Colorado River Drought Response Act This bill authorizes appropriations for the Department of the Interior to reduce the near-term likelihood of Lake Mead (in Arizona and Nevada) and Lake Powell (in Arizona and Utah) declining to critically low water elevations. These reservoirs are part of the Colorado River Basin. The bill also decreases the amount of time Interior has to act on existing requirements to establish grant programs for watershed habitat restoration and large-scale water recycling and reuse in certain western states.