Colorado River supplies water to tens of millions of people, but is dwindling due to global warming. Biden administration had threatened to impose sweeping restrictions if negotiations between the states remained deadlocked.

Three lower basin states have agreed to voluntarily take action to save 3.7 billion cubic meters of water by 2026. Some of these savings will be " offset by funds from the Inflation Reduction Act," a major climate law passed last year in Washington, the Department of the Interior said. The announcement is "proof" of the government's "commitment" to "finding consensus solutions to climate change and persistent drought," Interior Minister Deb Haaland said.