The bill authorizes the New Mexico Finance Authority to provide loans or grants from the Water Project Fund for various qualifying water projects across the state. It specifies a list of entities, including cities, counties, and mutual domestic water associations, that are eligible for funding, along with the types of projects they can undertake, such as storage, conveyance, delivery, water conservation, recycling, treatment, reuse, and flood prevention projects. The terms and conditions for these loans or grants will be established by the Water Trust Board and the New Mexico Finance Authority.

Additionally, the bill declares an emergency, stating that it is necessary for the public peace, health, and safety for the act to take effect immediately. This urgency underscores the importance of addressing water-related issues in New Mexico, particularly in light of the diverse range of projects aimed at improving water management and conservation throughout the state.