25th Navajo Nation Council Deliberates Office of the Controller Report

The 25th Navajo Nation Council received a report from Controller Sean McCabe outlining delays in the Navajo Nation’s financial modernization efforts, time-sensitive American Rescue Plan Act (ARPA) spending, payment backlogs, and emerging budget concerns. McCabe presented the findings in Window Rock, and the Council voted 17 in favor and none opposed to accept the Controller’s report, pledging continued oversight as follow-up actions are developed in the coming weeks.

McCabe told the Council his office is investigating an $8.3 million capital outlay overspend and negative account balances, which may be tied to prior-year encumbrance issues, and will provide a detailed explanation while working with the Tax Commission to address an approximately $11 million drop in December revenues. Those immediate investigations sit alongside a larger warning about ARPA funds: since receiving $2 billion in ARPA funds in 2021, the Navajo Nation has spent about 83% of the allocation. As of Dec. 31, 2025, roughly $347 million remained unspent, and McCabe warned that without accelerated action as much as $100 million could be at risk due to the federal expenditure deadline of Dec. 31, 2026, and compliance timelines for certain long-term contracts.

Local contractors, service providers, and Chapter projects in McKinley County are likely to feel direct effects from the payment backlog and any tightening of expenditures. Controller McCabe’s briefing singled out vendor payments and completed projects as areas of immediate concern, meaning delayed invoices and slowed project closeouts could impact businesses and municipal services across Gallup and neighboring chapters. Early ARPA distributions went to hardship assistance, the Revenue Reserve Reallocation Fund, and the Navajo Tribal Utility Authority; spending on housing, broadband, and administrative projects has moved more slowly than needed, according to the report.

The Office of the Controller framed its role in statutory terms that give it authority over expenditure monitoring and budget controls. “The Controller, with the approval of the Navajo Nation Council, may restrict expenditures by selected expense codes or line items in the event that actual revenues fall significantly behind the projected revenues.” The office also states its mission and vision plainly: “Diné Bibéeso baa áháyą́ (Commitment to the Navajo Nation’s Fiscal Responsibilities).” “The Office of the Controller’s mission is to provide quality service to its customers with integrity and accountability through compliance and transparency.”

Operational notes in the Controller materials underscore ongoing modernization efforts: the Accounts Payable section is transitioning to automated Travel Authorization Forms and FMIS/HRIS systems are in use. Office contact information for constituents and vendors is available: Office of the Controller, The Navajo Nation, PO Box 3150, Window Rock, AZ 86515; phone (928) 871-6308; office location Administration Building 1, 2559 Tribal Hill Dr, Window Rock, AZ. To report fraud, waste, or abuse use the hotline at 1-844-747-2767 or email fraudline@nnooc.org. Media inquiries can be directed to the Office of the Speaker at nnlb.communications@gmail.com.

For McKinley County residents the stakes are tangible: ARPA can fund housing, broadband, and utility projects that affect daily life, but delays and accounting irregularities risk federal noncompliance and lost dollars. Expect the Council and Controller’s Office to produce follow-up documents and timelines in the coming weeks detailing the $8.3 million inquiry, the December revenue shortfall, and a plan to accelerate compliant ARPA spending.