President’s Budget Proposes Increase for Indian Health Service, Stable Funding for Urban Indian Health for FY 2026

On May 30, the President released the full Fiscal Year (FY) 2026 Department of Health and Human Services Budget In Brief. The budget “prioritizes funding for IHS,” proposing $8.1 billion for the Indian Health Service, and level funding for urban Indian health. Notably, the Secretary emphasizes the trust obligation for American Indian and Alaska Native people: “HHS has a unique responsibility to provide healthcare for tribes on remote reservations and other vulnerable communities in Indian Country.” The proposal also includes $80 million for a new Native American Behavioral Health and Substance Use Disorder program, and reauthorizes the Special Diabetes Program for Indians (SDPI) at its current funding.

“The budget prioritizes funding for IHS, providing $7.9 billion to fulfill our promises to tribal nations. In particular, the budget prioritizes funding for direct health services as well as funding for staffing and operational costs of new facilities opening in FY 2026. This investment will ensure access to care in remote and underserved communities. Within AHA, the budget includes $80 million for a newly funded Native American Behavioral Health and Substance Use Disorder program. It will provide funding directly to tribes to support culturally tailored mental health, prevention, and treatment efforts for behavioral health issues in Indian Country.”

– FY2026 Budget in Brief (May 30, 2025)

Next Steps

The FY 2026 proposal serves as a statement of the Administration’s policy and funding priorities. The budget acts primarily as a symbolic blueprint of the President’s vision for the size and scope of the federal government. The final appropriations will be determined through the Congressional budget process. The House and Senate Appropriations Committees are currently crafting their respective FY 2026 funding bills.

IHS Acting Director Ben Smith and Finance Director Jillian Curtis will testify before the House Appropriations Committee on Thursday, June 5.

NCUIH has stood alongside Tribes, Urban Indian Organizations and the community to advocate for stable and secure resources for the Indian Health System. NCUIH will continue to engage with lawmakers to ensure the Indian Health System and all Tribal programs receive the resources they need.

A more detailed NCUIH analysis of the budget will be released next week.

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NCUIH Contact:Meredith Raimondi, Vice President of Policy and Communications, mraimondi@ncuih.org