[Senate Hearing 119-312]
[From the U.S. Government Publishing Office]
S. Hrg. 119-312
IMPACTS OF GOVERNMENT SHUTDOWNS AND AGENCY REDUCTIONS IN FORCE ON
NATIVE COMMUNITIES
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HEARING
before the
COMMITTEE ON INDIAN AFFAIRS
UNITED STATES SENATE
ONE HUNDRED NINETEENTH CONGRESS
FIRST SESSION
__________
OCTOBER 29, 2025
__________
Printed for the use of the Committee on Indian Affairs
[GRAPHIC(S) NOT AVAILANLE IN TIFF FORMAT
U.S. GOVERNMENT PUBLISHING OFFICE
62-968 PDF WASHINGTON : 2026
COMMITTEE ON INDIAN AFFAIRS
LISA MURKOWSKI, Alaska, Chairman
BRIAN SCHATZ, Hawaii, Vice Chairman
JOHN HOEVEN, North Dakota MARIA CANTWELL, Washington
STEVE DAINES, Montana CATHERINE CORTEZ MASTO, Nevada
MARKWAYNE MULLIN, Oklahoma TINA SMITH, Minnesota
MIKE ROUNDS, South Dakota BEN RAY LUJAN, New Mexico
JERRY MORAN, Kansas
Amber Ebarb, Majority Staff Jennifer Romero, Minority Staff
Director Director and Chief Counsel
Lucy Murfitt, Chief Counsel Alanna Purdy, Policy Advisor
Jocelyn Broman, Counsel Caroline Ackerman, Legislative
Sarah McKinnis, Legislative Assistant
Assistant
C O N T E N T S
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Page
Hearing held on October 29, 2025................................. 1
Statement of Senator Cortez Masto................................ 37
Statement of Senator Murkowski................................... 1
Statement of Senator Schatz...................................... 2
Statement of Senator Smith....................................... 39
Witnesses
Bird, Kerry D., President, National Indian Education Association. 15
Prepared statement........................................... 17
Harris, Hon. Sarah E., Vice Chairwoman, Mohegan Tribe; Secretary,
United South and Eastern Tribes Sovereignty Protection Fund.... 4
Prepared statement........................................... 6
Locklear, II., Anthony, Tribal Member, Lumbee Tribe; CEO,
National Indian Health Board................................... 28
Prepared statement........................................... 30
Mallot, Ben, President, Alaska Federation of Natives............. 11
Prepared statement........................................... 13
Upton, Pete, CEO, Native CDFI Network, Executive Director,
Native360 Loan Fund............................................ 20
Prepared statement........................................... 21
Appendix
Blankenship, Cory, Executive Director, Native American Finance
Officers Association, prepared statement....................... 56
BlueEyes, Faye, Administrative Advisor, Dine Grant Schools
Association (DGSA), prepared statement......................... 50
Crevier, Francys, CEO, National Council of Urban Indian Health,
prepared statement............................................. 75
Fort Belknap Indian Community (FBIC), prepared statement......... 52
Jake, Gjermundson C., President, Ramah Navajo School Board, Inc.,
prepared statement............................................. 65
Lawrence, Kari Jo, CEO, Intertribal Agriculture Council, prepared
statement...................................................... 54
Letters and supplemental information submitted for the record
Maxim, Robert and Glencora Haskins, Brookings Institution,
prepared statement............................................. 49
Pesina, Andrea, President, National Indian Head Start Directors
Association, prepared statement................................ 68
Rackliff, Jennifer, Executive Director, National Indian Child
Care Association, prepared statement........................... 73
Response to Written Questions Submitted by Hon. Ben Ray Lujan to:
Kerry D. Bird................................................ 120
Anthony Locklear, II......................................... 111
Ben Mallott.................................................. 115
Pete Upton................................................... 117
Response to written questions submitted by Hon. Brian Schatz to:
Kerry D. Bird................................................ 118
Hon. Sarah E. Harris......................................... 106
Anthony Locklear, II......................................... 108
Ben Mallott.................................................. 112
Pete Upton................................................... 116
Standing Rock Sioux Tribe, prepared statement.................... 63
Unok, Alberta, President/CEO, Alaska Native Health Board,
prepared statement............................................. 47
Wright, Jr., Larry, Executive Director, National Congress of
American Indians, prepared statement........................... 58
IMPACTS OF GOVERNMENT SHUTDOWNS AND AGENCY REDUCTIONS IN FORCE ON
NATIVE COMMUNITIES
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WEDNESDAY, OCTOBER 29, 2025
U.S. Senate,
Committee on Indian Affairs,
Washington, DC.
The Committee met, pursuant to notice, at 2:00 p.m. in room
628, Dirksen Senate Office Building, Hon. Lisa Murkowski,
Chairman of the Committee, presiding.
OPENING STATEMENT OF HON. LISA MURKOWSKI,
U.S. SENATOR FROM ALASKA
The Chairman. Good afternoon. I call this oversight hearing
to order.
Today marks day 29 of a full government shutdown. None of
the 12 appropriations bills have been passed by Congress, and
departments and agencies are restricted to essential functions
while appropriations have lapsed. Congress' failure to do our
work, in my view, is inexcusable.
We have got to come together, which means we have to talk
to one another. And it can't be about who is winning, who is
losing. Because right now, those who are losing are the
American people, including the First Americans across the
Country.
So today we are going to hear about how government
shutdowns and agency reductions in force impact Native
communities. When Federal employees are furloughed, the people
responsible for carrying out the Government's trust and treaty
obligations are unable to do their jobs. This disrupts Native
communities' access to essential Federal resources and
services.
Tribes and Native leaders are reaching out for help, and
they are being told, well, we can't help you now, the
government is not open. And all the while, Native parents who
rely on SNAP are worrying about how to feed their families.
Head Start renewal deadlines are approaching with no one to
process them. Maintenance and repairs at health care facilities
are stalled, and tribal governments are dipping into their
limit savings, if they haven't used them up already.
We know how past government shutdowns have hurt Native
communities. During the 2018 partial government shutdown, the
Indian Health Service had no advance appropriations at the
time, forcing tribes and tribal organizations to cut services,
exhaust on-hand medical supplies, and even consider temporarily
closing health care facilities.
Funding for IHS isn't a luxury. I think we know well for
many, it is a matter of life and death. That is why back in
2013, we were able to introduce legislation to provide advance
appropriations for IHS. We knew them it was going to be a long
haul. But it was the right thing to do.
And in the Fiscal Year 2023 appropriations bill, we finally
secured advance appropriations for most of the IHS accounts. So
today, as health care facilities across the Country continue
operating with minimal disruption during the shutdown, I think
we can see the real impacts that that had.
In 2025, we have also seen reductions in force, the RIFs,
across many departments and agencies affecting the
administration of Federal programs that Native communities rely
on. The loss of employees with deep institutional knowledge and
longstanding relationships with Native communities weakens the
effectiveness of these crucial Federal programs.
On October 10th, additional RIF notices were issued. We are
going to hear today about the impacts at the CDFI Fund, which
supports Native CDFIs in expanding economic opportunities in
Indian Country; at the Office of Indian Education and the
Impact Aid Office, where cuts threaten education opportunities
for Native students; and at HHS, where there are staff
reductions to SAMHSA, HRSA, home programs that fill gaps left
by IHS, especially when it comes to behavioral health.
Now, not all of these offices have Indian or Tribe in their
names. But each plays a critical role in serving Native
communities. And all are part of carrying out the Federal
Government's trust and treaty responsibilities.
I have consistently reminded agencies of the unique
government-to-government relationship and that these
obligations must be upheld, even in times of challenge.
It is kind of a meeting under perhaps not the best
circumstances right now. I do hope that today's hearing will be
a productive one. We all want our government to work. We want
our government to serve all the people of the United States,
including our Native peoples.
As Senators, I think it is our responsibility to listen and
understand the day-to-day impacts that communities are facing
during this shutdown, and that is what we intend to do here
today.
I will now turn to the Vice Chair for his opening
statement.
STATEMENT OF HON. BRIAN SCHATZ,
U.S. SENATOR FROM HAWAII
Senator Schatz. Thank you, Chair Murkowski, and thank you
to our witnesses for being here.
When the Federal Government shuts down, our trust and
treaty and legal obligations do not vanish. But they are put at
risk. Promises to provide health care, housing, education, and
public safety, among so many other critical services, are all
on the chopping block.
Communities are scrambling to secure alternate or reserve
funding just in case their Federal funds fall through, and
several tribes have already declared states of emergency due to
the funding and service shortfalls.
And it is not the first time. In 2018, we learned just how
devastating a government shutdown is for Native communities. A
few examples: general assistance payments for food, clothing,
shelter and utility needs of low-income Native individuals and
families were suspended. Funding for foster care and long-term
care for children and elders, suspended. Funds for tribal
operations, suspended.
During that shutdown, the president of the National
Congress of American Indians, Jefferson Keel, warned us that
``Indian Country cannot afford and America should not stand for
another one.'' But here we are again.
We are on day 29 of this government shutdown on track to
being the longest on record. That is nothing to brag about,
especially because it is no ordinary shutdown. This time, it is
also on track to being the most damaging to Federal workers.
RIFs are happening right now across the Federal Government
that are choking off funds and services promised to Native
communities. As we speak, the Office of Indian Education staff
of the Department of Education are receiving their RIF notices.
Without these Federal workers, Native education programs
required by law could grind to a halt. It doesn't have to be
this way. Punishing Federal workers with pink slips is a
choice. It is not a requirement under the Anti-Deficiency Act.
It is not something that automatically occurs at the end of the
Federal fiscal year. This is a choice that has nothing to do
with the fact that we are in a shutdown.
This shutdown is robbing agencies of staff needed to carry
out the trust obligations to American Indians, Native, and
Alaska Natives. Native communities can't put Federal funding to
work or fully exercise their self-determination if their
fiduciary, the United States Government, is out of the office.
Let me be clear what we are talking about here. Native
programs are not DEI spending, they are not charity. They are
the law. Attempting to cancel funds for Native programs, RIFing
more than 4,200 Federal employees and eliminating tribal
consultation policies, that is not the United States Government
meeting its trust and legal obligations. It is this
administration's attempt to resuscitate failed policies of
termination.
I look forward to this hearing and this discussion about
how this is impacting Indian Country and Alaska Natives, and
Native Hawaiians. I thank you again for being willing to
testify.
The Chairman. Thank you to our Vice Chair.
We will now turn to our witnesses. We have today the
Honorable Vice Chairwoman Sarah Harris, who is the Secretary
for United South and Eastern Tribes. She will be followed by
Mr. Ben Mallot, who is the President of the Alaska Federation
of Natives; Mr. Kerry Bird, who is the Board President for the
National Indian Education Association; Mr. Pete Upton, who is
the CEO of the Native CDFI Network; and Mr. A.C. Locklear, who
is the CEO of the National Indian Health Board.
I want to thank you all for taking the time to be before
the Committee today. I want to single out my friend, Ben
Mallot, who has had a very busy week up in Alaska, actually
busy weeks. We had a major disaster in western Alaska during
this shutdown.
I also want to recognize Willie Nunn, all of the FEMA
personnel who have surged up to the State working around the
clock on recovery operations. Again, all without pay. I am
very, very grateful for their dedication and for all the
Federal employees who are coordinating with the tribes and the
tribal organizations, the State. My team has been in there as
we are all working to deliver services to those who have been
displaced. So know that we continue to keep our attention
there.
I want to remind the witnesses that we have your full
written testimony. It will be made part of the official record.
We would ask you to keep your oral testimony to no more than
five minutes, so we have time for questions from members.
I have shared with some of you that we anticipate having a
vote here somewhere in the 2:15, 2:30 period. So you will see
movement back and forth. But we are going to try to keep the
hearing moving.
Let's turn first to Vice Chairwoman Harris, with your
testimony, please.
STATEMENT OF HON. SARAH E. HARRIS, VICE CHAIRWOMAN, MOHEGAN
TRIBE; SECRETARY, UNITED SOUTH AND
EASTERN TRIBES SOVEREIGNTY PROTECTION FUND
Ms. Harris. Chairman Murkowski, Vice Chairman Schatz, and
members of the Committee, thank you for the opportunity to
provide testimony. I am Sarah Harris, Vice Chairwoman of the
Mohegan Tribe.
I am here today in my capacity as the Secretary of the
United South and Eastern Tribes Sovereignty Protection Fund.
This hearing is timely, as Indian Country is facing the impacts
of what is on track to be the longest government shutdown in
history. While we have experienced lengthy shutdowns in the
past, including the 2018 through 2019 shutdown, we must also
contend with the upheaval that the current administration's
policies are bringing to the functioning and composition of the
Federal Government, many of which appear to be implemented
without regard to program, services, funding and contracts that
tribal nations and our people are owed.
These changes, including reductions in force, are
exacerbating the negative impacts of this shutdown for Indian
nations, citizens and communities. It is critically important
to underscore that allowing shutdowns caused by partisan
disagreement to impact the delivery of trust and treaty
obligations is unacceptable.
Although we celebrate the certainty that advance
appropriations have brought to IHS at this time, tribal nations
access funding and services throughout the Federal Government,
the vast majority of which remains unprotected. Our tribal
nations are working to ensure that citizens have continued
access to food, as nutrition programs like SNAP and WIC are
running out of funds.
For example, USET SPF's board president, Penobscot Chief
Kirk Francis, was unable to testify today because he is
currently working with his tribal council to reallocate over
$200,000 in other funding to bridge the gap in nutrition and
funding for November alone. This includes asking tribal hunters
to donate moose meat so that elders can be fed.
As the temperature continues to drop this fall, at least 12
of our member nations are without Low Income Heating Assistance
through the Department of Health and Human Services. The CDC is
extremely delayed in sharing disease prevalence data with our
tribal epidemiology center as South Carolina faces a measles
outbreak and we enter flu season.
Finally, some tribal nations are being forced to consider
taking out lines of credit to continue providing services to
their citizens and communities.
Congress and the administration must work together to
ensure the shutdown is lifted as soon as possible. The longer
the shutdown continues, the greater the likelihood of
compounding impacts to essential services in Indian Country,
those that are the responsibility of the Federal Government.
We urge the administration to work with Indian Country to
ensure its policies, including RIFs, do not affect the delivery
of trust and treaty obligations. Beginning on January 20th, as
we do with every administration, tribal nations have approached
the White House, the Office of Management and Budget, and
numerous Federal agencies and departments seeking partnership
and to educate them on the unique legal and moral obligations
the United States holds to Indian nations, tribal nation
citizens and communities.
We have explained why these obligations supersede the
administration's priorities relating to the scope and size of
the Federal Government. This includes requests for exemptions
from the administration's RIFs for tribal-serving positions,
both through the Department of Government Efficiency, and now
through OMB.
Despite this advocacy, many tribal-serving positions have
been eliminated over the course of this year. Tribal
organizations have also come together in response to the early
actions of the administration, including USET SPF and our
sister organizations here today.
Currently, a total of 37 member organizations, the
Coalition of Tribal Sovereignty, is a non-partisan
collaboration of local, regional, and national tribal
organizations, working together to safeguard tribal sovereignty
and uphold the United States' delivery of trust and treaty
obligations. Since February, the coalition has sent over 50
letters to the Executive Branch.
Broadly, these communications offer the following messages.
Indian Country is being unintentionally swept into the
administration's broad implementation of its policy priorities.
Because of trust and treaty obligations, tribal programs are
not like other Federal programs, and must be treated
differently.
Tribal nations and the Trump administration have important
overlapping goals and we must focus our energies on pursuing
those goals together. At present, however, our focus is being
drawn to protecting Indian Country from collateral harm caused
by imprecise implementation of the Trump administration's
priorities.
It is critical that all branches of the Federal Government
recognize that IHS, BIA, and BIE are not the sole agencies
charged with delivering trust and treaty obligations. Tribal
nations access funding and services throughout the Federal
Government, for which we have prepaid with our lands, resources
and the lives of our ancestors.
It is simply not enough to only protect these agencies from
the impacts of policy changes and position eliminations. All
tribal-serving personnel, programs and agencies must be exempt
from these actions.
Turning our attention back to this Committee and Congress
more broadly, the shutdown and this year's Federal upheaval
should inspire you to think differently about how trust and
treaty obligations are funded and carried out. In the short
term, all Federal Indian funding must be protected from
shutdowns and continuing resolutions through advance
appropriations. This would ensure that the Federal Government
continues to meet its obligations regardless of politics and
provides some certainty to our people, patients and employees
each year.
In the long term, full and mandatory funding would better
exemplify the obligations of the United States to tribal
nations.
In closing, we urge this Congress to bring the
destabilizing effects of its own inaction to an end for Indian
Country. We thank the Committee for the opportunity to testify,
and look forward to partnering as you seek to advance and
improve the delivery of trust and treaty obligations.
Thank you.
[The prepared statement of Ms. Harris follows:]
Prepared Statement of Hon. Sarah E. Harris, Vice Chairwoman, Mohegan
Tribe; Secretary, United South and Eastern Tribes Sovereignty
Protection Fund
Chairman Murkowski, Vice Chairman Schatz, and Members of the Senate
Committee on Indian Affairs, thank you for the opportunity to testify
on the impacts that the federal government shutdown and reductions in
force are having in Indian Country. My name is Sarah Harris and I serve
as the Mohegan Tribe's Vice Chairwoman, as well as the Secretary for
United South and Eastern Tribes and United South and Eastern Tribes
Sovereignty Protection Fund (USET SPF).
USET SPF is a non-profit, inter-Tribal organization advocating on
behalf of thirty-three (33) federally recognized Tribal Nations from
the Northeastern Woodlands to the Everglades and across the Gulf of
Turtle Island. \1\ USET SPF is dedicated to promoting, protecting, and
advancing the inherent sovereign rights and authorities of Tribal
Nations and in assisting its membership in dealing effectively with
public policy issues.
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\1\ USET SPF member Tribal Nations include: Alabama-Coushatta Tribe
of Texas (TX), Catawba Indian Nation (SC), Cayuga Nation (NY),
Chickahominy Indian Tribe (VA), Chickahominy Indian Tribe-Eastern
Division (VA), Chitimacha Tribe of Louisiana (LA), Coushatta Tribe of
Louisiana (LA), Eastern Band of Cherokee Indians (NC), Houlton Band of
Maliseet Indians (ME), Jena Band of Choctaw Indians (LA), Mashantucket
Pequot Indian Tribe (CT), Mashpee Wampanoag Tribe (MA), Miccosukee
Tribe of Indians of Florida (FL), Mi'kmaq Nation (ME), Mississippi Band
of Choctaw Indians (MS), Mohegan Tribe of Indians of Connecticut (CT),
Monacan Indian Nation (VA), Nansemond Indian Nation (VA), Narragansett
Indian Tribe (RI), Oneida Indian Nation (NY), Pamunkey Indian Tribe
(VA), Passamaquoddy Tribe at Indian Township (ME), Passamaquoddy Tribe
at Pleasant Point (ME), Penobscot Indian Nation (ME), Poarch Band of
Creek Indians (AL), Rappahannock Tribe (VA), Saint Regis Mohawk Tribe
(NY), Seminole Tribe of Florida (FL), Seneca Nation of Indians (NY),
Shinnecock Indian Nation (NY), Tunica-Biloxi Tribe of Louisiana (LA),
Upper Mattaponi Tribe (VA), and the Wampanoag Tribe of Gay Head
(Aquinnah) (MA).
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Introduction
As the Committee is already aware, this has been a challenging year
of upheaval and uncertainty for the federal funding and programs due to
Tribal Nations, citizens, and communities in fulfillment of trust and
treaty obligations. Despite legal mandates for the provision of Tribal
programs and funding, as well as Tribal consultation requirements, the
Trump Administration continues to implement policy priorities without
first insulating Indian Country from impacts. These actions have
generated confusion, fear, and real consequences throughout Indian
Country. This includes freezing and potentially reallocating vital
federal funding, firing federal employees with vital expertise, and
proposing changes to programs important to Indian Country. We have also
been wrongly caught up in Administration efforts related to illegal
immigration and diversity, equity, and inclusion and environmental
justice programs.
From our perspective, these actions represent a misunderstanding of
our unique political status under the law and the United States' legal
requirement to deliver on its trust and treaty obligations. Each of the
mandates issued by the Administration has acknowledged that it is not
meant to affect ongoing legal requirements. Tribal-serving programs and
funding are legally required by trust and treaty obligations and
associated implementing statutes--they are not discretionary.
Now, we find ourselves impacted by what is currently on track to
become the longest shutdown in history, the effects of which are
intensified by the implementation of the Administration's policy
priorities, including Reductions in Force. On top of ongoing chronic
underfunding and its accordant challenges, Tribal Nations face the
problem of discretionary funding that is almost always delayed. Since
Fiscal Year (FY) 1998, there has only been one year (FY 2006) in which
appropriated funds for the Indian Health Service (IHS) and Bureau of
Indian Affairs (BIA) were released prior to the beginning of the new
fiscal year. Due to Congressional inaction and gridlock resulting from
unrelated issues, these delays in funding severely hinder the federal
government's execution of its trust obligations to Tribal Nations--
having destabilizing and disruptive effects on the provision of basic
government services in Indian Country. This includes vital programs and
services such as housing, law enforcement, road maintenance, social
services, and health care--to name a few. Tribal Nations have long
urged the federal government to insulate the federal fiduciary
obligation from its own failures to enact appropriations legislation.
This is not a question about addressing poverty and needs across
Indian Country. Our relationship is much more than this. This is
ultimately a question about honor, about fulfilling commitments and
promises. A nation's exceptionalism is grounded in these principles.
Inadequate and unstable Indian Country funding needs to be viewed as
unfilled treaty and trust obligations. This funding is not delivered on
the basis of poverty or for social welfare purposes. The federal
government's trust obligations are the result of the millions of acres
of land and extensive resources ceded to the U.S., in exchange for
which it is legally and morally obligated to provide benefits and
services in perpetuity--a debt that must be paid regardless of
political disagreement. At no point has the government fully delivered
upon these obligations, but we are currently forced to confront the
current shutdown during a period of remarkable uncertainty for Tribal
Nations, citizens, and communities, and the future composition of the
federal government.
Impacts of Federal Government Shutdown
As is becoming lamentably routine in Washington, the recent
shutdown was precipitated by political disagreement that doesn't
directly implicate Indian Country. Yet, because the majority of our
funding appears on the discretionary side of the federal budget, year
after year, the execution of the federal fiduciary trust obligation is
held hostage to partisanship and gridlock. As you are likely well-
aware, the 2018-2019 shutdown, given its historic length, nearly
brought the funding and services the United States is obligated to
provide to Tribal Nations to a halt.
The effects of the 35-day shutdown on the federal government's
execution of its trust and treaty obligations to Tribal Nations rippled
across Indian Country. More than 50 percent of BIA workers were
furloughed. And while nearly 60 percent of IHS employees were forced to
continue working without pay, as of late January, the agency had begun
to deny specialty care. This, combined with chronic underfunding,
resulted in tragic ends, up to and including loss of life in Indian
Country--all due to the federal government's inaction.
The current shutdown is also having negative impacts on Indian
Country, including USET SPF member Tribal Nations. While the IHS is
largely protected, thanks to Advance Appropriations, this represents
only one Tribal-serving agency within the federal government. With
federal funding comprising large swaths of Tribal budgets, member
Tribal Nations are beginning the fiscal year with additional
uncertainty and upheaval.
USET SPF member Tribal Nations are grappling with how to ensure
that citizens have access to federal nutrition programs--some are
already experiencing the impacts of the Women, Infants, and Children
(WIC) program exhausting state funds and now others are having to
determine how to feed their citizens in the absence of the Supplemental
Nutrition Assistance Program (SNAP). As the temperature continues to
drop this fall, at least twelve USET SPF member Tribal Nations,
including several in northern states, are without Low-Income Heating
Assistance through the Department of Health and Human Services. The
Centers for Disease Control and Prevention (CDC) is extremely delayed
in sharing disease prevalence data with our Tribal epidemiology center,
as South Carolina faces a measles outbreak and we enter influenza
season. We understand that some Tribal Nations are concerned about the
protection of ancestral remains and sacred sites when federal lead
agency staff are furloughed. In addition, because the authority expired
along with FY 2025 appropriations, member Tribal Nations cannot bill
Medicare for telehealth services to our elders. Finally, some Tribal
Nations are being forced to consider taking out lines of credit to
continue providing services to their citizens and communities.
With this in mind, it is critical that Congress and the
Administration work together to ensure the shutdown is lifted
expeditiously. The longer the shutdown continues, the greater the
likelihood of compounding impacts to essential services in Indian
Country--those that are the responsibility of the federal government.
Reductions in Force Do Not Uphold Trust and Treaty Obligations
While Tribal Nations are no stranger to shutdowns due issues
outside of our control, the Administration's policy decisions and
efforts to radically change the composition and functioning of the
federal government are compounding the shutdown's impact. At present,
much of the execution of federal trust and treaty obligations due to
Tribal Nations is reliant on personnel throughout the federal
government. These federal personnel provide direct services and
technical support, they oversee the provision of funding, including
through contracting and compacting, they share information, including
vital public health data, and engage in litigation on behalf of Tribal
Nations, among many other responsibilities. Prior to this
Administration taking office, Indian Country was keenly aware of
staffing shortages throughout the federal government, including those
at IHS and BIA with preexisting vacancy rate percentages in the double
digits. These shortages contribute to chronic failures to fully execute
upon trust and treaty obligations.
From the earliest days of this current Administration, as we do
with any Administration, Tribal Nations have approached the White
House, Office of Management and Budget (OMB), and numerous federal
agencies and departments in partnership to educate them on the unique
legal and moral obligations the United States holds to Tribal Nations,
citizens, and communities, and why these obligations supersede the
Administration's priorities related to the size and scope of the
federal government. This includes requests for exemptions for Tribal-
serving positions from the Administration's reductions in force--both
through the Department of Government Efficiency and now through OMB.
Despite this advocacy, many Tribal-serving positions have been
eliminated over the course of this year.
While, once again, the IHS has largely been protected from
reductions in force, we have seen numerous positions throughout the
Department of Health and Human Services eliminated, including the CDC,
National Institutes for Health, the Substance Abuse and Mental Health
Services Administration, and the Administration on Children and
Families. Over the course of this year, this has resulted in delays
and, in some cases, the cession of critical funds, services, and data
sharing for Tribal Nations.
In a recent filing in the American Federation of Government
Employees, AFLCIO, et al. v. U.S. Office of Management and Budget, et
al., and absent Tribal consultation, the Department of the Interior
(DOI) revealed the intent to abolish 2,050 positions in this current
round of Reductions in Force. This includes positions at the Bureau of
Land Management, Bureau of Ocean Energy Management, Bureau of
Reclamation, Bureau of Safety and Environmental Enforcement, Fish and
Wildlife Service, National Park Service, Offices of Contracting and the
Interior Business Center. Although the Bureaus of Indian Affairs and
Indian Education are not included in this filing, all of the
aforementioned agencies and departments are of importance to Tribal
Nations and trust and treaty obligations. These proposed staffing
eliminations are on top of Reductions in Force that took place within
the Department earlier this year, including those achieved from
Deferred Resignation and Voluntary Early Retirement, which were offered
to Indian Affairs personnel in spite of a March 17th memo stating,
``Indian Affairs programs and organizations are exempt from this
[voluntary early retirement/voluntary separation] window pending the
conduct of Tribal consultations.''
It is critical that this Administration and all branches of the
federal government recognize that IHS, BIA, and BIE are not the sole
agencies charged with delivering upon trust and treaty obligations.
Tribal Nations access funding and services throughout the federal
government, for which we have prepaid with our lands, resources, and
the lives of our ancestors. It is simply not enough to only protect
these agencies from the impacts of policy changes and position
eliminations. All Tribal-serving personnel, programs, and agencies must
be exempted and excepted from these actions in accordance with trust
and treaty obligations.
Advocacy through the Coalition for Tribal Sovereignty
Coming together in response to the early actions of the
Administration and currently at a total of 37 member organizations,
including USET SPF and many of our sister organizations testifying
today, the Coalition for Tribal Sovereignty \2\ (CTS) is a nonpartisan
collaboration of local, regional, and national inter-tribal policy-
focused non-profit organizations working together to safeguard Tribal
sovereignty and uphold the United States' delivery of trust and treaty
obligations to Tribal Nations, Tribal citizens, and Tribal community
members across the United States. As a coalition, the Tribal
organizations of CTS engage collectively with federal policy makers
regarding actions taken by Trump Administration and offers a framework
that enables member Tribal organizations to build consensus on key
messages, thereby allowing them to speak with one powerful, consistent
voice.
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Through this coalition, we have sent over 50 communications to the
Executive Branch beginning in early February of this year. Broadly,
these letters offer the following messages to the Administration:
Indian Country is being unintentionally swept up in the
Administration's broad implementation of its policy priorities;
and
Because of trust and treaty obligations, Tribal programs are
not like other federal programs and should be treated
differently; and
Tribal Nations and the Trump Administration have important
overlapping goals, and we must focus our energies on pursing
those goals together. We share a foundational understanding
that local communities, such as Tribal Nations, are best suited
to address their people's needs and to keep them safe. This
translates into a desire for the federal government to remove
barriers that prevent Tribal Nations from effectively caring
for our people; and
At present, however, our focus is being necessarily drawn to
protecting Indian Country from collateral harm caused by
imprecise implementation of Trump Administration priorities.
Our topline requests in these communications are:
Engage with us--prior to taking action--so we can help the
Administration understand how we fit into its carve-outs;
Affirmatively state that programs and funding delivered to
Tribal Nations and Tribal citizens and communities are
delivered in recognition of our unique political status and
trust and treaty obligations;
Exempt us from any pauses or reductions to federal funding;
and
Exempt all Indian Country-serving positions and offices from
any workforce reductions or hiring freezes.
We note and appreciate that several federal Departments have taken
some steps to clarify that implementation of the Administration's
Executive Orders and priorities should not impact the United States'
delivery on trust and treaty obligations. However, it is not clear that
this is resulting in appropriate action to protect federal Indian
programs and funding or the federal employees who see that trust and
treaty obligations are carried out. For example, in Department of
Interior (DOI) Secretarial Order 3416 issued on January 30th, designed
to implement the Administration's policy priorities related to
elimination of Diversity Equity, Inclusion, and Accessibility (DEIA)
initiatives, DOI said ``[n]othing in this Order shall be construed to
eliminate, rescind, hinder, impair, or otherwise affect activities that
implement legal requirements independent of the rescinded equity-
related EOs, including but not limited to . . . the statutory
authorities, treaty, and/or trust obligations of the Department and its
Bureaus/Offices to Tribal nations.'' Despite DOI's recognition that the
federal government owes Indian Country trust obligations, including
spelled out in statutory authorities and treaties, DOI continues to cut
important Indian Affairs funding and reduce the number of federal
employees serving Indian Country. This continues as DOI is engaged in
Tribal consultation on workforce optimization.
More recently, CTS wrote to OMB \3\ to urge that it to promptly
issue a directive to all federal agencies exempting federal employees
serving Tribal Nations, Tribal citizens, or Tribal communities from any
Reduction in Force (RIF) actions or furloughs. This directive would be
consistent with trust and treaty obligations and the President's
priorities, as well as authorized by the Anti-Deficiency Act. However,
not only have we not seen a response to this letter from OMB or the
White House, we also have not seen any directive that would protect the
positions charged with executing on sacred trust and treaty
obligations. We continue to seek a joint meeting with OMB in order to
brief its leadership on its responsibilities to Indian Country.
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Support for Codification and Expansion of Advance Appropriations
USET SPF continues to express its gratitude for the historic
achievement of advance appropriations for IHS. Thanks to advance
appropriations, the agency's clinical services have experienced
budgetary certainty during this shutdown and in the face of several
continuing resolutions. However, there remain opportunities to codify
this practice for IHS and work to expand this mechanism to all Tribal
offices, programs, and funding throughout the federal government.
The vast majority of funding for Indian programs, including IHS,
appears on the discretionary side of the budget. That our funding is
vulnerable to governmental inaction and partisanship is a failure of
the federal government to honor its sacred duty to Tribal Nations. In
the short-term, all federal Indian funding must be protected from
shutdowns and continuing resolutions through advance appropriations
legislation. This would ensure that the federal government continues to
meet its obligations regardless of politics and provide some certainty
to our people, patients, and employees each year. It would also bring
our funding into parity with other discretionary programs that the
federal government deems critical, including those at the Department of
Education, Department of Housing and Urban Development, Department of
Labor, and the Department of Veterans Affairs which are authorized for
advance appropriations. Finally, it would represent a more complete
recognition of the federal trust responsibility and obligations.
With this in mind, USET SPF lends its unequivocal support to
legislation that would put an end to the instability of CRs and
shutdowns for all federal Indian agencies, programs, and funding. This
includes strong support for advance appropriations authority for both
IHS and BIA. USET SPF strongly supports S. 2771, the Indian Programs
Advance Appropriations Act (IPAAA), which would enshrine in statute
advance appropriations for IHS, BIA, and BIE. Passage of this
legislation, and the certainty it would bring, is long overdue.
Indian Country Funding Mechanisms Need Comprehensive Overhaul
While we strongly support advance appropriations as a vital
mechanism to bring certainty in the short-term, in the long-term USET
SPF is calling for a comprehensive reexamination of federal funding
delivered to Indian Country across the federal government. Because of
our history and unique relationship with the United States, the trust
obligation of the federal government to Native peoples, as reflected in
the federal budget, is fundamentally different from ordinary
discretionary spending and should be considered mandatory in nature.
Inadequate funding to Indian Country needs to be viewed as unfilled
treaty and trust obligations and should not be vulnerable to year to
year ``discretionary'' decisions by appropriators. Recently, some in
Congress have called for mandatory funding for specific agencies
serving Indian Country. USET SPF strongly supports this proposal, which
is more consistent with the federal trust obligation, and urges that
this be expanded to include all federal Indian programs. Notably,
earlier this week, Brookings issued a report calling for advance
appropriations in the short-term and mandatory funding in the long-term
for Tribal-serving agencies and programs.
Further, with a renewed focus on domestic issues and putting
America first, this focus must also include a commitment to rebuilding
the sovereign Tribal Nations that exist within the domestic borders of
the United States. Much like the U.S. investment in the rebuilding
European nations following World War II via the Marshall Plan, the
legislative and executive branches should commit to the same level of
responsibility to assisting in the rebuilding of Tribal Nations, as our
current circumstances are, in large part, directly attributable to the
shameful acts and policies of the United States.
Further, USET SPF is urging the expansion of self-governance, along
with P.L. 102-477 authority, to all federal agencies, programs, and
funds. Much of the federal funding across Indian Country is delivered
through the competitive grant process (and often through the states).
Not only is this an abrogation of the federal trust responsibility to
force Tribal Nations to compete for federal dollars, the competitive
grant process often precludes Tribal Nations from having access to
those dollars at all. Grant funding fails to reflect the unique nature
of the federal trust obligation and Tribal sovereignty by treating
Tribal Nations as non-profits rather than governments. Self-governance
Contracting and Compacting should be an available option across the
federal system.
In addition, USET SPF urges Congress to exercise its oversight
authority in determining how much actual funding actually reaches
Indian Country. The Office of Management and Budget (OMB) asserts that
over $30 billion in federal dollars is appropriated to Indian Country
annually. From the perspective of Tribal advocates, including those who
serve on budget formulation committees for federal agencies, this
number seems to be widely inflated, with far less actually reaching
Tribal Nations and Tribal citizens. We suspect that OMB arrives at this
figure by tallying the amount for which Tribal Nations and entities are
eligible, regardless of whether these dollars actually reach Indian
Country. Both USET SPF and the Tribal Interior Budget Council (TIBC)
have asked OMB for a full accounting of federal funding distributed to
Indian Country. To date, OMB has not responded to this request. USET
SPF firmly believes that this information is absolutely essential to
the measurement of the federal government's own success in meeting its
obligations and the work of Tribal Nations. More than ever, it is
important to understand how OMB quantifies federal spending to Tribal
Nations, citizens, and communities, including how it determines whether
to continue supporting Tribal-serving funds, programs, and personnel.
Conclusion
USET SPF urges this Congress to act swiftly to bring the
destabilizing effects of its own inaction to an end for Indian Country.
It is critical that the federal government reopen and resume delivering
upon trust and treaty obligations. We also ask that this body do more
to protect the execution of trust and treaty obligations from the
damaging effects of volatility in federal policy. One way to do this is
to ensure we are insulated from continuing resolutions and government
shutdowns. In the long-term, and in pursuit of a relationship more
reflective of this obligation, USET SPF urges this Committee, Congress,
and all branches of the federal government to ensure that full and
mandatory funding for trust and treaty obligations is realized in our
lifetimes. USET SPF thanks the Committee for the opportunity to testify
and looks forward to partnering with its members to bring this to
fruition.
The Chairman. Thank you so much, Vice Chairman.
Next we turn to Mr. Mallot. Welcome.
STATEMENT OF BEN MALLOT, PRESIDENT, ALASKA FEDERATION OF
NATIVES
Mr. Mallot. Thank you, Senator, and Vice Chair Schatz,
members of the Committee.
Thank you for having this hearing today. It is really
critical and timely for our tribal communities.
My name is Ben Mallot, as Senator Murkowski mentioned. I
have the honor to serve as president of AFN. AFN is Alaska's
largest statewide Native organization. Membership includes over
170 federally-recognized tribes, 154 regional corporations, 11
regional corporations and regional non-profits, over 160,000
Alaska Natives.
As I went through working on my testimony for today, I
reached out to all of our member organizations. I am lucky to
hear that most of our tribal organizations and communities
prepared for the shutdown. But as we approach 30 days of
shutdown, many of them did not prepare for that long of a
shutdown.
As you mentioned, we are in day 29. A prolonged shutdown in
Alaska becomes life-threatening for many of our communities. It
also delays ability for our tribes who are very capacity
strained to do reporting, and to also work on additional
permits and grants. It is critical for Alaska, our construction
season, it is summer right now, is when our tribes have to get
orders in for doing infrastructure and critical supplies for
our communities.
Also, while many of our tribes and organizations planned
for a shutdown, we cannot always plan for weather. As Senator
Murkowski mentioned, on October 12th, we had a very serious
typhoon that hit Alaska. It was no other typhoon that hit
Alaska in our history, and over thousands of Alaska Natives
were evacuated to Anchorage.
I want to thank the work of the Federal Government in the
State of Alaska, and also our delegation, your team, Senator
Murkowski, for responding to the storm. It is really critical
that we have these employees responding.
It is also critical that they get paid for their work in
responding to save our communities. I recognize that. I want to
thank the many Federal employees who are working right now in
response to the storm who are not getting paid right now.
Also, I recognize that during this storm event, IHS allowed
organizations such as YKC to respond immediately to this storm.
I want to thank and also highlight, so members of this panel
will know, how important in this event IHS is for our
communities.
Also, as we go into the impact of the shutdown, I cannot
highlight enough just how food security is critical for us
right now. As SNAP is about to end on Friday, we are looking at
the ability for our communities to decide between heating and
fuel. For example, right now, in Kotzebue, Alaska, a gallon of
milk is $12.99, a 24-count of eggs is $13.19. A four-pack of
bathroom tissue, just the single ply, is $8. A loaf of bread is
over $6. Stove oil is $7.79. Six cans of corned beef hash is
$39.89. Without SNAP and without LIHEAP, it is critical for our
communities to decide between heating and fuel.
Right now, I looked up the weather and in Utqiagvik it is 3
degrees but it feels like minus 9. And Bethel is 17 degrees.
Kotzebue is 15 degrees. My mom's home village of Rampart is 21
degrees with light snow, and my father's hometown of Yakutat,
which is a lot further south is a balmy 35 degrees.
We are right now in November, or almost November. It is
going to get colder. Without LIHEAP, without SNAP, our
communities and tribal citizens will have to decide between
fuel and food. In Anvik, 65 percent of the revenue from their
store comes from SNAP. In Riaktat [phonetically], about $2,000
a week comes from SNAP.
In these communities, such as Anvik and Riaktat, the
villages store is often the most stable jobs in the community.
It is critical for this to happen.
LIHEAP is also critical for our communities, as I
mentioned, especially for elders. They are going to decide
between heat and fuel. In some of our communities, elders are
there alone and may not have family to help them with food
security.
Also during this time, with the government shutdown, also
that could cause cancellations more specifically around the
Federal Subsistence Board, which is unable to meet right now.
During the pandemic, the Federal Assistance Board was able
to open up mercy hunts to allow communities and tribal
organizations and tribes, to open up and get moose for food
security during the pandemic. During this shutdown, they cannot
meet.
Also delays in the ability for regional advisory committees
to meet and also have no local voice in food security at this
time. What this does also impacts our progress, as Alaska is a
very large State with very difficult travel. To reschedule a
meeting of FSB or reschedule a meeting takes a lot of
coordination and could put these meetings back months.
I want to close right now, but right now the impact is
still uncertain for many of the communities. The RIFs, we don't
know what will happen until the government reopens. When that
happens, we do not know.
Right now, the burden of many of our local communities is
actually on the shoulders of our tribes and local ANCs. We
don't know the impact until the government reopens and we are
worried that as the government reopens there might be delays in
getting funds necessary to our communities in a timely manner.
With this said, as members of this panel will say, we urge
the Committee to be innovative, look at how we will reopen
government and support our tribal communities.
With that said, I will close. Again, quyana, gunalcheesh,
for this hearing today. And thank you for your leadership,
Senator Murkowski.
[The prepared statement of Mr. Mallot follows:]
Prepared Statement of Ben Mallot, President, Alaska Federation of
Natives
I. Introduction
Chairman Murkowski, Vice Chairman Schatz, and members of the
Committee:
Thank you for inviting me to speak with you today regarding the
impacts of the ongoing federal government shutdown and agency
reductions in force on our Alaska Native communities. I would like to
offer a special thank you to Senator Murkowski for her leadership in
advocating for Alaska and for the Alaska Native people.
My name is Ben Mallott, and I serve as the President of the Alaska
Federation of Natives (AFN). AFN is the largest statewide Alaska Native
organization. Our membership includes over 140,000 Alaska Natives and
their institutions set up to serve our people. AFN's membership
includes federally recognized tribes, regional tribal consortiums,
regional non-profit organizations, and Alaska Native Claims Settlement
Act (ANCSA) village and regional corporations.
Many of our tribal organizations have worked hard to position
themselves to weather the impacts of a shutdown. Alaska Native entities
receiving federal assistance engage in best practices to prepare for
and utilize all available funding prior to a lapse in federal
appropriations to keep our programs stable and our operations
uninterrupted to the greatest extent possible during a shutdown. But
when a shutdown drags on for a prolonged period, there is little we can
do to keep the impacts to our organizations and communities at bay.
Tomorrow we will hit the critical 30-day mark of the shutdown, and our
organizations will be facing difficult realities and decisions about
the ability to carry out certain programs and whether tribal staff must
be laid off. A prolonged shutdown places many Alaska Native entities
and communities in a difficult and potentially life-threatening
position. So please keep in mind that the impacts I raise today will
continue to grow until the shutdown ends.
II. Impacts of the Federal Government Shutdown and RIFs
a. Disaster Recovery for Western Alaska
I would be remiss if I did not start my remarks by acknowledging
that our communities in Western Alaska's Yukon-Kuskokwim Delta are
still reeling from the devastating impacts of Typhoon Halong, which
struck our state on October 12. Disaster recovery in this region is
unlike other regions in our country. These communities are remote with
no access to roads and are hundreds of miles from cities to where these
residents must evacuate. Both short and long-term recovery efforts are
complex, and reliable communication with federal agencies assisting in
disaster recovery like FEMA is essential. While the federal government
is working on immediate response to Typhoon Halong, the shutdown
creates further complications and uncertainties for our communities in
the region devasted by the Typhoon. Many of the people forced to
evacuate the region now face a lengthy recovery process that will
require substantial engagement with the federal government. Any delay
or confusion caused by the shutdown adds a tremendous burden to our
already hurting people in the region. Relief efforts are being
supported by federal employees working without pay. We appreciate these
workers' vital contributions, and we want to see them be paid for their
work, including back pay for their unpaid work these past few weeks.
Threats to Food and Heat Availability and Assistance
We are deeply concerned about the impacts of the shutdown and its
implications for food availability and assistance in Alaska. From the
Federal Subsistence Board to SNAP benefits, the shutdown is threatening
the availability of food in our Alaska Native communities. This is
compounded by the fact that winter is upon us in Alaska. As
temperatures approach 0 degrees up north, a gallon of milk is $13. Our
people are about to be in the very real situation of having to pick
between food and heat.
Our people rely heavily on subsistence to feed our families and to
fill freezers to get through the long, dark winters. Subsistence
activities on federal lands are managed through the Interior
Department's Federal Subsistence Board, which has canceled its Regional
Advisory Committee meetings across the state in October. These meetings
are critically important for governance of the subsistence system our
rural Alaska Native communities depend on to survive.
SNAP benefits expire on Friday, and it will have a devastating
impact in Alaska. SNAP serves approximately 66,000 Alaskans, including
thousands of Alaska Native peoples who live in remote or economically
disadvantaged regions. The State of Alaska has confirmed that due to
the federal shutdown, November benefits will not be issued to SNAP
recipients, removing a critical food security lifeline for families and
individuals. The loss of SNAP benefits will deepen food insecurity and
threaten the well-being of Alaska Native elders, children, and
families. Further, the lack of SNAP benefits will overwhelm informal
food assistance programs or organizations, such as food banks, in
communities where they exist, to say nothing of the impacts for
communities where they do not exist.
The shutdown will also pose a threat to vulnerable households
across the state that rely on federal assistance for heating their
homes, such as the Low Income Home Energy Assistance Program (LIHEAP).
New funding for the LIHEAP program will be unavailable during the
shutdown, undermining a critical support system for Alaska Native
families and elders during harsh winter conditions. At least one Alaska
Native housing authority had to tell their community members that while
they will take new LIHEAP applications during the shutdown, payments
are on hold until the shutdown ends.
A continued shutdown will force too many Alaska Native families,
elders, and people to choose between basic human needs such as food or
home heating during the winter months.
b. Lack of Consultation
Lack of federal employees carrying out federal agency actions and
responsibilities compromises the government's legal requirements to
engage in meaningful consultation with Tribes and Alaska Native
Corporations. Internal agency training and education is an essential
part of building the right agency talent and capacity to engage in
meaningful consultation, especially in Alaska, where additional
training is required to educate agency professionals about the unique
status of Native land and the unique and diverse systems of Native
governance in Alaska. It often takes years for the right relationships
to be built. Simply put, reductions in workforce at both the regional
and headquarters levels compromise the ability of federal agencies to
meet their consultation obligations.
And during a shutdown--especially one as long as the current lapse
in appropriations--there is essentially no path for our communities to
engage in real discussions with agency personnel making key decisions
affecting our livelihoods. For example, as mentioned above, the Federal
Subsistence Board is canceling or delaying its Regional Advisory
Committee meetings across the state in October, which are critically
important for governance of the subsistence system our rural Alaska
Native communities depend on to survive.
c. Impacts to Health Care
While other witnesses today will speak more on the impacts of the
shutdown on Tribal health, I want to share with you concerns raised by
Alaska Native health care providers.
We deeply appreciate Congress providing the Indian Health Service
(IHS) advance appropriations. This has been very helpful to insulate
IHS programs from the government shutdown. However, there are a number
of Tribal health programs and services that are not included in the
advance appropriations that are being affected. While Tribes have been
paid health services and other related funding, they have not been paid
contract support costs, 105(l) lease payments, or certain other
facility services that are needed to support health operations.
Contract support costs help fund the administrative and overhead costs
associated with carrying out health services. The 105(l) lease payments
help to fund maintenance and improvement activities for health
facilities. These types of payments are not being processed during the
shutdown under a lapse in appropriations.
The shutdown also impacts other aspects of Tribal health. For
example, the Centers for Medicare & Medicaid Services Tribal Technical
Advisory Group (CMS TTAG) may have to cancel its upcoming meeting if
the shutdown is still in effect. The TTAG is an important advisory body
to the CMS Administrator providing expertise on CMS policies,
guidelines, and programmatic issues affecting IHS and Tribal health
programs. Medicaid is one of these extremely important programs, which
provides from 40-60 percent of funding for IHS and Tribal programs.
This upcoming meeting is very important for the TTAG since they are
working with CMS to develop operational guidance and recommendations to
implement several Tribal provisions included in the One Big Beautiful
Bill Act.
III. Conclusion
Thank you again for inviting me to speak today. I look forward to
answering any questions you may have about our Alaska Native
communities and the shutdown impacts discussed here today.
The Chairman. Gunalcheesh, Ben.
Mr. Bird, welcome.
STATEMENT OF KERRY D. BIRD, PRESIDENT, NATIONAL INDIAN
EDUCATION ASSOCIATION
Mr. Bird. Thank you, Senator Murkowski. Good afternoon.
My name is Kerry Bird. I am the President of the National
Indian Education Association. I am a citizen of the Sisseton
Wahpeton Oyate of South Dakota, and a descendant of the Lumbee
Tribe of North Carolina.
On behalf of the NIEA, the students, educators and tribal
nations we serve, I am here today to share the distressing
situation facing our Native youth, a situation which
intensifies each day the shutdown continues.
Across the Country, the shutdown and reductions in force
have crept into our classrooms, our early childhood programs
and our homes. What began as a budget dispute in Washington has
become a daily crisis in Indian Country.
When our ancestors signed treaties with the United States,
they did so in exchange for certain guarantees. One of these
was that our children and our children's children would be
educated. This obligation is not a discretionary choice; it is
a payment on a debt owed.
These promises are what every Native parent holds onto when
they send their child to school each morning. It is what keeps
a principal in Shiprock, New Mexico and a Head Start worker in
Sisseton, South Dakota, showing up, even when the Federal
Government is not.
At the Department of Education, the Office of Impact Aid,
which provides $1.6 billion annually to federally-impacted
school districts, has come to a standstill. With the staff
furloughed for over a month and no forward funding, essential
payments have not arrived.
In South Dakota, Montana and New Mexico, school districts
are burning through reserves just to meet payroll. For some
schools, these dollars make up 50 percent of the budgets which
keep them open.
The situation is just as severe at the Administration for
Children and Families. Beginning on November 1st, 12 American
Indian and Alaska Head Start grantees serving over 2,500
children will face an immediate funding shortfall.
The Cherokee Nation in Oklahoma has already prepared to
step in to keep their centers open. But smaller tribes across
the Country may not have the reserves. They are being forced to
decide between keeping their early childhood classrooms open or
feeding their communities, as SNAP and nutrition programs also
face funding gaps.
This is not a choice tribal nations should ever have to
make. These impacts show the fragility of the system. Programs
that were designed to uphold the Federal Government's moral and
legal promises are now being held hostage.
Thankfully, while other agencies have gone dark, BIE
offices and schools have stayed open, not because the system is
immune to the shutdown, but because the government understands
that Federal employees within the BIE are unique and must be
protected.
The administration has designated all BIE staff as excepted
or exempted. Teachers are still in classrooms, bus drivers are
still on their routes, dormitory staff are still caring for
students far from home. That is how it should be. And how it
would always be if the entire system were to receive advance
appropriations.
Meanwhile, Native students outside of BIE schools are at
unique risk. More than 90 percent of Native children attend
public schools, many in rural reservation-adjacent districts
which depend on Federal programs such as Title VI, Impact Aid,
and Johnson-O'Malley. Like Impact Aid, JOM is not forward-
funded. During a shutdown, payments to tribal contractors and
Indian Parent committees are frozen. That means tutoring stops,
after-school support is canceled while communities wait for
Washington to act.
For many native families, JOM is one of the only visible
signs that the Federal Government remembers its educational
promise to their children. The Indian Programs Advance
Appropriations Act would fix would this by ensuring all BIE
accounts, not just school operations, are fully insulated from
shutdowns. This Committee's leadership, combined with the
support of appropriators, has already shown how this approach
works by protecting IHS.
This Committee is critical to making that happen for the
rest of our programs. We urge this Committee to educate your
peers and protect tribal-serving offices and accounts from any
future attempts to play politics with the Federal Government's
solemn obligations.
At the Department of Education, the Office of Elementary
and Secondary Education has been hollowed out. According to
court filings earlier this month, more than 130 positions have
been eliminated on top of staff reduction in the spring. Of the
282 employees who staffed the office just a year ago, fewer
than 100 remain.
Twenty-nine days ago, the entire Office of Indian Education
was furloughed. As of 15 minutes ago, we have official
confirmation that seven of nine staff in the same office have
been terminated. That means no one to process grants, approve
budgets, or support tribal education departments and Indian
Parent committees.
If these terminations are allowed to go into full effect,
the Indian education programs as we know them would be
functionally eliminated.
But it is not OIE alone that is at risk. The Office of
Impact Aid, which supports 537 Indian land school districts,
alongside millions of military connected students, has been
almost entirely laid off. The United States trust obligations
cannot be fulfilled if the Federal staff responsible for
carrying it out no longer exist. If these workforce reductions
continue, and if shutdowns are allowed to repeatedly disrupt
the flow of education funding, the United States will be in
direct violation of its trust and treaty obligations.
Education is a promise to our people as part of the
guarantees this Nation made. It cannot be withheld because of
political stalemates or administrative restructuring.
Today, I ask you to keep that promise. I ask Congress to
reopen the Government. I ask you to work with the
administration to rescind the RIFs that target tribal-serving
staff, and to make sure that Native children will never again
be caught in the crossfire of political shutdown.
Thank you for your attention to this urgent matter and for
your continued commitment to upholding the promises made to
tribal nations and Native students. Thank you.
[The prepared statement of Mr. Bird follows:]
Prepared Statement of Kerry D. Bird, President, National Indian
Education Association
On behalf of the National Indian Education Association (NIEA) and
students, educators, and Tribal Nations we serve, thank you for this
opportunity to provide testimony regarding the challenges we face in
the ongoing federal government shutdown. NIEA was founded to advance
comprehensive, culture-based educational opportunities for American
Indians, Alaska Natives, and Native Hawaiians and to advocate for
educational excellence by working to ensure that students receive high-
quality academic and cultural education.
Rooted in treaties between Tribal Nations and the federal
government, the U.S. Constitution, federal law, and U.S. Supreme Court
decisions, the federal government has a direct fiduciary responsibility
to Tribal Nations and their citizens. The trust and treaty
responsibility is an acknowledgement that the debt paid for by our
ancestors through the loss of life and land, is to be paid for, in
part, with education. Currently, Tribal Nations, Native education, and
the programs which serve them face an escalating crisis. The disruption
of critical federal operations, delays in funding, and deteriorating
capacity of federal offices due to Reductions in Force (RIF) are
threatening the very core of educational obligations to Native
children. The federal government is at risk of directly violating the
United States' trust and treaty obligations to Tribal Nations by
dismantling the very offices charged with carrying them out.
I. Department of Education
The Department of Education (ED)'s Office of Elementary and
Secondary Education (OESE) has been hollowed out. According to the
court documents filed on October 10th in the U.S. District Court for
the Northern District of California, ED eliminated 132 positions within
OESE. These RIFs follow an already thinned agency following the 47
percent reduction in staff on March 10, 2025. Of the 282 full-time
employees who staffed OESE in 2024, fewer than 100 remain. Those who
remain are largely political appointees, office directors, and staff
whose roles align with the administration's priorities. As far as NIEA
has been notified, the Office of Indian Education (OIE) has not been
exempted from these RIFs, and if they are carried out to their fullest,
are at risk of being functionally eliminated. The entire OIE staff,
including its director, were furloughed at the beginning of the
shutdown and now face the potential that they will be formally
terminated as soon as the government reopens, or as soon as they are
legally allowed to access their emails.
The Office of Impact Aid, which primarily exists to care for school
districts which serve military families and Native children on federal
lands, has reportedly been entirely laid off except for its director.
Nationwide, every school district which relies on Impact Aid, including
the 537 Indian land school districts are feeling an extreme tightening
of their budgets as Impact Aid is not forward funded. Annually, Impact
Aid provides approximately $895 million to school districts with
federal Indian trust lands, most of which are in western and rural
states. The National Indian Impacted Schools Association reports that
there are school districts in Minnesota, Montana, and South Dakota who
have reached out in frustration as they may reach a critical funding
tipping point in the coming weeks. Without these payments, schools are
now drawing down reserves and as the shutdown continues could face
cutting essential staff and services, with many reporting a tipping
point in the coming weeks. Further, the elimination of the Impact Aid
staff means that payment calculations, reimbursements, and compliance
reviews will not be processed in a timely manner and face not being
processed at all. These schools not only need the federal government's
help, they are owed it.
The United States' trust and treaty responsibility for education is
not discretionary. Through binding treaties, statutes, and court
decisions, the federal government promised to provide educational
opportunities for Native children, obligations prepaid with Tribal
lands and resources. The Office of Indian Education and other positions
across ED, exist to uphold those promises. OIE administers Title VI of
the Every Student Succeeds Act, providing over $110 million in annual
grants to more than 1,200 school districts and Tribal entities serving
roughly 423,000 Native students nationwide. These programs sustain
Native language and culture, academic enrichment, and community-driven
educational priorities. With OIE staff furloughed or terminated, no one
remains to process or disburse funding agreements, approve carryover
budgets, or provide technical assistance. As a result, Tribal Education
Departments, school districts, and Indian Parent Committees would be
forced to suspend programs, cancel services, and delay hiring, placing
schools and students in limbo across Indian Country.
The situation is equally dire for Alaska Native and Native Hawaiian
Education programs, which together support roughly $80 million in local
education projects focused on Native language revitalization, cultural
restoration, and STEM education in remote and rural areas. If program
administrators are lost, there would be no one to monitor active grants
or process new awards. The Office of Rural and Native Education, which
includes the Alaska Native Education and Native Hawaiian Education
programs, will at the very least feel the strain of significantly
diminished staff across OESE, and at worse face the potential of also
having their administrators terminated. For communities already
grappling with difficulties in some of the most remote districts of the
United States, this abrupt disruption undermines years of progress and
the selfdetermination these programs were designed to support.
II. Administration for Children and Families
Beyond the Department of Education, the shutdown and related
workforce reductions have also severely disrupted Tribal early
childhood, child welfare, and family support systems administered
through the Administration for Children and Families (ACF) within the
Department of Health and Human Services (HHS). Head Start remains one
of the most critical federal investments in Native communities,
providing culturally grounded early childhood education, nutrition, and
family support services that lay the foundation for lifelong learning
and wellbeing--services which are irreplaceable, especially in rural
Tribal areas where there are no alternatives. As the shutdown drags on,
the already difficult situation for Head Start programs continues to
worsen. On November 1st, 12 AIAN Head Start grantees, serving almost
2,500 students and employing almost 600 staff members, face a dire
funding gap. Tribes across Arizona, California, Michigan, Minnesota,
Montana, Oklahoma, and Washington are looking for contingencies to
cover the gap the federal government has left them with. In the best
case, Tribes which have the funding to cover the gap in the meantime
are able to step in. The largest November 1 grantee, the Cherokee
Nation, is prepared to do just that. However, if any Tribes are
stretched too thin, covering these programs alongside nutrition and
other critical services to their communities, these Head Start programs
would face closure. At least one AIAN Head Start program in Michigan is
facing such a situation. Tribal Nations should not be forced to choose
between food for their communities and keeping educational and child
care institutions open. The longer the shutdown continues, the more we
will be forced to make impossible decisions.
ACF, alongside the Bureau of Indian Affairs, provide the primary
federal funding that allows Tribal child welfare programs to keep
children safe and families intact. If the shutdown extends beyond 30
days, those critical services face disruption, including the assistance
that Tribes provide to state child welfare cases involving Native
families. At ACF, continuing staff reductions, regional office
closures, and now the shutdown have created an unrelenting cycle of
disruption. According to the National Indian Child Welfare Association,
Tribal Nations have been unable to access timely information on FY 2026
funding applications, reporting requirements, or technical assistance.
The cancellation of two Tribal consultations on the Supporting
America's Children and Families Act (P.L. 118-258), along with the
cancellation of the November ACF Tribal Advisory Committee meeting, has
further cut off communication. ACF had planned to share critical
updates on technical assistance and the approval process for Tribal
Title IV-B Child Welfare grant applications, but that information
remains unavailable. The lack of communication, access, and timely
funding has left Tribal Nations in an untenable position, while
vulnerable Native children, families, and state partners are left
wondering whether Tribal services and support will be available at all.
These impacts bleed across servings and are acutely felt in Tribal
communities. All members of the ACF Tribal Engagement Team, the five
Native staff who collectively advised all ACF divisions on how to
better serve Tribal Nations, have been furloughed. Their absence leaves
a critical void in agency coordination and cultural understanding
across child welfare, early childhood, and family support programs.
Meanwhile, we know that the US Department of Agriculture (USDA) and the
Department of Justice (DOJ) are continuing forward with their
consultations. Our children deserve the same.
III. Bureau of Indian Education
While we are deeply concerned about the effects of the shutdown
across federal agencies, we are grateful that nearly all Bureau of
Indian Education (BIE) staff have been designated as ``excepted'' or
``exempted'' employees and have continued reporting to work to sustain
critical school operations. In direct contrast to the widespread
furloughs and Reductions in Force (RIFs) now affecting the Department
of Education and ACF, BIE staff have been rightfully protected. Their
continued presence reflects the importance of education as a trust
responsibility and ensures that instruction and student services
continue uninterrupted across both BIE-operated and Tribally Controlled
Schools.
However, the shutdown still reveals critical vulnerabilities within
the BIE system. While core school operations are forward funded,
ensuring that teachers and staff can be paid, Operations and
Maintenance (O&M) appropriations are not forward funded and depend on
annual appropriations which have now expired. These dollars pay for
essential services such as heating, electricity, water, sanitation,
safety inspections, and emergency repairs for more than 180 BIEfunded
school facilities. Without new appropriations, O&M funds cannot be
obligated or reimbursed, leaving superintendents and facilities
managers scrambling to maintain safe and healthy learning environments.
Many schools, especially in northern, rural states, rely on these funds
for fuel deliveries and winterization contracts. A prolonged shutdown
could delay those contracts, resulting in facility closures, unsafe
conditions, or costly emergency responses later in the fiscal year.
The Indian Programs Advance Appropriations Act would directly
address this issue by ensuring that the entirety of the BIE receives
not only forward funding but advance appropriations, fully insulating
Tribal schools from the disruptions of annual funding lapses. This
measure represents the final step in safeguarding BIE schools and
students from shutdowns and the political uncertainty of continuing
resolutions.
As mentioned previously, changes and furloughs within the ED
affecting Impact Aid and Title VI programs, have left Native-serving
education programs and funding at public schools extremely vulnerable.
As early as 1934, Congress recognized that the federal trust and treaty
obligation to education must support all Native students, regardless of
where they attend school. The Johnson-O'Malley (JOM) program was
created to support students in public schools, and unlike the rest of
the BIE program funds, JOM is not forward-funded. The JOM program
supports supplemental academic, cultural, and youth programming for
nearly 300,000 Native students nationwide. During a shutdown, payments
and reimbursements to Tribal contractors and Indian Parent Committees
are frozen, halting tutoring, after-school programs, and cultural
activities that have already been planned and budgeted for the school
year.
While the BIE is in the better of the scenarios of each of these
agencies, it is by no means completely protected. BIE schools also
receive funds from the Department of ED, funds which may be slowed or
paused as the shutdown continues. BIE schools may struggle to pay for
last minute maintenance costs. And public schools serving Native
students may not receive funding from JOM or Impact Aid and even face
the possibility of Title VI and related funding being severely
diminished if RIFs are fully implemented in OIE. It is clear Indian
education needs a path forward with an open and operational federal
government.
IV. Conclusion
Across the board, it is clear that Indian Country needs support
immediately. By issuing RIFs that may eliminate a department's primary
Tribal liaison office, the federal government would effectively sever
its own consultation channel. In another department, cancelling
consultations amidst the moment which Tribal Nations most need to be
heard is not only frustrating, it is failing their needs. The moral and
legal implications could not be clearer. The United States' trust
obligations to provide education to Native children were not negotiated
as temporary or conditional. Congress must act immediately to reopen
the government, and we urge this Committee to work with the
Administration to walk back any planned or executed reductions to
Tribal-serving staff as soon as possible. Thank you for your attention
to this urgent matter and for your continued commitment to upholding
the United States' obligations to Tribal Nations and Native students.
The Chairman. Thank you, Mr. Bird.
Mr. Upton, welcome.
STATEMENT OF PETE UPTON, CEO, NATIVE CDFI NETWORK, EXECUTIVE
DIRECTOR, NATIVE360 LOAN FUND
Mr. Upton. Thank you, Chair Murkowski and Vice Chair Schatz
and the Committee for this opportunity to share today.
My name is Pete Upton. I am an enrolled member of the Ponca
Tribe of Nebraska. I serve as the CEO for the Native CDFI
Network, the only national membership organization dedicated to
supporting Native Community Development Financial Institutions.
I also serve as the Executive Director of Native360 Loan
Fund, a Native-certified CDFI serving Native people in
Nebraska, South Dakota, Kansas, and Iowa.
On behalf of NCN and the nearly 100 certified and emerging
Native CDFIs we serve, I express our grave concern regarding
the reduction in force action on October 10th to terminate all
CDFI Fund staff and abolish the CDFI Fund altogether. These
actions will economically devastate tribal communities.
According to a recent Federal Reserve study, 46 percent of
tribal communities are located in banking deserts. Native CDFIs
are typically the only financial institution serving these
communities, providing access to capital, credit, and financial
education where no alternative exists.
Abolishing the Fund will cause severe, immediate and long-
term harm to Native CDFIs' ability to serve the growing small
business, homeownership, agriculture, and consumer lending
needs of tribal communities, the needs long ignored by
mainstream banking institutions.
We are already experiencing the impacts. The Fiscal Year
2025 appropriated fands for the Native American CDFI Assistance
Program remain frozen with no Treasury staff at work to
finalize these agreements or release the awards, choking off
critical seed capital for the Native CDFIs whose average asset
size is just $5.8 million.
Meanwhile, dozens of Native CDFIs awaiting Treasury
certification, recertification, remain in limbo with no one to
process their applications.
The RIF and the looming abolishment of the Fund also spell
a demise for the New Markets Tax Credits Program, a key
financing tool that cultivates private investments in vital
economic and community development projects on tribal lands.
Without Fund staff to administer it, the latest double round of
New Markets Tax Credits won't be allocated to Native Community
Development entities or other CDEs serving Indian Country.
Also in danger is Congress' bipartisan push to expand and
make permanent the successful USDA 502 Native Relending
Program, which will enhance the Native CDFIs' proven ability to
foster homeownership among Native people by issuing them
mortgage loans on tribal lands.
Last and perhaps most troubling, abolishing the Fund will
end the Federal process of certifying CDFIs, the official stamp
of approval Native CDFIs use to secure investments from non-
Federal sources. This will dramatically reduce the flow of
capital for farm, ranch, and other business development,
housing and homeownership, and community infrastructure
projects when Indian Country's need for such capital increases
substantially with each passing year.
In the CDFI Fund's own words, Native CDFIs are helping
transform their communities, they are creating businesses and
jobs in places that desperately need them. They are providing
personal financial education and business training to persons
who have been excluded from our Nation's economic mainstream.
They are helping to change the lives of the people they serve.
The United States fulfills its trust and treaty obligations
to tribal nations in part by providing funding to Native
organizations like CDFIs that directly serve tribal nations and
their citizens. The CDFI Fund and the NACA program are not
handouts. They are practical fulfillment of those trust and
treaty obligations, ensuring Native people have the same access
to financial economic opportunities as all other Americans.
We thank and commend the 105 GOP members of Congress who
sent a letter to the administration last week in support of
CDFIs and the Fund, a resounding testament to the fact that
CDFIs are not a partisan issue. They deserve the continued
support of the Federal Government, so they can continue their
vital work, which can only happen if the administration's RIF
action and its plan to abolish the CDFI fund are abolished.
We stand ready to partner with you to achieve this goal.
Thank you.
[The prepared statement of Mr. Upton follows:]
Prepared Statement of Pete Upton, CEO, Native CDFI Network, Executive
Director, Native360 Loan Fund
On behalf of the Native CDFI Network (NCN) and the 65 Treasury-
certified Native community development financial institutions (CDFIs)
and nearly three dozen emerging Native CDFIs we serve across nearly 30
states, I welcome this opportunity to share with this Committee our
grave concern regarding the Reduction in Force (RIF) action of October
10, 2025 to terminate all CDFI Fund staff in keeping with the
Administration's plan to abolish the Fund altogether.
These Actions Will Economically Devastate Tribal Communities
According to a recent Federal Reserve Bank of Philadelphia study,
46 percent of Tribal communities are located in banking deserts, ``over
12 times the national average of 3.8 percent.'' \1\ Established in
large part to address these deserts, Native CDFIs are typically the
only financial institutions serving these communities, providing access
to capital, credit, and financial education where no alternatives
exist.
If left to stand, the RIF action of October 10th and the ensuing
abolishment of the CDFI Fund will cause severe immediate and long-term
harm to Native CDFIs' ability to serve the growing small business,
homeownership, agricultural, and consumer lending needs of Tribal
communities, needs that have long been ignored by mainstream banking
institutions.
Native CDFIs and the Tribal communities we serve are already
experiencing the impacts. Possessing an average asset size is just $5.7
million dollars, \2\ Native CDFIs rely heavily on Native American CDFI
Assistance (NACA) Program Financial Assistance (FA) and Technical
Assistance (TA) awards from the CDFI Fund to serve Tribal communities
and scale their operations to meet their growing needs. Yet, FY 2025
Congressionally appropriated funding for the NACA Program remains
frozen, with no Treasury staff at work to finalize agreements or
release awards, choking off this critical ``seed capital'' for Native
CDFIs. Meanwhile, dozens of Native CDFIs awaiting Treasury
recertification remain stuck in limbo, with no one to process their
applications.
The RIF and looming abolishment of the Fund also spell the demise
of the New Markets Tax Credits Program, a key financing tool that
cultivates private investment in vital economic and community
development projects on tribal lands. Without Fund staff to administer
it, the latest double round of New Markets Tax Credits won't be
allocated in part to Native Community Development Entities and other
CDEs serving Indian Country.
Also in danger is Congress's bipartisan push to expand and make
permanent the highly successful USDA Section 502 Native Relending
Program (see below), which will enhance Native CDFIs' proven ability to
foster homeownership among Native people by issuing them mortgage loans
on tribal lands.
Last and perhaps most troubling, abolishing the Fund will end the
federal process for certifying CDFIs--an official stamp of approval
Native CDFIs use to secure significant investments from non-federal
sources. This will create a cascading effect that dramatically reduces
the flow of capital for farm, ranch, and other business development;
housing and homeownership; and community infrastructure projects when
Indian Country's need for such capital increases substantially with
each passing year.
Indian Country's Acute Capital Access Gaps: A Longstanding Challenge
To understand the need to not only protect but strengthen the CDFI
Fund and specifically the NACA Program, one must recognize the severe,
longstanding lack of access to capital that Tribal communities--
particularly those in rural areas--confront today. Consider:
Significant barriers to investment: As the CDFI Fund
explains, Native CDFIs' origins can be traced to the 1994
Congressional legislation authorizing the Fund's creation,
which contained among its provisions the mandating of a study
examining lending and investment practices in Tribal
communities. \3\ Titled the Native American Lending Study, it
identified 17 major barriers to investment in Indian Country,
and ``affirmed the importance of developing Native CDFIs to
play a key role in the broader effort to lead Native
Communities into the nation's economic mainstream.'' \4\
Few to no banking options: According to the Board of
Governors of the Federal Reserve, in 2020 the majority of
American Indian/Alaska Native counties had an average of three
bank branches, compared to an average of nine in other rural
counties and an average of 26 nationally. \5\
Significantly more likely to live in banking deserts: In
2024, the Federal Reserve Bank of Philadelphia released a new
report titled ``U.S. Bank Branch Closures and Banking
Deserts,'' which finds that banking deserts--defined as
neighborhoods with no bank branches nearby--across U.S.
communities are on the rise, evident in a decline in the total
number of bank branches of 5.6 percent, an increase in the
number of banking deserts of 217, and an increase in the number
of Americans living in banking deserts of 760,000. Critically,
the report found that ``Majority-American Indian and Alaska
Native tract populations are disproportionately represented in
[banking] deserts'' (see statistic shared on page 1). \6\
The Community Reinvestment Act--a failed approach:
Unfortunately, a growing body of research reveals that the
Community Reinvestment Act (CRA) has failed to compel or
effectively incentivize banking institutions' investment in
Native nations and communities. As the CDFI Fund's landmark
2016 Access to Capital and Credit in Native Communities report
points out, while the CRA ``was not intended to exclude Native
Communities living on tribal lands.in practice it often does,''
and banks under the Act's current regulations can easily
satisfy CRA requirements without having to do business in or
with Native nations and communities if they so choose (as most
do), and they are not required to affirmatively disclose that
they have failed to make CRA-qualified investments in and with
Tribal Nations and communities. \7\
Homeownership costs Native people more: In 2019, the Federal
Reserve found that Native people living on reservations who
want to buy homes are significantly more likely to have high-
priced mortgages, and those mortgage rates average nearly two
percentage points higher than for non-Native people outside
reservations. \8\ According to the Federal Reserve, this means
a Native family purchasing a $140,000 home on a reservation
could pay $100,000 more over the course of a 30-year loan than
a non-Native purchasing a home outside a reservation would pay.
Access to capital Indian Country remains elusive: More
recently, a 2023 National Community Reinvestment Coalition
study found, for example, that: (1) ``none of the three largest
home lenders in the US issue federally guaranteed mortgages for
the construction of new permanent homes within tribal lands'';
(2) half of all home purchase loans on tribal lands are used to
purchase manufactured mobile homes (which decrease in value
rather than foster generational wealth-building), which is four
times the rate elsewhere; and (3) just 0.004 percent of small
business dollars loaned in Arizona and 0.012 percent in New
Mexico went to borrowers on tribal lands. \9\
Native CDFIs' Unique and Proven Ability to Close Indian Country's
Access to Capital Gap
Across Indian Country, Tribal communities establish CDFIs to target
and close these capital access gaps so sustainable economic growth can
take root and grow in those communities. Consider:
Native CDFIs epitomize the CDFI Fund's mission: In the CDFI
Fund's own words, Native CDFIs are ``an important part of the
CDFI Fund's mission to expand the capacity of financial
institutions to provide credit, capital, and financial services
to underserved populations and communities in the United
States,'' and they are making a ``considerable impact'' by
``helping to transform their communities. They are creating
businesses and jobs in places that desperately need them. They
are providing personal financial education and business
training to persons who have been excluded from our nation's
economic mainstream. They are helping to change the lives of
the people they serve.'' \10\ In short, Native CDFIs epitomize
what the CDFI Fund sees as the hallmark for CDFI certification:
``those working at the margins and beyond to consciously and
deliberately make impact.'' \11\
The NACA Program--an engine for Indian Country community and
economic development: The nearly 100 Treasury-certified and
emerging Native CDFIs across the country deploy NACA FA and TA
awards to support and expand their capacity to meet the acute
and rapidly growing capital access needs of Tribal communities.
Since FY 2010, for example, NACA FA recipients have used their
awards to originate nearly $2.6 billion in total loans and
investments in distressed and underserved communities, provide
more than $659 million in financing to nearly 4,340 businesses,
and support the development of nearly 500 units of affordable
housing. \12\
Native CDFIs--providing a range of critical supports:
According to the Center for Indian Country Development (CICD)
at the Federal Reserve Bank of Minneapolis, to directly address
the specific capital access gaps detailed above, as of 2025, 65
percent of Native CDFIs provide business loans and 73 percent
provide micro loans for businesses, and many (69 percent) also
provide consumer loans to foster financial inclusion and
economic activity in local communities. In addition, 29 percent
of Native CDFIs provide mortgage loans--including U.S.
Department of Housing and Urban Development Section 184 loans,
which are designed to facilitate homeownership in Native
American communities--and 39 percent provide home improvement
loans. \13\ Meanwhile, a 2021 CICD study revealed that Native
CDFIs help to substantially increase the credit scores of
Native people ``in credit distress.'' \14\
Uniquely positioned and equipped to cultivate Native
homeownership: In a compelling testament to the unique ability
of Native CDFIs to help Native people become homeowners on
tribal lands, in 2018 the USDA Section 502 Direct Home Loan
Program's demonstration project made two Native CDFIs eligible
borrowers under the 502 Program and enabled them to relend to
qualified families for the construction, acquisition, and
rehabilitation of affordable housing on tribal trust land. The
project resulted in those CDFIs doubling in one year the number
of home loans that USDA had provided on two Indian reservations
in South Dakota during the previous decade--which is why
Congress is currently working in bipartisan fashion to make
this program permanent and expand it nationally to enable all
Native CDFIs to issue 502 loans. \15\
An extraordinary and reliable return on investment:
According to the Treasury Department, investments made in CDFIs
produce an eight-fold return, with each $1 creating $8 in
private sector investments. \16\ CDFIs also are safe
investments, with a loan default rate of 0.36 percent in 2023,
roughly half the rate of traditional banks. \17\
The resources don't meet the growing demand: Yet Native
CDFIs remain significantly undercapitalized. For example, a
2024 NCN survey of 51 Native CDFIs found their projected three-
year unmet loan capital needs collectively totaled $8 billion.
\18\ Meanwhile, in FY 2024, only 70 percent ($43.2 million) of
the total NACA Base-Financial Assistance (FA) funding requested
by applicant Native CDFIs ($61.6 million) was awarded by the
CDFI Fund. Similarly, just 67 percent ($3.7 million) of the
total NACA Technical Assistance (TA) funding requested by
applicant Native CDFIs ($5.5 million) was awarded. \19\
Broad, Bipartisan Support for the CDFI Fund and Native CDFIs
The CDFI Fund and Native CDFIs specifically have long enjoyed the
bipartisan support of Congress, which has long recognized the
irreplaceable benefits that CDFIs generate for Americans who are
looking to gain a toehold in our shared American economy. This is
perhaps most strikingly evident in the Senate Community Development
Finance Caucus, a growing bipartisan body of the upper chamber of
Congress that now boasts 30 members--15 Republicans and 15 Democrats.
In a recent and resounding testament to the fact that CDFIs are not a
partisan issue, last week 105 GOP members of Congress sent a letter to
the Administration last week in support of CDFIs and the CDFI Fund,
which declared that CDFIs ``play an important role in supporting
economic development in rural and underserved communities in our
states. They enhance the viability of community development projects,
especially in rural areas, by offering flexible financing tools such as
longer loan terms and interest-only repayment periods'' (see letter
attached).
Reinforcing this message, also last week the Federal Reserve Board
of Governors publicly stated that ``through flexible underwriting,
tailored lending, and deep community development relationships, CDFIs
meet credit needs through good times and bad,'' and ``help fuel the
revitalization of neighborhoods, small businesses, and local
economies.'' These institutions also have a ``strong track record'' for
performance and results, and the ``demand for their services continues
to grow.'' \20\
Action Needed to Sustain Federal Support for Native CDFIs
Native CDFIs in particular embody the founding intent of the CDFI
Fund: to provide seed capital that grows local economies. They serve
rural and underserved communities that often lack access to mainstream
financial institutions and traditional sources of credit. With a proven
record of performance and community impact, Native CDFIs represent the
ideal investment for this kind of catalytic seed capital--turning
limited federal resources into lasting economic opportunity across
Indian Country and beyond.
NCN and the nearly 100 Native CDFIs serving Indian Country call on
Congress, the White House, the Office of Management and Budget, and the
Treasury Department to continue its longstanding bipartisan support of
Native CDFIs and the proven benefits they bring to Tribal Nations and
communities by:
considering convening an oversight hearing with OMB and
Treasury officials to examine the implications of the CDFI Fund
staffing reductions and assess their potential impact on low-
income Native and rural communities that rely on Native CDFIs;
maintaining the $35 million funding level for the NACA
Program in the final FY 2026 Appropriations package and
ensuring the final FY 2026 Appropriations package includes
sufficient funding for the CDFI Fund to support adequate staff
to effectively administer the CDFI certification process and
distribute NACA Program awards in a timely fashion; and
supporting inclusion of Amendment #3732--which features four
provisions designed to grow the work of CDFIs including the
expansion of the USDA 502 Native CDFI relending program--in the
final National Defense Authorization Act package.
Conclusion: Native CDFIs Represent a Practical Fulfillment of the
Federal Government's Trust and Treaty Obligations to Tribal
Nations
In closing, the United States fulfills its trust and treaty
obligations to Tribal Nations in part through the provision of federal
funding to Tribal Nations and Native organizations such as Native CDFIs
that directly serve Tribal Nations and their citizens. The CDFI Fund
and the NACA Program are not handouts--they are a practical fulfillment
of those trust and treaty obligations, ensuring Native people have the
same access to financial and economic opportunities as all other
Americans. Native CDFIs are among the most efficient and impactful
financial institutions in the nation, stretching limited resources to
drive economic growth in some of the country's most economically
distressed communities, especially across rural America (the vast
majority of Native CDFIs are based in and serve rural communities).
They deserve the continued support of the federal government so they
can continue their vital work, which can only happen if the action of
October 10, 2025 and its overall plan to abolish the CDFI Fund are
reversed.
NCN and Native CDFIs remain committed to working collaboratively
with all branches of the federal government to achieve this goal and
ensure that Native CDFIs can continue to catalyze economic and
community development and growth across Indian Country. Thank you.
ENDNOTES
1 Federal Reserve Bank of Philadelphia, U.S. Bank Branch Closures
and Banking Deserts, February 2024, p. 9
https://www.philadelphiafed.org/-/media/FRBP/Assets/Community-
Development/Reports/Banking-Deserts-
Report-Feb-2024.pdf.
2 Center for Indian Country Development, Understanding the Native
CDFI landscape: A Center for Indian Country Development survey
quantifies the shared practices and distinctive characteristics of
Native Community Development Financial Institutions, Federal Reserve
Bank of Minneapolis, September 4, 2025 https://www.minneapolisfed.org/
article/2025/understanding-the-native-cdfi-landscape#:-
:text=Experience.,average%20size%20of%20$5.7%20million.
3 CDFI Fund, ``Native Initiatives'' webpage https://
www.cdfifund.gov/programs-training/programs/native-initiatives.
4 CDFI Fund, CDFI Fund's Native Initiatives Fact Sheet: Fostering
Economic Self-Determination for Your Native Community (Updated),
February 2020 https://www.cdfifund.gov/sites/cdfi/files/documents/
cdfi7205_fs_ni_updatedfeb20.pdf.
5 Board of Governors of the Federal Reserve, Lael Brainerd.
Modernizing and Strengthening CRA Regulations: A Conversation with the
National Congress of American Indians, November 10, 2020. https://
www.bis.org/review/r201111b.pdf (via webcast).
6 Federal Reserve Bank of Philadelphia, U.S. Bank Branch Closures
and Banking Deserts, February 2024, p. 9 https://
www.philadelphiafed.org/-/media/FRBP/Assets/Community-Development/
Reports/Banking-Deserts-
Report-Feb-2024.pdf.
7 Native Nations Institute. Access to Capital and Credit in Native
Communities. Tucson, AZ: Native Nations Institute, 2016, p. 94 http://
nni.arizona.edu/application/files/8214/6378/9056/
Access_to_Capital_and_Credit_in_Native_Communities.pdf, accessed August
1, 2022); citing Native CDFI Network, ``Community Reinvestment Act:
Interagency Questions and Answers Regarding Community Reinvestment,''
May 17, 2013.
8 Laura Cattaneo and Donna Feir, The Higher Price of Mortgage
Financing for Native Americans, Working Paper Series No. 1906, Federal
Reserve Bank of Minneapolis, September 17, 2019, p. 1 https://
www.minneapolisfed.org/-/media/assets/papers/cicdwp/2019/cicd-wp-
201906.pdf).
9 National Community Reinvestment Coalition, Redlining the
Reservation: The Brutal Cost of Financial Services Inaccessibility in
Native Communities, December 2023, p. 5 https://ncrc.org/redlining-the-
reservation-the-brutal-cost-of-financial-services-inaccessibility-in-
native-communities/.
10 CDFI Fund, Financing Native Leaders for Tomorrow: Native
Initiatives Strategic Plan FY 2009-2014, 2008, p. 3 https://
www.cdfifund.gov/sites/cdfi/files/documents/native-american-strategic-
plan.pdf.
11 Ibid.
12 CDFI Fund, Native American CDFI Assistance Program Award Book FY
2024, p. 1 https://www.cdfifund.gov/system/files/2024-11/
NACA_Program_FY_2024_Award_Book_Final.pdf.
13 Center for Indian Country Development, ``Understanding the
Native CDFI landscape,'' Federal Reserve Bank of Minneapolis, September
2025 https://www.minneapolisfed.org/article/2025/understanding-the-
native-cdfi-landscape.
14 Center for Indian Country Development, ``Native CDFIs improve
credit outcomes for Indian Country residents,'' Federal Reserve Bank of
Minneapolis, April 28, 2021 https://www.minneapolisfed.org/article/
2021/native-cdfis-improve-credit-outcomes-for-indian-
country-residents.
15 Native CDFI Network, NCN Joint Letter to Congress Supporting
Tribal Rural Housing Access Act, May 13, 2024, p. 2 Joint-Indian-
Country-Letter-Supporting-Tribal-Rural-Housing-Access-Act-FINAL-5-13-
24.pdf.
16 Treasury Secretary Janet Yellen (Native CDFI Network (NCN),
Native CDFIs: Stepping Up to Serve Indian Country Through the Pandemic
and Beyond, Native CDFI Network, July 2021, p. 1 https://
nativecdfi.net/wp-content/uploads/2021/09/NCN-Pandemic-Report.pdf.
17 America's Credit Unions, ``STATEMENT from America's Credit
Unions on Secretary Bessent's Clarification on the CDFI Fund,'' March
18, 2025
https://www.americascreditunions.org/news-media/press-release/
statement-americas-credit-unions-secretary-bessents-clarification-
cdfi#:-:text=
The%20CDFI%20Fund%20has%20demonstrated,practices%20and%20effective
%20risk%20management.
18 NCN, NCN Market Demand Study, April 2024.
19 CDFI Fund, Native American CDFI Assistance Program Award Book FY
2024, 2024
https://www.cdfifund.gov/media/8016696/download?inline, accessed
January 24, 2025).
20 Federal Reserve Governor Michael S. Barr, October 22, 2025 (Nora
Macaluso, ``Fed's Barr, in speeches, notes benefits of CDFIs,
`Bank On' program,'' VitalLaw, October 23, 2025
https://www.vitallaw.com/news/community-development-fed-s-barr-in-
speeches-notes-benefits-of-cdfis-bank-on-program/
blw01bc940240c8d74e08b83ba5d1fcb7b76f?refURL
=https%3A%2F%2Fwww.google.com%2F#).
Attachment
October 23, 2025
Hon. Scott Bessent,
Secretary of the Treasury,
U.S. Department of the Treasury,
Washington, D.C.
Hon. Russell Vought,
Director,
The Office of Management and Budget,
Washington, D.C.
Dear Secretary Bessent and Director Vought,
We write to affirm our continued support for the Community
Development Financial Institutions (CDFI) Fund and the role it plays in
supporting our shared goal of creating economic prosperity throughout
the country. The Trump Administration has made bringing down the cost
of housing, growing small businesses, and driving economic opportunity
for all Americans key pillars of its agenda. We strongly urge the
Administration to continue carrying out the statutory obligations of
the CDFI Fund that are essential to ensuring private investments reach
our states and districts.
CDFIs play an important role in supporting economic development in
rural, tribal and other underserved communities in our states. They
enhance the viability of community development projects, especially in
rural areas, by offering flexible financing tools such as longer loan
terms and interest-only repayment periods. Since its inception over 30
years ago, the CDFI Fund has awarded more than $7.4 billion to CDFIs,
community development organizations, and financial institutions through
its funding programs, allocated $76 billion in tax credits through the
New Markets Tax Credit Program (NMTC), and guaranteed nearly $2.5
billion in bonds through the CDFI Bond Guarantee Program. It is unclear
how these programs will continue to operate if the CDFI Fund's
obligations cease to function.
President Trump's first Administration worked with Congress to make
historic investments into the CDFI community. Additionally, we have
worked with the Trump Administration to improve the programs
administered by the Fund. The President's signature legislation, the
One Big Beautiful Bill Act (OBBBA), made the NMTC permanent at $5
billion in annual allocation authority. Over the duration of the tax
credit, NMTC has created over one million jobs, disproportionately in
rural America. Most recently, the Senate-passed Fiscal Year 2026
National Defense Authorization Act includes language to improve
transparency at the Fund and establish a secondary market to enable
CDFIs to get more capital to small businesses.
The CDFIs and developers who rely on a functioning CDFI Fund are
essential to expanding our nation's housing supply. Not only are CDFIs
key drivers of development and preservation of affordable housing, but
the Capital Magnet Fund (CMF) is a tool used by the CDFI Fund to scale
housing investments to build new housing and bring down housing costs.
CMF dollars often pair with the Low-Income Housing Tax Credit (LIHTC),
which the OBBBA permanently expanded and strengthened. Stable delivery
of CMF dollars will help LIHTC meet its full potential in addressing
our nation's housing shortage and improving housing affordability for
everyday Americans.
While we understand difficult decisions must be made amid the
ongoing Democratic government shutdown and our nation's unsustainable
fiscal trajectory, eliminating all work done by the CDFI Fund will
negatively impact our economy long-term. We stand ready to work with
the Administration to make additional improvements at the Fund to
ensure it fulfills its purpose of serving communities left behind by
the federal government and the traditional finance sector. Thank you
for your consideration of our request. We look forward to your reply.
Sincerely,
Mike Crapo, U.S. Senator; Young Kim, Member of Congress; Susan
M. Collins, U.S. Senator; Tom Cole, Member of Congress; Tom
Cotton, U.S. Senator; Steve Daines, U.S. Senator; Tim Scott,
U.S. Senator; Bill Cassidy, M.D., U.S. Senator; Bill Huizenga,
Member of Congress; Mike Flood, Member of Congress; Cindy Hyde-
Smith, U.S. Senator; Trent Kelly, Member of Congress; Roger F.
Wicker, U.S. Senator; David G. Valadao, Member of Congress;
Todd Young, U.S. Senator; Nicholas A. Langworthy, Member of
Congress; Steve Womack, Member of Congress; Nathaniel Moran,
Member of Congress; Eric A. ``Rick'' Crawford, Member of
Congress; David P. Joyce, Member of Congress; Lisa Murkowski,
U.S. Senator; Mike Ezell, Member of Congress; James C. Justice,
U.S. Senator; Claudia Tenney, Member of Congress; M. Michael
Rounds, U.S. Senator; John R. Moolenaar, Member of Congress;
Tim Sheehy, U.S. Senator; Brian K. Fitzpatrick, Member of
Congress; John Hoeven, U.S. Senator; Michael V. Lawler, Member
of Congress; Thom Tillis, U.S. Senator; Troy Downing, Member of
Congress; Kevin Cramer, U.S. Senator; Pete Sessions, Member of
Congress; Deb Fischer, U.S. Senator; Andrew R. Garbarino,
Member of Congress; Katie Boyd Britt, U.S. Senator; Earl L.
``Buddy'' Carter, Member of Congress; James E. Risch, U.S.
Senator; Chuck Edwards, Member of Congress; Mitch McConnell,
U.S. Senator; Michelle Fischbach, Member of Congress; David H.
McCormick, U.S. Senator; Bruce Westerman, Member of Congress;
John Cornyn, U.S. Senator; Mariannette J. Miller-Meeks, M.D.,
Member of Congress; Dan Sullivan, U.S. Senator; Michael Guest,
Member of Congress; Jerry Moran, U.S. Senator; Tim Moore,
Member of Congress; Blake D. Moore, Member of Congress; Jeff
Hurd, Member of Congress; Nicole Malliotakis, Member of
Congress; Rob Bresnahan, Jr., Member of Congress; Don Bacon,
Member of Congress; Brad Finstad, Member of Congress; Lloyd
Smucker, Member of Congress; Ryan K. Zinke, Member of Congress;
Jack Bergman, Member of Congress; Dusty Johnson, Member of
Congress; Pete Stauber, Member of Congress; Juan Ciscomani,
Member of Congress; Marlin A. Stutzman, Member of Congress;
Mark Alford, Member of Congress; Charles E. Grassley, U.S.
Senator; Mar!a E. Salazar, Member of Congress; Doug LaMalfa,
Member of Congress; Harold Rogers, Member of Congress; Robert
B. Aderholt, Member of Congress; Max L. Miller, Member of
Congress; Michael R. Turner, Member of Congress; Mike Collins,
Member of Congress; Ashley Hinson, Member of Congress; Zach
Nunn, Member of Congress; Bryan Steil, Member of Congress; Mike
Carey, Member of Congress; Monica De La Cruz, Member of
Congress; Mario Diaz-Balart, Member of Congress; Rich
McCormick, MD, MBA, Member of Congress; Ryan Mackenzie, Member
of Congress; Mike Rogers, Member of Congress; Pete Ricketts,
U.S. Senator; Elise M. Stefanik, Member of Congress; Scott
DesJarlais, M.D., Member of Congress; John H. Rutherford,
Member of Congress; David Kustoff, Member of Congress; Randy
Feenstra, Member of Congress; Nicholas J. Begich III,
Congressman for All Alaska; Carol D. Miller, Member of
Congress; Pat Harrigan, Member of Congress; Jefferson Shreve,
Member of Congress; Thomas H. Kean, Jr., Member of Congress;
Dale W. Strong, Member of Congress; Gabe Evans, Member of
Congress; Vern Buchanan, Member of Congress; Michael K.
Simpson, Member of Congress; Addison P. McDowell, Member of
Congress; Derek Schmidt, Member of Congress; John Rose, Member
of Congress; Adrian Smith, Member of Congress; Cliff Bentz,
Member of Congress; Erin Houchin, Member of Congress; Rudy
Yakym III, Member of Congress; Darin LaHood, Member of
Congress; Russ Fulcher, Member of Congress.
The Chairman. Thank you, Mr. Upton.
We will finally hear from Mr. Locklear. Welcome.
STATEMENT OF ANTHONY LOCKLEAR, II., TRIBAL MEMBER, LUMBEE
TRIBE; CEO, NATIONAL INDIAN HEALTH BOARD
Mr. Locklear. Chairwoman Murkowski, Vice Chairman Schatz
and members of the Committee, on behalf of NIHB and the 574
federally-recognized tribal nations we serve, thank you for
this opportunity to testify.
My name is A.C. Locklear. I am a member of the Lumbee Tribe
of North Carolina, and serve as the Chief Executive Officer for
the National Indian Health Board, the only national tribally-
led organization dedicated to advancing the health of all
tribal nations.
For more than 50 years, NIHB has worked to ensure that the
United States meets its trust and treaty obligations to tribal
nations, obligations affirmed in law that do not stop during
government shutdowns.
While IHS plays a central role, the duty to provide for the
health and well-being of American Indians and Alaska Natives
extends across all of HHS. According to OMB's 2024 Native
American funding crosscut, HHS administers over $12 billion in
Native related funding.
Yet HHS still lacks comprehensive department-wide crosscut
on how these dollars and others reach tribal communities.
Without it, it is difficult to show how RIFs and the shutdown
disrupt services. Every day, the ITU system, including Federal,
tribal and urban programs, relies on Federal appropriations to
pay staff, keep clinics open and provide lifesaving care. When
that funding stops, even briefly, the impact is immediate and
severe.
Before advance appropriations, IHS was the only Federal
health care agency without funding during shutdowns. Clinics
reduced critical services, providers went unpaid, and tribes
relied on emergency funds, even facing credit downgrades and
real world impacts. In one tribal community, the inability to
sustain operations led to the loss of 10 community members'
lives.
Thanks to Congressional action and this Committee's
leadership, IHS continues full operations during this shutdown.
No closures, no furloughs, no missed payments.
When severe storms struck western Alaska earlier this
month, the Yukon-Kuskokwim Health Corporation responded
immediately because it was funded. That is what stability looks
like in action.
But gaps remain. Roughly $1.3 billion across six IHS
accounts are not covered by advance appropriations. For now,
IHS is covering those costs while also ensuring that
commissioned Corps officers in tribal facilities continue to
receive pay. But that stop-gap is unsustainable.
Similarly, the Special Diabetes Program for Indians is also
affected. As the Nation's most effective initiative for
combatting diabetes in Indian Country, SDPI is responsible for
a 84 percent drop in uncontrolled diabetes-related
hospitalizations, and estimates show it saved IHS between $174
million and $520 million in health care costs.
SDPI has had only minimal increases in recent years and
lacks stable multi-year funding. This shutdown puts the program
in jeopardy, forcing IHS to rely on unobligated balances to
keep it running.
NIHB strongly supports the permanent reauthorization of
SDPI in no less than $20 million annually with automatic
funding increases. Programs like SDPI prove that predictable
and advance funding improves program outcomes, extends lives,
and upholds the Federal trust responsibility.
Advance appropriations work. Now every tribal health
program must be protected so tribes never face a lapse in care.
Additionally, workforce reductions are eroding capacity across
HHS. We are grateful that Secretary Kennedy is protecting IHS
and Tribal Affairs staff from the deepest cuts. Still, IHS and
other health program staff are not fully exempt from hiring
freezes and workforce impacts.
The Voluntary Early Retirement Authority saw IHS lose over
1,000 employees through retirement attrition. Since then, over
500 positions have been filled, while the agency faces the
lowest offer acceptance rate in its history and a 30 percent
overall vacancy rate. Forty-three percent of IHS facilities are
so thinly staffed that losing just one physician could force
closure. These losses translate into preventable deaths in
tribal communities.
Across the rest of HHS, RIFs and hiring freezes have
further reduced workforce that tribes rely on for grant
management and critical technical assistance. At the
Administration for Community Living, regional administrators
who once served as direct points of contact for tribes were
eliminated earlier this year, leaving tribal programs
navigating this complex system on their own.
Shutdowns and RIFs are not just fiscal events. They
directly weaken the government's capacity to meet its trust and
treaty obligations.
As Native communities confront the Nation's most severe
health disparities, we need to strengthen, not weaken, the
Federal health infrastructure that underpins tribal self-
determination and the well-being of our people. We must extend
protections to all IHS accounts, rebuild the workforce,
permanently reauthorize SDPI, and improve coordination across
HHS through a true crosscut of tribal health funding.
Our sovereignty does not shut down. The Federal trust
responsibility cannot be reduced in force.
Thank you, and I welcome any questions you may have.
[The prepared statement of Mr. Locklear follows:]
Prepared Statement of Anthony Locklear, II., Tribal Member, Lumbee
Tribe; CEO, National Indian Health Board
Chairwoman Murkowski, Vice Chairman Schatz, and distinguished
members of the Committee, on behalf of the National Indian Health Board
(NIHB) and the 574+ sovereign federally recognized American Indian and
Alaska Native Tribal Nations we serve, thank you for this opportunity
to provide testimony on the Impacts of Government Shutdowns and Agency
Reductions in Force on Native Communities. This partial government
shutdown is not an administrative inconvenience for Native communities
and the health-related services on which they rely. It is a direct test
of the United States' ability to uphold its trust and treaty
responsibilities to Tribal Nations. Every shutdown, every delay, and
every reduction in the federal workforce has real and lasting
consequences for Native communities. Consequences that are even more
dire for our communities and Tribes because of the historical
underfunding faced by Indian Tribes and the Indian health system, and
are compounded by the unique and varying needs of Indian Tribes. My
name is A.C. Locklear. I am a member of the Lumbee Tribe of North
Carolina and serve as the Chief Executive Officer for the National
Indian Health Board (NIHB).
Founded in 1972, the National Indian Health Board (NIHB) is the
only national Tribal organization solely dedicated to advocating for
the health and public health of all 574 federally recognized American
Indian and Alaska Native Tribal Nations. Governed by a Board of
Directors representing each of the twelve Indian Health Service Areas,
NIHB serves as the unified voice of Tribal governments to reinforce
Tribal sovereignty, strengthen Tribal health systems, secure resources,
and build capacity to achieve the highest level of health and well-
being for our People.
Trust and Treaty Obligation
Tribal Nations have a unique legal and political relationship with
the United States. Over the course of a century, sovereign Tribal
Nations and the United States entered more than 300 Treaties that
required the federal government to assume specific, enduring, and
legally enforceable fiduciary obligations to the Tribes. Through its
acquisition of land and resources, the United States formed a fiduciary
relationship with Tribal Nations, recognizing a trust relationship to
safeguard Tribal rights, lands, and resources. \1\ In fulfillment of
this Tribal trust relationship, the United States ``charged itself with
moral obligations of the highest responsibility and trust'' toward
Tribal nations. \2\ Congress affirmed this duty through the Indian
Health Care Improvement Act (IHCIA), \3\ declaring it the policy of the
United States ``to ensure the highest possible health status for
Indians and to provide all resources necessary to effect that policy.''
---------------------------------------------------------------------------
\1\ Worcester v. Georgia, 31 U.S. 515 (1832).
\2\ Seminole Nation v. United States, 316 U.S. 286, 296-97 (1942).
\3\ 25 U.S.C. 1602
---------------------------------------------------------------------------
In 1955, in partial fulfillment of its constitutional obligations,
Congress established the Indian Health Service (IHS), one of three
entities that comprise the Indian health system. The Indian health
system is a three-part network that includes federally operated,
Tribally operated, and urban Indian health programs, often referred to
collectively as the ``I/T/U system.'' Today, the Indian health system
includes 43 Indian hospitals (51 percent of which are Tribally
operated) and 650 Indian health centers, clinics, and health stations
(86 percent of which are Tribally operated). \4\ Federally operated IHS
hospitals range in size from six to 133 beds and are open 24 hours a
day for emergency care. IHS-operated facilities offer a range of care,
including primary care, pharmacy, laboratory, and x-ray services.
However, when specialized services are not available at these sites,
health services are purchased from public and private providers through
the IHS-funded purchased/referred care (PRC) program. Additionally, 41
urban Indian programs offer services ranging from community health to
comprehensive primary care.
---------------------------------------------------------------------------
\4\ Indian Health Service. (2024). The Indian Health Care System--
Fact Sheet. Retrieved from: https://www.ihs.gov/sites/newsroom/themes/
responsive2017/display_objects/documents/factsheets/IHSProfile.pdf
---------------------------------------------------------------------------
Tribally operated facilities are managed by sovereign Tribal
Nations through self-determination contracts and self-governance
compacts authorized under the Indian Self-Determination and Education
Assistance Act (ISDEAA). These Tribal health systems now deliver most
care across Indian Country, managing hospitals, clinics, behavioral
health centers, and public health departments. These entities are
indistinguishable from their federal counterparts in scope and
professionalism despite being funded primarily through IHS
appropriations and third-party reimbursements. Urban Indian
organizations (UIOs), authorized under Title V of the IHCIA, extend
culturally grounded care to the American Indian and Alaska Native
people who live in urban areas. Together, the I/T/U system forms the
backbone of health care delivery for Native people. Each of the three
components is essential, and each is dependent on predictable,
equitable federal funding.
The federal obligation to provide health care to American Indians
and Alaska Natives extends beyond the IHS. Congress and the courts have
consistently affirmed that the federal trust responsibility encompasses
all programs that affect the health and welfare of Tribal Nations, not
only those that carry the word ``Indian'' in their title. Accordingly,
the U.S. Department of Health and Human Services (HHS), through its
various agencies and offices, shares in this duty. Each HHS division
that funds, regulates, or delivers health, and public health, services
to Tribal communities is acting in furtherance of that same trust and
treaty responsibility.
While IHS serves as the primary federal agency charged with
delivering direct health services to Tribes, the broader HHS plays an
equally vital role in upholding the federal trust and treaty
responsibility for Indian health. Programs housed across HHS agencies,
such as the Health Resources and Services Administration's (HRSA)
maternal and child health grants, the Substance Abuse and Mental Health
Services Administration's (SAMSHA) behavioral health and substance-use
prevention initiatives, the Centers for Disease Control and
Prevention's (CDC) Tribal public health infrastructure and disease
prevention programs, the Centers for Medicare and Medicaid Services'
(CMS) administration of Medicaid and Medicare, as well as the
Administration for Children and Families' (ACF) long term supports and
service programs, and the Administration for Community Living's (ACL)
Native American Caregivers Support program, all provide essential
support to Tribal governments and health systems as part of the federal
government's trust responsibility. These investments strengthen the
economies and health of Native communities by funding providers,
expanding behavioral health capacity, supporting workforce development,
and ensuring public health preparedness.
When coordinated effectively, these HHS programs act in concert
with IHS to fulfill the United States' fiduciary responsibility to
provide for the health and well-being of Tribal Nations. Ensuring their
stability through consistent appropriations and dedicated Tribal
engagement is therefore not only good public health policy, but also a
continuation of the federal government's enduring legal and moral
commitments to the first peoples of this nation. Although we know that
Tribal health funding streams reach far beyond the Indian health
system, it is often difficult to properly document and track the
totality of Tribal health funding and the shortfalls without a proper
Office of Management and Budget annual funding report, commonly
referred to as a ``crosscut.'' When funding streams are not clearly
identified, it becomes difficult to link financial resources to health-
data infrastructure, staffing, or surveillance capacity in Tribal
communities. Without a clear funding map, Tribal public health systems
are under-resourced in staffing, data systems, or IT infrastructure
because the link between funding and capability isn't visible. Without
a clear funding map, Tribal public health systems may be under-
resourced in staffing, data systems, or IT infrastructure because the
link between funding and capability isn't visible.
The Indian Health Service Funding
This year, IHS will celebrate its 70th anniversary. However, at no
point in the 70 years has Congress fully funded the agency at the level
of need. Although NIHB is glad Congress has provided nominal increases
to the IHS each year, these increases are insufficient to keep up with
rising medical and non-medical inflation, population growth, and often
geographically isolated communities that increase facility maintenance
costs and other expenses. The result is that, year after year, the
Indian health system is unable to make meaningful improvements in
reducing the significant health disparities experienced by American
Indian/Alaska Native (AI/AN) Peoples.
Year after year, the federal government has failed Native
communities by drastically underfunding the IHS far below the
demonstrated need. According to the IHS National Tribal Budget
Formulation Workgroup, IHS appropriations must reach $73 billion in FY
2027 to fully meet the current health needs. This amount includes full
estimates for all services, facilities, and improvements needed to
bring the Indian health system up to the same standards as the general
U.S. population. In contrast, the FY 2024 enacted amount for IHS was
$7.22 billion. Similarly, in 2023, IHS spending on medical care per
user was only $4,078, while the national average was $13,493. However,
some IHS areas and Tribes are not even funded at the IHS national
average of $4,078 per user. This is despite years of statements to this
effect from NIHB and Tribes across the country. In 2018, the U.S.
Commission on Civil Rights found that, ``Federal funding for Native
American programs across the government remains grossly inadequate to
meet the most basic needs the federal government is obligated to
provide. Native American program budgets generally remain a barely
perceptible and decreasing percentage of agency budgets.'' \5\
---------------------------------------------------------------------------
\5\ U.S. Commission on Civil Rights. ``Broken Promises: Continuing
Federal Funding Shortfall for Native Americans.'' December 2018.
Available at: https://www.usccr.gov/files/pubs/2018/12-20-Broken-
Promises.pdf
---------------------------------------------------------------------------
Meanwhile, in FY 2024, IHS accounts were reduced to make room for
growing Contract Support Costs (CSC) and Section 105(l) Lease Payments.
With an already dramatically underfunded health system and the rising
costs of providing health care nationwide, there is little room to
crimp to accommodate these costs. The accounts that bore the brunt were
the facilities and the electronic health record line items. This, of
course, is compounded by years of sub-inflationary budget increases the
agency has weathered, further diminishing IHS' purchasing power.
According to the IHS and Tribal Health Care Facilities' Needs
Assessment Report to Congress, the need for facilities funding remains
enormous. In 1992, the IHS established its current new construction
priority list. Over 30 years later, of the original 27 facilities on
the list, seven remain to be fully funded. IHS hospitals now average 39
years of age, more than three times the average age of U.S. not-for-
profit hospitals (11.5 years). Aging facilities risk code non-
compliance, lower productivity, and compromises for healthcare
services. At the existing replacement rate, a new 2026 facility would
not be replaced for 290 years.
IHS exists to serve the health care needs of AI/ANs. However, as a
direct result of the continued underfunding of IHS, quality and
comprehensive health services remain inaccessible across many Tribal
communities. In 2023, the CDC reported that the life expectancy for AI/
ANs declined by nearly seven years, to 65.2 years, the same as the
total U.S. population in 1944. This difference is 11.2 years fewer than
the life expectancy of 76.4 years for the non-Hispanic white
population.
AI/ANs experience some of the worst health outcomes in the United
States and are dramatically poorer compared with the rest of the U.S.
population. Additionally, AI/ANs continue to experience historical
trauma from damaging federal policies, including those from the
boarding school era and the forced removal from Tribal lands, as well
as continuing threats to culture, language, and access to traditional
foods. These compounding events along with chronic underfunding and
access in Native communities have resulted in AI/AN populations
experiencing high rates of poverty, high unemployment rates, barriers
to accessing higher education, poor housing, lack of transportation,
geographic isolation, and insufficient economic mobility, which
contribute to poor health outcomes. Historic and persistent
underfunding of the Indian health system has resulted in problems with
access to care and has limited the ability of the Indian health system
to provide the full range of medications and services that could help
prevent or reduce the complications of chronic diseases.
Tribal Impacts of the 2025 Government Shutdown
A federal government shutdown, even a partial shutdown, brings
immense stress and uncertainty for Tribal Nations and the programs that
serve Native communities. The I/T/U system relies directly on federal
appropriations to sustain its day-to-day operations and to deliver
culturally grounded, lifesaving care to AI/ANs. When that flow of
funding halts, even briefly, the impact reverberates through every
level of care, from clinic payroll to medication access to preventive
health outreach.
While the 2025 shutdown has demonstrated progress for the Indian
health system due to the availability of advance appropriations,
persistent vulnerabilities remain. Through funding enacted in FY 2025,
IHS clinical services and most operational accounts critical for front-
line support remain funded, ensuring that hospitals, clinics, and
pharmacies are open and care continues uninterrupted. This stability
represents a historic success for Tribal advocacy and proves that
advance appropriations work. This success should serve as a model for
all federal programs serving Indian Country.
Vulnerable Tribal Health Funding Streams
However, not every IHS account was protected. Several key funding
lines, including the Facilities Construction, Sanitation Facilities
Construction, the Indian Health Care Improvement Act Fund, Electronic
Health Records, Contract Support Costs (CSC), and Section 105(l) lease
payments. These combined accounts represent more than $1.3 billion of
IHS' FY 2025 budget, including approximately $979 million for CSC and
$349 million for 105(l) leases. \6\ These resources are essential for
sustaining the infrastructure and operations that make healthcare
delivery possible: maintaining safe water systems, repairing aging
facilities, funding administrative costs for Tribally operated
programs, and reimbursing lease obligations required under self-
governance compacts. When funding for these lines lapses, Tribes face
construction delays, halted sanitation projects, deferred maintenance,
and gaps in lease payments that threaten operational stability. These
shortfalls demonstrate that even within IHS, advance appropriations
must be expanded to cover the full range of accounts that uphold
patient safety, facility integrity, and Tribal self-determination.
---------------------------------------------------------------------------
\6\ Continuing Appropriations and Extensions Act, H.R. 9747, 118th
Cong. (2024)
---------------------------------------------------------------------------
The shutdown has also exposed vulnerabilities across other federal
health agencies. HRSA and SAMHSA funds were delayed, jeopardizing
behavioral health programs, maternal health initiatives, and suicide
prevention services. The CDC and Environment Protection Agency (EPA)
programs that fund Tribal public health infrastructure, environmental
safety, and clean water projects were paused or slowed, disrupting
vital community health operations. When their functions pause, the
effects are immediate.
Supplemental Nutrition Assistance Program
The shutdown has also disrupted nutrition security, which is
inseparable from health in Indian Country. The Supplemental Nutrition
Assistance Program (SNAP) provides vital food assistance to roughly
170,000 to 500,000 Tribal citizens, including many who live outside
areas eligible for the Food Distribution Program on Indian Reservations
(FDPIR). With one in four Tribal citizens experiencing food insecurity,
any lapse in SNAP benefits would devastate families and deepen existing
health disparities. According to the U.S. Department of Agriculture
(USDA), SNAP funding will expire on October 31, 2025, without
congressional action. To prevent this, Senator Josh Hawley (R-MO)
introduced the Keep SNAP Funded Act of 2025 (S. 3024), which would
extend flat funding for FY 2026 and restore any missed payments
retroactively. NIHB strongly supports this legislation and urges swift
action to ensure uninterrupted benefits. Food security is health
security, and ensuring stable access to SNAP is an essential part of
the federal government's trust responsibility and treaty obligations to
Tribal Nations.
The Special Diabetes Program for Indians
One of the most visible examples of how funding instability harms
Tribal health is the Special Diabetes Program for Indians (SDPI).
Established by Congress in 1997, SDPI remains the nation's most
effective federal initiative for combating diabetes in Indian Country.
Over nearly three decades, SDPI has achieved a 54 percent reduction in
end-stage renal disease and a 50 percent decline in diabetic eye
disease among American Indian and Alaska Native adults. \7\ From 2000
to 2015, hospitalizations for uncontrolled diabetes among AI/AN adults
dropped 84 percent, due in large part to SDPI innovative initiatives.
\8\ The program has also generated major federal savings, including
saving Medicare an estimated $52 million per year and reducing broader
HHS healthcare costs by $174-$520 million annually. \9\
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\7\ Indian Health Service. 2024 IHS Diabetes Care and Outcome Audit
Results, available at https://www.ihs.gov/sites/sdpi/themes/
responsive2017/display_objects/documents/factsheets/
Audit2024FactSheet.pdf. Accessed on October 26, 2025.
\8\ Agency for Healthcare Research and Quality (AHRQ). Data
Spotlight: Hospital admissions for uncontrolled diabetes improving
among American Indians and Alaska Natives. AHRQ Publication No. 18(19)-
0033-7-EF. December 2018. https://www.ahrq.gov/sites/default/files/
wysiwyg/research/findings/nhqrdr/dataspotlight-aian-diabetes.pdf.
Accessed on October 27, 2025.
\9\ Department of Health and Human Service, The Special Diabetes
Program for Indians: Estimates of Medicare Savings, ASPE Issue Brief,
May 10, 2019, available at https://aspe.hhs.gov/sites/default/files/
private/pdf/261741/SDPI_Paper_Final.pdf. Accessed on October 27, 2025.
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Despite its success, SDPI was flat-funded at $150 million for more
than 20 years before finally receiving a modest increase to $159
million in FY 2024 and 2025. However, the 2025 government shutdown has
placed this critical program in jeopardy. As of October 1, 2025, the
IHS has relied on unobligated balances to sustain operations
temporarily. Lapses in funding, like the lapse created by this
shutdown, and the ongoing cycle of temporary extensions and yearly
renewals create significant uncertainty for the programs. Additionally,
it leaves program administrators and participants in limbo. This
instability makes it difficult for Tribal and urban Indian health
programs to plan long-term strategies, retain skilled staff, and
sustain vital diabetes prevention and treatment initiatives.
The NIHB strongly supports the permanent reauthorization of the
SDPI at a minimum of $200 million annually, with automatic annual
funding increases matched to the rate of medical inflation.
Additionally, the NIHB supports amending the SDPI's authorizing
statute, the Public Health Service Act, to permit Tribes and Tribal
organizations to receive SDPI funds through self-determination and
self-governance contracts and compacts. This change will establish the
SDPI as an essential health service and remove the barriers of
competitive grants, which do not honor the Trust and Treaty obligations
to Tribal nations. Self-governance also removes unnecessary
administrative burdens that leaves more funding available for direct
patient care. Self-governance Supports Tribal sovereignty by
transferring control of the program directly to Tribal governments.
Success of Advance Appropriations for the Indian Health Service
For decades, the IHS was subject to the devastating impacts of
government shutdowns. In 2022, after years of advocacy by Indian Tribes
and NIHB, Congress provided the IHS with advance appropriations for the
first time, ending its status as the only federal healthcare provider
without advance funding.
The continuity of services and normal operations provided by
advance appropriations at IHS during this shutdown reveals the critical
need for advanced funding for the I/T/U system. Before the enactment of
advance appropriations, the IHS was subject to the full impact of
government shutdowns, disrupting all levels of care delivery. During
the 35-day government shutdown in 2019, the IHS was the only federal
healthcare entity without funding. While direct care services remained
exempt, providers did not receive pay. In addition, administrative and
technical staff responsible for scheduling patient visits, processing
referrals, and managing health records were furloughed. Contracts with
vendors for sanitation services and facilities upgrades went weeks
without payment, prompting many Tribes to exhaust alternative resources
to stay current on these bills. Many Tribes reported losing physicians
to other hospitals and health systems unaffected by the shutdown. At
the height of the budget instability, some Tribal governments were
forced to reconcile their budgets up to 21 times in a single fiscal
year due to successive short-term continuing resolutions, each lasting
anywhere from a single day to several months. \10\ This constant
uncertainty strained cash flow and, in some cases, triggered credit
downgrades for Tribes financing critical health facilities.
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\10\ US Senate Permanent Subcommittee on Investigations. ``The True
Cost of Government Shutdowns.'' February 2019. Available at: https://
www.hsgac.senate.gov/wp-content/uploads/imo/media/doc/2019-09-
17%20PSI%20Staff%20Report%20-%20Government%20Shutdowns.pdf. Accessed on
October 27, 2025.
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While it is impossible to measure the full scope of adversity
brought on by the 35-day government shutdown, one reality remains
clear: Indian Country was both unequivocally and disproportionately
impacted. Through advance appropriations, the difference is clear.
Advance appropriations have helped maintain stability during uncertain
times. While Native communities are still affected, the IHS remains
functional and responsive during the second-longest shutdown in US
history. The IHS remains open thanks to the members of this Committee,
as advance appropriations allow clinics to stay open, payroll to
continue, and patients to receive care today. These advance funds have
directly allowed IHS direct service facilities to maintain services and
critical programs, while also planning for the future.
Advance appropriations also helped Tribal health systems respond to
unexpected emergencies. On October 11, 2025, eleven days into the
federal shutdown, Western Alaska was slammed by remnants of Typhoon
Halong, which brought hurricane-force winds and life-threatening
floods. In southwestern Alaska, the Yukon-Kuskokwim Health Corporation
(YKHC) assisted in coordinating response efforts and aiding in the
rescue mission. Initial reports from YKHC indicated that Tribal leaders
requested that medical providers and prescription medications be
provided to Kwigillingok, Kipnuk, Tuntutuliak, and Chefornak. YKHC
immediately coordinated with medical teams to assist these remote
locations. Through available funds, YKHC provided services for
community members in need and funded other relief efforts.
Impacts of the Reductions in Force
Ongoing RIFs, early retirements, and hiring freezes across the HHS
have created serious instability for Tribal Nations and the federal
programs that serve them. These are not abstract bureaucratic changes;
they directly weaken the government's capacity to fulfill its trust and
treaty obligations to Tribal Nations. Since early 2025, workforce
reductions and hiring freezes within HHS, particularly at the IHS,
HRSA, SAMHSA, and CDC, have significantly reduced the personnel
supporting Tribal programs. The uncertainty surrounding these actions
has devastated morale, driving experienced staff and clinicians to
leave the Indian health system altogether.
The IHS already operates with severe shortages, including a 30
percent overall provider vacancy rate and a 36 percent physician
vacancy rate. Many facilities are so thinly staffed that losing just
one physician-level provider could force closure; 43 percent of IHS
facilities would have to shut their doors if that occurred. These
shortages are not new. A 2018 Government Accountability Office report
found that IHS clinics often lack enough doctors and nurses to deliver
timely, quality care. \11\ Staffing is not a bureaucratic detail--it is
literally a matter of life and death in many Tribal communities.
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\11\ 3 U.S. Government Accountability Office, Indian Health
Service: Agency Faces Ongoing Challenges Filling Provider Vacancies,
GAO-18-580, published August 15, 2018, available at: https://
www.gao.gov/products/gao-18-580, accessed on: January 27, 2025.
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When workforce reductions intersect with funding instability, it
means lives are at risk. These losses of personnel and capacity
translate into preventable deaths in Tribal communities, from
precipitous births, cardiac events, untreated diabetes complications,
and preventable suicides. We know these impacts because we have lived
them. Before IHS had advance appropriations, during previous government
shutdowns, members of our families died from exactly these kinds of
emergencies.
The ripple effects extend throughout the IHS system. Area and
Service Unit offices report bottlenecks in supply orders, personnel
actions, and reimbursements for CSCs and Section 105(l) leases, forcing
Tribes to deplete reserves or reduce services. As remaining staff
shoulder impossible workloads, burnout and attrition accelerate. These
reductions are especially damaging for Direct Service Tribes, who rely
on IHS-operated care as an expression of sovereignty and trust
responsibility. When federal staffing cuts eliminate positions or defer
replacements, those Tribes are unfairly penalized, deprived of
resources that would otherwise be available through self-governance
contracts or compacts.
Beyond the clinical impact, RIFs have also eroded institutional
knowledge and broken coordination and communication channels critical
to Tribal consultation and intergovernmental collaboration. While NIHB
appreciates Secretary Kennedy's efforts to protect Tribal Affairs
offices, countless other federal staff--grant managers, liaisons, and
technical assistance providers--play indispensable roles in connecting
agencies to Tribal governments. Their departures have delayed grant
awards, slowed decision-making, and disrupted key programs like HRSA's
Rural Tribal Maternal Health Initiative, SAMHSA's Tribal Behavioral
Health Grants, and CDC's various public health programs.
Impacts on the Administration for Community Living
When the 2025 HHS reductions went into effect, Tribes lost the
bridge between federal policy and community well-being. The Regional
Administrators (RAs) within the Administration for Community Living and
Administration on Aging served as the direct point of contact for all
574 federally recognized Tribes. The RAs provided application guidance,
training, and consistent support that enabled Tribal programs to
connect resources with real people--ensuring Elders received meals,
caregivers had help, and communities could prevent unnecessary
institutional care. Their removal has left Tribal programs, especially
smaller and under-resourced ones, to navigate complex systems alone.
The result is not administrative efficiency, but a loss of access
to quality of life and positive healthcare outcomes, as Elders and
people with disabilities are unable to receive meals, caregiving, and
other community-based services that keep them independent in the places
they call home. People who once remained safely in our communities are
now at higher risk of institutional placement. The financial impact is
significant considering the national average cost of nursing home care
is $111,324 per year compared to $49,900 for home- and community-based
care. \12\ When Tribes administer these programs, these costs are often
reduced further yet the outcomes remain positive with reported high
rates of care satisfaction.
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\12\ Genworth Financials Care Scout ``Cost of Care'' calculator,
accessed at https://www.carescout.com/cost-of-care
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Title VI of the Older Americans Act remains the only federal
funding stream dedicated exclusively to Tribal aging and disability
services. Yet, only about half of Tribes are current grantees, and the
absence of ACL technical assistance has made access increasingly
fragile. These programs are vital--according to the National Resource
Center on Native American Aging (NRCNAA), 42.5 percent of Elders rely
on Title VI food programs for nutrition support \13\ or would otherwise
go hungry.
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\13\ NRCNAA triennial survey of Title VI Elders, Cycle VII 2020-
2023, accessed at https://www.nrcnaa.org/assets/5727-27214/cycle-8-
data-book.pdf
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Across Indian Country, more than 945,000 Elders age 60 and older
now depend on these programs. The ``Baby Boomer'' generation's aging
will triple the number of Elders 65 and older in the coming years.
Among them, 36.7 percent report a disability, including Veterans with
service-related disabilities. Locally administered, tribally operated
programs remain the most efficient and fiscally responsible model.
Every dollar invested in these home- and community-based services stays
in the community, supports local jobs, and reduces downstream costs to
Medicare and Medicaid. Yet coordination between ACL/AoA and Tribal
health programs has been hindered by staff reductions that have slowed
communication, impeded program operations, and increased administrative
burdens.
To restore function and strengthen partnerships, the NIHB supports
reinstating ACL/AoA Regional Administrators to restore technical
assistance, training, and communication with Tribal grantees.
Additionally, the NIHB recommends extending HHS deadlines for Tribal
Title VI applications to prevent service interruptions and avoid more
costly nursing-home spending, as well as engaging Tribal Leaders in
consultation before any further changes to staff or programs impacting
Native communities.
Impacts on the Health Resources and Services Administration
HRSA's maternal health funding and corresponding programs provide
critical public health funding to Tribal nations across the US.
However, the current government shutdown and the resulting RIFs have
exacerbated HRSA's inability to properly provide technical assistance
to grantees, leaving many Tribal nations struggling to implement grant
programs. For example, Healthy Start, the nation's longest-running
federal program dedicated to infant and maternal health, has been
severely disrupted, with major staffing and funding impacts. The
Healthy Start initiative enrolls pregnant women, partners, and infants
up to 18 months of age for care coordination, education, health
referrals, and social supports. This is a critical program for Tribal
nations as AI/AN mothers experience some of the highest maternal death
rates in the US while also facing numerous barriers to accessing care.
The chronic underfunding of the IHS and lack of care access across
rural settings, leave many AI/AN mothers and infants in care deserts.
Additionally, administrative bottlenecks have also emerged within
HRSA's regional offices, where staff reductions have limited the
agency's ability to provide technical assistance and monitor grantee
performance. Tribal programs that depend on HRSA's guidance, such as
health workforce development and health clinic support, are now
experiencing gaps in oversight, communication, and program evaluation.
These disruptions have real consequences for Tribal populations. Fewer
HRSA staff mean fewer resources to recruit and retain clinicians in
shortage areas, less support for maternal and child health programs,
and reduced capacity to respond to public health emergencies. For
Tribal Nations that already face workforce shortages and infrastructure
challenges, the cumulative effect is a decline in access to timely,
quality care. Moreover, uncertainty surrounding future funding and
staffing has weakened morale across HRSA's workforce. Experienced grant
officers and program specialists have departed, taking with them years
of institutional knowledge that are not easily replaced. This loss of
expertise undermines HRSA's long-standing ability to provide technical
assistance to Tribal Nations as Tribes seek to improve the health of
their people.
Ultimately, the RIFs have triggered a crisis of confidence in the
federal commitment to Indian Country. Every lost or unfilled position
represents diminished capacity to uphold treaty and trust obligations.
At a time when Native communities continue to experience some of the
nation's most severe health disparities--from suicide and overdose to
chronic disease--weakening the federal health infrastructure that
supports them is not only short-sighted; it is a retreat from decades
of bipartisan progress toward Tribal self-determination and improving
the health and well-being of American Indian and Alaska Native people.
Conclusion
Government shutdowns and reductions in force are not administrative
inconveniences; they are breaches of the United States' trust and
treaty obligations to Tribal Nations. Every time federal operations are
halted, or federal positions are eliminated, it forces Tribal Nations
to bear the cost of broken promises. According to the Senate Permanent
Subcommittee on Investigations, the last three shutdowns alone cost the
federal government $3.7 billion in back pay and at least $338 million
in lost revenue, late fees, and administrative waste. Those figures
capture not only the fiscal waste but the human cost to Indian Country
is far greater.
When the federal government shuts down or sheds its workforce, the
consequences are immediate. Clinics lose providers, programs lose
oversight, and communities lose lifelines. The recent RIFs, early
retirements, and hiring freezes across HHS and IHS have compounded this
instability, hollowing out the very systems that sustain Tribal health
and safety. In small, rural communities, the loss of even one provider,
grant manager, or emergency responder can mean the difference between
stability and crisis--or between life and death.
Even after funding is restored or staffing plans are rewritten, the
damage lingers. The uncertainty erodes trust, drives away skilled
staff, and disrupts essential services that cannot easily be restarted.
The trust responsibility is not subject to political cycles or budget
impasse--it is a binding and moral duty that must be honored in both
policy and practice.
As Congress and the Administration work to restore stability to the
federal budget and workforce, they must ensure that the federal
commitment to Tribal Nations is protected from disruption. The federal
government's trust and treaty obligations do not shut down, and they
cannot be reduced in force. Tribal Nations deserve consistency,
respect, and a government that keeps its word. Our sovereignty does not
shut down. Our people cannot wait.
Thank you for your time, and for this opportunity to address the
committee and answer your questions.
Senator Schatz. [Presiding.] Thank you very much, and
thanks to all the testifiers.
Senator Cortez Masto?
STATEMENT OF HON. CATHERINE CORTEZ MASTO,
U.S. SENATOR FROM NEVADA
Senator Cortez Masto. Thank you. Thank you all for being
here.
Mr. Locklear, let me start with you. As we know, November
1st, funds for the Supplemental Nutrition Assistance Program,
SNAP, will run out. For my tribe in Death Valley, the loss of
SNAP funding means that 200 families, or 50 to 60 percent of
their tribe, would lose access to essential food support.
In response, the tribe is preparing to rely on traditional
practices, such as hunting elk to feed their members. It is
important to highlight how serious of an issue this will
become. This Saturday, tribes all across our Country will lose
access to essential food services.
Mr. Locklear, can you specify what actions or emergency
measures the Indian Health Board is planning to take to address
the health impacts of the loss of SNAP support for our tribal
communities?
Mr. Locklear. Sure, absolutely. We are working with our
partners across Indian Country, including the Coalition for
Tribal Sovereignty, to ensure that we are providing the most
resources for tribes to understand what their options are
during this time. There are tribes who are, as we mentioned
earlier, who have already issued state of emergencies who are
going to really access their own funding.
Ultimately, tribes are going to have to tap into their
funding to provide for their resources for their people. That
is funding that may run out, that they have on reserve.
Senator Cortez Masto. So can I ask you, let's talk
specifically Death Valley. If they were to reach out to you,
what would you tell them where they could go for assistance?
Mr. Locklear. I would probably coordinate, so in the
National Indian Health Board, we work with our partners who
work with SNAP. We don't directly work with SNAP at the
National Indian Health Board.
Senator Cortez Masto. Right.
Mr. Locklear. But we do support those who do. We ultimately
will help with any issues that come out of it related to health
in any way that we can.
Senator Cortez Masto. And is that something you obviously
normally do, but are you putting additional staff dedicated to
addressing this during this period?
Mr. Locklear. That is a wonderful question. Unfortunately,
due to funding restraints and also that most of the national
organizations such as NIHB, non-profits, rely heavily on
Federal funding to support a lot of their programs, which are
also being restricted at this time.
Senator Cortez Masto. Outside of the government shutdown
that restriction has occurred?
Mr. Locklear. Yes.
Senator Cortez Masto. Limitations to funding, losing staff.
Mr. Locklear. Limitations to funding have consistently
occurred. So we are looking at other partners, philanthropy, to
help bolster that. But we are putting our own resources and our
own reserves to make sure that we are supporting Indian Country
in this moment the best that we can.
Senator Cortez Masto. Thank you. I appreciate that.
Mr. Upton, in Indian Country where access to homeownership
is already limited, the Community Development Financial
Institutions have been a critical resource in helping our
tribal families access financing, especially after natural
disasters.
Can you talk a little about, with the proposed elimination
of the CDFI Fund, how do you see this impacting the ability of
tribal communities to make long-term housing decisions and
recover from natural disasters?
Mr. Upton. Thank you for that question. The elimination of
the CDFI fund would be detrimental to all the hard work,
especially getting the USDA 502 relending program, the momentum
going for that. Because that program proved to support two
Native CDFIs in 2019, did more home loans in one year than the
USDA did in 10 years.
Senator Cortez Masto. Right.
Mr. Upton. The fact of the matter is, Native CDFIs, we are
in our communities. We know our communities and we are there
working every day in our communities to get homeowners into a
home.
The elimination of these funds, the way that we capital
stack any more and the way that we bring deals together, it is
Native communities helping Native communities. I can see the--
we have had the biggest struggle in getting low-interest, long-
term capital. And finally with the USDA 502 relending program,
it is finally in sight that we could do that. It is potentially
a $50 million annual allotment for housing. And it would put us
back 10, 15 years of all the hard work that our Native CDFIs
have done.
If the fund is eliminated, our work would stop. And we are
going to have to find another avenue. But the CDFI fund itself,
it is a stamp for investors to say that, you are investable. So
we bring in private capital at a rate of eight to one.
So to answer your question, it would be devastating for our
tribal communities. Right now, Native CDFIs are playing a big,
big part of it and bringing other partners in on a daily basis
to supply housing for our tribal communities.
Senator Cortez Masto. Thank you.
Senator Schatz. Senator Smith?
STATEMENT OF HON. TINA SMITH,
U.S. SENATOR FROM MINNESOTA
Senator Smith. Thank you so much, Vice Chair Schatz. And
thanks to all of you for being here today. This is such a
useful opportunity for us to hear about what is happening, the
real-life impacts, as we struggle through this administration,
this shutdown.
I am really glad to see Mr. Upton here. You have been such
a great friend and advocate and helped my office in many ways,
as we have done all the work on CDFIs and Native CDFIs.
So maybe I will start by following up a bit on Senator
Cortez Masto's questions. I am trying to get at what are kind
of the actual, on-the-ground impacts of the way in which the
mass firing of the CDFI Fund at Treasury, what impact that is
really having.
In your testimony you write about how none of the three
largest home lenders in the U.S. issue federally-guaranteed
mortgages for the construction of new permanent homes on tribal
lands. So, like zero. This is where CDFIs have played such an
integral role, as you said, because you know your communities.
I want to pause on that for a minute and see if there is
any additional information you think would be useful for the
Committee to understand when we think about that kind of
financial desert on tribal lands when it comes to home
mortgages without CDFIs.
Mr. Upton. Without CDFIs, the greatest challenge that we
have is being able to bring in, I spoke with the CDFIs up in
Alaksa yesterday. It is an ecosystem that we have.
Senator Smith. Right.
Mr. Upton. And it is bringing in all the Federal programs
to support the capital needs to home mortgages. Whether it be
new market tax credits, the USDA, there is a number of
leveraging tools that we use to fulfill our long-term capital
needs.
I think more than anything, the shutdown currently, what it
is doing, when you think about this, the CDFI fund itself,
there is about $6 billion of funding that they roll out
annually.
I just ran the numbers through a couple of colleagues,
there are about 81 employees currently at the CDFI Fund before
the RIF. With that $6 billion, they administer the policy, they
review the applications, they word process the compliance, the
monitoring, the data analysis, the reporting, the cross-agency
coordination. But more than anything, they oversee the
certification.
So there is so much that those staff members do that is not
happening right now. And without the 2025 awards that should be
rolled out as we speak here, the TA awards were announced, but
there is no one to process those awards.
More than anything, it is causing maybe, I wouldn't say a
lot of fear, but it is that golden stamp that philanthropy sees
that you are a certified Native CDFI and you are investable. So
maybe there might be some treading back a little bit. It is
going to slow the process down if we don't get the staff
reversed and get them back to work.
Senator Smith. Get those RIF'ed people back on the ground,
right, exactly.
Mr. Upton. Yes.
Senator Smith. Well, there is so much to talk about here. I
appreciate very much your being here.
I want to turn to Ms. Harris. Thank you so much for being
here. Though I was not here for opening statements, I
understand that you spoke about how the president of USET is
not able to be here because they are busy trying to figure out
how to cover the gaps, huge gaps that are being left in the
nutrition program because of this looming, the refusal by the
President to spend money that he is authorized to spend to pay
for SNAP programs.
And of course, tribal lands have this kind of, the
nutrition assistance programs are extremely important, SNAP,
but then you also have the FDPIR program which is really
important. I am hearing from Minnesota tribes that there is a
kind of switching happening right now, as people are trying to
figure out, where is the best place to be able to get stable
sources of nutrition assistance for folks on tribal lands.
People are in the midst of trying to figure out how to change
their benefits.
And all of this on top of all these massive cuts to SNAP
that happened in the One Big Beautiful Bill, so-called.
So I would love to just hear you comment on this and say a
bit more about what you are hearing from members of the
communities that you represent.
Ms. Harris. Certainly. I think that one of the things that
has been incredibly challenging for tribes during shutdown and
with the RIFs is just the complete lack of transparency.
Senator Smith. Yes. You don't know what to do, where to go.
Ms. Harris. No one knows what to do or what is going on,
and they also can't get in touch with any of their agency
partners at this point in time. So everyone is just sort of
flying in the dark and trying to do the best that they can at
this moment in time.
I think it is important to recognize, too, that tribal
nations, we already face longstanding and continuing challenges
with providing access to healthy and nutritious food for our
citizens. And the challenges contribute to health and
educational and overall wellness disparities across all of our
tribal communities.
The current situation with SNAP and WIC only further
exacerbates the situation. We must further subsidize to provide
for the failure of our Federal partners to meet their trust and
treaty obligations.
Senator Smith. Yes.
Ms. Harris. Tribal nations are having to, my own tribal
nation is having to monetarily subsidize for the WIC and SNAP
benefits that some of our citizens are not providing. And given
the emergent nature of all this crisis, tribes are scrambling.
So they are spending their own time and resources to provide
the most basic of human needs, food, for their citizens.
Senator Smith. I note that I am out of time, and so I am so
sorry to cut you off, but I want to respect the Chair and Vice
Chair.
I really want to put a point on what you said about how the
Federal Government has a trust and treaty responsibility to
provide nutrition assistance, housing, other fundamental basics
as part of the treaties that we signed. This is not a ``nice
to,'' it is not a ``may,'' it is a ``shall.'' And that is the
difference here.
Ms. Harris. Yes.
Senator Smith. Thank you.
The Chairman. [Presiding.] Thank you, Senator Smith.
Thank you all for your testimony that you have shared. I
think particularly as we are going into the winter in Alaska,
and I know that in many parts of Indian Country, it is very
real up in Minnesota, maybe not so much in Hawaii or Nevada,
but the concerns about food versus fuel that you have
referenced, Mr. Mallot, I think they are very real, when we
talk about food insecurity.
We have heard and seen the pictures of the loss from
Typhoon Halong, and you see devastation within the village. The
part of it that is really heartrending is when you see freezers
that had been stocked with subsistence foods, the seal, the
berries, all that had been gathered that would take these
families through the winter that now is lost because there is
no power in these villages.
So their food source for the winter is gone. And then the
reliance on SNAP, as you have pointed out, in so many of these
communities.
So this is a point that for many in Alaska is tangibly real
and tangibly frightening. So everything that we can do to make
sure that that SNAP and WIC funding is able to proceed I think
has to be a priority for us.
I appreciate the comment that you made, Vice Chairman
Harris, in recognizing that it is not just IHS, BIE, BIA that
are tribal programs that we need to focus on, that this is
where the trust and treaty responsibility is. It is through so
many tribal-serving programs. And that is what we are talking
about here, across so many of these accounts, and how our
Native people are impacted.
I think it is somewhat timely, apparently there is an
analysis that has been released by the Brookings Institute
about what they call structural flaws in how the Federal
Government finances its obligations to Native nations, Native
American people, actually suggesting that this might, the
impact of the shutdown and the real-world consequences on what
it means for food, for fuel, for access to financing, for
healthcare, for education, that maybe this is that moment for
reform.
So rather than kind of reverting to business as usual, we
kind of reevaluate how the Federal Government is meeting its
funding obligations to our tribes and Native citizens.
I wanted to ask you, Mr. Bird, because in your comment
about the impact of the RIFs on Office of Indian Education, you
said that seven of nine have been terminated as of today, is
that correct?
Mr. Bird. Yes, that is correct.
The Chairman. So, seven out of nine are terminated. We have
the office, we have the director of the office in place, right?
Mr. Bird. Correct.
The Chairman. And then this is an office that administers
millions of dollars in formulae and discretionary grants. I am
told that last month, 28 grants were awarded from the Office
for Alaska Native education.
So, effectively, you have nobody at home to award these
grants, administer these grants, is that a fair summation of
where we are right now?
Mr. Bird. Yes, that is pretty fair. They basically have no
contact within the office to handle their drawdowns for their
funds, to relay technical assistance, to help with their data
collection that they need to process for their school
districts. So really they have basically no help in the D.C.
office, in the Office of Indian Education.
And it is so important for students to get the academic
support, tutoring, assistance for the Indian Parent committees.
So the lack of resources in D.C., in the Office of Indian
Education, is lacking. That really leaves the communities
struggling in their school districts to understand what is
happening.
The Chairman. And then you also touched on Tribal Head
Start, and I am hearing from grantees in my State that are
concerned about the impact effective November 1 in terms of
these grantees. But also not being able to access technical
assistance. There is a stop work order that was received.
What impact will that have on our Tribal Head Starts, if
there is nobody there to help with technical assistance?
Mr. Bird. In some communities, obviously, they have to
prepare for their next round or request for funding. So they
don't really have the information in place to provide for their
auditing purposes as far as getting ready to submit their next
level of funding sources.
So they are behind the eight-ball, basically, because they
need the assistance up front before they even apply for their
next round of funding.
The Chairman. Mr. Upton, I want to turn to you about CDFIs
and the certifications by Treasury. You basically said that
there is no Treasury staff to process these certifications.
So if you can't process them, tell me what happens? Tell me
what happens in terms of the inability of Treasury to move
forward with any certifications when you are talking about
access to capital markets.
Mr. Upton. Without certification, it really gives,
certification gives investors, philanthropy partners, Federal
agencies, confidence that the funds they deploy to us, whether
it be through the form of a grant, it is that golden stamp that
we are going to deploy that money with integrity,
accountability, and measurable impact.
The Chairman. So you are saying it is a stamp of approval.
So if you don't have the stamp, does that mean that you are
less likely to be able to access that loan?
Mr. Upton. You are going to be less likely to have a
philanthropy--philanthropy already, Native-led organizations,
are less than 2 percent of total philanthropy giving. With the
Native CDFIs especially it is so important that we have that
certification.
Because without it, I fear that philanthropy isn't going to
as giving and as open, too. There is no guarantee, it is the
certification, it is the golden stamp that you are what you say
you are. And the CDFI Fund has certified that all of your
accountability, you are doing what you said you were going to
do with the money that they gave you.
And that is probably the most important when it comes to
bringing on private investors and private capital to the work
that we do, is that it builds the trust, it builds a trusting
relationship with our funders.
Without it, there are many programs that you are required
to have that CDFI certification to even apply. And I know there
are a lot of investments through, whether it be investment from
a bank also, they are going to require some sort of
certification. So I think that is my fear, that those types of
investments will disappear, and they will disappear quickly.
The Chairman. Let me turn to Vice Chair Schatz.
Senator Schatz. Thank you, Chair Murkowski.
Secretary Harris, thanks for being here. We have seen
tribes furlough some of their own staff and have to take loans
out. Can you just drill down for me on some of the scenarios
that certain tribes are going through with this lack of
funding? Tell us what is happening.
Ms. Harris. We are hearing from different member tribes of
USET. One of the things we have heard anecdotally that tribes
are looking at is securing lines of credit. Because right now,
there were grants that they anticipated would be coming, but
there is no information about whether or not they will be
coming or not.
And when we are taking out lines of credit, we are also
incurring interest payments on those lines of credit. Then that
later pulls tribal funding away from things that could be going
to programs. Then at the end of the day, there is no guarantee
that those will even come through.
My own tribe is having to supplement SNAP assistance and
also our day care facility is due to have a grant. We just
recently opened that, and now we are having to supplement that
and pay for the day care facility on our own.
I know that many of our tribal members are setting up food
banks and trying to work with State and local governments in
order to supplement that. Others, as I mentioned in my opening
remarks, are trying to supplement with their own hunting and
traditional foods.
I think overall, the biggest thing is just that there is no
transparency, there is no end in sight. And there is no
information, tribal governments are resilient and resourceful
and we are problem solvers. But it is difficult to know what
you are even solving for, if it is short term, or if it is long
term.
So I think everyone right now is just dealing with what is
in front of them and trying to find stop-gap measures to
provide for our tribal citizens until there is more clarity. I
guess at this point, starting to anticipate that this may be a
lot longer, and that will require more thinking and more
measures on how to deal with it.
Senator Schatz. You may not be able to answer this
question, because I am not sure any of us quite know, but it
seems to me there are at least two things going on. There is
the expiration of the appropriations bill, and that has pretty
direct impacts on tribes. But then there is also these RIFs
that are not really required under the Anti-Deficiency Act.
Can you figure out what is causing what?
Ms. Harris. The RIFs, I know I can speak from my own
experience, the RIFs are causing us to not be able to even
know, in some cases, I mean, we don't know if the person is
furloughed or we don't know if the person has been permanently
let go.
Historically speaking, I can say that I worked during the
Obama administration as the Chief of Staff for Indian Affairs.
At that point in time, and I checked this today, we had around
8,000 employees when we went through the 2013 shutdown.
Currently, there are about 6,000 employees as identified in the
September 2025 contingency planning. Even at that point in
time, we were struggling to meet the need.
The fact is that RIFs violate the trust and treaty
obligations, and no one is arguing that Indian Affairs or the
BIA were ever overstaffed or overfunded, and no one argues that
other Federal agencies don't have the same trust and treaty
obligations as the BIA and BIE. It is the opposite.
And Congress has again and again, on a bipartisan basis,
sought to ameliorate this inequality. But the RIFs are
basically taking a hatchet to the progress that we have made in
the delivery of trust obligations. It is really taking the
authority of Congress away to provide for the trust and treaty
obligations.
But I think it is, really, in essence it just a lack of
information about what is actually going on, who is actually
still at the department, if this is a temporary shutdown thing
or if it going to be a permanent RIF situation. I think it is
leaving our members confused and without the ability to even
properly confront the problem that is in front of us.
Senator Schatz. Yes, I think obviously we have some policy
disagreements related to the shutdown and even related to
Indian Country. But I think it is at least fair if this
administration is going to sort of execute a rolling series of
RIFs, and because of my relationship with the Chair, I am
trying to avoid any sort of partisan vibe here.
But it is at least fair to try to figure out what is
related to the shutdown and what is not. Because I am quite
worried that we could end up on the other side of this shutdown
in a short-term continuing resolution while we work on the rest
of the appropriations process. And then we find that, hmm,
turns out two-thirds of the problems were just a lack of human
beings to push out grants, to communicate with Tribes and
Tribal leaders, and programs that serve Native people across
the country.
So I actually think we as a committee need to sort out, to
the extent that it is possible, what is what. And I understand
that in the politics of it all, it is part of a piece, right?
It is a point that one party is trying to make to the other,
and then the other party, and then it is just partisan warfare.
But you need to know, if this thing is over at some point
next month, are your problems over? Or are you still suffering
through 30 percent of it? 90 percent of it? 2 percent of it?
And the fact that we don't know the answer to that, that we
don't know and you don't know, I think is a problem. We need to
at least ground ourselves in the same set of facts.
The Chairman. Yes, thank you for sharing that, Senator
Schatz.
I would agree. I think we need that kind of information. I
don't remember how early it was in this session that we had a
hearing here in Indian Affairs to look at the impact of some of
the reductions in force, with the layoffs, the impact that the
layoffs were having on, again, so many of these tribal-serving
programs, where we had the Secretary of HHS say very clearly, I
am going to hold IHS harmless in this, and when it came to
those layoffs, we saw that.
But I think it was important for the administration to see,
it is not just in, again, IHS, BIA, BIE. It is in so many of
these other programs where again, tribal citizens are being
served.
So understanding the implications of all of this is part of
where we are today.
I want to ask a couple of really quick follow-ons. Mr.
Mallot, this one is directed to you. I was asked earlier in the
hallway by a reporter about LIHEAP. Because they know for us in
the north and those in the east this time of year, LIHEAP is
important to our colder-weather places.
I was asked, do I have any idea how long LIHEAP funds are
going to be available? And I am told that there was supposed to
be a new round of funding supposed to go out to the States and
the tribes by the 1st of November. That is apparently not going
to happen. Some tribes may have leftover funds.
Are you hearing from folks back home about LIHEAP?
Mr. Mallot. Thank you, Senator, for that question. In my
oral remarks, I also wanted to you for sponsoring Senate Bill
3024, the Keep SNAP Funded Act. Thank you for that.
Regarding LIHEAP, I was able to talk to Jackie Pata this
morning, and she mentioned LEAP for Southeast. You are right,
the funding that hits November 1st might not happen. Right now,
LIHEAP is administered by tribes or tribal organizations in
each region of Alaska. They usually start elders first, so I
believe they are taking applications right now in the hopes
that the government will open in time.
If November 1 doesn't hit, they don't have any funds to
give out assistance. And with SNAP, especially for our elders,
who are first in line for LIHEAP, it is going to have them
figuring out between medication, food, or heat for their homes.
As I went through and got comments from the communities, a
lot of our rural Alaska communities don't have local food
banks. It is up to the tribe that does that service. And LIHEAP
is a big one of that. So for our elders especially, they might
have an application in. There is no guarantee when they will
get that funding. So yes, it is going to be crunch as we hit
November with SNAP and LIHEAP.
With that said, we also know about the RIFs or furloughs.
If the government reopens next week, how long would it take
them to get the money out, and any delays that are going to
further exacerbate the system, the process.
The Chairman. There is so much uncertainty that is at play
here. We can't figure out the path forward right now on our
spending bills. Although I am a little bit more optimistic on
that today.
But it just seems that there is more and more concerns that
are coming up, whether it is the general funds, the smaller
tribes talking about, we don't have very much left in our
available funds here, the potential that some of our tribal
employees are going to have to start working without pay or
being laid off, challenges that come with paying banks when
105(l) and contract support cost payments aren't coming in.
So there is all of this that is at play that is just so
challenging, so difficult, so worrisome. And in my view, so
unnecessary. There is no good reason for a shutdown ever. And
yet we are in the midst of the second longest. And I have no
desire in wanting to beat the goal of the longest government
shutdown.
So my hope is that not only will we get the government open
quickly, we will get a move on with our appropriations bills
that need to be resolved now. But also, going forward, a more
certain process. And again, given the comments that we have
heard from the Vice Chair and what I said earlier about maybe
looking at this as a moment for critical review about how we,
the Federal Government, meet the trust responsibilities and
obligations to our tribes, to American Indians, Alaska Natives,
and Native Hawaiians. This might be the kick in the fanny that
we need to look a little more critically at that.
Ladies and gentlemen, thank you for making the effort to be
here today. Thank you for your testimony. For those who would
ask for follow-up questions for the record, we are going to
hold it open for a couple of weeks now.
Again, thank you for being part of our very important
hearing today and allowing these issues to come forward.
With that, the Committee stands adjourned.
[Whereupon, at 3:14 p.m., the hearing was adjourned.]
A P P E N D I X
Prepared Statement of Alberta Unok, President/CEO, Alaska Native Health
Board
Chairman Murkowski, Vice Chairman Schatz, and Members of the Senate
Committee on Indian Affairs, thank you for the opportunity to provide
written testimony on the impacts that the federal government shutdown
and reductions in force are having in Indian Country. The Alaska Native
Health Board (ANHB) provides the following comments regarding the
impacts of the government shutdown on the Alaska Tribal Health System
(ATHS). ANHB was established in 1968 with the purpose of promoting the
spiritual, physical, mental, social, and cultural well-being and pride
of Alaska Native people. ANHB is the statewide voice on Alaska Native
health issues and is the advocacy organization for the ATHS, which is
comprised of Tribal health programs that serve all 229 tribes and over
234,000 Alaska Native and American Indian people throughout the state.
The ongoing government shutdown is having significant impacts on
the ATHS and the communities that we serve. ANHB urges the members of
the Senate Committee on Indian Affairs to work with Congressional
leadership to institute systems to protect all Tribal-serving programs
from future lapses in appropriations.
I. Advance appropriations for the Indian Health Service (IHS) are
crucial to the continued functioning of the Tribal health
system and must be approved for FY 2027 and future years
Solely because IHS received advance appropriations for fiscal year
(FY) 2026, IHS's staff and funding have not been as impacted by the
current government shutdown as many other agencies. This means they can
continue transferring funds to Tribal programs and responding to Tribal
health provider needs. The ATHS has received about seventy percent of
its IHS funding for FY 2026, allowing us to continue to provide
services to beneficiaries and to keep clinic doors open. And of course,
around the country, advance appropriations have allowed IHS to keep its
own hospitals and clinics open and to continue providing essential
life-saving services.
Advance appropriations are also providing significant benefits
outside of the shutdown context. Tribal contractors under the Indian
Self-Determination and Education Assistance Act (ISDEAA) can improve
their financial stability, better plan for services, and retain
qualified health professionals with increased job security for
providers--all because they have a reliable source of funds that does
not lapse at year end. This improves the care that the ATHS is able to
provide to beneficiaries. For example, when providers have more
security, they are more likely to continue working in the Tribal health
system, rather than seeking out more stable employment opportunities in
the private sector. This allows doctors to know their patients better,
to spot changes over time, and to provide better care.
Tribes have long called for permanent advance appropriations for
IHS and for moving the entire IHS budget to mandatory appropriations,
and the current shutdown has only further highlighted the importance of
taking such actions. We are deeply concerned about the possible harms
to the Tribal health system if IHS does not receive an advance
appropriation for FY 2027.
II. Despite IHS's advance appropriation, the government shutdown has
still delayed payments to Tribes and Tribal Health
Organizations and stalled certain agency activities
Although IHS's advance appropriations have insulated the ATHS and
other Tribal health providers from some of the harms of the shutdown,
there are several categories of IHS spending that do not receive
advance appropriations and where funding has therefore lapsed. These
funds support facilities construction, sanitation facilities
construction (including water and sewer installation in rural Alaskan
communities), Contract Support Costs, and 105(l) leases. Tribes have
not received FY 2026 funds for these categories.
While some Tribal contractors may be able to rely on reserves to
continue normal operations for a while, not all contractors are in such
a position. And even those with reserve funds will eventually need to
tap into their program funds to cover fixed administrative and
facilities costs if the shutdown continues. This is particularly
concerning in Alaska as the winter season begins. As the weather
becomes colder and the days grow shorter, Tribes and Tribal health
organizations cannot let rural clinics and hospitals freeze or go dark,
or decide not to turn on their heating systems. We will be forced to
divert other funds to cover the high costs of fuel and electricity in
order to keep our facilities open in communities where they are the
only source of health care, for beneficiaries and non-beneficiaries
alike.
In addition, although IHS staff are largely in place, all attorneys
serving IHS with the Department of Health and Human Services Office of
General Counsel have been furloughed. This has resulted in a complete
halt to many routine agency activities. Meetings have been cancelled,
and long-scheduled negotiations have been indefinitely postponed.
Amendments to Annual Funding Agreements cannot be approved or finalized
without the involvement of IHS's attorneys. And efforts to settle
significant agency underpayments that the Supreme Court decreed are
statutorily due to Tribal ISDEAA contractors in Becerra v. San Carlos
Apache Tribe have stalled. Almost all Tribes are still waiting to be
made whole, nearly eighteen months after that decision was handed down.
In order to avoid similar harms in future shutdowns, we urge
Congress to move Contract Support Costs and section 105(l) lease
payments to mandatory spending (if not the whole IHS budget) to reflect
their obligatory nature and ensure further stability. We also ask
Congress to expand IHS's advance appropriations to all remaining IHS
budget line items.
III. Funding from the Special Diabetes Program for Indians has lapsed
When the FY 2025 Continuing Resolution expired, this also marked
the expiration of funding for the Special Diabetes Program for Indians
(SDPI). The SDPI has been a resounding success over the past three
decades, causing the trajectory of diabetes in Indian country to change
and lowering the prevalence of diabetes among Alaska Native and
American Indian people during the same time when diabetes prevalence
rose in the general population. Although IHS has stated that it will
use remaining unobligated balances to keep this program running for as
long as possible, the uncertainty around this funding is deeply
concerning to ANHB and the entire ATHS and threatens to undo these
three decades of progress.
IV. Furloughs at SAMHSA have led to significant communication gaps and
halted important activities
Cuts and furloughs at the Substance Abuse and Mental Health
Services Administration (SAMHSA) have harmed the ATHS. SAMHSA's Grant
Project Officers (GPOs) were furloughed when the shutdown began, and
Tribes have had no communications with them since October 1. Many ATHS
Tribal health providers have staff that work on grant-funded programs;
their questions are going unanswered and activities that require
approval from the GPO have been left pending. For example, SAMHSA
switched to a new client-level evaluation tool on October 1. A training
session on this new tool and related-data submission activities was
scheduled for that week and was cancelled. Although a guide to data
submission in the new tool was provided, no SAMHSA staff are available
to answer questions or clarify issues raised by the guide. Reopening
the government, and ensuring that these staff return to their jobs, is
necessary to help continue this important work.
V. A lapse in funding for SNAP and WIC will harm tens of thousands of
Alaskans and create gaps that the State, community
organizations, and the Tribal health system simply cannot fill
ANHB is also deeply concerned about the decision by the federal
government not to provide full benefits to households under the
Supplemental Nutrition Assistance Program (SNAP) starting on November
1. The status of these payments has been in flux, amidst litigation and
an emergency declaration by the State of Alaska. But in the meantime,
the delay in making these payments is hurting Alaskans. And the impact
of missed or partial payments, or even delayed payments, is enormous.
Alaska's food pantries and food banks simply do not have the resources
to fill the gap that the federal government is leaving. They are
already strained by the increased need among federal workers who have
been furloughed or are currently working without pay, and among
evacuees of the massive flooding and damage caused by Typhoon Halong.
This comes on top of a collapse in many of our State's fisheries,
leaving few subsistence resources to fill the gap.
Relatedly, ANHB is monitoring the status of the Special
Supplemental Nutrition Assistance Program for Women, Infants, and
Children (WIC). The State of Alaska has communicated that their federal
funding for WIC is running out. They have reported that they have
funding for State staff until November 19 and funding for food vouchers
until December 1. Tribal health organizations will have to pull from
other resources to support the staff working in the WIC program during
the second half of November if the shutdown continues in order to keep
this program operational until December 1. After that, this benefit
will lapse as well. In Interior Alaska alone, over 650 Alaska Native/
American Indian households are receiving WIC services. A lapse in this
funding will harm these families, leaving the most vulnerable Alaskans
without adequate food as we head into the long winter months. This
situation cannot be normalized-we must do better by our next
generation.
______
Joint Prepared Statement of Robert Maxim and Glencora Haskins,
Brookings Institution
Dear Committee Members,
Thank you, Chairman Lisa Murkowski, Vice Chairman Brian Schatz, and
members of the Committee for the opportunity to provide this written
statement for the record. We are authors of a Brookings Institution
report, ``The government shutdown shows the need to reform how the
federal government funds Native American Tribes and communities,''
which we co-authored with our colleague Danika Grieser and Liz Malerba
of the United South and Eastern Tribes Sovereignty Protection Fund. Our
report, which Chairman Murkowski referenced during the hearing,
assesses the Tribal-serving federal agencies most impacted by the
ongoing federal government shutdown, and recommends far-reaching
reforms to federal funding to Tribal Nations, citizens, and
communities. We have enclosed a copy of the report for the
Congressional Record. * We are writing this statement in our personal
capacity and the views expressed in this written statement are our own.
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* The information referred to has been retained in the Committee
files.
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We are responding to Chairman Murkowski's call to view this
government shutdown as a ``moment for critical review about how we, the
federal government, meet the trust responsibilities and obligations to
our Tribes, to American Indians, Alaska Natives, and Native
Hawaiians.'' Our report offers several approaches to achieve this goal.
One option would be for Congress to greatly expand the share of
funding to Indian Country that is covered by advance appropriations.
Currently, the Indian Health Service is the only major Tribal-serving
agency that is funded by advance appropriations. The positive impacts
of advance appropriations have been evident throughout the shutdown,
with IHS, Tribally operated healthcare programs, and urban Indian
health programs able to continue offering critical, at times
lifesaving, care. This is a stark contrast with the 2019 federal
government shutdown, when IHS, Tribal healthcare programs, and urban
Indian health programs were forced to limit services and close
facilities.
In contrast, other federal agencies serving Indian Country have
been forced to furlough a significant number of workers during the
shutdown. For example, nearly 37 percent of the Bureau of Indian
Affairs, over 87 percent of the Substance Abuse and Mental Health
Services Administration, and nearly 92 percent of the Food and
Nutrition Service were furloughed. In addition, other workers at
agencies serving Indian Country have been forced to work without pay
since October 1.
Congress has introduced bipartisan legislation to provide advance
appropriations to several agencies and funding lines beyond IHS, and to
confirm IHS's authority for advance appropriations. However, the scope
of the bill has been limited to funding at IHS, BIA, and BIE. The FY
2024 Native American Funding Crosscut shows that a total of 32
different federal departments and agencies are currently providing
funding and services to Indian Country, in fulfillment of trust and
treaty obligations. In our report we propose expanding advance
appropriations beyond just IHS, BIA, and BIE by providing all programs
that serve Tribal nations, citizens, and communities, as accounted for
in the Native American Funding Crosscut, with advance appropriations
equal to, at a minimum, their FY 2025-enacted discretionary spending.
Doing so would ensure that critical programs across the federal
government serving Tribal Nations, citizens, and communities can
continue to operate in the event of a future shutdown.
Although advance appropriations would help mitigate issues related
to government shutdowns, they would not solve every funding challenge.
Multiple previous reports published by Native organizations and the
U.S. federal government have highlighted the need for more significant
use of mandatory funding in supporting Tribes and Native people, as
well as the need to remove restrictions around the utilization of
funding. Increasing the share of programs for Tribes and Native
American people that are financed by direct mandatory spending would
have at least two additional benefits. First, it would protect funding
to Tribes from being targeted for funding rescissions, such as those
that Congress passed earlier in 2025. Second, converting existing
discretionary appropriations to mandatory spending could allow more
programs to meet the full needs of all eligible program participants,
rather than having to cap eligibility, benefits, or services due to
funding restrictions.
To start, Congress could move discretionary funding lines for
Tribal administrative costs and facilities leases to mandatory funding.
These are two natural first items, as federal courts have affirmed
across multiple cases that these costs must be paid in full, regardless
of the appropriations process.
From there, our report provides further guidance on how Congress
could go about moving more funding for Indian Country to mandatory
funding. We would be happy to provide additional information to the
Committee as needed to support your legislative responsibilities.
Both the federal government shutdown and the continuing resolution
to reopen the government underscore the urgent need to reform funding
for Tribal Nations, citizens, and communities. The continuing
resolution passed by Congress only funds the government through January
30, 2026. This means that Tribes and federal agencies can only plan for
less than three months of government operations. In addition, a short-
term CR leaves open the risk of another shutdown in just a few months.
In the spirit of Chairman Murkowski's call-to-action, now is the moment
to reform federal funding to Tribal Nations, citizens, and communities.
We thank you for your continued attention to the critical issue of
federal funding for Indian Country, and welcome the opportunity to work
further with the Committee on this topic.
______
Prepared Statement of Faye BlueEyes, Administrative Advisor, Dine Grant
Schools Association (DGSA)
Dear Chairman Murkowski, Vice Chair Schatz, and Members of the
Senate Committee on Indian Affairs:
Ya'at'eeh, my name is Faye BlueEyes and I serve as the
Administrative Advisor for the Dine Grant Schools Association (DGSA).
Established in 2016, the DGSA represents 13 schools on the Navajo
Nation reservation which operate as Tribally Controlled Schools Act,
P.L. 100-297 (TCSA) grantees. DGSA appreciates the opportunity to
provide information to the Senate Committee on Indian Affairs (SCIA)
regarding the impacts of the government shutdown and agency reductions
in force on DGSA's member schools.
As discussed below, my testimony covers impacts on our member
schools including:
The need for full forward funding for all education related
accounts and programs across federal agencies, including, but
not limited to, Facilities Operations and Maintenance funds,
Education Construction funds, and Johnson O'Malley (JOM) funds;
and
The need to except from furlough all staff who service
Indian education programs, including Bureau of Indian Affairs
(BIA) staff and staff at the Department of Education's Office
of Indian Education (OIE); and
Teacher shortages and the Presidential Proclamation on H-1B
Visas.
TCSA grants are forward funded, but funds are often still delayed
Fortunately, TCS and Bureau of Indian Education (BIE) operated
schools are forward funded. The 2025-2026 K-12 school year was funded
in the FY 2025 appropriations bill, and those funds will remain
available to support continued instructional and related educational
services at our member schools throughout the school year and into
2026. The TCSA requires BIE to transfer eighty percent of schools'
education funds by July 1, 2025, and the balance of twenty percent
funds is due on December 1, 2025. However, the BIE is chronically late
in transferring funds to DGSA schools, despite these statutory
deadlines, which prevents schools from budget planning and providing
adequate services to students.
TCSA grantees are still impacted bv non-forward funded programs and
agency furloughs
Although our schools have already received a significant portion of
their BIE funds for this school year, and it therefore may appear that
they are not impacted by the government shutdown, we are still impacted
with respect to non-forward funded programs. Facilities Operations and
Maintenance (O&M) funds, and Education Construction funds,--meaning
that during a government shutdown, their appropriations lapse and the
funds are not available to our schools until Congress acts to fund the
government. Organizations such as DGSA have been advocating for O&M
funding to be forward funded for many years.
O&M funding is vital to the health, safety, and learning
environment of our students and staff. These funds support critical
services such as:
Custodial and janitorial operations; and
Electrical power, water, gas, and propane utilities; and
Routine and emergency maintenance--including repairs to
water systems, ventilation, and fire safety infrastructure.
O&M accounts are already underfunded and not forward funded,
creating major challenges during federal government shutdowns or when
Congress operates under Continuing Resolutions. Funds are often delayed
until late in the year or after the school year ends, forcing schools
to borrow from instructional budgets (such as the Indian School
Equalization Program (ISEP)). This disrupts financial planning, delays
TCSA Grant Support Cost calculations, and ultimately reduces resources
available for student learning.
Currently, school construction projects and requests for assistance
from BIA Facilities and Maintenance staff are at a standstill amidst
shutdown furloughs and the lapse in funding. Forward funding these
accounts would:
Allow schools to plan budgets from the start of the school
year
Ensure educational programs are not disrupted by facility
budget shortfalls
Prevent costly emergency repairs through timely repairs
Ensure safe, functional facilities for our students and
staff
Early and predictable access to O&M funding would allow our schools
to focus on education, not financial uncertainty.
While all BIE personnel is exempt during the shutdown, vital non-BIE
personnel is not
Even though all 2,961 employees of the BIE are exempt personnel
under the 2025 BIE contingency plan, only 37 percent of BIA staff are
considered exempt, including staff in the Facilities and Maintenance
offices, and the entire staff at the OIE have received reduction-in-
force notices. Our schools are still impacted by these furloughs and
RIFs of non-BIE personnel. We strongly encourage Congress to work with
federal agencies to ensure these vital positions remain exempt during
furlough and fully funded.
Impact ofthe Supplemental Nutrition Assistance Program
The Supplemental Nutrition Assistance Program--known as SNAP--ended
on November 1, 2025. This change will have a serious impact on families
across our Nation, and especially on our children. For many Navajo
families, SNAP has not just been a benefit--it has been a lifeline.
It has helped parents put food on the table and ensured that our
children have been fed and come to school ready to learn.
We know that a hungry child cannot focus on lessons or thrive
academically. Their energy, attention, and motivation are all affected
when they do not have enough to eat. This situation will not only
affect students' ability to learn, but also their overall health and
wellbeing.
Our schools will also feel the burden. When students come to school
hungry, the responsibility often falls on the schools to provide more
meals, more snacks, and more support. This will strain already limited
budgets and resources. Schools may be forced to cut from other
essential programs to meet the growing need for food.
Teacher Shortages and impact of Presidential Proclamation on H-1B visas
The absence of certified teachers reaches beyond our classrooms. It
touches the entire Navajo Nation. Without strong education, we lose
future leaders, skilled workers, and engaged citizens. We see fewer
Navajo professionals in healthcare, law, engineering, and education.
The result is a weakened workforce and increased dependency on systems
outside our control. This undermines our journey toward educational
sovereignty and self-sufficiency.
At this moment, the national teacher shortage crisis is so severe
across BIE-funded schools on the Navajo Nation that our schools have
been hiring international graduates authorized to work under an H-1B
Visa. On September 21, 2025, a Presidential Proclamation entitled
``Restriction on Entry of Certain Nonimmigrant Workers'' came into
effect which introduced a $100,000 annual fee for employers sponsoring
technically skilled foreign workers on H-1B visas. The President's
announcement specifically identified highpaying tech jobs filled by
foreign workers as an area of concern, but the Proclamation will have a
significant impact on schools and educators, including educators on the
Navajo Nation.
This Proclamation did not include an exemption for TCSA grantees
and will likely create additional vacancies for teachers. It is not
feasible for Tribally Controlled Schools to sponsor the new H-1B fee or
for our teachers to be able to front the $100,000 cost--a cost greater
than our teacher's yearly salaries. The severity of teacher shortages
across schools on the Navajo Nation is compounded by the fact that many
schools are in remote, high-elevation regions with:
Unpaved or poorly maintained access roads
Harsh weather conditions (heavy snow, muddy terrain)
Limited access to essential services such as grocery stores,
medical care, and vehicle repair
These factors make recruitment and retention extremely difficult,
particularly when schools lack adequate employee housing.
While federal law mandates that BIE teachers and counselors receive
salaries comparable to Department of Defense educators, local public
schools in states like New Mexico are now offering higher salaries,
outpacing what BIE-funded schools can provide. This disparity makes it
nearly impossible to attract and retain high-quality educators. DGSA
has continued to advocate that Congressional appropriators require the
BIE to clearly display funding amounts required to comply with Defense
Department-equivalent pay rates and to include sufficient funding in
its budget request to comply with these requirements.
In addition to ensuring that BIE educators are paid at rates
required by federal law, ensuring that all employees of BIE-funded
schools receive Federal Employee Retirement System (FERS) benefits
would significantly bolster the ability of BIE-funded schools to
attract and retain quality teachers. Thank you for your continued
support of Tribally Controlled Schools and Native students and
educators.
______
Prepared Statement of the Fort Belknap Indian Community (FBIC)
Introduction
The Fort Belknap Indian Community (FBIC) submits this testimony for
the record in response to the U.S. Senate Committee on Indian Affairs
hearing on ``Impacts of Government Shutdowns and Agency Reductions in
Force on Native Communities.'' The Fort Belknap Reservation is the
homeland to the Assiniboine (Nakoda) and Gros Ventre (Aaniiih) Tribes.
Our Reservation is in north central Montana and is rural and remote.
Our Reservation includes about 652,000 acres and is almost as large as
the State of Rhode Island. We have nearly 7,000 members living on or
near our Reservation.
Like many other large land base tribes, we ceded vast lands and
resources and reserved a permanent homeland in exchange for the support
and protection of the United States. Our Reservation was established
through a series of treaties beginning in 1855, as well as
Congressional Acts, Executive Orders, and an 1888 Agreement and Act of
Congress. As set out in Article VI, Clause 2 of the U.S. Constitution,
our Treaties are the Supreme Law of the Land.
The services and programs the United States provides FBIC are not
optional obligations, they are formal commitments made through Treaties
ratified by the United States and upheld by the Constitution. Every day
the Federal government shutdown continues, our essential services,
healthcare, social programs, housing, education, and law enforcement,
are put in jeopardy. The United States must keep its word and honor the
solemn Treaties entered with FBIC and other Indian tribes. Funding to
fulfill the United States' Treaty and trust responsibilities to Indian
tribes should be mandatory funding. Treaty programs and services should
not be subject to partisan Congressional politics.
Federal Funding Lapse Jeopardizes Tribal Liheap and Child Welfare
FBIC provides social and welfare services in five areas: Social
Services, Indian Child Welfare, Child Welfare, Meth Initiative, and
Domestic Violence. Social Services play an important role in preventing
child abuse and neglect, investigating and prosecuting abuse and
neglect, and providing treatment for children and families. In 2021,
Social Services had 166 FBIC children placed in foster care off-
Reservation and 92 Indian children placed in foster care on the
Reservation. Our budget is severely underfunded for foster care
services. For the past 23 years, FBIC has carried out its contract with
the Bureau of Indian Affairs (BIA) with little to no increases in
funding.
The Fort Belknap Head Start Program provides essential child
welfare services to children from FBIC and surrounding counties. FBIC
recognizes that the closure of this vital program would have
devastating community impacts. While FBIC agreed to cover November
expenses during the appropriations lapse, using our limited Tribal
funding to underwrite the Federal government's lapse in funding
fundamentally violates the trust and Treaty responsibilities owed to
our Tribe and future generations. Therefore, immediate action is
required to restore federal appropriations so that FBIC can redirect
its limited resources back to the priorities it was established to
serve.
FBIC is also extremely concerned about the potential lapse in
funding for Supplemental Nutrition Assistance Program (SNAP) benefits.
FBIC serves a Tribal membership of 7,000 members, a significant portion
of whom rely on SNAP benefits to maintain basic food security. The
interruption or exhaustion of these funds would trigger a food crisis
within our community, immediately impacting the most vulnerable,
including children and elders. To help mitigate this lapse in funding
for November benefits, the Island Mountain Development Group (IMDG), an
autonomous economic development corporation established by the Fort
Belknap Indian Community Council, is providing a $250 gift card to Fort
Belknap enrolled Tribal members who live on the Reservation or in the
towns of Dodson or Harlem, Montana.
We are grateful we can act, but forcing IMDG to divert funds from
established scholarship opportunities and community improvement grants
places a severe strain on our operational capacity. Covering essential
federal nutrition gaps with Tribal resources is a clear and profound
violation of the federal trust and Treaty responsibilities ensuring our
community's welfare.
Furthermore, we are extremely concerned about the pending
expiration of Low Income Home Energy Assistance Program (LIHEAP)
funding. The continuing resolution passed in May 2025 provided only
$41,036 to FBIC. These funds are critical to our operations: 40 percent
supports heating (propane assistance), 5 percent supports cooling for
elderly or handicapped members at risk of heat-related illness, and the
remainder covers year-round and weatherization needs. As winter weather
approaches, any lapse in this funding can directly lead to life-or-
death situations for our Tribal members. The threat of life-or-death
situations for our most vulnerable members due to a Federal funding
lapse is a direct breach of the trust and Treaty responsibilities that
guarantee FBIC's well-being.
Federal Funding Lapses Undermine Tribal Law Enforcement
The failure to adequately fund Tribal law enforcement is a glaring
example of the Department of the Interior's failure to fulfill its
Treaty and trust obligations, underscoring the critical need for Indian
Affairs to secure more resources. Our Reservation is the size of a
small state, yet we are grossly under-resourced, operating with only
seven patrol officers and two temporary officers when we need at least
12. This crisis stems from chronic underfunding.
In 1997, the Bureau of Indian Affairs provided $1.2 million for law
enforcement, and 27 years later in 2023, this has only increased to
$1.3 million. Our officers are overworked, stressed, and often work
without backup due to high turnover. This is directly tied to the fact
that our BIA contract provides some of the lowest officer pay in
Montana, making competitive recruitment and retention exceptionally
difficult. We requested at least $5.194 million per year for our
contract last year and demand significant and immediate increases in
base funding, starting with an essential Cost-of-Living Adjustment
(COLA), as the last base funding increase was in FY 2020. Reorganizing
existing, insufficient staff and resources--such as consolidating
administrative functions--will fail to address increased drug
trafficking and violent crime; these changes will not result in
competitive wages or improve officer retention.
This systemic failure is made worse by the federal shutdown. The
lapse takes a particularly severe and immediate toll on our officers
when they are forced to work without pay, which is unacceptable and
demoralizing. This creates an impossible financial hardship for our
officers and their families, diverting their attention from essential
community safety concerns. Furthermore, the crisis extends to our
justice system, our BIA Correctional Programs lack funding for
effective rehabilitation, leading to the expensive and disruptive
shipping of incarcerated members far from home. For example, a BIA
facility near us in Hardin, Montana, can hold over 400 inmates but is
only staffed for about 20, forcing most of our members to be sent to
distant locations like Oklahoma. Finally, to truly improve conditions,
local officials must be granted decisionmaking authority, as every
regional or national referral causes us to lose a crucial opportunity
to improve the administration of justice and protect our people.
Conclusion
The burden of the Federal government shutdown is adding up. From
forcing our law enforcement to work without pay to jeopardizing winter
heating and basic nutrition, the federal funding lapses will push the
Fort Belknap Indian Community toward a financial and humanitarian
crisis. Each day the lapse continues, the Federal government is in
direct breach of its trust and Treaty responsibilities, which were
established when our Tribe ceded our permanent homeland. These are not
discretionary programs; they are non-negotiable commitments. We will
not stand by while our people face the loss of food security and safety
because of political gridlock. Congress must act immediately to restore
full appropriations and establish mandatory, stable funding for all
Tribal services and uphold the legal obligations owed to the FBIC and
future generations.
______
Prepared Statement of Kari Jo Lawrence, CEO, Intertribal Agriculture
Council
Dear Chairman Murkowski and Vice Chairman Schatz:
Thank you for holding a Senate Committee on Indian Affairs hearing
on the ``Impacts of Government Shutdowns and Agency Reductions in Force
on Native Communities'' on Oct. 29, 2025. The Intertribal Agriculture
Council (IAC) is a national non-profit organization founded by a
coalition of federally recognized Tribes in 1987 to pursue and promote
the conservation, development, and use of Tribes' agricultural
resources. We offer the following comment letter on the impacts of
government shutdowns and reductions in force (RIFs) on Indian
agriculture, food systems, and local economies.
Summary of key Tribal agricultural impacts of the government shutdown
USDA and BIA are responsible for core functions required before
Tribes or individual Tribal producers can access key credit programs,
agreed upon payments for conservation practices, trust land management
resources, leases, probate files, and more. The prolonged government
shutdown has resulted in Tribes and individual Tribal producers':
Inability to access new lines of credit through Farm Loan
Programs at the Farm Service Agency (FSA), leading to delays in
purchasing forage, seeds, livestock, and other essential inputs
for new and experienced producers alike
Inability to immediately access payment for cattle and other
agricultural products sold (Producers who received checks that
required FSA endorsement--two-party checks--were unable to
obtain the FSA endorsement required to cash the check)
Inability to get conservation payments from the Natural
Resources Conservation Service (NRCS), despite fulfilling
agreed-upon practices, threatening the financial stability of
individual Tribal producers' farms and ranches that operate on
millions of acres of Tribal lands (and in worse case scenarios,
leading some producers to taking out exorbitant interest, pay-
day style loans to navigate the over extension on their
operating lines of credit that these delayed conservation
payments would have otherwise covered)
Inability to receive Title Status Reports (TSRs) or
appraisals of trust land from BIA, documents that are often
necessary to access USDA programs
Inability to pay leases or obtain new leases through BIA,
preventing Tribal producers from accessing lands needed for
farming or ranching
Inability to obtain probate services at BIA, keeping
valuable agricultural land away from heirs and out of
production
Impact of government shutdowns
Lack of access to new lines of credit at FSA
Individual Tribal producers \1\ nationwide utilize farm ownership
and operating loans available through USDA's Farm Service Agency (FSA).
Access to financing is essential for agriculture operations which often
include high upfront costs for land, equipment, inputs, and labor
needed to remain competitive and sustain production. A study on
agricultural financing in Indian Country found that 73 percent of
Tribal producers polled were limited by lack of access to capital, and
that overall unmet financing need in Indian agriculture exceeds $42
billion. With 86 percent of Tribal communities lacking even a single
lending institution, FSA plays a critical role in financing Tribal
producers who cannot access other forms of financing (in many instances
because commercial lenders refuse to collateralize Tribal trust lands).
That is, back-up capital options are few and far between, even in the
form of short-term bridge loans.
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\1\ In Indian Country, the term Tribal producer can extend to
individual, enrolled Tribal members who own their agricultural
operations, as well as Tribes that own agricultural operations.
---------------------------------------------------------------------------
The government shutdown has throttled this critical source of
credit for Tribal producers. While IAC appreciates the partial
reopening of county FSA offices, many of the programs that Tribal
producers utilize, such as Farm Operating Loans and Farm Ownership
Loans, remain closed to new loan applications. Delays in accessing
these programs have compounding impacts: In an IAC survey of the
shutdown impacts, a Tribal producer reported they are unable to move
forward with purchases for forage--hay feed for livestock to supplement
or replace grass and other plants that die off during the winter
weather. Because of the shutdown, this producer will have to make
difficult choices between waiting for the government to reopen and
process his loan, which may drive up the cost of forage later in the
season; seeking an alternative source of credit such as a friends and
family or a payday loan; or going without.
Beginning Tribal producers are also being impacted. In the IAC
survey, two beginner producers reported that they are unable to utilize
Beginning Farmer and Rancher Loans at FSA, delaying their operations.
Delays in receiving farm income from two-party checks
For the three weeks that FSA county offices were fully closed,
Tribal producers with FSA operating loans were unable to receive
payments from the sale of their livestock, as the payment was in the
form of a two-party check that requires both FSA and the producer to
endorse. Many producers' entire year's income comes from this sale, and
any encumbrances from an FSA Operating or Farm Ownership Loan means
they cannot access the proceeds from this sale until an FSA Farm Loan
Programs Staff endorses the check.
The partial reopening of FSA county offices has enabled some
producers to get their checks endorsed, but inconsistent policies,
staffing, and office hours across offices has created unnecessary
uncertainty and confusion.
Delays in receiving conservation payments from NRCS
Many Tribal producers continue to wait on over-due payments from
NRCS for agreed upon conservation practices the Tribal producers have
either fulfilled or are in the process of fulfilling, most critically
from the Conservation Stewardship Program (CSP) and the Environmental
Quality Incentives Program (EQIP). These programs provide technical and
financial assistance for producers to integrate conservation into
working lands. EQIP payments are typically made on a reimbursement
basis, meaning during the shutdown, producers are waiting for promised
reimbursements of often tens of thousands of dollars many had already
budgeted for operational expenses. CSP offers an annual payment, so
delays of over a month due to a government shutdown may seriously
jeopardize a producer's operation.
Delays in Title Status Reports (TSRs), appraisals, probate, and other
administrative processes at BIA
Tribal producers operating on trust lands must often obtain
additional documentation and complete additional processes at the
Bureau of Indian Affairs. To secure an FSA Farm Operating Loan on
Tribal trust land, a producer must first obtain a title status report
(TSR) and appraisal from BIA. Producers and loan officers--at both
commercial banks and the FSA--report that TSRs can take 90+ days to
process, and appraisals may take 6 to 9 months. With the government
shutdown, the backlog for appraisals and TSRs will only be worsened.
Tribal producers are also reporting that because BIA is closed,
probate cases are being resolved, locking land up from heirs and out of
production. According to the Congressional Research Service, BIA
already has a backlog of more than 32,000 cases, and resolving a case
can take multiple years. \2\ This backlog and these delays will only
worsen the longer the government shutdown continues.
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\2\ CRS. Jan. 2024. https://www.congress.gov/crs-product/R47908#--
Toc157517867
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Delays in renewing or obtaining new leases
Tribal producers are also unable to obtain new leases or renew
agricultural leases from BIA to operate on trust lands. Without these
leases, Tribal producers lack the authority to begin or continue
agricultural operations on these lands--and delays of even a few weeks
can lead to missing key windows for fall or winter planting or losing
time for grazing livestock. In addition, Tribal producers often need
leases to access key FSA and NRCS programs.
Impact of Reductions in Force (RIFs) and other staff departures
Current workforce shortages have led to profound inefficiencies
that delay critical responses and approvals for Tribes and Tribal
producers, directly leading to lost income, financial instability, and
missed economic opportunities in Indian agriculture, as well as
significant degradation and loss of financial value to trust lands. The
failure to maintain adequate staffing to meet Tribal needs is an
abrogation of the federal government's trust and treaty obligations to
Tribes.
Staff shortages at USDA
According to USDA's own numbers, over 15,000 employees have left
USDA since the start of the year--a loss of approximately 15 percent of
the USDA workforce. \3\ As a result, the USDA workforce is the smallest
it has been in at least 27 years. \4\ According to the National
Association of Farmer Elected Committees, which represents FSA county
committees, there are fewer than 6,000 FSA County Office employees, \5\
a loss of several thousand staff from just a few years ago, across
2,300 county offices. These workforce have exacerbated challenges
Tribal producers face obtaining loans, enrolling in conservation
programs, receiving payments, getting checks endorsed, and other
essential services.
---------------------------------------------------------------------------
\3\ Secretary Memorandum: SM 1078-015. July 2025. https://
www.usda.gov/sites/default/files/documents/sm-1078-015.pdf
\4\ CalCAN. August 2025. https://calclimateag.org/usda-staffing-
crisis-mass-departures-undermine-local-ag-support/
\5\ NAFEC. Sept. 2025. https://www.nafecfsa.com/--files/ugd/
af9f1b_4966d99317ee456e809944a3ff74a4fd.pdf
---------------------------------------------------------------------------
Staff shortages at BIA
Tribes and Tribal producers have long expressed concerns with staff
shortages at the BIA. The lack of sufficient staffing at BIA's Division
of Real Estate Services and Division of Natural Resources has led to
significant inefficiencies in the management of agricultural trust
assets, land inventories and surveys, and management of feral horses,
leading to land degradation and financial losses for Tribal landowners
and lessees alike. Inadequate staffing has led directly to:
Failure to fully implement the American Indian Agricultural
Resource Management Act of 1993 (AIARMA) and to assist Tribes
with establishing Agricultural Resource Management Plans
(ARMPs).
Inadequate inventorying and monitoring of Tribal
agricultural resources,which are the basis for land use
planning and allocation decisions by BIA and Tribal landowners.
Tribal landowners cannot make informed, financially- and
ecologically-sound decisions without complete, up-to-date data
and assessments.
Inadequate management of feral horses, an invasive species
that been linked to degradation of rangeland ecosystems,
including severe soil erosion and trampling that leads to
destruction of native plants, traditional medicinal plants,
natural springs, fishery habitats, and food resources for
native wildlife such as moose, elk, and deer
Inadequate processing, monitoring, and enforcement of leases
and grazing permits
Inadequate enforcement of trespass regulations, leading to
damage and/or depletion of agricultural trust resources.
The consequences of government shutdowns and staff reductions are
severe and far-reaching for Tribes and Tribal producers. We urge you to
prioritize solutions that safeguard the vital agricultural resources
and economic well-being of Tribal producers. Thank you for your
commitment to this urgent issue.
______
Prepared Statement of Cory Blankenship, Executive Director, Native
American Finance Officers Association
Introduction
Chairwoman Murkowski, Vice Chair Schatz, and Members of the Senate
Committee on Indian Affairs (SCIA). Thank you for the opportunity to
submit testimony on behalf of NAFOA, founded as the Native American
Finance Officers Association, to be included in the record for the SCIA
Oversight Hearing on ``Impacts of Government Shutdowns and Agency
Reductions in Force on Native Communities'', which took place on
October 29, 2025. For over 40 years, NAFOA has worked to grow Tribal
economies and strengthen Tribal finance through advocacy, education,
and policy development. Rooted in self-determination, our member Tribes
and their enterprises represent the diverse economic landscape of
Indian Country.
We know that any pause in federal operations, and particularly a
prolonged shutdown, negatively impacts Tribes, Tribal Communities, and
their neighbors. A federal shutdown prohibits the federal government
from fulfilling its trust and treaty obligations to Tribal Nations.
While we appreciate the work the Committee is doing to both understand
the impact of the shutdown and work to ensure that Native Communities
around the country aren't disproportionately impacted, the unfortunate
fact is that Tribal communities are especially vulnerable to the
consequences of a government shutdown. The week after the Committee
held this oversight hearing, NAFOA hosted a roundtable for member
Tribes, and between the roundtable and other direct member outreach, we
know that Tribes are facing incredible economic challenges resulting
from both the shutdown and recent Reduction in Force (RIF)
announcements. At NAFOA, we remain committed to collecting and sharing
stories of impact and helping our member Tribes with tools and
resources to navigate federal funding and operational pauses.
TTAC, Treasury, and the Administration
This year, NAFOA has worked diligently to build a strong working
relationship with the Administration and with the Department of the
Treasury in particular. As an advisor to the Treasury Tribal Advisory
Committee (TTAC), we value the work and significant progress of the
Treasury this year on critical and long-overdue Tribal issues like the
proposed rules regarding wholly-owned Tribally chartered corporate
entities and the Tribal General Welfare Exclusion (GWE) Act. We
appreciate the Administration's efforts to correct decades of delays
and reduce government overreach with the proposed final rules on these
two critical issues, which have hindered economic growth and prosperity
in Tribal communities and rural America. We are also eager to work with
the new leadership at Treasury, including the new IRS CEO Frank
Bisignano and Deputy Secretary Derek Theurer. We also greatly value
Treasurer Brandon Beach and Assistant Secretary of Tax Policy Ken Kies'
engagement on Tribal issues supporting the President's pro-growth
agenda for Tribal Nations.
Economic Development: The Shutdown and Reduction in Force
In addition to the strains of the government shutdown, Tribal
Nations are concerned about ongoing Reductions In Force in critical
positions across the federal government serving Tribal Nations. The
Administration has made a number of RIF announcements that will
negatively impact Tribal Nations and their abilities to grow and
maintain robust Tribal economies and provide for the basic needs of
their citizens. Tribes across the country have informed us of
challenges with accessing critical systems, a lack of information from
federal agencies, and considerable uncertainty about the potential
impact of such actions. RIFs place additional hardships on already
strained Tribal support programs and services. RIFs during a federal
government shutdown only exacerbates the problem, increasing the damage
done to communities that are already struggling with a decreased, or
entirely lacking, amount of federal aid and/or responsiveness.
One example of a program impacted by the RIF, and which NAFOA has
received numerous instances of feedback regarding, is the Community
Development Financial Institution (CDFI) and the related Native
American CDFI Assistance (NACA) program. Through the NACA Program,
competitive awards are made to Native CDFIs in the form of loans,
grants, equity investments, deposits, and credit union shares. This
multiplies the impact of federal investments and allows Native CDFIs to
pursue a variety of goals, from small business creation to affordable
housing development, as well as other community development pursuits.
However, on October 11th the entire staff of the CDFI Fund received RIF
notices with termination date effective December 13th. This action
would have severe and lasting impacts on the nearly 100 Native
community development financial institutions serving Tribal Nations and
communities across Indian Country.
As members of this Committee are aware, the CDFI program has broad,
bipartisan support and has been an important engine for economic
development where financing might not otherwise be available. This was
exemplified earlier this year when Senators from both sides of the
aisle requested the allocation of more than $300m in Congressionally
appropriated funding. In a bipartisan letter signed by more than twenty
Senators, they outlined why the program is critical:
``Since its inception over three decades ago, the CDFI Fund
has proven critical to the CDFI sector's success and has met
the mission to create a public-private partnership to promote
access to capital in our most underserved rural and urban
communities. Each year CDFIs leverage federal dollars from the
CDFI Fund with private-sector investment to boost small
business formation, increase housing production, and deliver
new capital to America's forgotten communities.''
The NACA program has been an especially successful part of the CDFI
program overall. The nearly 100 Treasury-certified and emerging Native
CDFIs across the country--who have an average asset size of just $5.7
million--rely heavily on NACA Financial Assistance (FA) and Technical
Assistance (TA) awards to support and expand their capacity to meet the
acute and rapidly growing capital access needs of Native communities--
needs that mainstream banking institutions have long ignored. Last
month, NAFOA sent a letter to the Administration and Congress,
encouraging them to maintain the $35 million funding level for the NACA
Program in the final FY 2026 Appropriations package and ensuring the
final FY 2026 Appropriations package includes sufficient funding for
the CDFI Fund to support adequate staff to effectively administer the
CDFI certification process and distribute NACA Program awards in a
timely fashion.
These RIFs directly contradict the intent of Congress and
statutorily authorized and appropriated funds. The impact of such
action, if allowed, will likely be felt for years and any attempt to
restart this critical program will likely result in significant delays
and continued challenges for Tribal Nations. In the meantime, what
staff remains would be hard-pressed to provide necessary technical
assistance that might make or break the success of a given program or
initiative.
Advanced Appropriations
Lastly, the shutdown illustrates some of the issues Tribes face
when it comes to budget forecasting and financial planning, as the
inconsistency of funding from the government puts an incredible strain
on Tribal accounting offices. The day before the hearing, the Brookings
Institute, with Tribal partners, released a research paper on the
impact of the shutdown on Tribes and how it shows the need for reform.
The paper's conclusion echoes what NAFOA has been hearing from members
nationwide:
``The impacts are likely to be particularly severe for many
Tribes and Native communities, some of which are among the
least-resourced places in the country, and many of whom are
dependent upon federal funding to provide services to their
people.''
To address this issue, for the past few years NAFOA has recommended
changing Tribally funded programs under the discretionary
classification to the mandatory classification. Reclassifying programs
would help Tribes with financial planning and make budget forecasting
far more accurate, something that is very important to the business
development of Tribes that have an oversized reliance on federal
programs and funds. One of the programs that NAFOA strongly supports
for reclassification is the Contract Support Costs and Payments for
Tribal Leases. Previous President's Budgets have also called for
reclassification of these programs, as did the recent Congressional S.
Rept. 118-83. Now is the time to make these changes and help ensure
that Tribal
Closing
Thank you all again for the opportunity to submit testimony on this
critical issue. Congress must take steps to ensure the federal
government upholds its trust and treaty obligations to Tribal Nations
without disruption, delay, or compromise. We urge Congress and the
Administration to ensure all Tribal programs and federal offices
serving Tribal Nations remain fully operational, adequately staffed,
and receive their full, Congressionally authorized funds.
______
Prepared Statement of Larry Wright, Jr., Executive Director, National
Congress of American Indians
The National Congress of American Indians (NCAI), founded in 1944
and based in Washington, D.C., is the oldest, largest, and most
representative national organization comprised of American Indian and
Alaska Native Tribal governments and their citizens. NCAI advises and
educates the public, state governments, and the federal government on a
broad range of issues involving Tribal sovereignty, self-government,
treaty rights, and policies affecting Tribal Nations. NCAI's primary
focus is protecting the inherent sovereign legal rights of Tribal
Nations through positions dictated by consensus-based resolutions.
These resolutions are promulgated at NCAI's national conventions by the
organization's membership, representing approximately 300 Tribal
Nations that renew membership annually.
Through policy resolutions and other processes, NCAI also serves
the broad policy interests of Tribal governments by working daily to
promote strong Tribal and federal government-to-government policies.
Below is an overview of a few of the many Tribal-specific programs
impacted by the shutdown, agency reductions-in-force (RIFs),
deregulation, and reorganization efforts that have impacted Tribal
Nations and their members during this uncertain time.
I. Overview of Impacts of Shutdown on Tribal Nations
When it was clear that the necessary appropriations would not be
made for Fiscal Year 2026, NCAI moved with urgency and purpose to
prepare Tribal Nations with facts, tools, and a plan of action.
NCAI convened a specialized webinar, Understanding Federal
Government Shutdown Impacts on Tribal Nations, for Tribal leaders and
communities to walk through what a lapse in appropriations means for
core services. We covered agency guidance, answered questions live, and
shared resources that leaders could use to brief councils and
communities the same day.
NCAI launched a centralized online hub so Tribal governments had
resources and guidance in one place, including the Office of Management
and Budget (OMB) and agency shutdown guidance, a list of funded
accounts, a comprehensive FAQ, a template letter to OMB, and draft
talking points with a call script for congressional outreach and
constituent updates. These materials were designed for immediate
download and use at the department level. NCAI, in coordination with
the Coalition for Tribal Sovereignty, urged and continues to urge
Congress to provide advance appropriations for all Tribal funding--
including Bureau of Indian Affairs (BIA) and pressing OMB to exempt
Tribal funding lines and Tribal-serving positions from cuts or
reductions in force.
Finally, NCAI released a short survey for Tribal leaders and
advocates to report impacts in real time. The survey asks two core
questions:
1. What impact is the federal government shutdown having on
your program or community? Help us bring programs and accounts
to life for Congress.
2. What have you, your organization, or your community been
doing to lessen the impacts of a government shutdown?
A. Impacts of the Federal Government Shutdown
Tribal leaders and advocates reported that their communities and
programs were facing funding disruptions, operational challenges, and
community-level impacts as a direct result of the shutdown, as well as
cascading ripple effects. This shutdown undermines Tribal self-
governance, a priority of this Administration, and strains the
government-to-government relationship. Further, it causes secondary
economic impacts--such as job losses, reduced childcare, and halted
projects--which will have negative impacts on Tribal Nations and
surrounding communities that will continue long after funding flows
again.
Critical services, like policing, family protection, social
services, elder care, and emergency management, are either stopped or
delayed as a result of a lack of funding and Tribal Nations having to
prioritize one critical service over another. Projects dependent on
federal grants or loan guarantees are stalled, jeopardizing the
financial stability of Tribal Nations. Tribal governments and programs
(e.g., senior meal sites, elder nutrition, cultural preservation) have
shut down or reduced hours, leading to furloughs. Agencies like BIA and
United States Department of Agriculture (USDA) have been largely
unresponsive, preventing reporting, compliance checks, and drawdowns.
B. Tribal Actions to Lessen Impacts of Federal Government Shutdown
Tribal Nations are resorting to a variety of strategies to minimize
the significant and negative impacts on Tribal Nations caused by the
lack of appropriations. Many Tribal Nations and organizations are
drawing from reserves or contingency funds to maintain essential
services and staff. Tribal Nations are cutting spending, reducing
hours, furloughing staff, and delaying noncritical projects. Some are
prioritizing essential services and using limited reserves to maintain
operations temporarily. Emergency declarations and contingency planning
are being activated to mitigate impacts. Tribal Nations are also
increasing community support efforts, such as food drives, mutual aid,
and reliance on traditional practices. Tribal Nations and Tribal
citizens also are relying on emotional and cultural coping strategies,
such as prayer and returning to traditional healing.
II. Tribal Specific Programs and Concerns
A. Access to Food: SNAP, WIC, and FDPIR
One in four Tribal citizens experiences food insecurity. \1\ An
estimated 170,000-500,000 Tribal members participate in the
Supplemental Nutrition Assistance Program (SNAP), \2\ and 81,600 Tribal
women, children, and infants participate in the Special Supplemental
Nutrition Program for Women, Infants, and Children (WIC). \3\ When
Congress allows these essential food benefits to lapse, we see
devastating impacts on Tribal communities. Tribal members and families
are already struggling with the increased cost of food--especially on
reservations, where the cost of basic staples comes at an even higher
price. According to one study, a gallon of milk costs 40 percent more
in Indian Country. A loaf of bread is 85 percent more expensive, and
chicken is 71 percent more.
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\1\ Feeding America, 2021, https://www.feedingamerica.org/sites/
default/files/2021-03/National%20Projections%20Brief_3.9.2021_0.pdf.
\2\ Center on Budget and Policy Priorities, 2022, https://
www.cbpp.org/research/food-assistance/the-historical-determinants-of-
food-insecurity-in-native-communities.
\3\ FNS, 2025, https://www.fns.usda.gov/research/wic/participant-
program-characteristics-2020-charts.
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NCAI--as one of the original co-founders of the Native Farm Bill
Coalition (NFBC or Coalition)--endorsed the Coalition's October 27,
2025, letter to Congress urging immediate action to prevent the
imminent lapse of benefits provided through SNAP and WIC. NCAI
encourages Congress to continue ensuring SNAP and WIC remains fully
funded and that USDA uses the SNAP contingency reserve and tariff
revenue to ensure SNAP and WIC enrollees receive full benefits for
November 2025 as outlined earlier this month by the White House. \4\
Federal feeding programs are not welfare programs for Tribal Nations:
Tribal Nations prepaid for these benefits through the ceding of
millions of acres of land and other concessions made in treaties.
Tribal Nations cannot afford a lapse in food benefits.
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\4\ USDA, 2025, https://web.archive.org/web/20251001155705/https://
www.usda.gov/sites/default/files/documents/fy2026-usda-lapse-plan.pdf.
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In addition to our concerns about access to SNAP and WIC, we are
concerned about unintended consequences to the Food Distribution
Program on Indian Reservations (FDPIR) for three reasons. First, NCAI
has heard reports of increased enrollment in FDPIR, a program that may
not be prepared for an influx of new enrollments for November and into
the future, as Tribal members worry about their access to SNAP and WIC.
USDA and Congress should provide oversight of FDPIR operations,
including monitoring increased enrollment, adequate purchasing,
warehousing, and distribution of food. Additionally, we encourage
Congress to support increased appropriations for FDPIR sites that
experience significant unexpected increases, ensuring that Tribal
members maintain access to food.
Second, as you know, dual enrollment in SNAP and FDPIR is
prohibited. Due to the uncertainty of receiving SNAP benefits coupled
with the USDA's November 8, 2025, guidance only allowing the
distribution of partial benefits for the month of November, \5\ many
Tribal members are scrambling to close their SNAP cases and switch to
FDPIR. While USDA issued guidance to provide flexibility to FDPIR sites
about the certification of closed SNAP cases on October 31, 2025,
significant uncertainty remains for these members caught in the flux.
Congress must work in a bipartisan manner to remove the unnecessary
prohibition on the dual use of SNAP and FDPIR in the same month. This
barrier prevents Tribal members from accessing food when they need it
most, including during federal government shutdowns.
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\5\ 5 FNS, 2025, https://www.fns.usda.gov/snap/updated-
supplemental-nutrition-assistance-program-snap-november-benefit-
issuance11-8
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Third, NCAI is concerned that USDA is transitioning FDPIR storage
and distribution contracts to new vendors during such an uncertain
period. Tribal Nations cannot afford another FDPIR warehouse crisis,
especially during a potential lapse of SNAP benefits. Congress should
provide oversight of the transition to the new storage and distribution
vendors.
In the long term, we urge Congress to support the 638 Authority for
Tribal Nations to assume administration of both SNAP and FDPIR. This
expanded authority will transform food systems in Native communities by
bolstering local agricultural economies, increasing access to healthy
and traditional foods, and creating new opportunities for Tribal
workforce development and local producers who desperately need access
to reliable food markets.
B. CDFI Fund
The National Congress of American Indians endorses the oral and
written testimony submitted by the Native CDFI Network (NCN) to the
Senate Committee on Indian Affairs and joins NCN in urgently calling on
Congress to reverse the October 10, 2025, Reduction in Force (RIF)
action that terminated all CDFI Fund staff and to halt the
Administration's plan to abolish the Fund altogether. According to a
Federal Reserve Bank of Philadelphia study, 46 percent of Tribal
communities are located in banking deserts--over 12 times the national
average of 3.8 percent. \6\ The 65 Treasury-certified Native CDFIs and
recently emerging Native CDFIs that NCN represents are typically the
only financial institutions serving our Tribal Nations, citizens, and
their communities, providing access to capital, credit, and financial
education where no alternatives exist. The RIF action and looming
abolishment of the CDFI Fund will economically devastate our Tribal
communities and severely harm Native CDFIs' ability to serve the
growing small business, homeownership, agricultural, and consumer
lending needs that mainstream banking institutions have long ignored in
Indian Country.
---------------------------------------------------------------------------
\6\ Federal Reserve Bank of Philadelphia, U.S. Bank Branch Closures
and Banking Deserts, February 2024, p. 9.
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Tribal Nations are already experiencing devastating impacts from
this action. With an average asset size of just $5.7 million, \7\
Native CDFIs rely heavily on Native American CDFI Assistance (NACA)
Program awards to serve our communities and scale their operations. So
far, the FY 2025 congressionally-appropriated NACA funding remains
frozen, and no Treasury staff remain to finalize agreements or release
awards--essentially choking off critical seed capital that Tribal
communities depend on for economic development. Many of Indian
Country's Native CDFIs awaiting recertification remain uncertain, with
no one to process applications. The abolishment will also end the New
Markets Tax Credits Program that brings private investment to Tribal
lands, jeopardize Congress's bipartisan push to expand the USDA Section
502 Native Relending Program, and eliminate the federal CDFI
certification process that Native CDFIs use to secure significant non-
federal investments for projects in Indian Country.
---------------------------------------------------------------------------
\7\ Center for Indian Country Development, Understanding the Native
CDFI landscape, Federal Reserve Bank of Minneapolis, September 4, 2025.
---------------------------------------------------------------------------
The CDFI Fund and the NACA Program are not charity; they are a
practical fulfillment of the federal government's trust and treaty
obligations to Tribal Nations ensuring American Indian and Alaskan
Native (AI/AN) people have the same access to financial and economic
opportunities as all other Americans. Since FY 2010, NACA recipients
have originated nearly $2.6 billion in total loans and investments in
Tribal communities, provided more than $659 million in financing to
nearly 4,340 Native-owned businesses, and supported the development of
nearly 500 units of affordable housing in Indian Country. \8\ Treasury
Department data shows that investments in CDFIs produce an eight-fold
return, with each $1 creating $8 in private sector investments, \9\
while CDFIs maintain a loan default rate of just 0.36%--roughly half
the rate of traditional banks. \10\ The consequences of inaction are
severe: Native people living on reservations face mortgage rates nearly
two percentage points higher than non-Native people outside
reservations, meaning a Native family purchasing a $140,000 home could
pay $100,000 more over a 30-year loan. \11\
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\8\ CDFI Fund, Native American CDFI Assistance Program Award Book
FY 2024, p. 1.
\9\ Treasury Secretary Janet Yellen (Native CDFI Network, Native
CDFIs: Stepping Up to Serve Indian Country Through the Pandemic and
Beyond, July 2021, p. 1)
\10\ America's Credit Unions, ``STATEMENT from America's Credit
Unions on Secretary Bessent's Clarification on the CDFI Fund,'' March
18, 2025.
\11\ Laura Cattaneo and Donna Feir, The Higher Price of Mortgage
Financing for Native Americans, Working Paper Series No. 1906, Federal
Reserve Bank of Minneapolis, September 17, 2019, p. 1.
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NCAI urges Congress to take immediate action to protect this
critical infrastructure for Indian Country's economic development by:
Convening an oversight hearing with OMB and U.S. Treasury
officials to examine the implications of CDFI Fund staffing
reductions and assess their impact on Tribal Nations;
Maintaining the $35 million funding level for the NACA
Program in the final FY 2026 Appropriations package and
ensuring sufficient funding for adequate CDFI Fund staff to
effectively administer the certification process and distribute
awards in a timely fashion;
Supporting inclusion of Amendment #3732 in the final FY26
National Defense Authorization Act package, which features
provisions to expand the USDA 502 Native CDFI relending
program.
Tribal Nations cannot afford the economic devastation that will
result from the elimination of the CDFI Fund and the freezing of NACA
Program funding.
C. Housing
The National Congress of American Indians urges Congress to address
the severe operational breakdown at BIA realty offices nationwide,
which is creating unprecedented barriers to Tribal homeownership and
economic development. Staff reductions across BIA realty offices--
through retirements and position eliminations--have occurred without
any internal or external notification protocols. Lenders attempting to
secure Title Status Reports (TSR) for home loans on trust land are
receiving no response to emails and phone calls, with no out-of-office
notifications or contact information for alternative staff. It has been
shared with NCAI that lenders have waited six weeks or longer to
discover that their point of contact was no longer employed, leaving
loan applications in limbo and Tribal borrowers unable to access
homeownership opportunities. This lack of basic institutional
communication represents a fundamental failure in the federal
government's trust responsibility to facilitate Tribal housing
development.
The impact of these staffing failures extends beyond administrative
inconvenience--it actively inhibits Tribal families from purchasing
homes and blocks Tribal housing programs from accessing critical
capital. The ongoing shutdown is further compounding these challenges
by slowing the processing of USDA Rural Development Section 502 direct
loans to Tribal borrowers and Section 502 relending loans to Native
CDFIs. These programs are essential tools for Tribal homeownership and
community development, particularly in areas where conventional
financing is unavailable due to trust land status. At the same time,
the U.S. Department of Housing and Urban Development's (HUD) Office of
Native American Programs has active competitive funding opportunities--
including the Indian Housing Block Grant Competitive and Indian
Community Development Block Grant programs--that require HUD staff to
manage deadlines, process applications, and award funds. The absence of
HUD employees to provide technical assistance, process requests, or
oversee these competitive grant programs could halt critical housing
services and construction projects across Indian Country. While some
Tribal Nations can draw down existing funds or rely on reserves, many
do not have that cushion. For those programs, delayed disbursements or
lack of federal support means immediate disruption to housing stability
for Native families.
We urge Congress to take immediate action to restore functionality
to Tribal housing operations and ensure continuity of all programs
serving Indian Country. Specifically, Congress must:
Maintain USDA Rural Development operations during the
shutdown, ensuring Section 502 loans continue to reach Tribal
borrowers and Native CDFIs.
Ensure the HUD's Office of Native American Programs has the
staffing and resources necessary to manage active competitive
grant deadlines and provide technical assistance to Tribal
housing programs. Tribal housing programs are not optional--
they are grounded in solemn trust and treaty commitments, which
were prepaid with millions of acres of land and other
concessions made in treaties.
Exempt all federal employees serving Tribal Nations, Tribal
citizens, and Tribal communities from any shutdown-related
furloughs or reductions in force, citing federal trust and
treaty obligations as well as the critical need to preserve
essential public safety, housing, and health services in Indian
Country.
Support the immediate passage of the Native American Housing
Assistance and Self-Determination Act (NAHASDA)
Reauthorization.
Support passage of S.723/H.R.2130, the Tribal Trust Land
Homeownership Act of 2025, which attempts to expand Tribal
homeownership opportunities by transforming the BIA mortgage
approval process through enforceable processing deadlines,
mandatory communication protocols, Trust Asset and Accounting
Management System data access for Tribal Nations and lenders,
and enhanced accountability.
III. Conclusion
The ongoing government shutdown has deeply undermined the federal
government's trust and treaty responsibilities to Tribal Nations,
threatening essential services, economic stability, and the health and
safety of Native communities. From halted housing and public safety
programs to frozen food assistance and economic development funds, the
impacts are immediate and compounding. Tribal Nations have demonstrated
resilience by deploying emergency measures, drawing down limited
reserves, and supporting one another--but these efforts are not
sustainable.
NCAI strongly urges Congress and the Administration to act without
delay to reopen the federal government and restore full operations for
all agencies serving Indian Country. Tribal programs are not
discretionary; they are the tangible expressions of the United States'
solemn commitments to Tribal Nations. To prevent future disruptions to
critical services, we further call on Congress to work in a bipartisan
manner with Tribal governments to enact advance or mandatory
appropriations for all Indian Country funding lines across the federal
government.
Only through bipartisan collaboration and sustained consultation
with Tribal Nations can we ensure that the federal trust and treaty
obligations are met and that Tribal communities are no longer held
hostage to political gridlock. NCAI stands ready to work with Congress
and the Administration to secure these commitments and safeguard the
well-being and sovereignty of Tribal Nations now and for generations to
come.
______
Prepared Statement of the Standing Rock Sioux Tribe
Introduction
The Standing Rock Sioux Tribe (Tribe) submits this testimony for
the record in response to the U.S. Senate Committee on Indian Affairs
``Oversight Hearing Impacts of Government Shutdowns and Agency
Reductions In Force on Native Communities.'' Our Standing Rock
Reservation encompasses 2.3 million acres in North and South Dakota. We
have over 16,000 enrolled members with over half residing on the
Reservation. Our infrastructure needs stretch across an area the size
of the States of Delaware and Rhode Island combined.
The programs and services the United States committed to provide in
our 1851 and 1868 Treaties should not be subject to partisan politics
over funding the Federal government. We paid upfront for the services
and programs guaranteed in our Treaties by ceding vast and priceless
lands, waters, and resources to the United States. Since making those
solemn agreements and signing those Treaties, the United States has
repeatedly failed to secure our lands, waters, and resources and has
chronically underfunded the programs and services owed to the Tribe.
As a large land base Tribe, the area we govern and the programs and
services owed to our members are stretched over a large area. This
increases pressure on our limited resources like social services, law
enforcement, health care, roads, and more. When you compound this
existing strain with a Federal government shutdown and federal agency
reductions in force (RIF), our already limited resources become
dangerously strained.
Congress' inability to fund the government impacts large land base
tribes like our Tribe more than most. The unemployment rate on our
Reservation is above 50 percent and 40 percent of our families live in
poverty. Our Reservation is rural and remote. Our primary economic
resources are cattle ranching and farming, our rural casinos, and
government programs. Much of our economy relies on federal funding for
programs and services that are owed to us for the lands and resources
that we ceded to the United States in Treaties.
For these reasons, on October 23, 2025, the Standing Rock Sioux
Tribe declared a state of emergency in response to the escalating
impacts of the Federal government shutdown. This declaration reflects
the immediate threat the shutdown poses to the health, safety, and
welfare of our citizens and addresses the importance of reinstating
operations and fulfilling their trust and treaty obligations to Indian
Tribes. Our biggest and most immediate concern is the effect the
government shutdown will have on our social services programs.
Critical Social Services at Risk
The economic reality in our territories highlights this hardship.
Our Tribal communities continue to struggle with high unemployment
rates stemming from a chronic lack of sustainable job opportunities.
The Tribe administers vital programs, including the Supplemental
Nutrition Assistant Program (SNAP) benefits, Women Infant Children
(WIC) program, Low Income Home Energy Assistance Program (LIHEAP), and
the Food Distribution Program on Indian Reservations (FDPIR). Our SNAP
program has 20,341 recipients with over 50 percent being children,
totaling over $1.4 million for the last three months alone. Our WIC
Program has 203 monthly participants averaging $20,163 per month, and
LIHEAP has 902 participants with an average of $125,000 per month for
fuel assistance. FDPIR supports 4,403 participants with a total retail
value of $891,607.50. These numbers reflect families, elderly, and
children who rely on these programs to meet their most basic needs. Any
disruption has an immediate and harmful impact on the health and
stability of our community.
Despite a recent court order requiring the U.S. Department of
Agriculture to pay SNAP benefits, participants will only receive a
partial payment and be forced to make difficult decisions on groceries.
This is why we issued a letter to our Congressional Delegation
requesting an exemption for Tribal members to be able to participate in
both SNAP and FDPIR during states of emergency like Federal government
shutdowns. If Tribal members are unable to receive SNAP benefits for an
extended period, it is extremely important the Tribe has the ability to
feed our people with the FDPIR program. Forcing Indian tribes to only
feed certain individuals is inhumane and violates our inherent right to
protect our people. We paid in land, let us feed our people.
The stability of our community also relies on our Child Protection
Services (CPS). Our CPS are severely underfunded and alarmingly
understaffed, with only a couple of investigators assigned to protect
hundreds of vulnerable children. With Indian children comprising a
staggering 40-50 percent of foster care in North and South Dakota,
Indian Affairs lack of resources tragically forces us to place children
off-Reservation, undermining family bonds. RIFs to achieve ``workforce
optimization'' and ``efficiency'' come at the cost of protecting our
youth.
Community Safety and Stability Also at Risk
The protection of our community is also affected by the Federal
government shutdown, and the Bureau of Indian Affairs (BIA) law
enforcement is a glaring example of the Federal government's failure to
fulfill its Treaty and trust obligations. Our BIA law enforcement
program operates with only seven patrol officers covering the area of
two small states. This is a bleak and dangerous contrast to the minimum
of 20 officers needed. This severe shortage directly leads to dangerous
situations, unacceptable response times, and rampant officer burnout.
Couple the lack of resources with no pay due to a Federal government
shutdown will continue to wear down the physical and mental health of
BIA law enforcement.
In addition, the pervasive lack of officer housing, forcing most to
commute 70 miles from Bismarck, North Dakota, severely impacts
effective patrol hours. Compounding this, hiring bottlenecks within BIA
critically delays the law enforcement hiring process, causing qualified
candidates to seek employment elsewhere and perpetuating this life-
threatening law enforcement shortage. Any restructuring of Indian
Affairs must prioritize a drastic increase in public safety personnel,
coupled with competitive pay, housing solutions, and efficient hiring
processes.
Similar to the Federal government shutdown, the planned closure and
consolidation of numerous BIA Regional Offices across the country
present a significant threat to the timely administration of grazing
permits on tribal and individually owned Indian lands. BIA Regional
Offices are responsible for managing and protecting the trust lands,
assets, and natural resources held in trust by the United States for
Tribes and individuals. The elimination of local BIA field offices,
many of which provide essential, localized, in-person support in rural
areas with limited Internet access, would force Tribal members and
ranchers to travel significant distances to access these vital
services. This reduction will create substantial administrative delays,
hindering the ability of ranchers to secure or renew permits promptly,
and jeopardizing the economic stability of tribes.
Advance Appropriations for Essential Tribal Services
To address the funding issues that tribes experience during
shutdowns of the Federal government, we support legislation like S.
2771, the Indian Programs Advance Appropriations Act of 2025. S. 2771
authorizes advanced appropriations for certain BIA, Bureau of Indian
Education (BIE), and Indian Health Service (IHS) accounts. BIA covered
accounts include the Operations of Indian Programs which encompass Road
Maintenance and Public Safety and Justice.
This bill would provide stable, long-term funding for federal
Indian programs that are guaranteed to us in our Treaties. This
approach is already working well for the Indian Health Service (IHS)
during this current shutdown. Because of advance funding, there are no
service interruptions or uncertainty for the delivery of healthcare.
This proven approach must be applied to all federal Indian programs to
ensure our communities continue to receive the critical services they
are owed.
In 2023, Congress provided IHS with advance funding for the first
time, a historic achievement. However, current law does not require IHS
to continue receiving advance appropriations, nor does it provide
similar authority for the BIE and BIA. S. 2771 would provide the
statutory authority to safeguard this financial security for our trust
and Treaty responsibilities at these agencies going forward.
Conclusion
The crisis we face, from food insecurity to endangering our
community, is a direct result of the United States' failure to honor
its trust and Treaty obligations to our Tribe. The solution is clear
and proven by the advance appropriations that Congress provides to IHS.
We need advanced appropriations across Indian programs and services to
ensure the partisan political budget battles never threaten the health,
stability, and safety of the Standing Rock Sioux Tribe and the
commitments that the United States made in Treaties.
We call on Congress to recognize that this is not a budget issue;
it is a moral and legal obligation. We demand passage of legislation
that protects our essential services, guaranteeing that political
gridlock in the capital never again compromises the health, stability,
and safety of the Standing Rock Sioux Tribe.
______
Prepared Statement of Gjermundson C. Jake, President, Ramah Navajo
School Board, Inc.
Dear Chairman Murkowski, Vice Chair Schatz, and Members of the
Senate Committee on Indian Affairs:
Ya'at'eeh my name is Gjermundson C. Jake and I serve as the
President of the Ramah Navajo School Board, Inc. (RNSB). RNSB operates
a complex of Head Start, Early Intervention, Family and Child Education
(FACE), Elementary, Junior High, and High Schools, the Pine Hill Health
Center, and several social services programs on the Ramah Navajo
Reservation in New Mexico. In 1970, RNSB established the Ramah Navajo
High School, the first Indian community school governed by an
allIndian, locally controlled school board. Our efforts were a model
for the groundbreaking 197 5 Indian Self-Determination and Education
Assistance Act, PL 93-638 (ISDEAA). Today, RNSB provides quality
services and programs to address our community's needs and uplift their
economic conditions.
RNSB's FACE-12 programs are primarily forward funded through the
Bureau of Indian Education (BIE) and have therefore been relatively
insulated from immediate funding disruptions. However, certain Indian
Education accounts are not forward funded, such as Facilities
Operations and Maintenance, which disrupts our ability to maintain a
quality learning environment for our students. We also appreciate the
opportunity to provide information to the Senate Committee on Indian
Affairs (SCIA) regarding the impacts of the government shutdown and
agency reductions in force on all of our programs, particularly those
that are not forward funded, but still provide critical services to our
community.
Because of the shutdown, RNSB has stepped into the role of the
federal government as trustee for the wellbeing of its people. RNSB's
Head Start grant renews annually on November 1, and many RNSB families
rely on the Supplemental Nutrition Assistance Program (SNAP) and the
Women, Infants, and Children (WIC) program for meals. With nothing
appropriated for the Head Start program in Fiscal Year 2026 and SNAP
and WlC benefits in a tenuous state, RNSB is grateful to be in a
position to use its own investment funds to ensure continuity of its
Head Start program, which provides essential health, education,
nutrition, and family services to the community. During a government
shutdown when families have fewer resources to rely on, Head Start
becomes an even more critical program. It is paramount, therefore, that
Congress insulate Head Start from the effects of government shutdowns.
For these reasons and as described in my testimony herein, RNSB
respectfully requests that SCIA support the following legislative
priorities to ease the burden on Tribal Nations during government
shutdowns:
Ensure a statutory reimbursement mechanism for RNSB's
operation of programs with lapsed appropriations in the
reopening bill;
Secure forward funding for Head Start and all education
related accounts and programs across federal agencies,
including, but not limited to, Facilities Operations and
Maintenance funds, Education Construction funds, and Johnson
O'Malley (JOM) funds;
Except or exempt from furlough all staff who service Indian
education programs, including Bureau of Indian Affairs (BIA)
staff, staff at the Department of Education's Office of Indian
Education (OIE), and staff in Region XI of the Office of Head
Start.
1. The RNSB Board of Directors has authorized use of investment income
to cover RNSB Head Start's fixed costs through December and
continues to provide vital care to our community in this time
of need
The ongoing shutdown coincided with RNSB's Head Start grant renewal
date of November 1, 2025 . RNSB's Head Start Program is funded to serve
60 students with 17 staff members who are impacted by a lapse in
funding. The timing of the grant renewal created significant
uncertainty regarding the continuity of critical early childhood
services in our community. While the Administration has been able to
divert funds to pay partial SNAP benefits and military salaries, no
alternative funding sources exist for Head Start besides Congressional
appropriations. Under the Antideficiency Act (31 U.S.C. 1341 ),
agencies generally cannot obligate funds during a lapse in
appropriations; without an explicit reimbursement mechanism from
Congress, Tribal grantees who advance non-federal funds do so at
significant financial risk.
Not only does the lapse in funding affect our Head Start services,
the government shutdown has prevented RNSB from accessing the technical
assistance and federal mechanisms necessary to renew its grants prior
to its expiration date. With little to no preparation, RNSB will
experience even further delays in receiving our new fiscal year funds
once the government reopens.
In exercising its fiduciary duties, the Board of Directors chose to
utilize RNSB 's investment income to cover Head Start's fixed costs
(GSA leases, salaries, utilities, etc.) through December 2025. If the
shutdown does not end before January 1, 2026, the Board of Directors
will re-evaluate the use of investment funds and our Head Start program
may be forced to close.
RNSB also continues to provide essential care to all members of the
Ramah Navajo community, including families of our students. Due to the
lapse in SNAP and WIC funds, many in our community were left with
uncertainty over how to provide meals for their families. RNSB
continues to check in on families in our community (beyond students
served by our K-12 and Head Start programs) and provide essential
resources, including meals for those in need. In addition, the state of
New Mexico has stepped in to cover reimbursements for nutritious meals
and snacks provided to our Head Start families through the Child and
Adult Care Food Program, which has experienced delays in federal
reimbursements due to the shutdown. While RNSB is grateful for the
supplemental resources that enable us to continue to provide meals to
our neediest families, these are only temporary measures, and we remain
concerned about the food insecurity of our community if the shutdown
drags on.
2. Congress must provide assurance that there will be a statutorv
reimbursement mechanism in the reopening bill that would enable
RNSB to re-coup expenses for operating its Head Start program
during the shutdown with investment funds
The RNSB Board of Directors urges Congress to provide a statutory
mechanism to reimburse RNSB for use of its investment income to keep
its Head Start program operational during the government shutdown. The
Board of Directors takes its fiduciary responsibility seriously and
made the crucial decision to provide continuity of early childhood
services to our community with investment income. This use of funds was
on an emergency basis, and RNSB will need to re-evaluate its use of
investment funds if the shutdown continues past December. A crucial
factor in RNSB's decision will be whether Congress provides assurance
that there will be a reimbursement of expended investment income.
RNSB urges Congress to include language in the reopening bill which
mirrors the Further Additional Continuing Appropriations Act of 2019:
SEC 139. (a) If a State (or another Federal grantee) used
State funds (or the grantee's nonFederalfund) to continue
carrying out a Federal program or furloughed State employees
(or the grantee's employees) whose compensation is advanced or
reimbursed in whole or in part by the Federal Government-
(1) such furloughed employees shall be compensated at their
standard rate of compensation for such period;
(2) the State (or such other grantee) shall be reimbursed for
expenses that would have been paid by the Federal Government
during such period had appropriations been available, including
the cost of compensating such. furloughed employees, together
with interest thereon calculated under section 6503(d) of title
31, United States Code; and
(3) the State (or such other grantee) may use funds available
to the State (or the grantee) under such Federal program to
reimburse such State (or the grantee), together with interest
thereon calculated under section 6503(d) of title 31, United
States Code.
(b) For purposes of this section, the term ``State'' and the
term ``grantee'' shall have the meaning as such term is defined
under the applicable Federal program under subsection (a). In
addition, 'to continue carrying out a Federal program' means
the continued performance by a Stale or other Federal grantee,
during the period of a lapse in appropriations, of a Federal
program that the State or such other grantee had been carrying
out prior to the period of the lapse in appropriations.
(c) The authority under this section applies with respect to
any period in fiscal year 2019 (not limited to periods
beginning or ending after the date of the enactment of this
Act) during which there occurs a lapse in appropriations with
respect to any department or agency of the Federal Government
which, but for such lapse in appropriations, would have paid,
or made reimbursement relating to, any of the expenses referred
lo in this section with respect to the program involved.
Payments and reimbursements under this authority shall be made
only to the extent and in amounts provided in advance in
appropriations Acts. \1\
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\1\ Pub. L. No. 116-5, 132 Stat. 3124 (2019).
3. Congress must forward-fund Head Start to ensure stability during
government shutdowns
The 2025 shutdown has caused uncertainty in our community regarding
funding for the Head Start program, salaries, and reimbursements
because it is not forward funded. The potential for temporary closure
of our program has on-the-ground impacts that have the potential to
lead to reduced enrollment and cutbacks in transportation and meals.
Forward funding is a mechanism by which some of the harmful impacts of
a government shutdown could be mitigated in the future. Al/AN Head
Start programs and the children, families, and communities they serve
stand to benefit greatly from the clarity and certainty that forward
funding for the program would provide. RNSB would be happy to work with
SCIA on legislative language and strategy to secure forward funding for
Head Start.
4. Congress must forward fund all Indian Education accounts, including
Facilities Operations and Facilities Maintenance, or enact the
Indian Programs Advance Appropriations Act
Although our schools have already received a significant portion of
their BIE funds for this school year, and it therefore may appear that
they are not impacted by the government shutdown, we are still impacted
with respect to non-forward funded programs. Facilities Operations and
Maintenance (O&M) funds are not forward-funded--meaning that during a
government shutdown, their appropriations lapse and the funds are not
available to our schools until Congress acts to fund the government.
Operations and Maintenance funding is essential for the health and
safety of students and staff at RNSB. It supports vital services like
janitorial staff, electrical power, potable water, pest control, and
other utilities. Maintenance funding covers routine and emergency
repairs, ensuring proper infrastructure for facilities such as water
towers, ventilation systems, and fire safety equipment. By ensuring
that school facilities are regularly assessed and maintained, schools
are able to prevent smaller issues from evolving into larger, costly,
and time-consuming emergencies and ensure the safety and comfort of our
students and staff to engage in productive learning.
The Facilities Operations and Maintenance accounts are crucial for
school budgets but remain underfunded and are not forward-funded. As a
result, during government shutdowns or when operating on a Continuing
Resolution, schools often cannot access these funds until late in the
school year or even after the school year ends. This forces schools to
borrow from forward-funded accounts like the Indian School Equalization
Program (ISEP), creating accounting issues and potentially leading to
service cuts. Additionally, delayed funding affects the timely
calculation of Tribal Grant Support Costs. Forward funding these
accounts would enhance efficiency and lead to long-term cost savings by
helping address maintenance needs before they escalate into costly
construction projects.
The Indian Programs Advance Appropriations Act (S. 2771/H.R. 5328)
would also directly address this issue by ensuring that the entirety of
the BIE receives not only forward funding, but advance appropriations,
fully insulating Tribal schools from the disruptions of annual funding
lapses. This measure represents the final step in safeguarding BIE
schools and students from shutdowns and the political uncertainty of
continuing resolutions.
5. Congress must except or exempt from furlough all federal staff that
administer Indian Education programs, including AI/AN Head
Start
Even though all 2,961 employees of the BIE are exempt personnel
under the 2025 BIE contingency plan, only 37 percent of BIA staff are
considered exempt, including staff in the Facilities and Maintenance
offices, and the entire staff at the OIE have received reduction-in-
force notices. Our schools are still impacted by these furloughs and
RIFs of non-BIE personnel. When inadequate staff are working to support
BIE school facilities, our maintenance needs go unaddressed. In
addition, RNSB has lost contact with the Office of Head Start while its
Head Start grant has expired and it awaits approval on a facilities
funding application that was submitted long ago.
RIFs and furloughs during the government shutdown have only
exacerbated an existing problem for federal offices serving Indian
Education programs. When the White House launched its reorganization of
the Executive Branch, the BIE dipped to an over 50 percent vacancy
rate. Further, when the Office of Head Start closed five Head Start
regional offices, Region XI, the region dedicated to AI/AN Head Start
grantees, was not closed, but at least half the staff in Region XI were
diverted to other regions that suddenly found themselves with
exponentially larger caseloads due to regional office consolidation.
The redirecting of Region XI staff to other regions merely exacerbated
a problem that already existed in Region XI: high rates of staff
turnover and chronic vacancies. RNSB has been assigned at least seven
different program specialists and grants management specialists since
2020. This high rate of turnover requires RNSB to restart the process
of building rapport with the specialist, educating the specialist on
the unique needs of Tribal Head Start programs and RNSB specifically,
and reiterating outstanding requests. As a result, projects stall and
RNSB is prevented from effectively partnering with the Office of Head
Start to administer the best Head Start services for the Ramah Navajo
community.
Like the BIE, the Office of Head Start would be considered exempt
from furlough if its programs were forward funded. We strongly
encourage Congress to work with federal agencies to ensure vital
positions serving Indian Education programs remain exempt or excepted
during furlough and fully funded.
Conclusion
Thank you for your continued support of Tribally Controlled Schools
and Native students and educators.
______
Prepared Statement of Andrea Pesina, President, National Indian Head
Start Directors Association
Chairman Murkowski, Vice Chairman Schatz, and Members of the
Committee:
Thank you for the opportunity to submit testimony on behalf of the
National Indian Head Start Directors Association (NIHSDA) regarding the
impacts of the government shutdown and agency reductions in force
(RIFs) on American Indian/Alaska Native (AI/AN) Head Start programs. We
deeply appreciate the Committee's commitment to upholding the United
States' trust and treaty obligations to Tribal Nations, which do not
lapse alongside appropriations, and ensuring continuity of effective,
quality programs and services to Native people despite Congressional
stalemates.
About NIHSDA and AI/AN Head Start
NIHSDA represents over 150 Tribal Head Start and Early Head Start
programs across the United States, serving more than 20,000 Native
children annually. These programs are not only early education
services--they are comprehensive, community-driven systems of care that
provide critical health screenings, nutrition support, mental health
services, and family engagement in a culturally rooted and sovereign
framework. They are essential public health and social service
providers, uniquely situated to meet the needs of Native children and
families in Tribal communities. Core services include:
Comprehensive Health Screenings: Including vision, hearing,
developmental, dental, behavioral, and immunization checks,
ensuring early detection and follow-up care.
Preventive Health and Nutrition Services: Programs provide
healthy meals, growth monitoring, and nutrition education
tailored to local and cultural dietary needs.
Mental and Behavioral Health Services: On-site mental health
consultation, trauma-informed supports, and social-emotional
learning integrated into the classroom environment.
Family Services and Case Management: Programs conduct family
needs assessments and provide referrals to housing, food
assistance, substance abuse recovery, and domestic violence
services.
Parent and Caregiver Support: Services include parenting
education, goal setting, and advocacy to promote self-
sufficiency and strengthen family well-being.
Emergency and Wraparound Support: Assistance with
transportation, clothing, and other urgent needs, especially in
crisis situations.
Culturally Responsive and Sovereignty-Driven Approaches: AI/
AN programs partner with Tribal health departments, incorporate
traditional practices and healing, and reflect the values,
governance, and priorities of their communities.
These essential services not only support children's immediate
development, but also address long-standing disparities in health
access, educational outcomes, and economic opportunity. AI/AN Head
Start programs are often one of the few consistent providers of
preventive health and social services in Tribal communities.
When the government shuts down, the essential services that AI/AN
Head Start programs provide are put in jeopardy. When Head Start goes
unfunded, Tribes are forced to divert resources to keep their Head
Start programs open, and if a Tribe lacks access to those resources, it
may be forced to shut down until the government reopens. Tribes are
unable to access the technical assistance necessary to renew their Head
Start grants, which will further delay their receipt of new fiscal year
funds. These serious problems only compound existing issues involving
staff turnover, regional office closures, and RIFs at the Office of
Head Start, which prevent Tribes from effectively administering quality
and compliant Head Start programs.
NIHSDA surveyed AI/AN Head Start directors to assess how the
federal government shutdown and related federal workforce reductions
have affected their programs. Respondents represent Tribal Head Start
and Early Head Start programs across multiple regions and funding
cycles. The findings reveal severe disruption of program operations,
communication, and compliance--compounded by the recent reduction of
Region XI (AI/AN) Office of Head Start staff by half earlier this year.
The combined impact of the shutdown, staffing cuts, and Training/
Technical Assistance (TTA) stop-work order has left programs without
critical federal guidance or support during active grant and review
cycles.
Government Shutdown and RIF Impacts on AI/AN Head Start Programs
1. Funding Expiration and Program Closures
481 AI/AN Head Start centers operate in 26 states, providing vital
services to children and families and employing thousands--teachers,
family service workers, bus drivers, cooks, and more. These programs
serve as economic engines in Tribal communities, enabling 73 percent of
participating families to work, attend school, or complete job
training. Without sustained federal investment, these families risk
losing both child care and jobs--further weakening Tribal economies.
This would have devastating consequences, not only for the children and
families directly impacted but also for the broader community and
economy.
On October 31, 2025, 12 AI/AN Head Start grants serving nearly
2,500 children and employing nearly 600 staff members expired. While
the Administration has been able to divert funds to pay partial
benefits under the Supplemental Nutrition Assistance Program and
military salaries, no alternative funding sources exist for Head Start
besides Congressional appropriations. Therefore, these twelve AI/AN
Head Start programs have been forced to turn to non-federal resources
to keep their doors open and continue providing critical services to
their communities. Some Tribes, such as the Fort Belknap Indian
Community and the Cherokee Nation, have been able to rely on Tribal
funds to support Head Start operations, but Tribes may be unable to
sustain programming if the shutdown drags on much longer. Other
programs, such as the Ramah Navajo School Board (RNSB), have used
Tribal funds to support essential Head Start operations and staffing
costs, but require a statutory mechanism for federal reimbursement of
those funds. If these Tribes did not have the resources to continue
operating Head Start without federal appropriations, they may have been
forced to shut down their programs entirely.
On November 30, 2025, 13 additional AI/AN Head Start grants will
expire. That's $27 million funding over 2,000 enrollment slots in 9
states. If the shutdown drags on, these grantees will also be forced to
create contingency plans, divert funds to cover costs, and potentially
reduce services or even close their doors entirely. These communities
cannot afford to go without these services.
2. Furloughs, Reductions in Force, and Lack of Contact with the Office
of Head Start
Not only does the lapse in funding affect AI/AN Head Start
services, the government shutdown has prevented Tribes whose grants
have expired from accessing the technical assistance and federal
mechanisms necessary to renew their grants prior to their expiration
date. With little to no preparation, these Tribes will experience even
further delays in receiving their new fiscal year funds once the
government reopens.
Staff furloughs affect more than just grantees whose grants have
expired. Many NIHSDA members have reported that they have not had
contact with the Office of Head Start since August, leaving critical
questions regarding upcoming grant renewals, Change of Scope requests,
carryover requests, low-cost extensions, monitoring reviews, facility
improvement and construction applications, and new requirements
unanswered. Monthly program specialist calls have been suspended
without notice or status updates from staff. Tribes that have submitted
final reports, corrective actions, or appeals have received no
response, leaving programs in ``unknown status.'' The lack of technical
assistance and support from the Office of Head Start has stalled Tribal
operations, created uncertainty and confusion, and prevented Tribes
from budget, compliance, and project planning for their programs. When
Tribes are unable to obtain guidance on governance, reporting, and
policy interpretation, it creates uncertainty around the correctness of
pending submissions and upcoming FA1 and FA2 reviews, which can affect
funding continuity. Additionally, Tribes may be unable to complete
required reports and submissions without guidance and are uncertain
whether missed deadlines will be forgiven when federal operations
resume.
Head Start is a complex and heavily regulated program. Every day,
hardworking Tribal employees dedicate substantial time and resources
toward reporting, oversight, and monitoring to ensure compliance with
program requirements and avoid disruptions in funding. When Tribes are
held accountable to a complex set of federal standards, it is the
responsibility of the United States to provide a federal support system
to help Tribes succeed. The shutdown has effectively eliminated that
federal support system, while Tribes continue to be held to account.
The lost contact during the shutdown has only exacerbated a dire
staffing situation at the Office of Head Start due to reorganization
efforts earlier in the year. On April 1, 2025, the Office of Head Start
abruptly closed and laid off all staff in five of its regional offices.
Region XI, the region dedicated to AI/AN Head Start grantees, was not
closed, but at least half the staff in Region XI were diverted to other
regions that suddenly found themselves with exponentially larger
caseloads due to regional office consolidation. The redirecting of
Region XI staff to other regions merely exacerbated a problem that
already existed in Region XI: high rates of staff turnover and chronic
vacancies. One NIHSDA member has been assigned at least seven different
grants management specialists since 2020. This high rate of turnover
requires the Tribal grantee to restart the process of building rapport
with the specialist, educating the specialist on the unique needs of
Tribal Head Start programs and the specific Tribe, and reiterating
outstanding requests. As a result, projects stall and Tribes are
prevented from effectively partnering with the Office of Head Start to
administer the best Head Start services for their communities.
Finally, the shutdown has coincided with the integration of seven
AI/AN Head Start grants into the Public Law 102-477, as amended (PL
477) program, which began in the summer of 2024. NIHSDA supports
Tribes' sovereign authority to exercise their right under the PL 477
law to propose integration of Head Start into their PL 477 plans, as
well as the Bureau of Indian Affairs' (BIA) exclusive authority to
approve or disapprove integration of federal programs into PL 477
plans. Head Start is a program with numerous statutory, regulatory, and
administrative requirements, while the purpose of the PL 477 law is to
``reduc[e] administrative, reporting, and accounting costs.'' \1\ To
ensure the smooth implementation of Head Start integration into PL 477
plans in compliance with all applicable federal laws, NIHSDA has
convened monthly meetings with the BIA, the Office of Head Start, and
the PL 477 Tribes to collaborate on implementation matters.
---------------------------------------------------------------------------
\1\ 25 U.S.C. 3401.
---------------------------------------------------------------------------
The shutdown and lack of federal staff at both the BIA and the
Office of Head Start to support Tribes administering Head Start through
a brand new mechanism has brought all progress implementing PL 477
integration to a halt. PL 477 Tribes with upcoming FA1 reviews have no
guidance (or ability to obtain guidance) around protocol or the roles
of the BIA and the Office of Head Start in conducting these reviews.
Therefore, Tribes risk being unprepared for these upcoming reviews and
falling out of compliance. Additionally, while non-PL 477 Tribes have
been able to access the Payment Management System to draw down Head
Start funds as normal, PL 477 integration requires an extra step in the
funds transfer process in which the Office of Head Start must transfer
funds to the BIA within 30 days of apportionment. \2\ The BIA then
transfers the funds to the PL 477 Tribe via the Tribe's 638 agreement.
The lack of staff at the BIA and Office of Head Start have left PL 477
Tribes unable to access their Head Start funds.
---------------------------------------------------------------------------
\2\ Id. 3412(a).
---------------------------------------------------------------------------
3. Impact of the Training and Technical Assistance Stop Work Order
Not only did the Office of Head Start place most staff on furlough
during the government shutdown, it also issued a stop work order to the
Training and Technical Assistance (TTA) System, which is contracted out
to improve the knowledge, skills, and practices of Head Start grant
recipient staff to implement quality programs. The suspension of all
TTA services has had an extreme negative effect on program quality,
compliance, and staff development. Programs have been unable to access
assistance for facility applications, budget revisions, and fiscal
reviews, leaving Head Start directors unable to confirm compliance with
Office of Head Start fiscal protocols. There has been no access to
education specialists for curriculum guidance, CLASS \3\ preparation,
or teacher coaching. Therefore, programs may not align instruction with
the Head Start Early Learning Outcomes Framework or cultural curriculum
standards, threatening program quality. Health and safety staff have
not received health and mental health guidance or information on
updated immunization requirements or inspection compliance. Even when
updated health standards have been communicated to Tribal staff, there
is no guidance or clarity on how to implement them during the shutdown.
Head Start Policy Council and Tribal Council trainings have been
cancelled or postponed, leaving new directors and governing bodies
without required orientations and compliance trainings. Finally,
reviews and corrective actions are delayed, while required TTA-linked
activities for CLASS, enrollment, and leadership transitions cannot
proceed.
---------------------------------------------------------------------------
\3\ The Classroom Assessment Scoring System (CLASS) is an
observation instrument that assesses the quality of teacher-child
interactions in center-based preschool classrooms.
---------------------------------------------------------------------------
Some programs have been forced to hire outside consultants at an
additional cost to replace lost TTA services. This gap in support
greatly affects AI/AN Head Start programs' ability to ensure compliance
while delivering high-quality services to families.
4. Collateral Impacts of Nutrition Funding Delays
NIHSDA members have reported increased food insecurity among
families due to reductions and delays in benefits under the
Supplemental Nutrition Assistance Program (SNAP) and delayed
reimbursements under the Child and Adult Care Food Program (CACFP). As
holistic programs providing nutrition services, Head Start agencies
fill the increased gap in meal and nutrition services left by SNAP and
CACFP shortages, but without any additional funds. Federal funding for
SNAP ran out on November 1, and SNAP payments have been left in limbo
due to the high-stakes legal battle that has fluctuated significantly
over a matter of days. CACFP reimbursements have also been delayed,
forcing some states to step in to cover reimbursements. Head Start
grantees already stretch their federal funding as far as possible to
meet community needs, and increased food insecurity can make costs
skyrocket and strain AI/AN Head Start vendor relationships with food
providers. Shortages in other federal programs significantly impact
Head Start, making protecting Head Start during government shutdowns
all the more imperative.
How Congress Can Insulate Tribal Head Start Programs from the Impacts
of Government Shutdowns and Agency Reductions in Force
1. Congress must include a statutory reimbursement mechanism in the
reopening bill that would enable AI/AN Head Start programs that
have used their own funds to recoup expenses for operating Head
Start during the shutdown
As mentioned above, NIHSDA members whose Head Start grants have
expired have turned to Tribal funds to supplement the lapse in federal
funds and keep their program doors open. These Tribes may need to
continue relying on their own funds even after the government reopens
while the Office of Head Start takes time to send out Notices of Award
and initiate the grant renewal process. Therefore, NIHSDA requests that
SCIA support the inclusion of language in the reopening bill that would
reimburse grantees for funds expended to support the continuation of
federal programs during the lapse in appropriations. Language
accomplishing this was included in the Further Continuing
Appropriations Act of 2019, which reopened the government after the
2018-2019 government shutdown:
SEC. 139. (a) If a State (or another Federal grantee) used
State funds (or the grantee's non-Federal funds) to continue
carrying out a Federal program or furloughed State employees
(or the grantee's employees) whose compensation is advanced or
reimbursed in whole or in part by the Federal Government--
(1) such furloughed employees shall be compensated at their
standard rate of compensation for such period;
(2) the State (or such other grantee) shall be reimbursed
for expenses that would have been paid by the Federal
Government during such period had appropriations been
available, including the cost of compensating such furloughed
employees, together with interest thereon calculated under
section 6503(d) of title 31, United States Code; and
(3) the State (or such other grantee) may use funds
available to the State (or the grantee) under such Federal
program to reimburse such State (or the grantee), together with
interest thereon calculated under section 6503(d) of title 31,
United States Code.
(b) For purposes of this section, the term ``State'' and the
term ``grantee'' shall have the meaning as such term is defined
under the applicable Federal program under subsection (a). In
addition, `to continue carrying out a Federal program' means
the continued performance by a State or other Federal grantee,
during the period of a lapse in appropriations, of a Federal
program that the State or such other grantee had been carrying
out prior to the period of the lapse in appropriations.
(c) The authority under this section applies with respect to
any period in fiscal year 2019 (not limited to periods
beginning or ending after the date of the enactment of this
Act) during which there occurs a lapse in appropriations with
respect to any department or agency of the Federal Government
which, but for such lapse in appropriations, would have paid,
or made reimbursement relating to, any of the expenses referred
to in this section with respect to the program involved.
Payments and reimbursements under this authority shall be made
only to the extent and in amounts provided in advance in
appropriations Acts. \4\
---------------------------------------------------------------------------
\4\ Pub. L. No. 116-5, 132 Stat. 3124 (2019).
NIHSDA urges Congress to include a similar provision in the
upcoming reopening bill.
2. Congress must forward-fund Head Start to ensure stability during
government shutdowns
Forward funding for Head Start could mitigate many of the harmful
impacts of the government shutdown described in this testimony. Forward
funds become available during the last quarter of the budget year and
continue into at least the following fiscal year. By making funds
available for a period of more than 12 months, forward funded programs
are able to conduct long-term budget planning, create contingency plans
and safety nets, and ensure a continuity of programming for recipients.
The vast majority of Indian education accounts, including Elementary
and Secondary Education Act funds and the Indian School Equalization
Program, are forward funded for these very reasons, as well as to
accommodate programs with significant budgetary obligations during the
summer and fall in alignment with the academic school year. NIHSDA
would be happy to work with SCIA on legislative language and strategy
to secure forward funding for Head Start.
3. Congress must direct the Office of Head Start to restore staffing
levels in Region XI to adequately and efficiently administer
all AI/AN Head Start programs and ``except'' or ``exempt'' all
Tribal-serving employees of the Office of Head Start
As extensively detailed in this testimony, the Office of Head Start
has been hit hard by furloughs during the government shutdown, as well
as the reduction in force efforts conducted by the Department of Health
and Human Services earlier this year. Such severe staffing shortages
prevent AI/AN Head Start agencies from accessing the critical federal
support necessary to maintain compliance with Head Start requirements
and provide quality services to families. Therefore, NIHSDA seeks
SCIA's support in working with the Department of Health and Human
Services to (1) ensure Region XI is fully staffed, and (2) ensure vital
positions serving Tribal Head Start programs remain excepted or exempt
during furlough.
Conclusion
For 60 years, Tribal Head Start and Early Head Start programs have
served as foundational systems of care and opportunity for Native
children and families. These programs honor cultural identity, promote
educational success, and strengthen Tribal communities. The federal
government must uphold its trust responsibility by ensuring equitable,
stable, and culturally grounded support for these services, even during
government shutdowns.
We thank SCIA for its commitment to oversight and for recognizing
the vital role of Tribal Head Start in delivering essential health,
education, and social services to Native children and families.
______
Prepared Statement of Jennifer Rackliff, Executive Director, National
Indian Child Care Association
Introduction
On behalf of the National Indian Child Care Association (NICCA), I
am submitting the following comments regarding the impacts of the
recent federal shutdown on Tribal early childhood programs-specifically
Tribal Child Care and Development Fund (CCDF) grantees and other Tribal
early learning programs. These comments reflect both organizational
observations and direct feedback from Tribal program leaders.
Disruptions in Federal Support and Regional Infrastructure
The shutdown magnified existing challenges stemming from the
elimination of five ACF Regional Offices earlier this year. These
regions collectively serve approximately 80 percent of Tribal
governments. Their closure resulted in:
Loss of long-serving federal staff with extensive
institutional knowledge of Tribal child care.
Significant gaps in assigned federal points of contact, with
some programs going months without a designated OCC
representative.
Newly assigned federal staff who, through no fault of their
own, often lack adequate training or experience with Tribal
CCDF programs and Tribal governance structures.
Recent layoffs of additional regional staff--including those
supporting Tribes in Region VIII--have further reduced federal capacity
at a time when programs need more guidance, not less.
Federal Staffing Reductions Affecting Technical Assistance
Staff reductions have also affected the Tribal Child Care Capacity
Building Center (TCC CBC), the national technical assistance provider
for Tribal CCDF. Several senior staff members with long-standing
relationships across Indian Country were laid off, resulting in:
Slower response times for TA requests;
Interrupted continuity of training; and
Reduced support for new Tribal staff and smaller programs.
In addition, the Office of Early Childhood Development (ECD) has
reportedly eliminated its cross-office staff who previously coordinated
work between the Office of Child Care (OCC) and the Office of Head
Start (OHS). This change will impede collaboration across early
childhood programs and create further challenges for Tribal communities
working to strengthen integrated early learning systems.
Financial Implications for Tribal Programs
Tribal CCDF
Because Tribal CCDF is forward funded, programs have been partially
protected from immediate shutdown effects. However, reduced staffing,
communication gaps, and uncertainty within OCC have slowed
implementation of essential activities--including quality improvements,
facility projects, and planned service expansions.
Tribes have also reported delays in Tribal CCDF Plan approvals and
funding distribution. Some have received only partial mandatory
funding, while others have not yet received discretionary funds or full
Notices of Award.
Tribal Head Start
The shutdown poses a direct and urgent threat to Tribal Head Start
operations. Approximately 12 Tribal Head Start programs--nearly 10
percent of all Tribal grantees serving 2,400 children and employing 600
staff--have November 1 grant start dates. Many may not receive timely
grant awards or drawdown authority.
Several Tribes have reported that they are temporarily covering
program costs to avoid classroom closures, but this is not sustainable.
Delays in Tribal Ccdf Plan Approval and Funding
The 2025-2027 Tribal CCDF Plans were submitted in July 2025. As of
this submission:
Many programs have not received official approval or
feedback.
Several programs have been told their plans were accepted
but have not received full Notices of Award.
Funding has been inconsistent, with some Tribes receiving
only partial mandatory funds and no discretionary funds.
Some grantees can draw down limited preliminary amounts but
have not received their full allocation or award letters.
These delays directly affect staffing decisions, provider payments,
and the capacity to maintain or expand child care services.
Direct Tribal Program Feedback
Tribal CCDF Administrators shared the following real-time impacts:
``Our plan was accepted, and we only received partial
mandatory funding and nothing for discretionary as of this
text.''
``Our plan was accepted and approved. We can draw down money.
We have not received an award letter with the total amount.''
``My plan was accepted and approved but funding and NOA has
not been received as of yet.''
``Another Tribal Regional contact laid off. The Tribal
Technical Assistance Center has had layoffs.''
These statements underscore widespread delays and inconsistent
communication across multiple regions.
Broad Programmatic Impacts
Tribal CCDF Plans
Despite timely submissions, many Tribes have not received approval
or formal feedback on their 2025-2027 plans. Programs are continuing
operations with the assumption that approval will eventually be
granted.
Regional Staffing
Ongoing regional staff layoffs--most recently in Region VIII--have
further diminished federal capacity, compounding the impact of earlier
office closures.
Technical Assistance
The national TA infrastructure supporting Tribal CCDF has been
weakened by staff reductions within the Tribal Child Care Capacity
Building Center, including the loss of senior staff uniquely
experienced in Tribal early childhood systems.
Additional Tribal Program Impacts
In one reported case, a Tribe has been forced to completely
restructure its education, learning, and human services departments due
to shutdown-related disruptions and ongoing OCC structural issues. This
has included laying off long-term employees and eliminating entire
program areas. These decisions do not align with the Tribe's priorities
but were made necessary by prolonged federal delays, lack of
communication, and uncertainty surrounding funding and plan approvals.
Cross-Office Coordination
The removal of ECD's cross-office team has impeded alignment
between OCC and OHS. This creates further barriers to system
integration in Tribal communities that rely on coordinated approaches
across child care, Head Start, home visiting, and other early learning
supports.
Cumulative Impacts
The combined effects of office closures, staff layoffs, TA
reductions, and award delays have resulted in:
Slower federal response times for Tribal inquiries;
Lack of clarity on plan approvals and compliance
expectations;
Delayed guidance on allowable uses of CCDF and Head Start
funds;
Uncertainty around reporting timelines and grant
modifications; and
Increased administrative burden, especially for smaller
Tribes with limited staff.
This environment of uncertainty undermines Tribal governments'
ability to deliver stable, high-quality services for children and
families.
Consequences for Tribal Communities and Families
The cumulative impact of shutdown delays, federal staffing
shortages, and disrupted technical assistance affects far more than
administrative operations. These challenges directly influence:
Children's cultural, social-emotional, and early learning
development.
The availability and stability of child care for Tribal
families.
Continuity of early learning services.
Tribal governments' ability to build and sustain culturally
grounded early childhood systems.
Workforce participation and economic stability within Tribal
communities.
Tribal governments' broader economic stability.
For many Tribal communities--especially rural and remote ones--
child care options are already scarce. Federal instability compounds
these existing barriers.
Recommendations
NICCA urges the federal government to:
1. Provide immediate written updates to all Tribal CCDF and
Tribal Head Start programs regarding award status, plan
approval, and expected timelines.
2. Restore or replace lost federal and TA staff capacity with
individuals trained in Tribal early childhood systems.
3. Rebuild cross-office coordination between OCC and OHS to
support integrated Tribal early childhood systems.
4. Protect Tribal child care and early learning programs from
future shutdown impacts through advanced obligational authority
or alternative funding mechanisms.
5. Consult directly with Tribes and Tribal organizations to
identify long-term solutions for federal staffing and
communication structures.
______
Prepared Statement of Francys Crevier, CEO, National Council of Urban
Indian Health
My name is Francys Crevier, I am Algonquin and the Chief Executive
Officer of the National Council of Urban Indian Health (NCUIH), a
national representative advocating for the 41 Urban Indian
Organizations (UIOs) contracting with the Indian Health Service (IHS)
under the Indian Health Care Improvement Act (IHCIA) and the American
Indians and Alaska Native patients they serve. On behalf of NCUIH and
these 41 UIOs, I would like to thank Chairman Murkowski, Vice Chairman
Schatz, and Members of the Committee for your leadership to improve
health outcomes for urban Indians and for the opportunity to provide
testimony on the current impacts of the government shutdown. We
respectfully request the following:
Extend Advance Appropriations to All Indian Country Serving
Programs
Request Reduction in Force Exemptions for All Federal
Employees Serving Indian Country
A Brief History on Urban Indian Organizations
As a preliminary issue, ``urban Indian'' refers to any American
Indian or Alaska Native (AI/AN) person who is living in an urban area,
either permanently or temporarily. UIOs were created by urban AI/AN
people with the support of Tribes, starting in the 1950s in response to
severe problems with health, education, employment, and housing. \1\
Congress formally incorporated UIOs into the Indian Health System in
1976 with the passage of the Indian Health Care Improvement Act
(IHCIA). Today, over 70 percent of AI/AN people live in urban areas.
UIOs are an integral part of the Indian health system, comprised of the
Indian Health Service, Tribes, and UIOs (collectively I/T/U), and
provide essential healthcare services, including primary care,
behavioral health, and social and community services, to patients from
over 500 Tribes in 38 urban areas across the United States.
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\1\ Relocation, National Council for Urban Indian Health, 2018.
2018_0519_Relocation.pdf(Shared) Adobe cloud storage
---------------------------------------------------------------------------
Advance Appropriations for the Indian Health Service Critical to
Maintaining Services in the Shutdown
The historic inclusion of advance appropriations for IHS in the
FY23 appropriations bill and its subsequent continuation in following
FY spending packages has proved to be critical during the current
government shutdown. Previously, the I/T/U system was the only major
federal health care provider funded through annual appropriations. As
such, in previous shutdowns, clinic staff had to go without pay, some
UIOs reduced services, while others had to shutdown completely. These
impacts were severe and long lasting in our communities.
With IHS currently receiving advance appropriations, funding has
been able to flow to UIOs without delay during the current shutdown,
ensuring that services are maintained for the community. As one UIO
leader said, ``The last government shutdown impacted our ability to
provide full services, which resulted in 10 members of our community
losing their lives. Advance Appropriations has allowed us to stay open
and continue serving our people, and that stability has truly saved
lives.'' Advance appropriations has been a crucial step towards
ensuring long-term, stable funding for IHS, which improves
accountability and increases staff recruitment and retention at IHS.
Unfortunately, not all line items within the IHS budget are
protected under advance appropriations, notably, Sanitation Facilities
Construction, the Indian Health Care Improvement Act Fund, Facilities
Construction, Contract Support Costs (CSC), Section 105(l) lease
payments, and Electronic Health Records. These accounts account for
more than $1.3 billion in the IHS budget. \2\
---------------------------------------------------------------------------
\2\ Continuing Appropriations and Extensions Act, H.R. 9747, 118th
Cong. (2024)
---------------------------------------------------------------------------
Additionally, the Bureau of Indian Affairs (BIA) and the Bureau of
Indian Education (BIE) do not receive any advance appropriations. While
not related to health, these departments have a significant importance
to the many functions in Indian Country. One Montana UIO has informed
us that they have completed and submitted their application for the
BIA's loan guarantee for their $21 million capital project. However,
the shutdown has stalled communication with federal staff, making it
impossible to confirm if or when the loan guarantee will be approved.
As a result, their ability to move forward with vital renovations and
begin construction has been delayed, placing both the project and its
anticipated benefits to their community at risk. This situation
highlights how the disruption to federal processes is threatening
essential infrastructure and jeopardizing much-needed investment in
Indian Country.
The success of advance appropriations for IHS demonstrates that now
more than ever Congress should pass S. 2771, the Indian Programs
Advance Appropriations Act of 2025, which would extend advance
appropriations to BIA and BIE.
Proposed Reduction in Force Threatens Trust Obligations
The current Office of Management and Budget (OMB) proposed
Reduction in Force (RIFs) represent a serious threat to programs and
staff within the Department of Health and Human Services (HHS) that
serve Indian country. While portions of the process have been
temporarily paused following a Temporary Restraining Order (TRO) issued
in response to legal challenges, the threat of these RIFs has created
significant fear about the potential instability that would arise from
these actions.
The federal government owes a trust obligation to provide adequate
healthcare to American Indian and Alaska Native people. It is the
policy of the United States ``to ensure the highest possible health
status for Indians and urban Indians and to provide all resources
necessary to effect that policy.'' \3\ This trust obligation is
fulfilled, in part, through direct delivery of programs and services
and through the provision of federal funding to Tribal programs and
UIOs. Using the government shutdown as pretext to RIF federal
employees, with no exemption for federal employees serving Indian
Country, decimates the ability of the United States to carry out its
sacred obligations to American Indian and Alaska Native communities.
---------------------------------------------------------------------------
\3\ 25 U.S.C. 1602(1).
---------------------------------------------------------------------------
We request that the Committee request that OMB issue guidance to
exempt Indian Country programs and federal employees serving Indian
Country from RIFs in order to uphold United States' delivery on trust
and treaty obligations.
Conclusion
While the inclusion of advance appropriations for IHS has been a
lifesaving step forward, the current shutdown and threat of RIFs
underscore the urgent need for further Congressional and Administrative
action. Extending advance appropriations to all Indian Country-serving
programs and protecting the federal workforce that upholds the trust
and treaty responsibilities of the United States are essential to
ensuring continuity of care and stability in our communities. We thank
the Committee for its steadfast leadership and urge continued
bipartisan collaboration to safeguard the health and well-being of all
American Indian and Alaska Native people, no matter where they live.
______
Teresa Sarabia, Juneau, AK
October 29, 2025
Hon. Lisa Murkowski
Senate Committee on Indian Affairs,
Hart Senate Office Building,
Washington, DC 20510
Subject: Impacts of the Government Shutdown on Tribal
Citizens and Communities
Dear Senator Murkowski:
In response to the Senate Committee on Indian Affairs' recent
request for information on how the federal government shutdown is
impacting Tribal Nations, I am writing to share the experiences and
challenges being felt by citizens of the Central Council of the Tlingit
& Haida Indian Tribes of Alaska.
The shutdown threatens to halt or delay essential services that our
families rely on, including healthcare, housing, education, social
services, and food assistance. These programs are far more than
government initiatives--they are lifelines that sustain the well-being
of our Elders, children, and working families, and help preserve the
health, stability, and resilience of our tribal communities. Each day
the shutdown continues deepens uncertainty and hardship, putting our
people at risk.
In Southeast Alaska, where the cost of living is high and access to
resources is already limited, interruptions to federal funding has
immediate and lasting impacts. Programs such as Head Start,
Supplemental Nutrition Assistance, Tribal Temporary Assistance for
Needy Families, housing and energy assistance, and health services are
particularly vulnerable.
Beyond the direct impacts on families, the shutdown strains tribal
governments and employees who work tirelessly to deliver services under
self-governance compacts and grants. When federal funds are withheld,
tribes are forced to make impossible choices: suspend services that
support tribal citizens, lay off employees (also our tribal citizens),
or deplete limited trust funds--actions that weaken long-term
sustainability and self-determination.
As tribal citizens, we deserve stability, dignity and respect.
Federal funding is not a favor; it represents the United States' trust
and treaty obligations to tribal nations. When that commitment falters,
the ripple effects are felt in every corner of our communities--in our
homes, our schools, and our ability to care for one another.
Gunalcheesh, Haw'aa (Thank You) for your attention and for seeking
input directly from tribes and tribal citizens. We appreciate the
Senate Committee's commitment to Indian Country and urge these lived
experiences translate into meaningful federal action that ensures the
continuity of tribal services and strengthens the federal government's
fulfillment of its trust and treaty obligations.
Sincerely,
Teresa Sarabia, Tlingit & Haida Employee
______
October 24, 2025
Juneau, AK
Hon. Lisa Murkowski,
Hart Senate Office Building,
Washington DC.
Subject: Impacts of the Government Shutdown on Tribal
Citizens and Communities
Dear Senator Murkowski,
Ya'at'eeh, Haw'aa (Thank You) for your attention and for seeking
input directly from tribes and tribal citizens. We appreciate the
Senate Committee's commitment to Indian Country and urge these lived
experiences translate into meaningful federal action that ensures the
continuity of tribal services and strengthens the federal government's
fulfillment of its trust and treaty obligations.
In response to the Senate Committee on Indian Affairs' recent
request for information on how the federal government shutdown is
impacting Tribal Nations, I am writing to share the experiences and
challenges being felt by citizens of the Central Council of the Tlingit
& Haida Indian Tribes of Alaska.
The shutdown threatens to halt or delay essential services that our
families rely on, including healthcare, housing, education, social
services, and food assistance. These programs are far more than
government initiatives--they are lifelines that sustain the well-being
of our Elders, children, and working families, and help preserve the
health, stability, and resilience of our tribal communities. Each day
the shutdown continues deepens uncertainty and hardship, putting our
people at risk.
In Southeast Alaska, where the cost of living is high and access to
resources is already limited, interruptions to federal funding has
immediate and lasting impacts. Programs such as Head Start,
Supplemental Nutrition Assistance, Tribal Temporary Assistance for
Needy Families, housing and energy assistance, and health services are
particularly vulnerable.
Beyond the direct impacts on families, the shutdown strains tribal
governments and employees who work tirelessly to deliver services under
self-governance compacts and grants. When federal funds are withheld,
tribes are forced to make impossible choices: suspend services that
support tribal citizens, lay off employees (also our tribal citizens),
or deplete limited trust funds--actions that weaken long-term
sustainability and self-determination.
As tribal citizens, we deserve stability, dignity and respect.
Federal funding is not a favor; it represents the United States' trust
and treaty obligations to tribal nations. When that commitment falters,
the ripple effects are felt in every corner of our communities--in our
homes, our schools, and our ability to care for one another.
Sincerely,
Paula M. Phillips, Tlingit & Haida Employee
______
Western Governors' Association
October 30, 2025
Hon. Lisa Murkowski;
Hon. Brian Schatz,
Hart Senate Office Building,
Washington DC.
Dear Chairman Murkowski and Vice Chairman Schatz:
Attached please find Western Governors' Association (WGA) policy
resolutions 2023-09, Missing and Murdered Indigenous Persons, and 2025-
05, Physical and Behavioral Health Care in Western States.
The resolutions contain Western Governors' recommendations
addressing the need to maintain essential services for tribal
communities during lapses in federal funding.
I request that you include this document in the permanent record of
the hearing, as it articulates Western Governors' collective and
bipartisan policy on this important issue.
Thank you for your consideration of this request.
Sincerely,
Jack Waldorf, Executive Director
Attachments
policy resolution 2023-09--missing and murdered indigenous persons
A. BACKGROUND
American Indian and Alaska Native people, particularly women, are
disproportionately likely to experience violence, murder, or to go
missing. This disproportionate risk is encapsulated as the Missing and
Murdered Indigenous Persons (MMIP) crisis. The MMIP crisis is fueled by
complex and historic underlying factors impacting indigenous
communities, including: insufficient law enforcement resources,
funding, and cultural understanding among non-tribal law enforcement
agencies; lack of non-tribal and tribal collaboration; a shortage of
personnel on historic tribal lands; substance abuse issues; historic
lack of trust of non-tribal entities; and deficient housing and
infrastructure. Additionally, tribal nations receive a variety of
funding that can vary by state and status, including Pub. L. 280
tribes, treaty tribes, and tribes that have administrative control
through Pub. L. 93-638. The Governors and states represented herein do
not intend for language used to be legally binding or to be viewed as a
reflection or concession of any Governor or state's position related to
the reservation status of any specific tribe.
B. GOVERNORS' POLICY STATEMENT
Addressing Law Enforcement Shortages
1. Having sufficient law enforcement personnel is important to
ensure timely response and adequate resources for MMIP cases. Western
Governors urge the Bureau of Indian Affairs (BIA) to increase the
number of tribal officers on lands under tribal and federal
jurisdiction and increase the pace of hiring officers.
2. Tribal officers employed by BIA or tribes use the 638 process to
self-administer federal funds to support their tribal police forces.
Western Governors recommend that BIA ensure that 638 tribes receive
funding equivalent to the BIA tribal police pay scale to allow 638
tribes to support officers at an equivalent level to BIA-administered
tribal police forces.
3. Tribal courts and justice systems provide critical
infrastructure to process and prosecute MMIP cases. Western Governors
recommend appropriate, ample funding for tribal courts and justice
systems.
4. While MMIP cases occur across both urban and rural Native
populations, Western Governors recognize that there are specific
limitations for law enforcement in rural communities. Western Governors
encourage creative solutions to support the recruitment and retention
of tribal officers, particularly housing programs to ensure that tribal
officers can remain within their communities.
5. Currently, tribal officers can receive training from the BIA's
Indian Policy Academy in New Mexico and the Indian Policy Academy
Advanced Training Center in North Dakota, both of which can be a
significant distance for recruits to travel for basic training. Western
Governors urge BIA to expand beyond the single tribal officer training
program and create regionalized law enforcement training programs that
reduce the burden of training for officers.
6. Western Governors recognize diverse agreement opportunities
exist, such as cross deputization, joint powers agreements, and mutal
aid agreements, to assist with the speed of law enforcement response
and suit the variety of systems and scenarios across the West, and
support efforts to share best practices.
7. The AMBER Alert system is the only nationwide alert system for
those who are missing or abducted. Across the West, states have also
implemented state-specific MMIP alert systems. Western Governors
support efforts to create MMIP alert systems and increase inclusion of
state level systems into federal alert systems.
Support Systems
8. BIA victim services advocates provide direct services to victims
and crucial assistance for victims navigating complex bureaucratic
systems. Western Governors request federal funding for victim services
advocates.
9. Ensuring federal staff receive cultural sensitivity training
provides staff with the ability to effectively work with survivors.
Western Governors urge federal agencies to implement culturally
sensitive training and response courses for new employees working on
all aspects of MMIP.
10. Western Governors call for greater transparency on how federal
funding is allocated among tribes with 638 status and BIA administered
services. Specifically, Western Governors implore the federal
government to coordinate and collaborate with survivor support services
at the state and tribal level so that survivors and their communities
receive the maximum amount of resources.
11. To ensure wrap around services, Western Governors urge Congress
to increase funding for mental and behavioral health services for
survivors and their communities.
Collaboration
12. MMIP cases span across many jurisdictions, which can complicate
response times. Western Governors urge federal partners to streamline
emergency response communications across related federal agencies,
including BIA and the Federal Bureau of Investigation.
13. The consistent collection of data across jurisdictions and each
level of government is necessary to understand the scope and scale of
MMIP cases. Western Governors support sharing best practices for data
sharing agreements to allow for a more comprehensive view of the
crisis.
14. Several western states have created their own MMIP offices to
act as liaisons between tribal, state, and federal partners. Western
Governors support federal efforts to develop and strengthen MMIP state-
level offices and other state-level MMIP initiatives.
15. During any lapse in funding, Western Governors recommend that
the federal government work collaboratively with states and tribes to
ensure continuity of essential services with discretionary funding.
C. GOVERNORS' MANAGEMENT DIRECTIVE
1. The Governors direct WGA staff to work with Congressional
committees of jurisdiction, the Executive Branch, and other entities,
where appropriate, to achieve the objectives of this resolution.
2. Furthermore, the Governors direct WGA staff to consult with the
Staff Advisory Council regarding its efforts to realize the objectives
of this resolution and to keep the Governors apprised of its progress
in this regard.
This resolution will expire in June 2026. Western Governors enact
new policy resolutions and amend existing resolutions on a semiannual
basis. Please consult http://www.westgov.org/resolutions for the most
current copy of a resolution and a list of all current WGA policy
resolutions.
policy resolution 2025-05--physical and behavioral health care in
western states
A. BACKGROUND
Ensuring access to high-quality, affordable health care is critical
to enhancing the quality of life in western states for our growing
populations and serves as a foundation for building and maintaining
healthy, vibrant communities and robust economies. However, western
states face unique health care challenges, many of which have been
compounded by the COVID-19 pandemic. The West experiences a high
prevalence of behavioral health conditions compared to other regions,
with rates increasing at an alarming pace in recent years, particularly
among young adults. The fourteen states with the highest suicide rates
in the country are in our footprint. Overdose deaths are down
nationally, but on the rise in many western states. Low population
densities and the vast distances between population centers in the West
pose distinct barriers to care, making it difficult for providers to
establish economically sustainable health care practices. Factors such
as acute provider shortages, especially in rural and underserved areas,
and limited access to broadband and telehealth services have further
hindered the ability to provide comprehensive care to western
residents.
B. GOVERNORS' POLICY STATEMENT
1. Western Governors envision a health care system in which
everyone has equal access to quality health care services. Federal
efforts to address health care workforce and access needs should
reflect early, meaningful, and substantive input from Governors, who
are best positioned to assess the needs of their states and territories
and help develop solutions to meet these needs. State-federal
collaboration and coordination are integral to addressing these health
care challenges. Wherever possible, and where appropriate, the federal
government should respect state and territorial authority and maximize
flexibility granted to states and Governors.
2. Western Governors believe patients should have the same access
to behavioral health care as they have for physical health care,
including prevention and early intervention services and supports for
chronic conditions like mental illness.
3. Western Governors support efforts to improve the quality and
quantity of behavioral health services and supports available to our
residents, as these services and supports are essential to reducing
suicide rates and treating a range of behavioral health conditions,
including mental illness and substance use disorders (SUDs).
4. Western Governors recognize and support efforts at the federal,
state, and local levels to promote the integration of physical and
behavioral health services. The Governors encourage Congress to adopt
legislation and the Administration to implement policies that support
states' integration efforts and encourage health care providers to
better integrate behavioral and physical health into their practice of
care.
5. Despite efforts by Western Governors to address the shortage of
qualified health care workers, significant challenges remain. Governors
urge the federal government to examine and implement programs to ensure
states have an adequate health care workforce--including in primary
care, maternal health, behavioral health, and oral health, as well as
other in-demand specialties--that is prepared to serve diverse
populations in urban, suburban, and rural communities. For example, the
federal government should consider expanding the availability of visas
for foreign health care workers and increasing funding for programs
that incentivize health care workers practicing in high-need areas.
Additionally, the federal government should consider funding new types
of personnel, such as community health workers or promotores, to
further extend the health care team and ensure that patients are
connected to resources. Understanding that there remain significant
disparities in access and treatment for many populations, the Governors
support efforts to increase diversity and representation in the health
care workforce to improve health outcomes for all.
6. Western Governors also support innovation within the behavioral
health workforce to create new classifications and address gaps in the
continuum of care professionals.
7. Rural and frontier communities in the West face unique
challenges in accessing the full range of health care services. Western
Governors urge the federal government to consider payment models that
recognize the critical role of community health centers and other rural
health care providers and their position as the only access point for
health care services in many areas. In addition, Western Governors urge
the Centers for Medicare and Medicaid Services (CMS) to adjust Medicare
reimbursement rates to support the viability of rural Emergency Medical
Services (EMS) and more accurately reflect the ways in which personnel
provide care in these communities, including by offering coverage for
code A0998, Ambulance Response and Treatment, No Transport, and making
community paramedicine eligible for reimbursement under code 99600.
These changes would allow EMS personnel to treat patients on site and
provide critical health care services while they wait to respond to
emergencies.
8. Western Governors recognize the critical role of the Indian
Health Service (IHS) in providing health care services to tribal
nations across the West and urge Congress to continue to appropriate
advance funding for IHS to avoid the undue hardship associated with
lapses in federal funding. Western Governors believe additional support
for IHS is needed to combat the opioid crisis, which disproportionately
affects tribal nations. We request adequate resources for treatment and
behavioral health centers to help stop opioid related deaths, including
support for tribal law enforcement efforts to combat drug related
offenses.
9. The federal government should work with states and territories
to facilitate the deployment of broadband to underserved and rural
areas, recognizing that adequate broadband access has a direct
correlation to rural populations' ability to access telehealth and
telemedicine.
10. Western Governors urge the federal government to make permanent
certain waivers and authorizations granted during the COVID-19 public
health crisis to provide flexibility and increase access to telehealth
and remote monitoring. We propose actions to create an environment
conducive to the expansion of telehealth beyond the pandemic, including
but not limited to permanently changing provisions of 42 CFR and
Section 1834(m) of the Social Security Act (SSA) such as:
a. Waiving interactive telecommunications systems requirements
and permitting audio-only visits for certain services (42 CFR
410.78(a)(3));
b. Increasing flexibility in the types of practitioners that
may bill for their services when furnished as Medicare
telehealth services from the distant site, which expands the
type of practitioner that can provide services through
telehealth and allows all practitioners eligible to bill
Medicare for services to deliver those services via telehealth
(Section 1834(m)(4)(E) of the SSA);
c. Making Federally Qualified Health Centers and Rural Health
Clinics qualified distant site providers of telehealth services
for services beyond behavioral health, when appropriate
(1834(m) of the SSA);
d. Granting clinicians the ability to provide remote patient
monitoring services to new and established patients for both
acute and chronic disease management and for patients with only
one disease condition (1834(m) of the SSA);
e. Eliminating originating site requirements to allow patients
to take visits from their homes for services beyond behavioral
health (42 CFR 409.46(e)); and
f. Expanding geographies to include all counties, not just
those located outside metropolitan statistical areas or in
health professional shortage areas, for services beyond
behavioral health (1834(m) of the SSA).
Any changes to federal telehealth policy should ensure that
patient needs are at the center of those changes. Any changes
should also ensure that patient choice to receive in-person
services is preserved and only clinically appropriate services
are provided via telehealth.
11. Western Governors acknowledge the importance of improving our
nation's public health preparedness and response systems. The federal
government must examine the lessons learned from COVID-19 in
collaboration with states and territories, and ensure that we have the
capability and necessary public health infrastructure investment to
effectively confront future public health challenges. We recommend that
the federal government clarify pandemic response roles and build
operational capacity within the appropriate health-related agencies.
The federal government should also consider how to expand our
international health surveillance and public health threat detection
mechanisms.
12. Western Governors recognize the role that social determinants
of health (SDOH) have on the health outcomes and well-being of our
citizens, and the effect that social determinants--including economic
stability, education, social and community context, and neighborhood
and built environment--have on an individual's health status. Western
Governors support efforts to identify risks facing high utilizers of
health care services, including food insecurity, domestic violence
risk, unmet transportation needs, lack of housing and housing
instability, utility, and other essential supports and services, and to
develop innovative models designed to improve coordination of medical
and non-medical services and use of evidence-based interventions. These
models can provide valuable information on how meeting non-health needs
and addressing other social determinants can improve overall health
status and decrease health spending.
13. Western Governors encourage Congress to adopt legislation that
would empower states and local governments to address persistent
economic and social conditions--like limited access to health care
providers, stable housing, reliable transportation, healthy foods, and
high-quality education--that often hinder health outcomes. Such
legislation would assist states and territories in developing plans to
target social determinants that negatively affect health outcomes for
western populations.
14. Western Governors recognize that the United States has higher
infant and maternal mortality compared to other high-income countries.
While western states and territories are taking steps to reduce these
rates, we urge the federal government to consider additional steps in
collaboration with state efforts to improve maternal health outcomes.
The closure of birthing hospitals in both urban and rural areas,
limited access to prenatal and postnatal health care services,
including home visiting programs and related support structures, and
supportive medical services addressing medical and behavioral issues
should be considered in efforts to reduce infant and maternal mortality
rates.
15. Western states have implemented a wide range of innovative
health care interventions through Medicaid waivers offered under
Section 1115 of the Social Security Act. For example, some states are
enrolling individuals in Medicaid prior to their release from prison to
prevent disruptions in behavioral health treatment, promote successful
reentry, and reduce recidivism. Others are expanding access to
supportive housing with coordinated health and social services to
better support and sustain recovery for individuals with behavioral
health conditions. Western Governors support these and other state-led
approaches to solving systemic health care challenges and urge CMS to
review and approve state 1115 waivers swiftly. Further, Western
Governors urge Congress to provide the resources needed to support
prompt approval of state plans while considering scaling up state
proposals that are found to be effective.
16. The 988 Suicide and Crisis Lifeline, which was implemented in
2022, offers 24/7 call, text, and chat access to crisis counselors by
connecting callers to a network of over 200 state- and local-funded
crisis contact centers. Western Governors recognize that 988 is a
critical aspect of a broader crisis care system that must have the
capacity to prevent, recognize, respond, de-escalate, and follow up
from crises across a continuum, from crisis planning to early stages of
support and respite, crisis stabilization and intervention, and post-
crisis follow-up and support for individuals and their families. As
Western Governors continue strengthening 988 and the crisis care
systems across our states, we request sustained funding from Congress
for these efforts.
17. Western Governors urge the federal government to recognize the
importance of school-based mental health services in allowing youth to
learn problem-solving and coping skills, engage and connect with peers
and others in their community, and be successful in school. CMS has
provided federal guidance on ways in which states can elevate and
encourage the expansion of school health services; however, without
additional funding to support such recommendations, many schools,
particularly those in rural and frontier areas, are challenged to
implement these practices due to a lack of resources to invest in
workforce, behavioral health services, and telehealth infrastructure.
18. Western Governors urge the federal government to develop an
evidence-based, culturally competent national education and awareness
campaign to reduce the stigma associated with mental health and SUDs
and encourage individuals to seek help for these health conditions.
19. Western Governors believe the federal government should work
toward treating addiction as a chronic illness and work with Western
Governors to develop strategies for addressing SUD that work in concert
with state and territorial efforts and recognize regional variations in
SUD patterns.
20. Many barriers still exist for people to receive medications for
opioid use disorder (MOUD) and lifesaving interventions. Western
Governors support legislative action to increase access to MOUD for
patients with SUD. Western Governors also request that the Drug
Enforcement Administration (DEA) allow buprenorphine to be dispensed in
the field by appropriately licensed and DEA-registered practitioners.
21. Western Governors support legislation to address the so-called
Institutions for Mental Diseases (IMD) exclusion to improve access to
SUD treatment and recovery services at residential and inpatient
facilities with more than 16 beds, as well as to the full continuum of
community-based behavioral health care. While changes made in the 2024
Consolidated Appropriations Act (Pub. L. 118-42) are a significant step
forward, states still face barriers to providing appropriate treatment
in residential and inpatient settings. Until a robust legislative
solution is enacted, the federal government should continue working
with states to provide IMD waivers that offer important flexibility and
improve access to treatment for patients with SUD. Implementation of
these waivers must also occur in connection with the expansion and
maintenance of the community-based continuum of behavioral health care
to ensure individuals receive services at the lowest level of
clinically appropriate care.
22. Continued support and investment for the Office of the National
Coordinator for Health Information Technology (ONC) and Centers for
Disease Control and Prevention (CDC) data modernization efforts will
allow western states and territories to update and maintain their data
systems, leading to a better understanding of health concerns affecting
communities. Federal support for these programs should include
sustainable, ongoing funding to states that is flexible to allow for
new initiatives and to support ongoing operations of existing work
supporting data modernization efforts. ONC and CDC should provide
frameworks to ensure consistency of data collected across states and
territories for ease of monitoring and partnership across
jurisdictions.
23. The exchange of health information is fragmented and often does
not occur, limiting the ability of a provider or team of providers to
understand the complete needs of a patient and provide whole-of-person
care. Western Governors believe the federal government should take
steps to support and help sustain states' administration of
Prescription Drug Monitoring Programs (PDMPs) and ensure that
electronic health records and PDMPs are fully interoperable between
states and the federal government, accessible to relevant health care
providers, including opioid treatment providers, and include adequate
protections for patients from stigmatization and discrimination.
24. Congress passed the Radiation Exposure Compensation Act and the
Energy Employees Occupational Illness Compensation Program Act to
compensate individuals who contracted certain cancers and other
diseases following radiation exposures due to nuclear weapons testing
and production activities. Western Governors support maintaining and
funding these programs, expanding them to more accurately include the
affected populations of downwind states and defense production workers,
and extending them to ensure that individuals receive compensation for
the effects of these national security radiation exposures.
C. GOVERNORS' MANAGEMENT DIRECTIVE
1. The Governors direct WGA staff to work with congressional
committees of jurisdiction, the Executive Branch, and other entities,
where appropriate, to achieve the objectives of this resolution.
2. Furthermore, the Governors direct WGA staff to consult with the
Staff Advisory Council regarding its efforts to realize the objectives
of this resolution and to keep the Governors apprised of its progress
in this regard.
This resolution will expire in December 2027. Western Governors
enact new policy resolutions and amend existing resolutions on a
semiannual basis. Please consult http://www.westgov.org/resolutions for
the most current copy of a resolution and a list of all current WGA
policy resolutions.
______
Gila River Indian Community
October 27, 2025
Hon. Lisa Murkowski;
Hon. Brian Schatz,
Hart Senate Office Building,
Washington DC.
Dear Chairman Murkowski and Vice Chairman Schatz,
I am writing on behalf of the Gila River Indian Community
(``Community'') to express concerns regarding the impacts of the
federal shutdown on important programs within the Community.
I want to highlight our Community's immediate concerns with the
impacts of the shutdown and ongoing reductions in force at federal
agencies.
As a governmental entity, tribal governments are reliant on our
federal and state governmental partners to fulfill their side of the
government-to-government relationship. When one side of the
relationship ceases operations, it has a direct, and outsized, impact
on our tribal communities. In the case of a governmental shutdown, it
brings uncertainty to both programmatic funding and also to the ability
of federal employees to carry out functions that tribes rely on
functions that are necessary to meet the needs of our members.
With Congress unable to agree on a path forward on appropriations
bills, we are still operating under fiscal year 2024 funding levels. In
the House and Senate fiscal year 2026 Interior Appropriations bills,
Congress rejected the Administration's proposed cuts to Department of
the Interior and Indian Health Service programs and provided funding
increases where appropriate for important programs used to secure the
health and safety of our communities and our members. With this funding
impasse in place, it becomes less likely that funding bills will be
able to be enacted by the end of this year--leaving our programs
chronically underfunded.
In addition to tribal programs, our members are also significantly
impact by other federal programs such as SNAP. In the State ofArizona
alone, approximately 900,000 citizens utilize SNAP benefits. Included
in this number are members of the Community--both on and off the
Reservation--who rely on the SNAP program to meet daily nutritional
needs. Our members who rely on the SNAP program are most often our
elders, those with disabilities, or those whose employment salaries are
insufficient to provide the daily nutritional needs for their families.
A disruption in this federally-funded, and state-run program will
create food insecurity for our most vulnerable members who rely on this
program. To date, the federal government has indicated that a SNAP
contingency fund will not be utilized to supplement funding shortages--
and the majority of states have not planned for this lapse in funding.
If the shutdown persists for several more weeks. other programs
that serve our most vulnerable members could also be cut--including the
Special Supplement Nutrition Program for Women, Infants, and Children.
As Congress continues its discussions and negotiations around
reopening the federal government, I ask that you keep in mind the
tribal programs being impacted, and those federal programs that may not
be funded--simply because negotiations are not occurring between the
parties.
Our tribal leadership within the Community understands that elected
leaders need to make difficult funding decisions. However, these
decisions should not come at the expense of programs that support our
tribal members, our most vulnerable members, and at the expense of the
government-to-government relationship that is reliant on both of us--
federal and tribal governments--to uphold our end of the relationship.
Thank you for your attention to the impacts of the shutdown on
Indian Country, our tribal members, our members who are federal
employees, and our communities.
Sincerely,
Hon. Stephen Roe Lewis, Governor
______
Yukon-Kuskokwim Delta Regional Tribal Government
October 29, 2025
Hon. Lisa Murkowski;
Hon. Brian Schatz,
Hart Senate Office Building,
Washington DC.
Dear Chairman Murkowski and Vice Chairman Schatz,
On behalf of the Yukon-Kuskokwim Delta Regional Tribal Government
(Y-K RTG), representing various federally recognized Tribes across
southwest Alaska, I write this letter in response to the October 29,
2025, Oversight Hearing titled, ``Impacts of Government Shutdowns and
Agency Reductions in Force on Native Communities''. Our Villages are
urging an end to this federal government shutdown.
Typhoon Halong
The timing of this shutdown could not be more catastrophic. On
October 8, 2025, Typhoon Halong brought hurricane-force winds and
record flooding to our region. The storm claimed the lives of three
elders. More than 1,500 residents have been displaced to Bethel or
Anchorage. Over a dozen villages report substantial damage and nearly
50 have reported impacts. Kipnuk and Kwigillingok have evacuated almost
their entire communities. The Delta's extreme remoteness, air and water
access only, and high cost of living magnifies our struggles. Winter is
closing in while our water, sewer, and power systems are in poor
conditions.
The Shutdown Hits Us Harder
Smaller, rural Tribal governments like ours rely heavily on federal
dollars and agency action to operate. We do not have casinos, oil and
gas revenues, or a local tax base to float months of operations. This
dependency was not chosen; it is the result of federal policies that
disrupted our traditional ways of life, dismantled our traditional
economies, and imposed governance structures without providing
sustainable tools for Tribal government economic self-sufficiency and
self-governance.
When the federal government shuts down funds and reimbursements
stall, agencies go dark, and reaching important staff and decision-
makers by phone or email becomes nearly impossible. We are forced to
front-load scarce dollars or strip other Tribal programs just to keep
essentials running, all at significant financial risk with long-term
impact to our planning and staffing. Government shutdowns are
inefficient and impose significant costs.
Federal Responsibilities
The shutdown is not a mere inconvenience, it interrupts the United
States' trust and statutory responsibilities to Alaska Native federally
recognized Tribes. Our programs are not political bargaining chips;
they are commitments arising from decades of federal direction and
control that changed where and how our Tribes live and govern. Those
responsibilities should not pause for continuing resolutions or debt-
limit debates.
Many of our Villages were sited in low-lying, erosion-prone areas
in part because of federal schooling and settlement policies. Kipnuk,
for example, was settled in the 1920s so children could attend the
mandatory federal Indian school. Families were told that their children
would otherwise be taken away to distant boarding schools if they did
not settle in what is now Kipnuk. Today, Kipnuk and neighboring
Kwigillingok are no longer safe to inhabit. The locations federal
policy pressured our people to occupy are now among the most climate-
exposed places in Alaska.
Federal Recognition
The Y-K RTG is following the model of Alaska's two other regional
tribal governments (i.e. Inupiat Community of the Arctic Slope and
Central Council Tlingit and Haida Indian Tribes of Alaska) pooling
resources and capacity across our 56 Tribes to coordinate emergency
response. We hope to provide essential services that are not currently
being provided, and to improve long-term resilience. We are doing our
part to stand up regional solutions despite structural disadvantages we
did not create.
Many of our Tribes face significant administrative capacity
challenges due to their remote locations, limited infrastructure, and
resource constraints. Yet each Tribe carries important responsibilities
for its citizens and communities. To improve efficiency and advance
Tribal self-governance, we are seeking recognition and support for
regional governance structures, where Tribes choose to organize
collectively. Regional approaches can help reduce administrative
duplication and create stronger coordination around key issues such as
public safety, infrastructure development, and emergency response.
Federal support for regionally led, tribally driven governance
models, where multiple federally recognized Tribes voluntarily
collaborate, can alleviate burdens on both Tribal and federal systems.
These models should be grounded in self-determination, guided by
democratic processes among participating Tribes, and designed to
supplement, not replace, individual Tribal sovereignty. We urge you to
consider legislation to recognize regional governance. Vast geographic
scale and logistical challenges demand innovative solutions.
Immediate Requests to Congress:
1. End the shutdown immediately. Our people (mourning loved
ones, displaced from homes, and facing ongoing disaster
conditions) cannot bear additional harm from suspended federal
functions.
2. Designate tribal programs as ``essential'' during any
future shutdowns. The trust responsibility and core tribal
programs must continue without interruption, just as other
critical federal obligations do. Federal commitments to Alaska
Native and American Indian Tribes must not be contingent on
continuing resolutions or debt-limit negotiations.
We ask for immediate action as noted above, and a long-terms fixes
such as federal recognition. The tribes we represent have a political,
government-to-government relationship with the United States, and on
their behalf, we ask for support to stabilize and improve the Y-K
Delta. Our Tribes will continue to struggle until our self-
determination is truly recognized.
Sincerely,
James Akerelrea, President
______
National Association of Federally Impacted Schools (NAFIS);
National Indian Impacted Schools Association (NIISA)
October 27, 2025
Hon. Lisa Murkowski;
Hon. Brian Schatz,
Hart Senate Office Building,
Washington DC.
Hon. Bruce Westerman;
Hon. Jared Huffman,
U.S. House of Representatives Washington, DC.
Dear Chair Murkowski, Chair Westerman, Ranking Member Schatz, and
Ranking Member Huffman:
On behalf of the National Association of Federally Impacted Schools
(NAFIS) and the National Indian Impacted Schools Association (NIISA),
we write to express our deep concern about the recent reduction-in-
force (RIF) of nearly all staff within the U.S. Department of
Education's Impact Aid Program Office. We recognize that the Senate
Committee on Indian Affairs and the House Committee on Natural
Resources do not have direct jurisdiction over the Department of
Education or the Impact Aid Program. However, given your leadership on
issues affecting Native communities, we respectfully request that you
express to the Department and the Office of Management and Budget your
concern about how these staffing losses threaten the timely and
effective delivery of Impact Aid funds to school districts serving
Native students.
Over 90 percent of Native American students attend local public
schools, many of which rely on Impact Aid to provide essential
educational services. Impact Aid compensates districts for the loss of
local tax revenue due to the presence of federal and tribal lands and
for the additional costs associated with educating federally connected
children, including those residing on or near Indian lands.
Impact Aid is a federal obligation, born of treaties, trust
responsibility, and the unique status of tribal lands as non-taxable.
In the United States Code, Impact Aid's statutory purpose acknowledges
a need to provide financial assistance to local school districts to, in
part, ``fulfill the responsibilities of the Federal Government with
respect to Indian tribes'' (20 U.S.C. 7701). The program is a critical
lifeline for Native communities, ensuring that schools serving their
students have the resources to provide equitable, high-quality
education that honors and supports their cultural and community
connections.
The combined effects of the government shutdown and the RIF have
left the Impact Aid Program's ability to process applications, issue
payments, and communicate with districts in jeopardy. Many school
districts serving Native students depend on timely Impact Aid payments
to meet payroll, maintain operations, and support programs that reflect
and sustain Native languages, traditions, and values. They were
anticipating initial payments in October that they have not received
and urgently need. Once the government reopens, it is critical that
they get payments as soon as possible--but without the Impact Aid staff
in place, it is unclear how the program will function. Any further
delay in payments or breakdown in communication threatens to harm
students, families, and communities that already face unique
educational and economic challenges.
Your voices carry significant weight in ensuring that federal
agencies understand the implications of these actions on Native
students and communities. We urge you to communicate to the Department
of Education and OMB the importance of restoring staffing capacity in
the Impact Aid Office and ensuring the continued functioning of this
critical program, particularly during this period of federal
disruption.
We appreciate your commitment to improving educational
opportunities for Native students and families, and we thank you for
your attention to this urgent matter.
Sincerely,
Cherise Imai, Executive Director, (NAFIS)
Brent Gish, Executive Director, (NIISA)
______
Navajo Nation Washington Office
October 27, 2025
Hon. Ben Ray Luja,
Russell Senate Office Building,
Washington, DC.
Oversight Hearing ``Impacts of Government Shutdowns and
Agency Reductions in Force on Native Communities''
Dear Senator Lujan,
On behalf of the Navajo Nation (``Nation''), thank you for the
opportunity submit information for the Senate Committee on Indian
Affairs' upcoming hearing regarding the impacts of the government
shutdown and reductions in force on tribes.
The Navajo Nation is the largest land-based American Indian tribe
in the United States, encompassing over 27,000 square miles--an area
larger than the state of West Virginia--with portions of three states--
Arizona, New Mexico, and Utah--spanning into our boundaries. We have
nearly 420,000 citizens and approximately half of our citizens reside
on our reservation making the Nation's on-reservation Indian
populations nearly one-third of the total on-reservation Indian
population in the United States. The federal government has a long-
standing obligation to provide education to the Navajo people and to
promote our general welfare under the Treaty of 1868.
The Nation has experienced a myriad of woes resulting from the
federal government shutdown. As a cruel irony, because of the
confusion, insecurity, and strain created by the shutdown, it has been
difficult to measure its full impact. Below are examples of issues and
concerns we are currently aware of and we will provide a more detailed
accounting for the record after the hearing.
The largest looming concern is the expected loss of the
Supplemental Nutrition Assistance Program (SNAP) benefits on November
1, 2025. SNAP is delivered to our members through our state partners.
It was reported by the Center for Indigenous Resilience at the
University of Arizona in 2021 that approximately one-third of Navajo
households relied on SNAP benefits. Because of the shutdown and lack of
funding for SNAP, all three of our state partners have issued
statements that they will not be providing SNAP benefits beginning
November 1, 2025.
Another area where the shutdown is having an impact is in
education. Across our Bureau of Indian Education (BIE) schools, our
public schools, and our Tribally Controlled Universities (TCU), delays
in funding are hurting our students.
For many of our schools the furloughs at the agency are preventing
funds from being released that are needed for the day-to-day
operations. There is a growing concern, too, that as the shutdown drags
on that notice of funding opportunities will not be released and grant
applications will not be processed leading to substantial cuts at our
programs. One of our Head Start schools has already reported that it
will run out of funds on October 31, 2025, and have to close its doors
because of the lack of staff at the Office of Head Start to process
funding.
We learned from one of our TCUs, Dine College, that Pell Grant
disbursements that were delayed prior to the shutdown have still not
been processed. Over 500 of their college students rely on those funds
for basic education and housing expenses. As a result, Dine College is
acting as promisor to its cafeteria vendor to make sure that those
students living on campus are still able to eat and is providing
vouchers for the students for books and other education expenses. While
the school is able to make exceptions for the students to continue in
their studies should the shutdown continue, there is a reasonable
concern that the funding may never come and that these students and the
institution may end up saddled in crippling debt through no fault of
their own.
Despite forward funding, we have received reports that some of our
schools have yet to receive their Indian School Equalization Program
funds and their Impact Aid funds. Our schools rely heavily on these
sources of funding for basic educational programs and operations. In
Arizona alone, the Nation has eight public school districts who provide
services to approximately 16,500 students with an average of 80 percent
of their funding (or an estimated $98 million total) coming from Impact
Aid. The schools in these districts often serve as the lifeline of
their communities, providing not only education but also meals,
cultural programs, and access to services that extend beyond the
classroom. Further, the proposed reductions in force at the Office of
Indian Education and Impact Aid Office has our educators concerned that
the funding will never come, and that the long-rumored recissions in
Indian education may be coming next. Without Impact Aid, many of our
districts would struggle to maintain basic operations, hire and retain
qualified teachers, or meet the growing needs of their students.
Education is not the only area where we have been impacted by
delays. Just prior to the shutdown, the Nation reached an agreement to
take over the Padres Mesa Demonstration Ranch under the Office of
Navajo Hopi Indian Relocation (ONHIR). Our goal, however, was to work
with the Department of the Interior (DOI) to coordinate taking on more
of ONHIR's operations or to ensure that those services were
appropriately carried out by DOI. Unfortunately, the DOI solicitor that
was working with us was furloughed thereby halting all conversations.
As a result, there are still nearly 20 Navajo relocatees with
applications pending final determination or appeals over the rights
promised to them in the 1974 Navajo Hopi Indian Land Settlement Act,
which created the largest federally-mandated removal of U.S. citizens
since the internment of Japanese-Americans during World War II. All in
all, approximately 16,000 Navajos and 100 Hopis were relocated.
Across the Nation furloughs at the Bureau of Indian Affairs (BIA)
are causing delays, as well. All business site lease transactions that
require federal authorization or participation through the BIA have
been suspended. This includes approvals for new leases, renewals,
terminations, and compliance enforcement actions. The Regional Business
Development Offices report multiple lease cases pending BIA review,
including expirations, sublease renewals, and enforcement matters.
Without federal participation, these transactions cannot move forward,
halting both small and large-scale development projects. The backlog
that will result from this shutdown is expected to create lasting
delays in economic activity, investor confidence, and revenue
generation.
Multiple land withdrawal proposals remain pending due to the
unavailability of BIA review and action. These proposals are critical
for advancing economic development zones, retail expansions, and
infrastructure projects, including ongoing initiatives in the Chinle
region. The inability to move these forward slows long-term economic
planning and limits opportunities for new commercial growth and land
use development.
Federal procurement and contracting activities have been suspended,
affecting Navajo vendors and service providers that rely on federal
contracts for operations and revenue. This disruption directly impacts
cash flow and employment stability among businesses engaged in federal
projects within Navajo communities. A protracted suspension could erode
confidence among contractors and reduce opportunities for Navajo-owned
enterprises to participate in federal procurement.
For our Indian Health Service (IHS) facilities, the shutdown
presents a different problem. We are grateful that Congress provided
advance appropriations to the IHS for FY26--and we are hopeful that
this shutdown will alert all members of Congress to the need for
advance appropriations across Indian Country and to support your
legislation doing that. However, for IHS advance appropriations do not
resolve everything. At the end of this year, it is possible that the
Affordable Care Act's enhanced premium tax credits will expire. If that
happens, health care premiums will likely increase and many Americans
will forgo enrollment. Should that happen the IHS--which is considered
as a payer of last resort and relies heavily on reimbursements--will
receive an influx of uninsured patients that neither it nor Congress
planned for. Currently, information provided to use by the National
Indian Health Board estimated that 126,000 American Indian or Alaskan
Natives would lose their health care if the tax credits expire. The
result of this is that an already strained and underfunded health care
system will be strained even further causing a reduction in services
and staff across IHS facilities, and possibly even the closure of
entire IHS facilities. However Congress resolves its differences with
these tax credits, it is imperative that Indian Country have a seat at
the discussions so we are not ignored in the solution.
The matters raised here only represent a portion of the concerns
and consequences created by the federal government shutdown. While we
will supplement the information in this letter with comments for the
hearing record, it is likely that a full accounting of the impacts of
this shutdown will be something the Nation will be reckoning with for
years to come.
Respectfully,
Vincent P. Redhouse, Executive Director
______
October 27, 2025
Dear Senator Lujan,
I hope this message finds you well. I am writing on behalf of the
Pueblo of Picuris, one of the smallest and most rural of the New Mexico
Pueblos, to share how government shutdowns and ongoing federal
instability are devastating our people, our programs, and our progress.
As a direct-service tribe, we rely heavily on the Bureau of Indian
Affairs, Indian Health Service, and other federal partners to deliver
essential services. When these agencies close or reduce staff during
shutdowns, our operations are immediately disrupted. Programs stop
midstream, critical reimbursements are delayed, and communication
channels with our federal partners go silent. Our small administrative
team is left struggling to maintain health, safety, and infrastructure
needs with no outside support.
When funding interruptions hit IHS or Medicaid reimbursements, our
Health Station and pharmacy are forced to stretch limited resources
just to keep the doors open. Referrals, dental care, and preventative
services are delayed, leaving our members without consistent access to
medical care.
At the same time, critical BIA infrastructure and public works
projects, such as maintenance of BIA Road 201 and forestry or wildfire
mitigation work, come to a halt when federal personnel are furloughed.
These aren't abstract delays they are safety and access issues for our
families, emergency responders, and school buses.
Picuris is at a crucial point in our economic development. We are
building new enterprises our health station, travel center, renewable
energy projects, and others to achieve economic independence and self-
sufficiency. But even our private vendors and lenders lose confidence
when federal operations pause, creating barriers to credit,
contracting, and payroll stability. The combination of shutdowns and
new executive orders that increase federal processing timelines and
review requirements compounds these challenges. What once took weeks
now takes months, and every added layer of delay has a magnified impact
on small, rural tribes like ours.
Worse still, with no cash reserves to sustain operations during
prolonged shutdowns, we cannot continue essential services without
federal support. Unlike larger or self-governance tribes, we have no
financial cushion to float payroll or advance program costs. When
reimbursements stop, we are forced to suspend programs, lay off staff,
or shut down entirely--without any guarantee of reimbursement once the
government reopens. We are simply left to absorb the losses.
In addition, recent executive actions and shifting federal
priorities have already cost us key funding streams. Living under this
constant unpredictability is like living with a rattlesnake--you don't
know when it will strike, but you know it will. The uncertainty
surrounding federal ``2025 plans'' and proposed reductions intensifies
this anxiety. For small, direct-service tribes with little economic
cushion, every unexpected policy change or funding delay inflicts real
harm.
Beyond the immediate service impacts, our tribal housing projects
under NAHASDA, community safety and victim support initiatives, and
education programs are also at risk. When grant drawdowns are frozen or
agency staff are furloughed, even programs that technically remain
funded become inaccessible in practice. Each day of delay makes it
harder for us to sustain operations, meet payroll, and serve our
families.
Every shutdown, every rescinded award, and every missed payment
erodes what little progress we've built. It weakens community trust,
drains staff morale, and damages long-term partnerships. The erosion of
the federal trust responsibility--a legally recognized obligation under
25 U.S.C. 5301 et seq.--is not just disappointing; it is
unacceptable. When the federal government fails to uphold consistent,
reliable funding for essential tribal services, it is failing its own
law and breaching that trust.
Even though it has sadly become too common for tribes like ours to
be disregarded or treated as afterthoughts, I am asking you--please--to
support the creation of an advance appropriation mechanism for tribal
programs, similar to what exists for the Indian Health Service. We also
urge Congress to extend that same protection to all essential tribal
services--public safety, education, infrastructure, and natural
resource programs--so that they remain operational regardless of a
federal shutdown.
The continued disregard for tribal obligations is slowly killing
our ability to sustain our communities. We have the will, the people,
and the plans--but we need the government we partner with to keep its
promises.
We deeply appreciate your ongoing advocacy and understanding of
what tribes like Picuris face daily. We stand ready to provide further
information or testimony for the record at your convenience.
Respectfully,
Lt. Gov. Craig Quanchello
______
October 29, 2025
Dear Senator Lujan,
I am writing to express deep concern over the potential lapse of
the Supplemental Nutrition Assistance Program (SNAP) beginning November
1. For the Pueblo of Picuris and the surrounding Penasco Valley
communities, this would have devastating consequences. We live in one
of the poorest regions of Taos County, where a large portion of
families Native and non-Native alike rely on SNAP to meet their most
basic nutritional needs.
Here, many of our elders, single parents, and working families
already live on the edge. If SNAP benefits stop, our community will
face immediate food insecurity. There are no large grocery chains
nearby, and the small local stores already struggle to stay stocked and
affordable. When benefits pause, they lose revenue, which in turn means
fewer deliveries, less inventory, and higher prices for everyone. This
becomes a spiral that hurts every household in the valley--not just
those receiving assistance.
Food should be recognized as an essential service in this country.
We can send billions overseas to support other nations, yet we fail to
protect the most basic human need of our own people. Rural families,
especially those like ours who quietly do their best to survive, are
too often forgotten. They are the ones who work hard, follow the rules,
and rarely ask for help, yet they end up paying the highest price when
government systems fail.
It's true that some people may misuse or abuse food assistance
programs, but the majority of recipients in communities like ours are
honest, hardworking families who simply cannot make ends meet in an
economy where the cost of living rises faster than wages. They don't
complain they simply adapt, make sacrifices, and keep moving forward.
But there's only so much a family or a community can endure before it
breaks.
Beyond continuing SNAP, we urge Congress and the Administration to
take immediate, lawful actions during this shutdown to protect tribal
and rural communities: Authorize the use of existing carryover and
unobligated funds within BIA, IHS, and USDA to sustain food,
healthcare, and safety programs. Establish a Tribal Continuity Fund to
provide short term, interest free bridge support to tribes that must
continue payroll and essential services. Expand advance appropriations
beyond IHS to include BIA, HUD, and USDA tribal programs. Direct OMB
and agency leadership to classify food, healthcare, housing, and
emergency response as essential services under the Antideficiency Act,
allowing them to continue during funding lapses. Require a Tribal
Continuity Task Force of BIA, IHS, HUD, and Treasury to coordinate
emergency responses for tribes within 48 hours of a shutdown. These
actions can be taken without new legislation or additional spending
only the will to honor the commitments already made.
Senator, I want to thank you and your team sincerely for reaching
out to our tribal leaders and asking for real stories from the ground.
We know every office, every agency, and every person has their own
challenges and priorities but these steps can save lives. In a time
when unity and compassion are needed most, we ask that you continue to
be our voice in Washington and help make these solutions a reality.
This is not a new request or a new law it is part of the federal
trust responsibility, promised long ago and reaffirmed in 25 U.S.C.
5301. We should not have to stand here asking for the most basic
necessities of life: food, safety, and dignity. For us, survival is not
an event that happens during a shutdown it's what we do every single
day.
We thank you and everyone involved for hearing us, for caring, and
for taking these stories forward. Our hope is that by standing together
as tribes, as rural communities, as New Mexicans we can remind the
nation that strength begins with compassion and that unity is not a
luxury it's a necessity for survival.
Respectfully,
Craig Quanchello
______
Santa Ana Agricultural Enterprise--MEMORANDUM
October 27, 2025
Myron Armijo, Governor
Kevin C. Montoya, Lieutenant Governor
Subject: Impact of Government Shutdown on Santa Ana
Agricultural Enterprise
Overview
This summary provides an update on the potential impacts of the
federal government shutdown on the Santa Ana Agricultural Enterprise
(SAAE), including its four operating sectors: the Vineyard, Nursery,
Grain Mill, and Farm Operations.
Current Status
At this time, the government shutdown has no direct operational or
financial impact on the Santa Ana Agricultural Enterprise as a whole.
All sectors, with the exception of the Nursery, continue to operate
under normal conditions and budgets.
Nursery Program Impact
The Nursery has identified minor delays and uncertainties related
to federally funded partnership programs. These include collaborations
with:
The Institute of Applied Ecology
Partners for Fish and Wildlife
The Lincoln National Forest Service
Current grant-funded activities remain unaffected; however, new
proposals for contractual work under the FY 2026 programs are
temporarily on hold. These proposals include three key initiatives:
1. Seedling propagation contracts ($6,000 revenue source)
2. On-site projects involving raised bed installations for soil
and sample testing ($3,500 revenue)
3. Shrub and pollinator habitat development projects ($7,200
revenue source)
4. Total, ($16,700 contractual revenue)
Summary
In summary, the federal government shutdown currently poses no
financial or operational threat to the SAAE's ongoing functions. Only
the Nursery sectors federally supported future proposals may experience
administrative or timeline delays until federal operations resume.
Conclusion
This concludes the white page report for the Santa Ana Agricultural
Enterprise as of October 27, 2025.
Ryan Garcia, Director of Agricultural
______
Santa Ana Tribal Police Department
October 27, 2025
Governor Myron Armijo; Lt. Governor Kevin C. Montoya,
Pueblo of Santa Ana Leadership,
Santa Ana Pueblo, NM
RE: SAPD Operations Status During Federal Shutdown
Governor Armijo and Lt. Governor Montoya,
Santa Ana Tribal Police remains fully operational. We are not
directly affected by the current federal shutdown because our BIA P.L.
93-638 contract funds for this year were drawn down in advance. The
five officer positions supported by that contract are covered, and--by
design--those same five positions are also built into our Tribal Police
Department budget. This resilience step, informed by prior shutdown
experience, ensures no gap in staffing or public-safety services for
our community.
The only outstanding item is our DOJ CTAS grant application. We
have not yet received an award decision, and routine federal grant
actions are often delayed during a shutdown. In short: services
continue, staffing is stable, and we will notify you the moment we
receive CTAS news.
Respectfully,
Bennett Leon, Chief of Police
______
white paper on federal shutdown effects on pueblo of santa ana-
department of natural resources (dnr), dated october 28, 2025, by doug
mckenna, dnr director
The Pueblo of Santa Ana, Department of Natural Resources is
responsible for the protection, preservation, and conservation of
natural resources for current and future generations of tribal
community members. There are six (6) divisions under DNR including
Water Resources, Conservation Enforcement, Range and Wildlife,
Environmental, GIS and Restoration. The department consists of forty-
two (42) employees with many tribal members working in each of the
divisions. These programs are supported by tribal leadership and tribal
council for the benefit of the tribal community,
Many projects and programs are supported by federal grants
administrated by several federal agencies. These programs enhance
traditional values through the protection of the tribe's natural and
cultural resources.
Synopsis
There are no project/program managers overseeing federal
grants available for updates, questions and direction with US
Department of Interior (USDOI) agencies including the BIA and
USFWS and Environmental Protection Agency (EPA). Misinformation
and not knowing any answers causing confusion with tribal
managers from their federal partners.
Meetings cancelled by federal partners with re-occurring
scheduling with the US Army Corp of Engineers (USACE), EPA, BIA
and USFWS, these activities were for coordination of many
projects and discuss areas of concern.
Grants that are classified as reimbursables have been
suspended by the DNR Director until monies are obtained,
through drawdowns, from federal government agencies before
initiating any contracts. This jeopardizes tribal commitments
on ongoing projects.
Legal obligations with contractors and other entries with
signed 638 Contracts that are paused by the current
administration which may force litigation in federal courts.
Attending workshops were federal project managers and
employees participate on their own as volunteers and not
representing their agencies, they attend because of their
dedication to the tribal communities on a personal level.
Tribal managers don't know what to expect in the future with
current administration and congressional delegation in
reference to natural resources, conservation, fish and
wildlife, environmental and water resources for tribal
communities.
Reported by Divisions under DNR, see the following comments
Water Resources Division
Currently for the Water Resources Division the government shutdown
hasn't influenced the water grants. The concern will be if the shutdown
continues then we will see the impact of not having access to EPA and
BIA's resources. One of the biggest effects is that we will not be able
to make drawdowns from the committed money that we were awarded from
these federal agencies. Another effect of the shutdown is the absence
of communication with the federal agencies. Communication is key,
without the federal agencies present the Pueblo will not be able to
progress and move forward in decisionmaking of water issues and
matters.
Conservation Enforcement Division
The Pueblo of Santa Ana Conservation Enforcement Division
(Division) is responsible for enforcing the Pueblo's natural resource
laws, and regulations to include fish and wildlife, cultural resources,
environmental protection and to pursue violations on Pueblo lands. It
is comprised of ten Conservation Officers who patrol remote areas,
repair infrastructure, manage hunting and fishing activities on the
Pueblo and conduct public outreach activities. The Division is
primarily funded through Tribal Resources and has an annual operating
budget of approximately $1.2 million.
For FY 2026 the Division applied for the Coordinated Tribal
Assistance Solicitation (CTAS) Grant in coordination with the Santa Ana
Police Department. In its application, the division requested
approximately $330K to be used for the acquisition of law enforcement
equipment including training, vehicles and ruggedized laptop computers
compatible with the County's new Dispatch Center. The grant recipients
were originally scheduled to be notified on October 1, 2025, but the
announcement has been postponed due to the Government shutdown and
subsequent lack of appropriated funding. Although this grant was never
awarded, the division was hopeful that these funds would be allocated
to help defray the cost of replacing aging equipment and improve
dispatch capabilities for the division.
Indirectly, the division may be negatively impacted if the Santa
Ana Tribal Council funds other programs within the Department of
Natural Resources in lieu of federal resources. In such a case, it is
anticipated that all divisions may be negatively impacted due to
scarcity of funds and fiscal tightening measures.
Range and Wildlife Division
The Endangered Species Program under BIA Parks, Wildlfie, and
Recreation has stalled because of shutdown as well as PL-638 contract
modifications to existing contracting.
Also, Conservation Stewardship Program and Environmental Quality
Incentives Program under USDA-NRCS have been affected by shutdown as
there is no one available to accept/review contract proposals.
Environmental Division
BIA Tribal Electrification Program (TEP):
BIA has not been able to respond to inquiries and furloughed. Since
the Trump Administration took office, and the shutdown, this has led to
an unsettling thought of renewable energy projects being threatened.
Our AOR is an essential employee for DOT and confused if she can
work on our contract. We are waiting for guidance from the BIA Regional
Director Brian Bald Eagle.
Also, once we sign a contract for the Engineering Procurement and
Construction (EPC), we are not sure if BIA will approve drawdown
requests ASAP due to staff not being present to approve. This is also
unsettling on how to move forward once we get to the EPC contract
(about a month out).
EPA:
Some EPA project officers have been furloughed, but our workplan
deliverables are progressing. Our EPA Regional Tribal Operations
Committee (RTOC) tribal caucus and meeting have been cancelled; this is
an important meeting between tribes and EPA in the Region.
USACE NALEMP:
Points of contact with the USACE have been furloughed; however, we
are able to work with USACE consultants.
GIS Division
Impacts of the current shut down create a lingering effect of the
most recent budget cuts experienced by several federal government
agencies.
In particular, the GIS Division has the need for infrequent contact
with BIA mainly to access land records and the need for GPS needs. A
continuing government shutdown impairs our ability to access records
and respond to the needs of tribal members.
Direct impacts due to the government shutdown include a shuttered
BIA BOGS (Branch of Geospatial Support). BOGS grants federally
recognized tribes' access to several GIS programs through the DOI BPA.
In addition, they regularly hold training on GIS topics to deepen the
capacity of tribal governments.
Right now, there has not been an issue with licensing and use of
our main GIS program (ESRI ArcPro). However, if there is a prolonged
shutdown, issues may arise since the GIS Division is required to submit
an annual renewal of the Enterprise License Agreement (ELA) to BOGS
which is typically completed near the end of the year. The ELA becomes
the basis of our ability to access free or reduce cost licenses.
Restoration Division
1. We don't have contacts on the fed side. Meetings canceled.
2. Funding freeze. All our money to operate comes from fed dollars.
So, no real directive on applying or receiving funding.
3. Our fish survey this week will be conducted without a fish
biologist. So, lack of expertise that we used in the past.
4. No interest in natural resources by current administration.
______
executive summary: santa ana department of education (sade)
The federal government entered a lapse of appropriations beginning
October 1, 2025, after Congress failed to pass full-year funding for FY
2026. As a result, many federal agencies, including the U.S. Department
of Education (ED), are operating under contingency plans, with new
grant awards suspended and many discretionary functions halted or
delayed.
For the Santa Ana Department of education (SADE), the key
considerations are:
Although Santa Ana has state-driven grants and allocations
from the New Mexico Public Education Department (NMPED) are not
federal, the Johnson O'Malley (JOM) and Administration for
Children & Families (ACF) offer grant program federal grants to
tribes and tribal organizations, so it is potentially
vulnerable to the shutdown.
The immediate risk appears moderate the JOM and ACF award
has already been obligated to The Pueblo of Santa Ana, and some
funds are disbursed; however, if new funds, reimbursements, or
administrative approvals are pending (or if the program year
overlaps into FY 2026), SADE will monitor for disruptions.
The Pueblo's NMPED state grants remain intact (state-funded
and outside the federal appropriation lapse), the state side of
our operations remains stable.
Proactive contingency planning is advisable, ensuring
continuity of critical educational services to SADE students.
Background
The Johnson O'Malley (JOM) Program
The JOM program provides federal funds to assist with the
educational needs of eligible Indian students attending public
schools, and to support tribal education entities.
Because it is federally administered (via ED or sometimes
the Bureau of Indian Education depending on implementation) it
is subject to federal appropriation processes.
Santa Ana Department of Education Funding Mix
SADE receives funding from state allocations via the NMPED
(for example state grants, allocations, and assistance) which
are not dependent on the federal government shutdown.
The JOM program funds are federal, so they are the portion
of your educational funding mix that carries shutdown risk.
It is important to isolate which part of our budget is
Tribal and state-funded vs federal-funded and track the JOM
component carefully.
Potential Impacts to Santa Ana Department of Education
1. Impact on Tamaya Learning Center (Child Care and Development Fund) &
SADE (JOM Funded Programs)
The Tamaya Learning Center receives CCDF funding through the ACF to
support early childhood services for Santa Ana Pueblo families. During
the current federal funding lapse:
New awards and reimbursements under CCDF may be delayed or
suspended, depending on ACF's contingency operations.
Due to the furlough of Child Care and Development Fund
staff, communication with the Pueblo of Santa Ana has been
minimal.
Reimbursement-based expenditures (such as staffing
(overtime),tutoring services, supplies, and training costs) may
face processing backlogs, potentially straining program
continuity.
Administrative approvals or modifications (e.g., budget
revisions, carry-over requests, and reporting deadlines) may
not be processed until appropriations resume.
If the shutdown persists, the continuity of childcare
services-particularly federally supported slots or staff funded
under CCDF-could be impacted.
1. Delayed Payments or Reimbursement Requests
--If the JOM program has a reimbursement-based model (tribe
submits costs and is reimbursed), delays at ED could slow the
processing of those reimbursements.
--If a new JOM award or extension is pending for FY 2026 (or
the next program year) and ED cannot execute award documents
due to the shutdown, new funding may be delayed or frozen.
--While the immediate award may have been made, any carry-
forward or supplemental could be at risk.
2. Administrative/Regulatory Support Delays
--Even if funds continue to flow, slower responses may hamper
program management.
3. Service Interruptions for Students (Indirectly)
--Although your NMPED-funded programs remain stable, any
disruption in JOM funding might force temporary scaling back of
JOM-funded services (e.g., supplemental tutoring, higher
education scholarships, and enrichment activities) that rely
exclusively on those funds.
--If the shutdown is prolonged, and if the tribe depends on
JOM funds for staffing or programs, continuity of those
services could be compromised.
4. Program Planning & New Award Risks
--If the program year transitions into FY 2026 and ED is
unable to allocate funds, there may be a gap.
Specific Considerations for SADE
Interactions with NMPED (state funding) are not impacted by
the shutdown--SADE's core state-funded operations are stable.
SADE's risk comes from the federal JOM and ACF funding
stream.
--The grant is partially awarded and obligated for the
current program year.
--What is the scheduled timing of payments and
reimbursements?
SADE will coordinate with SA finance/grants offices to
ensure tribal funds in our budget can cover any short-term
delay in JOM and ACF payments, to avoid disruption of JOM-
funded services to tribal students.
As soon as possible, SADE will communicate with our JOM and
ACF program officer at ED (or the appropriate federal contact)
to confirm status of award and any expected delays due to the
shutdown.
Recommendations & Action Steps
Short-Term (Immediate: next 1-3 months)
Inventory JOM funding: Create a summary of your current JOM
award(s), including amount, period of performance, obligated
amount, reimbursement status, pending proposals or
modifications, and cash flow timing.
Monitor federal contact status: SADE will contact our
federal JOM program officer and reach out (in writing) to
request status confirmation of the current award and whether
the shutdown is affecting processing of payments or
modifications.
Program-priority ranking: SADE will rank our JOM-funded
activities in order of priority so that if funds are
momentarily interrupted, we will know which services to
sustain, and which might temporarily slow.
Medium-Term (3-12 months)
Scenario planning: SADE will develop scenarios for varying
durations of the shutdown. For each scenario, SADE will
identify which components of JOM and ACF-funded programs could
be delayed, frozen, or reduced, and what mitigation strategies
you would enact.
Budget flexibility: Revise future JOM/ACF budgets (for
upcoming fiscal/program year) to include contingency buffer
lines or flexibility (deferring non-essential expenditures)
until full award certainty is obtained.
Coordination with state funding: SADE will consider whether
state funds (from NMPED) might temporarily cover critical
services typically supported by JOM funds, if delays occur, to
ensure no service disruption to students.
Documentation and compliance readiness: SADE will ensure all
current JOM/ACF grant documentation (budget modifications,
reimbursements, program reports) is up to date, so that when
the federal processes resume, we are ready to submit without
additional delay.
Advocacy readiness: SADE will coordinate with other tribes/
education organizations receiving JOM/ACF funds to monitor
developments at the federal level and be prepared for joint
advocacy if needed.
Long-Term (Beyond 12 months)
Policy-level engagement: SADE will stay abreast of federal
policy regarding the JOM program and any changes in its
funding, authorization, or administration, especially given the
larger federal education landscape disruptions.
Key Risk Factors & Mitigating Considerations
------------------------------------------------------------------------
Impact on Santa Ana
Risk Factor Pueblo's Education Mitigation Approach
Dept
------------------------------------------------------------------------
Delay in JOM/ACF Could force temporary Cash modeling, use of
reimbursements or new suspension of JOM- bridging Tribal
award funded services, cause higher education
cash-flow stress funds, prioritizing
critical services
Pending budget If federal approval is Maintain flexible
modifications or delayed, we cannot budget
expansions in JOM/ACF expand services.
grant
Federal administrative Slows program Ensure all
delays (monitoring, modifications, documentation is
approvals) reporting, compliance current, maintain
actions contact with federal
officer
Shutdown prolongation Longer disruption could Scenario planning,
or repeat occurrence affect award for new reserves, alternative
fiscal year or carry- funding fallback
forward funds
Stakeholder If services are scaled Transparent
expectations (tribal back, community might communication, set
students, parents) be disappointed or realistic
trust impacted expectations,
maintain core
services
------------------------------------------------------------------------
Important mitigating factor: Because our state-funded grants
via NMPED are not affected by the federal shutdown, our base
operations remain stable.
Conclusion
The Santa Ana Department of Education will send the Director of
Education and the Education Program Manager to attend the Johnson
O'Malley (JOM) Conference in Denver, Colorado, from November 8th
through November 10th.
This conference provides an important opportunity to collaborate
with other tribal education departments, federal representatives, and
program administrators to strengthen educational services for our
students.
Our primary concern during this time is the potential impact of the
federal government shutdown on existing and upcoming federal grants. We
will be seeking updates and guidance at the conference to understand
any implications for current funding cycles, new grant applications,
and program continuity.
While the 2025 federal government shutdown does introduce risk to
the federal portion of our education funding (specifically the JOM/ACF
grant program), it does not jeopardize our state grants from NMPED.
That provides a solid foundation.
The key vulnerabilities lie in whether the JOM/ACF award is fully
obligated, whether reimbursements or approvals are pending, and how
long the federal shutdown continues. By taking proactive steps now
(inventorying funds, prioritizing services, and building contingency
plans), the Santa Ana Department of Education will mitigate disruption
and continue delivering critical services to Santa Ana students.
______
executive summary--impacts of the federal shutdown on the pueblo of
santa ana's health & human services department (posa hhs) prepared by:
dr. mariam campos-marquetti, director of health & human services--
october 27, 2025
Overview
The federal government shutdown that began on October 1, 2025, is
disrupting essential health and social services at the Pueblo of Santa
Ana. Although some Indian Health Service (IHS) activities remain
operational through advance appropriations, most grantfunded programs,
technical assistance, and interagency coordination are delayed or
paused.
The POSA Health & Human Services Departm ent oversees multiple
programs that directly support community health, safety, and elder
wellbeing. The shutdown's impacts are widespre ad across:
IHS-funded Community Health Representative (CHR) Program
I HS-funded Substance Abuse & Behavioral Health Program
Older Americans Act Title VI Programs for Elders (Senior
Center congregate meals, home-delivered meals, transportation,
caregiver support)
BIA Indian Child Welfare Act (ICWA) Program
Office for Victims of Crime (OVC)/Social Services Program
Adult Day Program (ADP)
Public & Population Health Initiatives
Community Health Council (NM DOH-supported)
Administrative & Finance Division
Immediate Operational Impacts
Federal grant drawdowns, reimbursements, and approvals are
delayed.
Technical advisors and regional contacts are largely
unreachable.
Procurement and vendor payments tied to federal funding are
stalled.
Elders, families, and survivors face di sruptions in meal
delivery, crisis response, and case timelines.
The Senior Center, which operates on a $187,000 state grant (NM
ALTSD) supplemented by Title VI federal and tribal funds, remains open
but faces pressure due to delayed reporting, reimbursements, and
technical assistance.
Financial & Programmatic Risks
Short-term: slowdowns in outreach, procurement, and
training.
Mid-term: cash-flow stress from delayed reimbursements;
increased client demand in behavioral health and OVC services.
Long-term: potential service reductions, staffing freezes,
and risks to continuation funding if reporting and proposal
deadlines cannot be met.
Actions Underway
POSA HHS has initiated mitigation strategies to sustain core
services, including:
Prioritizing essential operations: home-delivered meals, CHR
outreach, behavioral health crisis response, and victim
advocacy.
Conducting cash-flow modeling to anti cipate 60-90-day
reimbursement delays.
Establishing redundant contacts across federal agencies and
documenting all unanswered inquiries.
Preparing extension letters and early report submissions to
minimize compliance risl<.
Standing up a Shutdown Working Group to coordinate
contingency planning across programs.
Requests tor Congressional Action
The Pueblo of Santa Ana respectfully requests the Senator's support
for:
1. Immediate passage of a clean funding resolution to restore
operations and clear backlogs.
2. Advance appropriations or mandatory funding across all major
tribal-serving programs (IHS, BIA, OVC, Title VI).
3. Automatic deadline relief for tribal reports, RFPs, and
continuation grants during shutdowns.
4. Rapid technical assistance restoration and accelerated
reimbursements within 30-45 days of reopening.
5. Permanent structural protections for tribal nations,
including data collection on shutdown impacts.
Conclusion
The current shutdown threatens the health, safety, and wellbeing of
Santa Ana's most vulnerable members--our elders, families, and
survivors. The Department of Health & Human Services continues to
operate with resilience and contingency measures, but sustained federal
action is critical to prevent service disruption and long-term harm.
Support from our Senators for funding continuity, deadline relief, and
durable tribal protections will safeguard essential health and human
services at the Pueblo of Santa Ana and across Indian Country.
______
white paper: impacts of the federal shutdown on the pueblo of santa
ana's health & human services department--from: dr. mariam campos-
marquetti, director, health & human services (hhs), pueblo of santa ana
(posa)
Executive Summary
The federal government shutdown that began on October 1, 2025, is
materially affecting the Pueblo of Santa Ana's Health & Human Services
(HHS) operations. While certain federal agencies (e.g., the Indian
Health Service, IHS) have partial insulation through advance
appropriations, many of our grant-funded activities, technical
assistance, new RFPs, amendments, and interagency coordination are
delayed or paused.
For POSA HHS, the interruption threatens the following core
programs and services:
I HS-funded Community Health Representative (CHR) Program
I HS-funded Substance Abuse & Behavioral Health Program
Older Americans Act Title VI Programs for Elders (Senior
Center congregate meals, home-delivered meals, caregiver
support, transportation, wellness/health screening, social
engagement)
BIA Indian Child Welfare Act (ICWA) Program
Office for Victims of Crime (OVC)/Social Services
Adult Day Program (ADP), tribally administered
Public Health & Population Health initiatives (screenings,
prevention, community education)
Community Health Council (NM DOH-supported coordination)
Administrative & Finance Division (grants, reporting,
procurement, compliance)
Compounding these risks, we have been unable to reach several
federal technical advisors, and deadlines for reports, drawdowns, RFPs,
and proposals are at risk. This paper (1) identifies operational
vulnerabilities, (2) assesses short-, mid-, and long-term impacts, (3)
outlines mitigation and contingency measures now underway, and (4)
presents concrete legislative and administrative requests for our U.S.
Senator.
Context: Shutdown & Tribal Programs
Congress did not enact full FY-2026 appropriations or a
continuing resolution by Oct 1, triggering a lapse in funding.
Advance appropriations lessen but do not eliminate exposure:
core operations may continue in places, yet grant actions,
modifications, reimbursements, and technical assistance are
frequently delayed.
Tribal programs historically experience disproportionate
harm during shutdowns due to reliance on federal approvals,
cost reimbursements, and technical guidance that pause or slow
substantially.
POSA HHS Program Overview & Risk Points
1) IHS-Funded Community Health Representative (CHR) Program What it
does: Home and community outreach to elders and high-risk
members; health education; navigation; screenings; linkage to
meals and services.
Shutdown risks:
Delays in contract support cost (CSC) payments and grant
modifications.
Training/TA pauses; Area/HQ approvals and email
responsiveness degraded.
Activities dependent on new or discretionary funds are
vulnerable.
Operational impacts at POSA:
Scheduling, outreach intensity, and home-based coordination
may slowespecially critical for homebound elders.
Heightened staff uncertainty around budgets and timelines;
hiring/onboarding delays.
Compliance/reporting compression increases audit and
continuation-funding risks.
2) IHS-Funded Substance Abuse & Behavioral Health Program
What it does: SUD treatment, behavioral health counseling, case
management, crisis response, and referral coordination.
Shutdown risks:
Delays in new awards, amendments, and drawdowns (including
SAMHSA/IHS discretionary streams).
Reduced TA/oversight; evaluation and monitoring time lines
slip. Operational impacts at POSA:
Essential care continues, but expansions and new initiatives
are at risk.
Rising demand (shutdown stressors) may collide with
constrained capacity.
Training and data/report deadlines at risk, impacting future
eligibility.
3) Title VI Programs for Elders (Senior Center & Related Services)
What it funds: Congregate Meals (Senior Center), Home-Delivered
Meals, Supportive Services (transportation, homemaker, chore),
Caregiver Support (respite, training, counseling), Health Screening/
Wellness, Socialization & Cultural Activities.
Funding profile: The Senior Center currently operates on a $187,000
state grant from the New Mexico Aging & Long-Term Services Department
(ALTSD), supplemented by Title VI federal funds and tribal funds.
Shutdown risks:
Delays in report acceptances, technical assistance,
amendments, and cash disbursements tied to federal processing.
Vendor/contractor payments and purchase orders slowed.
Operational impacts at POSA:
Senior Center reopening scale-up could slip due to vendor
and staffing uncertainties.
Home-delivered meals face supply and invoicing friction.
Caregiver supports and screenings may delay ramp-up,
reducing preventive touchpoints.
4) BIA ICWA Program
What it does: ICWA casework; court coordination; family
reunification; foster/kinship placement; compliance and training.
Shutdown risks: BIA contracts/agreements and discretionary items
delayed; training/TA unavailable or minimal.
Operational impacts at POSA:
Case timelines and court coordination can slip; training and
placement approvals slow.
Staff face higher administrative burden without federal
guidance; continuation cycles may bunch up.
5) Office for Victims of Crime (OVC)/Social Services
What it does: Trauma-informed advocacy; cri sis response; safety
planning; referrals; coordination with law enforcement/courts.
Shutdown risks: OVC grant actions (reimbursements, modifications,
continuation) delayed; TA intermittent.
Operational impacts at POSA:
Time-critical services risk responsiveness gaps; staff
safety/training supports lag.
Proposal/reporting time lines may compress, threatening
continuation funding.
6) Adult Day Program (ADP)
What it does: Provides supervised daily care, socialization, and
support services for elders and adults with disabilities.
Shutdown risks: Federal grant review delays for any linked
facility, staffing, or services expansions.
Operational impacts at POSA: Paused service enrollment and
contractor payment uncertainty.
7) Public Health & Population Health
What it does: Community health education, screenings, prevention
campaigns, immunization events, and health literacy initiatives.
Shutdown risks: Delayed communication with federal partners (IHS/
CDC) on training, reporting, and coordination.
Operational impacts at POSA: Interrupted coordination for
screenings and outreach; potential delays in planned events.
8) Community Health Council
What it does: NM DOH-supported multi-sector coordination on
priority health needs. Shutdown risks: State coordination continues,
but federal data sharing and guidance are limited during the lapse.
Operational impacts at POSA: Reduced alignment with federal
initiatives and delayed applications that depend on federal
coordination.
9) Administrative & Finance Division
What it does: Grants management, reporting, procurement, and
compliance across all HHS programs.
Shutdown risks: Federal approval for contracts and reimbursements
delayed; staff time diverted to contingency processes.
Operational impacts at POSA: Cash-flow pressure and audit
vulnerability as reporting windows tighten post-shutdown.
Cross-Cutting Risks Now Evident
Technical advisors unreachable or significantly delayed;
approvals and guidance stalled.
Grant reporting and proposal/RFP time lines jeopardized by
system and staffing slowdowns.
Procurement and vendor payments delayed where federal
approvals/reimbursements are involved.
Equity risks: elders, victims of crime, children/families in
ICWA cases, and members with SUD/MH needs face heightened harm
from even short disruptions.
Impact Assessment for POSA HHS
Short Term (less than or equal to 30 days)
Core I HS-supported operations continue, but training,
hiring, procurement, and expansions are delayed.
Senior Center ramp-up vulnerable to PO/vendor slowdowns;
home-delivered meals supply/invoicing friction.
Technical assistance is intermittent; approvals and
clarifications lag.
Reports/proposals may be submitted into a queue with delayed
federal action; risk of deadline collisions later.
Mid Term (30-90 days)
Contract support cost and vendor reimbursements delays
create cash-flow stress.
Behavioral health and OVC see demand up, capacity
constrained; ICWA coordination lags.
Staff morale/retention pressure; cautious approach to hiring
and program buildouts.
Grant reviews shift; competitive windows may compress or
slip unpredictably.
Potential need to tap tribal reserves, postpone non-critical
capital and expansions.
Long Term (hreater than 90 days)
Extended shutdown could force service reductions, hiring
freezes, and project deferrals.
Health and safety outcomes degrade: elder nutrition/social
isolation, relapse risk, victim safety, child welfare
timelines.
Community trust erodes if reopenings slip and services
pause.
Future funding jeopardized by missed/stacked deadlines and
compliance compression.
Mitigation & Contingency Measures (In Progress/Planned)
A) Immediate (Initiated/Ready to Initiate)
1. Map every award, deadline, and cash-flow dependency (6-12
months); flag discretionary/new-award exposure.
2. Establish redundant points of contact at IHS/BIA/DOJ; log
unanswered inquiries to support extension requests.
3. Sustain staff and community communication: what continues vs.
what may shift; reassure elders and high-risk members.
4. Protect core services: home-delivered meals, CHR outreach, BH
crisis response, OVC advocacy; pre-stage vendor contracts.
5. Procurement review: identify federal-dependent approvals; plan
tribal bridging where critical.
6. Cash-flow modeling: 60-90-day reimbursement delay scenario;
define trigger points for tribal reserves.
7. Reporting/proposals: submit early when possible; document
federal system/TA delays; pre-draft extension letters.
B) Medium Term (If Shutdown Persists)
1. Flex program management: pause non-essential enhancements (e.g.,
phased ADP build-out) to protect essentials.
2. Leverage partnerships: temporary state/county supports; regional
tribal cooperation for training and shared resources.
3. Advocacy documentation: quantify missed visits, meals, case
delays, and cost impacts; prepare a weekly one-pager.
4. Recovery planning: anticipate backlog (payments, on boarding,
audits) and build a 60-day catch-up plan.
C) Long-Term Structural
1. Adopt a tribal bridge-fund policy for elder nutrition, BH/OVC
crisis services, and ICWA case continuity.
2. Diversify funding: state, philanthropic, and academic partners
for evaluation/training and gap services.
3. Modernize grants & procurement: live tracker, deadline buffers,
and a ``shutdownrisk'' check in all RFPs.
4. Advocate for reform: support advance appropriations and
automatic CR mechanisms to avoid future shutdown harm.
Specific Requests for Our U.S. Senator
1. Pass an immediate, clean funding vehicle (CR or omnibus) to
restore agency operations and clear reimbursement backlogs.
2. Enact universal advance appropriations (or mandatory funding)
across key tribalserving programs (I HS-including CSC and construction,
BIA social services/lCWA, OVC tribal set-asides, and OAA Title VI).
3. Authorize automatic deadline relief (reporting, continuation
applications, postaward actions) during shutdowns, with no penalty to
tribes.
4. Direct agencies to prioritize elder nutriti on, ICWA timelines,
BH/OVC crisis services, and CHR outreach in emergency operations.
5. Require rapid TA restoration: maintain skeleton TA/grants staff
or publish singlepoint hotlines for tribal governments du ring lapses.
6. Accelerate reimbursements after reopening (e.g., surge teams) to
clear tribal backlogs within 30-45 days.
7. Fund data and evaluation to document shutdown harms in Indian
Country and support permanent protections.
Next Steps for POSA Leadership
1. Stand up a Shutdown Working Group (program leads, Grants/
Finance/Procurement) to deliver a 30-day contingency plan this week.
2. Activate cash-flow safeguards per the delay scenario; pre-
authorize limited draws from tribal reserves if triggers are met.
3. Transmit the Senator Packet: this white paper, a one-page
executive brief, the program impact dashboard, and time-se nsitive
deadlines needing extensions.
4. Hold weekly leadership huddles until federal operations
normalize; maintain a shared log of disruptions and costs.
Conclusion
Even with partial insulation, the shutdown is degrading the
reliability of core health and human services relied upon by our
elders, families, and survivors. The most acute nearterm risks involve
elder nutrition and social connection, behavioral-health/OVC crisis
response, and ICWA timelines--areas where delays convert quickly into
measurable harm.
POSA HHS is executing contingency steps to protect essential
services, but sustained federal action is needed. Support for immediate
funding, durable advance appropriations across tribal-serving programs,
automatic dea dline relief, and rapid TA/reimbursement resumption will
directly safeguard lives and hea lth in our community and across Indian
Country.
______
pueblo of tesuque--existing impacts from 2025 fall shutdown
The Pueblo of Tesuque is a sovereign Native American nation located
in the foothills of the Sangre de Cristo Mountains, just north of Santa
Fe, New Mexico. It is one of the state's smallest Pueblos, with a
population of about 800, but the Pueblo encompasses more than 17,000
acres, including Aspen Ranch and the Vigil Land Grant high in the Santa
Fe National Forest near the Santa Fe ski area.
Tesuque is one of the more traditional and conservative pueblos,
with a strong focus on cultural preservation, environmental protection,
and economic self-sufficiency. The Pueblo's efforts in cultural and
language preservation are a top priority, often through education and
the protection of sacred sites.
The government shutdown generally has a broad, disproportionate
impact on Native American communities, including the Pueblo of Tesuque,
due to the nation-to-nation relationship and reliance on federal
funding to fulfill trust obligations. There will be financial strain on
our tribal government resources.
For the Pueblo of Tesuque, services affected during this shutdown
are not immediately public, the impacts typically fall into the
following critical areas:
The Pueblo may have to use its own reserve funds to maintain
essential services, which can strain tribal finances.
Delays or freezes in the disbursement of federal grants and
contracts can halt or slow down tribal operations and projects.
The suspension of key farm and food assistance programs
threatens the financial stability of producers and the food
security of families.
--Supplemental Nutrition Assistance Program (SNAP) and WIC.
If the shutdown prolongs, federal funding for programs like
SNAP and the Special Supplemental Nutrition Program for Women,
Infants, and Children (WIC) could lapse, leading to food
insecurity for tribal members.
______
tribal historic preservation office--director larry samuel
A core priority is the preservation of Tesuque's unique culture and
language. This includes protecting ancestral lands and traditional
practices. The Pueblo is actively involved in efforts to repatriate
historical artifacts and maintain its traditional way of life. The
Pueblo's government and related entities work to uphold the Pueblo's
sovereignty and protect its cultural heritage.
The Pueblo of Tesuque is deeply concerned about the increase threat
to our ancestral and irreplaceable cultural sites and historic lands
resulting from the ongoing federal government shutdown.
Due to the lapse in appropriations, critical federal employees
including archaeologists, land managers, rangers, and law enforcement
officers responsible for protecting cultural resources on federal lands
surrounding the Pueblo and areas of cultural significance have been
furloughed or are operating with severely diminished capacity. This
situation creates a dangerous void in oversight that directly
jeopardizes our sacred sites and cultural heritage.
The government shutdown leaves our ancestral resources vulnerable
to:
Vandalism and Irreparable Damage:
--Unstaffed federal lands are susceptible to illegal entry,
vandalism, and the defacing of ancient petroglyphs,
archaeological sites, and historic structures. Such damage to
these sites, which hold the history and spirit of our people,
is often irreversible.
Looting and Theft:
--The lack of patrol and security on cultural resource lands
increases the risk of archaeological artifacts being looted and
removed, a direct violation of federal law and a devastating
loss to our cultural patrimony.
Halted Preservation Work:
--Essential cultural resource management activities,
environmental monitoring, and consultations required under the
National Historic Preservation Act (NHPA) are suspended,
stalling critical preservation and protection efforts.
Failure of Trust Responsibility:
--The federal government's inability to maintain sufficient
protection for these lands constitutes a failure to uphold its
treaty and trust responsibilities to the Pueblo of Tesuque and
other Tribal Nations, whose history is deeply tied to these
ancestral landscapes.
The Pueblo of Tesuque urges Congress to immediately end this
political stalemate and restore full funding to the agencies charged
with protecting these cultural heritage sites, ensuring that our sacred
sites, which belong to all future generations, are safe from harm. The
permanent damage to a cultural site cannot be compensated with back
pay; once destroyed, it is lost forever.
______
transportation department--director: robert frenier
The Pueblo of Tesuque's Transportation Department is responsible
for the planning, maintenance, and development of the Pueblo's
transportation infrastructure. The department is tasked with the
planning, design, construction, and maintenance of the Pueblo's road
network, often in collaboration with federal partners like the Bureau
of Indian Affairs (BIA). This includes the continual assessment of the
roadway system to identify and implement improvements.
The Pueblo of Tesuque acknowledges that the BIA Transportation
Program is generally one of the few tribal services that continues to
operate during a federal government shutdown. This continued function
is due to its funding source being largely non-lapsing funds from the
Department of Transportation's Highway Trust Fund, which makes it
exempt from the annual appropriations lapse.
The following are possible significant risks and challenges to the
Pueblo's infrastructure and community due to the shutdown:
Risk to Project Approvals:
--Although the funding source is protected, furloughs within
the BIA and the Federal Highway Administration (FHWA) it can
cause a severe slowdown or halt to the administrative process.
--Essential approvals for new road construction, maintenance
contracts, and the processing of Tribal Transportation
Improvement Program (TTP) plans may be delayed, preventing
upcoming work from starting.
Maintenance of Existing Infrastructure:
--The continued operation relies on the minimal staff deemed
``essential,'' who are often working without pay and currently
understaffed. This undermines the effectiveness of the BIA's
responsibility for emergency road maintenance, snow removal due
to upcoming weather or flooding issues, bridge inspections, and
safety improvements on the pueblo roads.
______
agricultural services department--interim director: cesar barrionuevo
The Pueblo of Tesuque's Farms Department is an integral part of its
commitment to cultural preservation, food sovereignty, and community
health. Its primary mission is to revive traditional farming practices
while also integrating modern, low-tech, and sustainable techniques to
provide healthy food for the Pueblo community. In recent year, the
pueblo has faced surface water depletions for irrigating and will
utilize ground water to supplement.
The federal government shutdown is creating an immediate and
profound crisis for agricultural producers and vulnerable citizens,
especially within Tribal communities, as the U.S. Department of
Agriculture (USDA) is forced to furlough approximately half of its
workforce.
The shutdown severely compromises the services for farmers:
USDA
--Offices Closed--No word on Congressional Direct Spending
Fund award
Conservation Programs Frozen:
--The Natural Resources Conservation Service (NRCS) has
furloughed the vast majority of its staff.
--Stops technical assistance and contact for new and ongoing
conservation projects.
The Pueblo of Tesuque urges Congress to prioritize not only funding
restoration but also a long-term solution, such as mandatory forward-
funding for all critical Tribal programs, to shield our essential
services from future political crises.
______
utility department--director: carlos casias
The Pueblo of Tesuque's Utility Department work is vital for the
Pueblo's self-governance and its ability to provide essential, modern
services to its citizens. It works to secure and protect the Pueblo's
water resources and manage infrastructure in a way that is sustainable
and in compliance with federal regulations. The department is
responsible for ensuring the Pueblo has a supply of safe drinking
water. The department operates and maintains the Pueblo's wastewater
treatment systems. The Utility Authority oversees solid waste disposal
services. Key issues include aging infrastructure, capacity
limitations, and inefficiencies in sludge management.
Permitting Delays:
--BIA staff responsible for approving rights-of-way, leases,
and permits necessary for utility line installation across
trust lands are furloughed, bringing new infrastructure and
maintenance projects to a standstill.
______
realty department--director: brenda m. atencio
The Pueblo of Tesuque's Realty Department is a critical
governmental entity responsible for the management, preservation, and
protection of the Pueblo's land and real estate assets. The department
provides technical assistance to the Pueblo's Governor, Tribal Council,
and community members on a range of land and real estate issues. They
are responsible for creating and maintaining essential documents, such
as easements, rights-of-way, and utility service line agreements.
The following are issues the Realty Department is dealing with due
to the shutdown:
Bureau of Indian Affairs (BIA) Operations:
--No Contact
--No access to Trust Asset Accounting Management System
(TAAMS); which is the system of record for trust land
management for the Department of the Interior. The division
provides user training, maintains documentation,
--Staff on Furlough cannot respond to emails
--No documents processed
--Permitting Delays:
*BIA staff responsible for approving rights-of-way, leases,
and permits.
______
information technology department--network and communications
administrator: jeremy yepa
IT Department determines information services requirements for the
Pueblo of Tesuque, establishing priorities for systems development and
data processing requirements, evaluating and projecting hardware and
software needs, and developing budget work programs to provide the
staff equipment necessary to implement required computer operating
systems, information and communication services.
The following are issues the IT Department is dealing with due to
the shutdown:
Telecommunications:
--While many programs funded by the Bipartisan Infrastructure
Law, such as the Tribal Broadband Connectivity Grant, continue
to be funded, the technical assistance and administrative staff
needed to manage and implement these projects may be
furloughed, leading to operational bottlenecks.
Possible slow down in ordering equipment for upcoming
projects.
______
department of environment and natural resources (denr)--denr director:
ryan swazo-hinds
The Pueblo of Tesuque is a leader in environmental stewardship and
currently the Environmental Protection Agency (EPA) Region 6 Regional
Tribal Operations Committee (RTOC) Co-Chair. DENR focuses on watershed
management, wildland restoration, and the removal of invasive species
to protect its lands from wildfires and improve ecosystem health. The
Pueblo actively works to secure and protect its aboriginal and
immemorial water rights, which are essential for traditional
agriculture and the long-term well-being of the community. Tesuque
often collaborates with federal agencies like the Bureau of Indian
Affairs, Bureau of Land Management and USDA Forest Service on co-
stewardship agreements to manage and protect culturally significant
lands.
The ongoing federal government shutdown critically undermines the
Pueblo's inherent sovereign right and the federal trust responsibility
to manage and protect our ancestral lands, water, and cultural
resources. Essential environmental and natural resource functions
within the Department of the Interior (DOI) and the BIA are being
severely curtailed, with a direct and immediate impact on our
community's well-being and long-term economic stability. With key staff
at the BIA and other regulatory agencies furloughed, the ability of the
Pueblo to engage meaningfully on federal actions-including resource
development, permitting, and regulatory changes-has been frozen.
The following are issues the DENR is dealing with due to the
shutdown:
Environmental Protection Agency (EPA)
--DENR's EPA Performance Partnership Grant (PPG) $311,552.00
was not awarded on time, due to the Water Program still working
through their budgets. Due to staff furlough, the award has not
been awarded.
--No contact with EPA Project Officers.
--Fall Region 6 EPA Tribal Caucus and RTOC Meeting canceled
due to no EPA employees able to travel.
The near complete closure of the EPA severely limits the Pueblo's
ability to access technical assistance and grant support for managing
local air and water quality and responding to localized environmental
hazards.
Bureau of Indian Affairs (BIA) Operations:
--No Contact
Wildland Fire Management: The BIA's Wildland Fire Program is
largely continuing using non-lapsing funds, but the overall
coordination and preparatory work for fire season are compromised by a
scaled-back federal presence.
USDA Forest Service, Santa Fe National Forest.
--Canceled out government to government consultation set up
on October 1, 2025. Environmental Review and Permitting: All
non-emergency processing of permits, leases, and environmental
reviews under the National Environmental Policy Act (NEPA) and
the National Historic Preservation Act (NHPA) has ceased.
______
housing department--sage mountainflower
Housing at Tesuque Pueblo blends deep-rooted indigenous
architectural styles with modern, tribally-managed programs are working
to provide affordable, safe, and culturally appropriate homes for its
members. Due to limited availability of new affordable units, some
households may experience overcrowding. A portion of the housing stock
may be older, leading to issues with incomplete plumbing, incomplete
kitchens, structural needs, and other substandard conditions requiring
rehabilitation. The goal is utilizes federal funding, such as the
Indian Housing Block Grant (IHBG), to plan and execute projects,
include new housing construction by building new affordable homes for
Tribal members.
The U.S. Department of Housing and Urban Development (HUD) Office
of Native American Programs (ONAP) is operating at a near-complete
standstill, directly cutting off vital financial arteries:
Indian Housing Block Grant (IHBG)
--No ability to contact staff for assistance to current
grant.
--While Tribally Designated Housing Entities (TDHEs) may draw
down previously obligated funds, the shutdown freezes all new
competitive IHBG and Indian Community Development Block Grant
(ICDBG) awards
Administrative Freeze: The large-scale furlough of HUD/ONAP
staff prevents the processing of grant agreements, submission
of financial reports, and the provision of essential technical
assistance and oversight necessary to keep housing projects on
track.
______
Response to Written Questions Submitted by Hon. Brian Schatz to
Hon. Sarah E. Harris
Question 1. The 2025 federal government shutdown and the concurrent
agency Reductions in Force (RIFs) are creating unprecedented strains on
Tribes, compounding challenges that existed before the shutdown. These
strains include cancelled or frozen funds, hiring freezes, staffing
gaps from voluntary separations (including early retirements and
``fork-in-the-road'' offers), and breakdowns in communication with
agencies. What specific disruptions or harms (e.g., delayed program
funding, paused contracts, delayed consultations, halted services,
etc.) stem directly from the lapse in appropriations?
Answer. Numerous challenges for Tribal Nations stem from this and
previous federal shutdowns and the subsequent lapse in appropriations.
These include the abrupt loss of access to funding delivered to Tribal
Nations, citizens, and communities in fulfillment of trust and treaty
obligations. Many Tribal Nations rely on this funding to support
critical government operations and have little or no other funding in
reserve to bridge the gap during a shutdown. The longer a shutdown
persists, the more precarious the situation becomes for the
governmental operations of many Tribal Nations. Tribal Nations are
obligated to continue providing essential services to our citizens and
communities, like nutrition, public safety, and social services--
regardless of whether the federal government is functional. During this
shutdown, some USET SPF member Tribal Nations considered taking out
loans to cover costs and others were forced to reallocate funding
earmarked for other purposes.
As the Committee knows, Tribal Nations should not be made to
subsidize federal trust and treaty obligations, but this is a regular
occurrence, both during and outside of shutdowns. There was a time when
some Tribal governments were labeled dysfunctional. Now Tribal Nations
are forced to fill the gap created by a dysfunctional federal
government. The cost of dysfunction is borne by our children,
communities, and elders.
Relatedly, shutdowns often result in the furlough of Tribal staff
along with federal staff, along with delays in program funding. The
uncertainty and economic impacts of protracted shutdowns can cause
permanent loss of Tribal staff (as well as federal staff) in possession
of key expertise that cannot easily be replaced. This compounds and
exacerbates existing workforce attraction and retention challenges
across Indian Country and within the federal government. It also
jeopardizes program growth, development, and continuity at the Tribal
level.
Question 1a. What additional or distinct challenges are Tribes
experiencing as a result of the agency RIFs occurring during the
shutdown (e.g., permanent loss of key staff, reduced points of contact,
diminished institutional knowledge)?
Answer. The RIFs during and prior to the shutdown have caused
considerable confusion and uncertainty for Indian Country. For example,
during the shutdown, it was particularly difficult to determine whether
federal staff had been furloughed or RIF'd. Even federal staff were
reporting that they did not have clarity from agency leadership on
their employment status. Beyond RIFs at the CDFI Fund, it was
particularly difficult to determine whether RIFs at other agencies,
such as HHS, affected Tribal-serving positions and programs.
More broadly, permanent RIFs of Tribal-serving positions are
uniquely damaging to the execution of trust and treaty obligations.
Indian Country is extremely diverse and the laws and policy governing
the Tribal-federal relationship are complex and multilayered. The loss
of expert personnel creates gaps in knowledge that cannot easily be
filled--with new personnel or with technology.
A helpful analogy is US international diplomacy. In that context,
it is considered axiomatic that diplomats serving a particular nation
must have a deep understanding of that nation's history, people and
government which all inform its current circumstances, challenges and
opportunities. It is this deep knowledge that strengths and informs the
nation-to-nation relationship and is essential to effective diplomacy
and positive outcomes for all.
Tribal Nations expect and deserve the same consideration, as the
Tribal-federal relationship is diplomatic in nature. Agency staff are
most effective when they have deep knowledge and relationships within
Indian Country and federal Indian policy. Appointees, who come and go
with each administration, do not necessarily have this knowledge and,
therefore, must rely on seasoned agency staff. Indiscriminate RIFs and
other actions, including relocations and reassignments, deprive
decision makers of this expertise, which is damaging to the execution
of trust and treaty obligations, as well as the Tribal-federal
relationship.
Question 1b. Of the challenges facing Native communities during
this period, what proportion would you attribute primarily to the
shutdown versus the agency RIFs?
Answer. During the shutdown, it was extremely difficult to
determine which disruptions were caused by the lapse in appropriations
and which had another cause, such as the RIFs. Over the course of 2025,
there has been a distinct lack of transparency and communication from
the Executive Branch regarding RIFs, reorganizations, and other
restructuring. While the impacts of a federal government shutdown are
always destabilizing, this disruption was intensified by RIFs and other
issues, such as the Administration's resistance to utilizing the SNAP
contingency fund.
Question 1c. In what ways are the shutdown and the RIFs interacting
to intensify or prolong disruptions in federal-Tribal relations and
service delivery?
Answer. Historically, there have always been challenges with
Tribal-serving staffing levels at federal agencies. When I served at
Interior, I know that Indian affairs had around 8,000 employees. Even
then, we faced challenges which had compounded from many years of
inadequate staffing.
The fact is that RIFs violate trust and treaty obligations. No one
argues that Indian Affairs or BIE are overstaffed or overfunded. No one
argues that other federal agencies do not have the same trust and
treaty obligations as BIA, BIE, and IHS. Quite the opposite--Congress
has time and again on a bi-partisan basis took action to ameliorate
this generational inequity.
The RIFs take a hatchet to that progress, breaking the delivery of
obligations from the inside out and at the same time undermining
Congress. Those resources are not reallocated to Tribal Nations, but
rechanneled for purposes completely unrelated to trust and treaty
obligations.
An awareness and understanding of the bedrock principles of the
Tribal-federal relationship is essential to this work. Add on top of
that the fact that every Tribal Nation's relationship is impacted by
many factors. For example, historical context, particular provisions of
treaties and land claims settlements, the composition and structure of
each Tribal government, can all widely differ. There is not a one-size-
fits-all approach to this work.
Question 2. The Office of Management and Budget (OMB) Office of
Information and Regulatory Affairs (OIRA) memorandum issued on October
21, 2025, ``Streamlining the Review of Deregulatory Actions,'' directs
agencies to bypass Tribal consultation required by executive orders and
laws even when such deregulation involves Tribes. Combined with RIFs
and limited agency communication during the shutdown, the OIRA
memorandum further strains the federal-Tribal relationship by
undermining required consultations. Please describe how the OIRA
memorandum's directive to bypass Tribal consultation despite Executive
Order 13175 and longstanding trust and treaty obligations could impact
Tribal equities. Please also include specific examples of potential
harm and any legal or policy concerns.
Answer. Although there are examples of burdensome regulations that
Indian Country would like to see streamlined, modified, or eased in
ways that promote and advance the exercise of Tribal sovereignty,
Tribal consultation must always occur when the federal government takes
action that affects us--whether through prospective regulation or
deregulation. Executive Order 13175 and other Tribal consultation
requirements serve critical purposes: to ensure that we are not harmed
by federal actions and that we are able to provide guidance on how best
to execute these actions in accordance with trust and treaty
obligations. Federal policy and the Tribal-federal relationship
benefits considerably when Tribal input is meaningfully and thoroughly
solicited and acted upon. Moreover, the federal government is legally
and morally obligated to engage in consultation.
We are concerned that the OIRA memorandum will result in
deregulation without notice or the benefit of Tribal guidance. This
could affect our ability to protect sacred sites and cultural
resources, public health, or our natural environment. It could also
complicate efforts to promote the exercise of Tribal sovereignty or
other positive deregulatory action, given the great diversity of
circumstance, tradition, and history found throughout Indian Country.
Tribal consultation is always required when a federal action with
potential impacts on Tribal Nations, citizens, or communities.
Question 3. Tribes are reporting that staff furloughs at the
Department of the Interior are delaying critical real estate activities
at the Bureau of Indian Affairs (BIA) needed for economic development,
housing, and infrastructure and energy projects, and suspending federal
procurement and contracting activities. What impacts will the backlog
of, for example, lease transactions, land withdrawals, real estate
documentation requests, and right-of-way approvals that result from
this extended shutdown, have on Tribes and Tribal organizations?
Answer. The shutdown will further compound challenging facing real
estate processes at Interior. The lengthy backlogs at real estate
services are well known. It is not unusual for delays in these
processes to be so protracted that component steps need to be repeated.
One cause of delays is inadequate staffing. There are opportunities to
address these backlogs by recognizing Tribal Nation authority to assume
parts of the process, such as the provisions outlined in the UNLOCKED
Act, real estate appraisals, or other components.
Question 3a. How will suspension of federal procurement and
contracting activities impact businesses and industry on Tribal lands,
and what are the direct impacts of these disrupted activities on Tribal
employment and economies during the shutdown? Please provide data, if
available, on the share of businesses/industry that rely on federal
procurement and contracting on Tribal lands in your answer.
Answer. All Tribal Nations have positive economic impacts on their
surrounding communities and businesses. We hire non-Native employees,
make purchases from community businesses, and create circumstances that
bring additional economic development to our regions.
Approximately 3/4 of USET member Tribal Nations are currently
engaging in or developing federal contracting economic activities, and
a majority of those firms are 8(a) and HUBZone certified. A 2022 study
by The Center for Indian Country Development (CICD) found that Federal
contracting revenue for Tribal Nations has grown faster than revenue
from gaming and natural resources development. Outside gaming,
contractual services generate the most revenue for USET Tribal Nations
and our communities.
The revenue from these enterprises supports Tribal community
programs that are underfunded by the federal government. Native entity
enterprises adapt traditional corporate models to benefit their
communities, and, in a few cases, with USET membership even expand to
have a global reach.
Question 4. Despite the IHS, BIA, and BIE being exempted from
furloughs and RIFs, many federally-funded staff must work without pay
during the shutdown, such as BIA and Tribal police officers. How has
the shutdown affected staffing recruitment, retention, and morale
challenges for federal and Tribal programs, especially in the public
safety space?
Answer. As previously stated, protracted shutdowns are highly
destabilizing for Tribal and federal personnel. Many of these personnel
cannot afford to go without regular paychecks. The uncertainty and
economic impacts from lengthy shutdowns often result in staff turnover
at the Tribal level. Tribal Law enforcement agencies routinely operate
without proper staffing, requiring officers to work long hours without
time off, creating enormous safety and wellness issues for those
officers who serve our Tribal communities. These shortages are mostly
the result of the longstanding shortfalls in federal funding for Tribal
public safety programs, with harmful consequences that include an
inability to hire sufficient numbers of police officers and many
existing police officers leaving Tribal Nations for better wages and
benefits in non-Tribal employment. Shutdowns only exacerbate these
inequities. USET SPF Resolution 2025:001 calls Tribal consultation on
this issue, the ability for Tribal Nations to reprogram funding to
address officer shortages, and supports federal retirement and benefit
parity for Tribal law enforcement.
______
Response to Written Questions Submitted by Hon. Brian Schatz to
Anthony Locklear, II
Question 1. The 2025 federal government shutdown and the concurrent
agency Reductions in Force (RIFs) are creating unprecedented strains on
Tribes, compounding challenges that existed before the shutdown. These
strains include cancelled or frozen funds, hiring freezes, staffing
gaps from voluntary separations (including early retirements and
``fork-in-the-road'' offers), and breakdowns in communication with
agency staff. What specific disruptions or harms (e.g., delayed program
funding, paused contracts, delayed consultations, halted services,
etc.) stem directly from the lapse in appropriations?
Answer. The shutdown has exposed numerous vulnerabilities across
many federal health agencies. First and foremost, all work at the
Department of Health and Human Services, outside of the Indian Health
Service was disrupted from the lapse in appropriations. Health
Resources and Services Administration (HRSA) and Substance Abuse and
Mental Health Services Administration (SAMHSA) funds were delayed,
jeopardizing behavioral health programs, maternal health initiatives,
and suicide prevention services. The CDC and Environment Protection
Agency (EPA) programs that fund Tribal public health infrastructure,
environmental safety, and clean water projects were paused or slowed,
disrupting vital community health operations. Additionally, Tribal
Advisory Committees, including the Centers for Medicare and Medicaid
Services (CMS) Tribal Technical Advisory Group (TTAG), were unable to
meet, directly disrupting communication channels between CMS and Tribal
leaders. When these functions pause, the effects are immediate.
Question 1a. What additional or distinct challenges are Tribes
experiencing as a result of the agency RIFs occurring during the
shutdown (e.g., permanent loss of key staff, reduced points of contact,
diminished institutional knowledge)?
Answer. The Reductions in Force at the Department of Health and
Human Services have resulted in numerous challenges for Tribes. Since
early 2025, workforce reductions and hiring freezes within HHS,
particularly at the IHS, HRSA, SAMHSA, and CDC, have significantly
reduced the personnel supporting Tribal programs. The uncertainty
surrounding these actions has devastated morale, driving experienced
staff and clinicians to leave the Indian health system altogether.
Additionally, administrative bottlenecks have also emerged, where staff
reductions have limited the ability to provide technical assistance,
monitor grantee performance, and eroded institutional knowledge. The
result of these actions is not administrative efficiency, but a loss of
access to quality of life and positive healthcare outcomes.
Question 1b. Of the challenges facing Native communities during
this period, what proportion would you attribute primarily to the
shutdown versus the agency RIFs?
Answer. While the shutdown has been harmful for Indian Country,
advance appropriations for the Indian Health Service has shielded the
Tribal health system from the most harmful and damaging impacts.
However, ongoing reductions in force, early retirements, and hiring
freezes across HHS have created serious instability for Tribal Nations
and the federal programs that serve them.
Question 1c. In what ways are the shutdown and the RIFs interacting
to intensify or prolong disruptions in federal-Tribal relations and
service delivery?
Answer. While the Indian Health Service has been sheltered from the
most damaging impacts of the shutdown, the impacts beyond IHS at the
Department of Health and Human Services have had a direct impact on
Tribal relations and care delivery. For instance, Tribes who choose to
exercise their right to self-determination under the Indian Self-
Determination and Education Assistance Act enter negotiations with IHS
through a process led by attorneys at the Office of General Counsel.
The OGC office has seen severe cuts from the reductions in force, as
well as placed on furlough during the shutdown. This means that all
ISDEAA negotiations, already delayed by staffing challenges at OGC, are
completely on pause until after the shutdown. This directly impacts
Tribal sovereignty and disrupts Tribal self-determination under ISDEAA.
Question 2. The Office of Management and Budget (OMB) Office of
Information and Regulatory Affairs (OIRA) memorandum issued on October
21, 2025, titled, ``Streamlining the Review of Deregulatory Actions''
directs agencies to bypass Tribal consultation required by executive
orders and laws, even when such deregulation involves Tribes. Combined
with RIFs and limited agency communication during the shutdown, the
OIRA memorandum further strains the federal-Tribal relationship by
undermining required consultations. Please describe how the OIRA
memorandum's directive to bypass Tribal consultation despite Executive
Order 13175 and longstanding trust and treaty obligations could impact
Tribal equities. Please also include specific examples of potential
harm and any legal or policy concerns.
Answer. The OIRA memorandum directing agencies to bypass Tribal
consultation for deregulatory actions raises serious concerns for
Tribal health and directly conflicts with Executive Order 13175 as well
as upholding the federal trust responsibility. When combined with
agency reductions in force and limited communication during government
shutdowns, this directive increases the risk that health-related
federal decisions affecting Tribal communities will be made without
Tribal input or awareness. Many federal regulations are foundational to
protecting public health and ensuring access to care in Indian Country.
Deregulation without Tribal consultation risks weakening or removing
safeguards that directly affect Tribal health systems and community
wellbeing.
For example, Deregulatory actions affecting Indian Health Service
operations, Medicaid, Medicare, or related federal health programs may
disrupt care delivery, reimbursement, and workforce stability at Tribal
and IHS facilities. Without consultation, agencies may overlook how
regulatory changes affect Tribes that rely on these programs as their
primary source of health care. Additionally, rollbacks of public health
preparedness requirements, surveillance, data-sharing, or interagency
coordination may reduce Tribes' ability to respond effectively to
public health emergencies, including infectious disease outbreaks and
environmental exposures. These risks are heightened when agencies lack
staffing or capacity due to RIFs or shutdowns.
Government shutdowns and agency RIFs reduce federal capacity for
consultation, technical assistance, and timely communication. When
deregulation proceeds without consultation under these conditions,
Tribes are more likely to learn of changes after implementation,
limiting their ability to mitigate harm or adjust health service
delivery.
In addition to direct harms to Tribal communities, there are also
legal and policy concerns with the memorandum. First and foremost, OMB
guidance cannot override an Executive Order. Presuming that Tribal
consultation is unnecessary for deregulatory actions is inconsistent
with EO 13175. Many health-related regulations implement the federal
government's obligation to protect Tribal health and fulfill the
federal trust responsibility. Removing them without Tribal consultation
risks undermining that obligation. Finally, excluding Tribes from
deregulation decisions increases the likelihood of poorly informed
policy changes, service disruptions, and legal challenges. By
encouraging agencies to bypass Tribal consultation for deregulatory
actions, the OIRA memorandum risks undermining Tribal health
protections at a time when federal capacity is already strained.
Ensuring that Executive Order 13175 applies to all federal actions,
including deregulation, is essential to protecting Tribal health and
maintaining effective federal-Tribal coordination.
Question 3. You testified that more than 1,000 IHS employees
accepted early retirement offers in early 2025 and that IHS is facing
its lowest offer acceptance rate in history. While Secretary Kennedy
has exempted clinical staff from some administrative decisions,
including hiring freezes, not all IHS positions have received these
exemptions. During the shutdown, can IHS hire new employees, including
administrative staff, even with advance appropriations for Fiscal Year
2026 in place? If not, how does this impact the existing recruitment
and retention challenges at IHS, i.e., what is the real impact of these
employee losses and poor recruitment rates on IHS' ability to serve
Indian Country? Also, please specify how the inability to hire
administrative and other non-clinical positions impacts IHS facilities'
ability to serve patients.
Answer. During the shutdown, the Indian Health Service is allowed
to hire new employees. However, the already excruciatingly slow process
has been delayed even more by administrative staff at HHS who have been
furloughed. Also, although the IHS has continued hiring during the
shutdown, the rate of employee loss compared to new hires has created
severe challenges. Many facilities are so thinly staffed that losing
just one physician-level provider could force closure. Other facilities
are concerned they may be forced to reduce service offerings due to
lack of adequate staffing. Any impact to services, including facility
closure, has prohibits the federal government from fulfilling its
obligation to provide high-quality healthcare to all American Indians
and Alaska Natives.
Question 3a. Even with exemptions in place for some IHS positions
(i.e. clinical), how are funding and job stability uncertainty
impacting recruitment?
Answer. Since early 2025, workforce reductions and hiring freezes
within HHS, particularly at the Indian Health Service (IHS), have
significantly reduced the personnel supporting Tribal programs. The
uncertainty surrounding these actions has devastated morale, driving
experienced staff and clinicians to leave the Indian health system
altogether. Additionally, the IHS already operates with severe
shortages, including a 30 percent overall provider vacancy rate and a
36 percent physician vacancy rate at any given time. However, directly
due to reductions in force, added hiring challenges, and unprecedented
low rates of job acceptance, the IHS is currently operating at an
overall 35 percent vacancy rate. Many facilities are so thinly staffed
that losing just one physician-level provider could force closure; 43
percent of IHS facilities would have to shut their doors if that
occurred. The IHS has also been forced to move providers across the
country and mobilize more than 70 Public Health Service Officers to
keep facilities from closure. While staffing shortages are not a new
concept for the IHS, senior leadership has reported unprecedented rates
of providers not accepting offers, which only complicates an already
long hiring process.
Question 3b. How are IHS staffing levels impacting grant
administration and Tribes' ability to access timely awards?
Answer. The Indian Health Service is experiencing issues related to
staffing levels across the board, including grant administration. High
vacancy rates reduce the agency's ability to process applications,
issue awards, and provide critical technical assistance. Tribes often
rely on the IHS to provide technical assistance and administrative
infrastructure for grant management and administration. The Indian
Health Service Division of Grants Management is critical to upholding
the federal government's trust responsibility.
______
Response to Written Questions Submitted by Hon. Ben Ray Lujan to
Anthony Locklear, II
Question 1. You highlighted that advance appropriations for IHS
have provided stability during shutdowns. Can you describe specific
ways in which Tribal health services have remained operational this
year due to advance appropriations?
Answer. The continuity of services and normal operations provided
by advance appropriations at IHS during this shutdown reveals the
critical need for advanced funding for the I/T/U system. Before the
enactment of advance appropriations, the IHS was subject to the full
impact of government shutdowns, disrupting all levels of care delivery.
During the 35-day government shutdown in 2019, direct care services
remained non-exempt, but providers did not receive pay. In addition,
administrative and technical staff responsible for scheduling patient
visits, processing referrals, and managing health records were
furloughed. Contracts with vendors for sanitation services and
facilities upgrades went weeks without payment, prompting many Tribes
to exhaust alternative resources to stay current on these bills. Many
Tribes reported losing physicians to other hospitals and health systems
unaffected by the shutdown. At the height of the budget instability,
some Tribal governments were forced to reconcile their budgets up to 21
times in a single fiscal year due to successive short-term continuing
resolutions, each lasting anywhere from a single day to several months.
This constant uncertainty strained cash flow and, in some cases,
triggered credit downgrades for Tribes financing critical health
facilities. However, thanks to advance appropriations for FY26, the
difference is clear. The IHS remains open thanks to the members of this
Committee, as advance appropriations allow clinics to stay open,
payroll to continue, and patients to receive care today. These advance
funds have directly allowed IHS direct service facilities to maintain
services and critical programs, while also planning for the future.
Advance appropriations also helped Tribal health systems respond to
unexpected emergencies. On October 11, 2025, eleven days into the
federal shutdown, Western Alaska was slammed by remnants of Typhoon
Halong, which brought hurricane-force winds and life-threatening
floods. In southwestern Alaska, the Yukon-Kuskokwim Health Corporation
(YKHC) assisted in coordinating response efforts and aiding in the
rescue mission. Initial reports from YKHC indicated that Tribal leaders
requested that medical providers and prescription medications be
provided to Kwigillingok, Kipnuk, Tuntutuliak, and Chefornak. YKHC
immediately coordinated with medical teams to assist these remote
locations. Through available funds, YKHC provided services for
community members in need and funded other relief efforts.
Question 2. What has the impact of the shutdown on IHS accounts
that do not receive advance appropriations?
Answer. Although the Indian Health Service is mainly funded by
advance appropriations, there are six accounts that are not covered by
the advance. These include, healthcare facilities construction,
sanitation facilities construction, contract support costs, 105(l)
lease payments, electronic health records, and the Indian Health Care
Improvement Act fund. Therefore, the Indian Health Service has relied
on Fiscal Year 2025 carry-over and third-party revenue to fund these
accounts. Thankfully, the Indian Health Service has been able to remain
fully open, functional, and not missed a single payment throughout the
entire shutdown. With that said, one of the largest impacts has been
contract support costs and Tribal 105(l) lease payments. While some
Tribal providers may be able to remain afloat for a while without
receiving these payments, at some point they will have to dig into
program funds to pay fixed administrative and facility costs if
appropriations do not come through. Additionally, there are other
Tribal providers reporting fear about how they are going to keep the
lights on without these appropriations.
Question 3. How would advance appropriations for all IHS accounts
help the IHS to better deliver on the trust responsibility to provide
health care to American Indians and Alaska Natives?
Answer. The 2025 government shutdown has proven that advance
appropriations for the Indian Health Service are lifesaving, efficient,
and highly successful. The IHS has been able to continue providing
high-quality services to all of Indian Country, without missing a
single paycheck or payment. Additionally, even though the IHS was able
to cover remaining accounts without advance appropriations with third-
party revenue and carry-over funds during this shutdown, it is not a
guarantee that the IHS will always have the funds available to fund
these accounts in a shutdown. Therefore, it is imperative advance
appropriations is expanded for all IHS accounts ensure the Indian
Health Service can always remain 100 percent open and functional during
federal government shutdowns.
Question 4. How are staffing reductions and the government shutdown
impacting IHS's ability to fill vacancies, both in terms of recruitment
and completing the lengthy hiring process?
Answer. Ongoing RIFs, early retirements, and hiring freezes across
HHS have created serious instability for Tribal Nations and the federal
programs that serve them. These are not abstract bureaucratic changes;
they directly weaken the government's capacity to fulfill its trust and
treaty obligations to Tribal Nations. Since early 2025, workforce
reductions and hiring freezes within HHS, particularly at the Indian
Health Service (IHS), have significantly reduced the personnel
supporting Tribal programs. The uncertainty surrounding these actions
has devastated morale, driving experienced staff and clinicians to
leave the Indian health system altogether.
Additionally, the IHS already operates with severe shortages,
including a 30 percent overall provider vacancy rate and a 36 percent
physician vacancy rate at any given time. However, directly due to
reductions in force, added hiring challenges, and unprecedented low
rates of job acceptance, the IHS is currently operating at an overall
35 percent vacancy rate. Many facilities are so thinly staffed that
losing just one physician-level provider could force closure; 43
percent of IHS facilities would have to shut their doors if that
occurred. The IHS has also been forced to move providers across the
country and mobilize more than 70 Public Health Service Officers to
keep facilities from closure. While staffing shortages are not a new
concept for the IHS, senior leadership has reported unprecedented rates
of providers not accepting offers, which only complicates an already
excruciatingly long hiring process. Staffing is not a bureaucratic
detail, it is literally a matter of life and death in many Tribal
communities.
______
Response to Written Questions Submitted by Hon. Brian Schatz to
Ben Mallott
Question 1. The 2025 federal government shutdown and the concurrent
agency Reductions in Force (RIFs) are creating unprecedented strains on
Tribes, compounding challenges that existed before the shutdown. These
strains include cancelled or frozen funds, hiring freezes, staffing
gaps from voluntary separations (including early retirements and
``fork-in-the-road'' offers), and breakdowns in communication with
agency staff. What specific disruptions or harms (e.g., delayed program
funding, paused contracts, delayed consultations, halted services,
etc.) stem directly from the lapse in appropriations?
Answer. The specific disruptions and harms that stem directly from
the lapse in appropriations are too numerous to list. Just from loss of
SNAP and WIC benefits alone, there was a 20-30 percent increase in need
at the available food banks. There are over 25,000 Alaska Native
households statewide that depend on SNAP benefits. There was lack of
funding for families depending on energy assistance through LIHEAP,
forcing many families to go without heat during the coldest time of the
year in Alaska. Multiple village tribes reported that they could not
process grants, access project officers, amend budgets, or get
reimbursed for work already performed. This puts tribal jobs and
services at risk and threatens the health and welfare of tribal
citizens and families.
While the Indian Health Service (IHS) operations had the benefit of
advance appropriations, some of the IHS programs are not included.
These include Facilities construction, facilities sanitation
construction, the 501(l) lease program, and contract support costs
(which supports third party services that cannot be provided by tribal
health contractors directly). There are at least 300 participants in
the IHS 501(l) lease program in Alaska. Without advance appropriations
for these critical programs, the Alaska Native health care providers
have to pull from other resources and sources of funds--overall this
impacts the services and efficiencies of Native healthcare.
The Tribes, Tribal Health entities, and Tribal Housing entities
will definitely face cashflow issues and delays in services.
Ultimately, this could lead to a stop in some services, which will be
detrimental to our people in so many ways--lack of food, healthcare,
heat, education support, mental health support, job security and more.
Question 1a. What additional or distinct challenges are Tribes
experiencing as a result of the agency RIFs occurring during the
shutdown (e.g., permanent loss of key staff, reduced points of contact,
diminished institutional knowledge)?
Answer. There were many challenges and impacts, too many to list.
Here are a few specific examples of impacts from RIFs:
All employees administering the Low-Income Heat and Energy
Assistance Program (LIHEAP) were terminated which completely
stopped the application process and delivery of those grants,
which also prompted the Administration to then zero out the
budget for FY26. This impacts thousands of Alaska Native
households dependent upon these programs.
Department of Justice terminated the Office of Environmental
Justice and has lost 70 percent of its Attorneys, which will
impact the civil, voting, environmental justice rights of many
socially, economically, racially and politically disadvantaged
groups, including Alaska Natives.
National Oceanic and Atmospheric Administration (NOAA)
weather monitoring and research staff RIFs and site closures
affect the health and safety of many tribes and villages in
Alaska that rely immensely on the weather monitoring and
reporting provided by NOAA. Our rural and remote communities
can be very impacted by devastating weather conditions, as we
saw recently with Typhoon Halong, but even by the common
weather conditions in Alaska.
RIFs at the Federal Emergency Management Agency (FEMA) and
funding reductions overall at the Agency have and will impact
the emergency assistance needs of our communities during and
after disasters, such as Typhoon Halong, flooding in Juneau
related to the glacial lake outbursts, earthquakes, and other
coastal storm and erosion disasters.
Question 1b. Of the challenges facing Native communities during
this period, what proportion would you attribute primarily to the
shutdown versus the agency RIFs?
Answer. While both are quite impactful to our Native communities,
the government shutdown and furloughs were disproportionately more
impactful during this period. If I am forced to put a number on it, I
would say at least 75 percent more impactful, but it is hard to
quantify the extreme impact and insecurity that this provided. You
cannot function when an entire agency that is critical to the Native
community is completely shut down. For example:
All IHS attorneys were furloughed, which caused delays in
contract negotiations, routine agency activities, and canceled
meetings.
The Substance Abuse and Mental Health Services
Administration (SAMHSA) furloughed all grant officers, leaving
questions unanswered, approvals pending, and required use of a
new reporting portal with no training or guidance.
Bureau of Indian Affairs furloughed staff resulted in lack
of access to project offices, unprocessed grants, lack of
reimbursement for work already performed, and reporting portals
were closed. Without these funds, tribal jobs and services are
at risk.
Office of Subsistence Management and Federal Subsistence
Board canceled meetings and its regulatory and management
obligations were on hold. Accordingly, they were not available
to address any emergency hunting or fishing requests if made,
which would have been critical during loss of SNAP and WIC.
Question 1c. In what ways are the shutdown and the RIFs interacting
to intensify or prolong disruptions in federal-Tribal relations and
service delivery?
Answer. This is like a perfect storm of consequential impacts to
our Native communities. Essentially life and death impacts for some
rural communities and tribal citizens. For example, in the Interior of
Alaska, SNAP is a lifeline for at least two villages--Alatna and
Anvik--which rely almost exclusively on SNAP to feed their families.
Without SNAP resources, the village residents who need it will turn to
the Tribe. If the Tribe is in a deficiency due to lack of grant payment
and contract support from the BIA and IHS, then there is no one else to
turn to. There are no food banks available in rural villages. While our
people are resilient and will find a way to survive, it is an unfair
disruption in the obligations of the Federal Government's trust
responsibility to Native people.
If you are seeking a specific example, at the IHS, with the lawyers
at the Agency on furlough, meetings were canceled to complete
settlement of underpayments to Tribes because of the San Carlos court
decision on contract support costs. This prolonged the ability of the
Tribes to be made whole, after carrying the burden of costs that were
supposed to be borne by the Federal Government. This is a clear example
of the prolonged disruption in federal-Tribal relations and service
delivery.
All of this causes stress and a sense of instability and
uncertainty in our Native communities. There is fear that with the RIFs
and future government shutdowns, we will continue to face these
challenges. Additionally, the IHS advanced appropriations were recently
put into question, and we fear that they are in danger in future
appropriations cycles. If advanced appropriations were not in place for
Indian Health care services, the circumstances discussed above would
have been far worse and indescribable.
Question 2. The Office of Management and Budget (OMB) Office of
Information and Regulatory Affairs (OIRA) memorandum issued on October
21, 2025, titled, ``Streamlining the Review of Deregulatory Actions''
directs agencies to bypass Tribal consultation required by executive
orders and laws, even when such deregulation involves Tribes. Combined
with RIFs and limited agency communication during the shutdown, the
OIRA memorandum further strains the federal-Tribal relationship by
undermining required consultations. Please describe how the OIRA
memorandum's directive to bypass Tribal consultation despite Executive
Order 13175 and longstanding trust and treaty obligations could impact
Tribal equities. Please also include specific examples of potential
harm and any legal or policy concerns.
Answer. The purpose behind the Executive Order 13175, in our view,
was to describe another means by which the Federal Government could
exercise its longstanding trust and treaty obligations to tribes and
all indigenous peoples of the United States. It was not creating a new
right but rather spelling out another process by which the Federal
government ensures that it respects and protects the rights of Tribes
and exercises its government-to-government obligations. Therefore,
bypassing the Executive Order 13175 does not remove those obligations
of the Federal Government towards Tribes and Native peoples. Those
obligations remain and precede any Executive Order. These rights exist
inherently and are recognized in the Constitution of the United States
and through longstanding federal law and jurisprudence.
This OIRA memorandum merely provides the agencies with an excuse to
potential violate those rights and to potentially harm important
resources of Tribes and Alaska Natives. This will certainly provide a
strain on the federal-tribal relationship now and in the immediate
future if actual applied to circumvent tribal and Alaska Native
consultation on federal actions that impact tribal and Alaska Native
lands, resources, and rights. I see this resulting in litigation,
legislation, and other legal and political harm that will take many
decades to overcome.
Question 3. Tribes are reporting delays to critical federal
activities needed for disaster relief, economic development, housing,
and infrastructure and energy projects, as well as suspending federal
procurement and contracting activities. What are the immediate impacts
of suspended agency activities on relief efforts in western Alaska?
Answer. The RIFs at FEMA and the ongoing government shutdown have
certainly slowed the response time of FEMA in providing disaster relief
in Alaska related to relief efforts in Western Alaska. These RIFs were
in place before the disaster, and we knew that they could be
potentially disastrous and impactful for our State and our rural
communities. This proved to be correct. Adding the government shutdown
only furthered these delays. As a result, the local nonprofits,
communities, and individuals had to step in as best as they could to
fill the void. This helped but was not where near the level that was
needed for the impact. Especially when two communities were completely
destroyed and thousands of people were displaced and homeless. There
was a need for housing, food, clothing, search and rescue, clean-up,
infrastructure and energy restoration, none of which was possible
without FEMA and other federal agency emergency relief and support.
Sadly, the need remains for many of the community members displaced by
these tragic events.
Question 3a. What impacts will the backlog of agency actions that
result from this extended shutdown have on Alaska Native Tribes, Alaska
Native Corporations, and Alaska Tribal organizations? For some of our
Tribes, Alaska Native Corporations, and Alaska Tribal organizations, we
lost contracts and construction opportunities for the year. Our
construction and infrastructure seasons are short. If grants or permits
are not approved on time, and payments are not made, then activities
related to projects or construction have to be delayed for another year
in many instances.
Answer. All of this causes such a sense of instability and
uncertainty in our Tribes, Alaska Native Corporations, Alaska Native
Organizations, and Native communities. There is fear that we will
continue to face these challenges with RIFs, eliminated agencies, and
future government shutdowns. Additionally, the IHS advanced
appropriations were recently put into question, and we fear that they
are in danger in future appropriations cycles, as discussed above.
Ultimately, this also makes it difficult for long-term planning and
hopes for the future.
Question 3b. What share of businesses and industry in Alaska Native
villages rely on federal procurement and contracting activities, and
what are the direct impacts of these disrupted activities on Tribal
employment and economies during the shutdown?
Answer. A significant portion of our Tribal governments exercise
self-governance through 638 compacts with the Federal government. The
same is true of the services that were formerly provided by the Indian
Health Service (IHS) in Alaska. These are nearly all provided through
compact or contract in Alaska. The impact of RIFs and government
shutdowns at the agencies that are supposed to implement these compacts
and contracts are difficult to measurable. We survived this shutdown.
If we continually operate with such uncertainty, our Tribes, Tribal
Members, and Alaska Native people will suffer from diminished and
inefficient services and lost employment opportunities.
In terms of economic development, Alaska Native Corporations and
Tribes are reliant on the 8(a) and small business contracting
opportunities, some more than others. I do not have a percentage or
share of industry available that is recent, but I am aware that in
2021, Alaska Native Corporations received $11 billion in contracting
revenue, employed over 8,000 Alaskans, and supported more than $6
billion in economic activity in the State. Lack of available
procurement and contracting staff at the Small Business Administration,
Department of Defense, or other agencies, would have a direct impact on
these activities and disrupt the economic opportunities of Alaska
Native Corporations and Tribes in Alaska, as well as employment
opportunities.
Thank you for the opportunity to provide answers to these follow-up
questions. Please do not hesitate to reach out to me if you have
further questions or require further clarification.
______
Response to Written Questions Submitted by Hon. Ben Ray Lujan to
Ben Mallott
Question 1. You discussed that certain Tribal health programs, such
as contract support costs and 105(l) lease payments, are still
vulnerable. How does the lack of advance appropriations for these
accounts affect day-to-day operations at Tribal health facilities in
Alaska?
Answer. As I stated in my testimony, while the Indian Health
Service (IHS) operations had the benefit of advance appropriations,
some of the IHS programs are not included and therefore not shielded or
protected during government shutdowns. These include Facilities
construction, facilities sanitation construction, the 501(l) lease
program, and contract support costs (which supports third party
services that cannot be provided by tribal health contractors
directly). There are at least 300 participants in the IHS 501(l) lease
program in Alaska. Without advance appropriations for these critical
programs, the Alaska Native health care providers must pull from other
resources and sources of funds--overall this impacts the services and
efficiencies of Native healthcare.
The IHS is legally and statutorily required to pay Contract Support
Costs (CSC) and 105(l) lease to Tribes and Tribal organizations
carrying out agreements under the Indian Self-Determination and
Education Assistance Act (ISDEAA). These payments are essential for
Tribes and Tribal Organizations (T/TOs) to operate the programs,
services, functions, and activities that have been compacted or
contracted from the federal government. Without advance appropriations,
these accounts remain vulnerable to federal funding lapses. As binding
obligations that IHS must pay to T/THOs carrying out ISDEAA agreements,
the Administration and Congress should include CSC and 105(l) lease
payments in the Advance Appropriation or the Office of Management and
Budget should be allowed to pay them under an ``exceptional
apportionment'' to ensure compliance with the law.
When CSC or 105(l) payments are delayed, T/TOs are forced to shift
funding from other programmatic areas that do receive advance
appropriations to cover mandatory administrative expenses. This shifts
away funding from important patient services and from facility
maintenance and utilities that are important for life-safety compliance
requirements. Timely and predictable CSC and 105(l) funding is
especially important for smaller T/TOs that have smaller economies of
scale and lack sufficient financial reserves to utilize during funding
gaps.
In sum, Tribal health programs will face cashflow issues and delays
in services, despite the advance appropriations, due to critical IHS
programs that are not included in such advance appropriations.
Ultimately, this could lead to a stop or delay in some services, which
will be detrimental to our people in so many ways, including lack of
efficient, safe, sanitary, and fully-operational health care and
facilities.
______
Response to Written Questions Submitted by Hon. Brian Schatz to
Pete Upton
Question 1. The 2025 federal government shutdown and the concurrent
agency Reductions in Force (RIFs) are creating unprecedented strains on
Tribes, compounding challenges that existed before the shutdown. These
strains include cancelled or frozen funds, hiring freezes, staffing
gaps from voluntary separations (including early retirements and
``fork-in-the-road'' offers), and breakdowns in communication with
agency staff.
a. What specific disruptions or harms (e.g., delayed program
funding, paused contracts, delayed consultations, halted services,
etc.) stem directly from the lapse in appropriations?
b. What additional or distinct challenges are Tribes experiencing
as a result of the agency RIFs occurring during the shutdown (e.g.,
permanent loss of key staff, reduced points of contact, diminished
institutional knowledge)?
c. Of the challenges facing Native communities during this period,
what proportion would you attribute primarily to the shutdown versus
the agency RIFs?
d. In what ways are the shutdown and the RIFs interacting to
intensify or prolong disruptions in federal-Tribal relations and
service delivery?
Answer. An organizational member of the newly-formed Coalition for
Tribal Sovereignty (CTS), the Native CDFI Network (NCN) has played a
key role--along with its CTS partners--in capturing and highlighting
the various impacts that RIFs and the government shutdown have had and
will have on Tribal Nations and communities. The permanent and
temporary loss of experienced staff across key federal agencies has
resulted in: abrupt endings to long-term relationships between staff
and specific Tribal Nations and Native-serving entities such as CDFIs;
delays in responding to time-sensitive correspondences; delays in
providing critical technical assistance, particularly with respect to
grant administration, compliance, and reporting (and CDFI certification
compliance); and a shortage of personnel with the requisite clearances
and expertise to review or approve federal funding drawdowns and
expenditures by Tribal Nations and Tribal-serving organizations. As CTS
points out, ``Indian Country is not opposed to reducing federal
government waste and improving federal government efficiency. However,
actions to achieve the Administration's goals must not interfere with
the United States' fulfillment of its trust and treaty obligations.''
Question 2. How has Tribal access to credit been impacted by recent
RIFs and funding decisions across the federal government? Please
include specific examples relating to credit needed to cover expenses
during a shutdown.
Answer. While the Native CDFI Network (NCN) has not been made aware
of any specific examples relating to credit needed to cover expenses
during the most recent government shutdown, generally when government
shutdowns do occur, they disproportionately impact Tribal communities
that typically are more heavily dependent on the uninterrupted flow of
federal resources than other communities across the United States. With
thousands of tribal citizen clients across the country, we see
firsthand the direct impacts that governments shutdowns have on Native
people, from reductions or delays in the Tribal and federal services
upon which they rely to the furloughing or loss of their jobs because
those positions depend heavily on federal dollars. This dynamic is
pervasive in Tribal communities in large part because, as the Brookings
Institution recently pointed out, ``most funding for Indian Country is
based on discretionary spending, rather than mandatory spending. When
Native American programs are funded with discretionary spending, it
means that Congress must affirmatively pass appropriations bills to
fund them every year, despite the perpetual nature of these promises to
Indian Country. If Congress does not pass a funding bill by the start
of the government fiscal year on October 1, discretionary payments and
services to Tribes and Native communities are halted, as is currently
happening during this government shutdown. In contrast, mandatory
spending programs, such as Social Security and Medicare, provide
guaranteed benefits to recipients based on certain criteria. These
permanently authorized programs are unaffected by government shutdowns
or limited by annual appropriations.'' \1\ The federal government
cannot effectively meet its trust and treaty obligations to Tribal
Nations and their citizens unless and until the federal funding streams
upon which they rely are transitioned to advance appropriations over
the short-term and converted to mandatory spending by Congress over the
long run so that Indian Country is insulated against the severe harms
caused by future government shutdowns.
---------------------------------------------------------------------------
\1\ Robert Maxim et al., ``The government shutdown shows the need
to reform how the federal government funds Native American Tribes and
communities,'' Brookings Institution, October 28, 2025 https://
www.brookings.edu/articles/the-government-shutdown-shows-the-need-to-
reform-how-the-federal-government-funds-native-american-tribes-and-
communities/.
Question 3. The Office of Management and Budget (OMB) Office of
Information and Regulatory Affairs (OIRA) memorandum issued on October
21, 2025, titled, ``Streamlining the Review of Deregulatory Actions''
directs agencies to bypass Tribal consultation required by executive
orders and laws, even when such deregulation involves Tribes. Combined
with RIFs and limited agency communication during the shutdown, the
OIRA memorandum further strains the federal-Tribal relationship by
undermining required consultations. a. Please describe how the OIRA
memorandum's directive to bypass Tribal consultation despite Executive
Order 13175 and longstanding trust and treaty obligations could impact
Tribal equities. Please also include specific examples of potential
harm and any legal or policy concerns.
Answer. The Native CDFI Network and the Native CDFIs we serve
across the country are greatly concerned about this OIRA memorandum,
particularly as it pertains to deregulatory actions being considered
and/or taken by the U.S. Department of the Treasury, U.S. Department of
Agriculture, U.S. Department of Housing and Urban Development, and the
Small Business Administration. Implementation of this memorandum by
these agencies and others essentially will eviscerate the genuine,
nation-to-nation consultation between the federal government and Tribal
Nations mandated by Executive Order 13175, and inevitably will result
in new or weakened regulations that harm the economic and community
development efforts of Tribal Nations and those entities--like Native
CDFIs--that serve Tribal communities precisely because those efforts
and the sovereign goals they seek to achieve were not considered or
were actively ignored in the development of those regulations. Across
the federal government, the voice of Indian Country will be
structurally excluded from federal decisionmaking, which constitutes a
direct violation of the federal government's trust and treaty
obligations to Tribal Nations.
______
Response to Written Questions Submitted by Hon. Ben Ray Lujan to
Pete Upton
Question 1. Our office has heard from Tribal community development
organizations, including the New Mexico-based housing organization
Homewise, about the critical role that the CDFI Fund plays in providing
seed capital and unique financing opportunities in Tribal communities.
Given the recent announcement that all CDFI Fund staff will be subject
to a reduction in force (RIF) effective December 13th, 2025, how do you
anticipate these staffing reductions will affect the ability of Native
CDFIs to serve their communities, deploy capital, and support economic
development projects?
Answer. While H.R. 5371, the Continuing Resolution (CR) that ended
the recent government shutdown, reversed the RIF action of October 10,
2025 that terminated all staff of the CDFI Fund, said CR only protects
the CDFI Fund staff from further mass personnel action through January
30, 2026. The CR also didn't neutralize Treasury and OMB's rationale
for terminating the CDFI Fund staff as part of its plan ``to implement
the abolishment of the Community Development Financial Institutions
(CDFI) Fund, which is based upon the Department of the Treasury
determination that its programs, projects, and activities do not align
with the President's priorities.''
If the RIF of the CDFI Fund staff is reinstituted after January 30,
2026, this action and the ensuing abolishment of the CDFI Fund will
cause severe immediate and long-term harm to Native CDFIs' ability to
serve the growing small business, homeownership, agricultural, and
consumer lending needs of Tribal communities, needs that have long been
ignored by mainstream banking institutions.
Possessing an average asset size is just $5.7 million dollars, \2\
Native CDFIs rely heavily on Native American CDFI Assistance (NACA)
Program Financial Assistance (FA) and Technical Assistance (TA) awards
from the CDFI Fund to serve Tribal communities and scale their
operations to meet their growing needs. In part because of the
government shutdown, as of this writing FY 2025 Congressionally
appropriated funding for the NACA Program has yet to be disbursed, with
no clear timetable for if and when it will be. If the CDFI Fund staff
is subjected to another RIF action early next year, it will endanger
this FY 2025 funding as well as the FY 2026 funding for the NACA
Program that Congress is currently working to finalize.
---------------------------------------------------------------------------
\2\ Center for Indian Country Development, Understanding the Native
CDFI landscape: A Center for Indian Country Development survey
quantifies the shared practices and distinctive characteristics of
Native Community Development Financial Institutions, Federal Reserve
Bank of Minneapolis, September 4, 2025 https://www.minneapolisfed.org/
article/2025/understanding-the-native-cdfi-landscape#:-
:text=Experience.,average%20size%20of%20$5.7%20million.
---------------------------------------------------------------------------
Another potential RIF and the looming abolishment of the Fund also
spell the demise of the New Markets Tax Credits Program, a key
financing tool that cultivates private investment in vital economic and
community development projects on tribal lands. Without Fund staff to
administer it, the latest double round of New Markets Tax Credits won't
be allocated in part to Native Community Development Entities and other
CDEs serving Indian Country.
Last but not least, terminating the CDFI Fund staff and abolishing
the Fund will end the federal process for certifying CDFIs--an official
stamp of approval Native CDFIs use to secure significant investments
from non-federal sources. This will create a cascading effect that
dramatically reduces the flow of capital for farm, ranch, and other
business development; housing and homeownership; and community
infrastructure projects when Indian Country's need for such capital
increases substantially with each passing year.
______
Response to Written Questions Submitted by Hon. Brian Schatz to
Kerry D. Bird
Question 1. The 2025 federal government shutdown and the concurrent
agency Reductions in Force (RIFs) are creating unprecedented strains on
Tribes, compounding challenges that existed before the shutdown. These
strains include cancelled or frozen funds, hiring freezes, staffing
gaps from voluntary separations (including early retirements and
``fork-in-the road'' offers), and breakdowns in communication with
agency staff. What specific disruptions or harms (e.g., delayed program
funding, paused contracts, delayed consultations, halted services,
etc.) stem directly from the lapse in appropriations?
Answer. The lapse in appropriations directly impacts Native
communities and schools across the country, affecting both day-to-day
operations in Tribal communities and critical functions at the federal
level. During the 2025 shutdown, Tribal program administrators and
schools were unable to reach program officers and did not receive
technical assistance.
On the ground, delayed program funding and service delays prevented
education providers, school districts, and Tribes from providing
essential services to Native youth. Unfortunately, in some cases, we
see some programs must come to a complete standstill. Many tribes have
reported that during the shutdown, they needed to look for or lean on
external funding to fill the gap where federal funding has been
disrupted. Programs like Head Start were presented with a series of
issues, predominantly concerning the status of new grant timelines, and
staff were unable to access any sort of technical assistance. This may
prove to have long-lasting effects that pose issues for early childhood
care providers and our Native children. In the future, these effects
may be mitigated through means of forward funding or advance
appropriations.
Question 1a. What additional or distinct challenges are Tribes
experiencing as a result of the agency RIFs occurring during the
shutdown (e.g., permanent loss of key staff, reduced points of contact,
diminished institutional knowledge)?
Answer. If the RIFs imposed on Tribal-serving, Tribal eligible
programs, and offices were to remain in effect--we would see immense
disruption on the ground throughout Indian Country. This would result
in more than a delay in services, but rather a complete dissolution of
the government's trust and treaty responsibilities. Without
knowledgeable staff who provide technical assistance, guidance, and
release millions of dollars in funding to school districts, Tribes, and
other native-serving institutions every year. Although RIFs were
rescinded when the government reopened, we worry that staff are at risk
while their programs are being transferred. In addition to the
challenges listed, the RIFs also are creating delays in getting
Congress approved funded programs out. For instances, in the Department
of Education, while Office of Indian Education offices are back to
work, many of those responsible for releasing grants had previously
been reduced. This delays the release of grants and programs that meet
the needs of tribal communities. Since OIE staff cannot release on
their own, they are stuck waiting for approval and the release of grant
programs, delaying the ability for communities to efficient, in the
Department of Education, while Office of Indian Education offices are
back to work, many of those responsible for releasing grants have been
reduced. This delays the release of grants and programs that meet the
needs of tribal communities. Since OIE staff cannot release on their
own, they are stuck waiting for approval and the release of grant
programs, delaying the ability for communities to efficiently plan.
Question 1b. Of the challenges facing Native communities during
this period, what proportion would you attribute primarily to the
shutdown versus the agency RIFs?
Answer. Our understanding of Native communities' experience with
government shutdowns is a story pieced together over time. Throughout
the years, we see that a lapse in appropriations delays discretionary
funding to school districts on and near Tribal lands, particularly
regarding Impact Aid. These experiences can be measured and compared
from shutdown to shutdown, with varying Tribal capacities for accessing
reserves or other resources. On the other hand, the Reductions in Force
(RIFs) made within the Department of Education created an additional
layer of disruption for Tribes and Native communities. While these
communities experienced funding uncertainty and concerns with food
security, they were also upright advocating for the life of these
programs. If the RIFs were to stand, they would extend shutdown effects
and inherently limit technical assistance and leave communication lines
unmonitored. Reducing personnel permanently would erode the nation-to-
nation relationship and negate the federal government's trust and
treaty obligation to provide education for those who have and retain
their treaty rights. We caught a glimpse of what this would look like
during the shutdown. The lack of contact, program uncertainty, and
delays in funding created serious confusion in Native communities.
Question 1c. In what ways are the shutdown and the RIFs interacting
to intensify or prolong disruptions in federal-Tribal relations and
service delivery?
Answer. Federal government shutdowns negate trust and treaty
responsibilities, and RIFs would blatantly restrict the government's
ability to fulfill their treaty obligations. Initially, even the
employees were unaware of the RIFs within the Office of Indian
Education and the Office of Impact Aid, it took Congressional outreach
to ensure ED provided clarity in writing of the intended RIFs. This
inflicted a great deal of confusion with Tribes, schools, and federal
employees. Reducing the workforce in the Office of Indian Education
sets a negative precedent with Tribal Nations that retracts decades of
trust building the federal government has done with its tribal
partners. While shutdowns alone are difficult for Tribes to weather,
advocating against RIFs has since limited capacity across the board.
However, what is most clear is that Tribal leaders need to be aware of
what is happening with these programs. Tribes have a right to be
consulted with and to consent to changes that directly affect Tribal
interests, citizens, and their rights.
Question 2. Could forward funding or advance appropriations for
Impact Aid, Title VI Indian Education, and Johnson-O'Malley programs
better protect schools in future shutdowns? If so, are there any other
federal education programs that would benefit from forward funding or
advance appropriations?
Answer. Forward funding and advance appropriations are mechanisms
that would shield Tribal-serving schools, public schools, and Native
students from future shutdowns. Releasing funding prior to annual
appropriations allows schools to plan without interruption. There is a
clear and successful precedent for this approach. Advance
appropriations for Indian Health Service (IHS) have helped ensure
continuity of care for Tribal citizens during shutdowns, preventing
interruptions in essential services. Applying this same framework to
Indian education programs would similarly protect Native students by
ensuring uninterrupted access to the classroom, staff, and nutritious
meals.
Forward funding amounts are dispersed early in the fiscal year
intended to be used for the following fiscal year and for the purpose
of education--this timeline is closely aligned with the school year.
Bureau of Indian Education programs, such as Student Transportation and
Indian School Equalization Program (ISEP) are among some of the
programs that would benefit from forward funding.
One of the most effective ways these funding mechanisms would help
Tribes would be to begin with placing Impact Aid on an advance
appropriations schedule. In addition to these programs, other formula-
based education programs such as Title I, Part A, and the Individuals
with Disabilities Education Act (IDEA) would also benefit from forward
funding due to their role in staffing and essential student services.
Question 3. What are states, Tribes, and Native-serving schools
doing to weather the funding pauses, communication lapses, and RIFs at
the Department of Education?
Answer. States, Tribes and Native-serving schools weathered through
the 43-day shutdown at differing levels of capacity. Some Tribes were
able to pull from their reserves to operate and support programs while
others may have considered taking out loans or lines of credit.
However, losing contact and technical assistance has left Tribes and
early education providers in the dark regarding upcoming deadlines and
best practices for compliance. Although, there have been cases in which
Tribal Head Starts have had no other choice but to close their doors
until funding becomes available.
While many of the services that educators, schools, and Tribes
access from the Department of Education became unavailable due to
furloughs, Tribes immediately banded together once it was confirmed
that the staff had been terminated. Tribes know that without staff
administering funding and providing technical support, schools will not
receive an adequate amount of support to supply students with quality
resources and opportunities.
Question 4. On November 1, at least 12 Tribal Head Start grantees
with 599 staff serving 2,434 children across 8 states (AZ, CA, MI, MN,
MT, NM, OK, WA) were unable to draw down funds. If known, what were the
impacts to these programs, and did they have to scale back staff,
services, or other functions because of the prolonged shutdown?
Answer. Tribal Head Start staff and students were deeply affected
by the lack of technical assistance and funding gaps. The 12 Tribal
Head Start grantees awarded on November 1 did not receive funding when
it was expected and were forced to consider using tribal funding,
closing their doors, or drawing back services, such as transportation.
These decisions were made depending on the budgetary capacity of Tribal
Nations participating in this latest award cycle.
Question 5. How have Tribal Colleges and Universities (TCUs) and
their students been impacted by the shutdown and RIFs?
Answer. This question would be best answered by our colleagues at
the American Indian Higher Education Consortium (AIHEC).
Question 5a. How are Pell Grant disbursements impacting TCU
students and campus services?
Answer. This question would be best answered by our colleagues at
the American Indian Higher Education Consortium (AIHEC).
Question 6. Despite forward funding, some Bureau of Indian
Education (BIE)-funded schools are reporting delays in Indian School
Equalization Program (ISEP) funds. From your perspective, is the
primary cause of this delay staffing furloughs, RIFs, or hiring
freezes, or staff functions being scaled back during the shutdown?
Bureau funded schools have experienced delayed ISEP funding despite
forward funding because the BIE simultaneously has an active hiring
freeze and an extreme staffing deficit. This may have been further
exasperated by furloughing during the shutdown. However, considering
that forward funding takes place during the beginning of July, it would
be fair to say that this is a result of the hiring freeze that is in
place per the Presidential Memorandum issued on January 15, 2025. It is
NIEA's stance that the BIE should be able to hire within the office,
but also to exempt teachers applying at BIE schools from the hiring
freeze.
Question 7. The Office of Management and Budget (OMB) Office of
Information and Regulatory Affairs (OIRA) memorandum issued on October
21, 2025, titled, ``Streamlining the Review of Deregulatory Actions''
directs agencies to bypass Tribal consultation required by executive
orders and laws, even when such deregulation involves Tribes. Combined
with RIFs and limited agency communication during the shutdown, the
OIRA memorandum further strains the federal-Tribal relationship by
undermining required consultations.
Please describe how the OIRA memorandum's directive to bypass
Tribal consultation despite Executive Order 13175 and longstanding
trust and treaty obligations could impact Tribal equities. Please also
include specific examples of potential harm, and any legal or policy
concerns.
Answer. The October 21, 2025, OIRA memorandum to bypass Tribal
consultation reinforces a dangerous precedent and poses a serious risk
to Tribal sovereignty and self-determination. Overall, it is eroding
the government's trust and treaty responsibilities. Tribal consultation
is not an afterthought, rather it is a statutory requirement. Negating
this requirement opens the federal government and its agencies up to
potential legal risks. Within education and social programs more
specifically, a lack of consultation results in less meaningful
engagement, weakened trust, and withering institutional strength.
______
Response to Written Questions Submitted by Hon. Ben Ray Lujan to
Kerry D. Bird
Question 1. Your testimony makes it clear that the shutdown effects
on Tribal Head Start programs are immediate and devastating. What are
you hearing from Tribal education providers about the choices they are
being forced to make?
Answer. Tribal education providers are letting us know that the
shutdown has made it extremely difficult to manage operations and has
slowed decisionmaking. Head Start grantees did not have access to
training and technical assistance for upcoming refunding applications
deadlines, carryover requests, and general guidance. In absence of any
guidance from their federal project officers, Head Start directors
worried their applications would be late or incomplete, and they
worried that they would not be in compliance.
It is impossible for new grantees and new staff to remain in
compliance throughout the shutdown without access to any of the
comprehensive services provided by the federal government. We have
heard some have turned to external consultants to fill in the gaps.
While on the other hand, some cannot maintain operations altogether.
Question 2. The Ramah Navajo School Board, Alamo Navajo School
Board, and San Felipe Pueblo have indicated that their Head Start grant
renewal coincides with the ongoing shutdown, threatening a complete
halt in services. If Tribal grantees, such as Ramah, Alamo and San
Felipe Pueblo, use their own investment or non-federal funds to sustain
programs during a shutdown, what challenges do they face to being
reimbursed once the lapse in appropriations ceases, or to accessing
other sources of capital to cover short-term costs?
Answer. The Ramah Navajo School Board, Alamo Navajo School Board,
and San Felipe Pueblo face significant financial risks while using
their own investments to fill funding gaps. Once the lapse in
appropriations ceases, it is not likely that these grantees will be
reimbursed if they have used other sources of funding to cover the gap
in costs. Using Tribal funds to keep schools in service ultimately
takes money away from other necessary services.
Question 3. In your testimony, you discussed the importance of
Impact Aid Program. Given the current disruption in funding, how are
school districts that rely on Impact Aid coping financially with the
lack of funding flow, and what short-term relief options, if any are
available to them to maintain essential staff and services?
Answer. When funds are not appropriated on time, we see that
Impacted Schools face some of the most severe funding deficits across
the country. In these cases, taking out lines of credit or loans often
results in long-term financial burdens. Tribes and school districts
that may turn to these options are often rural and economically
constrained and are simply not in a position to absorb the shock of
delayed Impacted funds. Some school districts, like Todd County in
South Dakota, rely on Impact Aid for nearly 40 percent of its annual
operating budget. To cope with funding gaps at the beginning of the
fiscal year, we see that schools may draw down their reserves, cutting
spending elsewhere, and limiting services. If Congress decides to
forward fund Impacted Schools on reservation lands, they will receive
more predictable funding streams and be shielded from future shutdowns.
Question 4. With the recent Reductions in Force (RIFs) within the
Office of Impact Aid, leaving only limited capacity to process payments
and conduct compliance reviews, how might these staffing reductions and
resulting delays affect educational quality, staffing stability, and
the delivery of student support services--particularly for Native
students in rural or high need districts?
Answer. Reductions in Force (RIFs) within the Office of Impact Aid
have sharply limited federal capacity to process payments, review
applications, and conduct compliance oversight. Many districts,
especially those with high percentages of Native students, are uniquely
dependent on Impact Aid to meet basic operational needs. Staffing
reductions at the federal level therefore create systemic, cascading
harm at the local level. Impact Aid can make up the majority of a
school's operating budget, and without it arriving upon the beginning
of a fiscal year, school districts may begin to consider borrowing or
taking loans to continue operating and providing services.
Question 5. How have early childhood education providers, schools,
and Tribal Colleges and Universities dealt with lapses or delays in
nutrition program benefits for students during the shutdown?
Answer. Native families experiencing food insecurity receiving
benefits from programs like SNAP and WIC lean harder on early childhood
education providers, schools, and other institutions to provide extra
support during lapses or delays in funding. However, institutions like
Head Start have not received any additional funding to provide support
for families amidst the shutdown. Schools are maintaining focus on
providing healthy and nutritious meals and snacks during school hours.
With delayed SNAP benefits, some Tribes turn to subsistence hunting
while others fill in the gaps with Tribal reserve funding.