US SB565

Settles water rights claims of the Navajo Nation in the Rio San José Stream System in New Mexico, resolving litigation pending in the Thirteenth Judicial District Court since 1983

Establishes the Navajo Nation Rio San José Settlement Trust Fund with $200,271,000 for water rights settlement and $23,000,000 for operations and maintenance, adjusted for inflation from October 1, 2021

Requires New Mexico to contribute $3,000,000 to local irrigation districts and enact legislation allowing Navajo water rights leases up to 99 years

Authorizes the Navajo Nation to allocate, distribute, and lease its water rights on and off tribal lands, with off-reservation leases requiring Secretary of Interior approval

Requires the Navajo Nation to waive and release all water rights claims against the United States and other parties in the Rio San José Stream System in exchange for the settlement benefits, with the Act expiring if conditions are not met by July 1, 2030