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Proposed cuts to Native-serving programs, staffing losses across federal agencies and growing delays in tribal project approvals dominated a Senate Indian Affairs Committee budget hearing Wednesday, as lawmakers from both parties questioned whether the federal government can continue meeting its treaty and trust obligations to tribes.

The hearing focused on the administration’s fiscal year 2027 request reduces the Bureau of Indian Affairs from $2.77 billion to $2.03 billion, a cut of $743.7 million. It also reduces the Bureau of Indian Education from $1.37 billion to $933 million, a drop of $436.9 million. The request eliminates welfare assistance, tribal climate resilience programs, and most tribal college funding. It also reduces support for 638 contracts and compacts and cuts funding for tribal courts, law enforcement, and human services.

Senators said the scale of the reductions marks one of the sharpest proposed pullbacks in years. Sen. Lisa Murkowski (R‑Alaska), chair of the committee, said the cuts come as tribes already struggle to get answers from federal agencies and raise questions about whether the government can meet its basic responsibilities.

“This is a proposed reduction of more than one-third to the operation of Indian programs,” Murkowski said. “I’m concerned about it.”

Sen. Brian Schatz (D‑Hawaii) said the request does not align with federal treaty and trust requirements and would strain programs that are already stretched thin.

“It falls short of its trust and treaty obligations to American Indians, Native Hawaiians, and Alaska Natives,” Schatz said. “This is not a budget that keeps faith with the promises that were made.”

Schatz said tribes are already dealing with the fallout from agency reorganizations and staffing losses. He said the loss of long-standing federal contacts has slowed routine work across Indian Country and left tribes without reliable agency support.

“Tribes have lost contacts and relationships they spent years forming as regional offices close,” Schatz said. “People cannot get answers because the people they used to call are gone.”

The discussion also focused on self-determination. Senators said tribes cannot effectively operate their own programs if federal agencies cut the funding that makes those programs possible. They also said tribes cannot plan long-term projects when federal processes slow or stall.

Sen. Alan Armstrong (R‑Okla.) said tribes trying to develop energy resources on trust land face slow and unpredictable federal reviews. He pointed to a newly signed Tribal Energy Resource Agreement between the Southern Ute Indian Tribe and the Department of the Interior that allows the tribe to pre‑approve many of its own energy projects without waiting for federal signoff.

“If tribes want to develop their own energy resources, the federal government shouldn’t be the obstacle,” Armstrong said. “Washington should not be the reason a project dies on the vine.”

Sen. Steve Daines (R‑Mon.) raised similar concerns about water rights settlements and infrastructure delays affecting tribal communities across Montana.

“A water settlement isn’t a gift,” Daines said. “It’s a federal obligation.”

Assistant Secretary for Indian Affairs Billy Kirkland said the administration’s request reflects an effort to prioritize programs that directly support tribal decision making and reduce bureaucratic delays.

“Tribal nations want a federal partner that is responsive, accountable, and focused on results,” Kirkland said. “We are trying to make sure the dollars we have go to the places that make the biggest difference.”

Indian Health Service Chief of Staff Clayton Fulton said IHS faces similar operational pressures as more programs transition to tribal control. He said the agency is trying to modernize its systems to support self-determination and keep pace with the needs of Native patients.

“Our current structure is not sustainable as more and more programs become operated by tribes,” Fulton said. “We are trying to modernize the system so tribes have the support they need to run their own health care.”

Fulton said IHS facilities remain in poor condition and require major investment. He said advance appropriations helped stabilize care delivery during the 2025 shutdown and remain important as the agency works through its restructuring efforts.

The committee will continue reviewing the fiscal year 2027 request as appropriators begin work on next year’s spending bills.

About The Author
Chez Oxendine
Staff Writer
Chez Oxendine (Lumbee-Cheraw) is a staff writer for Tribal Business News. Based in Oklahoma, he focuses on broadband, Indigenous entrepreneurs, and federal policy. His journalism has been featured in Native News Online, Fort Gibson Times, Muskogee Phoenix, Baconian Magazine, and Oklahoma Magazine, among others.
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