S 564 · 119th Congress

Zuni Indian Tribe Water Rights Settlement Act of 2025

Native American water rightsZuni Tribewater rights settlementpublic landsNew Mexico
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Last action 2026-06-04

Sponsored by Sen. Heinrich, Martin [D-NM] (D) — NM

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The bill would ratify a water rights settlement between the Zuni Tribe, New Mexico, and other parties, quantifying the tribe's water rights in the Zuni River Stream System and providing about $685 million to a new trust fund for water infrastructure and tribal water rights administration.

It would also withdraw roughly 92,000 acres of federal land from mining and mineral leasing to protect the Zuni Salt Lake and Sanctuary, and require that surrounding lands be taken into trust for the tribe, resolving decades of water litigation while permanently protecting a culturally significant site.

What this bill would do

What it would do

The bill would authorize, ratify, and confirm a 2023 settlement agreement resolving the Zuni Tribe's water rights claims in the Zuni River Stream System in New Mexico. It would quantify the tribe's water rights, establish a Zuni Tribe Settlement Trust Fund with two accounts, and require the Treasury to transfer about $655.5 million and $29.5 million into those accounts for water infrastructure, operation and maintenance, and tribal water administration. It would also require the tribe and the United States to waive related water rights claims once an "Enforceability Date" is reached, contingent on funding, court approval, and New Mexico enacting conforming leasing legislation. Separately, the bill would withdraw about 92,364 acres of federal land from mining, mineral leasing, and public land disposal to protect the Zuni Salt Lake and Sanctuary's cultural and water resources, direct the Bureau of Land Management to manage that land with specific use restrictions, and require the Interior Department to take certain surrounding land into trust for the tribe. It would not affect the water rights of other tribes or of individual Indian allottees, and the settlement's waivers would expire if funding or other conditions are not met by July 1, 2030.

Key provisions

  1. 1Would authorize, ratify, and confirm the Zuni water rights settlement agreement and direct the Secretary of the Interior to execute itSec. 103
  2. 2Would quantify the tribe's water rights in the Zuni River Stream System and place them in trust, protected from forfeiture through non-useSec. 104
  3. 3Would establish the Zuni Tribe Settlement Trust Fund with a water rights account and an operation/maintenance accountSec. 105
  4. 4Would require mandatory Treasury transfers of $655,500,000 and $29,500,000 into the trust fund accounts, subject to cost adjustmentsSec. 106
  5. 5Would require the tribe and United States to waive and release related water rights claims once an enforceability date is reachedSec. 107
  6. 6Would withdraw about 92,364 acres of federal land from mining and mineral leasing to protect the Zuni Salt Lake and SanctuarySec. 202
  7. 7Would require the Interior Department to take specified surrounding land into trust for the tribe on the enforceability dateSec. 204

Who would be affected

The Zuni Tribe and its members, the U.S. District Court for the District of New Mexico overseeing the related water adjudication, the State of New Mexico, non-Indian water users in the Zuni River Stream System, individual Indian allottees holding land parcels within or near Zuni lands, and the Bureau of Land Management, which would manage the withdrawn federal land.

Why it matters

If enacted, the tribe would gain legally secure, non-forfeitable water rights and hundreds of millions of dollars for wells, irrigation, and water infrastructure, while giving up broader water claims against the United States and other parties. Mining and development would be permanently barred on tens of thousands of acres around the Zuni Salt Lake, and nearby land would pass into tribal trust ownership.

What would change

Changes to existing law

Creates Settlement Agreement to Quantify and Protect the Water Rights of the Zuni Indian Tribe (2023) (Sec. 103)

Congressionally ratifies and confirms this settlement agreement as binding federal law, with the Secretary authorized to execute it

Amends American Indian Trust Fund Management Reform Act of 1994 (Sec. 105)

Applied to govern how the tribe may withdraw and manage funds from the new Zuni Tribe Settlement Trust Fund

Agencies directed to act

Department of the InteriorBureau of Land ManagementBureau of Indian AffairsDepartment of the Treasury

Effective dates

  • Withdrawal of the 92,364 acres of federal land from mining and mineral leasingSec. 202Upon enactment
  • Waivers and releases of water rights claims, and transfer of land into trust for the tribeSec. 109Enforceability Date (upon Secretary's Federal Register findings)
  • Deadline for the Secretary to publish enforceability findings before the title expiresSec. 107(g)2030-07-01

Funding and costs

  • $655,500,000

    Deposit into the Zuni Tribe Water Rights Settlement Trust Account for water infrastructure and related usesSec. 106(a)(1)

  • $29,500,000

    Deposit into the Zuni Tribe Operation, Maintenance, & Replacement Trust AccountSec. 106(a)(2)

  • $50,000,000

    Immediate tribal use for water planning, wells, environmental compliance, and irrigation repairs upon depositSec. 105(e)(2)

  • $750,000

    New Mexico's contribution for developing and executing monitoring plans under the settlementSec. 106(c)(1)

  • $500,000

    New Mexico's contribution to mitigate impacts to non-Indian groundwater rights from new tribal water useSec. 106(c)(2)

Congressional Budget Office estimate

CBO estimates S. 564 would increase the federal deficit by $944 million over the 2026–2036 period, primarily by appropriating funds into a settlement trust fund for the Zuni Indian Tribe of New Mexico.

CBO estimates that enacting S. 564 would increase direct spending (mandatory outlays) by $944 million over the 2026–2036 period, with no effect on revenues, resulting in a net increase to the deficit of $944 million. The main cost drivers are an $824 million appropriation to capitalize the Zuni Tribe Settlement Trust Fund (including an inflation adjustment) and approximately $120 million in interest credited to the fund before its ownership is transferred to the tribe, expected around 2030. Spending subject to appropriation (discretionary funding) would increase by less than $1 million per year, totaling about $1 million over 2026–2031, for agency oversight and land transfer costs. CBO identified no intergovernmental or private-sector mandates as defined under the Unfunded Mandates Reform Act.

View the full CBO cost estimate

How implementation would work

Implementation hinges on an "Enforceability Date" that the Secretary of the Interior declares by Federal Register notice once all conditions are met: full federal appropriation and deposit of settlement funds, court approval of a Partial Final Judgment and Decree, execution of waivers by the tribe and Secretary, New Mexico's cost-share payments, and state legislation allowing 99-year water leases. Until then, most provisions remain inactive, and the whole title expires if the Secretary has not made these findings by July 1, 2030. The tribe would submit management or expenditure plans to the Secretary to withdraw and spend trust fund money, file annual expenditure reports, and the Bureau of Land Management would manage withdrawn lands in consultation with the tribe under specified use restrictions.

Legislative status & sources

Latest action

Placed on Senate Legislative Calendar under General Orders. Calendar No. 429.

2026-06-04

Official CRS summary

Show the CRS summary

This bill recognizes and settles certain water rights claims in New Mexico of the pueblo of Zuni and establishes and provides funding for a related settlement trust fund. It also requires federal actions related to the Zuni Salt Lake in New Mexico.

Specifically, the bill authorizes, ratifies, and confirms a specified water rights settlement agreement entered into by Zuni, New Mexico, and others, thus satisfying claims to water rights in the Zuni River Stream System in New Mexico.

The bill establishes and provides funding for the Zuni Tribe Settlement Trust Fund (and specified accounts) for purposes of carrying out this bill.

Additionally, the bill (1) specifies the water rights of the pueblo; and (2) outlines waivers, releases, and retentions of claims by the pueblo and the United States.

The bill also withdraws certain federal land in New Mexico from mineral development. The bill reserves this federal land for the following three purposes: (1) the protection of the Zuni Salt Lake and Sanctuary, (2) the protection of the quality and quantity of the Zuni Salt Lake's water supply, and (3) the protection of any cultural resources associated with the Zuni Salt Lake and Sanctuary. The Bureau of Land Management must manage this land.

The Department of the Interior must take certain land surrounding the Zuni Salt Lake into trust for the benefit of Zuni.

From the Congressional Research Service.

Legislative subjects

Federal-Indian relations; Geography and mapping; Government information and archives; Government trust funds; Indian claims; Indian lands and resources rights; Lakes and rivers; Land transfers; Land use and conservation; Native Americans; New Mexico; Water use and supply

Committee report

S. Rept. 119-125

Congressional Bill

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S 564: Zuni Indian Tribe Water Rights Settlement Act of 2025 | Legislation Reporter