A bill to authorize public land States to select certain public lands in exchange for land taken by the United States for military and other uses, and for other purposes.

Authorizes public-lands States, in lieu of receiving monetary payment, to select surveyed, unreserved, or unappropriated lands in exchange for State lands taken by the United States within the boundaries of an existing military reservation. Requires the Secretary of the Interior to determine the value of selected lands and if such determination is disputed by the State, to attempt to settle such dispute by arbitration. Provides that upon the failure of arbitration such dispute may be referred to the U.S. district court wherein such land lies.

Directs the head of the agency acquiring such land to reimburse the Secretary and the State for necessary expenses in such land exchanges.