This bill, titled the Taos Pueblo Indian Water Rights Settlement Amendments Act of 2025, aims to facilitate the implementation of the existing Taos Pueblo Indian Water Rights Settlement Agreement. It achieves this by amending the original Act to establish new trust funds and provide substantial federal financial assistance for critical water infrastructure projects. The legislation introduces specific definitions, including for a Mitigation Well System designed to offset surface water depletion effects.

The Act establishes two new Pueblo Trust Funds within the U.S. Treasury: the Taos Pueblo Groundwater Development Supplemental Trust Fund and the Taos Pueblo Surface Water Sharing Supplemental Trust Fund. These funds are designated for the investigation, planning, design, construction, and operation of groundwater production and surface water sharing infrastructure, respectively. Both funds will receive mandatory appropriations and accrue interest, with their use subject to specific management and expenditure conditions.

The bill authorizes the Secretary of the Interior to provide supplemental financial assistance to Eligible Non-Pueblo Entities for Mutual-Benefit Projects, including water treatment. This funding, totaling $161,000,000 adjusted for construction costs, will be provided through grants or contracts. Strict deadlines are imposed for project expenditure and completion, with projects involving the Mitigation Well System having accelerated timelines.

To ensure project completion, the Commissioner of Reclamation can extend deadlines or reallocate funds from non-compliant entities. The Act also allows for funding of alternative or interim offset infrastructure if non-Pueblo entities fail to meet requirements for the Mitigation Well System, which can be developed by other entities or the Pueblo itself, with no non-Federal cost share for Pueblo-owned projects. In total, the bill mandates appropriations of $161,000,000 for Mutual-Benefit Projects, $190,000,000 for the Groundwater Development Supplemental Trust Fund, and $16,000,000 for the Surface Water Sharing Supplemental Trust Fund, all subject to cost adjustments. The Act clarifies that its implementation does not require amendments to the original Settlement Agreement or affect previously satisfied conditions precedent.