Authorizes the Secretary of the Department of the Interior, through the Director of the Office of Self-Governance, to select up to 50 new Indian tribes per year from those eligible to participate in self-governance.

(Sec. 102) Requires that in a contract appeal the Secretary of the Interior (Secretary) must demonstrate by a preponderance of the evidence: (1) the validity of the grounds for the decision; and (2) that the decision is fully consistent with the provisions and policies of this Act.

Directs the Secretary to negotiate compacts and funding agreements in good faith to maximize implementation of the self-governance policy.

(Sec. 103) Provides a tribe meeting certain requirements with the opportunity to redesign or consolidate certain programs, services, functions, and activities.

Directs the Secretary to interpret all federal laws, regulations, and executive orders in a manner that facilitates: (1) inclusion in self-determination contracts and funding agreements of applicable programs, services, and related funds; (2) implementation of self-determination contracts and funding agreements; and (3) achievement of tribal health objectives.

(Sec. 104) Includes specified percentages of costs for programs, functions, services, and activities as eligible self-determination contract funding costs.

(Sec. 105) Revises provisions concerning the model statutory agreement.

Title II: Tribal Self-Governance - (Sec. 201) Revises title IV of the Act.

Establishes the Tribal Self-Governance Program.

Authorizes the Secretary, through the Director of the Office of Self-Governance, to select up to 50 new Indian tribes per year to participate in self-governance.

Provides that two or more tribes that are not otherwise eligible for participation may be treated as a single tribe for the purpose of participating in self-governance as a tribal organization if: (1) each tribe so requests; and (2) the tribal organization itself or at least one of the tribes is eligible.

Permits a tribe that withdraws from participation in a tribal organization to participate in self-governance if the tribe is eligible.

Requires a tribe, in order to be eligible to participate in self-governance, to: (1) complete a planning phase; (2) request participation in self-governance by the tribal governing body; and (3) demonstrate for the three fiscal years preceding the date on which the tribe requests participation financial stability and management capability.

Directs the Secretary to negotiate and enter into: (1) a compact with each Indian tribe participating in self-governance in a manner consistent with the trust responsibility of the federal government, treaty obligations, and the government-to-government relationship between tribes and the United States; and (2) a funding agreement with the governing body of an Indian tribe or tribal organization in a manner consistent with the trust responsibility of the federal government, treaty obligations, and the government-to-government relationship between tribes and the United States.

Makes grants available for participation in self-governance.

States that a funding agreement: (1) shall authorize the tribe to plan, conduct, administer, and receive full tribal share funding for specified programs carried out by the Bureau of Indian Affairs (BIA), the Office of the Assistant Secretary for Indian Affairs, and the Office of Special Trustee; and (2) may include programs, services, and functions that are of special geographic, historical, or cultural significance to the tribe.

Sets forth funding agreement provisions regarding: (1) competitive bidding; (2) excluded funding; (3) services; and (4) budget.

Permits retention of existing funding agreements.

Requires a tribe participating in self-governance to: (1) have measures in place to address administrative conflicts of interest; and (2) maintain records.

Authorizes a tribe to: (1) redesign or consolidate programs or reallocate funds so long as the redesign or consolidation does not deny eligibility for services to population groups otherwise eligible to be served under federal law; and (2) fully or partially retrocede to the Secretary any program under a compact or funding agreement.

Requires a funding agreement to include a provision: (1) to monitor the performance of trust functions by the tribe through the annual trust evaluation; and (2) for the Secretary to reassume a program and associated funding in circumstances of imminent jeopardy to a trust asset, natural resources, or public health and safety that is caused by the tribe and arises out of a failure to carry out the compact or funding agreement.

Sets forth provisions governing a situation in which the Secretary and a tribe are unable to agree on compact or funding agreement.

Authorizes a tribe participating in tribal self-governance to carry out construction projects, including certain related federal environmental activities.

Directs the Secretary, upon request of the tribe's governing body, to provide the tribe with financial assistance to carry out the funding agreement.

Authorizes a funding agreement to provide for multiyear funding.

Directs the Secretary to transfer tribal shares and resources to a tribe in a timely fashion.

Restricts the Secretary's authority to reduce annual funding.

Authorizes a tribe to carry over funding, interest, or income from year to year without diminishing future entitlements.

Prohibits a tribe from being obligated to continue performance that requires an expenditure of funds in excess of the amount of funds transferred under a compact or funding agreement.

Directs the the Secretary to interpret federal law in a manner that facilitates funding agreements.

States that nothing in this title expands or alters the Secretary's authority so as to authorize the Secretary to enter into any funding agreement: (1) with respect to an inherent federal function; (2) where a program prohibits the type of participation sought by the tribe; or (3) which reduces or limits the services, contracts, or funds that any other tribe or tribal organization is eligible to receive under federal law.

Permits, at the option of a participating Indian tribe or Indian tribes, any of the provisions of title I to be incorporated in any compact or funding agreement.

Requires the President to identify in a report to accompany the annual budget request submitted to Congress all amounts necessary to fully fund all funding agreements entered into under this Act. Requires the Secretary to identify in a report accompanying each budget request the amount of funds that are sufficient for planning and negotiation grants and sufficient to cover any shortfall in certain funding, including direct program costs, tribal shares, and contract support costs.

Sets forth additional reporting requirements.

Provides for the issuance of regulations.

Puts the burden of proof on the Secretary in any administrative appeal or civil action for judicial review of any decision made by the Secretary under this title.

Authorizes appropriations to carry out this title.

(Sec. 102) Directs the Secretary of the Interior to negotiate compacts and funding agreements in good faith to maximize implementation of the self-governance policy.

(Sec. 103) Directs the Secretary to interpret all federal laws, regulations, and executive orders in a manner that facilitates: (1) inclusion in self-determination contracts and funding agreements of applicable programs, services, and related funds; (2) implementation of self-determination contracts and funding agreements; and (3) achievement of tribal health objectives.

(Sec. 104) Includes specified percentages of costs for programs, functions, services, and activities as eligible self-determination contract funding costs.

(Sec. 105) Revises provisions concerning the model statutory agreement.

Title II: Tribal Self-Governance - (Sec. 201) Revises title IV of the Act.

Establishes the Tribal Self-Governance Program.

Authorizes the Secretary, through the Director of the Office of Self-Governance, to select up to 50 new Indian tribes per year to participate in self-governance.

Provides that two or more tribes that are not otherwise eligible for participation may be treated as a single tribe for the purpose of participating in self-governance as a tribal organization if: (1) each tribe so requests; and (2) the tribal organization itself or at least one of the tribes is eligible.

Permits a tribe that withdraws from participation in a tribal organization to participate in self-governance if the tribe is eligible.

Requires a tribe, in order to be eligible to participate in self-governance, to: (1) complete a planning phase; (2) request participation in self-governance by the tribal governing body; and (3) demonstrate for the three fiscal years preceding the date on which the tribe requests participation financial stability and management capability.

Directs the Secretary to negotiate and enter into: (1) a compact with each Indian tribe participating in self-governance in a manner consistent with the trust responsibility of the federal government, treaty obligations, and the government-to-government relationship between tribes and the United States; and (2) a funding agreement with the governing body of an Indian tribe or tribal organization in a manner consistent with the trust responsibility of the federal government, treaty obligations, and the government-to-government relationship between tribes and the United States.

Makes grants available for participation in self-governance.

States that a funding agreement: (1) shall authorize the tribe to plan, conduct, administer, and receive full tribal share funding for specified programs carried out by the Bureau of Indian Affairs (BIA), the Office of the Assistant Secretary for Indian Affairs, and the Office of Special Trustee; and (2) may include programs, services, and functions that are of special geographic, historical, or cultural significance to the tribe.

Sets forth funding agreement provisions regarding: (1) competitive bidding; (2) excluded funding; (3) services; and (4) budget.

Permits retention of existing funding agreements.

Requires a tribe participating in self-governance to: (1) have measures in place to address administrative conflicts of interest; and (2) maintain records.

Authorizes a tribe to: (1) redesign or consolidate programs or reallocate funds so long as the redesign or consolidation does not deny eligibility for services to population groups otherwise eligible to be served under federal law; and (2) fully or partially retrocede to the Secretary any program under a compact or funding agreement.

Requires a funding agreement to include a provision: (1) to monitor the performance of trust functions by the tribe through the annual trust evaluation; and (2) for the Secretary to reassume a program and associated funding in circumstances of imminent jeopardy to a trust asset, natural resources, or public health and safety that is caused by the tribe and arises out of a failure to carry out the compact or funding agreement.

Sets forth provisions governing a situation in which the Secretary and a tribe are unable to agree on compact or funding agreement.

Authorizes a tribe participating in tribal self-governance to carry out construction projects, including certain related federal environmental activities.

Directs the Secretary, upon request of the tribe's governing body, to provide the tribe with financial assistance to carry out the funding agreement.

Authorizes a funding agreement to provide for multiyear funding.

Directs the Secretary to transfer tribal shares and resources to a tribe in a timely fashion.

Restricts the Secretary's authority to reduce annual funding.

Authorizes a tribe to carry over funding, interest, or income from year to year without diminishing future entitlements.

Prohibits a tribe from being obligated to continue performance that requires an expenditure of funds in excess of the amount of funds transferred under a compact or funding agreement.

Directs the the Secretary to interpret federal law in a manner that facilitates funding agreements.

States that nothing in this title expands or alters the Secretary's authority so as to authorize the Secretary to enter into any funding agreement: (1) with respect to an inherent federal function; (2) where a program prohibits the type of participation sought by the tribe; or (3) which reduces or limits the services, contracts, or funds that any other tribe or tribal organization is eligible to receive under federal law.

Permits, at the option of a participating Indian tribe or Indian tribes, any of the provisions of title I to be incorporated in any compact or funding agreement.

Requires the President to identify in a report to accompany the annual budget request submitted to Congress all amounts necessary to fully fund all funding agreements entered into under this Act. Requires the Secretary to identify in a report accompanying each budget request the amount of funds that are sufficient for planning and negotiation grants and sufficient to cover any shortfall in certain funding, including direct program costs, tribal shares, and contract support costs.

Sets forth additional reporting requirements.

Provides for the issuance of regulations.

Puts the burden of proof on the Secretary in any administrative appeal or civil action for judicial review of any decision made by the Secretary under this title.

Authorizes appropriations to carry out this title.