Brookings report finds funding gaps in Indian Country due to federal cuts

A joint report by Brookings Metro and the American Indian College Fund reveals a significant decline in funding for Native American communities. Following historic investments during the COVID-19 pandemic, recent federal policy actions and spending cuts have reduced support for critical areas such as clean energy, food assistance, and healthcare.

The analysis notes that the cancellation of grants and contracts under the One Big Beautiful Bill Act (OBBBA) of 2025 has exacerbated existing gaps. The report argues these reductions may violate the federal government’s trust and treaty obligations to Tribal nations.

Philanthropic support also remains insufficient. Currently, less than 1% of U.S. philanthropic investment serves Indian Country, with only 51 cents of every dollar going to organizations that exclusively serve Native people and communities. The authors suggest that policymakers and philanthropic organizations must reform their approaches and better utilize mandatory congressional funding to address these disparities.