The 1877 Agreement, also known as the Act of February 28, 1877 (19 stat. 254), was the most controversial contract on Black Hills land claims. The contract officially took the land of Sioux and permanently established Indian reserves. Section 1 of the Act amends the reserve limits set by the Fort Laramie Treaty of 1868, while Section 2 allows the U.S. government to create routes for settlers to travel when crossing the territory.  In addition, section 7 stipulates that only thoroughbred Indians on the reserve are admitted to the agreements and benefit from this law as well as previous treaties.  Controversies surrounding this law state that the government purchased the land upon booking, but there is no valid record of this transaction.  The Great Sioux War of 1876-1877 stands in stark contrast to the Red Cloud War, which took place ten years earlier. During the 1860s, Lakota leaders received broad support from their groups for the fighting.
By 1876/77, by 1876/77, nearly two-thirds of lakota had moved to Indian agencies to accept rations and earn a living. Such groups did not support or participate in the fighting. [Citation required] Meanwhile, Congress was increasingly dissatisfied with the failure of the Sioux who lived on the reserve to become self-sufficient.11 The Sioux`s right to food rations under the Fort Laramie Treaty had expired in 1872. Yet in each of the next two years, more than $1 million was acquired to feed the Sioux. In August 1876, Congress passed a draft budget that stated that “no funding would be allocated to the livelihoods” of the Sioux unless they had first surrendered their rights to the hunting grounds off reserve, ceded the Black Hills to the United States, and reached an agreement with the government, which should be calculated to enable them to support themselves. Act of August 15, 1876, 19 Stat. 176, 192.12 To that end, Congress asked the President to appoint another commission to negotiate with the Sioux for the surrender of the Black Hills.