This bill, titled the "Yavapai-Apache Nation Water Rights Settlement Act of 2026," aims to fully and finally resolve all water rights claims, including damages, for the Yavapai-Apache Nation and the United States as trustee for the Nation, within Arizona's Verde River Watershed and the Colorado River. It formally ratifies and confirms the Yavapai-Apache Nation Water Rights Settlement Agreement, authorizing the Secretary of the Interior to execute its duties and obligations. A key purpose is to recognize and protect the significant cultural, traditional, and religious value of the Verde River to the Nation.

The legislation confirms the Nation's water rights, holding them in trust for the Yavapai-Apache Nation and protecting them from loss due to non-use, forfeiture, or abandonment. These rights include water from the Verde River, Central Arizona Project (CAP), and C.C. Cragin Dam and Reservoir. Off-reservation use of water is generally restricted, with specific exceptions for effluent, CAP water, and water subject to exchange in accordance with state law.

A central provision is the authorization for the Secretary to plan, design, and construct the Tu nl[[nichoh Water Infrastructure Project. This project comprises two main components: the Cragin-Verde Pipeline Project, which will deliver water from the C.C. Cragin Dam and Reservoir to the Nation and other beneficiaries in Yavapai County, and the YAN Drinking Water System Project, designed to treat and distribute this water within the Nation's lands. Title to the pipeline will be held by the United States, with the Salt River Project (SRP) responsible for operation and maintenance, while the drinking water system's title will transfer to the Nation upon completion, with the Nation assuming O&M responsibilities.

The bill mandates significant federal funding, appropriating over $1 billion for the project and related initiatives. This includes approximately $883 million for the Tu nl[[nichoh Water Infrastructure Project Fund, allocated to the Cragin-Verde Pipeline Account and the YAN Drinking Water System Account. Additionally, about $156 million is allocated to the Yavapai-Apache Nation Water Settlement Trust Fund, which is divided into five accounts: the Water Settlement Implementation Account, Water Projects Account, Wastewater Projects Account, OM&R Account, and Watershed Rehabilitation and Restoration Account, each designated for specific uses such as infrastructure development, operational costs, and environmental protection.

A critical aspect of the settlement involves waivers and releases of claims. The Yavapai-Apache Nation and the United States, acting as trustee, waive past, present, and future claims for water rights and injury to water rights against the State, other entities, and the United States, with specific retained claims. The United States also waives certain claims against the Nation. These waivers become effective on the Enforceability Date, which is contingent upon several conditions, including the full deposit of funds, state approvals of water rights transfers, court judgments, and a tribal resolution consenting to a limited waiver of sovereign immunity. Failure to meet these conditions by June 30, 2035, would generally lead to the repeal of the Act and reversion of unexpended funds.

The bill also addresses the Nation's access to YAN CAP Water, allowing for its delivery, use, storage, and temporary leasing or exchange within Arizona, but prohibiting permanent alienation or use outside the state. It specifies responsibilities for CAP fixed operation, maintenance, and replacement (OM&R) charges and pumping energy charges. Furthermore, the bill directs the Secretary to take specific lands into trust for the Yavapai-Apache Nation, expanding the Yavapai-Apache Reservation. It also amends existing law to make additional water from the C.C. Cragin Reservoir available for municipal and domestic uses in Yavapai County, and ensures the continued operation of a USGS gaging station on the Verde River to monitor the Nation's instream flow rights.