Federal investment in Native American communities and citizens continues to fall far short of needs, according to a new report from the Brookings Institution and the American Indian College Fund.
This underinvestment, which has been a chronic issue for decades, has become even more glaring in the wake of recent Trump administration cuts that have reduced outlays to Native Americans by more than a billion dollars.
"These reductions violate the government's treaty obligations and have made it significantly more difficult for native citizens and communities to thrive," said Robert Maxim, a fellow at the Brookings Institution and the report's lead author. The current lack of investment is especially troubling, Maxim notes, given that during the Covid pandemic, the Biden administration significantly increased funding for Native American communities and institutions.
While the full fiscal impact of the administration rollback has yet to be fully tabulated, a Brookings analysis has found that Tribal communities may have lost around $1.5 billion—and perhaps more—in future grant funding due to the cuts. An analysis of federal grants canceled during the first four months of the Trump administration showed that nearly a third of all canceled grants included the word "Tribal," making it the most commonly flagged keyword among canceled grants. Moreover, significant federal layoffs have hindered Tribes' ability to access funding and services.
As part of its effort to slash federal spending and close federal agencies, the current administration has canceled numerous grants and contracts to Tribes and Native-serving organizations. In its drive to eliminate DEI, Federal agencies have also cut or eliminated funding for many programs that serve Native Americans, including the Native American-Serving Nontribal Institutions designation for colleges and universities. In addition, the administration has significantly reduced clean energy investments in Tribal communities.
Federal funding to Tribal Nations, citizens, and communities is based not on race, but on a longstanding political, government-to-government relationship between the U.S. and Native nations. Over the course of the 19th century, the U.S. government ratified 370 treaties and negotiated additional unratified treaties: in exchange for the land that now encompasses the U.S., the federal government agreed to provide material benefits, including healthcare, education, and the protection of land and natural resources to Tribes and Native American people. These obligations have been affirmed and expanded by federal courts, and have no expiration date.
In FY2024, inflation-adjusted total funding for Indian Country was around $48 billion. Because these trust and treaty obligations, which involve more than 500 federally recognized Native American Tribes, are complex and subject to interpretation, it is difficult to accurately tabulate how much the federal government should be investing in Native American communities.
Nonetheless, the report says, there is no question that the U.S. is not meeting its obligation. For example, in 2024, the government invested $41.5 million in Native American language revitalization —less than 3% of the government's own estimated annual need of $1.5 billion. The National Tribal Budget Formulation Workgroup calculates that the Indian Health Service needs annual funding of $73 billion —more than 10 times the actual FY2024 IHS budget of $7.1 billion .
The report notes that investing in Native American communities and institutions yields long-term benefits and savings not only for those communities, but for the country as a whole. For instance, research has found that that every dollar invested in Tribal colleges and universities returns $1.60 in tax revenue and public sector savings. Investing in areas such as early childhood education and small business financing also yield positive economic and community benefits.
Moreover, the report finds, philanthropic institutions have not filled the void. Less than one percent of foundation and corporate philanthropic investment in the U.S. goes to Native-serving causes or organizations.
The report proposes a variety of ideas to increase funding of Tribal communities. Maxim, along with his co-authors Glencora Haskins and Danika Grieser, argue that policymakers and philanthropic organizations can take three steps to bolster investment in these communities
- One key policy change would be to make more federal funding for Native Americans mandatory rather than. Right now, most funding for Tribal nations, citizens, and communities is discretionary, and must be approved by Congress annually. This makes it much more vulnerable to cuts. By contrast, mandatory funding is less likely to be slashed once it is in place.
- It is also important to make data about federal investment into Tribal nations, citizens, and communities more accessible. Currently, it is difficult to track what Native communities and institutions are receiving in terms of investment.
- Reform philanthropic approaches to investing in Native causes. Many philanthropic organizations have little understanding of the true needs of Native communities. For example, there is a widespread misconception that many if not most Tribal groups reap enormous profits from casinos, and thus don't need additional investment.
Policymakers can take steps to better protect philanthropic investment aimed at historically underrepresented communities, including Native ones. The 2023 Fearless Fund case , as well as recent Trump administration actions targeting nonprofits, have had a chilling effect on philanthropic investments in historically under-resourced communities.
