This legislation, known as the Rio San Jose and Rio Jemez Water Settlements Act of 2025, aims to achieve a fair, equitable, and final resolution of complex water rights claims for four New Mexico Pueblos: Acoma, Laguna, Jemez, and Zia. It specifically addresses claims within the Rio San Jose Stream System for Acoma and Laguna, and the Jemez River Stream System for Jemez and Zia, involving the Pueblos and the United States as trustee.

The bill authorizes, ratifies, and confirms two separate water rights settlement agreements, one for each pair of Pueblos, provided they are consistent with the Act. The Secretary of the Interior is directed to execute these agreements and undertake necessary actions for their implementation, while ensuring compliance with federal environmental laws like the National Environmental Policy Act and the Endangered Species Act.

A core provision establishes that the Pueblos' water rights will be held in trust by the United States and will not be subject to loss through non-use, forfeiture, or abandonment. The Pueblos are granted authority to allocate, distribute, and lease these water rights for use on and, with Secretarial approval, off Pueblo Land, though permanent alienation is prohibited.

To facilitate the settlements, the bill mandates the establishment of several trust funds: the Pueblo of Acoma Settlement Trust Fund, the Pueblo of Laguna Settlement Trust Fund, the Acomita Reservoir Works Trust Fund, the Pueblo of Jemez Settlement Trust Fund, and the Pueblo of Zia Settlement Trust Fund. These funds will be managed by the Secretary of the Interior and are designated for critical purposes such as acquiring water rights, developing and maintaining water infrastructure, conducting feasibility studies, and supporting water-related economic development.

The legislation allocates significant federal funding, totaling approximately $1.34 billion, to these trust funds, subject to adjustments for construction cost fluctuations. Additionally, the State of New Mexico is required to contribute over $40 million towards various projects and groundwater mitigation efforts as part of the settlement. The enforceability of the settlements is contingent upon several conditions, including the full appropriation of funds, state legislative actions, court approval of the agreements, and the execution of mutual waivers.

In consideration of the recognized water rights and financial benefits, the Pueblos and the United States agree to waive and release specific past claims related to water rights and damages within the respective stream systems. However, certain rights and claims are explicitly reserved, including those concerning environmental quality, future water rights acquisitions, and the enforcement of the newly recognized water rights. The bill clarifies that it does not waive the sovereign immunity of the United States or adversely affect the rights of other Indian Tribes or individual allottees.

The United States also consents to State court jurisdiction for judicial review of Pueblo Water Right Permit decisions under specific conditions, ensuring transparency and accountability. If the settlements do not become enforceable by July 1, 2030 (or an agreed-upon alternative date), the waivers and releases will expire, and unexpended federal funds will revert to the Treasury, with the U.S. retaining the right to offset expended funds against future claims.