New York’s Grand Island is the site of a 207-acre parcel of land recently taken into trust by the Seneca Nation. The parcel is now the subject of a state suit attempting to reassert state jurisdiction over it. Credit: Andre Carrotflower, Wikimedia / CC-BY-SA-4.0

New York has sued the Interior Department over a decision to place 207 acres of Seneca Nation land on Grand Island, near Buffalo, under federal protection. The state argues that the designation limits its authority to tax the property and enforce environmental and land-use laws. 

The complaint, filed Nov. 6 in U.S. District Court for the Western District of New York, challenges a Feb. 24 Interior Department determination that the property qualifies for restricted fee status under the Seneca Nation Settlement Act of 1990.

Interior found that the parcel met the law’s geographic and funding requirements, according to the complaint. New York argues that eligible settlement funds were exhausted years ago and 

Grand Island falls outside the geographic areas covered by the statute.

According to the complaint, the property was conveyed to the Seneca Nation in December 2025 for $1 in a transaction recorded as a land donation. New York argues that the transaction cannot qualify as an acquisition made with settlement funds. Interior relied on evidence that the $1 payment came from an account the nation identified as holding settlement funds, according to the filing. 

The state also alleges Interior failed to address its objections, including requests for an accounting of settlement funds. It also argues the decision conflicts with provisions of the Seneca Nation-State gaming compact governing use of remaining settlement funds.

The lawsuit asks the court to vacate the federal decision, declare the parcel ineligible for restricted fee status and find that settlement-act land acquisition funds have been exhausted, preventing future use of the law’s expedited land-acquisition process.

Seneca Nation President J. Conrad Seneca condemned the lawsuit, saying that it threatens the nation’s sovereignty and ability to support its citizens.

“The Governor talks about building a productive relationship with the Seneca Nation, but we found out about her latest threat to our sovereignty and attempt to take our lands through the media,” Seneca said in a statement.

He described the lawsuit as “Governor Hochul’s latest attempt to extinguish us and our economic ability to serve our people.”

Ryan Whalen, a spokesperson for Gov. Kathy Hochul, said the governor respects tribal sovereignty but also has an obligation to ensure development follows applicable laws and oversight.

“The State believes the Department of the Interior incorrectly qualified these parcels for sovereignty status, and we are confident the courts will agree,” Whalen said in a statement.

Brian Edwards contributed reporting.

Chez Oxendine (Lumbee-Cheraw) is a staff writer for Tribal Business News covering Native agriculture, tribal broadband, energy and real estate.