Title 25IndiansRelease 119-73not60

§5385 Funding Agreements

Title 25 › Chapter 46— INDIAN SELF-DETERMINATION AND EDUCATION ASSISTANCE › Subchapter V— TRIBAL SELF-GOVERNANCE—INDIAN HEALTH SERVICE › § 5385

Last updated Apr 5, 2026|Official source

Summary

The Secretary must make and sign a written funding agreement with every Indian tribe that joins self-governance. The agreement must honor the government’s trust duty, treaty promises, and the nation-to-nation relationship. The tribe can choose to run, combine, manage, and get its full tribal share of money for programs that help Indians because of their status. That includes tribal shares of discretionary Indian Health Service competitive grants, but not congressionally earmarked competitive grants. The coverage applies no matter which IHS office or agency runs the program. The law lists several specific statutes and other Acts that can be included. Each agreement must say which programs or parts of programs the tribe will manage. For each item it must give a general budget category, the amount of funds (including recurring funds), when and how money will be sent, what the Secretary must do, and any other agreed terms. An agreement stays in effect until a new one is signed unless the tribe tells the Secretary it is stopping or giving back a program. Tribes in the Tribal Self-Governance Demonstration Project on August 18, 2000 may keep their old demonstration agreement if it does not conflict with this law, or they may negotiate a new agreement. A tribe can also choose a stable base budget for a set period that includes funds under section 5325(a), with yearly changes only to match changes in congressional appropriations by sub-sub activity, excluding earmarks.

Full Legal Text

Title 25, §5385

Indians — Source: USLM XML via OLRC

(a)The Secretary shall negotiate and enter into a written funding agreement with each Indian tribe participating in self-governance in a manner consistent with the Federal Government’s trust responsibility, treaty obligations, and the government-to-government relationship between Indian tribes and the United States.
(b)(1)Each funding agreement required under subsection (a) of this section shall, as determined by the Indian tribe, authorize the Indian tribe to plan, conduct, consolidate, administer, and receive full tribal share funding, including tribal shares of discretionary Indian Health Service competitive grants (excluding congressionally earmarked competitive grants), for all programs, services, functions, and activities (or portions thereof), that are carried out for the benefit of Indians because of their status as Indians without regard to the agency or office of the Indian Health Service within which the program, service, function, or activity (or portion thereof) is performed.
(2)Such programs, services, functions, or activities (or portions thereof) include all programs, services, functions, activities (or portions thereof), including grants (which may be added to a funding agreement after an award of such grants), with respect to which Indian tribes or Indians are primary or significant beneficiaries, administered by the Department of Health and Human Services through the Indian Health Service and all local, field, service unit, area, regional, and central headquarters or national office functions so administered under the authority of—
(A)section 13 of this title;
(B)the Act of April 16, 1934 (48 Stat. 596; chapter 147; 25 U.S.C. 452 et seq.); 11 See References in Text note below.
(C)the Act of August 5, 1954 (68 Stat. 674; chapter 658) [42 U.S.C. 2001 et seq.];
(D)the Indian Health Care Improvement Act (25 U.S.C. 1601 et seq.);
(E)the Indian Alcohol and Substance Abuse Prevention and Treatment Act of 1986 (25 U.S.C. 2401 et seq.);
(F)any other Act of Congress authorizing any agency of the Department of Health and Human Services to administer, carry out, or provide financial assistance to such a program, service, function or activity (or portions thereof) described in this section that is carried out for the benefit of Indians because of their status as Indians; or
(G)any other Act of Congress authorizing such a program, service, function, or activity (or portions thereof) carried out for the benefit of Indians under which appropriations are made available to any agency other than an agency within the Department of Health and Human Services, in any case in which the Secretary administers that program, service, function, or activity (or portion thereof).
(c)It shall not be a requirement that an Indian tribe or Indians be identified in the authorizing statute for a program or element of a program to be eligible for inclusion in a compact or funding agreement under this subchapter.
(d)Each funding agreement under this subchapter shall set forth—
(1)terms that generally identify the programs, services, functions, and activities (or portions thereof) to be performed or administered; and
(2)for the items identified in paragraph (1)—
(A)the general budget category assigned;
(B)the funds to be provided, including those funds to be provided on a recurring basis;
(C)the time and method of transfer of the funds;
(D)the responsibilities of the Secretary; and
(E)any other provision with respect to which the Indian tribe and the Secretary agree.
(e)Absent notification from an Indian tribe that is withdrawing or retroceding the operation of one or more programs, services, functions, or activities (or portions thereof) identified in a funding agreement, or unless otherwise agreed to by the parties, each funding agreement shall remain in full force and effect until a subsequent funding agreement is executed, and the terms of the subsequent funding agreement shall be retroactive to the end of the term of the preceding funding agreement.
(f)Each Indian tribe participating in the Tribal Self-Governance Demonstration Project established under title III 1 on August 18, 2000, shall have the option at any time thereafter to—
(1)retain the Tribal Self-Governance Demonstration Project funding agreement of that Indian tribe (in whole or in part) to the extent that the provisions of that funding agreement are not directly contrary to any express provision of this subchapter; or
(2)instead of retaining a funding agreement or portion thereof under paragraph (1), negotiate a new funding agreement in a manner consistent with the requirements of this subchapter.
(g)At the option of an Indian tribe, a funding agreement may provide for a stable base budget specifying the recurring funds (including, for purposes of this provision, funds available under section 5325(a) of this title) to be transferred to such Indian tribe, for such period as may be specified in the funding agreement, subject to annual adjustment only to reflect changes in congressional appropriations by sub-sub activity excluding earmarks.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

Act of April 16, 1934, referred to in subsec. (b)(2)(B), is act Apr. 16, 1934, ch. 147, 48 Stat. 596, popularly known as the Johnson-O’Malley Act, which was classified generally to section 452 et seq. of this title prior to editorial reclassification as section 5342 et seq. of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 5301 of this title and Tables. Act of August 5, 1954, referred to in subsec. (b)(2)(C), is act Aug. 5, 1954, ch. 658, 68 Stat. 674, which is classified generally to subchapter I (§ 2001 et seq.) of chapter 22 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Tables. The Indian Health Care Improvement Act, referred to in subsec. (b)(2)(D), is Pub. L. 94–437, Sept. 30, 1976, 90 Stat. 1400, which is classified principally to chapter 18 (§ 1601 et seq.) of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 1601 of this title and Tables. The Indian Alcohol and Substance Abuse Prevention and Treatment Act of 1986, referred to in subsec. (b)(2)(E), is subtitle C of title IV of Pub. L. 99–570, Oct. 27, 1986, 100 Stat. 3207–137, which is classified generally to chapter 26 (§ 2401 et seq.) of this title. For complete classification of subtitle C to the Code, see

Short Title

note set out under section 2401 of this title and Tables. Title III, referred to in subsec. (f), means title III of Pub. L. 93–638, as added by Pub. L. 100–472, title II, § 209, Oct. 5, 1988, 102 Stat. 2296, which was set out as a note under former section 450f of this title prior to repeal by Pub. L. 106–260, § 10, Aug. 18, 2000, 114 Stat. 734. Codification Section was formerly classified to section 458aaa–4 of this title prior to editorial reclassification and renumbering as this section.

Reference

Citations & Metadata

Citation

25 U.S.C. § 5385

Title 25Indians

Last Updated

Apr 5, 2026

Release point: 119-73not60