- Details
- By Brian Edwards and Chez Oxendine
- Policy and Law
President Donald Trump’s fiscal 2027 budget proposal calls for ramping up U.S. defense spending to $1.5 trillion, a shift that would come alongside deep reductions to domestic programs — including those that support tribal governments, Native businesses and essential services in Indian Country.
The administration’s FY2027 budget proposes hundreds of millions of dollars in cuts to tribal programs — from housing and Native lending to key health programs — echoing reductions Congress rejected in last year’s appropriations process.
The proposal outlines a broad rebalancing of federal priorities, increasing funding while cutting or restructuring programs tied to housing, health care, economic development and infrastructure. Tribal programs receive little direct attention in the administration’s budget narrative, but the underlying policy changes would reach across nearly every part of tribal economies.
“The vision President Trump has outlined for America in his budget is bleak and unacceptable,” Sen. Patty Murray (D-Wash.), vice chair of the Senate Appropriations Committee said in a statement following the budget’s release.
Congressional leaders in both parties emphasized that the proposal is only a starting point. House Appropriations Committee Chairman Tom Cole (R-Okla.) said “hearings are underway, and markups will move this work forward in the weeks ahead,” pointing to Congress’ role in setting final funding levels.
That dynamic played out in fiscal 2026, when Congress rejected nearly $1 billion in proposed cuts to tribal programs and instead preserved funding for health care, public safety, education and infrastructure across Indian Country.
The fiscal 2027 proposal again targets many of the same programs Trump targeted in his fiscal 2026 budget proposal.
Among the most significant changes is a reduction to tribal housing funding. The budget proposes $621 million for the Indian Housing Block Grant program, a cut of more than $489 million from current level, while eliminating the Native Hawaiian Housing Block Grant entirely. It also calls for eliminating the $3.3 billion Community Development Block Grant program, which supports housing and infrastructure projects, including those led by Native organizations.
"The President’s FY27 budget request signals concerning reductions that would constrain vital tribal housing programs, even as housing needs across Indian Country continue to grow,” Rudy Soto, executive director for the National American Indian Housing Council, told Tribal Business News. “While this proposal is only a starting point, it underscores the importance of strong advocacy from Indian Country to ensure tribal housing resources are protected and strengthened through the congressional appropriations process.”
The proposal comes as lawmakers from both parties have called for reauthorizing and updating the Native American Housing Assistance and Self-Determination Act, which governs much of federal housing policy in Indian country.
Beyond housing, the administration also targets Native-focused lending programs. The budget would eliminate the Native American CDFI Assistance (NACA) program, which Congress funded at $28 million in both fiscal 2025 and 2026, though those funds have not been distributed by the Office of Management and Budget, leaving Native lenders without access to appropriated capital. The broader CDFI Fund would be reduced and replaced in part with a $100 million rural program that does not include a Native set-aside.
In a fact sheet accompanying the budget, the administration framed the changes as part of an effort to eliminate what it described as “woke programs,” specifically targeting the CDFI Fund and other initiatives tied to equity and climate priorities.
“Native CDFIs play a critical role … delivering capital, building economies, and supporting Native communities on the ground,” Pete Upton, CEO of the Native CDFI Network, told Tribal Business News. “We are actively working both sides of the aisle to ensure the NACA program is not eliminated … and to secure the release of FY 2025 and 2026 funds.”
At the Interior Department, the budget calls for eliminating the Indian Guaranteed Loan program, which supports financing for tribal businesses. Congressional Democrats have also pointed to proposed funding reductions of 27% to the Bureau of Indian Affairs and 32% to the Bureau of Indian Education, calling the cuts a retreat from federal trust and treaty obligations.
The proposal “abandon[s] our trust and treaty obligations to Native Americans,” Rep. Rosa DeLauro, ranking member of the House Appropriations Committee, said in a statement criticizing the proposal.
Health funding presents a more mixed picture. The administration requests nearly $9.1 billion for the Indian Health Service, an increase of about $1.1 billion from fiscal 2026 levels, according to an analysis from the National Indian Health Board. The proposal includes increased funding for advance appropriations, electronic health record modernization and facilities construction — all longstanding priorities for tribal health systems.
At the same time, Trump calls for cuts to several health programs. Funding for sanitation facilities construction would be cut by 87%, while the Special Diabetes Program for Indians would be reduced by $150.6 million, or 75%. Urban Indian Health funding would see a slight decrease.
Tribal energy and agriculture aren’t directly targeted by Trump’s proposed cuts, but may suffer impacts from cuts to programs without specific tribal set-asides or focuses.
The U.S. Department of Agriculture’s rural development funding would decline from $3.3 billion to $2.9 billion, affecting programs that support business development, food systems and infrastructure in tribal communities. The budget would also eliminate the Agricultural Marketing Service, which has supported efforts to expand markets for tribal products.
At the Department of Energy, funding for clean energy and grid programs would be reduced, affecting projects that tribes use for solar, wind and microgrid development. The proposal would also eliminate federal digital equity grants, including planning and competitive programs that tribes have used to expand broadband access, digital literacy and workforce development.
The result is a budget that makes few explicit references to tribes, but would still have broad implications for Indian Country.
Congressional appropriators will not begin hearings and markups that will determine how much of the president’s proposal is enacted. Lawmakers from both parties have signaled that the final budget may differ significantly from the administration’s request, as it did in fiscal 2026.
“The President’s Budget Request is just that, a request,” Senate Appropriations Committee Chair Susan Collins (R-Maine) said, noting that Congress will ultimately determine final funding levels.