Trump’s FY26 Budget Proposal Threatens Treaty and Trust Responsibilities to Indian Country

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By Aaron Payment

May 04, 2025

Guest Opinion. On Friday, May 2, the President released his Fiscal Year 2026 budget proposal, which outlines severe funding cuts to Indian Country. These proposed reductions threaten to undermine the federal government’s treaty and trust obligations to Tribal Nations.

From the moment the President’s budget is released until Congress finalizes the federal budget, there is a critical window for advocacy. Tribal Nations must mobilize now, in coordination with national and regional Native organizations such as the National Congress of American Indians (NCAI), the National Indian Health Board (NIHB), and the National Indian Education Association (NIEA), to influence the budget outcome.

The budgeting process begins with the Office of Management and Budget (OMB) setting spending ceilings, which then shape the President’s proposal. Congress is expected to serve as a check on the executive branch and adjust the budget based on constituents' needs. In past years, Indian Country has relied on bipartisan Congressional support to restore or increase funding levels. The current chair of the House Appropriations Committee, Congressman Tom Cole (R-OK), who is a tribal citizen of the Chickasaw Nation, provides some optimism—but only if Indian Country actively engages in the process.

Organizations like NCAI have had success advocating for Indian Country, but the current political climate poses unprecedented challenges. The threat of political retaliation from influential figures like billionaire Elon Musk—who has publicly stated he will target members of Congress who oppose the President’s budget—raises serious concerns about whether Congress will act as a check on executive overreach.

This year’s budget proposal includes deeply concerning cuts that suggest a return to an “Indian Termination Era” mentality. While a few programs, like Head Start and drinking water infrastructure, see modest gains, the overall budget reflects a significant rollback of critical resources for Tribal communities.

Key Proposed Cuts to Indian Country:

• 26.2% cut to HHS, affecting programs critical to health outcomes in Indian Country.
  
  
• $1.7 billion cut from Health Resources and Services Administration (HRSA), leaving just $6 billion for “priority activities.”
  
  
• Elimination of the Low-Income Home Energy Assistance Program (LIHEAP).
  
  
• $1 billion cut to the Substance Abuse and Mental Health Services Administration (SAMHSA), including funding for Tribal Opioid Response.
  
  
• $674 million cut from the Center for Medicare and Medicaid Services, though the proposal claims it won’t impact recipients.
  
  
• $770 million cut from the Community Services Block Grant program.
  
  
• 30.5% cut to the Department of the Interior.
  
  
• Nearly $1 billion cut from Bureau of Indian Affairs (BIA).
  
  
• $617 million cut from BIA programs supporting Tribal self-governance.
  
  
• $107 million cut from BIA Public Safety and Justice programs.
  
  
• $187 million cut from the Bureau of Indian Education construction account.
  
  
• Elimination of discretionary awards under Community Development Financial Institutions (CDFI).
  
  
• Elimination of competitive NAHASDA grants.
  
  
• Cuts to Community Development Block Grants (CDBG).
  
  

Much of my understanding of the federal appropriations process has been as a Member of the Tribal Interior Budget Council (TIBC) alongside Chairman Darryl Seki (Red Lake) and as a past officer for the National Congress of American Indians including as 1st Vice President where for three legislative cycles, I had the honor of presenting our Indian Country budget to the Senate Committee on Indian Affairs.  

Next Steps:

The President’s proposal now moves to the House and Senate Appropriations Committees, where both chambers will draft their own versions. We must urge Congress to reject these draconian cuts and reaffirm the federal government’s treaty and trust obligations.

Take Action Now:

• Review the potential impacts on your Tribal budget and services.
  
  
• Contact your Congressional delegation—both U.S. Senators and your Representative.

Demand that they oppose any budget cuts targeting Indian Country.

Find Your Member of Congress

US House of Representatives:

www.house.gov/representatives/find-your-representative

US Senators (2):

www.senate.gov/senators/senators-contact.htm?lang=en

Dr. Payment currently serves on his Tribal Council. He previously served 22 years in office including four terms as Tribal Chairperson. He also served for nearly a decade on the National Congress of American Indians Executive Committee including at 1 st VP twice. A high school dropout, Dr. Payment earned five college degrees including doctorate in Education (EdD). He served as a university faculty teaching Native Studies/Political Science; as School Board President of a Tribal Grant and State Charter School; and as a Tribal College Board Regent Vice-President. Dr. Payment can be reached at [email protected]" data-uw-rm-vglnk uw-rm-vague-link-id="mailto:[email protected]$send an email to [email protected]">[email protected]

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