We’re In the Funding, White House Confirms Full Contract Support Costs

Rob Capriccioso

The White House confirmed February 18 that it has backed off its request last year to Congress to cap contract support costs (CSC) owed to tribes for services provided to tribal citizens by tribal contractors.

RELATED: Administration Agrees to Fully Pay Tribal Contract Support Costs

“The administration will fully fund contract support costs for federally-recognized tribes in 2014,” said a White House official. “Last fall’s FY 2014 continuing resolution funded the Bureau of Indian Affairs (BIA) and the Indian Health Service (IHS) contract support costs at the agencies' estimates of full costs. Based on the funding provided in the FY 2014 omnibus, which was enacted in January, both BIA and IHS will fund CSCs at the agencies’ estimates of full costs.

“The administration is working with BIA and IHS to develop a long-term accounting and budget strategy to address CSCs in consultation with tribes,” the White House official added.

In terms of hard numbers, the IHS budget obligates $587 million to fund CSC in full this year, which is $139.6 million more than had been appropriated in fiscal year 2013.

It was initially unclear on February 18 whether the BIA has budgeted sufficient funding to fully fund CSC this year, according to tribal advocates. That’s because the BIA budgeted its CSC funding requirement based on its April 30, 2012 submission to Congress. That submission was based on a $230 million cap, which was reported at the time to be $12 million short of the full $242 million requirement.


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