wells; the Navajo-Gallup Project can reach more Navajo communities; some water rights may be leased for up to 99 years; no change to other tribes’ or allottee rights.
• When: It takes effect after required federal, state, and Navajo steps are completed; there is a deadline of July 1, 2030; up to $15 million is available immediately for urgent needs.