The Haskell Indian Nations University Improvement Act seeks to establish Haskell Indian Nations University as a federally chartered educational institution, separating it from the management authority of the Bureau of Indian Education. This restructuring is intended to improve the university's ability to provide high-quality education to Indian students and affirm the federal government's treaty and trust responsibility to Native Americans. The bill acknowledges past struggles in fulfilling the university's mission, maintaining facilities, and managing funds under its previous structure.

A key provision of the bill is the establishment of an independent Board of Trustees to direct and control the University. This Board will consist of 15 voting members, appointed by the President with Senate consent and representing diverse fields and tribal regions, along with a nonvoting student body president. The Board is empowered to formulate university policy, manage its operations, and establish bylaws, ensuring greater autonomy and accountability.

The University's primary functions will be to provide tuition-free, scholarly study for Indians and offer degree and certificate programs. Critically, the bill grants the University the tax status of a charitable organization, allowing it to accept private donations, which was previously a challenge due to its sole reliance on federal funding. The Secretary of the Interior will provide grants and related assistance to the newly chartered institution.

Regarding staffing, the University will largely be exempt from federal civil service regulations, allowing the President of the University, appointed by the Board, to set compensation and duties for employees. The bill mandates policies and procedures for employment conditions, discharge, and grievance resolution, while also requiring mandatory contributions to employee health and retirement benefits at levels consistent with federal agencies. Current employees will transition without loss of compensation, and all employees will undergo background checks.

To bolster financial stability, the bill establishes an endowment program with an initial federal capital contribution of $5,000,000, requiring the University to match private fundraising efforts. An independent Endowment Board will oversee the management and investment of these funds, ensuring alignment with the University's financial goals and mission. This structure aims to provide a sustainable funding source beyond annual appropriations.

The legislation also addresses property and compliance, conveying all right, title, and interest of the legacy institution's property to the new University, with strict rules on its use and prohibition of sale. The University will be tax-exempt and subject to tort liability similar to a federal agency. It must comply with various federal laws, including the American Indian Religious Freedom Act, and federal criminal laws regarding funds and property will apply.

Finally, the bill allows the University to develop policies granting preference to members of Indian Tribes in admissions, employment, contracts, fellowships, and grants. It mandates annual reports to Congress and a biennial budget proposal, explicitly stating that Congress should not consider private fundraising when determining appropriations. A sense of Congress is expressed that the University should receive annual increases in appropriations to ensure a high-quality educational experience.