By Joe Morey News Editor
Official Tribal Statement Below
In response to a recent presidential executive order, the Lac Courte Oreilles Tribal Chairman Governing Board has issued a statement to its Membership addressing the significant challenges posed by a temporary halt on federal financial assistance programs. The pause, announced in a January 27 memorandum by Acting Office of Management and Budget (OMB) Director Matthew J. Vaeth, is part of a comprehensive review to align federal spending with the Trump administration’s priorities.
The OMB memo halts disbursements and new awards of federal financial assistance programs starting January 28, encompassing approximately $3 trillion in funding. While Medicare and Social Security benefits are exempt, the order notably targets grants related to foreign aid, diversity initiatives, and environmental projects, leaving the status of tribal funding unclear. More information on the temporary halt of federal spending will follow the statement.
The Statement By LCO Tribal Governing Board
As our Tribal Members are aware, the new President has signed multiple Executive Orders (EO) that will affect many individuals and entities including Tribal Governments. The most recent EO places a pause in federal funding which will directly affect many of our tribal programs. These are uncertain times, and as this EO takes effect tonight at 5pm eastern time, we do not know the extent of the impact yet.
In the meantime, here is what we can do to best serve our Tribe, our programs, and the individuals we serve: please stay calm. We have been through difficult and uncertain times before and we will get through this challenging time as a community. Make sure to fact-check and please do not spread misinformation.
The Governing Board is working diligently with our finance and grant staff, and we are in contact with BIA, State, Federal, and Inter-Tribal organizations to obtain information moving forward. We are committed to keeping our operations running while also addressing these new challenges.
We inquired about BIA funding and the BIA responded, "that they were instructed to pause in accordance to the Executive Order". The BIA Regional Office has a Budget Formulation meeting scheduled the first week in February and they're hoping to have more information for Tribes at that time.
In the meantime, the Governing Board is looking at how funding cuts will affect our programs, services to our Members, and our overall well-being. Thankfully, we have businesses that can sustain us for a while and it's important that we reserve our finances for future contingencies. During these challenging times, it is time for us to look out for one another, help each other out, and do whatever we can to make our lives, and our Reservation self-sustaining and self sufficient. Our leadership will be looking at our finances and the budget to be prepared for whatever comes our way.
We're Ojibwe; we're resilient. Our Ancestors fought for survival, and we will survive this current time period too. We are a strong Tribe; we will get through this together. As more information becomes available, the Governing Board will share information with you, our Tribal Members.
Signed by all TGB members; Chairman Louis Taylor, Vice Chairman Tweed Shuman, Sec.-Treasurer Bill Trepanier, Don Carley, Michelle Beaudin, Gary "Little Guy" Clause and David Bisonette.
The Executive Order
The Lac Courte Oreilles Band of Lake Superior Chippewa is facing an uncertain future as a new executive order temporarily halts federal financial assistance programs, a move that could disrupt critical services and initiatives. In a statement, Tribal Chairman Louis Taylor expressed concern about the challenges posed by the funding freeze while emphasizing the tribe’s commitment to maintaining vital programs.
“The well-being of our community remains our highest priority,” Taylor said. “Our leadership is working diligently to advocate for the needs of our tribe and to ensure assistance remains uninterrupted.”
The pause, initiated by Acting Office of Management and Budget (OMB) Director Matthew J. Vaeth through a January 27 memorandum, mandates a suspension of federal grant disbursements and new awards starting January 28. The measure affects approximately $3 trillion in federal financial assistance programs, leaving tribal nations and other entities scrambling to assess the impact.
The freeze has raised alarms across Indian Country, where federal funding plays a crucial role in supporting healthcare, education, housing, and economic development. In 2024, federally recognized tribes received $32.6 billion in direct funding, a lifeline that is now at risk of disruption.
Dr. Aaron A. Payment, a federal Indian policy expert, highlighted the historical and legal importance of this funding. “We prepaid for every penny we get with nearly 2 billion acres of land,” Payment said. “Treaties do not expire when we change presidents, so we expect the federal government to honor its commitments.”
Tribal financial experts, including former Cherokee Nation CFO Lacey Horne, are urging tribal governments to take immediate action. “Today, everyone’s focus should be on cash,” Horne advised, recommending contingency plans to mitigate potential shortfalls.
Political Backlash
The executive order has sparked widespread criticism from lawmakers, with many accusing the administration of overstepping its authority. Senate Appropriations Vice Chair Patty Murray and House Appropriations Committee Ranking Member Rosa L. DeLauro called the scope of the freeze “unprecedented” and warned of its “devastating” consequences.
“This administration’s actions put the financial security of our families and communities at risk,” the lawmakers wrote in a joint letter to Vaeth, demanding the order be reversed.
Democratic Senator Chuck Schumer echoed these concerns, stating that the freeze jeopardizes essential programs and could lead to missed payrolls, unpaid rent, and widespread chaos.
Administration’s Defense
The OMB memo frames the funding pause as a necessary measure to ensure federal spending aligns with the administration’s priorities. It outlines a review process to evaluate grants and programs for consistency with President Trump’s agenda, which includes advancing “a stronger and safer America” and eliminating “woke” policies and initiatives.
Agencies are required to submit reviews by February 10 and have been directed to assign oversight of financial assistance to senior political appointees. The memo also permits the cancellation of awards deemed incompatible with administration priorities and investigations into underperforming grant recipients.
A Path Forward
Amid the uncertainty, tribal leaders remain committed to advocating for their communities. Taylor assured members of the Lac Courte Oreilles Band that the tribal government is working with federal agencies, including the Bureau of Indian Affairs, to seek exceptions and maintain the flow of critical resources.
“We appreciate your patience and support during this time,” Taylor said. “Together, we will persevere and continue building a stronger future for the Lac Courte Oreilles community.”
As tribal nations await clarity on how the freeze will affect their programs, leaders are preparing to navigate the challenges ahead while calling on the federal government to fulfill its treaty and trust obligations.
