In this Memorandum we report on the Administration’s FY 2015 budget request for the major programs in the Indian Affairs (IA) budget that are of particular interest to Indian tribes and tribal organizations. These programs are funded under the Interior, Environment and Related Agencies appropriations bill.
The IA detailed budget information is attached in chart form and is excerpted from the Administration’s FY 2015 budget request. We discuss in the narrative only those issues that describe significant changes or may be of particular interest. Also excerpted from the budget request and attached are the pages containing the Administration’s requested appropriations language for IA Administrative Provisions. These Administrative Provisions are consistent with that of past years. The page numbers in this Memorandum refer to page numbers in the Administration’s FY 2015 budget request, a copy of which may be accessed here: http://www.doi.gov/budget/upload/FY2015_IA_Greenbook.pdf
INDIAN AFFAIRS (IA) BUDGET OVERVIEW
The Administration seeks an FY 2015 funding level of $2.56 billion for Indian Affairs, which is $33.6 million above the FY 2014 enacted level. Within the total are $2.41 billion for the Operation of Indian Programs (a $33.8 million increase from FY 2014) and $109.9 million for Construction (a $216,000 decrease from FY 2014). Of note, the Administration requests: full funding for Contract Support Costs; a “clean” Carcieri fix; an integrated Initiative focusing on child protection, job training, alternatives to incarceration, and housing; and the transfer of the Indian Arts and Crafts Board. These highlights are detailed below:
Fully Fund Contract Support Costs. As mentioned above, the budget would fully fund Contract Support Costs. The proposed budget, consistent with the Interior appropriations acts for FYs 1999-2014, attempts to limit the ability of the IHS and BIA to fund past-year shortfalls in Contract Support funding from remaining unobligated balances for those fiscal years (section 406). This provision has been included in the appropriations act for many years and has not precluded recovery on past-year CSC claims.
Sec. 406. Notwithstanding any other provision of law, amounts appropriated to or otherwise designated in committee reports for the Bureau of Indian Affairs and the Indian Health Service by Public Laws 103-138, 103-332, 104-134, 104-208, 105-83, 105-277, 106-113, 106-291, 107-63, 108-7, 108-108, 108-447, 109-54, 109-289, division B and Continuing Appropriations Resolution, 2007 (division B of Public Law 109-289, as amended by Public Law 110-5 and 110-28), Public Laws 110-92, 110-116, 110-137, 110-149, 110-161, 110-329, 111-6, 111-8 and 111-88, 112-10, 112-74 and 113-6 for payments for contract support costs associated with self-determination or self-governance contracts, grants, compacts, or annual funding agreements with the Bureau of Indian Affairs or the Indian Health Service as funded by such Acts, are the total amounts available for fiscal years 1994 through 2013 for such purposes, except that for the Bureau of Indian Affairs, tribes and tribal organizations may use their tribal priority allocations for unmet contract support costs of ongoing contracts, grants, self-governance compacts or annual funding agreements.
The above language is section 404 of the Fiscal Year 2015 Appendix, Budget of the U.S. Government.
In addition, the Administration proposes bill language to ensure that FYs 2014 and 2015 CSC cannot be used to pay prior year Contract Support Costs nor to repay the Judgment Fund for payment on prior year funds. The budget justification does not explain why this language was included.
The proposed language, which would apply to both the IHS and the BIA which would be applicable to FY 2014 (section 405 of the Fiscal Year 2015 Appendix, Budget of the U.S. Government) is:
Sec. XXX Amounts provided under the headings “Department of the Interior, Bureau of Indian Affairs and Bureau of Indian Education, Operation of Indian Programs” and “Department of Health and Human Services, Indian Health Service, Indian Health Services” in the Consolidated Appropriations Act, 2014 (P.L. 113–76) are the only amounts available for contract support costs arising out of self-determination or self-governance contracts, grants, compacts, or annual funding agreements with the Bureau of Indian Affairs or the Indian Health Service for activities funded by the FY 2014 appropriation: Provided, That such amounts provided by that Act are not available for payment of claims for contract support costs for prior years, or for repayments of payments for settlements or judgments awarding contract support costs for prior years.
And for FY 2015 (section 406 of the Fiscal Year 2015 Appendix, Budget of the U.S. Government):
Sec. XXX Amounts provided by this Act for fiscal year 2015 under the headings “Department of Health and Human Services, Indian Health Service, Indian Health Services” and “Department of the Interior, Bureau of Indian Affairs and Bureau of Indian Education, Operation of Indian ” are the only amounts available for contract support costs arising out of self-determination or self-governance contracts, grants, compacts, or annual funding agreements for fiscal year 2015 with the Bureau of Indian Affairs or the Indian Health Service: Provided, That such amounts provided by this Act are not available for payment of claims for contract support costs for prior years, or for repayments of payments for settlements or judgments awarding contract support costs for prior years. (p. 728, Department of Interior Appendix)
Indian Reorganization Act – Carcieri Fix. The Administration proposes language that would provide a “clean” Carcieri fix, which would reverse the U.S. Supreme Court’s 2009 decision that the Secretary of the Interior did not have authority to take land into trust for tribes recognized after 1934. The language below is the same as that requested, but not enacted, in FYs 2011, 2012, 2013 and 2014 appropriations measures.
INDIAN REORGANIZATION ACT
SEC. 114. (a) Modification – (1) In general – The first sentence of section 19 of the Act of June 18, 1934 (commonly known as the “Indian Reorganization Act”) (25 U.S.C. 479), is amended – (A) by striking “The term” and inserting “Effective beginning on June 18, 1934, the term”; and (B) by striking “any recognized Indian tribe now under Federal jurisdiction” and inserting “any federally recognized Indian tribe”. (2) Effective date – The amendments made by paragraph (1) shall take effect as if included in the Act of June 18, 1934 (commonly known as the “Indian Reorganization Act”) (25 U.S.C. 479), on the date of enactment of that Act. (b) Ratification and confirmation of actions – Any action taken by the Secretary of the Interior pursuant to the Act of June 18, 1934 (commonly known as the “Indian Reorganization Act”) (25 U.S.C. 461 et seq.) for any Indian tribe that was federally recognized on the date of the action is ratified and confirmed, to the extent such action is subjected to challenge based on whether the Indian tribe was federally recognized or under Federal jurisdiction on June 18, 1934, as if the action had, by prior act of Congress, been specifically authorized and directed. (c) Effect on other laws (1) In general – Nothing in this section or the amendments made by this section affects – (A) the application or effect of any Federal law other than the Act of June 18, 1934 (25 U.S.C. 461 et seq.) (as amended by subsection (a)); or (B) any limitation on the authority of the Secretary of the Interior under any Federal law or regulation other than the Act of June 18, 1934 (25 U.S.C. 461 et seq.) (as so amended). (2) References in other laws – An express reference to the Act of June 18, 1934 (25 U.S.C. 461 et seq.) contained in any other Federal law shall be considered to be a reference to that Act as amended by subsection (a). (p. 726, Department of Interior Appendix)
Tiwahe (Family)Initiative. In response to the disproportionately high rates of child abuse and neglect, poverty, substance abuse, suicide, and violent crime in Indian Country, the Administration proposes a comprehensive and integrated approach to address these often interrelated problems. The Administration requests $11.5 million for the Tiwahe (Lakota for “family”) Initiative which would broaden the focus to the family unit by: increasing the number of social workers dedicated to child protection; expanding job training opportunities; creating a pilot program to provide alternatives to incarceration and increased treatment opportunities; and expanding the qualification for housing services to alleviate overcrowding.
Indian Arts and Crafts Board. Consistent with past budget requests, the Administration continues to propose the transfer of the Indian Arts and Crafts Board from the Office of the Secretary to the Operation of Indian Programs budget.
OPERATION OF INDIAN PROGRAMS
FY 2013 Enacted $2,363,002,000
FY 2013 Post-Sequester $2,243,891,000
FY 2014 Enacted $2,378,763,000
FY 2015 Admin. Request $2,412,569,000
Operation of Indian Programs (OIP) budget includes: the Bureau of Indian Affairs (BIA) and the Bureau of Indian Education (BIE) and as the Administration proposes for FY 2015, OIP would also include the Indian Arts and Crafts Board.
BUREAU OF INDIAN AFFAIRS
FY 2013 Enacted $1,568,911,000
FY 2013 Post-Sequester $1,489,827,000
FY 2014 Enacted $1,590,009,000
FY 2015 Admin. Request $1,616,928,000
Activities within the Bureau of Indian Affairs are: Tribal Government; Human Services; Trust-Natural Resources Management; Trust-Real Estate Services; Public Safety and Justice; Community and Economic Development; and Executive Direction and Administrative Services.
FY 2013 Enacted $521,786,000
FY 2013 Post-Sequester $495,485,000
FY 2014 Enacted $535,082,000
FY 2015 Admin. Request $545,679,000
The Tribal Government subactivities are: Aide to Tribal Government; Consolidated Tribal Government Program; Self-Governance Compacts; Contract Support; Indian Self-Determination Fund; New Tribes; Small and Needy Tribes; Roads Maintenance; and Tribal Government Program Oversight. For budget details by program, see page IA-ST-2 of the attached chart.
Contract Support Costs. This category covers both the Contract Support and Indian Self-Determination Fund subactivities. The FY 2014 enacted level for these subactivites combined was $247 million ($242 million for Contract Support and $5 million for the Indian Self-Determination Fund). The Administration’s FY 2015 request, estimated to fully fund Contract Support Costs for FY 2015, requests $251 million ($246 for Contract Support and $5 million for the Indian Self-Determination Fund.)
FY 2013 Enacted $135,615,000
FY 2013 Post-Sequester $128,779,000
FY 2014 Enacted $132,778,000
FY 2015 Admin. Request $142,634,000
The Human Services subactivities are: Social Services; Welfare Assistance; Indian Child Welfare Act (ICWA); Housing Improvement Program (HIP); Human Services Tribal Design; and Human Services Program Oversight. For budget details by program, see page IA-ST-2 of the attached chart.
Housing Improvement Program. In the FY 2014 request the Administration had proposed the elimination of the HIP on the basis that it serves the same population as those helped through the Native American Housing Block Grant program operated by the Department of Housing and Urban Development. However, Congress funded it anyway, albeit at a lower level. For FY 2015 the Administration requests the same amount as the FY 2014 Enacted level ($8 million).
TRUST–NATURAL RESOURCES MANAGEMENT
FY 2013 Enacted $162,529,000
FY 2013 Post-Sequester $154,337,000
FY 2014 Enacted $184,295,000
FY 2015 Admin. Request $184,012,000
The Trust–Natural Resources Management subactivities are: Natural Resources; Irrigation Operation and Maintenance; Rights Protection Implementation; Tribal Management/Development Programs; Endangered Species; Cooperative Landscape Conservation; Integrated Resource Information; Agriculture and Range; Forestry; Water Resources; Fish/Wildlife & Parks; and Resource Management Oversight. For budget details by program, see page IA-ST-2 of the attached chart.
TRUST–REAL ESTATE SERVICES
FY 2013 Enacted $130,334,000
FY 2013 Post-Sequester $123,762,000
FY 2014 Enacted $126,758,000
FY 2015 Admin. Request $127,002,000
The Trust–Real Estate Services subactivities are: Trust Services; Navajo-Hopi Settlement Program; Probate; Land Title and Records Offices; Real Estate Services; Land Records Improvement; Environmental Quality; Alaskan Native Programs; Rights Protection; and Trust-Real Estate Services Oversight. For budget details by program, see pages IA-ST-2 and IA-ST-3 of the attached chart.
Litigation Support/Attorney Fees. This account falls under the Rights Protection Subactivity. It was not funded in FY 2013 but, consistent with the Administration’s FY 2014 Budget request, it received $1.5 million in FY 2014. These funds provide support to tribes to protect their tribal trust resources or treaty rights in cases where the federal government cannot represent Indian interests for various reasons, including conflicts of interest. The Administration’s FY 2015 Budget requests $1.5 million.
PUBLIC SAFETY AND JUSTICE
FY 2013 Enacted $344,981,000
FY 2013 Post-Sequester $327,592,000
FY 2014 Enacted $350,000,000
FY 2015 Admin. Request $351,850,000
The Public Safety and Justice subactivities are: Law Enforcement; Tribal Courts; and Fire Protection. For budget details by program, see page IA-ST-3 of the attached chart.
COMMUNITY AND ECONOMIC DEVELOPMENT
FY 2013 Enacted $34,722,000
FY 2013 Post-Sequester $32,972,000
FY 2014 Admin. Request $36,654,000
FY 2014 Enacted $35,300,000
The Community and Economic Development subactivities are: Job Placement and Training; Economic Development; Minerals and Mining; and Community Development Oversight. For budget details by program, see page IA-ST-3 of the attached chart.
EXECUTIVE DIRECTION AND ADMINISTRATIVE SERVICES
FY 2013 Enacted $238,944,000
FY 2013 Post-Sequester $226,900,000
FY 2014 Enacted $225,782,000
FY 2015 Admin. Request $229,755,000
The Executive Direction and Administrative Services subactivities are: Assistant Secretary Support; Executive Direction; Administrative Services; Safety and Risk Management; Information Resources Technology; Human Capital Management; Facilities Management, Intra-Governmental Payments; and Rentals. For budget details by program, see pages IA-ST-3 and IA-ST-4 of the attached chart.
BUREAU OF INDIAN EDUCATION
FY 2013 Enacted $794,092,000
FY 2013 Post-Sequester $754,064,000
FY 2014 Enacted $788,754,000
FY 2015 Admin. Request $794,389,000
The Bureau of Indian Education (BIE) category displays funds for the BIE-funded elementary and secondary school system as well as other education programs including higher education and scholarships. The Bureau of Indian Education subactivities are: Elementary and Secondary Programs (Forward Funded); Elementary and Secondary Programs (Non-Forward Funded); Post Secondary Programs (Forward Funded); Post Secondary Programs (Non-Forward Funded); and Education Management. For budget details by program, see page IA-ST-4 of the attached chart.
General Overview. The proposed budget would provide a net $5.6 million increase above the FY 2014 level, particularly, a $500,000 increase for Johnson O’Malley Assistance Grants; a $300,000 increase for Tribal Technical Colleges, a $250,000 increase for Special Higher Education Scholarships, and a $1.7 million increase for the Science Post Graduate Scholarship Fund. The narrative in the Justification under the Education Program Management sub-activity notes that consultation is beginning on the American Indian Education Study Group’s draft proposal to redesign the BIE.
Elementary and Secondary Programs (Forward Funded)
FY 2013 Enacted $519,908,000
FY 2013 Post Sequester $493,701,000
FY 2014 Enacted $518,318,000
FY 2015 Admin. Request $520,755,000
The Elementary and Secondary forward funded programs include all components for operating an elementary and secondary school system. For schools operated by tribes through grants, the program also includes funding to cover the tribe’s administrative costs. The forward-funded programs are: the ISEP Formula Funding, ISEP Program Adjustments, Education Program Enhancements, Student Transportation, Early Childhood Development, and Tribal Grant Support Costs (formerly titled Administrative Cost Grants.) Funds appropriated for FY 2015 for these programs will become available for obligation on July 1, 2015, for SY 2015-2016.
Tribal Grant Support Costs. This program provides administrative costs for tribes that elect to assume operation of their schools under contract or grant authorization. Tribes operating BIE-funded schools use these funds for the overhead costs of operating a school, meet legal requirements, and carry out support functions that would otherwise be provided by the BIE school system. As of July 2013, tribal entities operate 126 of the 183 BIE-funded schools and dormitories under contract or grant. The Administration requests $48 million for FY 2015, the same amount as FY 2014 Enacted. Unlike Contract Support Costs, this program is not fully funded. Funding is distributed by formula.
Elementary and Secondary Programs (Non-Forward Funded)
FY 2013 Enacted $122,501,000
FY 2013 Post Sequester $116,326,000
FY 2014 Enacted $118,402,000
FY 2015 Admin. Request $119,195,000
The funds in this subactivity are not forward funded, that is they are available for the entire two year period of authorization of the annual Operation of Indian Programs appropriation. The non-forward funded programs are: Facilities Operations, Facilities Maintenance and Johnson-O’Malley Assistance Grants. Funds for Facilities Operations and Facilities Maintenance are distributed by formula to schools in the BIE school system. In 2014 Congress directed the BIE, in coordination with the Department of Education, to biennially update its count of students eligible for the Johnson-O’Malley Program. The BIE intends to implement the updated 2014 Johnson-O’Malley student count in FY 2015.
Post Secondary Programs (Forward Funded)
FY 2013 Enacted $68,394,000
FY 2013 Post Sequester $64,947,000
FY 2014 Enacted $69,793,000
FY 2015 Admin. Request $69,793,000
Under the provisions of P.L. 95-471, the Tribally Controlled Colleges or Universities Assistance Act of 1978, as amended by P.L. 110-315, the Higher Education Opportunity Act of 2008 the 28 Title I tribal colleges are forward funded.
Post Secondary Programs (Non-Forward Funded)
FY 2013 Enacted $61,955,000
FY 2013 Post Sequester $58,832,000
FY 2014 Enacted $61,887,000
FY 2015 Admin. Request $64,182,000
The two post-secondary schools in the BIE’s education system include Haskell Indian Nations University (Haskell) located in Lawrence, Kansas, and the Southwestern Indian Polytechnic Institute (SIPI) in Albuquerque, New Mexico. BIE programs also provide grants to two technical colleges and make available a variety of higher education scholarships, fellowships, and loans to eligible Indian students.
FY 2013 Enacted $21,334,000
FY 2013 Post Sequester $20,258,000
FY 2014 Enacted $20,354,000
FY 2015 Admin. Request $20,464,000
The Education Management subactivity consists of Education Program Management and Information Technology. The BIE manages a school system with 183 elementary and secondary schools and dormitories and two postsecondary institutions and administers grants and provides technical assistance to 28 TCUs and two tribal technical colleges.
American Indian Education Study Group’s draft proposal to redesign the BIE. The Budget Justification states:
BIE completed an in-depth review of its operations with the goal of improving the delivery of quality educational opportunities that improve student achievement, while simultaneously reducing administrative costs through the elimination of inefficient practices. BIE developed a plan that aligned with the outcomes of the in-depth review. Further development of this plan will reflect recommendations made by the American Indian Education Study Group convened by Secretary Jewell and Secretary of Education Arne Duncan after those recommendations have undergone tribal consultation. (IA-BIE-28)
INDIAN ARTS AND CRAFTS BOARD
As with past budget requests, the Administration continues to propose the transfer of the Indian Arts and Crafts Board (IACB) from the Office of the Secretary to the Operation of Indian Programs account. Over the past several FYs the IACB has been funded in an amount of $1,279,000 and the FY 2015 request is consistent with this amount. The IACB is responsible for overseeing the implementation and enforcement of the criminal and civil provisions of the Indian Arts and Crafts Act and with overseeing three museums. The Indian Arts and Crafts Act is a truth-in advertising law that prohibits the marketing of products as Indian made when such products are not made by American Indians or Alaska Natives. (IA-ACB-2)
FY 2013 Enacted $105,698,000
FY 2013 Post-Sequester $105,698,000
FY 2014 Enacted $110,124,000
FY 2015 Admin. Request $109,908,000
The Construction budget includes: Education Construction; Public Safety and Justice Construction; Resources Management Construction; and Other Program Construction.
FY 2013 Enacted $52,779,000
FY 2013 Post-Sequester $52,779,000
FY 2014 Enacted $55,285,000
FY 2015 Admin. Request $55,533,000
The Education Construction subactivities are: Replacement School Construction; Employee Housing Repair; and Facilities Improvement and Repair.
Replacement School Construction vs. Facilities Improvement and Repair. The Administration requests $3.2 million for Replacement School Construction (an increase of $2 million above FY 2014 Enacted level) the majority of which is for Phase I of the Beatrice Rafferty replacement school project; however, the Administration then requests a $2 million decrease for Facilities Improvement and Repair, leaving the Education Construction request essentially flat between FY 2014 and FY 2015.
PUBLIC SAFETY & JUSTICE (PS&J) CONSTRUCTION
FY 2013 Enacted $11,283,000
FY 2013 Post-Sequester $11,283,000
FY 2014 Enacted $11,306,000
FY 2015 Admin. Request $11,306,000
The Public Safety & Justice Construction subactivities are: Facilities Replacement/New Construction; Employee Housing; Facilities Improvement and Repair; Fire Safety Coordination; Fire Protection. For budget details by program, see page IA-ST-4 of the attached chart.
RESOURCES MANAGEMENT CONSTRUCTION
FY 2013 Enacted $32,657,000
FY 2013 Post-Sequester $32,657,000
FY 2014 Enacted $32,759,000
FY 2015 Admin. Request $34,427,000
The Resources Management Construction subactivities are: Irrigation Project Construction; Engineering and Supervision; Survey and Design; Federal Power and Compliance; and Dam Projects. For budget details by program, see pages IA-ST-4 and IA-ST-5 of the attached chart.
OTHER PROGRAM CONSTRUCTION
FY 2013 Enacted $8,979,000
FY 2013 Post-Sequester $8,979,000
FY 2014 Enacted $10,774,000
FY 2015 Admin. Request $8,642,000
The Other Program Construction subactivities are: Telecommunications Improvement and Repair; Facilities/Quarters Improvement and Repair; and Construction Program Management. For budget details by program, see page IA-ST-5 of the attached chart.
If we may provide additional information or assistance regarding FY 2015 Indian Affairs appropriations, please contact us at the information below.