FY 2026 “Skinny” Budget Request Raises Concerns for Tribal Early Childhood and Education Programs

On May 2, 2025, the White House Office of Management and Budget (OMB) released the President’s Fiscal Year (FY) 2026 “Skinny” Budget Request. This preliminary document outlines the administration’s topline funding priorities across federal agencies and serves as a starting point for Congressional negotiations in the annual budget process.

While not yet a full proposal, this initial budget request calls for a 23% reduction in non-defense discretionary spending compared to FY 2025 levels. Although detailed line-item justifications are expected in the forthcoming full budget, this early framework raises concerns for Tribal early childhood and education programs that rely on consistent, dedicated federal funding.

What Is a “Skinny” Budget?

The “skinny” budget is an abbreviated version of the President’s budget request, typically released by new administrations as an outline of high-level fiscal priorities. It offers broad insight into proposed funding levels and structural changes, but does not yet include full program-level detail. A more comprehensive version—including agency-specific justifications—is expected soon.

Highlights and Potential Impacts for Tribal Education and Child Care

U.S. Department of Education (ED)

• Program Consolidation: The budget proposes merging 18 formula and competitive grant programs into a single $2 billion flexible block grant to states. While intended to streamline administration, this approach may reduce targeted investments in vulnerable populations if not carefully implemented.

• Overall Reductions: A $289 million reduction (87%) is proposed across Education Department programs, though Native-specific programs are not currently included in those cuts.

• Charter Schools: An increase of $60 million is proposed for charter schools, raising total funding to $500 million nationwide.

• Professional Development: Several educator support programs, including Title II-A, may be consolidated, though no specific details were provided on the future structure of these funds.

Bureau of Indian Education (BIE)

• School Construction Cuts: A proposed $187 million reduction (70%) for BIE school construction. The administration cites program management and performance concerns, but the proposed scale of reduction may significantly affect Tribal communities seeking to modernize outdated and unsafe learning facilities.

U.S. Department of Health and Human Services (HHS)

• SAMHSA Cuts: A $1 billion reduction is proposed for the Substance Abuse and Mental Health Services Administration (SAMHSA), including elimination of key mental health and substance use prevention programs. Because these programs are not covered by state block grants, Tribes may be disproportionately affected.

• ACF Program Eliminations: Proposed eliminations include the Community Services Block Grant and the Low-Income Home Energy Assistance Program (LIHEAP). These programs often support wraparound services for children and families in Tribal communities.

• Head Start: While there have been broader discussions around the future of Head Start, the program is not proposed for elimination in this version of the budget.

What This Means for Tribal Early Childhood Programs

While Native-specific programs have not yet been targeted for cuts, the proposed reductions across agencies—particularly in school infrastructure, mental health services, and foundational family supports—are likely to have indirect impacts on Tribal early childhood systems.

The potential consolidation of education and child care funding into broad block grants raises additional concerns about the preservation of Tribal set-asides, culturally grounded programming, and the unique government-to-government relationships that Tribal Nations maintain with federal agencies.

What’s Next?

This “skinny” budget is the first step in a long federal budgeting process. Congress must now draft, negotiate, and pass appropriations bills. The full FY 2026 budget proposal—including detailed justifications from each agency—is expected to be released in the coming weeks.

NICCA is closely monitoring these developments and will continue advocating for:

• Preservation of Native-specific early childhood programs and funding streams

• Transparency in any program consolidations or structural changes

• Protection of Tribal set-asides and recognition of Tribal sovereignty in funding allocations

📢 Stay Informed and Engaged

• Sign up for NICCA’s policy alerts and updates at www.nicca.us

• Reach out to your Members of Congress to share how proposed budget changes could impact your program

• Read the Tribal Analysis of the President's Budget from the Coalition for Tribal Sovereignty.

NICCA remains committed to ensuring that Tribal early childhood voices are heard at every step of the federal budget process—and that our children and communities continue to have the support they need to thrive.