Protecting Indian Water Rights Settlements Act of 2026
- Sponsor
- Sen. Luján, Ben Ray [D-NM]
- Committees
- Finance Committee (primary)
- Last action
- Jun 10, 2026
Bottom line
The bill provides dedicated, mandatory funding for Indian water rights settlements through new subaccounts, financed by an extension of customs user fees.
What it actually does
This bill establishes two new subaccounts within the Indian Water Rights Settlement Completion Fund under the Infrastructure Investment and Jobs Act. It mandates annual deposits of $45 million for operations, maintenance, and ongoing obligations for specific existing settlements and $250 million for new and continuing settlements, both for ten years starting in fiscal year 2027. To offset these expenditures, the bill extends the collection of customs user fees by nearly four years, from December 31, 2031, to September 30, 2035.
Proponents argue
Supporters argue this bill provides critical, long-term, and reliable funding to fulfill federal trust responsibilities to Indian Tribes regarding water rights, ensuring the completion and ongoing maintenance of vital water infrastructure and settlement obligations. They highlight the importance of resolving these long-standing disputes and ensuring water security for tribal communities, which often face significant challenges in accessing and managing water resources.
Opponents contend
Potential opponents might argue against the use of mandatory spending for these purposes, preferring the annual appropriations process for greater congressional oversight and flexibility in federal budgeting. They might also raise concerns about extending customs user fees, potentially viewing it as a tax increase on importers and consumers, or an inappropriate funding mechanism for these specific programs, which could have broader economic impacts.
The bill is short and relatively straightforward, allowing for a quick and comprehensive understanding by an informed reader.
Section 2(a), new subsection (e) of 25 U.S.C. 149
Establishment of Operations, Maintenance, Repair, and Ongoing Obligations Subaccount
This provision establishes a new subaccount within the Indian Water Rights Settlement Completion Fund. It mandates annual deposits of $45,000,000 from the Treasury, starting October 1, 2026, through October 1, 2035. These funds are made available to the Secretary of the Interior, without further appropriation, to cover the operations, maintenance, repair, and related ongoing obligations for specific, already-settled Indian water rights, including those of the Ak-Chin Indian Community, Colorado Ute Indian Water Rights Settlement, Northwestern New Mexico Rural Water Projects Act, Snake River Water Rights Act of 2004, and the Hualapai Tribe Water Rights Settlement Act of 2022.
Supporters argue
Proponents argue that this dedicated funding stream is essential to ensure the long-term viability of water infrastructure developed under existing settlements and to prevent the degradation of these vital assets due to insufficient or unpredictable annual appropriations. They contend it fulfills a critical federal trust responsibility.
Critics contend
Opponents might argue that mandatory spending reduces congressional oversight and flexibility, preferring that these funds be subject to the annual appropriations process to allow for regular review and prioritization based on current needs.
Tradeoffs
The provision balances the need for predictable, long-term funding for critical infrastructure maintenance against concerns about reducing annual congressional budgetary control over specific federal expenditures.
Section 2(a), new subsection (f) of 25 U.S.C. 149
Establishment of New and Continuing Settlements Subaccount
This provision establishes a second new subaccount within the Indian Water Rights Settlement Completion Fund. It mandates annual deposits of $250,000,000 from the Treasury, starting October 1, 2026, through October 1, 2035. These funds are available to the Secretary of the Interior, without further appropriation, for transfers to satisfy the obligations of the United States under any Indian water rights settlement approved by an Act of Congress. The Secretary is granted discretion to determine the sequence and timing of these transfers to complete eligible settlements as expeditiously as practicable.
Section 3
Extension of Customs User Fees
This provision amends existing law (Section 13031(j)(3) of the Consolidated Omnibus Budget Reconciliation Act of 1985) to extend the authority for collecting customs user fees. Specifically, it changes the expiration date for these fees from December 31, 2031, to September 30, 2035. This extension ensures that the revenue generated by these fees continues for an additional three years and nine months, providing a funding offset for the new mandatory spending established by the bill.
This conforming amendment modifies the White Mountain Apache Tribe Water Rights Quantification Act of 2010. It strikes a paragraph that previously allowed funds to be made available from the Reclamation Water Settlements Fund and inserts a new paragraph explicitly prohibiting funds made available under a specific part of that act from coming from the Reclamation Water Settlements Fund.
Section 2(b)
Why it matters:This is standard legislative practice to ensure consistency and clarify funding sources when new mechanisms are introduced. It prevents potential conflicts or double-counting with older, potentially depleted funds.
Case for: Supporters would argue that this amendment is necessary to streamline funding mechanisms and ensure that the new subaccounts established by the bill are the primary and intended source of funds for relevant obligations, avoiding confusion and potential depletion of other funds.
Case against: No specific opposition is typically raised against such technical conforming amendments, as they are generally seen as administrative clean-up rather than substantive policy changes.
Estimated impact: Clarifies the funding source for specific water rights obligations, ensuring reliance on the new, dedicated subaccounts rather than an older fund.