Technical Abstract: Our objective was to assess nitrogen responses to long-term changes in precipitation and nitrogen availability in the Northern Chihuahuan Desert (NM, USA), using rainfall manipulations (80% reduced PPT, ambient, 80% increased) and fertilization additions (with and without ammonium nitrate). We measured in situ net N mineralization, plant N uptake, foliar N, N leaching under grass-rooting zone, and soil N availability during two years. Our results showed that increased water availability did not affect net N mineralization, but there was higher plant N uptake than with drought. Soil inorganic N pools were 2–4 times lower with increased water availability compared to drought conditions. N leaching below grass-rooting zone was higher in dry than wet conditions because of higher available N. Increased water availability differentially affected N species significantly reducing the NO3:NH4 ratio. The accumulation of inorganic N during drought was the result of a decoupling between microbial and plant activity, and suggests that the cycling of N is more open in dry years than in wet years.