What the FY 2026 Funding Package Means for Tribal Health Systems

On  February 3, 2026, President Trump signed the Defense, Homeland Security, Labor, Health and Human Services, Education, and Related Agencies, and Transportation, Housing and Urban Development, and Related Agencies funding package, ending the brief partial government shutdown, and providing critical public health extender funding. The funding package includes Fiscal Year (FY) 2026 funding for all remaining accounts except Homeland Security, which has been funded by a 2-week continuing resolution. The explanatory statement that accompanies the legislation can be found here.

Congress provided increased funding for many critical Tribal health programs at the Department of Health and Human Services (HHS), such as the Improving Native American Cancer Outcomes, which received $9 million, a 33% increase over FY 2025.  Additionally, Congress invested millions of dollars in Tribal behavioral and mental health funding, like $26.66 million in the Native Connections program, that provides grant funding to prevent suicide and substance misuse, reduce the impact of trauma, and promote mental health among American Indian and Alaska Native (AI/AN) youth through age 24. The spending package also included several key health care and public health extenders, including essential extenders for Medicare and Medicaid, the Special Diabetes Programs for Indians (SDPI), and telehealth flexibilities.

Indian Health Service (IHS) facilities, Tribal Health Organizations, and Urban Indian Organizations rely heavily on funding from programs and grants across HHS, which alongside IHS funding provides the vast majority of resources for Tribal health.

Health and Human Services Tribal Funding Highlights:

  • Administration for Community Living:
    • Native American Caregiver Supportive Services – $14 million ($2 million increase)
    • Grants for Native Americans – $40.264 million ($2 million increase)
  • Substance Abuse and Mental Health Services Administration (SAMHSA) –
    • Tribal Behavioral Health Grants $26.665 million ($3 million increase)
    • Tribal Behavioral Grants – $26.25 million ($3.5 million increase)
    • American Indian and Alaska Native Zero Suicide – $4.4 million ($1 million increase)
    • American Indian and Alaska Native Suicide Prevention – $4.931 million ($1 million increase)
    • Tribal Opioid Response Grant – $67.8 million ($6.7 million increase)
    • Medication Assisted Treatment Tribal Set Aside – $15.5 million ($1 million increase)
  • Health Resources and Services Administration (HRSA) –
    • Centers of Excellence – $25.42 million
  • Centers for Disease Control:
    • Good Health and Wellness in Indian Country – $27 million ($3 million increase)
  • Office of the Secretary General Departmental Management:
    • Center for Indigenous Innovation and Health – $6 million
    • Minority HIV/AIDS Prevention and Treatment Tribal Set Aside – $6 million

Public Health Extenders:

In addition to providing FY 2026 funding for HHS, the legislation also includes several critical public health extenders. Congress provided a substantial, $41 million increase for SDPI, funding the program at $200 million for FY 2026. This includes $50,410,959 for the remaining part of 2026. This fulfils a long-standing ask to increase SPDI to $200 million annually. SDPI is the nation’s most effective federal initiative for combating diabetes in Indian Country. Over nearly three decades, SDPI has achieved a 54% reduction in end-stage renal disease and contributed to an 84% reduction in hospitalizations for uncontrolled diabetes.

Additionally, the legislation extends Medicare telehealth flexibilities, including audio-only telehealth, as well as increases funding for Community Health Centers to $4.6 billion for FY 2026. It also provides an extension of funding for the National Health Service Corps and Teaching Health Centers that operate graduate medical education programs. Many Tribal Health Organizations and Urban Indian Organizations benefit from the National Health Service Corps program and receive Community Health Center funding.

Indian Health Service Funding:

Previously, NIHB and IHS reported that the Interior, Environment, and Related Agencies Appropriations Act included a small decrease in funding for FY 2026 for the IHS. This was reported in error, due to the IHS’ estimations for FY 2026 105(l) Lease Payments and Contract Support Costs (CSCs) being lower than the IHS’ estimations for FY 2025. However, 105(l) Lease Payments and CSC will continue to be provided for at the level necessary (such sums which may be necessary), regardless of the IHS or Congress’ estimations. Additionally, Congress provided a total of $5.05 billion for IHS services, representing a 1.3% increase over FY 2025 and $809.22 million for IHS facilities, representing a 1.1% increase over FY 2025. The IHS is funded at a full total of $5.86 billion for services and facilities, an increase of 1.3% over FY 2025.

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