FEDERAL COURT DISMISSES MORRISON COUNTY LAWSUIT OVER MILLE LACS BAND TRUST LAND

By Vivian LaMoore, Inaajimowin Editor

A legal challenge that has been years in the making — and closely watched by local governments and the Mille Lacs Band of Ojibwe - reached a major milestone on November 26, 2025, when a federal judge dismissed Morrison County's lawsuit opposing the placement of more than 3,200 acres of land into federal trust for the Band.

In a 26-page ruling, U.S. District Judge Nancy Brasel sided with the U.S. Department of the Interior and the Bureau of Indian Affairs (BIA) clearing the way for the federal government to move forward with placing the land in Richardson and Leigh Townships into trust. The lawsuit had been filed earlier this year by Morrison County, along with the two townships.

For the Mille Lacs Band, this land holds sacred and irreplaceable value. This parcel is uniquely rich in cultural and ecological significance. "We're glad to see this culturally important parcel finally move into trust status after nearly a decade of review," Mille Lacs Band Commissioner of Natural Resources Kelly Applegate said. "To our people, this is sacred land, rich with gifts from the Creator - wildlife, medicinal plants, forestry products, and wetlands. It will be a place where nature and wild habitats can thrive for generations to come."

The case stems from a fee-to-trust application submitted by the Mille Lacs Band on Dec. 15, 2015. The BIA approved that request in March 2017, allowing approximately 3,238 acres of land along Morrison County's eastern edge - bordering Mille Lacs County — to be placed into trust. Morrison County and the townships appealed the decision, but the Interior Board of Indian Appeals upheld the BlA's approval in September 2023.

In January 2024, the county and townships took the dispute to federal court, arguing that the land had been placed into trust unlawfully and unconstitutionally. They claimed the decision reduced local property tax revenue and that federal agencies failed to fully evaluate the financial, jurisdictional and cumulative impacts on local governments. The lawsuit sought to block the trust acquisition.

The county and townships also alleged bias in the approval process, arguing that the BIA improperly processed the Band's application while the Band provided funding for additional BIA staff. They further challenged whether the Mille Lacs Band met federal jurisdiction requirements dating back to 1934 and questioned the constitutionality of the Indian Reorganization Act of 1934 — the federal law that governs trust land decisions.

Judge Brasel rejected those arguments. In her ruling, she found no evidence that the BIA's Midwest Regional Director — the official who approved the transfer — was influenced by the Band or stood to gain personally from the decision. While the Band does provide funding for additional BIA staff through a Memorandum of Understanding, the judge noted that the agreement did not involve the regional director and did not compromise the fairness of the review process.

A central issue in the case was whether the land is considered "contiguous" to the Mille Lacs Reservation. One corner of the 24-tax-parcel block touches the historic reservation boundary. Morrison County argued that touching at a single point should not qualify as contiguous and should have triggered a different level of federal review.

The court sided with the BlAs long-standing interpretation, which defines contiguous land as parcels that share a boundary, including those that touch at a single point. Because the parcels form one connected block that meets the reservation boundary at that corner, Judge Brasel concluded the correct regulatory process was followed.

The ruling also upheld the BlAs analysis of environmental impacts, law enforcement jurisdiction, and the Band's stated plans to use the land for cultural and subsistence activities such as hunting and gathering. On the issue of tax revenue, the judge noted that the county and townships did not provide specific financial data beyond general concerns about lost taxes.

Judge Brasel also dismissed the lawsuit's challenge to the constitutionality of the Indian Reorganization Act, citing decades of court decisions affirming Congress' broad authority in Indian affairs.

With the lawsuit dismissed, the Department of the Interior may now proceed with finalizing the trust status of the land. Land held in trust is exempt from local property taxes and falls under federal jurisdiction for certain matters. The Mille Lacs Band has said the acreage will continue to be used for cultural and subsistence purposes.

Morrison County and the townships may still choose to appeal the decision. The appeal deadline is 60 days from November 26, 2025, (January 25, 2026) because the U.S. is a party.

With the court's decision now final, the Band can move forward with using the land for cultural, subsistence, and conservation purposes, ensuring it remains a place of significance for generations to come.

Why this matters

• Federal trust status: Land held in trust is exempt from local property taxes and under federal jurisdiction for certain matters, but it also means tribal nations can use land for cultural, subsistence and other purposes without local taxation.

• Property tax impact: Placing land into federal trust removes it from local tax rolls. In this case, estimates in court filings showed Leigh Township would lose about $3,200 a year — roughly 8% of its total property tax revenue — while Morrison County and Richardson Township each faced less than a 0.1% loss of their tax base. The Mille Lacs Band offered to assist the townships with temporary payments to offset the tax impact, which the townships refused.