Oversight Hearing on: "Modernizing the Implementation of 638 Contracting at the Indian Health Service

Tribal Programs and FundingHouse Natural Resources Subcommittee on Indian and Insular Affairs · December 11, 2025 · 119th Congress
The House Natural Resources Subcommittee on Indian and Insular Affairs held this oversight hearing to examine how the Indian Health Service implements Title I self-determination contracts and Title V self-governance compacts under Public Law 93-638, and to scrutinize IHS's proposed strategic realignment amid inconsistent area-office performance, staffing vacancies, and delayed contract processing. Begins at ▶ 0:07:34
Transcript
Highlights

Title

Modernizing IHS 638 Tribal Health Contracting and Proposed Agency Realignment

Purpose

The House Natural Resources Subcommittee on Indian and Insular Affairs held this oversight hearing to examine how the Indian Health Service implements Title I self-determination contracts and Title V self-governance compacts under Public Law 93-638, and to scrutinize IHS's proposed strategic realignment amid inconsistent area-office performance, staffing vacancies, and delayed contract processing. Two panels testified: IHS Deputy Director Benjamin Smith, followed by tribal leaders Chuck Hoskin Jr. (Cherokee Nation), Greg Abrahamson (Spokane Tribe), Jay Spaan (SGCETC), and Victoria Kitcheyan (Winnebago Tribe of Nebraska). Begins at▶ 0:07:34

Who spoke

• Chairman Hurd▶ 0:07:34: Opened the hearing on modernizing 638 contracting, noting tribes now manage the majority of the IHS budget▶ 0:08:53, citing GAO's high-risk designation since 2017▶ 0:10:03, and outlining IHS's proposed strategic realignment▶ 0:11:23.

• Ranking Member Leger Fernandez▶ 0:12:27: Praised tribal self-determination successes but raised concerns about the Trump administration rescinding Executive Order 14112▶ 0:15:31 and a 30% IHS vacancy rate▶ 0:15:55; announced legislation to let tribes blend SAMHSA, CDC, and IHS funding▶ 0:18:06.

• Ranking Member Huffman (House Natural Resources)▶ 0:19:22: Entered a climate report into the record▶ 0:19:22; detailed chaotic attempted layoffs of 2,200 then 950 IHS employees followed by rescissions, plus over 1,000 departures since the administration took office▶ 0:21:38▶ 0:22:30.

• Mr. Benjamin Smith, IHS Deputy Director▶ 0:24:37: Testified IHS oversees 600+ facilities and 41 urban Indian organizations serving 2.8 million patients▶ 0:26:12, with 62% of the IHS budget now tribally managed via 247 Title I contracts and 114 compacts▶ 0:28:30▶ 0:29:41; said facilities average 41 years old▶ 0:33:24 and only three staff manage over 1,200 Section 105(l) leases annually▶ 0:44:58; repeatedly declined to commit to holding an in-person realignment consultation in New Mexico▶ 0:39:04▶ 0:40:46.

• Rep. Radewagen▶ 0:30:38: Asked what operational or structural steps IHS could take to support broader 638 implementation▶ 0:31:01; later asked Chief Hoskin what reforms would help smaller tribes with limited capacity▶ 1:32:04.

• Rep. Leger Fernandez (questioning)▶ 0:35:32: Pressed Smith on whether area offices would retain decision-making authority, receiving only a conditional "it depends"▶ 0:38:43.

• Rep. McDowell▶ 0:40:46: Framed 638 modernization around local control and federal efficiency, citing the Lumbee Tribe's pending federal recognition▶ 0:42:18; Smith responded that three staff handle 1,200+ leases annually▶ 0:44:58.

• Rep. Randall (Washington, first panel)▶ 0:46:11: Questioned the shortened one-week consultation window after the December 5 realignment notice▶ 0:46:34 and cited the Nisqually Tribe's six-month wait for an amendment response delaying a residential treatment facility▶ 0:50:47.

• Rep. Downing (Montana)▶ 0:51:35: Entered a Little Shell Band letter into the record▶ 0:52:00; highlighted the tribe's July 2025 assumption of its health clinic▶ 0:52:28 and asked how realignment balances standardization with regional differences▶ 0:53:29.

• Rep. Hoyle (Oregon, first panel)▶ 0:57:25: Asked about expanding Purchased/Referred Care delivery areas for restored western Oregon tribes terminated in 1954▶ 0:58:38▶ 0:59:06.

• Chairman Hurd (questioning)▶ 1:02:03: Asked how IHS tracks area-office timelines and staffing, noting Title V has no set negotiation timelines▶ 1:02:32▶ 1:03:26, and how success in 638 implementation should be measured▶ 1:06:14.

• The Honorable Chuck Hoskin, Principal Chief, Cherokee Nation▶ 1:09:50: Testified Cherokee Nation, with 470,000 citizens, handled over 2 million patient visits last year▶ 1:11:11; described taking over Claremore Indian Hospital and investing $11 million immediately▶ 1:12:03; alleged IHS headquarters overruled area-office decisions and funded a duplicative program on Cherokee's reservation▶ 1:14:40▶ 1:15:23; described integrating behavioral health and a peer recovery program for fluent Cherokee speakers▶ 1:49:18.

• The Honorable Greg Abrahamson, Chairman, Spokane Tribe of Indians▶ 1:15:48: Described the tribe's April 2025 assumption of its health clinic▶ 1:18:24 and said RPMS-to-new-system transition disrupted pharmacy, billing, and referrals▶ 1:19:20▶ 1:52:05.

• Mr. Jay Spaan, Executive Director, SGCETC▶ 1:20:56: Said tribes now administer 65% of the IHS budget▶ 1:21:24; criticized the truncated December 5 consultation notice▶ 1:22:17 and warned centralizing negotiations at a new national office could add delays and weaken relationship-based negotiation▶ 1:23:09.

• The Honorable Victoria Kitcheyan, Council Member, Winnebago Tribe of Nebraska [1:20:56 panel intro; first speech 1:25:51]: Described the tribe's 2018 takeover of a hospital that had lost CMS certification amid "immediate jeopardy" violations▶ 1:26:21▶ 1:27:14, and revenue growth from $6 million to nearly $30 million▶ 1:28:06; recommended uniform performance metrics and a 638 implementation manual modeled on the BIA's▶ 1:29:21▶ 1:29:46.

• Rep. Kennedy (Utah)▶ 1:42:12: Asked Chief Hoskin how area-office inconsistency affects long-term planning▶ 1:43:02 and Kitcheyan how area variation affected Winnebago's 638 expansion▶ 1:45:18.

• Rep. Grijalva (Arizona)▶ 1:57:41: Raised concerns that "modernization" could mean staffing cuts▶ 1:59:18 and asked Spaan about the consequences of inadequate consultation▶ 1:59:42.

Key moments

• Smith testified IHS transfers approximately $3 billion of its budget to tribes and tribal organizations through 247 Title I contracts and 114 compacts/141 funding agreements▶ 0:28:55.

• Rep. Randall detailed the Nisqually Tribe's March 2025 amendment request that went unanswered until September 5, still pending, blocking a residential treatment facility▶ 0:50:47▶ 0:51:11.

• Chief Hoskin alleged IHS headquarters recently funded a separate tribe within Cherokee Nation's own reservation to duplicate its health services, calling it worthy of investigation into "fleecing of taxpayer dollars"▶ 1:15:23.

• Spaan disclosed IHS gave tribes only about one week's notice (December 5) before the first realignment consultation, despite IHS policy calling for at least 30 days▶ 1:38:19.

• Abrahamson described the RPMS-to-new-EHR transition disrupting pharmacy operations and referrals after Spokane Tribe assumed its clinic, forcing staff to revert to paper processes▶ 1:52:05.

• Kitcheyan said Winnebago's hospital lost CMS Medicaid certification in 2015 after "immediate jeopardy" violations, including untrained nurses and patients later life-flighted after being sent home▶ 1:26:50▶ 1:27:14; certification was restored in April 2023▶ 1:27:40.

• Chief Hoskin said advance appropriations (FY24–26) allowed tribes to remain "balanced-budget" during the longest federal government shutdown in U.S. history, and urged Congress to make IHS funding mandatory▶ 1:54:58.

• Smith acknowledged only three IHS staff manage over 1,200 Section 105(l) leases annually▶ 0:44:58, and that facilities average 41 years old — three times older than private-sector facilities▶ 0:33:24.

• Kitcheyan said her Great Plains area director reported spending 90% of his time on direct-service tribes, leaving little capacity for self-governance tribes like Winnebago▶ 1:30:10.

• Spaan and multiple tribal witnesses disputed IHS's proposed centralization of negotiations, warning it would shift the process from "relationship-based" to "transactional" and could slow routine matters awaiting headquarters approval▶ 1:23:09▶ 1:41:13.

Metadata

CommitteeHouse Natural Resources Subcommittee on Indian and Insular Affairs
Chamber / CongressHouse · 119th Congress
DateDecember 11, 2025
TypeHearing
Witnesses
The Honorable Chuck Hoskin — Principal Chief, Cherokee Nation
Mr. Jay Spaan — Executive Director, Self-Governance Communication & Education Tribal Consortium (SGCETC)
Mr. Benjamin Smith — Deputy Director, U.S. Department of Health and Human Services
The Honorable Greg Abrahamson — Chairman, Spokane Tribe of Indians
The Honorable Victoria Kitcheyan — Council Member, Winnebago Tribe of Nebraska
Videoyoutube
Transcript271 caption blocks · 17,608 words · 2:03:38 runtime
EventCongress.gov 118725