
The Interior Department has denied a state entity an extension to receive $56 million in diversion construction funds.
The New Mexico Central Arizona Project Entity, of which Deming and Luna County are members, still has nearly $70 million in the New Mexico Unit Fund for a Gila diversion and regional water projects. But the loss of more federal money means less infrastructure, and less water that could be diverted from the river.
In 15 years, the state has spent nearly $15 million planning for a diversion.
Under the Arizona Water Settlements Act of 2004, the CAP Entity had until the end of December 2019 to receive a federal record of decision on environmental impact statements to obtain $56 million.
Interior's Assistant Secretary for Water and Science Timothy Petty informed the state of the decision, citing New Mexico's "slow pace of progress" on the diversion plans, which he said showed a "lack of urgency" for delivering water to rural communities.
Petty said he was disappointed that this project, which he said would bring critical water supplies to rural communities in southwest New Mexico, “faced such scrutiny and a lack of support from the State of New Mexico."