Massive MISUSE of Funds Exposed

Empty classroom with desks chairs and whiteboard

Two tribal nations have sued the U.S. government for allegedly misusing billions in tribal trust funds to finance abusive boarding schools where Native American children suffered cultural erasure and abuse.

Key Takeaways

  • The Wichita and Washoe Tribes filed a lawsuit against the U.S. government for using tribal trust funds to finance boarding schools where Native American children were abused.
  • Approximately $23.3 billion was appropriated for the boarding school program, with no accounting of these funds or how they were spent.
  • The schools were funded using money from treaties that forced tribes to cede their lands, funds that were supposed to be held in trust for tribal benefit.
  • The lawsuit names Interior Secretary Doug Burgum, the Bureau of Indian Affairs, and the Bureau of Indian Education as defendants.
  • President Biden has formally apologized for the boarding school policy, calling it “a sin on our soul” and “one of the most horrific chapters” in American history.

Tribal Nations Demand Accountability for Misappropriated Funds

In a significant legal challenge against federal authorities, the Wichita Tribe and the Washoe Tribe of Nevada and California have filed a lawsuit claiming the U.S. government wrongfully diverted tribal trust fund money to finance boarding schools where Native children suffered systematic abuse. The legal action targets Interior Secretary Doug Burgum, the Bureau of Indian Affairs, and the Bureau of Indian Education, seeking accountability for what plaintiffs describe as a massive financial betrayal spanning generations. According to court documents, the government has failed to provide any accounting of the estimated $23.3 billion appropriated for these institutions.

“The United States Government, the trustee over Native children’s education and these funds, has never accounted for the funds that it took, or detailed how, or even whether, those funds were ultimately expended. It has failed to identify any funds that remain” According to lawsuit

Historical Context Deepens Financial Violations

The misappropriation case is particularly egregious when viewed in historical context. The funding for these boarding schools came directly from treaties that had already forced tribes to cede vast territories. These agreements specifically designated that resulting funds would be held in trust for the tribes’ benefit. Instead, according to the lawsuit, the government redirected this money to finance institutions designed to eradicate Native American culture. A 2022 report from the Department of the Interior confirmed the boarding schools functioned as tools for cultural assimilation and dispossession of Native lands.

The systemic abuse perpetrated at these institutions has been formally acknowledged by President Biden, who issued an apology for the boarding school policy. “A sin on our soul” and “one of the most horrific chapters” in American history, Biden stated, recognizing the government’s moral failing. This acknowledgment came after decades of silence from federal authorities regarding both the human rights abuses and the financial mismanagement that enabled them Stated President Biden

Ongoing Battle for Financial Justice

The tribes’ legal action specifically demands a complete accounting of the billions appropriated for the boarding school program and detailed information about any remaining funds. This represents more than just a financial audit – it seeks to address a fundamental violation of trust between the federal government and sovereign tribal nations. The lawsuit highlights how the government has consistently failed to maintain its fiduciary responsibilities to Native communities, while simultaneously inflicting generational trauma through these educational institutions.

The Trump administration has inherited a complex situation, following reports that previous administrations cut $1.6 million from projects aimed at documenting and preserving the stories of boarding school survivors. This reduction in funding hampered efforts to fully understand the scope of abuses that occurred within these institutions. The current administration faces mounting pressure to address both historical injustices and ongoing financial obligations to tribal nations whose trust funds were misappropriated for purposes that ultimately harmed their communities.

Calls for Systemic Reform

Beyond the specific financial accounting sought in the lawsuit, tribal leaders are advocating for comprehensive reforms to prevent future misappropriation of Native American resources. The case reveals deep structural problems in how the federal government manages its trust responsibilities toward tribal nations. Accountability mechanisms must be strengthened to ensure funds designated for tribal benefit actually serve their intended purpose rather than being diverted to programs that harm Native communities.

As this lawsuit progresses through the courts, it stands as a powerful reminder that financial justice is inseparable from broader questions of tribal sovereignty and self-determination. The alleged misuse of $23.3 billion in tribal funds represents not just accounting errors but a fundamental breach of trust that compounds historical injustices. For many conservatives who value fiscal responsibility and governmental accountability, this case highlights the importance of honoring legal obligations and ensuring proper oversight of federal spending, especially when it involves funds held in trust for specific purposes.