Key Takeaways
- •Federal economic development programs often fail tribes due to fragmentation, administrative burdens, and agencies' lack of understanding, hindering tribal self-determination and investment.
- •Chairwoman Hope Silvas testified that small tribes struggle to access federal programs due to unsuitable design and lack of awareness, advocating for legislative action like the Shivwits Band Act.
- •Rep. Hageman (R) and Chairwoman Silvas discussed H.R. 5910, a bill allowing 99-year tribal land leases, which Silvas affirmed would significantly enhance tribal control over economic decisions.
- •Democrats, including Rep. Leger Fernandez, criticized the Trump administration for attacking the 8(a) program and rescinding executive orders, arguing these actions undermine tribal economic progress.
- •The subcommittee will use this testimony to guide future oversight and potential legislative changes, aiming to improve federal support and align policy with tribal self-determination.
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Hearing Analysis
Overview
On February 3, 2026, the House Natural Resources Subcommittee on Indian and Insular Affairs held an oversight hearing titled "Making Federal Economic Development Programs Work in Indian Country." Chaired by Rep. Jeff Hurd (R-CO-3), the hearing examined the effectiveness of the fragmented federal system governing tribal economic development. The subcommittee sought to determine why, despite a massive federal footprint across multiple agencies, tribal nations continue to face persistent barriers to accessing capital, launching enterprises, and executing infrastructure projects.
Industry Impact
Chairman Hurd opened the session by highlighting the procedural bottlenecks created by duplicative applications and inconsistent standards that disproportionately affect smaller, rural tribes. Ranking Member Teresa Leger Fernandez (D-NM-3) emphasized that economic sovereignty is the bedrock of tribal sovereignty. She expressed concern over recent administrative shifts, specifically criticizing the Trump administration’s perceived attacks on the Small Business Administration’s (SBA) 8(a) program under the guise of opposing Diversity, Equity, and Inclusion (DEI) initiatives, as well as the rescission of renewable energy support for tribes.
Key Testimony
The witness testimony provided a multifaceted view of the challenges on the ground. The Honorable Hope Silvas, Acting Chairwoman of the Shivwits Band of Paiutes, testified on the specific struggles of small tribes. She noted that many federal programs are designed for large-scale projects, leaving smaller tribes with limited administrative capacity unable to compete. Silvas highlighted a lack of basic communication from agencies, noting that her tribe often learns of grant opportunities only after deadlines have passed. She specifically advocated for the Shivwits Band of Paiutes Jurisdictional Clarity Act to remove hurdles to land leasing and development.
The Honorable Rodney Butler, Chairman of the Native American Finance Officers Association (NAFOA), addressed the systemic lack of data regarding federal assistance to tribes. Citing Government Accountability Office (GAO) reports, Butler noted that the total federal assistance provided to tribal entities remains unknown because agencies do not track tribal-specific obligations. He urged Congress to pass the Tribal Tax and Investment Reform Act (H.R. 8318), which would grant tribal governments parity with state and local governments regarding tax-exempt bond financing and excise taxes.
Overview
Mr. Derrick Watchman, Chairman of the National Center for American Indian Enterprise Development (NCAIED), focused on administrative inertia. He pointed out that the Office of Native American Business Development, though codified in 2000, remains dormant without a director. Watchman called for the reauthorization of the Native American Tourism and Improving Visitor Experience (NATIVE) Act and the Indian Incubator Program. He also stressed the importance of the Buy Indian Act and the Indian Loan Guarantee Program, noting that a lack of banking expertise within the Department of the Interior (DOI) often stalls project approvals.
Industry Impact
Mr. Haven Harris, Co-Chair of the Native American Contractors Association (NACA), provided a defense of the SBA 8(a) program. He explained that Native-owned 8(a) firms are community-owned enterprises that reinvest profits into essential services like healthcare and education. Harris argued that the program is a market-based alternative to federal aid and is essential for the economic survival of remote Alaska Native Corporations (ANCs), where the cost of living is exceptionally high.
Overview
The hearing featured sharp partisan exchanges, primarily led by Rep. Jared Huffman (D-CA). Huffman accused the Trump administration of treating tribal nations with "contempt" and "political vengeance," citing the rescission of the Access to Capital Clearinghouse and the use of federal agents to profile tribal citizens. In response, Rep. Harriet Hageman (R-WY) defended the administration’s focus on border security and its impact on tribal safety, while also promoting H.R. 5910, a bill to allow tribes to lease land for up to 99 years to encourage long-term investment.
Organizations & Entities
Notable exchanges occurred regarding the Department of Energy’s (DOE) Tribal Energy Loan Guarantee Program. Both Chairman Butler and Mr. Watchman noted that while the program is well-intentioned, it has been plagued by a lack of urgency and technical expertise within the agency. They argued that the transition to direct loans, rather than just guarantees, is a step in the right direction but remains hindered by bureaucratic "red tape" and the lengthy 25 CFR approval process.
Overview
The subcommittee discussed several specific policy proposals and legislative fixes, including the reintroduction of the Tribal Tax and Investment Reform Act, the reauthorization of the Office of Native American Affairs within the SBA (a bill sponsored by Rep. Sharice Davids), and the "Carcieri fix" to address land-into-trust issues. Industry impacts were identified across the government contracting, renewable energy, finance, and tourism sectors. Organizations frequently mentioned included the Bureau of Indian Affairs (BIA), the Department of the Treasury’s Office of Tribal and Native Affairs (OTNA), and the Treasury Tribal Advisory Committee (TTAC), the latter of which was praised as a model for meaningful tribal consultation.
Chairman Hurd concluded the hearing by setting a deadline of February 6, 2026, for members to submit additional questions for the record. The hearing highlighted a bipartisan consensus on the need for tribal self-determination and regulatory streamlining, even as members remained deeply divided over the current administration's broader policy shifts and their impact on Indian Country.
Transcript
[Gavel sounds.] Good afternoon, everyone. The Subcommittee on Indian and Insular Affairs will come to order. Without objection, the chair is authorized to declare recess of the subcommittee at any time. The subcommittee is meeting today to hear testimony for an oversight hearing entitled, "Making Federal Economic Development Programs Work in Indian Country." Under Committee Rule 4(f), any oral opening statements at hearings are limited to the chairman and the ranking minority member. I therefore ask unanimous consent that all other members' opening statements be made part of the hearing record if they are submitted in accordance with Committee Rule 3(o). Without objection, so ordered. I ask unanimous consent that the gentlewoman from Wyoming, Ms. Hageman, the gentleman from Alaska, Mr. Begich, the gentlewoman from Utah, Ms. Maloy, and the gentleman from Montana, Mr. Downing, be allowed to sit and participate in today's hearing. Without objection, so ordered. I will now recognize myself for an opening statement. Good afternoon again, everyone. Today, the subcommittee meets to examine whether federal economic development programs are actually working as Congress intended in Indian country. I want to thank each of our witnesses for being here today and for taking the time to share their expertise with the committee. The federal government administers a wide range of economic development authorities. These programs span multiple departments across multiple agencies and operate under different statutes and regulations, and they reflect decades of well-intentioned congressional activity. Taken together, they represent a substantial federal footprint. Yet despite this breadth of activity, tribes and tribally affiliated businesses continue to report persistent barriers to accessing capital, launching enterprises, and executing development projects on tribal lands. The problem is not a lack of federal involvement; rather, it is the way that involvement is structured and administered. Tribes must navigate a fragmented federal system, one that requires duplicative applications, inconsistent standards, overlapping reviews, and prolonged approval timelines. Programs that may be defensible in isolation often become burdensome in practice, particularly for smaller and more rural tribes. The result is a system that is difficult to use, slow to engage, and misaligned with how economic development actually occurs on the ground. Tribal governments are asking for clarity and for the ability to exercise their own judgment over economic decisions affecting their communities. In other words, they are asking for federal policy to better support tribal self-determination. Today's witnesses are well-positioned to help the subcommittee understand how the system operates in practice. Chairwoman Hope Silvas of the Shivwits Band of Paiutes brings the perspective of a tribal leader working directly to advance economic opportunities for her community. Her testimony will help ground this discussion in the practical realities that tribes face when federal processes delay or constrain development, even when projects are modest in scale and clearly aligned with local priorities. Chairman Rodney Butler, appearing on behalf of the Native American Finance Officers Association, represents tribal finance officials who work daily with federal programs, lenders, and investors. NAFOA's experience highlights how regulatory uncertainty, delayed guidance, and fragmented oversight can undermine financing and stall projects that are otherwise viable projects. We will also hear from Mr. Haven Harris of the Native American Contractors Association and Mr. Watchman of the National Center for American Indian Enterprise Development. These organizations work closely with Native entrepreneurs and contractors seeking to participate in federal contracting, lending, and in business development programs. Federal contracting is an economic powerhouse for tribes, and protecting program integrity is essential to making these programs work as intended. This hearing asks a straightforward oversight question: Are existing authorities actually advancing economic activity, or are they unintentionally creating procedural bottlenecks that slow progress and discourage investment? The committee has a responsibility to ensure that federal Indian policy supports rather than constrains tribal decision-making. The testimony today will inform this subcommittee's oversight of whether agencies are executing the law as written and where changes may be needed to make these programs work as intended. I appreciate our witnesses' willingness to engage in that discussion today. Your perspective will help inform this committee's work and guide future conversations about economic development that gives Indian country the opportunity to flourish. With that, I yield back. And at this time, the chair now recognizes the ranking minority member for any statement.
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