S. 640: Technical Corrections to the Northwestern New Mexico Rural Water Projects Act, Taos Pueblo Indian Water Rights Settlement Act, and Aamodt Litigation Settlement Act

Introduced Feb 19, 20251 cosponsors

Sponsor

Ben Luján

Ben Luján

Democrat · NM

Bill Progress

IntroducedFeb 19
Committee 
Pass SenateDec 11
Pass House 
Signed 
Law 

Latest Action · Dec 15, 2025

1/2

Passed the Senate, received in House

New Mexico tribes are owed years of missed water-fund interest

3 min readLast updated June 17, 2026

Why it matters

When Congress set up three tribal water settlement funds in 2009 and 2010, the laws never let the money earn interest. S. 640 authorizes about $18.5 million to make up that gap for the Navajo Nation, Taos Pueblo, and the Aamodt-settlement pueblos.

S. 640 is a narrow cleanup bill, not a new water settlement. It patches two older laws so three tribal water trust funds in New Mexico can finally receive the interest they were never set up to earn.

Here's what went wrong. When the Navajo, Taos Pueblo, and Aamodt water settlements were funded in 2009 and 2010, the laws that created the trust funds didn't allow the deposited money to accrue interest. The bill's sponsors say that left the tribes short. S. 640 authorizes a one-time "adjusted interest" deposit into each fund to cover the difference.

S. 640 Bill Summary

What S. 640 actually does.

1

Navajo fund gets its missed interest

Authorizes $6,357,674.46 for deposit into the Navajo Nation Water Resources Development Trust Fund as an adjusted interest payment, and excludes that deposit from an existing deposit cap.

2

Taos Pueblo fund gets its missed interest

Authorizes $7,794,297.52 for deposit into the Taos Pueblo Water Development Fund, on top of the amounts the original settlement already provided.

3

Aamodt pueblos' fund gets its missed interest

Authorizes $4,314,709.18 for the Aamodt Settlement Pueblos' Fund, earmarked for the pueblos' share of operating, maintaining, and replacing their water facilities and regional system.

4

Treasury waives certain Aamodt repayments

Directs the Treasury Secretary to waive money the pueblos might otherwise owe the United States on interest earned before September 15, 2017.

5

The old settlements stay closed

States that nothing in the bill reopens the earlier federal findings that the Taos and Aamodt settlement conditions had already been satisfied.

6

Future interest can be appropriated too

Authorizes appropriation of any investment earnings, including interest, credited to the covered trust funds going forward.

Who benefits from S. 640?

The Navajo Nation

Stands to gain roughly $6.36 million in adjusted interest for its water resources trust fund, money tied to a settlement that has shaped water development across the Nation.

Taos Pueblo

Would receive about $7.79 million, the largest of the three deposits, strengthening the fund behind its water rights settlement.

The Aamodt Settlement Pueblos

Tesuque, Nambé, Pojoaque, and San Ildefonso would split about $4.31 million for water system operations and maintenance, plus a waiver on certain repayments to the federal government.

Households on tribal and regional water systems

People served by these settlement-funded water projects benefit when the funds behind operations, maintenance, and long-term replacement are made whole.

Who is affected by S. 640?

The Department of the Interior

Would oversee the deposits into the three tribal funds and implement the corrected funding structure.

The Department of the Treasury

Would process the authorized deposits and carry out the waiver of certain Aamodt-related payments.

Congressional appropriators

Would decide whether and when to actually fund the roughly $18.47 million the bill authorizes.

Federal taxpayers

Cover the added spending, which the bill frames as correcting interest the funds should have earned under the original settlements.

Cost & Funding

Authorization

$18,466,681.16 total in authorized adjusted interest payments

  • $6,357,674.46 for the Navajo Nation Water Resources Development Trust Fund
  • $7,794,297.52 for the Taos Pueblo Water Development Fund
  • $4,314,709.18 for the Aamodt Settlement Pueblos' Fund
  • These are authorizations, not automatic spending — appropriators still have to fund them
  • Any investment earnings credited to the covered trust funds are also authorized to be appropriated
  • Treasury would waive certain Aamodt-related payments owed on interest earned before September 15, 2017
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On the Record

What Congress Is Saying

S. 640 has come up 5 times in the Congressional Record so far.

S. 640 also appeared in 1 more Senate floor reference and 2 routine cosponsor filings.

S640 Legislative Journey

5 actions

House: Action Taken

Dec 15, 2025

Held at the desk.

Passed 8692-8693

Dec 11, 2025

8692-8693

Passed Senate with an amendment by Unanimous Consent. (text: CR S8692-8693)

+2 more actions this day

Committee Action

Nov 4, 2025

119-95

Committee on Indian Affairs. Reported by Senator Murkowski without amendment. With written report No. 119-95.

Passed Committee

Mar 5, 2025

Committee on Indian Affairs. Ordered to be reported without amendment favorably.

Committee Action

Feb 19, 2025

Read twice and referred to the Committee on Indian Affairs.

About the Sponsor

Ben Luján

Ben Luján

Democrat, NM · 17 years in Congress

Committees: United States Senate Caucus on International Narcotics Control, Indian Affairs, Agriculture, Nutrition, and Forestry

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Cosponsors (1)

This bill has 1 cosponsor: 1 Democrat. Cosponsors represent 1 state: New Mexico.

1Democrat·1 state

Committee Sponsors

Indian Affairs Committee

5D6R
|0 signed11 not yet

0 of 11 committee members cosponsored

No committee members have cosponsored this bill

5 Democrats across this committee haven't cosponsored yet. Mobilize their constituents

S. 640 Quick Facts

Cosponsors
1
Martin Heinrich
Committee
Indian Affairs
Chamber
Senate
Policy
Native Americans
Introduced
Feb 19, 2025

Passed the Senate, received in House

Dec 15, 2025

Constituent Resources

Get notified when this bill moves

Official Sources

S. 640 on Congress.gov

Official bill page with full text, actions, and the Senate Indian Affairs Committee report.

CBO Cost Estimate for S. 640

Congressional Budget Office score for the bill's roughly $18.5 million in authorized adjusted-interest payments.

Bureau of Indian Affairs: Indian Water Rights Settlements

BIA overview of how enacted tribal water settlements, including the Navajo, Taos Pueblo, and Aamodt agreements, are structured and funded.

Senate Committee on Indian Affairs

Committee that reported S. 640 (Report 119-95); announcement of the markup advancing the bill to the full Senate.

Omnibus Public Land Management Act of 2009 (P.L. 111-11)

The 2009 law that created the Navajo Nation Water Resources Development Trust Fund, which Section 2 of S. 640 amends.

Claims Resolution Act of 2010 (P.L. 111-291)

The 2010 law that established the Taos Pueblo and Aamodt settlement funds, which Sections 3-5 of S. 640 amend.

Who is lobbying on S. 640?

2 organizations lobbying on this bill

Total filings: 12
PUEBLO OF TAOS
7
NAVAJO NATION
5

Showing 1-2 of 2 organizations

S. 640 Common Questions

What does S. 640 actually do?

It authorizes about $18.5 million in "adjusted interest" for three New Mexico tribal water settlement funds. The original settlement laws never let those funds earn interest, and the bill goes back to make up the difference.

Why didn't these tribal water funds earn interest in the first place?

When the funds were set up in 2009 and 2010 under the Navajo, Taos Pueblo, and Aamodt water settlements, the laws that created them didn't authorize the deposited money to accrue interest. The bill's sponsors say that left the tribes short.

How much does each fund get under S. 640?

The Navajo Nation Water Resources Development Trust Fund gets $6,357,674.46, the Taos Pueblo Water Development Fund gets $7,794,297.52, and the Aamodt Settlement Pueblos' Fund gets $4,314,709.18 — about $18.47 million in all.

What can the Aamodt pueblos spend their money on?

Their $4.31 million is earmarked for the pueblos' share of operating, maintaining, and replacing the Pueblo Water Facilities and the Regional Water System built under the settlement.

Does S. 640 forgive money the Aamodt pueblos owed the government?

Yes. The bill directs the Treasury Secretary to waive certain money that might otherwise be owed back to the United States on interest earned before September 15, 2017.

Does S. 640 reopen the old tribal water settlements?

No. The bill states that nothing in it disturbs the earlier federal findings that the Taos Pueblo and Aamodt settlement conditions had already been satisfied. It's a financial fix, not a reopening of water rights.

Is the money guaranteed once S. 640 passes?

Not automatically. The bill authorizes the deposits, but appropriators still have to fund them in a future spending bill before the money actually lands in the trust funds.

Has S. 640 become law?

Not yet. The Senate passed it by unanimous consent on December 11, 2025, and it's now held at the desk in the House. It still needs a House vote and the President's signature.

Based on S. 640 bill text

S. 640 Bill Text

PDF

To amend the Omnibus Public Land Management Act of 2009 to make a technical correction to the Navajo Nation Water Resources Development Trust Fund, to amend the Claims Resolution Act of 2010 to make technical corrections to the Taos Pueblo Water Development Fund and Aamodt Settlement Pueblos’ Fund, and for other purposes.

Source: U.S. Government Publishing Office

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