S. 953 — Northeastern Arizona Indian Water Rights Settlement Act of 2025

This section establishes the short title of the Act as the “Northeastern Arizona Indian Water Rights Settlement Act of 2025” and sets forth the table of contents.

This section states the purposes of the Act as (1) achieving a fair, equitable, and final settlement of all water rights claims in Arizona for the Navajo Nation and Navajo allottees, the Hopi Tribe and Hopi allottees, the San Juan Southern Paiute Tribe, and the United States as trustee for those tribes and allottees; (2) authorizing, ratifying, and confirming the Northeastern Arizona Indian Water Rights Settlement Agreement, to the extent consistent with this Act; (3) authorizing and directing the Secretary to execute duties under the agreement and this Act; and (4) authorizing and appropriating funds necessary for implementation.

This section defines terms used throughout the Act, including "1882 Reservation" (certain lands within the Hopi Indian Reservation and partitioned to the Hopi Tribe); "Arizona Colorado River Water" (Colorado River waters apportioned to Arizona, for purposes of interpreting the Settlement Agreement and the Act); "Arizona Lower Basin Colorado River Water" (2,800,000 acre-feet per year (AFY) apportioned to Arizona); "Arizona Upper Basin Colorado River Water" (50,000 AFY apportioned to Arizona); "CAP" or "Central Arizona Project" (federal reclamation project authorized under the Colorado River Basin Project Act); "Cibola Water" (Hopi Tribe's entitlement to up to 4,278 AFY of Fourth Priority Water); "Decree" (U.S. Supreme Court decree in Arizona v. California and modifications); "divert" (to receive, withdraw, or capture water using mechanical devices or other human acts); and "Fourth Priority Water" (up to 164,652 AFY of Colorado River water for certain post-1968 contracts and rights after CAP deliveries).

This section ratifies the Northeastern Arizona Indian Water Rights Settlement Agreement (as modified by the Act), authorizes the Secretary of the Interior to execute it (including consistent modifications without further congressional approval under 25 U.S.C. 177), and requires modifications to attached abstracts as needed to correct errors or conform to law. (The agreement settles longstanding water rights claims of the Navajo Nation, Hopi Tribe, and San Juan Southern Paiute Tribe in northeastern Arizona.) It directs environmental compliance under the Endangered Species Act of 1973, National Environmental Policy Act of 1969, and other laws—with the applicable tribe preparing necessary documents (except for the iiná bá – paa tuwaqat’si pipeline, for which the Secretary is responsible)—and deems the Secretary's execution not a major federal action under NEPA. Costs of such compliance are paid from the tribes' designated water projects trust fund accounts (or the pipeline implementation fund account), except for federal review or inherently federal functions borne by the Secretary.

This section ratifies, confirms, and declares valid the water rights of the Navajo Nation, Hopi Tribe, San Juan Southern Paiute Tribe, Navajo Allottees, and Hopi Allottees as described in the Settlement Agreement, subject to the agreement and this Act (with this Act controlling in conflicts). It directs the United States to hold in trust for these entities specified water rights from the Settlement Agreement, including (1) for the Navajo Nation and Navajo Allottees, underground water, springs, Little Colorado River tributary and mainstem water, Upper Basin Colorado River water, Fourth Priority water, and appurtenant trust land rights; (2) for the Hopi Tribe, underground water, surface water, springs, Upper Basin Colorado River water, and appurtenant trust land rights; (3) for the San Juan Southern Paiute Tribe, underground water, surface water, springs, and appurtenant trust land rights; and (4) for Hopi Allottees, specified rights. It states Congress's intent to provide Navajo Allottees benefits equivalent to or exceeding those held before enactment, accounting for litigation risks, funding availability, Navajo Nation water rights, and protections under section 7 of the Act of February 8, 1887 (25 U.S.C. 381, which authorizes the Secretary of the Interior to regulate irrigation water distribution on reservations). It restricts places of use for these rights primarily to the Navajo Reservation, other reservations, and off-reservation trust lands (with prohibitions on sales, leases, or transfers off such lands except as specified), and governs uses on allotments, fee lands, and for municipal purposes per the Settlement Agreement.

This section allocates 44,700 acre-feet per year (AFY) of Arizona Upper Basin Colorado River water and 3,500 AFY of uncontracted Fourth Priority water to the Navajo Nation, assigns Navajo Nation Cibola water to the Navajo Nation by the Hopi Tribe, and allocates 2,300 AFY of Arizona Upper Basin Colorado River water to the Hopi Tribe, all effective on the enforceability date of the underlying settlement agreement. It authorizes the amendment of the Hopi Tribe's existing Cibola contract to reduce its Fourth Priority water diversion entitlement to 4,178 AFY and expand allowable uses and places of use. The section further specifies allowable diversion points, places of use within specified basins and states (generally prohibiting use outside Arizona, except limited Navajo storage in New Mexico), and subjects certain allocated waters to shortage curtailment consistent with same-priority non-Central Arizona Project (CAP) water; it also permits storage of Upper Basin allocations at designated underground or groundwater savings facilities on the respective reservations.

This section authorizes the Navajo Nation and Hopi Tribe, subject to Secretary of the Interior approval, to enter into leases, options to lease, exchanges, or options to exchange specified Colorado River waters (Navajo Nation Upper Basin Colorado River Water, Cibola Water, and Fourth Priority Water; Hopi Tribe Upper Basin Colorado River Water and Cibola Water) for use and storage in Arizona, in accordance with the settlement agreement and applicable laws. (1) On-reservation leases are subject to tribal leasing regulations and subsections (a) and (e) of the Long-Term Leasing Act (25 U.S.C. 415), which generally authorizes leases of restricted Indian lands for up to 25 years. (2) Off-reservation leases of Cibola Water and Navajo Nation Fourth Priority Water or Hopi Tribe Cibola Water are for terms up to 100 years; off-reservation leases of Upper Basin Colorado River Water are for terms up to 40 years (exceeding the general 25-year limit); exchanges are for terms as specified in the agreement. (3) Imposes no limitations on lease periods for specified waters diverted downstream of Lee Ferry or leased on-reservation; authorizes phased leasing of Upper Basin water in the Lower Basin, including up to 17,050 acre-feet per year (AFY) cumulatively in the first 20 years after the enforceability date (16,214.55 AFY for Navajo Nation; 835.45 AFY for Hopi Tribe), with adjustments and extensions tied to conservation deliveries and project completions.

This section directs the Secretary of the Interior, acting through the Bureau of Reclamation (Bureau), to plan, design, and construct the iiná bá – paa tuwaqat’si pipeline—a water conveyance project serving the Navajo Nation, Hopi Tribe, and San Juan Southern Paiute Tribe—substantially as Alternative 5, Option B-100 described in the Bureau's October 2020 report entitled “Navajo-Hopi Value Planning Study—Arizona,” including necessary power transmission facilities, substations, distribution systems, and wheeling services to connect to high-voltage transmission lines. (As background, the project supports tribal water supplies under related settlements such as the Navajo-Hopi Little Colorado River Water Rights Settlement Act of 2019.) It further requires (1) formation, prior to the feasibility study, of a Project Construction Committee comprising Bureau of Reclamation and Bureau of Indian Affairs representatives and selectees from the three tribes to review costs, enhance management, and reduce expenses; (2) Bureau completion of a post-enactment feasibility study with design, cost estimates, and construction phasing for the specified alternative; (3) post-feasibility consultation with the Navajo Nation and Hopi Tribe on a potential value planning study for lower-cost modifications substantially meeting the alternative's configuration, with consensus sought among tribes and Secretary (or Secretary decision if no consensus) on any preferred alternative; and (4) a value engineering study at the 30 percent design stage per Bureau policy. The Secretary must consult the Committee during design and construction phases and, at the Secretary's discretion, may adopt Committee recommendations consistent with the specified design, giving greater weight to Hopi Tribe representatives for pipeline portions transferring to Hopi title and to Navajo Nation representatives for portions transferring to Navajo title. The tribes may request design modifications prior to 60 percent design completion, subject to Bureau approval (and Bureau policy review if deviating from design criteria); no further modifications are permitted after 60 percent design review unless approved by the Secretary.

This section establishes the iiná bá – paa tuwaqat’si Pipeline Implementation Fund Account as a non-trust, interest-bearing account managed and distributed by the Secretary for carrying out the Act. The account receives deposits made available pursuant to section 13(a)(1) and may retain investment earnings, including interest on unexpended amounts, for use in carrying out section 8, including acquisition of power.

This section establishes the Navajo Nation Water Settlement Trust Fund, managed, invested, and distributed by the Secretary of the Interior consistent with the first section of the Act of June 24, 1938 (25 U.S.C. 162a, authorizing deposit and investment of tribal trust funds in banks), the American Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 4001 et seq.), and this section; appropriates investment earnings for authorized uses; and maintains the fund until expended, withdrawn, or reverted to the Treasury. The section further (1) directs the Secretary to create six accounts in the fund—Navajo Nation Water Projects Trust Fund Account, Navajo Nation OM&R Trust Fund Account, Navajo Nation Agricultural Conservation Trust Fund Account, Navajo Nation Renewable Energy Trust Fund Account, Navajo Nation Lower Basin Colorado River Water Acquisition Trust Fund Account, and Navajo Nation System Conservation Trust Fund Account—and deposit into each the amounts made available under section 13(b)(3)(A)(i)-(vi), respectively; (2) authorizes Navajo Nation withdrawals via an approved tribal management plan under the 1994 Act (requiring spending consistent with this Act) or an approved expenditure plan (detailing reasonable uses consistent with this Act); and (3) specifies uses limited to environmental compliance, planning, design, engineering, and construction of potable water delivery projects in designated Navajo communities (e.g., Leupp, Dilkon) for the Water Projects Account.

This section establishes the Hopi Tribe Water Settlement Trust Fund, managed, invested, and distributed by the Secretary of the Interior consistent with the first section of the Act of June 24, 1938 (25 U.S.C. 162a), the American Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 4001 et seq.), and this section, with amounts remaining available until expended, withdrawn, or reverted to the Treasury general fund. The section further directs the Secretary to create five accounts within the trust fund—(1) Hopi Tribe Groundwater Projects Trust Fund Account, (2) Hopi Tribe OM&R Trust Fund Account, (3) Hopi Tribe Agricultural Conservation Trust Fund Account, (4) Hopi Tribe Lower Basin Colorado River Water Acquisition Trust Fund Account, and (5) Hopi Tribe System Conservation Trust Fund Account—and deposit into each the respective amounts made available under section 13(b)(3)(B) subparagraphs (i) through (v), plus investment earnings authorized for appropriation. (As background, 25 U.S.C. 162a authorizes the Secretary to invest tribal trust funds in banks or obligations while requiring collateral or insurance.) The Hopi Tribe may withdraw funds via an approved tribal management plan under the American Indian Trust Fund Management Reform Act of 1994 (with added requirements to spend consistent with this Act) or an approved expenditure plan, subject to Secretary enforcement to ensure uses align with this Act; specified uses per account include (1) groundwater projects for environmental compliance, planning, design, and construction to deliver potable water to Hopi communities; (2) operations, maintenance, and replacement for those projects and the iiná bá – paa tuwaqat’si pipeline project; and (3) through (5) the remaining accounts as designated.

This section establishes the San Juan Southern Paiute Tribe Water Settlement Trust Fund, managed, invested, and distributed by the Secretary of the Interior consistent with the Act of June 24, 1938 (25 U.S.C. 162a), the American Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 4001 et seq.), and this section, with investment earnings available until expended for purposes of the Act. The fund includes three accounts—(1) San Juan Southern Paiute Tribe Groundwater Projects Trust Fund Account, (2) San Juan Southern Paiute Tribe Agricultural Conservation Trust Fund Account, and (3) San Juan Southern Paiute Tribe OM&R Trust Fund Account—into which the Secretary deposits amounts made available under section 13(b)(3)(C)(i), (iii), and (ii), respectively. The tribe may withdraw funds from any account upon Secretary approval of either (1) a tribal management plan under the 1994 Act requiring expenditures consistent with this Act or (2) an expenditure plan detailing uses consistent with this Act, subject in both cases to Secretary enforcement to ensure compliance; amounts are restricted to specified purposes including, for the groundwater projects account, designing and constructing water projects such as treatment facilities, pipelines, storage tanks, pumping stations, pressure-reducing valves, electrical transmission facilities, and related real property and easements.

This section provides mandatory appropriations from the Treasury of $1,715,000,000 for deposit in the iiná bá – paa tuwaqat’si Pipeline Implementation Fund Account to fund planning, engineering, design, environmental compliance, and construction of the pipeline, with funds generally unavailable until the Enforceability Date except for $250,000,000 available beforehand for environmental compliance and preliminary design (subject to settlement agreement revisions and execution). If the account is insufficient to complete the pipeline, the Navajo Nation and Hopi Tribe must provide supplemental funding from their Water Settlement Trust Funds. This section provides mandatory appropriations from the Treasury of $3,421,400,000 for deposit in the Navajo Nation Water Settlement Trust Fund ($2,876,416,400), Hopi Tribe Water Settlement Trust Fund ($515,183,600), and San Juan Southern Paiute Water Settlement Trust Fund ($29,800,000), with funds unavailable until the Enforceability Date and allocated as follows: (1) Navajo Nation: $2,369,200,000 to the Water Projects Trust Fund Account; $229,500,000 to the OM&R Trust Fund Account; $80,000,000 to the Agricultural Conservation Trust Fund Account; $40,000,000 to the Renewable Energy Trust Fund Account; $28,000,000 to the Lower Basin Colorado River Water Acquisition Trust Fund Account; and $129,716,400 to the System Conservation Trust Fund Account (all accounts available until expended, withdrawn, or reverted). (2) Hopi Tribe: $390,000,000 to the Groundwater Projects Trust Fund Account; $87,000,000 to the OM&R Trust Fund Account; $30,000,000 to the Agricultural Conservation Trust Fund Account; $1,500,000 to the Lower Basin Colorado River Water Acquisition Trust Fund Account; and $6,683,600 to the System Conservation Trust Fund Account (all accounts available until expended, withdrawn, or reverted). (3) San Juan Southern Paiute: $28,000,000 to the Groundwater Projects Trust Fund Account; $1,500,000 to the OM&R Trust Fund Account; and $300,000 to the Agricultural Conservation Trust Fund Account (all accounts available until expended, withdrawn, or reverted). This section reserves 50% of the Navajo Nation Water Settlement Trust Fund and 50% of the Hopi Tribe Water Settlement Trust Fund unavailable for withdrawal (except as specified) until completion of the pipeline's feasibility-level design and estimate, to supplement the Pipeline Implementation Fund Account if needed. (Thus, these trust funds support water infrastructure projects, operations and maintenance, conservation, renewable energy, and water acquisitions for the tribes' settled water rights claims on the Colorado River and other sources.)

This section authorizes the Navajo Nation, on behalf of itself and its members (excluding members as Navajo allottees), and the United States as trustee for them, to execute waivers and releases of all past, present, and future claims for water rights (including Colorado River water), injuries to water rights, and injuries to water on Navajo land or based on aboriginal occupancy against the State (or its agencies or subdivisions), the Hopi Tribe, Hopi allottees, San Juan Southern Paiute Tribe, and other persons or entities, effective on the enforceability date in the form specified in the settlement agreement (Exhibit 13.1). It further authorizes the United States, as trustee for Navajo allottees, to execute parallel waivers and releases of such claims against the State (or its agencies or subdivisions), the Navajo Nation, Hopi Tribe, Hopi allottees, San Juan Southern Paiute Tribe, and other persons or entities. Notwithstanding these waivers, both the Navajo Nation (and U.S. trustee for the Nation and members) and the U.S. trustee for allottees retain rights to (1) enforce the settlement agreement and this Act; (2) enforce rights under the Lower Colorado River (LCR) Decree and Gila River Adjudication Decree; (3) assert specified water rights in the LCR and Gila River Basins; (4) object to water rights claims by other Indian tribes (excluding Hopi, San Juan Southern Paiute, and Zuni Tribes) or the United States on their behalf; and (5) assert injury claims against such other tribes or the United States on their behalf.

This section provides that benefits under the Settlement Agreement fully replace, substitute for, and satisfy (1) all claims waived by the Navajo Nation on behalf of itself and its members (excluding as allottees) under specified exhibits and all water entitlements of the Navajo Nation, its members (excluding as allottees), and the United States as trustee for them on Navajo Land; (2) all claims waived by the United States as trustee for Navajo allottees under a specified exhibit, similar claims by Navajo allottees, and their water entitlements on Navajo Allotments; (3) all claims waived by the Hopi Tribe on behalf of itself and its members (excluding as allottees) under specified exhibits and all water entitlements of the Hopi Tribe, its members (excluding as allottees), and the United States as trustee for them on Hopi Land; (4) all claims waived by the United States as trustee for Hopi allottees under a specified exhibit, similar claims by Hopi allottees, and their water entitlements on Hopi Allotments; and (5) all claims waived by the San Juan Southern Paiute Tribe on behalf of itself and its members. It further provides that neither the Settlement Agreement nor this Act recognizes or establishes any right of a Navajo Nation or Hopi Tribe member (excluding as allottees) to water on Navajo or Hopi Land, respectively. (As background, such provisions are standard in congressional ratification of tribal water rights settlements, which quantify tribal water entitlements and resolve federal trust claims to prevent litigation.)

This section makes the Settlement Agreement, including specified waivers and releases of claims, fully enforceable upon the Secretary of the Interior's publication in the Federal Register of findings confirming nine conditions, including (1) revision of the agreement to eliminate conflicts with this Act and incorporation of executed water delivery contracts as exhibits; (2) execution of the revised agreement by the United States and at least 30 parties (specifically naming the Navajo Nation, Hopi Tribe, San Juan Southern Paiute Tribe, Arizona, Arizona State Land Department, Central Arizona Water Conservation District, Salt River Project Agricultural Improvement and Power District, and Salt River Valley Water Users’ Association); (3) execution of required exhibits, waivers, releases, a tribal water services agreement, and tribal resolutions waiving sovereign immunity under section 18; (4) deposit of $5,136,400,000 in designated accounts per section 13; and (5) court approval of the Lower Colorado River and Gila River adjudication decrees substantially as specified in the agreement exhibits. If the Secretary fails to publish such findings by June 30, 2035 (or a later date agreed by the tribes, Secretary, and Arizona), this Act is repealed; related actions, contracts, and agreements are voided; the United States may offset certain section 13 funds against tribal claims; and appropriated amounts (less section 9 expenditures) revert to the Treasury general fund. (Section 19—establishing and preserving the San Juan Southern Paiute Tribe's reservation—takes effect on enactment and remains in force notwithstanding such failure.)

This section establishes accounting rules for specified Colorado River water deliveries to the Navajo Nation and Hopi Tribe in Arizona, including Navajo Nation Cibola Water, Navajo Nation Fourth Priority Water, Hopi Tribe Cibola Water, Navajo Nation Upper Basin Colorado River Water, and Hopi Tribe Upper Basin Colorado River Water. It requires such deliveries—depending on water type and diversion point—to be accounted for as Arizona Upper Basin or Lower Basin Colorado River water and, in certain cases, credited as water passing Lee Ferry under article III(d) of the Colorado River Compact (1922); leased Upper Basin water diverted below Lee Ferry receives no such credit, while specified Lower Basin water diverted above Lee Ferry does. It further overrides prior law (section 10603(c)(2)(A) of the Northwestern New Mexico Rural Water Projects Act) to charge specified Lower Basin tribal waters against Arizona's 2.8 million acre-foot apportionment under paragraph II(B)(1) of the decree in Arizona v. California. Finally, it prohibits certain cross-basin deliveries or diversions until the Secretary of the Interior develops or modifies, in consultation with Arizona and other basin states, operational criteria for Colorado River reservoirs to account for and offset such uses, applicable only during those diversions.

This section establishes limited waivers of sovereign immunity for the Navajo Nation (and the United States acting as trustee for the Navajo Nation and Navajo Allottees), the Hopi Tribe (and the United States acting as trustee for the Hopi Tribe and Hopi Allottees), and the San Juan Southern Paiute Tribe (and the United States acting as trustee for the San Juan Southern Paiute Tribe), permitting them to be joined as parties in actions solely for interpreting or enforcing this Act, the Settlement Agreement, paragraph 13 of the Settlement Agreement, the LCR Decree, the Gila River Adjudication Decree (Navajo only), or section 14—brought by Settlement Agreement parties or by landowners or water users in the LCR Watershed (or Gila River Watershed for Navajo)—provided no claims for money damages, court costs, or attorney fees are included. Each tribe affirmatively consented to its waiver by council resolution in May 2024 (Navajo: CMY-26-24, May 24; Hopi: H-035-2024, May 20; San Juan Southern Paiute: 2024-040, May 23), notwithstanding contrary tribal law.

This section ratifies a treaty and addendum between the Navajo Nation and the San Juan Southern Paiute Tribe; authorizes and directs the Secretary of the Interior to execute and implement the treaty (except for specified non-binding findings), including any amendments agreed to by the parties without further congressional action; and proclaims approximately 5,400 acres of land within the Navajo Indian Reservation—described in the treaty as the San Juan Southern Paiute Northern Area and Southern Area—as the San Juan Southern Paiute Reservation, to be held in trust by the United States for the exclusive benefit of the tribe, subject to treaty-specified rights of access and easements for the Navajo Reservation. The section further (1) exempts the proclamation from any appraisal or valuation requirement; (2) disclaims any express or implied reservation of water rights for the Northern Area in Utah; (3) directs the Secretary to survey and legally describe the reservation boundaries, file and publish them in the Federal Register (with authority for minor corrections), mark and fence the lands where feasible per the treaty, and study feasibility of an access road to the Southern Area from U.S. Route 89; (4) repeals allotment procedures for the Paiute Tribe under section 9 of Public Law 93-531; and (5) requires Federal Register publication of notices upon completion or boundary marking of each area, after which the San Juan Southern Paiute Tribe assumes full jurisdiction over that area to the extent permitted by federal law, with the Navajo Nation having no jurisdiction except as agreed by the parties.

This section authorizes the Secretary of the Interior to treat, store, and convey up to 12,000 acre-feet per year (AFY) of Navajo Nation Upper Basin Colorado River water—designated as non-Project water and in addition to the previously authorized 6,411 AFY of Project water—for use in specified areas of New Mexico using Navajo-Gallup Water Supply Project (NGWSP) facilities, subject to protections for existing Project participants under the Northwestern New Mexico Rural Water Projects Act of 2009 (P.L. 111-11). (As background, the NGWSP delivers primarily San Juan River water to the Navajo Nation, City of Gallup, and other users in northwestern New Mexico.) It further (1) increases the NGWSP's authorized capacity by up to 12,000 AFY, with all construction and operation costs borne solely by the Navajo Nation; (2) requires agreement among the Navajo Nation, New Mexico, and the Secretary for any Project completion deadline extensions due to this use; (3) mandates Navajo Nation approval from the Bureau of Reclamation Commissioner for final designs and coordination of connection facilities; and (4) prohibits use of existing federal NGWSP funding for any related design, construction, operation, maintenance, or repair.

This section establishes savings provisions clarifying that the Act—(1) does not quantify or affect water rights of any Indian tribe, band, or community other than the Navajo Nation, Hopi Tribe, or San Juan Southern Paiute Tribe, or the United States' ability to act on behalf of such others; (2) does not quantify or adjudicate water rights of public domain allottees or, except as specified in the settlement agreement, affect the United States' ability to act as trustee for them; (3) includes an antideficiency provision limiting U.S. liability absent express congressional appropriations; (4) does not modify, conflict with, preempt, or affect specified Colorado River laws (i.e., Boulder Canyon Project Act, Colorado River Storage Project Act, Colorado River Basin Project Act), treaties, compacts, or related case law; (5) creates no precedent for Colorado River Upper-to-Lower Basin water transfers or quantification/settlement of other federal reserved or Indian water rights; (6) recognizes unique circumstances justifying diversions through the iiná bá–paa tuwaqat’si pipeline and Navajo-Gallup Water Supply Project facilities to meet tribal and non-Indian municipal needs in Arizona; and (7) declares such diversions efficient uses of Colorado River apportionments while preserving existing consumptive use rights under the Colorado River Compact, Upper Colorado River Basin Compact of 1948, and related decrees.