Impacts to Tribal Nations in the One Big Beautiful Bill Act

07/15/2025

Washington, D.C. – On July 4, 2025, President Trump signed the One Big Beautiful Bill Act, H.R. 1 (the “Act”) into law.  The One Big Beautiful Bill Act is a sweeping domestic policy package focused on tax cuts, border enforcement, and major cuts to Medicaid and the Supplemental Nutrition Assistance Program (“SNAP”).  The Act passed Congress as a budget reconciliation bill which means that it only needed a simple majority vote to pass.  The Republicans passed the Act through Congress by just a few votes.  No Democrats voted for the Act and a few Republicans voted against the Act.

The One Big Beautiful Bill Act includes important tribal provisions, but does not include the significant funding cuts that President Trump has proposed in his FY 2026 budget.  Congress has started work on the FY 2026 budget and will be deciding on Bureau of Indian Affairs Federal government funding over the next few months.

Below is a summary of the provisions in the One Big Beautiful Bill impacting Tribes including important exemptions for Tribes and Tribal individuals from some of the Act’s most significant impacts.  

Beneficial Exemptions and Tax Benefits for Tribal Nations and Individuals:

Individual Tribal Members are Exempt from New Medicaid and SNAP Work Requirements

• Indians, Urban Indians, and California Indians are exempt from the Act’s new work requirements for many Medicaid recipients.

• Indians, Urban Indians, and California Indians are exempt from the Act’s increased SNAP work requirements.

Taxation Provisions 

• The Act includes “the Tribal Adoption Tax Parity Act” which provides parity between state and Tribal governments in determining whether an adoption qualifies as "special needs" and is eligible for the full adoption tax credit.

• The Act permanently extends New Market Tax Credits (“NMTCs”) allowing Community Development Financial Institutions (“CDFIs”) to allocate $5 billion of NMTCs for each year.  NMTC can be a source of investment funding in Indian Country.

• Low Income Housing Tax Credits (“LIHTCs”) were also permanently extended.  Like NMTCs, LIHTCs are not specific to Tribes, but Tribes have utilized LIHTCs to attract investors to help develop affordable housing in Indian Country.

Negative Impacts on Tribal Nations and Individuals: 

Medicaid Cuts May Impact Tribal Healthcare

• The Act cuts Medicaid funding by about $1 trillion, and this will have an impact on Tribal health services.  In recent years, Medicaid has accounted for about two-thirds of third-party revenue for Tribal health providers.  This is a critical source of revenue for Indian Health Service and has become a lifeline for Tribal health facilities due to the underfunding of the Indian Health Service.

• Despite this impact, Members of Congress have cited the Rural Health Transformation Program included in the Act as a possible way to help fund rural hospitals including Tribally operated clinics.  It is unclear whether Tribes will be able to access this Program and whether it can replace Medicaid funding.

Student Loan Changes will Impact some Native Students

• The Act establishes a $200,000 loan limit and gives less flexibility on loan repayment.  It gives less flexibility for students who experience financial hardship.  The law also only allows full-time students to be eligible for Pell Grants. 

Program Rescissions that will occur include:

• Tribal Energy Loan Program funds will be rescinded, and the program will end.

• The National Education and Obesity Prevention Grant Program, otherwise known as SNAP-ED will end in 2025.

• The State and Private Forestry Conservation Program, which included Tribes and provided $1.5 billion for tree planting and related activities, has been rescinded. 

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.