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

Bill Summary

S. 640 would amend the Omnibus Public Land Management Act of 2009 to authorize the appropriation of specific amounts totaling $18 million for three trust funds that are credited with interest. Specifically, the bill would authorize the appropriation of:

• $6 million for the Navajo Nation Water Resources Development Trust Fund,
• $8 million for the Taos Pueblo Water Development Fund, and
• $4 million for the Aamodt Settlement Pueblos’ Fund.

Estimated Federal Cost

The estimated budgetary effect of S. 640 is shown in Table 1. The costs of the legislation fall within budget function 300 (natural resources and environment).

Basis of Estimate

For this estimate, CBO assumes that the bill will be enacted in 2025 and that the authorized amounts will be appropriated in that same year.

Spending Subject to Appropriation

S. 640 would authorize the appropriation of specific amounts to three trust funds. That money would be spent on activities specified or allowed in the underlying settlement agreements. Based on historical spending patterns, CBO estimates that implementing S. 640 would cost $18 million over the 2025-2030 period, assuming appropriation of the authorized amounts.

Direct Spending

Any appropriations provided to the three trust funds are invested in Treasury obligations, including those that would be authorized by S. 640. Those trust funds are credited with interest based on the value of the Treasury obligations they hold. Because that credited interest can be spent on the trust funds’ activities without further appropriation, that spending is classified as direct spending.

Based on the projection of interest rates that underlie CBO’s baseline, CBO estimates that the trust funds would be credited with $2 million, all of which would be spent over the 2025-2035 period.

Pay-As-You-Go Considerations

The Statutory Pay-As-You-Go Act of 2010 establishes budget-reporting and enforcement procedures for legislation affecting direct spending or revenues. The net changes in outlays that are subject to those pay-as-you-go procedures are shown in Table 1.

Increase in Long-Term Net Direct Spending and Deficits

CBO estimates that enacting S. 640 would not increase net direct spending by more than $2.5 billion in any of the four consecutive 10-year periods beginning in 2036.

CBO estimates that enacting S. 640 would not increase on‑budget deficits by more than $5 billion in any of the four consecutive 10-year periods beginning in 2036.

Mandates

The bill contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act.

Federal Costs: Alaina Rhee

Mandates: Erich Dvorak

Estimate Reviewed By

Ann E. Futrell
Acting Chief, Natural and Physical Resources Cost Estimates Unit

Kathleen FitzGerald
Chief, Public and Private Mandates Unit

H. Samuel Papenfuss 
Deputy Director of Budget Analysis