Declares that all Federal interest in specified lands in Neveda shall be held in trust by the United States for the Reno Sparks Indian Colony. Provides that nothing in this Act shall deprive any person of any right-of-way, mining claim, grazing permit, water right, or other interest in such lands before the enactment of this Act.

Requires the Secretary of the Interior (Secretary) to cancel all grazing permits and leases on specified lands and to reasonably compensate the holders of such permits and leases. Authorizes and directs the Secretary of the Treasury to pay to the Secretary such sums as are necessary to compensate such holders.

Provides that, prior to enactment of this Act, grazing privileges exercised under any grazing permit or lease issued by the Secretary on specified lands within the Paiute Canyon Grazing Allotment Range, Nevada, shall not be affected by this Act. Allows such leases or permits to be canceled or modified by the Secretary for failure by the holders to meet specified regulations. Requires grazing fees for such lands to be paid by the holders to the Secretary at the prevailing rates. Prohibits the transfer of such permits and leases to any person or organization other than the Reno Sparks Indian Colony. Authorizes such lands to be leased by the Indian owners, with the approval of the Secretary, for public, religious, educational, recreational, residential, or business purposes.