Indianz.Com > News > ‘A step in the wrong direction’: President Trump’s funding freeze shakes up Indian Country
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‘A step in the wrong direction’
President Donald Trump’s funding freeze shakes up Indian Country
Tuesday, January 28, 2025
Indianz.Com

WASHINGTON, D.C. — Chaos and confusion remain the order of the day for Indian Country, barely a week into the new administration of President Donald Trump.

With little guidance from the nation’s capital, tribal leaders and advocates are dealing with uncertainty as new orders and directives come from the White House. From immigration raids that began last week to the freezing of federal funds on Monday, the first Americans have been swept up in the Republican president’s “extraordinary actions,” as his primary spokesperson put it.

“President Trump is back and the golden age of America has most definitely begun,” White House Press Secretary Karoline Leavitt said in her first-ever briefing on Tuesday.

During the briefing, Leavitt faced numerous questions about a contentious memo issued by the White House Office of Management and Budget (OMB) on Monday. Even though the agency lacks a confirmed leader, its “acting director” ordered the “temporary pause” of a significant chunk of the federal government’s budget.

“In Fiscal Year 2024, of the nearly $10 trillion that the Federal Government spent, more than $3 trillion was Federal financial assistance, such as grants and loans,” Matthew J. Vaeth, a career employee temporarily serving as OMB’s highest-ranking official, wrote as he put a price tag on the huge dollar amounts implicated by the funding freeze. [PDF: Temporary Pause of Agency Grant, Loan, and Other Financial Assistance Programs]

Indianz.Com Audio: White House Press Secretary Karoline Leavitt holds first press briefing – January 28, 2025

But as Leavitt defended the directive from criticism, the OMB issued a second memo — this one unsigned — to provide what Trump’s spokesperson said was “clarity” to the public about the funding freeze. According to the White House, only grants, loans and assistance associated with a slew of equally controversial executive orders are on hold by the new administration. [PDF: Guidance on Temporary Pause]

By this time, however, the trust and treaty obligations owed to Indian Country were already taking a hit. The National American Indian Housing Council, representing the housing interests of nearly federally recognized tribal nation, reported that some funds became inaccessible.

“NAIHC has heard from members who are already seeing the impacts of this freeze, and being blocked from accessing their grants,” the organization said on Tuesday afternoon, more than an hour before the 5pm Eastern deadline in the OMB memo.

Responding to the crisis created in the capital, leaders of the some of the largest tribes in the country weighed in. According to President Buu Nygren of the Navajo Nation, a federal funding portal had been “shut down” sometime on Tuesday, only for access to be later restored.

“It is also important to emphasize that as a sovereign government, the Navajo Nation operates under treaty obligations with the United States,” Nygren said after the 5pm deadline came into effect. “Treaty agreements create legal protections for our government’s funding and operations.”

Nygren, whose tribe resides on the largest reservation in the United States, noted that a group of non-profits is already suing the Trump administration over the funding freeze. A federal judge based in Washington, D.C., granted a temporary stay against the OMB directive following a hearing scheduled by Zoom at 4pm Eastern.

But the long-time leader of the Native American Rights Fund (NARF), the oldest legal non-profit in Indian Country, warned of further litigation to protect tribal interests. John Echohawk, the organization’s executive director, pointed out that the White House took action without consultation or consent, which are otherwise the hallmarks of a robust nation-to-nation relationship.

“The United States’ must fulfill its trust obligation to protect Tribal treaty rights, lands, assets, and resources,” said Echohawk, who has led NARF for nearly 50 years.

“Withholding federal funding without consultation is a step in the wrong direction,” said Echohawk, a citizen of the Pawnee Nation.

With questions mounting, tribal leaders and officials searched for ways to assure their own citizens and employees of business as usual. Principal Chief David Hill of the Muscogee Nation likened the situation to that of a shutdown of the federal government and the recent COVID-19 pandemic, both of which disproportionately impacted American Indians and Alaska Natives.

“It is important to note that the OMB order recognizes a distinction between non statutory funding and other statutory obligations such as the federal trust responsibility to tribal nations,” Hill said in a statement on Tuesday afternoon.

“We remain committed to ensuring minimal disruptions to our programs and are confident in our ability to navigate this situation, just as we have risen to past challenges,” Hill said.

Vigilance was also key for the Cherokee Nation, one of the two largest tribes in the country. Chief of Staff Dr. Corey Bunch indicated that no disruption had been detected in a statement issued before the funding freeze formally went into effect.

“Many of our departments, including our health facilities and housing programs are generally forward funded and operating as normal, and we are continuing to closely follow any developments that may impact our Cherokee Nation citizens and services,” Bunch said in the statement.

NAIHC, along with NAFOA, the largest finance organization in Indian Country, are continuing to monitor developments. Tribes can submit impacts from the funding freeze via a survey and forward any communications about federal funds amid the changing lansdcape

“The full extent of the impact on federal funds to Tribal Nations is unclear,” NAFOA said a policy alert, referring to the $3 trillion at stake.

During the White House briefing, Press Secretary Leavitt promised a “full list” of federal assistance, loans and grants affected by the funding freeze. By the end of the day, a 52-page document surfaced — again from OMB — that contains the names of hundreds of programs that are being reviewed. [PDF: Instructions for Federal Financial Assistance Program Analysis in Support of M-25-13]

The document directs federal agencies to explain how much money has been allocated for the programs under review. A search of the “spreadsheet” attached shows dozens of Indian Country programs, including grants from the from the Department of Justice for tribes to combat crime under the Violence Against Women Act, a loan program at the Department of Agriculture to help tribes acquire property on their homelands and assistance for businesses owned by American Indian and Alaska Native entrepreneurs from the Minority Business Development Agency at the Department of Commerce.

The Republican-led U.S. Senate has yet to confirm the Secretary nominees for all three of the cabinet-level departments.

The White House spreadsheet also lists some of the biggest funding sources for Indian Country. They include the entirety of Indian Housing Block Grants (IHBG), a $1.11 billion program at the Department of Housing and Urban Development, whose incoming leader, Secretary nominee Scott Turner, has not been confirmed by the GOP-led Senate either.

Also not confirmed by Republicans is Doug Burgum, a former governor of North Dakota who has been tapped to run the Department of the Interior, the federal agency with the most trust and treaty responsibilities. The OMB spreadsheet lists dozens of key programs that fall under the his purview as the cabinet Secretary overseeing the Bureau of Indian Affairs and the Bureau of Indian Education, two of the most important government agencies in Indian Country.

“My experience as governor and working with the tribes and working with local communities,” Burgum said at his Senate confirmation hearing on January 16, “I think the consultation is key.”

The Senate is just getting around to starting two days of confirmation hearings on Wednesday for Robert F. Kennedy Jr. to serve as Secretary of the Department of Health and Human Services, which includes the Indian Health Service. The White House document lists the entire Special Diabetes Program for Indians, which provides about $150 million a year in grants to combat a disease that disproportionately affects American Indians and Alaska Natives.

The spreadsheet also lists at least three grant programs at the Department of Agriculture that help tribal colleges and universities. As Indianz.Com reported last week, President Trump rescinded an executive order aimed at promoting Indian education.

According to the OMB, federal agencies have until February 7 to input funding amounts into the spreadsheet. They also have until February 10 to submit “detailed information on any programs, projects or activities subject to this pause.”

During the briefing on Tuesday, the White House spokesperson would not confirm when the “pause” would end. Press Secretary Leavitt repeatedly insisted the funding freeze was “temporary” in nature.

Amid the deadlines and timing issues, NAIHC reassured tribal housing agencies that its 2025 Legislative Conference would continue as planned in D.C. — even if government officials likely would not be participating, due to “current limitations” on the executive branch, the organization said.

“Given the changes we’ve seen over the past week, the agenda will include multiple opportunities to discuss your concerns, questions, and advocacy goals for NAIHC as we head into a new political environment,” the organization said of the conference, taking place February 4-6 at the Capital Hilton, just a couple of blocks from the White House.

Indianz.Com Audio: 'Brazen and illegal': Democrats in U.S. Senate on freeze of federal funds

The American Indian Higher Education Consortium (AIHEC) is bringing tribal college leaders to the nation’s capital as well. The organization’s Legislative Summit is taking place February 7 at the Yotel, a hotel near the U.S. Capitol complex.

“The theme for this year’s Summit is Building Our Futures, Strengthening Our Workforce, which will focus on workforce development, career readiness, and advocating for Tribal College and University (TCU) priorities as identified by our Presidents,” AIHEC materials state.

According to the organization, 34 tribal colleges and universities are located in 34 states, serving “more than 130,000 American Indians and Alaska Natives yearly.” The Tribally Controlled Colleges and Universities Assistance Act of 1978 mandates federal funding for these institutions.

Following the NAIHC and AIHEC events, the National Congress of American Indians (NCAI) is hosting its executive council winter session from February 10-13 at the Westin D.C. Downtown. The gathering includes the State of Indian Nations, a speech that typically addresses the health of the nation-to-nation relationship between the U.S. and tribes.

Indianz.Com Audio: House Committee on Appropriations Organizational Meeting – 119th Congress

Later in February, tribal and Indian leaders are scheduled to appear before the House Committee on Appropriations. The chair of the legislative panel that writes federal funding bills is Rep. Tom Cole (R-Oklahoma), a citizen of the Chickasaw Nation.

“Looking forward, I am proud to say it is a new day in America,” Cole said at the committee’s first organizational meeting of the 119th Congress last Thursday. “The American people have mandated strong governance — and we will deliver on that duty.”

Cole’s committee will hold American Indian and Alaska Native public witness hearing dates in Washington, D.C., on February 25 and February 26. The deadline to submit requests to testify is February 3.

Written testimony can also be submitted. The deadline is April 4.
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