The Trump administration’s Department of Government Efficiency has canceled or eliminated hundreds of millions of dollars in federal funding allocated to Indigenous communities, according to new research from the Brookings Institution. The cuts included approximately $468 million in total reductions, with about half targeting environmental and natural resources projects. Additional funding streams established by the 2022 Inflation Reduction Act were also terminated through the One Big Beautiful Bill Act, while roughly 11 percent of eliminated funds were designated for agriculture programs.
These reductions have disrupted numerous tribal initiatives, including climate resiliency plans, renewable energy projects, and employment programs. A notable example involves the Native Village of Kotzebue in Alaska, which lost a $20 million Environmental Protection Agency grant in May 2025 that would have supported a wind energy project. The project was designed to reduce the community’s diesel dependence from 75 percent to between 40 and 50 percent, providing greater energy independence and economic control. The Hopi Tribe was similarly affected when a $25 million solar installation program and the broader $7 billion Solar for All program were eliminated.
Researchers emphasize that the funding cuts represent a broader pattern of chronic underinvestment in Indigenous communities rather than an isolated policy shift. Rob Maxim of Brookings Metro noted that while the current administration’s actions are significant, underinvestment in tribal communities has been the historical norm, with post-pandemic funding levels representing an unusual aberration. Glencora Haskins, also at Brookings Metro, suggested that the administration applied a surface-level review of tribal funding programs without adequately examining the systemic infrastructure deficits these initiatives were designed to address.
Tribal leaders and policy experts argue that federal funding for Indigenous communities constitutes a legal obligation rooted in treaties and federal trust responsibilities. Maxim stated that this funding should be viewed as supporting tribal sovereignty and community well-being rather than discretionary spending. Brookings researchers recommend congressional action to establish statutory protections for tribal grants and contracts, prevent funding cancellations, and ensure direct payment flows to tribal governments rather than requiring reimbursement requests through the Treasury Department.
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