The "Watershed Protection and Forest Recovery Act of 2025" amends the Agricultural Credit Act of 1978 to establish an Emergency Forest Watershed Program . This program authorizes the Secretary of Agriculture, acting through the Chief of the Forest Service, to undertake critical emergency watershed protection measures on National Forest System land . These measures are defined as actions necessary to address issues like runoff retardation, soil-erosion prevention, and flood mitigation caused by natural disasters or occurrences. They must aim to prevent significant impairment of natural resources, mitigate immediate risks to downstream water resources, life, or property, and maintain or restore forest health. The Secretary is empowered to enter into agreements with eligible sponsors , which include: State or local governments Indian Tribes Water districts, water conservation districts, water utilities, or special districts The bill mandates that agreements be executed expeditiously, with projects completed within two years of a disaster and potential monitoring for up to three additional years. It also waives any matching requirements for payments made to sponsors and allows for partial payments during project execution. Furthermore, the legislation provides liability protections for sponsors, stating they are generally not liable for injury, loss, or damage unless their actions involve willful or wanton negligence or reckless conduct. For environmental review, these emergency measures are deemed emergency response actions under NEPA, streamlining the process. The bill also includes various clerical and conforming amendments to existing agricultural credit statutes.