I 
118TH CONGRESS 
2D SESSION 
H. R. 8945 
To approve the settlement of water rights claims of the Navajo Nation 
in the Rio San Jose´ Stream System in the State of New Mexico, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 8, 2024 
Ms. LEGER FERNANDEZ introduced the following bill; which was referred to 
the Committee on Natural Resources 
A BILL 
To approve the settlement of water rights claims of the 
Navajo Nation in the Rio San Jose´ Stream System in 
the State of New Mexico, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Navajo Nation Rio San Jose´ Stream System Water 
Rights Settlement Act of 2024’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Purposes. 
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Sec. 3. Definitions. 
Sec. 4. Ratification of Agreement. 
Sec. 5. Navajo Nation’s Water Rights. 
Sec. 6. Navajo Nation Rio San Jose´ Settlement Trust Fund. 
Sec. 7. Funding. 
Sec. 8. Enforceability Date. 
Sec. 9. Waivers and releases of claims. 
Sec. 10. Satisfaction of claims. 
Sec. 11. Consent of United States to jurisdiction for judicial review of a Navajo 
Nation Water Use Permit decision. 
Sec. 12. Miscellaneous provisions. 
Sec. 13. Relation to Allottees. 
Sec. 14. Expansion of Navajo-Gallup Water Supply Project service area. 
Sec. 15. Antideficiency. 
SEC. 2. PURPOSES. 
The purposes of this Act are— 
(1) to achieve a fair, equitable, and final settle-
ment of all claims to water rights in the general 
stream adjudication of the Rio San Jose´ Stream 
System captioned ‘‘State of New Mexico, ex rel. 
State Engineer v. Kerr-McGee, et al.’’, No. D–1333– 
CV–1983–00190 and No. D–1333–CV–1983–00220 
(consolidated), pending in the Thirteenth Judicial 
District Court for the State of New Mexico, for— 
(A) the Navajo Nation; and 
(B) the United States, acting as trustee 
for the Navajo Nation; 
(2) to authorize, ratify, and confirm the agree-
ment entered into by the Navajo Nation, the State, 
and various other parties to the Agreement, to the 
extent that the Agreement is consistent with this 
Act; 
(3) to authorize and direct the Secretary— 
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(A) to execute the Agreement; and 
(B) to take any other actions necessary to 
carry out the Agreement in accordance with 
this Act; and 
(4) to authorize funds necessary for the imple-
mentation of the Agreement and this Act. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) ACEQUIA.—The term ‘‘Acequia’’ means 
each of the Bluewater Toltec Irrigation District, La 
Acequia Madre del Ojo del Gallo, Moquino Water 
Users Association II, Murray Acres Irrigation Asso-
ciation, San Mateo Irrigation Association, Seboyeta 
Community Irrigation Association, Cubero Acequia 
Association, Cebolletita Acequia Association, and 
Community Ditch of Rio San Jose´ de la Cienega. 
(2) ADJUDICATION.—The term ‘‘Adjudication’’ 
means the general adjudication of water rights enti-
tled ‘‘State of New Mexico, ex rel. State Engineer v. 
Kerr-McGee, et al.’’, No. D–1333–CV–1983–00190 
and No. D–1333–CV–1983–00220 (consolidated) 
pending, as of the date of enactment of this Act, in 
the Decree Court. 
(3) 
AGREEMENT.—The 
term 
‘‘Agreement’’ 
means— 
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(A) the addendum dated June 11, 2024, 
to, and as provided in Article 17 of, the docu-
ment entitled ‘‘Rio San Jose´ Stream System 
Water Rights Local Settlement Agreement 
Among the Pueblo of Acoma, the Pueblo of La-
guna, the Navajo Nation, the State of New 
Mexico, the City of Grants, the Village of 
Milan, the Association of Community Ditches of 
the Rio San Jose´ and Nine Individual Acequias 
and Community Ditches’’ and dated May 13, 
2022, and the attachments thereto and to the 
addendum; and 
(B) any amendment to the documents re-
ferred to in subparagraph (A) (including an 
amendment to an attachment) that is executed 
to ensure that the Agreement is consistent with 
this Act. 
(4) 
ALLOTMENT.—The 
term 
‘‘Allotment’’ 
means a parcel of land that is— 
(A) located within— 
(i) the Rio Puerco Basin; or 
(ii) the Rio San Jose´ Stream System; 
and 
(B) held in trust by the United States for 
the benefit of— 
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(i) 1 or more individual Indians; or 
(ii) an Indian Tribe holding an undi-
vided fractional beneficial interest. 
(5) ALLOTTEE.—The term ‘‘Allottee’’ means— 
(A) an individual Indian holding a bene-
ficial interest in an Allotment; or 
(B) an Indian Tribe holding an undivided 
fractional beneficial interest in an Allotment. 
(6) 
DECREE
COURT.—The 
term 
‘‘Decree 
Court’’ means the Thirteenth Judicial District Court 
of the State of New Mexico. 
(7) ENFORCEABILITY DATE.—The term ‘‘En-
forceability Date’’ means the date described in sec-
tion 8. 
(8) NAVAJO NATION; NAVAJO; NATION.— 
(A) IN
GENERAL.—The terms ‘‘Navajo 
Nation’’, ‘‘Navajo’’, and ‘‘Nation’’ mean the 
body politic and federally recognized Indian na-
tion, as published on the list required under 
section 104(a) of the Federally Recognized In-
dian Tribe List Act of 1994 (25 U.S.C. 
5131(a)), also known variously as the ‘‘Navajo 
Nation of Arizona, New Mexico, & Utah’’, and 
the ‘‘Navajo Nation of Indians’’ and other simi-
lar names. 
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(B) INCLUSIONS.—The terms ‘‘Navajo Na-
tion’’, ‘‘Navajo’’, and ‘‘Nation’’ include all 
bands of Navajo Indians and chapters of the 
Navajo Nation and all divisions, agencies, offi-
cers, and agents thereof. 
(9) NAVAJO NATION LANDS; NAVAJO LANDS.— 
(A) IN
GENERAL.—The terms ‘‘Navajo 
Nation Lands’’ and ‘‘Navajo Lands’’ mean any 
real property— 
(i) in the Rio San Jose´ Stream Sys-
tem that is held by the United States in 
trust for the Navajo Nation, or owned by 
the Navajo Nation, as of the Enforceability 
Date; or 
(ii) in the Rio Puerco Basin that is 
held by the United States in trust for the 
Navajo Nation, or owned by the Navajo 
Nation, as of the Enforceability Date. 
(B) INCLUSIONS.—The terms ‘‘Navajo Na-
tion Lands’’ and ‘‘Navajo Lands’’ include land 
placed in trust with the United States subse-
quent to the Enforceability Date for the Navajo 
Nation in the Rio San Jose´ Stream System and 
in the Rio Puerco Basin. 
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(C) EXCLUSION.—The terms ‘‘Navajo Na-
tion Lands’’ and ‘‘Navajo Lands’’ do not in-
clude Allotments. 
(10) NAVAJO NATION WATER CODE.—The term 
‘‘Navajo Nation Water Code’’ means the water code 
enacted in 1984 by the Navajo Nation Council 
through Resolution CAU–34–84. (22 N.N.C. 1101 
et seq.). 
(11) NAVAJO NATION WATER USE PERMIT.— 
The term ‘‘Navajo Nation Water Use Permit’’ 
means a document specifying terms and conditions 
for diversion and use of water on Navajo Nation 
Lands issued by the Navajo Nation within the scope 
of its authority under the Navajo Nation Water 
Code and the Settlement Agreement. 
(12) NAVAJO NATION’S WATER RIGHTS.— 
(A) IN GENERAL.—The term ‘‘Navajo Na-
tion’s Water Rights’’ means all the water rights 
set out in Articles 17.2, 17.4, and 17.5 of the 
Agreement. 
(B) EXCLUSIONS.—The term ‘‘Navajo Na-
tion’s Water Rights’’ does not include— 
(i) any interest that the Nation may 
have in an Allotment that is determined by 
the Secretary to be patented pursuant to 
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section 1 of the Act of February 8, 1887 
(commonly known as the ‘‘Indian General 
Allotment Act’’) (24 Stat. 388, chapter 
119; 25 U.S.C. 331) (as in effect on the 
day before the date of enactment of the In-
dian Land Consolidation Act Amendments 
of 2000 (Public Law 106–462; 114 Stat. 
1991)); or 
(ii) any undivided interest that the 
Nation may have in an Allotment that is 
determined by the Secretary to be patented 
pursuant to an authority other than sec-
tion 1 of the Act of February 8, 1887 
(commonly known as the ‘‘Indian General 
Allotment Act’’) (24 Stat. 388, chapter 
119; 25 U.S.C. 331) (as in effect on the 
day before the date of enactment of the In-
dian Land Consolidation Act Amendments 
of 2000 (Public Law 106–462; 114 Stat. 
1991)). 
(13) NAVAJO PARTIAL FINAL JUDGMENT AND 
DECREE.—The term ‘‘Navajo Partial Final Judg-
ment and Decree’’ means a final or interlocutory 
partial final judgment and decree entered by the De-
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cree Court with respect to the Navajo Nation’s 
Water Rights— 
(A) that is substantially in the form de-
scribed in Article 17.14.7.2 of the Agreement, 
as amended to ensure consistency with this Act; 
and 
(B) from which no further appeal may be 
taken. 
(14) NAVAJO TRUST FUND.—The term ‘‘Navajo 
Trust Fund’’ means the Navajo Nation Rio San 
Jose´ Settlement Trust Fund established under sec-
tion 6(a). 
(15) RIO
PUERCO
BASIN.—The term ‘‘Rio 
Puerco Basin’’ means the area defined by the 
United States Geological Survey Hydrologic Unit 
Codes (HUC) 13020204 (Rio Puerco subbasin) and 
13020205 (Arroyo Chico subbasin), including the 
hydrologically connected groundwater. 
(16) RIO
SAN
JOSE´
STREAM
SYSTEM.—The 
term ‘‘Rio San Jose´ Stream System’’ means the geo-
graphic extent of the area involved in the Adjudica-
tion pursuant to the description filed in the Decree 
Court on November 21, 1986. 
(17) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of the Interior. 
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(18) SIGNATORY ACEQUIA.—The term ‘‘Signa-
tory Acequia’’ means an acequia that is a signatory 
to the Agreement. 
(19) STATE.—The term ‘‘State’’ means the 
State of New Mexico and all officers, agents, depart-
ments, and political subdivisions of the State of New 
Mexico. 
SEC. 4. RATIFICATION OF AGREEMENT. 
(a) RATIFICATION.— 
(1) IN GENERAL.—Except as modified by this 
Act, and to the extent that the Agreement does not 
conflict with this Act, the Agreement is authorized, 
ratified, and confirmed. 
(2) AMENDMENTS.—If an amendment to the 
Agreement, or to any attachment to the Agreement 
requiring the signature of the Secretary, is executed 
in accordance with this Act to make the Agreement 
consistent with this Act, the amendment is author-
ized, ratified, and confirmed. 
(b) EXECUTION.— 
(1) IN
GENERAL.—To the extent that the 
Agreement does not conflict with this Act, the Sec-
retary shall execute the Agreement, including all at-
tachments to, or parts of, the Agreement requiring 
the signature of the Secretary. 
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(2) MODIFICATIONS.—Nothing in this Act pro-
hibits the Secretary, after execution of the Agree-
ment, from approving any modification to the Agree-
ment, including an attachment to the Agreement, 
that is consistent with this Act, to the extent that 
the modification does not otherwise require congres-
sional approval under section 2116 of the Revised 
Statutes (25 U.S.C. 177) or any other applicable 
provision of Federal law. 
(c) ENVIRONMENTAL COMPLIANCE.— 
(1) IN GENERAL.—In implementing the Agree-
ment and this Act, the Secretary shall comply 
with— 
(A) the Endangered Species Act of 1973 
(16 U.S.C. 1531 et seq.); 
(B) the National Environmental Policy Act 
of 1969 (42 U.S.C. 4321 et seq.), including the 
implementing regulations of that Act; and 
(C) all other applicable Federal environ-
mental laws and regulations. 
(2) COMPLIANCE.— 
(A) IN
GENERAL.—In implementing the 
Agreement and this Act, the Navajo Nation 
shall prepare any necessary environmental doc-
uments, consistent with— 
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(i) the Endangered Species Act of 
1973 (16 U.S.C. 1531 et seq.); 
(ii) the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.), in-
cluding the implementing regulations of 
that Act; and 
(iii) all other applicable Federal envi-
ronmental laws and regulations. 
(B) 
AUTHORIZATIONS.—The 
Secretary 
shall— 
(i) independently evaluate the docu-
mentation required under subparagraph 
(A); and 
(ii) be responsible for the accuracy, 
scope, and contents of that documentation. 
(3) EFFECT OF EXECUTION.—The execution of 
the Agreement by the Secretary under this section 
shall not constitute a major Federal action under 
the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.). 
(4) COSTS.—Any costs associated with the per-
formance of the compliance activities under this sub-
section shall be paid from funds deposited in the 
Navajo Trust Fund or other sources of funding from 
the Navajo Nation, subject to the condition that any 
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costs associated with the performance of Federal ap-
proval or other review of such compliance work or 
costs associated with inherently Federal functions 
shall remain the responsibility of the Secretary. 
SEC. 5. NAVAJO NATION’S WATER RIGHTS. 
(a) TRUST STATUS OF NAVAJO NATION’S WATER 
RIGHTS.—The Navajo Nation’s Water Rights shall be 
held in trust by the United States on behalf of the Nation 
in accordance with the Agreement and this Act. 
(b) FORFEITURE AND ABANDONMENT.— 
(1) IN GENERAL.—The Navajo Nation’s Water 
Rights shall not be subject to loss through non-use, 
forfeiture, abandonment, or other operation of law. 
(2) STATE-LAW BASED WATER RIGHTS.—State- 
law based water rights acquired by the Navajo Na-
tion, or by the United States on behalf of the Na-
tion, after the date for inclusion in the Navajo Par-
tial Final Judgment and Decree, shall not be subject 
to forfeiture, abandonment, or permanent alienation 
from the time they are acquired. 
(c) USE.—Any use of the Navajo Nation’s Water 
Rights shall be subject to the terms and conditions of the 
Agreement and this Act. 
(d) ALLOTMENT RIGHTS NOT INCLUDED.—Con-
sistent with section 13, the Navajo Nation’s Water Rights 
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shall not include any water rights for an Allotment, sub-
ject to the condition that the Navajo Nation may allow 
use of the Navajo Nation’s Water Rights on an Allotment 
subject to the terms and conditions of the Agreement and 
this Act. 
(e) ALLOTTEES
NOT
ADVERSELY
AFFECTED.— 
Nothing in this Act quantifies or diminishes any water 
right, or any claim or entitlement to water, of an Allottee. 
(f) ALLOTTEE WATER RIGHTS.—The Nation shall 
not object in any general stream adjudication, including 
the Adjudication, to the quantification of reasonable do-
mestic, stock, and irrigation water uses on an Allotment, 
and shall administer any water use in accordance with ap-
plicable Federal law, including recognition of— 
(1) any water use existing on an Allotment as 
of the date of enactment of this Act; 
(2) reasonable domestic, stock, and irrigation 
water uses on an Allotment; and 
(3) any water right decreed to the United 
States in trust for an Allottee in a general stream 
adjudication, including the Adjudication, for use on 
an Allotment. 
(g) AUTHORITY OF THE NAVAJO NATION.— 
(1) USE ON NAVAJO LANDS.—The Navajo Na-
tion shall have the authority to allocate, distribute, 
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and lease the Navajo Nation’s Water Rights for use 
on Navajo Lands in accordance with the Agreement, 
this Act, and applicable Federal law, including the 
first section of the Act of August 9, 1955 (69 Stat. 
539, chapter 615; 25 U.S.C. 415) (commonly known 
as the ‘‘Long-Term Leasing Act’’). 
(2) USE OFF NAVAJO LANDS.— 
(A) IN
GENERAL.—The Navajo Nation 
may allocate, distribute, and lease the Navajo 
Nation’s Water Rights for use off Navajo 
Lands in accordance with the Agreement, this 
Act, and applicable Federal law, subject to the 
approval of the Secretary. 
(B) 
MAXIMUM
TERM.—The 
maximum 
term of any lease, including all renewals, under 
this paragraph shall not exceed 99 years. 
(h) ADMINISTRATION.— 
(1) NO ALIENATION.—The Navajo Nation shall 
not permanently alienate any portion of the Navajo 
Nation’s Water Rights. 
(2) PURCHASES OR GRANTS OF LAND FROM IN-
DIANS.—An authorization provided by this Act for 
the allocation, distribution, leasing, or other ar-
rangement entered into pursuant to this Act shall be 
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considered to satisfy any requirement for authoriza-
tion of the action required by Federal law. 
(3) PROHIBITION ON FORFEITURE.—The non- 
use of all or any portion of the Navajo Nation’s 
Water Rights by any water user shall not result in 
the forfeiture, abandonment, relinquishment, or 
other loss of all or any portion of the Navajo Na-
tion’s Water Rights. 
(4) FORBEARANCE
BY
NAVAJO
NATION
FOR 
NON-STOCK
WATER
RIGHTS
OF
CERTAIN
ALLOT-
MENTS.—Forbearance by the Navajo Nation in ac-
cordance with Article 17.13.4 of the Agreement— 
(A) shall be considered non-use for pur-
poses of paragraph (3); and 
(B) shall not result in the forfeiture, aban-
donment, relinquishment, or other loss of any 
portion of the Navajo Nation’s Water Rights. 
SEC. 6. NAVAJO NATION RIO SAN JOSE´
SETTLEMENT 
TRUST FUND. 
(a) ESTABLISHMENT.—The Secretary shall establish 
a trust fund, to be known as the ‘‘Navajo Nation Rio San 
Jose´ Water Rights Settlement Trust Fund’’, to be man-
aged, invested, and distributed by the Secretary and to 
remain available until expended, withdrawn, or reverted 
to the general fund of the Treasury, consisting of the 
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amounts deposited in the Navajo Trust Fund under sub-
section (c), together with any investment earnings, includ-
ing interest, earned on those amounts, for the purpose of 
carrying out this Act. 
(b) ACCOUNTS.—The Secretary shall establish in the 
Navajo Trust Fund the following accounts: 
(1) The Navajo Nation Water Rights Settle-
ment Account. 
(2) The Navajo Nation Operations and Mainte-
nance Account. 
(c) DEPOSITS.—The Secretary shall deposit in the 
Navajo Trust Fund the amounts made available pursuant 
to section 7(a). 
(d) MANAGEMENT AND INTEREST.— 
(1) MANAGEMENT.—On receipt and deposit of 
funds into the Navajo Trust Fund under subsection 
(c), the Secretary shall manage, invest, and dis-
tribute all amounts in the Navajo Trust Fund in a 
manner that is consistent with the investment au-
thority of the Secretary under— 
(A) the first section of the Act of June 24, 
1938 (25 U.S.C. 162a); 
(B) the American Indian Trust Fund Man-
agement Reform Act of 1994 (25 U.S.C. 4001 
et seq.); and 
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(C) this subsection. 
(2) INVESTMENT
EARNINGS.—In addition to 
the deposits made to the Navajo Trust Fund under 
subsection (c), any investment earnings, including 
interest, earned on those amounts held in the Nav-
ajo Trust Fund are authorized to be used in accord-
ance with subsections (f) and (h). 
(e) AVAILABILITY OF AMOUNTS.— 
(1) IN
GENERAL.—Amounts appropriated to, 
and deposited in, the Navajo Trust Fund, including 
any investment earnings, including interest, earned 
on those amounts, shall be made available to the Na-
tion by the Secretary beginning on the Enforce-
ability Date, subject to the requirements of this sec-
tion, except for funds to be made available to the 
Nation pursuant to paragraph (2). 
(2) USE
OF
FUNDS.—Notwithstanding para-
graph (1), up to $15,000,000 of the amounts depos-
ited in the Navajo Nation Water Rights Settlement 
Account, including any investment earnings, includ-
ing interest, earned on those amounts, shall be avail-
able to the Nation on the date on which the amounts 
are deposited in the Navajo Nation Water Rights 
Settlement Account for the following uses: 
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(A) Feasibility studies, planning, engineer-
ing, design, and related environmental, cultural, 
and historical compliance, and obtaining rights- 
of-way or permits for water supply infrastruc-
ture to serve Navajo Nation needs consistent 
with subsection (h)(1)(B). 
(B) Installing, on Navajo Lands, ground-
water wells and associated infrastructure to 
meet immediate domestic, commercial, munic-
ipal and industrial water needs, and associated 
environmental, cultural, and historical compli-
ance. 
(f) WITHDRAWALS.— 
(1) WITHDRAWALS UNDER THE AMERICAN IN-
DIAN TRUST FUND MANAGEMENT REFORM ACT OF 
1994.— 
(A) IN
GENERAL.—The Navajo Nation 
may withdraw any portion of the amounts in 
the Navajo Trust Fund on approval by the Sec-
retary of a Tribal management plan submitted 
by the Nation in accordance with the American 
Indian Trust Fund Management Reform Act of 
1994 (25 U.S.C. 4001 et seq.). 
(B) REQUIREMENTS.—In addition to the 
requirements under the American Indian Trust 
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Fund Management Reform Act of 1994 (25 
U.S.C. 4001 et seq.), the Tribal management 
plan under this paragraph shall require that the 
Nation shall spend all amounts withdrawn from 
the Navajo Trust Fund, and any investment 
earnings, including interest, earned on those 
amounts, through the investments under the 
Tribal management plan, in accordance with 
this Act. 
(C) ENFORCEMENT.—The Secretary may 
carry out such judicial and administrative ac-
tions as the Secretary determines to be nec-
essary to enforce the Tribal management plan 
under this paragraph to ensure that amounts 
withdrawn by the Nation from the Navajo 
Trust Fund under subparagraph (A) are used 
in accordance with this Act. 
(2) 
WITHDRAWALS
UNDER
EXPENDITURE 
PLAN.— 
(A) IN
GENERAL.—The Navajo Nation 
may submit to the Secretary a request to with-
draw funds from the Navajo Trust Fund pursu-
ant to an approved expenditure plan. 
(B) REQUIREMENTS.—To be eligible to 
withdraw amounts under an expenditure plan 
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under subparagraph (A), the Nation shall sub-
mit to the Secretary an expenditure plan for 
any portion of the Navajo Trust Fund that the 
Nation elects to withdraw pursuant to that sub-
paragraph, subject to the condition that the 
amounts shall be used for the purposes de-
scribed in this Act. 
(C) INCLUSIONS.—An expenditure plan 
under this paragraph shall include a description 
of the manner and purpose for which the 
amounts proposed to be withdrawn from the 
Navajo Trust Fund will be used by the Nation, 
in accordance with this subsection and sub-
section (h). 
(D) APPROVAL.—The Secretary shall ap-
prove an expenditure plan submitted under sub-
paragraph (A) if the Secretary determines that 
the plan— 
(i) is reasonable; and 
(ii) is consistent with, and will be used 
for, the purposes of this Act. 
(E) ENFORCEMENT.—The Secretary may 
carry out such judicial and administrative ac-
tions as the Secretary determines to be nec-
essary to enforce an expenditure plan to ensure 
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that amounts disbursed under this paragraph 
are used in accordance with this Act. 
(g) EFFECT OF SECTION.—Nothing in this section 
gives the Navajo Nation the right to judicial review of a 
determination of the Secretary relating to whether to ap-
prove a Tribal management plan under paragraph (1) of 
subsection (f) or an expenditure plan under paragraph (2) 
of that subsection except under subchapter II of chapter 
5, and chapter 7, of title 5, United States Code (commonly 
known as the ‘‘Administrative Procedure Act’’). 
(h) USES.— 
(1) NAVAJO NATION WATER RIGHTS SETTLE-
MENT ACCOUNT.—The Navajo Nation Water Rights 
Settlement Account may only be used for the fol-
lowing purposes: 
(A) Acquiring water rights or water sup-
ply. 
(B) Planning, permitting, designing, engi-
neering, constructing, reconstructing, replacing, 
rehabilitating, operating, or repairing water 
production, treatment, or delivery infrastruc-
ture, including for domestic and municipal use, 
on-farm improvements, or wastewater infra-
structure. 
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(C) Navajo Nation’s Water Rights man-
agement and administration. 
(D) Watershed protection and enhance-
ment, support of agriculture, water-related Nav-
ajo community welfare and economic develop-
ment, and costs relating to implementation of 
the Agreement. 
(E) Environmental compliance in the de-
velopment and construction of infrastructure 
under this Act. 
(2) NAVAJO NATION OPERATIONS AND MAINTE-
NANCE ACCOUNT.—The Navajo Nation Water Infra-
structure Operations and Maintenance Account may 
only be used to pay costs for operation, mainte-
nance, and replacement of water infrastructure to 
serve Navajo domestic, commercial, municipal, and 
industrial water uses from any water source. 
(i) LIABILITY.—The Secretary and the Secretary of 
the Treasury shall not be liable for the expenditure or in-
vestment of any amounts withdrawn from the Navajo 
Trust Fund by the Nation under paragraph (1) or (2) of 
subsection (f). 
(j) EXPENDITURE REPORTS.—The Navajo Nation 
shall annually submit to the Secretary an expenditure re-
port describing accomplishments and amounts spent from 
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use of withdrawals under a Tribal management plan or 
an expenditure plan under paragraph (1) or (2) of sub-
section (f), as applicable. 
(k) NO PER CAPITA DISTRIBUTIONS.—No portion of 
the Navajo Trust Fund shall be distributed on a per capita 
basis to any member of Navajo Nation. 
(l) TITLE TO INFRASTRUCTURE.—Title to, control 
over, and operation of any project constructed using funds 
from the Navajo Trust Fund shall remain in the Navajo 
Nation. 
(m) OPERATION, MAINTENANCE, AND REPLACE-
MENT.—All operation, maintenance, and replacement 
costs of any project constructed using funds from the Nav-
ajo Trust Fund shall be the responsibility of the Nation. 
SEC. 7. FUNDING. 
(a) MANDATORY
APPROPRIATIONS.—Out of any 
money in the Treasury not otherwise appropriated, the 
Secretary of the Treasury shall transfer to the Secretary 
the following amounts for deposit in the following ac-
counts: 
(1) THE NAVAJO NATION WATER RIGHTS SET-
TLEMENT ACCOUNT.—For deposit in the Navajo Na-
tion Water Rights Settlement Account established 
under section 6(b)(1), $200,271,000, to remain 
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available until expended, withdrawn, or reverted to 
the general fund of the Treasury. 
(2) THE
NAVAJO
NATION
OPERATIONS
AND 
MAINTENANCE ACCOUNT.—For deposit in the Nav-
ajo Nation Operations and Maintenance Account es-
tablished under section 6(b)(2), $23,000,000, to re-
main available until expended, withdrawn, or re-
verted to the general fund of the Treasury. 
(b) FLUCTUATION IN COSTS.— 
(1) IN GENERAL.—The amounts appropriated 
under subsection (a) shall be increased or decreased, 
as appropriate, by such amounts as may be justified 
by reason of ordinary fluctuations in costs, as indi-
cated by the Bureau of Reclamation Construction 
Cost Index–Composite Trend. 
(2) CONSTRUCTION COSTS ADJUSTMENT.—The 
amounts appropriated under subsection (a) shall be 
adjusted to address construction cost changes nec-
essary to account for unforeseen market volatility 
that may not otherwise be captured by construction 
cost indices, as determined by the Secretary, includ-
ing repricing applicable to the types of construction 
and current industry standards involved. 
(3) REPETITION.—The adjustment process 
under this subsection shall be repeated for each sub-
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sequent amount appropriated until the applicable 
amount, as adjusted, has been appropriated. 
(4) PERIOD OF INDEXING.—The period of in-
dexing adjustment under this subsection for any in-
crement of funding shall start on October 1, 2021, 
and end on the date on which funds are deposited 
in the Navajo Trust Fund. 
(c) STATE COST-SHARE.—Pursuant to the Agree-
ment, the State shall contribute— 
(1) $3,000,000, as adjusted for inflation pursu-
ant to the Agreement, to the Bluewater Toltec Irri-
gation District and Acequia Madre del Ojo del Gallo 
for purposes described in the Agreement; and 
(2) if applicable, additional funding subject to 
the provisions of Article 17.12.4 of the Agreement. 
SEC. 8. ENFORCEABILITY DATE. 
The Enforceability Date shall be the date on which 
the Secretary publishes in the Federal Register a state-
ment of findings that— 
(1) to the extent that the Agreement conflicts 
with this Act, the Agreement has been amended to 
conform with this Act; 
(2) the Agreement, as amended, has been exe-
cuted by all parties to the Agreement, including the 
United States; 
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(3) all of the amounts appropriated under sec-
tion 7(a) have been appropriated and deposited in 
the designated accounts of the Navajo Trust Fund; 
(4) the State has— 
(A) provided $3,000,000 of funding under 
section 7(c)(1) into the appropriate funding ac-
counts or entered into a funding agreement 
with the intended beneficiaries for that funding; 
and 
(B) enacted legislation to amend State law 
to provide that a Navajo Nation Water Right 
may be leased for a term not to exceed 99 
years, including renewals; 
(5) the Decree Court has approved the Agree-
ment and has entered the Navajo Partial Final 
Judgment and Decree; and 
(6) the waivers and releases under section 9 
have been executed by the Navajo Nation and the 
Secretary. 
SEC. 9. WAIVERS AND RELEASES OF CLAIMS. 
(a) WAIVERS AND RELEASES OF CLAIMS BY THE 
NAVAJO NATION AND UNITED STATES AS TRUSTEE FOR 
THE NATION.—Subject to the reservation of rights and 
retention of claims under subsection (d), as consideration 
for recognition of the Navajo Nation’s Water Rights and 
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