Federal Court Upholds Fee-to-Trust Process

12/10/2025

ONEIDA, WISCONSIN – In a significant win for Tribal sovereignty and the restoration of Tribal land bases, the U.S. District Court for the Eastern District of Wisconsin issued a Decision and Order on December 2, 2025 affirming the Department of the Interior’s (DOI) decision to take 499 acres of land into trust for the Oneida Nation under Section 5 of the Indian Reorganization Act (IRA).  The court emphatically denied the Village of Hobart’s motion for summary judgment, thereby upholding the IRA’s fee-to-trust mechanism against sweeping constitutional and administrative challenges.  This ruling represents a critical affirmation of the federal government’s trust responsibility and Congress’s plenary power over Indian affairs, reinforcing the foundation of Tribal land acquisition nationwide.  The court’s decision can be found here.

Legally, the decision sets important and favorable precedents for Tribes on two major fronts.  First, the court definitively rejected the Village’s assertion that Section 5 of the IRA is an unconstitutional delegation of power (the nondelegation doctrine) or that it exceeds Congress’s authority under the Indian Commerce Clause.  Consistent with other circuit courts, the Eastern District upheld the IRA’s constitutionality, securing the broad discretion afforded to the Secretary of the Interior to acquire land “for the purpose of providing land for Indians.”  This validation ensures the IRA remains a powerful and legally sound tool for Tribes seeking to restore their homelands and rebuild their economies.  Second, the court dismissed the Village’s claims of administrative bias and due process violations under the Administrative Procedures Act, including challenges to the BIA’s funding-sharing mechanisms like the Midwest Memorandum of Understanding or MOU, designed to expedite the fee-to-trust process.  The court validated the Regional Director’s independent review and affirmed that the agency’s consideration of regulatory factors was not arbitrary or capricious.

The implications for Tribes are clear and significant.  This ruling provides a strong judicial endorsement of the BIA’s current, streamlined administrative procedures, signaling that efforts to accelerate fee-to-trust applications are legally permissible and do not constitute bias.  For the Oneida Nation and Tribes across the country, this victory reaffirms the stability of the fee-to-trust process, strengthening tribal governmental authority, enhancing jurisdictional clarity, and securing vital resources for economic development and self-governance.

Skenandore Wilson LLP is dedicated to the representation of Tribal Nations, Tribal entities, and individual Tribal members throughout Indian Country.  Our mission is to support and advance the sovereignty, self-sufficiency, and self-governance of our Tribal clients.  To learn more about how we can assist you, contact us at info@skenandorewilson.com or 608-608-1210.