Understanding the Senate Budget Bill: Impacts on Tribal Communities and the Nation

As federal budget negotiations unfold, national organizations have released critical analyses of the Senate’s reconciliation and budget proposals. These insights reveal sweeping policy shifts that could significantly impact Tribal nations, low-income families, and state and local programs that support children and families. The proposed Senate bill includes major changes to tax structures, Medicaid eligibility, and state funding capacity—many of which raise serious concerns about equity, economic stability, and community well-being.

Below, we summarize the findings of several respected policy organizations to help our communities and partners better understand what’s at stake and where to focus advocacy efforts.

📊 Institute on Taxation and Economic Policy (ITEP): Analysis of Tax Provisions in Senate Reconciliation Bill

ITEP’s analysis highlights how the proposed tax changes in the Senate reconciliation bill heavily favor the wealthiest Americans and large corporations. While the bill includes some modest benefits for middle- and lower-income households, these are far outweighed by regressive tax cuts that increase after-tax income disparities. Notably, the bill would:

• Extend and expand corporate tax breaks

• Provide larger tax cuts to households in the top income brackets

• Scale back credits that benefit working families

The analysis warns that these provisions will exacerbate inequality and reduce federal revenues needed to support critical programs. 🔗 Read the full ITEP analysis

🏥 Center on Budget and Policy Priorities (CBPP) – Medicaid Work Requirements: Senate Bill Expands Medicaid Work Requirements to Include Some Parents, Would Take Coverage Away From Many

CBPP’s health-focused brief critiques the Senate proposal to impose work requirements on Medicaid coverage for low-income parents. The analysis finds that this policy change would disproportionately affect families already facing barriers to employment—such as lack of child care, transportation, or stable housing.

Key findings include:

• Many parents would lose coverage not because they are unwilling to work, but because of red tape or unstable job conditions

• The requirement could harm children indirectly if their parents lose coverage and access to preventive care

• States would face additional administrative burdens

The report calls the policy both punitive and counterproductive to public health outcomes. 🔗 Read the CBPP health brief

🧾 Center for American Progress (CAP): 8 Ways the Senate Budget Bill Is More Extreme Than the House-Passed Big, Beautiful Bill

CAP outlines how the Senate’s proposal marks a significant departure from the House version, with more extreme cuts and policy shifts. The report identifies eight specific areas where the Senate bill is more harmful, including:

• Deeper cuts to social safety net programs

• Increased barriers to accessing health care and child care

• Rollbacks of clean energy investments

• Attacks on equity-focused programs

CAP characterizes the Senate bill as an austerity-first approach that undermines working families and communities of color while delivering giveaways to the wealthiest. 🔗 Read the full CAP analysis

💰 Center on Budget and Policy Priorities (CBPP) – State Budgets: Roundup: State Budgets Increasingly Strained as House, Senate Advance Deep Cuts

This CBPP brief compiles evidence that both the House and Senate budget proposals would significantly reduce federal support to states, putting immense strain on already stretched state budgets. For Tribal and rural communities, the impact could be particularly acute as states lose funding for programs in education, health, and infrastructure.

Highlights include:

• Projected losses in Medicaid and SNAP funding

• Reduced federal grants for early childhood education and family services

• Long-term risks to state fiscal stability and service delivery

The brief underscores the importance of federal support in stabilizing state budgets and meeting local needs—support now at risk. 🔗 Read the CBPP state funding roundup

✅ Takeaway

Together, these reports paint a sobering picture of the Senate’s budget direction—one that prioritizes tax breaks for the wealthy over investments in health, education, and economic equity. For Tribal child care programs and Native communities already navigating historic underfunding, the risks are especially urgent.

NICCA encourages our partners, families, and fellow advocates to stay informed and raise your voices in support of equitable, community-centered federal investments. These decisions will shape the future of care, education, and opportunity for generations to come.

📣 Take Action: Share Your Story and Make Your Voice Heard

Federal budget decisions aren't just about numbers—they’re about people, families, and communities. As Congress considers these sweeping changes, it’s more important than ever for Tribal leaders, providers, families, and advocates to speak up.

Your story matters. Whether you’ve seen firsthand how Medicaid supports families, how federal funding has helped build safe and culturally grounded child care spaces, or how budget cuts threaten critical services in your community—sharing your experience can help shape policy.

✅ Contact your Members of Congress today and tell them how these budget proposals would impact your program, your family, or your Tribal Nation. Personal stories are powerful, and your voice can help protect funding that supports Native children and communities.

Contact Your Members of Congress

Together, we can advocate for a federal budget that uplifts Native children, respects Tribal sovereignty, and invests in a thriving future for all.