HR605-119

What This Bill Does

The Headwaters Protection Act of 2025 amends the Healthy Forests Restoration Act water-source and watershed condition provisions. It expands eligible Water Source Protection Program partners to include acequia associations, public stormwater or wastewater entities, land-grant mercedes, and private entities with water delivery authority. It defines adjacent land as non-Federal State, local, or private land adjacent to and within the same watershed as National Forest System land where a watershed protection or restoration project occurs. Projects may protect and restore watershed health, water supply and quality, municipal or agricultural water supply systems, water-related infrastructure, and forest health from insects, disease, or wildfire. Project selection must prioritize drought, wildfire, post-wildfire, extreme-weather, and flooding risk management; aquatic restoration linked to forest restoration or wildfire risk reduction; capable partners or likely-success partners in disadvantaged communities; non-Federal contributions above the required match; quantifiable water supply or quality benefits; nature-based solutions such as wetland and riparian restoration; and climate, watershed, or fire resilience. Projects on adjacent land require the owner's express support and willing participation. The bill modifies the federal cost share to allow up to 90 percent for projects serving disadvantaged communities and up to 100 percent when a project is highly cost-effective and the community lacks resources. It authorizes $30 million for each fiscal year 2025 through 2029 for the watershed condition framework and requires management activities not to cause long-term degradation or lower a National Forest watershed classification. It also states that the Act does not override State or federal water law, interstate compacts, treaties, land ownership, or control over non-Federal land.

Who Benefits and How

Municipal water utilities benefit because the program can fund watershed projects protecting water supply, quality, and infrastructure. Agricultural water suppliers, acequia associations, and land-grant mercedes benefit from explicit eligibility as water-source protection partners. Disadvantaged communities benefit because qualifying projects can receive a 90 percent or even 100 percent federal cost share. Downstream communities benefit from projects designed to reduce drought, wildfire, post-wildfire, extreme-weather, and flood risks. Forest and aquatic ecosystems benefit from project priorities for watershed health, riparian and wetland restoration, aquatic conservation, and forest resilience. Private and public adjacent landowners benefit from the willing-owner safeguard that bars adjacent-land projects without express support.

Who Bears the Burden and How

Forest Service program staff must evaluate expanded partner categories, adjacent-land rules, cost-share eligibility, nature-based benefits, and watershed-condition safeguards. Non-Federal partners must provide matching funds or in-kind support unless a higher federal share applies. Adjacent landowners who choose to participate must stay engaged in project implementation on their land. Federal taxpayers bear the cost of higher federal shares and the $30 million annual watershed condition framework authorization. National Forest managers must ensure activities and authorizations do not degrade watershed health or lower watershed classifications.

Key Provisions

• Adds acequia associations, stormwater and wastewater entities, land-grant mercedes, and private water-delivery entities as eligible partners.
• Authorizes watershed protection and restoration projects on adjacent non-Federal land only with express willing-owner support.
• Requires project priorities for drought, wildfire, flooding, aquatic restoration, nature-based solutions, and measurable water benefits.
• Allows higher federal cost shares for disadvantaged-community projects, including up to 100 percent in limited circumstances.
• Authorizes $30 million per year for fiscal years 2025 through 2029 for watershed condition framework work.
• Preserves State water law, federal water law, interstate compacts, treaty obligations, land ownership, and non-Federal land control.