On May 19, 2026, the President signed two pieces of legislation that carry meaningful implications for clients operating in conservation, water infrastructure, and small business investment sectors. The first, H.R. 972, the Sloan Canyon Conservation and Lateral Pipeline Act, addresses federal land management in southern Nevada. The second, H.R. 2066, the Investing in All of America Act of 2025, adjusts the leverage framework governing Small Business Investment Companies (SBICs). Together, these enactments introduce new opportunities and compliance considerations that warrant the attention of affected stakeholders.
The Sloan Canyon Conservation and Lateral Pipeline Act expands the boundaries of the Sloan Canyon National Conservation Area in Clark County, Nevada. In addition to enlarging the protected area, the Act directs the Bureau of Land Management (BLM) to grant rights-of-way to the Southern Nevada Water Authority. This dual mandate reflects a calibrated approach: enhancing conservation protections while simultaneously facilitating critical water infrastructure development in a region long shaped by competing demands on federal land. Clients with interests in land use, energy, recreation, or water delivery within or adjacent to the affected area should evaluate how the expanded boundaries and new rights-of-way may influence permitting, access, and project planning.
The Investing in All of America Act of 2025 modifies the maximum outstanding leverage available to SBICs. Notably, the Act also excludes certain qualifying investments from the SBIC leverage cap, potentially expanding the capital deployment capacity of participating investment companies. For SBICs and the funds, sponsors, and portfolio companies that interact with them, these changes may open new pathways for financing activity, particularly where investments fall within the qualifying categories carved out from the cap. Fund managers should consider how the revised leverage parameters intersect with existing fund structures, regulatory reporting obligations, and investment strategies.
Although these laws share a signing date, they operate in distinct regulatory environments. Stakeholders should monitor implementing actions by the BLM and the Small Business Administration, respectively, as further guidance is expected to clarify operational details and timelines for both statutes.
This update is provided for general informational purposes only and does not constitute legal advice. Clients are encouraged to consult counsel for guidance tailored to their specific circumstances.