Indianz.Com > News > ‘A step in the wrong direction’: President Trump’s funding freeze shakes up Indian Country
‘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]
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."NAIHC has heard from members who are already seeing the impacts of this freeze, and being blocked from accessing their grants.": Federal funds owed to tribes under the trust and treaty responsibilities of the US appear to be caught up in President Donald Trump's funding freeze.
— indianz.com (@indianz) January 28, 2025
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."To help us gauge the impact of this announcement on Tribal Nations, please forward any agency notifications or communications to your Tribe regarding federal funding to info@nafoa.org," NAFOA said in a policy alert on January 28, 2025.
— indianz.com (@indianz) January 28, 2025
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