The Trump administration on Friday released $40 million, clearing the way for a water district and its partners to finish funding the purchase of some of the state’s most senior Colorado River water rights, Gov. Jared Polis announced.

Federal funding for the Shoshone water rights owned by Public Service Company, a division of Xcel Energy, was approved by the Biden administration in 2024 through the Inflation Reduction Act.

An executive order issued shortly after President Donald Trump took office in January 2025 put that funding on hold.

With the $40 million in federal funding on its way, the project’s funding now stands at $97 million, close enough to its $99 million total cost that the Colorado River Conservation District can move into the project’s next phase.

“This award is a major breakthrough in our coalition’s effort to permanently secure historic flows on the Colorado River,” Andy Mueller, general manager of the Colorado River district said on behalf of the Shoshone Water Right Preservation Coalition, which includes 100 entities throughout the Western slope.

Members of Colorado’s congressional delegation praised the Trump administration’s decision, each highlighting their own role in making it happen.

U.S. Sen. John Hickenlooper said in a statement Friday that Colorado’s congressional delegation “pushed the Trump administration to release this Upper Basin funding because Colorado is facing a water crisis.”

He added that funding from the Inflation Reduction Act will support the Shoshone Permanency Project’s work to protect the Colorado River, particularly in dry years.

Hickenlooper also noted that, last month, he pressed Interior Secretary Doug Burgum during a U.S. Senate Energy and Natural Resources Committee hearing to release $99 million in funding for 17 Colorado water projects — including Shoshone. Seven of those projects have now received their funding, while dollars for the remaining nine, worth $52 million, are pending.

“This is a major step forward for Western Colorado and an important step toward protecting one of the most critical water resources in our region,” said Republican U.S. Rep. Jeff Hurd, who represents Colorado’s 3rd Congressional District.

He explained that the Shoshone water rights are foundational to the long-term health of the Colorado River system and essential to farmers, ranchers, municipalities, and communities that depend on reliable water supplies.

Mueller, in his statement, lauded Hurd’s efforts, calling them “unwavering advocacy within the administration.”

Democratic Sen. Michael Bennet also applauded the decision, including the bipartisan work of Western Slope leaders.

“This is a big day for one of the most important water conservation efforts in our state’s history,” he said.

“These senior water rights are a lifeline for Colorado — providing certainty for farmers and ranchers, sustaining outdoor recreation, protecting wildlife habitat, and helping stabilize flows when the Colorado River runs low,” he added.

Polis, too, commended the federal dollars’ release and lauded the work of Colorado’s congressional

“This is a major win in securing Colorado’s water future, and will help us combat the impacts of climate change and drought and preserve the health of our streams and rivers,” Polis said in a statement.

Polis added, “This funding will help our agricultural economy, support clean drinking water, and bolster the incredible ecosystem of the Colorado River. Thank you to Congressmen Jeff Hurd and Joe Neguse, Senators Bennet and Hickenlooper, the rest of our federal delegation, state legislators, local leaders, and advocates across the state for working tirelessly to secure this funding.”

Water court is next

There will be no requirement to change the water’s existing beneficial use, which is currently designated for hydropower. Instead, the water court will be asked to approve an additional use — an “instream” flow right.

The water court application process is already underway. It began last November, when the Colorado River District and Xcel reached an agreement with the Colorado Water Conservation Board, which has traditionally been the only entity allowed to hold instream flow rights.

In December 2023, the Colorado River District and Public Service Company entered into a $99 million Purchase and Sale Agreement to acquire the historic Shoshone Water Rights — the senior (1902) and junior (1929) non‑consumptive rights that help stabilize flows on the upper Colorado River.

The agreement included four conditions:

• Receiving approval from the state Public Utilities Commission, a process that will begin once the water court issues its decree
• Signing an instream flow agreement with the Colorado Water Conservation Board, which has been completed
• Obtaining a water court decree approving the change of water rights, which is currently in progress
• Securing full project funding, which was completed Friday