Policy pivots and political uncertainty continue to worry tribal entities

Change is hard, and uncertainty is uncomfortable. As the new administration continues to make major policy pivots and procedural changes with a federal workforce that has been significantly reduced in both size and tenure, almost every stakeholder group in America is stressed out. America’s tribal entities are no exception. 

As the new administration moves away from individual protections based on race and ethnicity, tribal leaders worry about the potential misclassification of their programs as diversity initiatives, which could lead to funding cuts and even threaten tribal sovereignty. The administration’s pivot away from environmental safeguards in favor of development may also put water rights and sacred sites at risk.

The executive branch has already made strong moves to eliminate programs and departments it sees as inefficient. The White House reduced the federal workforce, terminated thousands of office leases, and, in the case of the Department of Education, President Trump just signed an executive order eliminating an entire agency to make government administration less top-heavy and return decision-making to state and local authorities.

The Heritage Foundation’s Project 2025, a document that has been a strong predictor of the resident’s actions thus far, includes additional downsizing recommendations that may impact native health and housing programs administered by the Department of Housing and Urban Development (HUD). Trump says he intends to continue funding essential programs and services through other means, but the lack of transition details has tribal leaders concerned about program disruptions.

These are the policy changes and signals we’re watching to help tribal entities remain resilient and potentially capitalize on emerging opportunities:

Sovereignty and land rights

On March 15, 2025, Trump revoked 18 executive actions from the previous administration, including Executive Order 14112 on Tribal Sovereignty and Self-Governance. The original order, signed in 2023, was intended to strengthen tribal sovereignty, expand self-determination for the 574 federally recognized tribes and make it easier for Native Americans to access federal funding and have greater autonomy over its use.

In the statement accompanying the rescission, President Trump said these actions were necessary to “end radical ideology, eliminate wasteful regulations, and prioritize the interests of American citizens.” However, the document did not provide specific details regarding the reasoning behind the revocation of Order 14112, leading many tribal leaders to believe the administration may be conflating tribal sovereignty with DEI programs and worry about potential challenges to self-determination efforts.

Rollback of protections for habitats and sacred sites

The administration’s rollback of many environmental regulations poses challenges for tribal communities, affecting efforts in sustainable energy development, environmental protection and protections for sacred sites.

In early March, the EPA terminated $1.5 billion in clean energy funding agreements designated for tribal communities as part of a larger effort to retract grant programs the administration viewed as having questionable oversight. While those actions are being appealed in court, the funding retractions represent a significant setback for tribes’ energy sovereignty efforts. Until decided in court, projects and development programs have been halted across native communities in 27 states.

During the first Trump administration, two million acres were removed from national monuments. Tribal leaders have noted with concern that Project 2025 called for repealing the Antiquities Act of 1906. Its repeal could eliminate protections for Native American memorials and monuments in the west, potentially endangering land like the Baaj Nwaavjo I’tah Kukveni – Ancestral Footprints of the Grand Canyon National Monument, which contains thousands of sites that are considered sacred to tribal nations.

Water access is another top concern, both in Congress and the executive branch. A meeting agenda of the Senate Committee on Indian Affairs in early March listed eight separate bills dealing with water-rights disputes. The White House’s January 2025 memo, “Putting People Over Fish,” directed federal agencies to route more water from the Sacramento-San Joaquin Delta to support residential and agricultural activities in Southern California, fueling concerns among environmentalists and tribal communities about potential impacts on water quality and ecosystem health.

Trump’s future water policies are likely to mirror those of his first term, when he strongly favored development over habitat protections when it came to water access.

Federal workforce and office reductions

Federal workforce reductions led by the Department of Government Efficiency (DOGE) have exacerbated confusion and concern. With many agency and department contacts no longer working and policies and procedures changing frequently, it’s been challenging for tribal leaders and the media to get accurate, timely information. Processing of transactions, such as energy project permits on tribal lands, are also delayed.

In mid-March, DOGE terminated leases for 200 Bureau of Indian Affairs offices, including a regional hub in Ashland, Wisconsin, that assisted tribal communities with land-to-trust applications, real estate management and law enforcement. Until the Department of the Interior shares its plans, it’s uncertain whether those offices will merge with other outposts, find new spaces to lease or close entirely. At least in the short term, tribal members may have to travel longer distances for these services. They should call offices to verify hours before visiting.

Consolidations affecting education

Executive orders issued in January 2025 targeting DEI programs in higher education put funding for tribal colleges and universities at risk, potentially undermining educational opportunities for Native communities.

More recent announcements about eliminating the federal Department of Education could result in the dissolution of programs like Head Start, which gives 44,000 Native families access to affordable childcare and early childhood education.

The administration has said it will continue to fund essential services for low-income families even if the Department of Education is dismantled — and that it intends to transfer authority over education from the federal government to state and local entities. That suggests funding will continue and that tribal entities could end up having more local control. However, the lack of an announced transition plan has created anxiety among parents whose livelihoods depend on affordable childcare. Nearly all tribal lands are in rural areas deemed “childcare deserts.”

Consolidations affecting healthcare

Tribal leaders have also expressed concern about a Project 2025 proposal to dismantle the Indian Health Service (IHS) in favor of private, for-profit healthcare providers. The program has been chronically underfunded and many of its hospitals and clinics operate with outdated equipment. Poorer health outcomes among Indigenous populations suggest disparities in quality of care exist between IHS and other federally funded healthcare programs like Medicare and Medicaid.

Should this shift take place, it could be an opportunity for private clinics to expand into tribal communities and improve the quality of care for native populations. However, leaders worry about a disruption in healthcare access, at least in the short term. IHS serves approximately 2.8 million American Indian and Alaska Natives within all 574 federally recognized tribal groups, operating 24 hospitals and more than 100 clinics. While the agency does not have exclusive status, it is often the only available provider in remote communities.

Consolidations in housing programs

Project 2025 recommends moving Indian housing programs from HUD to the Department of the Interior. This change could affect the largest source of housing assistance for native communities, the Indian Housing Block Grant, which provided $150 million in grants in FY 2024.

Shifting these housing programs to the Department of the Interior may lead to changes in program administration and affect how tribes access and manage housing resources. Such restructuring could disrupt existing housing programs and delay the implementation of new projects in tribal communities.

Recommendations

While the status of all these potential policy changes is “wait and see,” tribal entities can take steps to mitigate the possible impacts of program disruptions. Right now, they can:

1. Help ensure compliance with federal agencies: It’s easy to be distracted by the headlines and the many “possibles” and “what ifs.” Program administrators should remember that signed contracts and grant agreements are the only things that matter for compliance. Follow those rules until specifically told otherwise.
2. Strengthen internal governance and upgrade technology: Enhancing financial management and operational efficiency can help tribes handle funding fluctuations and policy changes. Investing in data-driven systems can help identify operational efficiencies and help ensure compliance.
3. Use available tax credit incentives: Energy tax credits made available through the Inflation Reduction Act are still active and can help reduce the cost of capital projects and ongoing utility costs. Technology upgrades may also be eligible for these credits. 
4. Engage in advocacy: Tribal leaders can proactively communicate with federal and state officials to advocate for the preservation of funding and recognition of tribal programs. Engage with coalitions of regional, national and tribal associations to amplify your voice.

How Wipfli can help

Wipfli’s comprehensive suite of services, including financial management, strategic planning, regulatory support and technology solutions, can support tribal entities in this dynamic environment. Learn more about our services for tribal gaming and government entities, and for continuous updates on administration policies impacting the tax and energy sector, follow our policy updates page.