Carl Horowitz

If ever a federal agency were a candidate for termination, the Bureau of Indian Affairs (BIA) would make for a good choice. The BIA combines patronage and ethnic separatism into a single package, wasting sizable tax dollars in the process. Yet few in Congress have the stomach for a fight with supporters of the bureau, now with a roughly $2.7 billion annual budget. That’s not the only Indian agency in need of serious downsizing.

The Bureau of Indian Affairs actually goes back nearly two centuries. Secretary of War John Calhoun virtually single-handedly created the BIA in 1824 to oversee treaty negotiations, conduct trade, establish budgets, and operate schools. In 1849, Congress moved the bureau from the War Department to the new Interior Department, where it since has been housed. In recent decades, the agency has become a conduit through which tribal leaders and their allies can accrue money and influence. It’s a variation on what public choice economists call “regulatory capture,” in which firms – especially large ones – effectively dictate policies and practices to the regulator, so as to maximize competitive advantage.

The current system is a by-product of periodic warfare beginning in the early-17th century and lasting through most of the 19th century. There are now 565 federally-recognized Indian (including Alaskan) tribes in this land of ours, representing nearly two million persons. Indian territories comprise some 55 million surface acres. Crucially, a tribe operates under a federal grant of sovereign status. Taken as a whole, Indian tribes are a loose confederacy of mini-nations, each with its own elected tribal government overseeing courts, schools, job training, health care, infrastructure development, and on due occasion, casinos.

Within their respective reservations, tribal leaders enjoy enormous power. Too often, they and employees use this power as a cover for corruption. Recent cases abound. At the Fort Peck Indian Reservation in northeastern Montana, for example, six office employees – two federal and four tribal – pleaded guilty last year to embezzling roughly $400,000 from a tribal credit program. In Oklahoma, Dawena Pappan, former secretary-treasurer for the Tonkawa tribe, pleaded guilty in federal court that year to stealing hundreds of thousands of dollars in casino proceeds with help from other Tonkawa officers.


Carl Horowitz

Carl F. Horowitz is director of the Organized Labor Accountability Project of the National Legal and Policy Center, a Townhall.com Gold Partner organization dedicated to promoting ethics in American public life.
 
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