It looks like the Federation of Saskatchewan Indian Nations is getting its budget cut.

The federal government has announced a new funding formula for tribal groups across Canada.

According to an e-mail sent to MBC News from Aboriginal Affairs, the department is reducing core funding to national Aboriginal representative organizations by 10%.

In addition, Ottawa will reduce the amount of money sent to regional tribal councils by 10% — or have a ceiling up to $500,000 applied to their core funding.

The government says it is taking these steps to create the conditions for healthier, more self-sufficient Aboriginal communities.

The FSIN plans to respond to the situation Thursday morning.