The United States flag flies in front of Montana Hall at Montana State University in Bozeman, Montana
A new group of students will become eligible for an American Indian tuition waiver in Montana starting July 1, 2026, a change expected to expand access to higher education while raising concerns among some tribal leaders.The waiver program, administered by the University of Montana System, covers tuition costs for eligible Native American students. About 800 students benefit from the scholarship each year, costing the state about $3.8 million, according to the Office of the Commissioner of Higher Education.Under previous rules, students had to be enrolled members of a federally recognized tribe in Montana or show at least a quarter of their tribal ancestry, along with financial need and in-state residency.
The Montana Board of Trustees approved the changes in July 2025. These changes include removing blood quantum requirements and expanding eligibility to include undocumented descendants of tribes. Students must still demonstrate financial need and residency in Montana.Officials said the move was influenced by Donald Trump’s January 2025 executive order, which called on institutions to end what he described as unlawful diversity, equity and inclusion discrimination.
Concerns about policy and consultation
according to news agencyFederal guidance raised concerns that the previous requirement could be considered racial discrimination, officials said.At a state Legislative Committee meeting in December 2025, Galen Hollenbaugh said the changes were made to ensure “long-term stability of the exemption.” He said there are concerns that the previous standards could put the program at risk under federal scrutiny.Some tribal leaders questioned the decision and the lack of prior consultation.Jonathan Windy Boy said the tribes should have been informed before major policy changes were made. “When there is a major policy that impacts tribes, tribes need to know about it in advance,” he said at the meeting. AP.Tyson Running Wolf said he had mixed opinions about the changes. While he supports expanding access, he said consultation with tribes is essential.
“I’m not saying I have the answer,” he said. “We never got there.”Running Wolf also said the original program was unlikely to face legal risks because federal law treats tribal citizenship as a political classification, not a racial classification.Officials from the Office of the Commissioner of Higher Education said communication with tribal governments continues.
Financial impact and implementation
The changes are expected to increase the number of eligible students.
A financial analysis of a similar proposal estimates that more than 1,300 additional students could qualify, increasing costs in future years.The institutions will not receive additional state funding and will need to manage any increased costs within existing budgets, the Office of the Higher Education Commissioner said.Officials also advised financial aid offices to accept a wide range of documents to verify the status of offspring.
Students who have already received a waiver will continue to receive support until they complete their current degrees.
Access to education may improve
Some education officials say the revised standards could make it easier for students to qualify.Documentation requirements were a challenge under previous rules, James Brushett said. “Ideally, this creates a slightly easier path for students,” he said. AP.Miranda Borland said the change could reduce financial pressure on students. “I think when students know there are more opportunities for funding, it’s like you see a little bit of relief,” she said. AP.
