The Colorado River District has reached a significant milestone in its multi-year effort to permanently protect one of the state’s most critical water assets. On Friday, the U.S. Bureau of Reclamation officially released $40 million in federal funding for the Shoshone Water Rights Preservation Project. This infusion of capital brings the total secured funding to $97 million of the $99 million required to finalize the acquisition of the historic 1902 and 1929 water rights from Public Service Company, a subsidiary of Xcel Energy.

Company, a subsidiary of Xcel Energy.
The release of these funds marks the end of a long period of regulatory limbo. The funding was originally approved in 2024 through the Inflation Reduction Act, but it had been frozen since January 2025 following an executive order by President Donald Trump. While the administration maintained that the hold was a matter of fiscal review, the timing of the release—coming just one week after Governor Jared Polis commuted the sentence of former Mesa County Clerk Tina Peters—has fueled widespread speculation regarding a link between the two events. Colorado congressional representatives, including Lauren Boebert, had previously indicated that administration officials suggested the status of Peters’ incarceration was a primary obstacle to receiving federal water infrastructure funds.

Despite the intense political backdrop, the acquisition of the Shoshone rights remains a non-partisan priority for Western Slope water security. By keeping the water in the river as an “instream” flow, the district aims to ensure a consistent baseflow that supports agriculture, recreation, and endangered fish habitats against the backdrop of the Colorado River’s ongoing aridification. With the federal funding now secured, the district can move forward with essential water court applications and regulatory approvals, representing a vital step in bolstering Colorado’s position as the state navigates the upcoming expiration of federal river guidelines.