Senate Appropriations Committee Rejects President Trump's Proposed Budget, but Provides Less Funding for Indian Programs than House Appropriations Committee

08/05/2025

Washington, D.C. – On July 24, 2025, the Senate Appropriations Committee approved its Fiscal Year (FY) 2026 Appropriations Bill for Interior, Environment, and Related Agencies.  The bill is a response to the President’s proposed budget and includes appropriations for the Bureau of Indian Affairs (BIA), Indian Health Service (IHS), Environmental Protection Agency (EPA), and more.  The bill now goes to the full Senate for consideration.  Any differences with the bill passed by the House will need to be resolved prior to final passage by Congress.

Overall, the Senate Appropriations Committee rejected President Trump’s proposed budget as did the House Appropriations Committee, but the Senate version provides less funding for Indian programs than the House version.  The difference comes primarily from support in the Senate for programs at EPA which must be balanced against all the other programs in the Interior, Environment, and Related Agencies appropriations bill.  On the House side, members of the Appropriations Committee were willing to cut EPA programs to benefit Indian programs.  

In approving the bill, Committee Chair Collins said: “This legislation would provide important investments in Maine’s public lands, national parks, and tribal programs. It would promote healthy and resilient communities by supporting critical infrastructure that would help to provide clean drinking water and mitigate increasing flood risks.”

The Interior, Environment, and Related Agencies Appropriations Bill provides $38.6 billion, a small increase from the House FY 2026 Appropriations bill of $37.97 billion.  The Senate bill provides $12 billion in total funding for Tribal programs across the Department of the Interior and Indian Health Service.  Below is a summary of significant Tribal provisions.

U.S. Department of the Interior

• Bureau of Indian Affairs:  overall $2.6 billion approved, which is less than the $2.9 billion approved in the House FY 2026 bill.

• Operation of Indian Programs:  $1.92 billion, which is less than the $2.25 billion approved in the House FY 2026 bill, but is a $22 million increase from the enacted FY 2025 level.  

• Construction:  $136 million, which is less than the $167 million approved in the House FY 2026 bill, but is a $2.5 million increase from the enacted FY 2025 level.

• Public Safety and Justice:  $558.8 million, which is less than the $771.84 million approved in the House FY 2026 bill, and is a $1.5 million decrease from the enacted FY 2025 level.

• Indian Guaranteed Loan Program:  $13.33 million, which is less than the $25 million approved in the House FY 2026 bill, but is the same as the enacted FY 2025 level.

• Bureau of Indian Education:  $1.37 billion approved, which is less than the $1.53 billion approved in the House FY 2026 bill, but is the same as the enacted FY 2025 level.  This budget breaks down as follows:

• Operation of Indian Education Programs:  $1.13 billion approved, which is less than the $1.24 billion approved in the House FY 2026 bill, but is the same as the enacted FY 2025 level.

• Education Construction:  $234.7 million, which is less than the $295.4 million approved in the House FY 2026 bill, but is the same as the enacted FY 2025 level.

U.S. Department of Health and Human Services

• Indian Health Service:  $8.1 billion approved for FY 2026, which is less than the $8.41 billion approved in the House FY 2026 bill, but is an increase of $921 million above the enacted FY 2025 level.  This funding is for staffing new facilities and health care delivery services.  Contract support costs and Tribal lease payments are fully funded and includes $5.3 billion in advance appropriations for FY 2027.

• Indian Health Facilities:  $808.8 million which includes advance appropriations and is a $8.73 million increase above the enacted level in FY 2025; however, this is less than the $865.9 million approved by the House.

• Sanitation Facilities Construction: $106.6 million for the construction of sanitation facilities which is the same as the enacted FY 2025 level, but $24 million less than the amount approved by the House.
  

Other Significant Provisions

• 105(l) Leases: Section 427 of the Senate bill directs the Secretaries of the Interior and Health and Human Services to hold Tribal Consultation on 105(l) leases on how to implement a consistent and transparent process for the payment of leases. 

• Historic Preservation Fund:  $168.2 million approved for expenses necessary in carrying out the National Historic Preservation Act, which includes formula grants to fund Tribal Historic Preservation Officers.  This is $700,000 less than the House proposed FY 2026 funding, and but is the same as the enacted FY 2025 level. 

• U.S. Forest Service:  $319.6 million for State, Private, and Tribal Forestry to manage forest health, which is more than the $280.96 million approved in the House FY 2026 bill and a $16.3 million increase from the enacted FY 2025 level.

• U.S. Fish and Wildlife:  Tribal Wildlife Grants: $6.1 million for competitive grants for Indian Tribes for the development and implementation of programs for wildlife habitats.  The same as the enacted FY 2025 level.  

• Office of Navajo and Hopi Indian Relocation:  Provides $7 million to fund the Office and ensure that all appeals and relocation actions are completed.  The House FY 2026 bill eliminated this Office and its funding.  

• Mount Denali: In response to President Trump’s Executive Order No. 14172 attempting to change the name of Mount Denali to Mount McKinley, the bill requires the Department of the Interior to restore the name “Denali” to the nation’s highest peak in Alaska and require all federal references to the mountain be returned to “Denali” within 60 days. 

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.