Funding

Section 509 of the Taos Pueblo Indian Water Rights Settlement Act (Public Law 111–291; 124 Stat. 3128) is amended by adding at the end the following: (k) Supplemental funding for mutual-Benefit projects (1) Mandatory appropriation Out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary to award funding pursuant to section 507(c) $161,000,000, as adjusted pursuant to paragraph (2). (2) Fluctuation in costs (A) In general The amount under paragraph (1) shall be adjusted by such amounts as may be justified— (i) by reason of changes since July 2025 in construction costs, as indicated by the Bureau of Reclamation Construction Cost Index-Composite Trend; and (ii) to address construction cost changes necessary to account for unforeseen market volatility that may not otherwise be captured by engineering cost indices applicable to the types of construction involved, as determined by the Secretary, including repricing applicable to the types of construction and current industry standards involved. (B) Repetition The adjustment process under this paragraph shall be repeated for each subsequent amount appropriated until the amount authorized, as adjusted, has been appropriated. (C) Period of indexing The period of indexing adjustment under this paragraph for any increment of funding shall end on the date on which the relevant funding is awarded, but in no event shall funds be indexed later than 10 years after the date of enactment of the Taos Pueblo Indian Water Rights Settlement Amendments Act of 2025. (3) Deposit in Fund The Secretary shall deposit the funds made available pursuant to paragraph (1) in a noninterest-bearing fund, to be known as the Taos Settlement Mutual-Benefit Projects Supplemental Fund, to be established in the Treasury of the United States so that such funds may be made available to carry out section 507(c). (l) Taos pueblo groundwater development supplemental trust fund (1) Mandatory appropriation Out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary for deposit in the Taos Pueblo Groundwater Development Supplemental Trust Fund established by section 505(h) (referred to in this subsection as the Groundwater Development Supplemental Trust Fund) $190,000,000, as adjusted pursuant to paragraph (2). (2) Fluctuation in costs (A) In general The amount under paragraph (1) shall be adjusted by such amounts as may be justified— (i) by reason of changes since July 2025 in construction costs, as indicated by the Bureau of Reclamation Construction Cost Index-Composite Trend; and (ii) to address construction cost changes necessary to account for unforeseen market volatility that may not otherwise be captured by engineering cost indices applicable to the types of construction involved, as determined by the Secretary, including repricing applicable to the types of construction and current industry standards involved. (B) Repetition The adjustment process under this paragraph shall be repeated for each subsequent amount appropriated until the amount authorized, as adjusted, has been appropriated. (C) Period of indexing The period of indexing adjustment under this paragraph for any increment of funding shall end on the date on which the amount under paragraph (1) is deposited in the Groundwater Development Supplemental Trust Fund. (m) Taos pueblo surface water sharing supplemental trust fund (1) Mandatory appropriation Out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary for deposit in the Taos Pueblo Surface Water Sharing Supplemental Trust Fund established by section 505(i) (referred to in this subsection as the Surface Water Sharing Supplemental Trust Fund) $16,000,000, as adjusted pursuant to paragraph (2). (2) Fluctuation in costs (A) In general The amount under paragraph (1) shall be adjusted by such amounts as may be justified— (i) by reason of changes since July 2025 in construction costs, as indicated by the Bureau of Reclamation Construction Cost Index-Composite Trend; and (ii) to address construction cost changes necessary to account for unforeseen market volatility that may not otherwise be captured by engineering cost indices applicable to the types of construction involved, as determined by the Secretary, including repricing applicable to the types of construction and current industry standards involved. (B) Repetition The adjustment process under this paragraph shall be repeated for each subsequent amount appropriated until the amount authorized, as adjusted, has been appropriated. (C) Period of indexing The period of indexing adjustment under this paragraph for any increment of funding shall end on the date on which the amount under paragraph (1) is deposited in the Surface Water Sharing Supplemental Trust Fund..