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Indian Health Service

The Indian Health Service runs on 13 cents of every dollar tribes say it needs

Summary

Tribal leaders calculated it would take $63.04 billion to fully fund federal health care for 2.8 million American Indians and Alaska Natives in fiscal year 2026. Congress appropriated $8.2 billion — and the agency's own provider vacancy rate has climbed toward 30%, worse than when GAO first flagged the shortage eight years ago.

By Locusta · July 9, 2026

The federal government owes American Indians and Alaska Natives health care. That obligation runs through treaties, the Snyder Act of 1921, and a century of court decisions, and it is discharged by a single small agency: the Indian Health Service, which runs and funds care for 2.8 million people across 574 federally recognized tribes, per the agency's own FY2026 budget submission to Congress. Every year, tribal leaders calculate what that obligation actually costs. Every year, Congress appropriates a fraction of it.

FY2026 IHS appropriation
$8.2B
Senate Approps. Cmte., enacted
Tribal 'full funding' request
$63.04B
13¢ of every dollar requested is funded
Provider vacancy rate
~30%
agency-wide, Jan. 2026 vs 25% in 2017

The gap between the ask and the appropriation

Every fiscal year, the National Tribal Budget Formulation Workgroup — twelve tribal leaders, one from each IHS service area, working through a consultation process IHS itself is statutorily required to run — publishes its own budget for the agency. For fiscal year 2026, that document, A Path Forward to Fully Fund Tribal Nations, put the total at $63.04 billion: enough, the workgroup argued, to fund current services, address a documented staffing shortage, and start clearing a multibillion-dollar facilities-construction backlog.

Congress did not appropriate that. The final FY2026 Interior, Environment, and Related Agencies Appropriations Act, per the Senate Appropriations Committee's own summary, gives IHS $8.2 billion in total resources — a program increase of just $87.1 million over fiscal year 2025 — plus a separate $5.3 billion advance appropriation to carry into fiscal year 2027. That $8.2 billion is real money, and appropriators rejected a competing White House proposal that would have eliminated IHS's dedicated funding lines entirely in favor of a state block grant. But measured against what tribal leaders said the job actually costs, it funds about 13 cents of every dollar requested.

The same gap shows up in a different, older measurement: what the government spends on a typical patient. A 2018 GAO report, reproduced in a 2022 HHS analysis, found IHS spent $4,078 per person in 2017 — a figure that already includes what IHS separately collects from Medicare, Medicaid, and private insurers on patients' behalf. Medicare, over the same year, spent $13,185 per beneficiary — more than three times as much.

Federal per-capita health spending, by program
Dollars per person served, 2017
Indian Health Service
$4,078
Medicaid
$8,109
Veterans Health Admin.
$10,692
Medicare
$13,185
Source: U.S. GAO, GAO-19-74R (Dec. 2018), as reproduced in HHS ASPE, HP-2022-21 (July 2022)
View data as table
Per-capita spending, 2017
Indian Health Service$4,078GAO-19-74R, FY2017
Medicaid$8,109GAO-19-74R, FY2017
Veterans Health Administration$10,692GAO-19-74R, FY2017
Medicare$13,185GAO-19-74R, CY2017

The same shortfall, counted in people

Money translates directly into who is in the building to see a patient. In August 2018, GAO reported that IHS's provider positions — physicians, nurses, nurse practitioners, dentists, pharmacists, and other clinical staff — sat vacant at a 25% rate agency-wide, based on November 2017 staffing data. In the two worst-hit areas, Bemidji, Minnesota and Billings, Montana, the vacancy rate hit 46% — nearly one in two clinical positions unfilled.

Eight years, several congressional hearings, and multiple follow-ups later, the number has not recovered. It has gotten worse. At an October 29, 2025 Senate Committee on Indian Affairs hearing, National Indian Health Board CEO A.C. Locklear testified that more than 1,000 IHS employees had left the agency in 2025 alone, through early-retirement offers and voluntary departures, on a total workforce of roughly 15,000. Three months later, when IHS announced what it called the largest hiring campaign in the agency's history, Chief of Staff Clayton Fulton put the current agency-wide vacancy rate at "near 30 percent." The agency now sits closer to the worst regional numbers documented in 2017 than to its own agency-wide average from that year.

IHS clinical provider vacancy rate
Percent of provider positions unfilled
Overall, Nov. 2017
25%
Worst-hit area, Nov. 2017
46%
Agency-wide, Jan. 2026
30%
Source: U.S. GAO, GAO-18-580 (Aug. 2018), data as of Nov. 2017; IHS press release, Jan. 29, 2026
View data as table
Provider vacancy rate, three points in time
Overall vacancy rate, Nov. 201725%GAO-18-580
Worst-hit area (Bemidji/Billings), Nov. 201746%GAO-18-580
Agency-wide vacancy rate, Jan. 202630%IHS press release

The takeaway

  • The gap is not new, and it is not close. Tribal leaders' own FY2026 budget called for $63.04 billion; Congress appropriated $8.2 billion — 13 cents on the dollar, and a smaller increase over FY2025 ($87.1 million) than a single rural hospital's annual budget.
  • Every dollar comparison points the same direction. Whether measured as a share of the tribal request or as spending per person against Medicare, Medicaid, and the , IHS is federal health care's most underfunded major program by a wide, well-documented margin.
  • The money shortfall is a staffing shortfall. A 25% vacancy rate in 2017 was already a five-alarm finding. Eight years and an "unprecedented" 2026 hiring campaign later, the agency-wide rate is closer to 30% — worse, not better.

Per-capita spending figures compare 2017 data across programs with different eligibility rules, payer mixes, and populations; and both caution against reading them as precise apples-to-apples comparisons, though both use them as the best available cross-program benchmark. The $63.04 billion tribal request was published in April 2024 for fiscal year 2026; the $8.2 billion figure is the final enacted amount.

Sources

  • Senate Committee on Appropriations, FY2026 Interior, Environment, and Related Agencies Appropriations Act — Conference Bill Summary — the enacted $8.2 billion IHS appropriation, the $87.1 million year-over-year increase, and the $5.3 billion FY2027 advance appropriation. appropriations.senate.gov
  • Indian Health Service, 2026 Performance Budget Submission to Congress — the agency's own service-population figure (2.8 million people, 574 tribes, 37 states, 600+ facilities). ihs.gov
  • National Tribal Budget Formulation Workgroup, A Path Forward to Fully Fund Tribal Nations: The Workgroup's Request for the Indian Health Service Fiscal Year 2026 Budget (April 2024) — the $63.04 billion full-funding recommendation. legacy.nihb.org
  • U.S. Government Accountability Office, Indian Health Service: Spending Levels and Characteristics of IHS and Three Other Federal Health Care Programs (-19-74R, Dec. 2018) — the 2017 per-capita spending comparison across IHS, Medicaid, VHA, and Medicare. gao.gov
  • Office of the Assistant Secretary for Planning and Evaluation, How Increased Funding Can Advance the Mission of the Indian Health Service (HP-2022-21, July 2022) — reproduces and contextualizes the per-capita figures. aspe.hhs.gov
  • U.S. Government Accountability Office, Indian Health Service: Agency Faces Ongoing Challenges Filling Provider Vacancies (-18-580, Aug. 2018) — the 25% overall and 46% worst-area provider vacancy rates, November 2017 data. gao.gov
  • ICT News, reporting on National Indian Health Board CEO A.C. Locklear's testimony to the Senate Committee on Indian Affairs (Oct. 29, 2025) — the 1,000-plus 2025 staff departures and ~15,000-person total workforce. ictnews.org
  • Indian Health Service, Indian Health Service Launches Largest Hiring Effort in Agency History (press release, Jan. 29, 2026) — the current "near 30 percent" agency-wide vacancy rate and 2025 staff departure figures. ihs.gov
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