House Appropriations Subcommittee Passes Fiscal Year 2026 Spending Bill
On July 15, the House Interior Appropriations subcommittee passed the Fiscal Year 2026 (FY26) Interior, Environment, and Related Agencies spending bill (H.R.4754). Tribal programs in the bill were largely funded at or above FY25 levels, despite the President’s budget request, which called for deep spending cuts to some Indian Country programs. This bill sets annual spending for agencies such as the Department of the Interior and the Environmental Protection Agency. At $37.971 billion, the FY26 proposal is a 6% cut overall from the FY25 enacted level. This includes a 23% cut to the Environmental Protection Agency.
This spending bill increases Indian Health Service (IHS) funding and includes advance appropriations for FY27, which tribal leaders and health experts have said is crucial to improving outcomes and services in IHS.
It also includes a bump for the Bureau of Indian Education Construction Fund, from $234 million (FY25) to $295 million. This account is FCNL’s FY26 Native American Advocacy program funding priority. FCNL’s Anna Aguto recently wrote about the importance of fully utilizing these funds.
Senate Committee on Indian Affairs Hears from Assistant Secretary for Indian Affairs Nominee
On July 17, the Senate Committee on Indian Affairs held a hearing to consider the nomination of William “Billy” Kirkland (Navajo/Diné) to serve as assistant secretary for Indian affairs at the Department of Interior. Kirkland served in the first Trump administration as special assistant to the president of the United States and deputy director of intergovernmental affairs at the White House. In this role, he organized the first formal recognition of the Navajo Codetalkers, who helped secure Allied victory in World War II. The National Congress of American Indian (NCAI) applauded his nomination when announced in February.
The assistant secretary for Indian affairs is a critical role in the Department of Interior, tasked with overseeing the department’s government-to-government relationships with tribes. This includes holding tribal consultations, and overseeing the Bureau of Indian Affairs, Bureau of Indian Education, and the Bureau of Trust Funds Administration. Informally, the assistant secretary often consults with other departments to guide their tribal relationships and ensure compliance with the U.S.’s treaty and trust responsibilities.
At the hearing, senators asked questions about Kirkland’s work as a political consultant and his previous role in the White House. Sen. Markwayne Mullin (OK, Cherokee Nation) asked Kirkland about how his heritage impacts his attitude toward Indian Country. Sen. Lisa Murkowski (AK), who chairs the committee, closed the hearing by asking Kirkland to partner with the committee to work toward solving chronic problems in Indian Country. The committee has not yet voted on advancing Mr. Kirkland’s nomination. If he’s cleared by the committee, the nomination will head to the full Senate for approval.
Reconciliation Bill Signed Into Law
H.R. 1, also known as the “One Big Beautiful Bill Act” was signed into law by President Donald Trump on July 4. The bill extends tax cuts passed in 2017, while stripping historic clean energy incentives, slashing funds to Medicaid and SNAP, and supercharging immigration and border enforcement. Tribal leaders have expressed concern about the impact of the cuts to Medicaid, which reimburses the Indian Health Service hundreds of millions of dollars each year for medical care. Tribal leaders are worried that cuts to Medicaid would increase the number of individuals seeking care at IHS facilities without Medicaid coverage.
The bill also zeros out the Tribal Energy Loan Guarantee Program, which allows the Department of Energy to provide loans to Tribal nations to improve energy access in reservation communities. The program was established under President George W. Bush but not funded until President Trump’s first administration in 2017. It was expanded significantly by the 2022 Inflation Reduction Act (IRA). While few projects have been authorized under the program, tribal leaders have said they expected demand for the program to increase as Native nations became aware of new funding opportunities.
