I 
116TH CONGRESS 
1ST SESSION H. R. 2031 
To amend the Indian Self-Determination and Education Assistance Act to 
provide further self-governance by Indian Tribes, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 2, 2019 
Ms. HAALAND (for herself, Mr. COLE, Mr. YOUNG, Mr. HECK, Ms. GABBARD, 
and Mr. GALLEGO) introduced the following bill; which was referred to 
the Committee on Natural Resources 
A BILL 
To amend the Indian Self-Determination and Education As-
sistance Act to provide further self-governance by Indian 
Tribes, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Practical Reforms and Other Goals to Reinforce the Ef-
fectiveness of Self-Governance and Self-Determination for 
Indian Tribes Act of 2019’’ or the ‘‘PROGRESS for In-
dian Tribes Act’’. 
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(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—TRIBAL SELF-GOVERNANCE 
Sec. 101. Tribal self-governance. 
TITLE II—INDIAN SELF-DETERMINATION 
Sec. 201. Definitions; reporting and audit requirements; application of provi-
sions. 
Sec. 202. Contracts by Secretary of the Interior. 
Sec. 203. Administrative provisions. 
Sec. 204. Contract funding and indirect costs. 
Sec. 205. Contract or grant specifications. 
TITLE I—TRIBAL SELF- 
GOVERNANCE 
SEC. 101. TRIBAL SELF-GOVERNANCE. 
(a) EFFECT OF PROVISIONS.—Nothing in this Act, 
or the amendments made by this Act, shall be construed— 
(1) to modify, limit, expand, or otherwise af-
fect— 
(A) the authority of the Secretary of the 
Interior, as provided for under the Indian Self- 
Determination and Education Assistance Act 
(as in effect on the day before the date of en-
actment of this Act), regarding— 
(i) the inclusion of any non-BIA pro-
gram (as defined in section 401 of the In-
dian Self-Determination and Education 
Assistance Act) in a self-determination 
contract or funding agreement under sec-
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tion 403(c) of such Act (as so in effect); 
or 
(ii) the implementation of any con-
tract or agreement described in clause (i) 
that is in effect on the day described in 
subparagraph (A); 
(B) the meaning, application, or effect of 
any Tribal water rights settlement, including 
the performance required of a party thereto or 
any payment or funding obligation thereunder; 
(C) the authority, jurisdiction, or responsi-
bility of a State to manage, control, or regulate 
fish and wildlife under State law (including reg-
ulations) on land or water in the State, includ-
ing Federal public land; 
(D) except for the authority provided to 
the Secretary as described in subparagraph (A), 
the applicability or effect of any Federal law re-
lated to the protection or management of fish 
or wildlife; or 
(E) any treaty-reserved right or other right 
of any Indian Tribe as recognized by any other 
means, including treaties or agreements with 
the United States, Executive orders, statutes, 
regulations, or case law; or 
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(2) to authorize any provision of a contract or 
agreement that is not consistent with the terms of 
a Tribal water rights settlement. 
(b) DEFINITIONS.—Section 401 of the Indian Self- 
Determination and Education Assistance Act (25 U.S.C. 
5361) is amended to read as follows: 
‘‘SEC. 401. DEFINITIONS. 
‘‘In this title: 
‘‘(1) COMPACT.—The term ‘compact’ means a 
self-governance compact entered into under section 
404. 
‘‘(2) CONSTRUCTION PROGRAM; CONSTRUCTION 
PROJECT.—The term ‘construction program’ or ‘con-
struction project’ means a Tribal undertaking relat-
ing to the administration, planning, environmental 
determination, design, construction, repair, improve-
ment, or expansion of roads, bridges, buildings, 
structures, systems, or other facilities for purposes 
of housing, law enforcement, detention, sanitation, 
water supply, education, administration, community, 
health, irrigation, agriculture, conservation, flood 
control, transportation, or port facilities, or for other 
Tribal purposes. 
‘‘(3) DEPARTMENT.—The term ‘Department’ 
means the Department of the Interior. 
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‘‘(4) FUNDING AGREEMENT.—The term ‘fund-
ing agreement’ means a funding agreement entered 
into under section 403. 
‘‘(5) 
GROSS
MISMANAGEMENT.—The 
term 
‘gross mismanagement’ means a significant viola-
tion, shown by a preponderance of the evidence, of 
a compact, funding agreement, or statutory or regu-
latory requirement applicable to Federal funds for a 
program administered by an Indian Tribe under a 
compact or funding agreement. 
‘‘(6) INHERENT
FEDERAL
FUNCTION.—The 
term ‘inherent Federal function’ means a Federal 
function that may not legally be delegated to an In-
dian Tribe. 
‘‘(7) NON-BIA PROGRAM.—The term ‘non-BIA 
program’ means all or a portion of a program, func-
tion, service, or activity that is administered by any 
bureau, service, office, or agency of the Department 
of the Interior other than— 
‘‘(A) the Bureau of Indian Affairs; 
‘‘(B) the Office of the Assistant Secretary 
for Indian Affairs; or 
‘‘(C) the Office of the Special Trustee for 
American Indians. 
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‘‘(8) PROGRAM.—The term ‘program’ means 
any program, function, service, or activity (or por-
tion thereof) within the Department that is included 
in a funding agreement. 
‘‘(9) SECRETARY.—The term ‘Secretary’ means 
the Secretary of the Interior. 
‘‘(10) SELF-DETERMINATION CONTRACT.—The 
term ‘self-determination contract’ means a self-de-
termination contract entered into under section 102. 
‘‘(11) SELF-GOVERNANCE.—The term ‘self-gov-
ernance’ means the Tribal Self-Governance Program 
established under section 402. 
‘‘(12) TRIBAL SHARE.—The term ‘Tribal share’ 
means the portion of all funds and resources of an 
Indian Tribe that— 
‘‘(A) support any program within the Bu-
reau of Indian Affairs, the Office of the Special 
Trustee for American Indians, or the Office of 
the Assistant Secretary for Indian Affairs; and 
‘‘(B) are not required by the Secretary for 
the performance of an inherent Federal func-
tion. 
‘‘(13) TRIBAL WATER RIGHTS SETTLEMENT.— 
The term ‘Tribal water rights settlement’ means any 
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settlement, compact, or other agreement expressly 
ratified or approved by an Act of Congress that— 
‘‘(A) includes an Indian Tribe and the 
United States as parties; and 
‘‘(B) quantifies or otherwise defines any 
water right of the Indian Tribe.’’. 
(c) ESTABLISHMENT.—Section 402 of the Indian 
Self-Determination and Education Assistance Act (25 
U.S.C. 5362) is amended to read as follows: 
‘‘SEC. 402. TRIBAL SELF-GOVERNANCE PROGRAM. 
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish and carry out a program within the Department to 
be known as the ‘Tribal Self-Governance Program’. 
‘‘(b) 
SELECTION
OF
PARTICIPATING
INDIAN 
TRIBES.— 
‘‘(1) IN GENERAL.— 
‘‘(A) ELIGIBILITY.—The Secretary, acting 
through the Director of the Office of Self-Gov-
ernance, may select not more than 50 new In-
dian Tribes per year from those tribes eligible 
under subsection (c) to participate in self-gov-
ernance. 
‘‘(B) JOINT PARTICIPATION.—On the re-
quest of each participating Indian Tribe, 2 or 
more otherwise eligible Indian Tribes may be 
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nization, in whole or in part, shall be entitled 
to participate in self-governance if the Indian 
Tribe is eligible under subsection (c). 
‘‘(B) EFFECT OF WITHDRAWAL.—If an In-
dian Tribe withdraws from participation in a 
Tribal organization, the Indian Tribe shall be 
entitled to its Tribal share of funds and re-
sources supporting the programs that the In-
dian Tribe is entitled to carry out under the 
compact and funding agreement of the Indian 
Tribe. 
‘‘(C) PARTICIPATION
IN
SELF-GOVERN-
ANCE.—The withdrawal of an Indian Tribe 
from a Tribal organization shall not affect the 
eligibility of the Tribal organization to partici-
pate in self-governance on behalf of one or more 
other Indian Tribes, if the Tribal organization 
still qualifies under subsection (c). 
‘‘(D) WITHDRAWAL PROCESS.— 
‘‘(i) IN GENERAL.—An Indian Tribe 
may, by Tribal resolution, fully or partially 
withdraw its Tribal share of any program 
in a funding agreement from a partici-
pating Tribal organization. 
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‘‘(ii) 
NOTIFICATION.—The 
Indian 
Tribe shall provide a copy of the Tribal 
resolution described in clause (i) to the 
Secretary. 
‘‘(iii) EFFECTIVE DATE.— 
‘‘(I) IN GENERAL.—A withdrawal 
under clause (i) shall become effective 
on the date that is specified in the 
Tribal resolution and mutually agreed 
upon by the Secretary, the with-
drawing Indian Tribe, and the Tribal 
organization that signed the compact 
and funding agreement on behalf of 
the withdrawing Indian Tribe or Trib-
al organization. 
‘‘(II) NO
SPECIFIED
DATE.—In 
the absence of a date specified in the 
resolution, the withdrawal shall be-
come effective on— 
‘‘(aa) the earlier of— 
‘‘(AA) 1 year after the 
date of submission of the re-
quest; and 
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‘‘(BB) 
the 
date 
on 
which the funding agree-
ment expires; or 
‘‘(bb) such date as may be 
mutually agreed upon by the Sec-
retary, the withdrawing Indian 
Tribe, and the Tribal organiza-
tion that signed the compact and 
funding agreement on behalf of 
the withdrawing Indian Tribe or 
Tribal organization. 
‘‘(E) DISTRIBUTION OF FUNDS.—If an In-
dian Tribe or Tribal organization eligible to 
enter into a self-determination contract or a 
compact or funding agreement fully or partially 
withdraws from a participating Tribal organiza-
tion, the withdrawing Indian Tribe— 
‘‘(i) may elect to enter into a self-de-
termination contract or compact, in which 
case— 
‘‘(I) 
the 
withdrawing 
Indian 
Tribe or Tribal organization shall be 
entitled to its Tribal share of unex-
pended funds and resources sup-
porting the programs that the Indian 
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Tribe will be carrying out under its 
own self-determination contract or 
compact and funding agreement (cal-
culated on the same basis as the 
funds were initially allocated to the 
funding agreement of the Tribal orga-
nization); and 
‘‘(II) the funds referred to in 
subclause (I) shall be withdrawn by 
the Secretary from the funding agree-
ment of the Tribal organization and 
transferred to the withdrawing Indian 
Tribe, on the condition that sections 
102 and 105(i), as appropriate, shall 
apply to the withdrawing Indian 
Tribe; or 
‘‘(ii) may elect not to enter into a self- 
determination contract or compact, in 
which case all unexpended funds and re-
sources associated with the withdrawing 
Indian Tribe’s returned programs (cal-
culated on the same basis as the funds 
were initially allocated to the funding 
agreement of the Tribal organization) shall 
be returned by the Tribal organization to 
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the Secretary for operation of the pro-
grams included in the withdrawal. 
‘‘(F) RETURN TO MATURE CONTRACT STA-
TUS.—If an Indian Tribe elects to operate all or 
some programs carried out under a compact or 
funding agreement under this title through a 
self-determination contract under title I, at the 
option of the Indian Tribe, the resulting self-de-
termination contract shall be a mature self-de-
termination contract as long as the Indian 
Tribe meets the requirements set forth in sec-
tion 4(h). 
‘‘(c) ELIGIBILITY.—To be eligible to participate in 
self-governance, an Indian Tribe shall— 
‘‘(1) successfully complete the planning phase 
described in subsection (d); 
‘‘(2) request participation in self-governance by 
resolution or other official action by the Tribal gov-
erning body; and 
‘‘(3) demonstrate, for the 3 fiscal years pre-
ceding the date on which the Indian Tribe requests 
participation, financial stability and financial man-
agement capability as evidenced by the Indian Tribe 
having no uncorrected significant and material audit 
exceptions in the required annual audit of its self- 
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determination or self-governance agreements with 
any Federal agency. 
‘‘(d) PLANNING PHASE.— 
‘‘(1) IN GENERAL.—An Indian Tribe seeking to 
begin participation in self-governance shall complete 
a planning phase as provided in this subsection. 
‘‘(2) ACTIVITIES.—The planning phase shall— 
‘‘(A) be conducted to the satisfaction of 
the Indian Tribe; and 
‘‘(B) include— 
‘‘(i) legal and budgetary research; and 
‘‘(ii) internal Tribal government plan-
ning, training, and organizational prepara-
tion. 
‘‘(e) GRANTS.— 
‘‘(1) IN GENERAL.—Subject to the availability 
of appropriations, an Indian Tribe or Tribal organi-
zation that meets the requirements of paragraphs 
(2) and (3) of subsection (c) shall be eligible for 
grants— 
‘‘(A) to plan for participation in self-gov-
ernance; and 
‘‘(B) to negotiate the terms of participa-
tion by the Indian Tribe or Tribal organization 
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in self-governance, as set forth in a compact 
and a funding agreement. 
‘‘(2) RECEIPT OF GRANT NOT REQUIRED.—Re-
ceipt of a grant under paragraph (1) shall not be a 
requirement of participation in self-governance.’’. 
(d) FUNDING AGREEMENTS.—Section 403 of the In-
dian Self-Determination and Education Assistance Act 
(25 U.S.C. 5363) is amended— 
(1) by striking subsection (a) and inserting the 
following: 
‘‘(a) AUTHORIZATION.—The Secretary shall, on the 
request of any Indian Tribe or Tribal organization, nego-
tiate and enter into a written funding agreement with the 
governing body of the Indian Tribe or the Tribal organiza-
tion in a manner consistent with— 
‘‘(1) the trust responsibility of the Federal Gov-
ernment, treaty obligations, and the government-to- 
government relationship between Indian Tribes and 
the United States; and 
‘‘(2) subsection (b).’’; 
(2) in subsection (b)— 
(A) in paragraph (1)— 
(i) in the matter preceding subpara-
graph (A), by striking ‘‘without regard to 
the agency or office of the Bureau of In-
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dian Affairs’’ and inserting ‘‘the Office of 
the Assistant Secretary for Indian Affairs, 
and the Office of the Special Trustee for 
American Indians, without regard to the 
agency or office of that Bureau or those 
Offices’’; 
(ii) by redesignating subparagraphs 
(A) and (B) as clauses (i) and (ii), respec-
tively, and indenting the margins of such 
clauses accordingly; 
(iii) by striking ‘‘including any pro-
gram’’ and inserting the following: ‘‘includ-
ing— 
‘‘(A) any program’’; 
(iv) in subparagraph (A)— 
(I) in clause (i), as redesignated 
by clause (ii), by striking the semi-
colon at the end and inserting ‘‘; 
and’’; and 
(II) in clause (ii), as so redesig-
nated, by striking ‘‘and’’ after the 
semicolon; 
(v) by redesignating subparagraph (C) 
as subparagraph (B); 
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(B) by striking ‘‘such agreement to—’’ and 
all that follows through ‘‘Indian tribe’’ and in-
serting ‘‘such agreement to each Indian Tribe’’; 
(C) by striking ‘‘agreement;’’ and inserting 
‘‘agreement.’’; and 
(D) by striking paragraphs (2) and (3); 
(4) in subsection (k), by striking ‘‘section 
405(c)(1)’’ and inserting ‘‘section 412(c)’’; and 
(5) by adding at the end the following: 
‘‘(m) OTHER PROVISIONS.— 
‘‘(1) EXCLUDED FUNDING.—A funding agree-
ment shall not authorize an Indian Tribe to plan, 
conduct, administer, or receive Tribal share funding 
under any program that— 
‘‘(A) is provided under the Tribally Con-
trolled Colleges and Universities Assistance Act 
of 1978 (25 U.S.C. 1801 et seq.); or 
‘‘(B) is provided for elementary and sec-
ondary schools under the formula developed 
under section 1127 of the Education Amend-
ments of 1978 (25 U.S.C. 2007). 
‘‘(2) SERVICES, FUNCTIONS, AND RESPONSIBIL-
ITIES.—A funding agreement shall specify— 
‘‘(A) the services to be provided under the 
funding agreement; 
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‘‘(B) the functions to be performed under 
the funding agreement; and 
‘‘(C) the responsibilities of the Indian 
Tribe and the Secretary under the funding 
agreement. 
‘‘(3) BASE BUDGET.— 
‘‘(A) IN GENERAL.—A funding agreement 
shall, at the option of the Indian Tribe, provide 
for a stable base budget specifying the recur-
ring funds (which may include funds available 
under section 106(a)) to be transferred to the 
Indian Tribe, for such period as the Indian 
Tribe specifies in the funding agreement, sub-
ject to annual adjustment only to reflect 
changes in congressional appropriations. 
‘‘(B) LIMITATIONS.—Notwithstanding sub-
paragraph (A), a funding agreement shall not 
specify funding associated with a program de-
scribed in subsection (b)(2) or (c) unless the 
Secretary agrees. 
‘‘(4) NO WAIVER OF TRUST RESPONSIBILITY.— 
A funding agreement shall prohibit the Secretary 
from waiving, modifying, or diminishing in any way 
the trust responsibility of the United States with re-
spect to Indian Tribes and individual Indians that 
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exists under treaties, Executive orders, court deci-
sions, and other laws. 
‘‘(n) AMENDMENT.—The Secretary shall not revise, 
amend, or require additional terms in a new or subsequent 
funding agreement without the consent of the Indian 
Tribe, unless such terms are required by Federal law. 
‘‘(o) EFFECTIVE DATE.—A funding agreement shall 
become effective on the date specified in the funding 
agreement. 
‘‘(p) EXISTING AND SUBSEQUENT FUNDING AGREE-
MENTS.— 
‘‘(1) SUBSEQUENT
FUNDING
AGREEMENTS.— 
Absent notification from an Indian Tribe that the 
Indian Tribe is withdrawing or retroceding the oper-
ation of one or more programs identified in a fund-
ing agreement, or unless otherwise agreed to by the 
parties to the funding agreement or by the nature 
of any noncontinuing program, service, function, or 
activity contained in a funding agreement— 
‘‘(A) a funding agreement shall remain in 
full force and effect until a subsequent funding 
agreement is executed, with funding paid annu-
ally for each fiscal year the agreement is in ef-
fect; and 
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‘‘(B) the term of the subsequent funding 
agreement shall be retroactive to the end of the 
term of the preceding funding agreement for 
the purposes of calculating the amount of fund-
ing to which the Indian Tribe is entitled. 
‘‘(2) DISPUTES.—Disputes over the implemen-
tation of paragraph (1)(A) shall be subject to section 
406(c). 
‘‘(3) EXISTING
FUNDING
AGREEMENTS.—An 
Indian Tribe that was participating in self-govern-
ance under this title on the date of enactment of the 
PROGRESS for Indian Tribes Act shall have the 
option at any time after that date— 
‘‘(A) to retain its existing funding agree-
ment (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 title; or 
‘‘(B) to negotiate a new funding agreement 
in a manner consistent with this title. 
‘‘(4) MULTIYEAR FUNDING AGREEMENTS.—An 
Indian Tribe may, at the discretion of the Indian 
Tribe, negotiate with the Secretary for a funding 
agreement with a term that exceeds 1 year.’’. 
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(e) GENERAL REVISIONS.—Title IV of the Indian 
Self-Determination and Education Assistance Act (25 
U.S.C. 5361 et seq.) is amended by striking sections 404 
through 408 and inserting the following: 
‘‘SEC. 404. COMPACTS. 
‘‘(a) IN GENERAL.—The Secretary shall negotiate 
and enter into a written compact with each Indian Tribe 
participating in self-governance in a manner consistent 
with the trust responsibility of the Federal Government, 
treaty obligations, and the government-to-government re-
lationship between Indian Tribes and the United States. 
‘‘(b) CONTENTS.—A compact under subsection (a) 
shall— 
‘‘(1) specify and affirm the general terms of the 
government-to-government relationship between the 
Indian Tribe and the Secretary; and 
‘‘(2) include such terms as the parties intend 
shall control during the term of the compact. 
‘‘(c) AMENDMENT.—A compact under subsection (a) 
may be amended only by agreement of the parties. 
‘‘(d) EFFECTIVE DATE.—The effective date of a com-
pact under subsection (a) shall be— 
‘‘(1) the date of the execution of the compact 
by the parties; or 
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‘‘(2) such date as is mutually agreed upon by 
the parties. 
‘‘(e) DURATION.—A compact under subsection (a) 
shall remain in effect— 
‘‘(1) for so long as permitted by Federal law; 
or 
‘‘(2) until termination by written agreement, 
retrocession, or reassumption. 
‘‘(f) EXISTING COMPACTS.—An Indian Tribe partici-
pating in self-governance under this title, as in effect on 
the date of enactment of the PROGRESS for Indian 
Tribes Act, shall have the option at any time after that 
date— 
‘‘(1) to retain its negotiated compact (in whole 
or in part) to the extent that the provisions of the 
compact are not directly contrary to any express 
provision of this title; or 
‘‘(2) to negotiate a new compact in a manner 
consistent with this title. 
‘‘SEC. 405. GENERAL PROVISIONS. 
‘‘(a) APPLICABILITY.—An Indian Tribe and the Sec-
retary shall include in any compact or funding agreement 
provisions that reflect the requirements of this title. 
‘‘(b) CONFLICTS OF INTEREST.—An Indian Tribe 
participating in self-governance shall ensure that internal 
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measures are in place to address, pursuant to Tribal law 
and procedures, conflicts of interest in the administration 
of programs. 
‘‘(c) AUDITS.— 
‘‘(1) SINGLE AGENCY AUDIT ACT.—Chapter 75 
of title 31, United States Code, shall apply to a 
funding agreement under this title. 
‘‘(2) COST PRINCIPLES.—An Indian Tribe shall 
apply cost principles under the applicable Office of 
Management and Budget circular, except as modi-
fied by— 
‘‘(A) any provision of law, including section 
106; or 
‘‘(B) any exemptions to applicable Office 
of Management and Budget circulars subse-
quently granted by the Office of Management 
and Budget. 
‘‘(3) FEDERAL CLAIMS.—Any claim by the Fed-
eral Government against an Indian Tribe relating to 
funds received under a funding agreement based on 
any audit under this subsection shall be subject to 
section 106(f). 
‘‘(d) REDESIGN AND CONSOLIDATION.—Except as 
provided in section 407, an Indian Tribe may redesign or 
consolidate programs, or reallocate funds for programs, in 
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a compact or funding agreement in any manner that the 
Indian Tribe determines to be in the best interest of the 
Indian community being served— 
‘‘(1) so long as the redesign or consolidation 
does not have the effect of denying eligibility for 
services to population groups otherwise eligible to be 
served under applicable Federal law; and 
‘‘(2) except that, with respect to the realloca-
tion, consolidation, and redesign of programs de-
scribed in subsection (b)(2) or (c) of section 403, a 
joint agreement between the Secretary and the In-
dian Tribe shall be required. 
‘‘(e) RETROCESSION.— 
‘‘(1) IN GENERAL.—An Indian Tribe may fully 
or partially retrocede to the Secretary any program 
under a compact or funding agreement. 
‘‘(2) EFFECTIVE DATE.— 
‘‘(A) 
AGREEMENT.—Unless 
an 
Indian 
Tribe rescinds a request for retrocession under 
paragraph (1), the retrocession shall become ef-
fective on the date specified by the parties in 
the compact or funding agreement. 
‘‘(B) NO AGREEMENT.—In the absence of 
a specification of an effective date in the com-
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pact or funding agreement, the retrocession 
shall become effective on— 
‘‘(i) the earlier of— 
‘‘(I) 1 year after the date on 
which the request is submitted; and 
‘‘(II) the date on which the fund-
ing agreement expires; or 
‘‘(ii) such date as may be mutually 
agreed upon by the Secretary and the In-
dian Tribe. 
‘‘(f) NONDUPLICATION.—A funding agreement shall 
provide that, for the period for which, and to the extent 
to which, funding is provided to an Indian Tribe under 
this title, the Indian Tribe— 
‘‘(1) shall not be entitled to contract with the 
Secretary for funds under section 102, except that 
the Indian Tribe shall be eligible for new programs 
on the same basis as other Indian Tribes; and 
‘‘(2) shall be responsible for the administration 
of programs in accordance with the compact or 
funding agreement. 
‘‘(g) RECORDS.— 
‘‘(1) IN
GENERAL.—Unless an Indian Tribe 
specifies otherwise in the compact or funding agree-
ment, records of an Indian Tribe shall not be consid-
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ered to be Federal records for purposes of chapter 
5 of title 5, United States Code. 
‘‘(2) RECORDKEEPING
SYSTEM.—An Indian 
Tribe shall— 
‘‘(A) maintain a recordkeeping system; and 
‘‘(B) on a notice period of not less than 30 
days, provide the Secretary with reasonable ac-
cess to the records to enable the Department to 
meet the requirements of sections 3101 through 
3106 of title 44, United States Code. 
‘‘SEC. 406. PROVISIONS RELATING TO THE SECRETARY. 
‘‘(a) TRUST EVALUATIONS.—A funding agreement 
shall include a provision to monitor the performance of 
trust functions by the Indian Tribe through the annual 
trust evaluation. 
‘‘(b) REASSUMPTION.— 
‘‘(1) IN
GENERAL.—A compact or funding 
agreement shall include provisions for the Secretary 
to reassume a program and associated funding if 
there is a specific finding relating to that program 
of— 
‘‘(A) imminent jeopardy to a trust asset, a 
natural resource, or public health and safety 
that— 
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‘‘(i) is caused by an act or omission of 
the Indian Tribe; and 
‘‘(ii) arises out of a failure to carry 
out the compact or funding agreement; or 
‘‘(B) gross mismanagement with respect to 
funds transferred to an Indian Tribe under a 
compact or funding agreement, as determined 
by the Secretary in consultation with the In-
spector General, as appropriate. 
‘‘(2) PROHIBITION.—The Secretary shall not 
reassume operation of a program, in whole or part, 
unless— 
‘‘(A) the Secretary first provides written 
notice and a hearing on the record to the In-
dian Tribe; and 
‘‘(B) the Indian Tribe does not take cor-
rective action to remedy the mismanagement of 
the funds or programs, or the imminent jeop-
ardy to a trust asset, natural resource, or pub-
lic health and safety. 
‘‘(3) EXCEPTION.— 
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (2), the Secretary may, on written notice 
to the Indian Tribe, immediately reassume op-
eration of a program if— 
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‘‘(i) the Secretary makes a finding of 
imminent and substantial jeopardy and ir-
reparable harm to a trust asset, a natural 
resource, or the public health and safety 
caused by an act or omission of the Indian 
Tribe; and 
‘‘(ii) the imminent and substantial 
jeopardy and irreparable harm to the trust 
asset, natural resource, or public health 
and safety arises out of a failure by the In-
dian Tribe to carry out the terms of an ap-
plicable compact or funding agreement. 
‘‘(B) REASSUMPTION.—If the Secretary re-
assumes operation of a program under subpara-
graph (A), the Secretary shall provide the In-
dian Tribe with a hearing on the record not 
later than 10 days after the date of reassump-
tion. 
‘‘(c) INABILITY TO AGREE ON COMPACT OR FUND-
ING AGREEMENT.— 
‘‘(1) FINAL
OFFER.—If the Secretary and a 
participating Indian Tribe are unable to agree, in 
whole or in part, on the terms of a compact or fund-
ing agreement (including funding levels), the Indian 
Tribe may submit a final offer to the Secretary. 
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‘‘(2) DETERMINATION.—Not more than 60 
days after the date of receipt of a final offer by one 
or more of the officials designated pursuant to para-
graph (4), the Secretary shall review and make a de-
termination with respect to the final offer, except 
that the 60-day period may be extended for up to 30 
days for circumstances beyond the control of the 
Secretary, upon written request by the Secretary to 
the Indian Tribe. 
‘‘(3) EXTENSIONS.—The deadline described in 
paragraph (2) may be extended for any length of 
time, as agreed upon by both the Indian Tribe and 
the Secretary. 
‘‘(4) DESIGNATED OFFICIALS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
designate one or more appropriate officials in 
the Department to receive a copy of the final 
offer described in paragraph (1). 
‘‘(B) NO DESIGNATION.—If no official is 
designated, the Director of the Office of the Ex-
ecutive Secretariat and Regulatory Affairs shall 
be the designated official. 
‘‘(5) NO TIMELY DETERMINATION.—If the Sec-
retary fails to make a determination with respect to 
a final offer within the period specified in paragraph 
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(2), including any extension agreed to under para-
graph (3), the Secretary shall be deemed to have 
agreed to the offer, except that with respect to any 
compact or funding agreement provision concerning 
a program described under section 403(c), the Sec-
retary shall be deemed to have rejected the offer 
with respect to such provision and the terms of 
clauses (ii) through (iv) of paragraphs (6)(A) shall 
apply. 
‘‘(6) REJECTION OF FINAL OFFER.— 
‘‘(A) IN GENERAL.—If the Secretary re-
jects a final offer (or one or more provisions or 
funding levels in a final offer), the Secretary 
shall— 
‘‘(i) provide timely written notification 
to the Indian Tribe that contains a specific 
finding that clearly demonstrates, or that 
is supported by a controlling legal author-
ity, that— 
‘‘(I) the amount of funds pro-
posed in the final offer exceeds the 
applicable funding level as determined 
under section 106(a)(1); 
‘‘(II) the program that is the 
subject of the final offer is an inher-
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ent Federal function or is subject to 
the discretion of the Secretary under 
section 403(c); 
‘‘(III) the Indian Tribe cannot 
carry out the program in a manner 
that would not result in significant 
danger or risk to the public health or 
safety, to natural resources, or to 
trust resources; 
‘‘(IV) the Indian Tribe is not eli-
gible to participate in self-governance 
under section 402(c); 
‘‘(V) 
the 
funding 
agreement 
would violate a Federal statute or reg-
ulation; or 
‘‘(VI) with respect to a program 
or portion of a program included in a 
final 
offer 
pursuant 
to 
section 
403(b)(2), the program or the portion 
of the program is not otherwise avail-
able to Indian Tribes or Indians 
under section 102(a)(1)(E); 
‘‘(ii) provide technical assistance to 
overcome the objections stated in the noti-
fication required by clause (i); 
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‘‘(iii) provide the Indian Tribe with a 
hearing on the record with the right to en-
gage in full discovery relevant to any issue 
raised in the matter, and the opportunity 
for appeal on the objections raised, except 
that the Indian Tribe may, in lieu of filing 
such appeal, directly proceed to initiate an 
action in a United States district court 
under section 110(a); and 
‘‘(iv) provide the Indian Tribe the op-
tion of entering into the severable portions 
of a final proposed compact or funding 
agreement (including a lesser funding 
amount, if any), that the Secretary did not 
reject, subject to any additional alterations 
necessary to conform the compact or fund-
ing agreement to the severed provisions. 
‘‘(B) EFFECT
OF
EXERCISING
CERTAIN 
OPTION.—If an Indian Tribe exercises the op-
tion specified in subparagraph (A)(iv)— 
‘‘(i) the Indian Tribe shall retain the 
right to appeal the rejection by the Sec-
retary under this section; and 
‘‘(ii) clauses (i), (ii), and (iii) of sub-
paragraph (A) shall apply only to the por-
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tion of the proposed final compact or fund-
ing agreement that was rejected by the 
Secretary. 
‘‘(d) BURDEN OF PROOF.—In any administrative ac-
tion, hearing, appeal, or civil action brought under this 
section, the Secretary shall have the burden of proof— 
‘‘(1) of demonstrating, by a preponderance of 
the evidence, the validity of the grounds for a re-
assumption under subsection (b); and 
‘‘(2) of clearly demonstrating the validity of the 
grounds for rejecting a final offer made under sub-
section (c). 
‘‘(e) GOOD FAITH.— 
‘‘(1) IN GENERAL.—In the negotiation of com-
pacts and funding agreements, the Secretary shall at 
all times negotiate in good faith to maximize imple-
mentation of the self-governance policy. 
‘‘(2) POLICY.—The Secretary shall carry out 
this title in a manner that maximizes the policy of 
Tribal self-governance. 
‘‘(f) SAVINGS.— 
‘‘(1) IN
GENERAL.—To the extent that pro-
grams carried out for the benefit of Indian Tribes 
and Tribal organizations under this title reduce the 
administrative or other responsibilities of the Sec-
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retary with respect to the operation of Indian pro-
grams and result in savings that have not otherwise 
been included in the amount of Tribal shares and 
other funds determined under section 408(c), except 
for funding agreements entered into for programs 
under section 403(c), the Secretary shall make such 
savings available to the Indian Tribes or Tribal or-
ganizations for the provision of additional services to 
program beneficiaries in a manner equitable to di-
rectly served, contracted, and compacted programs. 
‘‘(2) DISCRETIONARY
PROGRAMS
OF
SPECIAL 
SIGNIFICANCE.—For any savings generated as a re-
sult of the assumption of a program by an Indian 
Tribe under section 403(c), such savings shall be 
made available to that Indian Tribe. 
‘‘(g) TRUST RESPONSIBILITY.—The Secretary may 
not waive, modify, or diminish in any way the trust re-
sponsibility of the United States with respect to Indian 
Tribes and individual Indians that exists under treaties, 
Executive orders, other laws, or court decisions. 
‘‘(h) DECISION MAKER.—A decision that constitutes 
final agency action and relates to an appeal within the 
Department conducted under subsection (c)(6)(A)(iii) may 
be made by— 
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‘‘(1) an official of the Department who holds a 
position at a higher organizational level within the 
Department than the level of the departmental agen-
cy in which the decision that is the subject of the 
appeal was made; or 
‘‘(2) an administrative law judge. 
‘‘(i) RULES OF CONSTRUCTION.—Subject to section 
101(a) of the PROGRESS for Indian Tribes Act, each 
provision of this title and each provision of a compact or 
funding agreement shall be liberally construed for the ben-
efit of the Indian Tribe participating in self-governance, 
and any ambiguity shall be resolved in favor of the Indian 
Tribe. 
‘‘SEC. 407. CONSTRUCTION PROGRAMS AND PROJECTS. 
‘‘(a) IN GENERAL.—Indian Tribes participating in 
Tribal self-governance may carry out any construction 
project included in a compact or funding agreement under 
this title. 
‘‘(b) TRIBAL OPTION TO CARRY OUT CERTAIN FED-
ERAL ENVIRONMENTAL ACTIVITIES.—In carrying out a 
construction project under this title, an Indian Tribe may, 
subject to the agreement of the Secretary, elect to assume 
some Federal responsibilities under the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321 et seq.), divi-
sion A of subtitle III of title 54, United States Code, and 
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related provisions of other law and regulations that would 
apply if the Secretary were to undertake a construction 
project, by adopting a resolution— 
‘‘(1) designating a certifying Tribal officer to 
represent the Indian Tribe and to assume the status 
of a responsible Federal official under those Acts, 
laws, or regulations; and 
‘‘(2) accepting the jurisdiction of the United 
States courts for the purpose of enforcing the re-
sponsibilities of the certifying Tribal officer assum-
ing the status of a responsible Federal official under 
those Acts, laws, or regulations. 
‘‘(c) SAVINGS CLAUSE.—Notwithstanding subsection 
(b), nothing in this section authorizes the Secretary to in-
clude in any compact or funding agreement duties of the 
Secretary under the National Environmental Policy Act 
of 1969 (42 U.S.C. 4321 et seq.), division A of subtitle 
III of title 54, United States Code, and other related pro-
visions of law that are inherent Federal functions. 
‘‘(d) CODES AND STANDARDS.—In carrying out a 
construction project under this title, an Indian Tribe 
shall— 
‘‘(1) adhere to applicable Federal, State, local, 
and Tribal building codes, architectural and engi-
neering standards, and applicable Federal guidelines 
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regarding design, space, and operational standards, 
appropriate for the particular project; and 
‘‘(2) use only architects and engineers who— 
‘‘(A) are licensed to practice in the State 
in which the facility will be built; and 
‘‘(B) certify that— 
‘‘(i) they are qualified to perform the 
work required by the specific construction 
involved; and 
‘‘(ii) upon completion of design, the 
plans and specifications meet or exceed the 
applicable construction and safety codes. 
‘‘(e) TRIBAL ACCOUNTABILITY.— 
‘‘(1) IN GENERAL.—In carrying out a construc-
tion project under this title, an Indian Tribe shall 
assume responsibility for the successful completion 
of the construction project and of a facility that is 
usable for the purpose for which the Indian Tribe 
received funding. 
‘‘(2) REQUIREMENTS.—For each construction 
project carried out by an Indian Tribe under this 
title, the Indian Tribe and the Secretary shall nego-
tiate a provision to be included in the funding agree-
ment that identifies— 
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‘‘(A) the approximate start and completion 
dates for the project, which may extend over a 
period of one or more years; 
‘‘(B) a general description of the project, 
including the scope of work, references to de-
sign criteria, and other terms and conditions; 
‘‘(C) the responsibilities of the Indian 
Tribe and the Secretary for the project; 
‘‘(D) how project-related environmental 
considerations will be addressed; 
‘‘(E) the amount of funds provided for the 
project; 
‘‘(F) the obligations of the Indian Tribe to 
comply with the codes referenced in subsection 
(d)(1) and applicable Federal laws and regula-
tions; 
‘‘(G) the agreement of the parties over who 
will bear any additional costs necessary to meet 
changes in scope, or errors or omissions in de-
sign and construction; and 
‘‘(H) the agreement of the Secretary to 
issue a certificate of occupancy, if requested by 
the Indian Tribe, based upon the review and 
verification by the Secretary, to the satisfaction 
of the Secretary, that the Indian Tribe has se-
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cured upon completion the review and approval 
of the plans and specifications, sufficiency of 
design, life safety, and code compliance by 
qualified, licensed, and independent architects 
and engineers. 
‘‘(f) FUNDING.— 
‘‘(1) IN GENERAL.—Funding appropriated for 
construction projects carried out under this title 
shall be included in funding agreements as annual or 
semiannual advance payments at the option of the 
Indian Tribe. 
‘‘(2) ADVANCE
PAYMENTS.—The Secretary 
shall include all associated project contingency funds 
with each advance payment, and the Indian Tribe 
shall be responsible for the management of such con-
tingency funds. 
‘‘(g) NEGOTIATIONS.—At the option of the Indian 
Tribe, construction project funding proposals shall be ne-
gotiated pursuant to the statutory process in section 105, 
and any resulting construction project agreement shall be 
incorporated into the funding agreement as addenda. 
‘‘(h) FEDERAL REVIEW AND VERIFICATION.— 
‘‘(1) IN GENERAL.—On a schedule negotiated 
by the Secretary and the Indian Tribe— 
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‘‘(A) the Secretary shall review and verify, 
to the satisfaction of the Secretary, that project 
planning and design documents prepared by the 
Indian Tribe in advance of initial construction 
are in conformity with the obligations of the In-
dian Tribe under subsection (d); and 
‘‘(B) before the project planning and de-
sign documents are implemented, the Secretary 
shall review and verify to the satisfaction of the 
Secretary that subsequent document amend-
ments which result in a significant change in 
construction are in conformity with the obliga-
tions of the Indian Tribe under subsection (d). 
‘‘(2) REPORTS.—The Indian Tribe shall provide 
the Secretary with project progress and financial re-
ports not less than semiannually. 
‘‘(3) OVERSIGHT VISITS.—The Secretary may 
conduct onsite project oversight visits semiannually 
or on an alternate schedule agreed to by the Sec-
retary and the Indian Tribe. 
‘‘(i) APPLICATION OF OTHER LAWS.—Unless other-
wise agreed to by the Indian Tribe and except as otherwise 
provided in this Act, no provision of title 41, United States 
Code, the Federal Acquisition Regulation, or any other law 
or regulation pertaining to Federal procurement (includ-
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ing Executive orders) shall apply to any construction pro-
gram or project carried out under this title. 
‘‘(j) FUTURE FUNDING.—Upon completion of a facil-
ity constructed under this title, the Secretary shall include 
the facility among those eligible for annual operation and 
maintenance funding support comparable to that provided 
for similar facilities funded by the Department as annual 
appropriations are available and to the extent that the fa-
cility size and complexity and other factors do not exceed 
the funding formula criteria for comparable buildings. 
‘‘SEC. 408. PAYMENT. 
‘‘(a) IN GENERAL.—At the request of the governing 
body of an Indian Tribe and under the terms of an appli-
cable funding agreement, the Secretary shall provide fund-
ing to the Indian Tribe to carry out the funding agree-
ment. 
‘‘(b) ADVANCE ANNUAL PAYMENT.—At the option of 
the Indian Tribe, a funding agreement shall provide for 
an advance annual payment to an Indian Tribe. 
‘‘(c) AMOUNT.— 
‘‘(1) IN GENERAL.—Subject to subsection (e) 
and sections 403 and 405, the Secretary shall pro-
vide funds to the Indian Tribe under a funding 
agreement for programs in an amount that is equal 
to the amount that the Indian Tribe would have 
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been entitled to receive under contracts and grants 
under this Act (including amounts for direct pro-
gram and contract support costs and, in addition, 
any funds that are specifically or functionally related 
to the provision by the Secretary of services and 
benefits to the Indian Tribe or its members) without 
regard to the organization level within the Depart-
ment at which the programs are carried out. 
‘‘(2) SAVINGS CLAUSE.—Nothing in this section 
reduces programs, services, or funds of, or provided 
to, another Indian Tribe. 
‘‘(d) TIMING.— 
‘‘(1) IN GENERAL.—Pursuant to the terms of 
any compact or funding agreement entered into 
under this title, the Secretary shall transfer to the 
Indian Tribe all funds provided for in the funding 
agreement, pursuant to subsection (c), and provide 
funding for periods covered by joint resolution 
adopted by Congress making continuing appropria-
tions, to the extent permitted by such resolution. 
‘‘(2) TRANSFERS.—Not later than 1 year after 
the date of enactment of the PROGRESS for Indian 
Tribes Act, in any instance in which a funding 
agreement requires an annual transfer of funding to 
be made at the beginning of a fiscal year or requires 
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semiannual or other periodic transfers of funding to 
be made commencing at the beginning of a fiscal 
year, the first such transfer shall be made not later 
than 10 days after the apportionment of such funds 
by the Office of Management and Budget to the De-
partment, unless the funding agreement provides 
otherwise. 
‘‘(e) AVAILABILITY.—Funds for trust services to indi-
vidual Indians shall be available under a funding agree-
ment only to the extent that the same services that would 
have been provided by the Secretary are provided to indi-
vidual Indians by the Indian Tribe. 
‘‘(f) MULTIYEAR FUNDING.—A funding agreement 
may provide for multiyear funding. 
‘‘(g) LIMITATIONS
ON AUTHORITY
OF
THE SEC-
RETARY.—The Secretary shall not— 
‘‘(1) fail to transfer to an Indian Tribe its full 
share of any central, headquarters, regional, area, or 
service unit office or other funds due under this title 
for programs eligible under paragraph (1) or (2) of 
section 403(b), except as required by Federal law; 
‘‘(2) withhold any portion of such funds for 
transfer over a period of years; or 
‘‘(3) reduce the amount of funds required under 
this title— 
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‘‘(A) to make funding available for self- 
governance monitoring or administration by the 
Secretary; 
‘‘(B) in subsequent years, except as nec-
essary as a result of— 
‘‘(i) a reduction in appropriations 
from the previous fiscal year for the pro-
gram to be included in a compact or fund-
ing agreement; 
‘‘(ii) a congressional directive in legis-
lation or an accompanying report; 
‘‘(iii) a Tribal authorization; 
‘‘(iv) a change in the amount of pass- 
through funds subject to the terms of the 
funding agreement; or 
‘‘(v) completion of an activity under a 
program for which the funds were pro-
vided; 
‘‘(C) to pay for Federal functions, includ-
ing— 
‘‘(i) Federal pay costs; 
‘‘(ii) Federal employee retirement ben-
efits; 
‘‘(iii) automated data processing; 
‘‘(iv) technical assistance; and 
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‘‘(v) monitoring of activities under 
this title; or 
‘‘(D) to pay for costs of Federal personnel 
displaced by self-determination contracts under 
this Act or self-governance under this title. 
‘‘(h) FEDERAL RESOURCES.—If an Indian Tribe 
elects to carry out a compact or funding agreement with 
the use of Federal personnel, Federal supplies (including 
supplies available from Federal warehouse facilities), Fed-
eral supply sources (including lodging, airline transpor-
tation, and other means of transportation, including the 
use of interagency motor pool vehicles), or other Federal 
resources (including supplies, services, and resources 
available to the Secretary under any procurement con-
tracts in which the Department is eligible to participate), 
the Secretary shall, as soon as practicable, acquire and 
transfer such personnel, supplies, or resources to the In-
dian Tribe under this title. 
‘‘(i) PROMPT PAYMENT ACT.—Chapter 39 of title 31, 
United States Code, shall apply to the transfer of funds 
due under a compact or funding agreement authorized 
under this title. 
‘‘(j) INTEREST OR OTHER INCOME.— 
‘‘(1) IN GENERAL.—An Indian Tribe may re-
tain interest or income earned on any funds paid 
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under a compact or funding agreement to carry out 
governmental purposes. 
‘‘(2) NO EFFECT ON OTHER AMOUNTS.—The 
retention of interest or income under paragraph (1) 
shall not diminish the amount of funds an Indian 
Tribe is entitled to receive under a funding agree-
ment in the year the interest or income is earned or 
in any subsequent fiscal year. 
‘‘(3) INVESTMENT
STANDARD.—Funds trans-
ferred under this title shall be managed by the In-
dian Tribe using the prudent investment standard, 
provided that the Secretary shall not be liable for 
any investment losses of funds managed by the In-
dian Tribe that are not otherwise guaranteed or in-
sured by the Federal Government. 
‘‘(k) CARRYOVER OF FUNDS.— 
‘‘(1) IN GENERAL.—Notwithstanding any provi-
sion of an appropriations Act, all funds paid to an 
Indian Tribe in accordance with a compact or fund-
ing agreement shall remain available until expended. 
‘‘(2) EFFECT
OF
CARRYOVER.—If an Indian 
Tribe elects to carry over funding from one year to 
the next, the carryover shall not diminish the 
amount of funds the Indian Tribe is entitled to re-
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ceive under a funding agreement in that fiscal year 
or any subsequent fiscal year. 
‘‘(l) LIMITATION OF COSTS.— 
‘‘(1) IN GENERAL.—An Indian Tribe shall not 
be obligated to continue performance that requires 
an expenditure of funds in excess of the amount of 
funds transferred under a compact or funding agree-
ment. 
‘‘(2) NOTICE
OF
INSUFFICIENCY.—If at any 
time the Indian Tribe has reason to believe that the 
total amount provided for a specific activity under a 
compact or funding agreement is insufficient, the In-
dian Tribe shall provide reasonable notice of such in-
sufficiency to the Secretary. 
‘‘(3) SUSPENSION OF PERFORMANCE.—If, after 
notice under paragraph (2), the Secretary does not 
increase the amount of funds transferred under the 
funding agreement, the Indian Tribe may suspend 
performance of the activity until such time as addi-
tional funds are transferred. 
‘‘(4) SAVINGS CLAUSE.—Nothing in this section 
reduces any programs, services, or funds of, or pro-
vided to, another Indian Tribe. 
‘‘(m) DISTRIBUTION OF FUNDS.—The Office of Self- 
Governance shall be responsible for distribution of all Bu-
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reau of Indian Affairs funds provided under this title un-
less otherwise agreed by the parties to an applicable fund-
ing agreement. 
‘‘(n) APPLICABILITY.—Notwithstanding any other 
provision of this section, section 101(a) of the 
PROGRESS for Indian Tribes Act applies to subsections 
(a) through (m). 
‘‘SEC. 409. FACILITATION. 
‘‘(a) IN GENERAL.—Except as otherwise provided by 
law (including section 101(a) of the PROGRESS for In-
dian Tribes Act), the Secretary shall interpret each Fed-
eral law and regulation in a manner that facilitates— 
‘‘(1) the inclusion of programs in funding 
agreements; and 
‘‘(2) the implementation of funding agreements. 
‘‘(b) REGULATION WAIVER.— 
‘‘(1) REQUEST.—An Indian Tribe may submit 
to the Secretary a written request for a waiver of 
applicability of a Federal regulation, including— 
‘‘(A) an identification of the specific text in 
the regulation sought to be waived; and 
‘‘(B) the basis for the request. 
‘‘(2) DETERMINATION BY THE SECRETARY.— 
Not later than 120 days after receipt by the Sec-
retary and the designated officials under paragraph 
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(4) of a request under paragraph (1), the Secretary 
shall approve or deny the requested waiver in writ-
ing to the Indian Tribe. 
‘‘(3) EXTENSIONS.—The deadline described in 
paragraph (2) may be extended for any length of 
time, as agreed upon by both the Indian Tribe and 
the Secretary. 
‘‘(4) DESIGNATED OFFICIALS.—The Secretary 
shall designate one or more appropriate officials in 
the Department to receive a copy of the waiver re-
quest described in paragraph (1). 
‘‘(5) GROUNDS
FOR
DENIAL.—The Secretary 
may deny a request under paragraph (1) upon a 
specific finding by the Secretary that the identified 
text in the regulation may not be waived because 
such a waiver is prohibited by Federal law. 
‘‘(6) FAILURE TO MAKE DETERMINATION.—If 
the Secretary fails to make a determination with re-
spect to a waiver request within the period specified 
in paragraph (2) (including any extension agreed to 
under paragraph (3)), the Secretary shall be deemed 
to have agreed to the request, except that for a 
waiver request relating to programs eligible under 
section 403(b)(2) or section 403(c), the Secretary 
shall be deemed to have denied the request. 
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‘‘(7) FINALITY.—A decision of the Secretary 
under this section shall be final for the Department. 
‘‘SEC. 410. DISCRETIONARY APPLICATION OF OTHER SEC-
TIONS. 
‘‘(a) IN GENERAL.—Except as otherwise provided in 
section 201(d) of the PROGRESS for Indian Tribes Act, 
at the option of a participating Indian Tribe or Indian 
Tribes, any of the provisions of title I may be incorporated 
in any compact or funding agreement under this title. The 
inclusion of any such provision shall be subject to, and 
shall not conflict with, section 101(a) of such Act. 
‘‘(b) EFFECT.—Each incorporated provision under 
subsection (a) shall— 
‘‘(1) have the same force and effect as if set out 
in full in this title; 
‘‘(2) supplement or replace any related provi-
sion in this title; and 
‘‘(3) apply to any agency otherwise governed by 
this title. 
‘‘(c) EFFECTIVE DATE.—If an Indian Tribe requests 
incorporation at the negotiation stage of a compact or 
funding agreement, the incorporation shall— 
‘‘(1) be effective immediately; and 
‘‘(2) control the negotiation and resulting com-
pact and funding agreement. 
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‘‘SEC. 411. ANNUAL BUDGET LIST. 
‘‘The Secretary shall list, in the annual budget re-
quest submitted to Congress under section 1105 of title 
31, United States Code, any funds proposed to be included 
in funding agreements authorized under this title. 
‘‘SEC. 412. REPORTS. 
‘‘(a) IN GENERAL.— 
‘‘(1) REQUIREMENT.—On January 1 of each 
year, the Secretary shall submit to Congress a re-
port regarding the administration of this title. 
‘‘(2) ANALYSIS.—Any Indian Tribe may submit 
to the Office of Self-Governance and to the appro-
priate committees of Congress a detailed annual 
analysis of unmet Tribal needs for funding agree-
ments under this title. 
‘‘(b) CONTENTS.—The report under subsection (a)(1) 
shall— 
‘‘(1) be compiled from information contained in 
funding agreements, annual audit reports, and data 
of the Secretary regarding the disposition of Federal 
funds; 
‘‘(2) identify— 
‘‘(A) the relative costs and benefits of self- 
governance; 
‘‘(B) with particularity, all funds that are 
specifically or functionally related to the provi-
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sion by the Secretary of services and benefits to 
self-governance Indian Tribes and members of 
Indian Tribes; 
‘‘(C) the funds transferred to each Indian 
Tribe and the corresponding reduction in the 
Federal employees and workload; and 
‘‘(D) the funding formula for individual 
Tribal shares of all Central Office funds, to-
gether with the comments of affected Indian 
Tribes, developed under subsection (d); 
‘‘(3) before being submitted to Congress, be dis-
tributed to the Indian Tribes for comment (with a 
comment period of not less than 30 days); 
‘‘(4) include the separate views and comments 
of each Indian Tribe or Tribal organization; and 
‘‘(5) include a list of— 
‘‘(A) all such programs that the Secretary 
determines, in consultation with Indian Tribes 
participating in self-governance, are eligible for 
negotiation to be included in a funding agree-
ment at the request of a participating Indian 
Tribe; and 
‘‘(B) all such programs which Indian 
Tribes have formally requested to include in a 
funding agreement under section 403(c) due to 
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the special geographic, historical, or cultural 
significance of the program to the Indian Tribe, 
indicating whether each request was granted or 
denied, and stating the grounds for any denial. 
‘‘(c) REPORT ON NON-BIA PROGRAMS.— 
‘‘(1) IN GENERAL.—In order to optimize oppor-
tunities for including non-BIA programs in agree-
ments with Indian Tribes participating in self-gov-
ernance under this title, the Secretary shall review 
all programs administered by the Department, other 
than through the Bureau of Indian Affairs, the Of-
fice of the Assistant Secretary for Indian Affairs, or 
the Office of the Special Trustee for American Indi-
ans, without regard to the agency or office con-
cerned. 
‘‘(2) PROGRAMMATIC TARGETS.—The Secretary 
shall establish programmatic targets, after consulta-
tion with Indian Tribes participating in self-govern-
ance, to encourage bureaus of the Department to en-
sure that an appropriate portion of those programs 
are available to be included in funding agreements. 
‘‘(3) PUBLICATION.—The lists under subsection 
(b)(5) and targets under paragraph (2) shall be pub-
lished in the Federal Register and made available to 
any Indian Tribe participating in self-governance. 
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‘‘(4) ANNUAL REVIEW.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
annually review and publish in the Federal Reg-
ister, after consultation with Indian Tribes par-
ticipating in self-governance, revised lists and 
programmatic targets. 
‘‘(B) CONTENTS.—In preparing the revised 
lists and programmatic targets, the Secretary 
shall consider all programs that were eligible 
for contracting in the original list published in 
the Federal Register in 1995, except for pro-
grams specifically determined not to be con-
tractible as a matter of law. 
‘‘(d) REPORT ON CENTRAL OFFICE FUNDS.—Not 
later than January 1, 2020, the Secretary shall, in con-
sultation with Indian Tribes, develop a funding formula 
to determine the individual Tribal share of funds con-
trolled by the Central Office of the Bureau of Indian Af-
fairs and the Office of the Special Trustee for inclusion 
in the compacts. 
‘‘SEC. 413. REGULATIONS. 
‘‘(a) IN GENERAL.— 
‘‘(1) PROMULGATION.—Not later than 90 days 
after the date of enactment of the PROGRESS for 
Indian Tribes Act, the Secretary shall initiate proce-
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dures under subchapter III of chapter 5 of title 5, 
United States Code, to negotiate and promulgate 
such regulations as are necessary to carry out this 
title. 
‘‘(2) PUBLICATION
OF
PROPOSED
REGULA-
TIONS.—Proposed regulations to implement this title 
shall be published in the Federal Register not later 
than 21 months after the date of enactment of the 
PROGRESS for Indian Tribes Act. 
‘‘(3) EXPIRATION OF AUTHORITY.—The author-
ity to promulgate regulations under paragraph (1) 
shall expire on the date that is 30 months after the 
date of enactment of the PROGRESS for Indian 
Tribes Act. 
‘‘(b) COMMITTEE.— 
‘‘(1) MEMBERSHIP.—A negotiated rulemaking 
committee established pursuant to section 565 of 
title 5, United States Code, to carry out this section 
shall have as its members only representatives of the 
Federal Government and Tribal government. 
‘‘(2) LEAD AGENCY.—Among the Federal rep-
resentatives described in paragraph (1), the Office of 
Self-Governance shall be the lead agency for the De-
partment. 
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‘‘(c) ADAPTATION OF PROCEDURES.—The Secretary 
shall adapt the negotiated rulemaking procedures to the 
unique context of self-governance and the government-to- 
government relationship between the United States and 
Indian Tribes. 
‘‘(d) EFFECT.— 
‘‘(1) REPEAL.—The Secretary may repeal any 
regulation that is inconsistent with this Act. 
‘‘(2) CONFLICTING
PROVISIONS.—Subject to 
section 101(a) of the PROGRESS for Indian Tribes 
Act and except with respect to programs described 
under section 403(c), this title shall supersede any 
conflicting provision of law (including any conflicting 
regulations). 
‘‘(3) EFFECTIVENESS
WITHOUT
REGARD
TO 
REGULATIONS.—The lack of promulgated regula-
tions on an issue shall not limit the effect or imple-
mentation of this title. 
‘‘SEC. 414. EFFECT OF CIRCULARS, POLICIES, MANUALS, 
GUIDANCE, AND RULES. 
‘‘Unless expressly agreed to by a participating Indian 
Tribe in a compact or funding agreement, the partici-
pating Indian Tribe shall not be subject to any agency 
circular, policy, manual, guidance, or rule adopted by the 
Department, except for— 
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‘‘(1) the eligibility provisions of section 105(g); 
and 
‘‘(2) regulations promulgated pursuant to sec-
tion 413. 
‘‘SEC. 415. APPEALS. 
‘‘Except as provided in section 406(d), in any admin-
istrative action, appeal, or civil action for judicial review 
of any decision made by the Secretary under this title, 
the Secretary shall have the burden of proof of dem-
onstrating by a preponderance of the evidence— 
‘‘(1) the validity of the grounds for the decision; 
and 
‘‘(2) the consistency of the decision with the re-
quirements and policies of this title. 
‘‘SEC. 416. APPLICATION OF OTHER PROVISIONS. 
‘‘Section 314 of the Department of the Interior and 
Related Agencies Appropriations Act, 1991 (Public Law 
101–512; 104 Stat. 1959), shall apply to compacts and 
funding agreements entered into under this title. 
‘‘SEC. 417. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There are authorized to be appropriated such sums 
as may be necessary to carry out this title.’’. 
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TITLE II—INDIAN SELF- 
DETERMINATION 
SEC. 201. DEFINITIONS; REPORTING AND AUDIT REQUIRE-
MENTS; APPLICATION OF PROVISIONS. 
(a) DEFINITIONS.— 
(1) IN GENERAL.—Section 4 of the Indian Self- 
Determination and Education Assistance Act (25 
U.S.C. 5304) is amended by striking subsection (j) 
and inserting the following: 
‘‘(j) ‘self-determination contract’ means a contract 
entered into under title I (or a grant or cooperative agree-
ment used under section 9) between a Tribal organization 
and the appropriate Secretary for the planning, conduct, 
and administration of programs or services that are other-
wise provided to Indian Tribes and members of Indian 
Tribes pursuant to Federal law, subject to the condition 
that, except as provided in section 105(a)(3), no contract 
entered into under title I (or grant or cooperative agree-
ment used under section 9) shall be— 
‘‘(1) considered to be a procurement contract; 
or 
‘‘(2) except as provided in section 107(a)(1), 
subject to any Federal procurement law (including 
regulations);’’. 
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(2) TECHNICAL
AMENDMENTS.—Section 4 of 
the Indian Self-Determination and Education Assist-
ance Act (25 U.S.C. 5304), as amended by para-
graph (1), is further amended— 
(A) in subsection (e), by striking ‘‘ ‘Indian 
tribe’ means’’ and inserting ‘‘ ‘Indian tribe’ or 
‘Indian Tribe’ means’’; and 
(B) in subsection (l), by striking ‘‘ ‘tribal 
organization’ means’’ and inserting ‘‘ ‘Tribal or-
ganization’ or ‘tribal organization’ means’’. 
(b) REPORTING AND AUDIT REQUIREMENTS.—Sec-
tion 5 of the Indian Self-Determination and Education As-
sistance Act (25 U.S.C. 5305) is amended— 
(1) in subsection (b)— 
(A) by striking ‘‘after completion of the 
project or undertaking referred to in the pre-
ceding subsection of this section’’ and inserting 
‘‘after the retention period for the report that 
is submitted to the Secretary under subsection 
(a)’’; and 
(B) by adding at the end the following: 
‘‘The retention period shall be defined in regu-
lations promulgated by the Secretary pursuant 
to section 413.’’; and 
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(2) in subsection (f)(1), by inserting ‘‘if the In-
dian Tribal organization expends $500,000 or more 
in Federal awards during such fiscal year’’ after 
‘‘under this Act,’’. 
(c) EFFECTIVE DATE.—The amendment made by 
subsection (b)(2) shall not take effect until 14 months 
after the date of enactment of this Act. 
(d) APPLICATION OF OTHER PROVISIONS.—Sections 
4, 5, 6, 7, 102(c), 104, 105(a)(1), 105(f), 110, and 111 
of the Indian Self-Determination and Education Assist-
ance Act (25 U.S.C. 5304, 5305, 5306, 5307, 5321(c), 
5323, 5324(a)(1), 5324(f), 5331, and 5332) and section 
314 of the Department of the Interior and Related Agen-
cies Appropriations Act, 1991 (Public Law 101–512; 104 
Stat. 1959), apply to compacts and funding agreements 
entered into under title IV of the Indian Self-Determina-
tion and Education Assistance Act (25 U.S.C. 5361 et 
seq.). 
SEC. 202. CONTRACTS BY SECRETARY OF THE INTERIOR. 
Section 102 of the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 5321) is amended— 
(1) in subsection (c)(2), by striking ‘‘economic 
enterprises’’ and all that follows through ‘‘except 
that’’ and inserting ‘‘economic enterprises (as de-
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fined in section 3 of the Indian Financing Act of 
1974 (25 U.S.C. 1452)), except that’’; and 
(2) by adding at the end the following: 
‘‘(f) GOOD FAITH REQUIREMENT.—In the negotia-
tion of contracts and funding agreements, the Secretary 
shall— 
‘‘(1) at all times negotiate in good faith to 
maximize implementation of the self-determination 
policy; and 
‘‘(2) carry out this Act in a manner that maxi-
mizes the policy of Tribal self-determination, in a 
manner consistent with— 
‘‘(A) the purposes specified in section 3; 
and 
‘‘(B) the PROGRESS for Indian Tribes 
Act. 
‘‘(g) RULE OF CONSTRUCTION.—Subject to section 
101(a) of the PROGRESS for Indian Tribes Act, each 
provision of this Act and each provision of a contract or 
funding agreement shall be liberally construed for the ben-
efit of the Indian Tribe participating in self-determination, 
and any ambiguity shall be resolved in favor of the Indian 
Tribe.’’. 
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SEC. 203. ADMINISTRATIVE PROVISIONS. 
Section 105 of the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 5324) is amended— 
(1) in subsection (b), in the first sentence, by 
striking ‘‘pursuant to’’ and all that follows through 
‘‘of this Act’’ and inserting ‘‘pursuant to sections 
102 and 103’’; and 
(2) by adding at the end the following: 
‘‘(p) INTERPRETATION BY SECRETARY.—Except as 
otherwise provided by law, the Secretary shall interpret 
all Federal laws (including regulations) and Executive or-
ders in a manner that facilitates, to the maximum extent 
practicable— 
‘‘(1) the inclusion in self-determination con-
tracts and funding agreements of— 
‘‘(A) applicable programs, services, func-
tions, and activities (or portions thereof); and 
‘‘(B) funds associated with those pro-
grams, services, functions, and activities; 
‘‘(2) the implementation of self-determination 
contracts and funding agreements; and 
‘‘(3) the achievement of Tribal health objec-
tives. 
‘‘(q)(1) TECHNICAL
ASSISTANCE
FOR
INTERNAL 
CONTROLS.—In considering proposals for, amendments 
to, or in the course of, a contract under this title and com-
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pacts under titles IV and V of this Act, if the Secretary 
determines that the Indian Tribe lacks adequate internal 
controls necessary to manage the contracted program or 
programs, the Secretary shall, as soon as practicable, pro-
vide the necessary technical assistance to assist the Indian 
Tribe in developing adequate internal controls. As part of 
that technical assistance, the Secretary and the Tribe shall 
develop a plan for assessing the subsequent effectiveness 
of such technical assistance. The inability of the Secretary 
to provide technical assistance or lack of a plan under this 
subsection shall not result in the reassumption of an exist-
ing agreement, contract, or compact, or declination or re-
jection of a new agreement, contract, or compact. 
‘‘(2) The Secretary shall prepare a report to be in-
cluded in the information required for the reports under 
sections 412(b)(2)(A) and 514(b)(2)(A). The Secretary 
shall include in this report, in the aggregate, a description 
of the internal controls that were inadequate, the technical 
assistance provided, and a description of Secretarial ac-
tions taken to address any remaining inadequate internal 
controls after the provision of technical assistance and im-
plementation of the plan required by paragraph (1).’’. 
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SEC. 204. CONTRACT FUNDING AND INDIRECT COSTS. 
Section 106(a)(3) of the Indian Self-Determination 
and Education Assistance Act (25 U.S.C. 5325(a)(3)) is 
amended— 
(1) in subparagraph (A)— 
(A) in clause (i), by striking ‘‘, and’’ and 
inserting ‘‘; and’’; and 
(B) in clause (ii), by striking ‘‘expense re-
lated to the overhead incurred’’ and inserting 
‘‘expense incurred by the governing body of the 
Indian Tribe or Tribal organization and any 
overhead expense incurred’’; 
(2) by redesignating subparagraph (B) as sub-
paragraph (C); and 
(3) by inserting after subparagraph (A) the fol-
lowing: 
‘‘(B) In calculating the reimbursement rate 
for expenses described in subparagraph (A)(ii), 
not less than 50 percent of the expenses de-
scribed in subparagraph (A)(ii) that are in-
curred by the governing body of an Indian 
Tribe or Tribal organization relating to a Fed-
eral program, function, service, or activity car-
ried out pursuant to the contract shall be con-
sidered to be reasonable and allowable.’’. 
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SEC. 205. CONTRACT OR GRANT SPECIFICATIONS. 
Section 108 of the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 5329) is amended— 
(1) in subsection (a)(2), by inserting ‘‘subject 
to subsections (a) and (b) of section 102,’’ before 
‘‘contain’’; 
(2) in subsection (f)(2)(A)(ii) of the model 
agreement contained in subsection (c), by inserting 
‘‘subject to subsections (a) and (b) of section 102 of 
the Indian Self-Determination and Education Assist-
ance Act (25 U.S.C. 5321),’’ before ‘‘such other pro-
visions’’; and 
(3) in subsection (b)(7)(C) of the model agree-
ment contained in subsection (c), in the second sen-
tence of the matter preceding clause (i), by striking 
‘‘one performance monitoring visit’’ and inserting 
‘‘two performance monitoring visits’’. 
Æ 
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