Federal Fiscal Year 2026 Budget Proposal sees reductions and eliminations for tribal funding

Written By: Braden Harper

(WASHINGTON D.C.) The federal government is looking to make changes to the 2026 Fiscal Year budget, many affecting federally-recognized Tribes, including the Muscogee (Creek) Nation. The Trump Administration claims that the proposed recommendations for discretionary funding levels are to “restore confidence in America’s fiscal management” and that FY 2025 spending was “found to be laden with spending contrary to the needs of ordinary, working Americans.” The recommendations propose a $163 billion budget for FY 2026, 22.6 percent less than FY 2025. The proposed budget changes to programs explicitly serving Native American citizens of federally-recognized Tribes is over an estimated $2 billion. Below is a list of these programs.

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Department of the Interior Cuts

If the FY 2026 budget proposal is approved by Congress, the Department of the Interior will see the brunt of Tribal funding cuts. For the Bureau of Indian Affairs Programs that Support Tribal Self-Governance and Tribal Communities, the budget will eliminate the Indian Guaranteed Loan program for Tribal business development. The proposal claims it is “duplicative” of other programs that offer similar loans. It will terminate the Indian Land Consolidation Program, which the administration argues is “ineffective.” The budget will also reduce funding for roads, housing, and social services in order to focus on what it defines as “core priorities”, such as law enforcement. The total proposed budget reduction for the bureau is $617 million.

BIA Public Safety and Justice will be streamlined by “reducing redundancies and inefficiencies with other law enforcement agencies.” Tribal governments will have the option to apply for grants from the Department of Justice or the Department of Health Services for law enforcement and emergency services. The cuts are estimated to save $107 million.

The Bureau of Indian Education Construction, which oversees school facility management and construction, will be affected as well. The budget proposal claims that it has had poor program management, cost overruns, and delays in projects. The estimated reduction will cut $187 million.

Listed under the Department of Agriculture is Rural Development Programs. These programs include specialty water grants and earmarks that are funded if the local tax base can not support loans. The budget will eliminate funding that is “duplicative” and “too small to have a macro-economic impact.” This will include rural business programs, housing loans and grants as well as telecommunication loans. It is estimated these programs will see a reduction of $721 million.

Department of Housing and Urban Development Reductions

Within the Department of Housing and Urban Development the Native American Programs and Native Hawaiian Housing Block Grant will face cuts. Competitive grant programs will be eliminated along with the Native Hawaiian Housing Block Grant. The estimated cuts are $479 million.

Department of Justice Reductions

According to the budget proposal, nearly 40 DOJ grant programs that are “duplicative and unnecessary” will receive cuts that affect Indigenous populations. These include programs that “fail to reduce violent crime or are weaponized against the American People.” The budget proposal claims the DOJ provided $6 million grants to an organization that focused on “equity and liberation resources for Black, Indigenous, People of Color and White Allies.” The estimated cuts for this program are over $101 million.

Small Agency Eliminations

Listed on small agency eliminations included the Office of Navajo and Hopi Indian Relocation (ONHIR), a 50 year program that began as a way to facilitate the relocation of Navajo and Hopi people living on each other’s lands. If the budget is approved, the office will be closed, and residual responsibilities will be transferred to other agencies. The closure of this office will be part of a $2 million reduction.

Environmental Protection Agency Increases

If signed into law, the budget proposal will increase funding to the Indian Reservation Drinking Water Program. The budget will increase funding for Tribes to retain access to drinking water and wastewater infrastructure on federal lands. The budget will increase by $27 million for $31 million.

In response to the Trump Administration’s proposed budget for FY 2026, MCN Principal Chief David Hill provided the following statement:

Historically, the federal commitment to fully meeting trust responsibility with tribes hasn’t always been there. So of course, when there are proposed cuts to crucial areas, it is alarming. But we also realize this is a proposed budget that must still go through a process. And we have faith in our allies on both sides of the aisle to give us the opportunity to advocate for these crucial programs and for the U.S. to uphold its responsibilities to the Nation. We are now in the process of identifying key areas that may be affected by proposed cuts in the budget, so that we can plan an effective communication strategy to lawmakers.

The proposed budget will go on through the appropriations process in Congress. The House and Senate Appropriations Committees will make a final decision through summer markups.