Federal funding and cost cap aim to keep Gallup in water project

U.S. Sen. Martin Heinrich announced federal action that could keep Gallup tied to the long-delayed Navajo Gallup Water Supply Project and protect city finances from skyrocketing costs. Heinrich said he secured $55 million in fiscal 2026 appropriations and negotiated language to cap Gallup’s total contribution at $76 million, a move city leaders sought after years of cost overruns.

Heinrich made the remarks during a press call on Jan. 7, 2026, and stressed the financial relief the cap would provide. “This cost cap will save Gallup from footing an additional $70 million or more over the remaining course of the project,” he said, adding that the intent was to meet local leaders “halfway.” The funds are part of a roughly $57.5 million package aimed at Gallup and Farmington, San Juan County, Zuni Pueblo and the Navajo Nation.

Gallup originally agreed in 2009 to contribute $54 million toward the intergovernmental project. Rising construction and material costs over the last 15 years threatened to push the city’s bill far beyond that commitment, prompting municipal officials to warn last year that Gallup could not continue absorbing overruns. Heinrich and local leaders say the cap addresses that warning while allowing the larger effort to move forward to deliver reliable drinking water across northwest New Mexico and Eastern Navajo.

Despite the announcement, the money and statutory language remain contingent. Congress must approve the fiscal 2026 spending bills that include the $55 million, and the president must sign them before funds become available and the cap takes effect. If those steps are completed, the measure would shield Gallup from the extreme additional costs that had jeopardized its participation and could keep project timelines intact.

For McKinley County residents, the stakes are practical and immediate. The Navajo Gallup Water Supply Project has been billed as a cornerstone for long-term water reliability across the region, including on tribal lands that have long lacked consistent service. Keeping Gallup in the agreement reduces the chance of project delays, cost-shifting to local taxpayers, or scaled-back plans that could leave communities without promised infrastructure.

Next for residents is fiscal follow-through in Washington and close coordination between city officials, tribal partners and federal agencies to ensure that any new funds and cost controls translate into work on the ground. If congressional approval and the presidential signature come through, Gallup could avoid a renewed funding burden while the region moves closer to securing dependable drinking water.