McCabe warns payroll errors, unpaid invoices threaten $347.544 million before ARPA deadline

Navajo Nation Controller Sean McCabe told delegates at the 25th Navajo Nation Council’s Winter Session that roughly $347.544 million in American Rescue Plan Act funds remained unspent as of Dec. 31, 2025, and that payroll errors and unpaid vendor invoices were adding pressure ahead of the Jan. 31, 2026 federal spending deadline. The controller’s presentation, officials said, flagged a tight timeline and outlined a reallocation plan, though the reporting available did not include the plan’s detailed contents.

The size of the unspent balance and the looming deadline have immediate implications for Apache County residents who rely on timely contracts, public health programs and local infrastructure projects. Local contractors and service providers face uncertainty if invoices are not cleared, and payroll problems can ripple into chapter offices and other reservation employers that operate on narrow cash flow margins.

Operational specifics remain limited in the supplied reporting. The controller’s statement identified payroll errors and unpaid vendor invoices as pressure points but did not quantify the number of payroll mistakes or the total value of overdue invoices. Headlines and social posts commonly rounded the figure to $347 million, but the controller’s snapshot was the more precise $347.544 million as of Dec. 31, 2025.

Separate reporting cited contract accounting staff who described internal actions that staffers said complicated financial controls. One staffer said, “Alva tried to have me and Debbie wire funds for WIC although the grant ended with Veronica J. Clark and Sherylene Yazzie with NDOH (Navajo Department of Health),” adding that after staff requested a personnel form to confirm authority, “she didn’t return to my office for anything.” The same reporting noted that “Tom on Oct. 8 also authorized changes to who was allowed to pick up the individual’s payroll and reimbursement checks.” Those staff accounts underscore broader concerns about delegation of authority and safeguards around payments.

For now, the immediate questions are practical and narrow: how the $347.544 million breaks down by program or obligation status, which invoices remain unpaid and how many employees were affected by payroll errors. The controller’s warning and the earlier staff allegations point to an urgent need for a transparent accounting so Council delegates, chapter officials and vendors can plan next steps.

What comes next is clarity from the Controller’s office and action by Council leadership. Residents of Apache County should expect requests for the full controller report, detailed listings of unpaid invoices and payroll corrections, and a timetable for reallocation or obligation of funds so planned projects and services can proceed.