To direct the Secretary of Agriculture to convey to the village of Santa Clara, the city of Bayard, or the county of Grant, in the State of New Mexico, in tracts of not less than 40 acres, at market price at its present state of use as agricultural grazing lands as determined by the Secretary, for business and community development, and for other purposes.

Directs the Secretary of Agriculture to convey at current state of use market prices specified lands formerly part of the Fort Bayard Military Reservation, Grant County, New Mexico, to the Village of Santa Clara, the City of Bayard, and Grant County, New Mexico, in tracts of not less than 40 acres, for business and community development.

Requires approval of all parties for any such conveyance.

Provides that the Secretary shall be responsible for the costs and recovery of any historic or prehistoric cultural properties located on such lands.