BILLIONS Vanished? Historic Lawsuit Filed

Threestory yellow building with many windows
School building. Exterior view of school.

Native American tribes file a groundbreaking $23.3 billion lawsuit against the U.S. government for the misappropriation of tribal funds to finance abusive boarding schools that destroyed indigenous cultures and families for generations.

Key Takeaways

  • The Wichita and Washoe Tribes have sued the federal government for using tribal trust funds to finance boarding schools where Native children were subjected to abuse and cultural erasure.
  • The lawsuit alleges that approximately $23.3 billion of tribal money from land cession treaties was misappropriated to fund these schools without proper accounting or transparency.
  • The boarding schools were deliberately designed as tools for cultural assimilation and land dispossession, according to a 2022 Department of the Interior report.
  • Despite President Biden’s formal apology calling the schools “a sin on our soul,” the government has failed to account for how the funds were spent or what remains.
  • The case represents a significant step toward financial accountability for historical injustices against Native American communities.

Tribal Nations Demand Financial Accountability

In a significant legal challenge against decades of financial mismanagement, the Wichita Tribe and the Washoe Tribe of Nevada and California have filed a lawsuit targeting the U.S. government’s handling of tribal trust funds. The lawsuit specifically names Interior Secretary Doug Burgum, the Bureau of Indian Affairs, and the Bureau of Indian Education as defendants. At the center of this legal action is the allegation that the federal government diverted tribal money to finance a boarding school system that systematically abused Native American children and attempted to eradicate their cultural identity, all while failing to provide any accounting for these funds.

The legal action focuses on trust money that originated from treaties forcing tribes to cede vast territories to the United States. These funds, by law, were supposed to be held in trust for the benefit of the tribes. Instead, according to the lawsuit, the government redirected these resources to establish and operate boarding schools that became instruments of cultural genocide. What makes this case particularly striking is the scope of the alleged financial misconduct – the tribes are seeking an accounting of an estimated $23.3 billion appropriated for the boarding school program throughout its operation.

“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

The Dark Legacy of Boarding Schools

A comprehensive report released in 2022 by the U.S. Department of the Interior laid bare the horrific legacy of the Native American boarding school era. This investigation documented how these institutions were deliberately designed as instruments for cultural assimilation and territorial acquisition. Children were forcibly removed from their families and communities, subjected to physical and emotional abuse, forbidden from speaking their native languages, and compelled to abandon their cultural practices and religious beliefs. This systematic approach was explicitly aimed at destroying indigenous identities and assimilating Native children into mainstream American society.

The historical wounds inflicted by these policies continue to reverberate through Native communities today in the form of intergenerational trauma, cultural disconnection, and language loss. Adding insult to injury, these destructive institutions were funded using money that rightfully belonged to the tribes themselves – resources that had been promised as compensation for massive land cessions. The lawsuit contends that this represents a profound breach of the government’s fiduciary responsibility to manage tribal assets for the benefit of Native communities, not to finance their cultural destruction.

“a sin on our soul” Said President Joe Biden

Political Response and Accountability

The Biden administration has taken symbolic steps to acknowledge this dark chapter in American history. President Biden issued a formal apology for the boarding school policy, describing it as “one of the most horrific chapters” and “a sin on our soul” in American history. However, tribal leaders argue that meaningful accountability requires more than words – it demands full financial transparency and the return of misappropriated funds. The government’s continued failure to provide a comprehensive accounting of how tribal money was spent and what funds remain represents an ongoing breach of trust that prevents true reconciliation.

Meanwhile, funding for initiatives to document and address this historical injustice has faced political challenges. During his first term, the Trump administration cut $1.6 million from projects aimed at preserving the stories of boarding school survivors. This decision further complicated efforts to achieve historical reckoning. As President Trump begins his second term, Native American advocates are watching closely to see whether his administration will support financial accountability for these historical wrongs or continue to sideline these concerns in favor of other priorities Stated President Biden

The lawsuit represents more than just a quest for financial restitution – it highlights the need for comprehensive healing that can only begin with full acknowledgment of how tribal resources were misused to fund policies that devastated Native communities. For the Wichita and Washoe Tribes, true justice requires not just apologies but a complete accounting of their misappropriated funds and the return of any remaining resources to their rightful owners.