CROW AGENCY — The Trump administration's major tax and spending bill, approved last week, aims to cut federal spending for the Bureau of Indian Education, which tribal leaders fear will harm tribal colleges in Montana.
In the 2026 Department of Interior's Fiscal Year Budget Brief, the Bureau of Indian Education anticipates losing almost 90% of its funding, gutting dozens of tribal colleges and universities across the country.
In Montana, that means secondary education institutions on reservations, including Little Big Horn College in Crow Agency.
Learn more about the proposal and how it could impact LBHC below:
Like many colleges and universities, educators at Little Big Horn College spend their summer preparing for the upcoming school year. However, the new school year may look completely different than last year.
"It impacts us greatly," said Sharon Peregoy, an instructor at LBHC and the department head of the liberal arts program.
According to Peregoy, leaders at LBHC aren't sure what to expect if the Department of the Interior's proposed budget becomes reality, and the college loses about 90% of its funding. Peregoy said the impacts could overwhelming for both the college and community.
"There's great impacts, and they are yet to be seen. But carried forward, it will be devastating," she told MTN on Wednesday.
LBHC is one seven tribal higher education institutions in the state. Nationally, there are 37. Not only could the budget cuts impact LBHC and Chief Dull Knife College in Lame Deer, but they could also impact larger institutions across the country.
LBHC has 75 employees and typically educates about 300 students a year. It receives about $4 million from the federal government each year. One million of that comes from two five-year grants, which have already been appropriated. Both of those grants end next year.
Considering the federal government's 2026 fiscal year begins in October, those impacts could come a lot sooner than January, according to Peregoy.
"What the Trump Administration is doing particularly for us on the Crow Indian Reservation, it's impacted the livelihood and access to education for a number of Crow tribal members," said Peregoy, a former Montana Democratic state lawmaker.
Peregoy also noted that her dismay about the budget cuts comes from the history behind the 1920 Crow Act, a treaty the tribe signed a century ago with the U.S. government. According to Peregoy, the act states that the Crow Tribe could exchange its land for bolstering education for the Crow people.
"(We're) already an impoverished community. We'll be devastated by what the Trump Administration has done," she said.
The direct funding cuts are outlined in the US's Department of Interior's Budget Brief. For the 2025 fiscal year, the Bureau of Indian Education was appropriated $183.2 million for post-secondary programs. The 2026 request is only $22.1 million, which is about an 88% decrease.
In the White House's recommendation letter regarding their recommendations to the funding changes, the brief description for the Bureau of Indian Education's reduction states, "The Bureau of Indian Education Construction account has been plagued by poor program management, cost overruns, and delays in school construction and repairs. The reduction of inefficient projects from this account would accompany a renewed effort to improve the program’s performance."
If the budget were to be approved, LBHC would only be receiving about $400,000 from the federal government to support employees and students. According to Peregoy, not only would students and educators at the school be hurt, but so would the greater community of Crow Agency The school's library and the Health and Wellness Center are also public resources for residents in Crow Agency.
"We're just going to hunker down and just see what happens. And if the funds don't come, then we're just going to have to figure out if we have to close our doors, or if we're going to have to have a small skeleton crew to move forward," she said.
LBHC still plans on starting the new school year at the end of August. Peregoy said she and staff will take things one day at a time once October comes. Until then, Peregoy said she's trying to remain optimistic for the future.
"The only thing is, we can be hopeful," she said.
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