Self-Governance is premised on the government-to-government relationship that exists between American Indian and Alaska Native Tribes and the United States as sovereign nations. Indian Tribes have always been recognized as independent sovereign nations with authority to conduct their affairs in their territories under their inherent powers.

The drafters of the U.S. Constitution recognized the independent sovereignty of Indian Tribes Article II, Section 2, Clause 3, provided exclusive Treaties between Indian Tribes and the United States. Treaties between Indian Tribes and the United States were a primary means of dealing with a broad spectrum of rights, obligations and responsibilities that were to be recognized, protected and respected by the United States and the signatory Tribes. Included in these rights, but not limited to, were numerous services and benefits which were to be provided by the United States to the Tribes and their members in exchange for the tribal cession of millions of acres of lands and resources to the United States. Today, services and benefits are the continuing obligation owed by the United States to Tribes.

It is well recognized that the United States’ responsibilities and obligations to Tribes are binding on every department and agency of the Federal Government. Over time, the United States created specific agencies to administer and oversee the delivery of these responsibilities and obligations, such as the Bureau of Indian Affairs (BIA) in the Department of the Interior (DOI) and the Indian Health Service (IHS) within the Department of Health and Human Services (DHHS). The BIA and IHS, as well as other Federal agencies and departments, have created governmental structures to manage their own affairs as well as the delivery of services to Indian Tribes.

In many program areas, Indian Tribes have developed internal structures and gained expertise that exceed the abilities and expertise of the United States when carrying out the Federal responsibilities and obligations to Indian Tribes. In recent decades, Tribes have become aggressive in asserting their authorities and expertise regarding how the federal services and obligations are prioritized, funded and delivered by the United States as well as how those services, programs, functions, activities and resources are managed by the United States.

Self-Governance legislation mandates Federal departments and agencies to transfer federally administered programs, services, functions, and activities, or portions thereof, to Self-Governance Tribes. Self-Governance has resulted in establishing a "new partnership" between Tribal governments and the Federal Government, a process similar to used to negotiate agreements, including treaties, between Indian Tribes and the United States.

To implement Self-Governance, both the Federal Government and Tribes have developed internal Self-Governance structures. Self-Governance has both revitalized this historic relationship between Tribes and the United States as well as providing new responsibilities to each party.

Both the Federal agencies and Tribal Governments have had to review their historic roles in the government-to-government relationship and, in many areas, each developed plans to restructure, reorganize, or develop new internal procedures and/or governmental structure in order to implement Self-Governance.

It should be noted that Indian Tribes do not need Self-Governance in law simply to administer existing federal programs; pre-existing law allows Tribes to assume and operate federally-designed programs, services, functions, and activities. Self-Governance is designed to provide Tribes with the flexibility to re-design and re-prioritize federal programs and to reallocate federally-appropriated funds to programs that best meet Tribal priorities. In areas where Federal concerns must be considered along with Tribal priorities, such as non-BIA Interior programs, mutually acceptable specific agreements will need to be developed, between the Self-Governance Tribe and United States.

In implementing the Tribal Self-Governance legislation, both Indian Tribes and the United States are responsible for executing their respective parts of negotiated agreements. The effectiveness of carrying out these programs, services, functions and activities, or portions thereof, is dependent on the structures that are developed and maintained to fulfill these responsibilities.

Federal Self-Governance Structure

Prior to Fiscal Year 1996, Self-Governance had only been directly applied to the BIA and IHS. Beginning in FY 1996, P.L. 103-413, Title II, provides for participation of all non-BIA Department of the Interior programs participate in Self-Governance and the establishment of programmatic targets to transfer programs to Indian Tribes.

To implement the demonstration phase of Self-Governance within the Department of the Interior, the Secretary of the Interior has established an Office of Self-Governance (OSG) within the Office of the Secretary. For convenience purposes, however, the OSG has functioned under the authority of the Assistant Secretary of Indian Affairs. Only BIA funds (and other program funds that passed through the BIA) had been included in Self-Governance negotiated agreements.

The OSG has functioned primarily as a coordinator for annual negotiations of Compact and Annual Funding Agreements, an allottee of funds for negotiated Annual Funding agreements, and as a facilitator for policy development between the Department and Self-Governance Tribes. The OSG consists of a Central Office in Washington, DC and a Northwest Field Office in Vancouver, Washington. It is anticipated that the OSG will serve as the primary contact and coordinator between Self-Governance Tribes and non-BIA Interior Department programs for implementation of  P.L. 103-413, Title II, and will report to the Secretary.

Presently, Self-Governance in the Department of Health and Human Services is limited to the Indian Health Service. The IHS has developed an Office of Tribal Self-Governance (OTSG). The Office of Tribal Self-Governance reports directly to the IHS Director, and consists of one office located in the IHS Headquarters Office in Rockville, Maryland.

The primary functions of OTSG is to serve as a coordinator for annual negotiations of Compacts and Annual Funding Agreements, to process fund distributions for negotiated Annual Funding agreements, and facilitate policy development between the IHS Director and Self-Governance Tribes.

Actual Self-Governance implementation falls primarily on the Tribes. As a Tribally-driven initiative, Tribal leaders must maintain their leadership role in areas involving legislative, executive, and judicial activities. Self-Governance implementation depends extensively on the ability of Tribal Governments to carry out their responsibilities and obligations in an effective and efficient manner.

Under typical P.L. 93-638 contracts, when Tribes encounter difficulties in carrying out contract functions, they can simply inform the BIA or IHS, who are obligated under statute and regulation to provide technical assistance to the contracting Tribe. Self-Governance Tribes, however, are expected to perform the responsibilities that they have compacted; this is not to say that Self-Governance Tribes cannot or should not request assistance from Federal agencies for areas of legitimate policy and administrative concerns which are important to carrying out the Tribe's compact responsibilities and obligations. Under Self-Governance, Tribes cannot turn difficult tasks and decisions over to Federal officials to decide on their behalf after that program has been transferred.

Governmental structures among Self-Governance Tribes vary greatly depending on the individual needs of each Tribe, their constitutions, and their leaders and members. From the beginning of Self-Governance, Tribal leaders have taken the lead in generating discussions and forcing policy decisions from both Tribal and Federal Governments. To assist in this leadership role and to implement Self-Governance, almost all participating Tribes have established their own Offices of Self-Governance. Tribal Governments have created positions of Self-Governance Coordinators who are responsible for monitoring Self-Governance activities for their Tribes. The Coordinator position is typically located in the executive offices of Tribal Governments so that timely information can be provided for policy, legal, and management decision-making.