Tracking Budget Reconciliation Legislation – Negotiations Continue, Impacts for Tribes

NAFOA and our partner organizations continue to monitor the development of the FY26 Budget and its implications for Tribes. House Committees completed their budget markup processes last week. The latest markup information by committee can be found using the links in the table below.

✅= Approved

Late last week, progress on the budget seemed to stall when five Republican lawmakers joined Democrats in voting against advancing the bill out of the House Budget Committee. Negotiations continued over the weekend, and the House Budget Committee voted late Sunday evening to advance the bill, though concerns remain. Concessions in the weekend negotiations centered mainly on Medicaid, including work requirements for eligibility and revoking benefits for undocumented immigrants. Some lawmakers have also raised the issue of the growing national deficit. 

The process continues this week, with the budget bill moving to the House Rules Committee. Some GOP lawmakers, including Speaker Mike Johnson, are pushing the bill to the House Floor with a Memorial Day target for House approval. It is unclear whether the bill will move as planned as lawmakers push for continued revisions. 

The budget bill, in its current form, primarily focuses on the Administration’s priorities in taxes, immigration, defense, and energy. Tribes will be particularly interested in proposals reducing funding for Tribal Self-Governance, Bureau of Indian Education Construction, and some Tribal Law Enforcement programs. The bill would also rescind the unobligated balance of the Tribal Energy Loan Guarantee Program and rescission of energy programs funded under the Inflation Reduction Act (IRA), including those for climate justice and resiliency, which could have implications for Tribes who have started or planned to start energy projects. 

The bill also includes language that would benefit Tribes by recognizing Tribal Governments, like states, for determining a child’s special needs for the adoption credit, creating parity between state and Tribal governments. The bill would also improve access to the Low Income Housing Tax Credit utilizing “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. 

NAFOA recently attended and presented at a Legislative Summit co-hosted by the IGA and NCAI. The summit covered many issues and legislative priorities for the 119th Congress. Speakers included Congressman Tom Cole (R-OK), a Chickasaw Nation member and current House Appropriations Committee Chairman. Congressman Cole assured Tribal Leaders that Tribal issues were top of mind and would be addressed, encouraging Tribal Leaders to contact their Members of Congress and insist that funding to Tribes be preserved and enhanced. 

If you have any questions, please contact Nicholas Lovesee, Director of Policy, at nicholas@nafoa.org.