Arizona tribe trades water rights claims for federal pipeline and $155M trust fund

What it does

This bill approves a water rights settlement for the Yavapai-Apache Nation in Arizona, confirming their water rights and authorizing construction of two major water infrastructure projects: the Cragin-Verde Pipeline (delivering ~6,837 acre-feet of water annually from C.C. Cragin Dam) and a Yavapai-Apache Nation Drinking Water System. The federal government will fund and construct these projects (~$883.5 million), then transfer the drinking water system to the Nation. The Nation receives a trust fund (~$155.7 million) for water projects, wastewater infrastructure, operations, and watershed restoration, but must waive most historical water rights claims against Arizona, other entities, and the federal government in exchange.

Why we flagged it

The bill's core function is to settle a tribal water rights dispute through federal recognition of water entitlements, construction of water delivery infrastructure, and establishment of a trust fund for tribal water management. This is a settlement agreement codified into law, not a general appropriations or regulatory measure.

What the text implies

• The waiver of claims is extremely broad—covering 'time immemorial' and 'forever'—and includes claims for cultural, hunting, and fishing rights tied to water loss, effectively closing off future litigation on these grounds despite narrow carve-outs for specific well types and municipal uses.
• The bill exempts the settlement agreement execution from National Environmental Policy Act (NEPA) review, bypassing standard environmental assessment requirements that would normally apply to major federal water projects.
• Salt River Project (SRP) assumes operation and maintenance of the Cragin-Verde Pipeline after completion but bears no construction costs; the Nation and other beneficiaries pay pro-rata O&M costs, creating a long-term cost burden on the Nation for infrastructure it does not own.
• The Secretary retains broad discretion to approve or deny tribal management plans and expenditure plans from the trust fund, with limited judicial review available only under the Administrative Procedure Act, potentially constraining tribal autonomy.
• Provisions allowing municipal water providers to drill new wells under specific conditions (WaterSense fixtures, drought-tolerant landscaping) may enable continued groundwater extraction that competes with the Nation's surface water rights, particularly in the Verde River Watershed.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

The Yavapai-Apache Nation gains confirmed, quantified water rights, federally funded infrastructure, and a substantial trust fund for long-term water management and community development. While the settlement requires waiving broad historical claims, the concrete water entitlements, infrastructure, and financial resources represent a significant net gain for tribal members and their water security.

Who stands to gain

• Yavapai-Apache Nation (water rights, infrastructure, trust fund)
• Salt River Project (operation of pipeline, no construction cost)
• construction contractors (pipeline and drinking water system projects)
• water infrastructure engineering firms

Named in the bill

Yavapai-Apache Nation, U.S. Department of Interior, Bureau of Reclamation, Salt River Project (SRP), Salt River Valley Water Users' Association, Arizona Department of Water Resources, U.S. Geological Survey (USGS), C.C. Cragin Dam and Reservoir, Verde River, Gila River Adjudication Court, Water Infrastructure and Finance Authority of Arizona

Where it stands

1 cosponsor: 1 Democrats.

• Jan 13, 2026 — Introduced · Congress.gov: “Introduced in Senate”
• Jan 13, 2026 — Referred to Senate Committee on Indian Affairs · Congress.gov: “Read twice and referred to the Committee on Indian Affairs”
• Jul 29, 2026 — Hearing held · Congress.gov: “Committee on Indian Affairs. Hearings held”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

1 lobbying clients named this bill on 1 disclosure filings across 1 quarter, Jun 2026 to Jun 2026. Those filings disclosed $60,000 in lobbying spend. A filing names 2 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 0% of bills with at least one filing.

Mark Kelly, the sponsor, reported $48,750 in PAC receipts in the 2026 cycle.

• Yavapai-apache Nation — $60,000 on 1 filing

Lobbying Disclosure Act filings through Jul 13, 2026. A filing shows who paid to lobby on a bill it names, not what changed.