Land and Water Conservation Fund Water Amendments Act of 2023

This bill amends the Land and Water Conservation Fund program to allow states to use federal funds for water quality projects that restore impaired waters. It directly affects states receiving LWCF funds, requiring them to identify impaired waters under the Clean Water Act and prioritize projects restoring natural systems like wetlands, marshes, and living shorelines. Key provisions include creating a new category of "water quality projects" eligible for financial assistance, crediting state funds toward matching requirements, and prohibiting reimbursement for completed projects. The bill explicitly states it does not expand federal authority over non-navigable waters or authorize new regulations.