Hearings to examine impacts of government shutdowns and agency reductions in force on Native communities

Tribal Programs and FundingSenate Indian Affairs · October 29, 2025 · 119th Congress
The Senate Committee on Indian Affairs convened this hearing (October 29, 2025) to examine how the ongoing federal government shutdown and related reductions in force (RIFs) are disrupting trust and treaty obligations to Native communities, including impacts on SNAP, Head Start, Indian education, health care, and Native financial institutions. Begins at ▶ 0:11:30
Transcript
Highlights

Title

Government shutdown and agency reductions in force harm Native communities

Purpose

The Senate Committee on Indian Affairs convened this hearing (October 29, 2025) to examine how the ongoing federal government shutdown and related reductions in force (RIFs) are disrupting trust and treaty obligations to Native communities, including impacts on SNAP, Head Start, Indian education, health care, and Native financial institutions. Chair Lisa Murkowski and Vice Chair Schatz heard testimony from tribal and Native organization leaders on how staff terminations and lapsed appropriations are compounding harm beyond the shutdown itself. Begins at▶ 0:11:30

Who spoke

• Chair Lisa Murkowski (R-AK)▶ 0:11:30: Opened by calling Congress's failure to fund the government "inexcusable"▶ 0:11:30 and noted advance appropriations secured in FY23 have kept IHS facilities operating with minimal disruption▶ 0:13:26; described RIFs at the Native CDFI Fund, Office of Indian Education, and Impact Aid office▶ 0:13:57▶ 0:14:21; later asked follow-up questions on LIHEAP funding delays▶ 1:17:14 and closed the hearing▶ 1:22:07.

• Vice Chair Brian Schatz (D-HI)▶ 0:15:41: Said trust and treaty obligations "do not vanish" during shutdowns but are put at risk▶ 0:15:41, noted the shutdown is on day 29 and on track to be the longest on record▶ 0:16:52; said RIFs are a "choice" unrelated to the shutdown itself under the Antideficiency Act▶ 0:17:22; argued Native programs "are not D.E.I. spending... They are the law"▶ 0:17:53; later pressed witnesses to separate shutdown-caused harms from RIF-caused harms▶ 1:11:56▶ 1:14:06.

• Sarah Harris, Vice Chairwoman, Mohegan Tribe / Secretary, Sovereignty Protection Fund▶ 0:20:58: Testified the Coalition of Tribal Sovereignty has sent over 50 letters to the executive branch since February▶ 0:24:53; said the Penobscot Nation board president could not testify because he was reallocating over $200,000 to bridge a SNAP funding gap▶ 0:22:24; said at least 12 member nations lack LIHEAP assistance▶ 0:22:47; later described tribes taking out lines of credit and supplementing SNAP and daycare funding themselves amid a total lack of transparency▶ 1:10:03▶ 1:10:56▶ 1:12:23.

• Ben Mallott, President, Alaska Federation of Natives▶ 0:26:40: Described the October 12 Alaska typhoon that evacuated thousands of Alaska Natives to Anchorage and said advance IHS funding allowed immediate storm response▶ 0:28:27▶ 0:28:57; cited Alaska grocery prices (milk $12.99) amid looming SNAP cuts▶ 0:29:25; said the Federal Subsistence Board cannot meet during the shutdown▶ 0:30:57; later said LIHEAP funding expected November 1 will likely not arrive, forcing elders to choose between medication, food and heat▶ 1:17:40▶ 1:18:02.

• Mr. Byrd, President, National Indian Education Association▶ 0:32:25: Said the Office of Impact Aid, which provides $1.6 billion annually to affected school districts, has stalled with staff furloughed over a month▶ 0:33:50; said 12 Head Start grantees serving 2,500+ children face funding shortfalls beginning November 1▶ 0:34:20; said as of 15 minutes prior, 7 of 9 staff in the Office of Indian Education were confirmed terminated▶ 0:37:05; confirmed to Murkowski that the office, which awarded 28 Alaska Native education grants last month, now has no one to administer grants▶ 1:04:07▶ 1:05:00.

• Pete Upton, CEO, Native CDFI Network▶ 0:38:28: Said the October 10 RIF action seeks to terminate all CDFI Fund staff and abolish the Fund, threatening the 46% of tribal communities in banking deserts▶ 0:39:12▶ 0:39:41; said FY25 appropriated CDFI assistance funds remain frozen with no Treasury staff to release them▶ 0:40:12; said about $6 billion in annual Fund awards is administered by roughly 81 employees, none currently processing certifications▶ 0:56:00; told Smith that native-led organizations receive under 2% of total philanthropy, making CDFI certification critical to attracting private capital▶ 1:08:18.

• Witness, CEO, National Indian Health Board▶ 0:43:24: Said HHS administers over $12 billion in Native-related funding but lacks a comprehensive crosscut showing how dollars reach tribes▶ 0:44:16; said advance appropriations have kept IHS fully operating with no closures or furloughs during the shutdown▶ 0:45:14; cited roughly $1.3 billion across six IHS accounts not covered by advance appropriations▶ 0:45:44; said IHS faces a 30% overall vacancy rate and 43% of facilities are so thinly staffed that losing one physician could force closure▶ 0:47:07▶ 0:47:32.

• Sen. Tina Smith (D-MN)▶ 0:53:48: Questioned Upton on the impact of eliminating the CDFI Fund on tribal homeownership, noting none of the three largest U.S. home lenders issue federally guaranteed mortgages for new construction on tribal lands▶ 0:54:36; pressed Harris on SNAP disruption and cuts under the "One Big Beautiful Bill"▶ 0:57:59.

Key moments

• Byrd revealed that as of the hearing, 7 of 9 staff in the Department of Education's Office of Indian Education had just been confirmed terminated, leaving no one to process grants for 537 Indian-serving school districts▶ 0:37:05▶ 0:37:33.

• Upton said abolishing the CDFI Fund would eliminate the federal certification "golden stamp" that native CDFIs need to attract private and philanthropic investment, at an 8-to-1 leverage rate▶ 0:53:25▶ 1:08:50.

• Harris said the Penobscot Nation's board president missed the hearing because he was reallocating over $200,000 in tribal funds to cover a November SNAP gap, including asking hunters to donate food for elders▶ 0:22:24.

• The National Indian Health Board witness said IHS's inability to sustain operations during a past shutdown contributed to the loss of 10 community members' lives in one tribal community, and that 43% of IHS facilities are one physician away from possible closure▶ 0:45:14▶ 0:47:32.

• Schatz pressed Harris on whether shutdown effects and RIF effects can be disentangled; Harris said RIFs have caused confusion over who is furloughed versus permanently terminated, and that Indian Affairs staffing has fallen from about 8,000 during the 2013 shutdown to about 6,000 now▶ 1:11:56▶ 1:12:37.

• Mallott said Alaska's Federal Subsistence Board cannot meet during the shutdown, delaying local food-security decisions potentially by months given Alaska's travel difficulties▶ 0:30:57▶ 0:31:24.

• Murkowski described lost subsistence food stores (freezers of berries) after the Alaska typhoon knocked out village power, compounding families' reliance on SNAP for winter▶ 1:01:10▶ 1:01:42.

• Upton said the CDFI Fund's relending program had, in 2019, produced more home loans for two native CDFIs in one year than the USDA had produced in ten years, and that fund elimination could set tribal housing progress back 10-15 years▶ 0:52:11▶ 0:53:06.

• Harris said 105 GOP members of Congress sent a letter last week supporting the CDFI Fund, calling it evidence CDFIs are "not a partisan issue"▶ 0:42:53 (attributed in testimony to Upton's written statement, delivered by Upton)▶ 0:42:53.

• Byrd said Department of Education's Office of Elementary and Secondary Education has shrunk from 282 employees a year ago to fewer than 100, with over 130 positions eliminated per recent court filings▶ 0:36:36.

Metadata

CommitteeSenate Indian Affairs
Chamber / CongressSenate · 119th Congress
DateOctober 29, 2025
TypeMeeting
Witnesses
(none listed in event metadata)
Videosenate-isvp
Transcript162 caption blocks · 9,612 words · 1:22:19 runtime
EventCongress.gov 337590