NAFOA and our partner organizations continue to monitor the development of the FY26 Budget and its implications for Tribes as the reconciliation legislation makes its way through Congress. After a 22-hour markup in the House Rules Committee, the Budget Reconciliation legislation, known as the “One Big Beautiful Bill Act,” advanced to the House floor for consideration late Wednesday. Early Thursday, May 22nd, 2025, the House narrowly passed the Budget reconciliation bill with a 215-214-1 vote. This outcome aligns with the GOP lawmakers and Speaker Mike Johnson’s objective of securing House approval with the Memorial Day target deadline. The bill has now been advanced to the Senate for consideration. With the unique rules that apply to reconciliation legislation, the bill was passed in the House with a simple majority; the same applies to the Senate in addition to avoiding a filibuster. Therefore, the Senate can pass the bill with a simple majority vote without invoking cloture, which requires 60 votes to prevent debate and advance to the Senate floor for a vote.
The House budget bill contains several provisions with significant impacts on Tribal Nations. The budget bill does include measures that support Tribal parity and economic development. The bill recognizes Tribal governments, like states, in determining a child’s special needs for the adoption credit, establishing parity between state and Tribal governments. The bill also enhances access to the Low-Income Housing Tax Credit by using “Indian Area” language from the Native American Housing Assistance and Self-Determination Act (NAHASDA) or for projects sponsored by an Indian Tribe or Tribally designated housing entity.
While the House budget bill, in its current form, focuses on the Administration’s priorities in taxes, immigration, defense, and energy, it is essential to note that the Senate version will likely look very different from the House version. We encourage Tribes to continue to follow the budget process. NAFOA will also host a budget-related webinar in June to provide additional information on the budget process and its implications for Tribes.
If you would like to provide feedback or have questions, please contact a member of our policy team: Nicholas Lovesee, Director of Policy, at nicholas@nafoa.org, or Marisa Joseph, Policy Specialist, at marisa@nafoa.org
