Susan Masten, President
National Congress of American Indians

Prepared Statement

FY2001 Appropriations for the Departments of Housing and Urban Development and Veterans Affairs,
and the Environmental Protection Agency

House Appropriations Subcommittee on
Veterans Affairs, HUD, and Independent Agencies

March 22, 2001

INTRODUCTION

Good morning, Chairman Walsh, Representative Mollohan, and distinguished Subcommittee members. My name is Susan Masten, and I am Chair of the Yurok Tribe of Northern California and President of the National Congress of American Indians (NCAI). On behalf of NCAI's 250 member tribal nations, I am pleased to have the opportunity to present testimony regarding the President's budget request for FY2002 Indian programs and services within the Departments of Housing and Urban Development (HUD) and Veterans Affairs (VA), and the Environmental Protection Agency (EPA).

Last year, Congress enacted a final FY2001 budget that included a total of $9.4 billion for critical Indian programs. This total, a $1.1 billion increase over FY2000, represented the largest increase ever for Indian programs and brought together over a dozen agencies to help address some of the needs of Indian nations.

The last time the federal government enacted an increase of a similar scope was in the mid-1970's as part of President Nixon's self-determination policy. Self-determination has been and continues to be the most successful federal policy toward Indian Nations. Under it, tribal governments have local control over programs and are able to fulfill needs and solve problems more quickly and efficiently than through a "top-down" federal approach.

Since the 1970's, the high population growth rate of Indian reservations has put great strains on an already inadequate infrastructure. Housing, education, law enforcement, transportation, health care, jobs, technology, water and sewer systems - each of these basic governmental services all too often falls victim to resources that are spread far too thin. While FY2001 funding levels for Indian programs certainly made great strides toward meeting the basic programmatic needs of tribes, our collective work is not yet done. In order to fully support tribal self-government and economic self-sufficiency, Congress must not turn back the clock on last year's gains and in fact should consider increases for key programs that serve Indian Country.

For FY2002, the President has proposed $1.96 in FY2002 spending, including a four percent increase in discretionary spending over FY2001. While this increase - which is slightly higher than inflation - seems positive, it is important to note that it is only half the 8.5 percent gain enacted last year. The President's "Blueprint for New Beginnings" fails to provide many substantive, agency-level details about the FY2002 budget request. Until these details become available through the release of more comprehensive agency budgets, it is extremely difficult to gauge the impact of the proposed FY2002 budget on programs that serve American Indians and Alaska Natives. However, I will attempt to address the proposed funding levels that are available and to highlight those programs that we believe are critically important to Indian nations.

As Congress begins the appropriations process for FY2002, NCAI seeks the support of this Subcommittee in fully funding Indian programs within HUD, VA, and EPA.

Department of Housing and Urban Development

HUD programs provide critical resources for housing and economic development in Native American communities where grinding poverty and socio-economic conditions create challenges that simply do not exist in other areas of this country. Adequate Indian housing funding is critical since 40 percent of Indian reservation housing currently is considered substandard, compared to the national substandard housing rate of 5.9 percent.

The FY2001 enacted level of $650 million for the Native American Housing Assistance and Self-Determination Act (NAHASDA) is far below the $1.1 billion base funding determined by the National American Indian Housing Council (NAIHC) as a minimum to begin addressing the housing shortage in American Indian communities. Per NCAI Resolution #STP-00-038, NCAI supports the NAIHC proposed request and urges Congress to address the real housing need in Indian Country by appropriating $1.1 billion in FY2002 for NAHASDA programs.

We are very concerned over some of the funding levels contained in the President's budget blueprint, including the proposed freeze on Community Development Block Grant (CDBG) program funding. Currently, $71 million is available for the Indian CDBG program, including $3 million competitive grants to tribal colleges to assist their communities with neighborhood revitalization, housing, and economic development. We believe that $147 million is the level needed to support CDBG needs in Indian Country, and per NCAI Resolution #STP-00-040, urge Congress to appropriate that level of funding.

We also urge Congress to reject the proposed elimination of the Drug Elimination Grant program and the Rural Housing/Economic Development program. These programs, under which tribes receive small amounts of funding, were allocated $27 million and $310 million in FY2001, respectively.

Department of Veterans Affairs

Unfortunately, the authority to issue new loans under this successful program will end on December 31, 2001. NCAI supports legislation to make permanent the Native American veterans housing loan program. We are hopeful that S. 228, will become law this year and pledge to work with the Veterans Affairs Committee to enact this bill important to Native American veterans who would like to participate in this program. Native American veterans who reside on trust lands should be afforded the same benefits available to other veterans. Without this program, it would be incredibly difficult for Native Americans living on trust lands to obtain home loan financing.


Environmental Protection Agency

Tribes are sovereign entities with the ability to set environmental quality standards, make environmental policy decisions, and manage programs consistent with Environmental Protection Agency (EPA) standards and regulations. In order to preserve and enhance the environmental quality of Indian Country for present and future generations and sustain tribal cultures, tribes require equitable funding for their environmental regulatory programs. We respectfully ask this Committee to support the recommendations below for the FY2002 EPA budget.In FY2001, Congress provided the full budget request of $52.6 million for the Indian General Assistance Program (GAP) under the multimedia section of State and Tribal Assistance Grants. Tribal environmental program managers view increased funding for GAP activities as the highest priority, and we request that you continue to provide tribes with the resources needed to build capacity for EPA-delegated environmental programs. Incremental increases for the GAP program are necessary for tribes to develop federal environmental regulatory programs, and we believe that a $10 million increase to $62.2 million for the GAP program will assist tribes in this effort.

For Section 319 of the Clean Water Act Non-point Source Pollution grants, NCAI recommends that a minimum of $8.1 million be set-aside for tribal governments, since most water pollution in Indian Country emanates from non-point sources. NCAI further recommends a permanent lifting of the cap on section 319 grants.

We also request that Congress set aside at least $57 million, or 2 percent of the total funding, which ever is higher, under the Clean Water Act State Revolving Fund. Even though the request is a significant shortfall from the true need, it will help address the estimated $650 million wastewater treatment unmet needs in Indian Country, according to the Indian Health Service. Section 1452 (i) of the Safe Drinking Water Act State Revolving Fund provides a tribal government set- aside for public water system expenditures to facilitate compliance with the national primary drinking water regulations. Public water supply problems continue to plague tribal communities and immediate assistance is needed. Several reservation communities are under "boil order" by the EPA because the drinking water supply is contaminated. NCAI urges that Congress provide $20 million or 2 percent of the total funding, whichever is higher, for tribal drinking water programs under this program.Congress in FY2001 authorized EPA to enter into cooperative agreements with tribal governments and tribal consortia to assist the agency in implementing federal environmental programs. NCAI strongly recommends the continuation of this authority.

CONCLUSION