We waited anxiously for very-last minute-decisions on some key programs, especially the Special Diabetes Program for Indians, and the Children’s Health Insurance Program. As it turned out, Congress did provide a temporary extension for these critical programs.
General Funding for Programs
On December 22, just before leaving town, Congress passed a Continuing Resolution (CR)* to maintain support for federal programs – in Indian Country and in other communities – at current funding levels until January 19, 2018. The CR also includes some additional funding for the Indian Health Service, to support staffing and operations in newly constructed Indian Health Service facilities. A [summary] (/documents/500) and [full text] (/documents/499) are available here as .pdfs.
January 19 is just a few weeks away, so Congress will have to move quickly to agree on funding for the rest of the fiscal year by then.
Critical Health Care Programs
Meanwhile, certain high priority programs needed to be reauthorized* –- given extended authority to operate — before the end of 2017. Among these programs were the Special Diabetes Program for Indians (SDPI), the Children’s Health Insurance Program (CHIP) and certain public health service programs. These were reauthorized and funded through March 31, 2018.
What you can do: It’s still essential to contact members of Congress about the importance of the Special Diabetes for Indians Program. See FCNL’s letter to Congress on SDPI (a .pdf) here. Borrow a few points, if you wish, for your own message, and let your representative and senators know that health care for Indian country – especially to address the high rate of diabetes – is one of the promises that should be kept. The National Indian Health Board provides excellent updates and background materials on the program.
The Tax Bill
Congress managed to churn out a final tax bill in its last week before closing down for the holidays. Tax attorneys and accountants all over the country are diving deep into the bill’s provisions and implications. Details will continue to unfold.
However, we do know a few things now:
Over the next few years, most federal income tax payers will see a modest cut in their taxes. Corporations and the wealthiest taxpayers will see a much greater cut. Senator Tester stated on the Senate floor last week that “estimates show that more than 80 percent of this bill’s benefits will go to the [wealthiest] 1 percent; 60 percent will go to the top one-tenth of 1 percent of our population.”
For corporations, the tax cuts are permanent. For most taxpayers, however, the bill’s modest benefits will go away in 2025.
This tax cut is costly – someone is going to pay. The Congressional Budget Office has advised that this tax bill will add $1.4 trillion to the federal debt over the next ten years. The huge rise in the federal debt will add pressure to cut funding for federal programs, especially programs that help middle and lower-income people. These spending cuts are likely to impact many individuals and communities, but they will include a wide range of programs and supports on which Indian country must rely. Programs that fulfill (some portion of the) trust responsibilities to tribal nations are likely to be early candidates for budget cuts in 2018.
Tribal governments were left out of the tax bill. A comprehensive “tax reform” bill doesn’t work its way through Congress very often. This bill presented an opportunity to fix some of the anomalies in tax laws relating to Indian country. Tribal advocates pressed for changes that would promote parity under tax laws between tribal governments and state governments, to strengthen their ability to attract economic investment and job creation. The National Congress of American Indians adopted a resolution in June 2017 describing the changes they would need to see in order for tribal governments to be treated with parity in all areas of tax policy.
Only one very specific change – relating to Alaska Native Corporations – was included. It will allow favorable tax treatment for Alaska Native Corporations that put land or other assets into trusts designed to benefit Alaska Natives who were born after 1971, when the corporations were created, and shares were allocated.
For information on other issues, please see FCNL’s wrap-up of 2017 (coming soon), reviewing the progress that was made in 2017 and what is to be done next in 2018 on these objectives:
Respect and Preserve Native Culture and Sovereignty
Honor the Promises
Support Tribal Justice and Tribal Governments
Protect Lands and Waters in Indian Country
- For plain-English definitions, please see Federal Budget Terms (a.pdf).
