The Bureau of Indian Affairs on July 30 passed its third — and heftiest — fee increase for the Flathead Indian Irrigation Project since 2023.  

An annual operation and maintenance fee paid to the irrigation project will go up to $46 an acre in January 2027 — double the last increase. In 2024, fees rose to $39 an acre, up $3.50 from the year prior. In 2023, the rate was $35.50, an increase of $2 over the previous year.  

Landowners on the irrigation project pay the fee in exchange for water and irrigation system maintenance. 

The Bureau of Indian Affairs has sought to increase annual fees since it reassumed control of the irrigation project in 2013, said spokesperson Joshua Barnett. The new rate is intended to help cover increased water pumping costs, rising inflation and construction costs, replenish the irrigation project’s depleted reserve account and help rebuild staffing levels. 

A minimum charge for parcels less than 5 acres has also seen staggered increases over the last few years. It went up from $75 per tract in 2025 to $200 per tract in 2026 on plots 4.54 acres or smaller. Next year, the minimum charge will go up to $220 per tract on plots 4.78 acres or smaller. 

At the behest of the Bureau of Indian Affairs, the Flathead Irrigation District Board of Commissioners voted to adopt the new rate during a special meeting on Thursday. The new rate will be reflected in tax bills in November, according to Commissioner Bruce White. The district is a collective of the Flathead Indian Irrigation Project’s Camas, Jocko and Mission divisions. 

Commissioners said failure to implement the new fee could jeopardize water delivery to farmers. They agreed to send a letter to the Bureau of Indian Affairs to clarify that the new rate was adopted out of necessity. 

“We have a gun to our head,” said board Chair Paul Guenzler.  

The board also voted to delay adding an administrative fee on top of the annual operations and maintenance fee set by the federal government. There’s about $400,000 in the district’s administrative account that is used to cover mileage for commissioners, attorney fees, accounting fees, audits, insurance and property taxes. 

Attorney Cassie Dellwo, legal counsel for the Flathead Irrigation District, warned the move could lead to future headaches.  

“If you're going to go zero again, you need to start preparing for small incrementals,” she said, “so that you’re not hitting your irrigators five years down the road.” 

Irrigation project farmers in Hot Springs are pinching pennies as their crop harvests decline due to low water quotas. Low snowpack in the Little Bitterroot Basin has restricted water availability over the last three irrigation seasons. Many commissioners said the higher fee will hit these farmers especially hard.  

“If we keep going down this road, it’s gonna push these guys out,” said commission Vice Chair Dave Lake. “Or they’ll just refuse to pay it.” 

The Bureau of Indian Affairs acknowledged further water shortages may occur due to worsening climate conditions. 

“However, inadequate water supply due to natural conditions or climate is not justification for the [Bureau of Indian Affairs] to delay an assessment increase,” the federal agency argued in a comment posted on the Federal Register, the daily journal of the U.S. government.  

THE BUREAU of Indian Affairs said it received seven comments on the proposed irrigation rate from the Flathead Indian Irrigation Project during its 60-day public comment period. Critics argued the fee should be postponed due to neglected maintenance of irrigation systems, staffing shortages and inadequate water delivery across the project. 

Overall, the bureau maintained that current annual rates “have not kept up with costs, resulting in a growing backlog of deferred maintenance.” 

The federal agency added that the number of smaller tracts has increased by 60%, with many of the plots less than 4.78 acres in size. More tracts increase staff time on operation and administration, and the new $220 minimum charge will cover the associated costs.  

Funding in the Flathead Indian Irrigation Project’s 2027 fiscal budget accounts for 40 employees and eight open positions, including a project manager, civil engineering technician, supervisory civil engineer, GIS specialist, hydrologist/fish biologist, irrigation system operator, utility systems operator and a maintenance worker, according to the Bureau of Indian Affairs.  

The agency said it is actively hiring to fill a few priority positions at the irrigation project, which has a current staff of 26 full-time employees and 14 emergency hires from the Confederated Salish and Kootenai Tribe as of June. Additional positions may be approved for hire by the end of the year. 

Report for America Reporter Hannah Shields can be reached at 406-758-4439 or [email protected]. If you value local journalism, pledge your support at dailyinterlake.com/support.