This bill, titled the "Land and Water Conservation Fund Water Amendments Act of 2025," significantly expands the permissible uses of financial assistance provided to states under the Land and Water Conservation Fund (LWCF) . It amends Title 54, United States Code, to authorize the Secretary of the Interior to make these funds available for water quality improvement projects in addition to their traditional use for outdoor recreation. States will now be required to identify impaired bodies of water and proposed water quality projects within their comprehensive statewide outdoor recreation plans. A "water quality project" is defined as any project identified in a state water quality control plan aimed at restoring a body of water identified as impaired under the Federal Water Pollution Control Act. Financial assistance for these projects is specifically limited to those that improve water quality by enhancing, restoring, remediating, or developing natural hydrological systems , such as wetlands, marshes, or living shorelines. The Secretary must consult with the Administrator of the Environmental Protection Agency, and funds cannot be used for already completed or fully funded projects, nor do they expand federal authority over nonnavigable waters.