Luján: Trump Administration Illegally Blocking Nearly $316 Billion Owed to Native Communities

WATCH Senator Luján’s Remarks in Senate Indian Affairs Committee

Washington, D.C.— A new tracker revealed that the Trump administration is blocking or freezing more than $430 billion in federal funding owed to communities across the country — including nearly $316 billion for national programs that support Indian Country and Native communities. The data reflects just how widespread the damage is — with funding for public safety, housing, disaster recovery, child care, transportation, infrastructure, and education either delayed or terminated, and whole agencies and offices closed down, cutting off vital services.

“The Trump administration is illegally withholding hundreds of billions of dollars owed to communities across the country – including nearly $316 billion owed to Native communities – just to hand out more tax breaks to the wealthiest Americans and corporate interests,” said Senator Luján, a member of the Senate Indian Affairs Committee. “This is a profound betrayal of Native communities and a shameful failure to uphold the federal government’s trust responsibility to Tribes. Blocking these funds has real consequences – stripping away vital resources from the health care, education, and child care services families depend on. This reckless decision puts the well-being and safety of New Mexicans and Tribal Nations at risk.”

As these cuts take effect, the Trump administration has imposed “Defend the Spend,” a sweeping new policy that requires grantees to justify spending line by line, even for items that have already been awarded. Grantees have received inconsistent guidance on how to navigate the new mandate, and many have faced significant delays in accessing funding they were already awarded — including funding for essential Tribal services.

At the same time, the Trump administration is proposing to slash $911 million — a 24% cut — from core Tribal programs in its Fiscal Year 2026 proposed budget. These cuts would gut basic services like public safety and justice, education and workforce training, Native American Housing Assistance and Self Determination Act (NAHASDA) housing grants, Native Community Development Financial Institutions Fund (CDFIs), forestry management, and programs for Native children and families. They would also nearly eliminate funding to construct or repair Tribal schools, which are already chronically underfunded, and reduce support for Tribal law enforcement by 20 percent. As the economy slows and prices rise due to President Trump’s policies, these devastating cuts and burdensome new processes would make life harder in Native communities.

If you or your community has been impacted by withheld or terminated federal funding, you are encouraged to share your story by emailing oversight@indian.senate.gov. Your name and contact information will be kept confidential. Please include the federal agency and program involved in your submission.

###