---
kind: "section"
citation: "25 U.S.C. § 5385"
title: "25"
title_heading: "Indians"
number: "5385"
heading: "Funding agreements"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/25/5385"
units:
  - "Chapter 46 — Indian Self-Determination and Education Assistance"
  - "Subchapter V — Tribal Self-Governance—indian Health Service"
---

# §5385. Funding agreements

- (a) **Funding agreement required—** The [Secretary](/usc/25/5381.md?p=a-6) shall negotiate and enter into a written funding agreement with each [Indian tribe](/usc/25/5381.md?p=b) participating in [self-governance](/usc/25/5381.md?p=a-7) in a manner consistent with the Federal Government’s trust responsibility, treaty obligations, and the government-to-government relationship between [Indian tribes](/usc/25/5381.md?p=b) and the United States.
- (b) **Contents—**
  - (1) **In general—** Each funding agreement required under [subsection (a)](#a) of this section shall, as determined by the [Indian tribe](/usc/25/5381.md?p=b), authorize the [Indian tribe](/usc/25/5381.md?p=b) to plan, conduct, consolidate, administer, and receive full [tribal share](/usc/25/5381.md?p=a-8) funding, including [tribal shares](/usc/25/5381.md?p=a-8) of discretionary [Indian](/usc/25/5304.md?p=d) Health Service competitive grants (excluding congressionally earmarked competitive grants), for all programs, services, functions, and activities (or portions thereof), that are carried out for the benefit of [Indians](/usc/25/5304.md?p=d) because of their status as [Indians](/usc/25/5304.md?p=d) without regard to the agency or office of the [Indian](/usc/25/5304.md?p=d) Health Service within which the program, service, function, or activity (or portion thereof) is performed.
  - (2) **Inclusion of certain programs, services, functions, and activities—** Such programs, services, functions, or activities (or portions thereof) include all programs, services, functions, activities (or portions thereof), including grants (which may be added to a funding agreement after an award of such grants), with respect to which [Indian tribes](/usc/25/5381.md?p=b) or [Indians](/usc/25/5304.md?p=d) are primary or significant beneficiaries, administered by the Department of Health and Human Services through the [Indian](/usc/25/5304.md?p=d) Health Service and all local, field, service unit, area, regional, and central headquarters or national office functions so administered under the authority of—
    - (A) [section 13 of this title](/usc/25/13.md);
    - (B) the Act of April 16, 1934 (48 Stat. 596; chapter 147; [25 U.S.C. 452](/usc/25/452.md) et seq.);[^1]
    - (C) the Act of August 5, 1954 (68 Stat. 674; chapter 658) [[42 U.S.C. 2001](/usc/42/2001.md) et seq.];
    - (D) the [Indian](/usc/25/5304.md?p=d) Health Care Improvement Act ([25 U.S.C. 1601](/usc/25/1601.md) et seq.);
    - (E) the [Indian](/usc/25/5304.md?p=d) Alcohol and Substance Abuse Prevention and Treatment Act of 1986 ([25 U.S.C. 2401](/usc/25/2401.md) et seq.);
    - (F) any other Act of Congress authorizing any agency of the Department of Health and Human Services to administer, carry out, or provide financial assistance to such a program, service, function or activity (or portions thereof) described in this section that is carried out for the benefit of [Indians](/usc/25/5304.md?p=d) because of their status as [Indians](/usc/25/5304.md?p=d); or
    - (G) any other Act of Congress authorizing such a program, service, function, or activity (or portions thereof) carried out for the benefit of [Indians](/usc/25/5304.md?p=d) under which appropriations are made available to any agency other than an agency within the Department of Health and Human Services, in any case in which the [Secretary](/usc/25/5381.md?p=a-6) administers that program, service, function, or activity (or portion thereof).
- (c) **Inclusion in compact or funding agreement—** It shall not be a requirement that an [Indian tribe](/usc/25/5381.md?p=b) or [Indians](/usc/25/5304.md?p=d) be identified in the authorizing statute for a program or element of a program to be eligible for inclusion in a compact or funding agreement under this subchapter.
- (d) **Funding agreement terms—** Each funding agreement under this subchapter shall set forth—
  - (1) terms that generally identify the programs, services, functions, and activities (or portions thereof) to be performed or administered; and
  - (2) for the items identified in [paragraph (1)](#d-1)—
    - (A) the general budget category assigned;
    - (B) the funds to be provided, including those funds to be provided on a recurring basis;
    - (C) the time and method of transfer of the funds;
    - (D) the responsibilities of the [Secretary](/usc/25/5381.md?p=a-6); and
    - (E) any other provision with respect to which the [Indian tribe](/usc/25/5381.md?p=b) and the [Secretary](/usc/25/5381.md?p=a-6) agree.
- (e) **Subsequent funding agreements—** Absent notification from an [Indian tribe](/usc/25/5381.md?p=b) that is withdrawing or retroceding the operation of one or more programs, services, functions, or activities (or portions thereof) identified in a funding agreement, or unless otherwise agreed to by the parties, each funding agreement shall remain in full force and effect until a subsequent funding agreement is executed, and the terms of the subsequent funding agreement shall be retroactive to the end of the term of the preceding funding agreement.
- (f) **Existing funding agreements—** Each [Indian tribe](/usc/25/5381.md?p=b) participating in the Tribal [Self-Governance](/usc/25/5381.md?p=a-7) Demonstration Project established under title III[^1] on August 18, 2000, shall have the option at any time thereafter to—
  - (1) retain the Tribal [Self-Governance](/usc/25/5381.md?p=a-7) Demonstration Project funding agreement of that [Indian tribe](/usc/25/5381.md?p=b) (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 subchapter; or
  - (2) instead of retaining a funding agreement or portion thereof under [paragraph (1)](#f-1), negotiate a new funding agreement in a manner consistent with the requirements of this subchapter.
- (g) **Stable base funding—** At the option of an [Indian tribe](/usc/25/5381.md?p=b), a funding agreement may provide for a stable base budget specifying the recurring funds (including, for purposes of this provision, funds available under [section 5325(a) of this title](/usc/25/5325.md?p=a)) to be transferred to such [Indian tribe](/usc/25/5381.md?p=b), for such period as may be specified in the funding agreement, subject to annual adjustment only to reflect changes in congressional appropriations by sub-sub activity excluding earmarks.

## Footnotes

[^1]: See References in Text note below.

## Source credit

(Pub. L. 93–638, title V, § 505, as added Pub. L. 106–260, § 4, Aug. 18, 2000, 114 Stat. 716.)

## Notes

### Editorial Notes

### References in Text

Act of April 16, 1934, referred to in subsec. (b)(2)(B), is act Apr. 16, 1934, ch. 147, 48 Stat. 596, popularly known as the Johnson-O’Malley Act, which was classified generally to section 452 et seq. of this title prior to editorial reclassification as section 5342 et seq. of this title. For complete classification of this Act to the Code, see Short Title note set out under section 5301 of this title and Tables.

Act of August 5, 1954, referred to in subsec. (b)(2)(C), is act Aug. 5, 1954, ch. 658, 68 Stat. 674, which is classified generally to subchapter I (§ 2001 et seq.) of chapter 22 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Tables.

The Indian Health Care Improvement Act, referred to in subsec. (b)(2)(D), is Pub. L. 94–437, Sept. 30, 1976, 90 Stat. 1400, which is classified principally to chapter 18 (§ 1601 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1601 of this title and Tables.

The Indian Alcohol and Substance Abuse Prevention and Treatment Act of 1986, referred to in subsec. (b)(2)(E), is subtitle C of title IV of Pub. L. 99–570, Oct. 27, 1986, 100 Stat. 3207–137, which is classified generally to chapter 26 (§ 2401 et seq.) of this title. For complete classification of subtitle C to the Code, see Short Title note set out under section 2401 of this title and Tables.

Title III, referred to in subsec. (f), means title III of Pub. L. 93–638, as added by Pub. L. 100–472, title II, § 209, Oct. 5, 1988, 102 Stat. 2296, which was set out as a note under former section 450f of this title prior to repeal by Pub. L. 106–260, § 10, Aug. 18, 2000, 114 Stat. 734.

### Codification

Section was formerly classified to section 458aaa–4 of this title prior to editorial reclassification and renumbering as this section.