January 16, 2025

On January 7, 2025, the Indian Health Service (IHS) announced the Fiscal Year (FY) 2025 allocation decisions for the $700 million appropriated to the IHS in the Infrastructure Investment and Jobs Act (IIJA). The IIJA appropriates $700 million in each year from FY 2022 through FY 2026, for a total of $3.5 billion for the IHS Sanitation Facilities Construction (SFC) program. The funding appropriated through the IIJA is significant for the Indian Health System, and USET SPF has urged IHS to ensure maximum utility and benefit through the distribution of funds.

The IHS did not hold a Tribal Consultation for FY 2025 funding. However, they utilized the recommendations gathered through Tribal Consultation conducted prior to allocating the portion of funds available for FY 2024. USET SPF previously submitted comments to IHS on this topic in 2021, 2023, and 2024 during previous consultation cycles.

According to IHS, the FY 2025 allocation decisions incorporate Tribal feedback by using current SDS data to prioritize projects that have completed the planning phase and can be immediately moved into the design and construction phase. USET SPF’s previous comments urged IHS to ensure that those Tribal Nations without shovel-ready projects receive equitable access to funding and support. This is especially important in the USET SPF region where there are no Tier 1 projects on the SDS list. However, despite the stated recommendation from Tribal Nations to provide funding for supporting Tier 2 and 3 projects in transitioning to Tier 1, the agency has again chosen to allocate funding only to support Tier 1 projects and previously funded SDS projects.

Additional details, including a narrative justification of the agency’s decision regarding the allocation of IIJA funding, can be found in the Dear Tribal Leader Letter. IHS did not provide an opportunity to comment on the FY 2025 allocation, but USET SPF will continue to advocate for our membership’s priorities in any future consultation opportunities on IIJA funding.

For more information, please contact Ashton Martin, Health Policy Analyst, at amartin@usetinc.org or Leigh Mitchell, USET SPF Senior Policy Analyst, at lmitchell@usetinc.org.

Did someone forward this email to you? Sign up to receive updates from the USET Tribal Infrastructure Development Program directly in your inbox. 

Established in 1969, the United South and Eastern Tribes, Inc. (USET) is a non-profit, inter-Tribal organization serving thirty-three (33) federally recognized Tribal Nations from the Northeastern Woodlands to the Everglades and across the Gulf of Mexico. USET is dedicated to enhancing the development of Tribal Nations, improving the capabilities of Tribal governments, and improving the quality of life for Indian people through a variety of technical and supportive programmatic services.

Established in 2014, the USET Sovereignty Protection Fund (USET SPF) is a non-profit, inter-Tribal organization advocating on behalf of thirty-three (33) federally recognized Tribal Nations from the Northeastern Woodlands to the Everglades and across the Gulf of Mexico. USET SPF is dedicated to promoting, protecting, and advancing the inherent sovereign rights and authorities of Tribal Nations and in assisting its membership in dealing effectively with public policy issues.