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June 25, 2020
Proposed Extension of the Reclamation Water Settlements Fund
Since 1978, the federal government has entered into 36
Direction and Structure for the
water rights settlements with individual Indian tribes. These
Reclamation Water Settlements Fund
Indian water rights settlements are a means of resolving
Title X of the Omnibus Public Land Management Act of
ongoing disputes related to Indian water rights among
2009 (P.L. 111-11) authorized mandatory s pending for
tribes, federal and state governments, and other parties
certain Indian water rights settlements. It also authorized
(e.g., water rights holders). Some settlements have been
discretionary funding for a number of settlements. The
approved by Congress in authorizing legislation that also
legislation created a new Treasury fund—the RWSF—and
provides funding for projects that allow tribes to access and
scheduled funds to be deposited and available in the fund
develop their water resources. (For more information on
beginning in FY2020. The act directs the Secretary of the
these settlements in general, see CRS Report R44148,
Treasury to deposit $120 million into the fund for each year
Indian Water Rights Settlements.)
from FY2020 to FY2029 (i.e., outside of the 10-year
scoring window), for a total of $1.2 billion. The funds are
Historically, federal funding for Indian water rights
directed from the revenues that otherwis e would be
settlements has been provided through discretionary
deposited into the Reclamation Fund and are made
appropriations. In recent years, however, Congress also has
available without any further appropriations. (For more
approved mandatory funding for some settlements.
information on the Reclamation Fund, see CRS In Focus
Congress created the Reclamation Water Settlements Fund
IF10042, The Reclamation Fund.)
(RWSF) in 2009 as a dedicated source of additional funding
for existing and future Indian water rights settlements. The
fund is administered by the Bureau of Reclamation
In P.L. 111-11, Congress directed the Secretary of the
(Reclamation, a water resources management agency within
Treasury to deposit $120 mil ion per year, from
the Department of the Interior) and is authorized to receive
FY2020 to FY2029, into the Reclamation Water
$120 million per year in mandatory funding from FY2020
Settlements Fund. The fund provides a dedicated
through FY2029.
source of funding to support certain Indian water
rights settlements.
Some Members of Congress have been interested both in
the annual allocation and prioritization of projects within
In P.L. 111-11, Congress directed that the RWSF may be
the RWSF and in proposals for its extension. However,
used to implement a water rights settlement agreement
none of the extensions proposed in the 115th and 116th
approved by Congress that resolves, in whole or in part,
Congresses have been enacted.
litigation involving the United States. Congress also stated
Background
that the fund may be used for other settlement agreements
where the implementing legislation requires Reclamation to
Congress generally has authorized mandatory funding (i.e.,
provide financial assistance for, or to plan, design, or
direct funding, without further congressional action
construct, a water project. The act assigned tiers of priority
required) for Indian water rights settlements in one of three
that provided certain individual settlements—both enacted
forms:
and not yet enacted—with priority access to these funds
(Table 1).
1. Mandatory funding for specific
individual settlements. Examples
If any of the priority settlements was not authorized by
include several individual settlements
December 31, 2019, the amounts reserved for that
authorized and funded in P.L. 111-291.
settlement were to revert to the fund and become eligible
2. Redirection of existing receipts. The
for other authorized uses. Additionally, if not all funding is
primary example is the Arizona Water
expended after the authorized priority settlements are fully
Rights Settlement Act (P.L. 108-451),
funded, and before the expiration of the fund itself, those
which redirected certain receipts within
appropriations could be used for other authorized Indian
the Lower Colorado River Basin
water rights settlements. Although the last appropriations to
Development Fund to Indian water rights
the RWSF are currently scheduled to be made in FY2029,
settlements.
the fund itself would not sunset until the end of FY2034, at
3. Mandatory funding through the
which time any unexpended balances would be transferred
RWSF. The RWSF is available to fund
back to the General Fund of the Treasury.
Indian water rights settlements with $120
million per year from FY2020 to FY2029.
The remainder of this report focuses on the RWSF.
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Table 1. Priority Tiers and Settlements for the Reclamation Water Settlements Fund (RWSF)
Maximum RWSF
Priority Tier
Settlement/Project Name (Enacting Legislation)
Funding Authorized
First
New Mexico Settlements:
Navajo-Gal up Water Supply Project/Navajo Nation Water Settlement (P.L.
$500 mil ion
111-11)
Aamodt Settlement (P.L. 111-291); Abeyta (Taos Pueblo) Settlement (P.L.
$250 mil ion
111-291)
Second
Montana Settlements:
Crow Settlement (P.L. 111-291); Blackfeet Settlement (P.L. 114-322); Gros
$350 mil ion
Ventre and Assiniboine Tribes of the Fort Belknap Reservation (not
enacted)a^
Arizona Settlements:
Navajo Nation Lower Colorado (not enacted)^
$100 mil ion
No Tier
Al other approved settlements
n/a
Source: Congressional Research Service, based on P.L. 111-11 and authorizing legislation referenced above.
a.
Since these settlements were not authorized by December 31, 2019, the amounts reserved for those settlements revert ed to the fund for
other authorized uses.
Status
noted that it planned to allocate $102 million of FY2021
RWSF funds for the Navajo-Gallup project and stated that
Five of the seven settlements that Congress designated as
remaining funding allocations would be announced in a
potentially eligible (pending authorization) to receive
work plan after appropriations are enacted.
priority RWSF funding were authorized prior to the
December 31, 2019, deadline and are thus expected to
Congressional Interest
receive some level of RWSF funds . Congress provided four
Congress has expressed interest in how the RWSF will be
of these settlements with additional mandatory
allocated in the coming years, as well as in a potential long-
appropriations (i.e., funding in addition to that provided in
term extension of the RWSF. In the 116th Congress, H.R.
P.L. 111-11) in 2012 (P.L. 111-291). The settlements
1904 and H.R. 2 both would extend the fund in perpetuity
receiving additional funding from P.L. 111-291 included
at the current funding level of $120 million per year,
the Navajo Nation/Navajo-Gallup Water Supply Project
beginning in FY2031 (i.e., appropriations would lapse in
($180 million); the Aamodt Settlement ($82 million); the
FY2030). S. 886, as reported in the Senate, would have
Taos Pueblo Settlement ($66 million); and the Crow
extended current mandatory appropriations to the fund for
Settlement ($302 million). Only one of these settlements
10 years beyond the current authorization (i.e.,
(Taos Pueblo) has been fully funded and is therefore not
appropriations from FY2030 to FY2039). S. 886 also would
expected to draw down its share of funding from the
have capped at $90 million the cumulative allocations from
RWSF. It is unclear to what extent mandatory
the fund for individual authorized settlements. This
appropriations (as well as any discretionary appropriations
extension was not included in the amended version of the
provided by Congress) for the other settlements will affect
bill passed by the Senate.
each settlement’s drawdown of the RWSF and its resulting
availability for use on other settlements.
Those in favor of extending the RWSF note that there are
significant additional needs expected for both authorized
The authorizing legislation for each RWSF-prioritized
and yet-to-be-approved Indian water rights settlements.
settlement includes a deadline by which the settlement must
They argue that assured funding for these settlements would
be fully appropriated. These dates may affect the timing of
allow associated projects to be completed in a timely
future RWSF allocations. For New Mexico settlements, the
manner and would meet a key federal responsibility to
Navajo-Gallup Project must be fully appropriated by a
tribes. Some argue that open-ended funding (i.e., no
deadline of December 2024 and the Aamodt Settlement
expiration) for the RWSF would not be a prudent use of
deadline is June 2024. For Montana settlements, the
taxpayer dollars, whereas others believe that discretionary
Blackfeet Settlement deadline is January 2025 and the
appropriations, rather than mandatory appropriations, are a
Crow Settlement deadline is June 2030.
more prudent way to fund approved settlements.
In February 2020, Reclamation formally announced the first
Charles V. Stern, Specialist in Natural Resources Policy
allocation of RWSF funding: $100 million for the Navajo-
Gallup Project and $20 million for the Blackfeet
IF11586
Settlement. In its FY2021 budget request, Reclamation
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Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
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