Federal Economic Development Resources for Tribal Nations: A Survey

September 1, 2021 R46891

Federal Economic Development Resources for
September 1, 2021
Tribal Nations: A Survey
Michael H. Cecire
American Indian tribes and Alaska Native communities have a unique relationship to the U.S.
Analyst in
federal government, and face distinctive socioeconomic challenges as a function of their history,
Intergovernmental
as well as other contextual circumstances. Native American communities have historically had
Relations and Economic
among the highest and most concentrated poverty rates in the country. This is due in part to
Development Policy
public and private underinvestment rooted in a combination of historical neglect, geography, and

shifting federal policy towards tribal nations. To address the needs of federally recognized tribes
(including Alaska Native communities), multiple federal agencies provide a number of

community and economic development resources to support the development of basic
infrastructure, telecommunications, workforce development and training, business development, community facilities, and
the like.
This report provides a survey of federal community and economic development resources for federally recognized tribal
nations. In particular, the report focuses on six federal agencies: the Department of Agriculture (USDA); the Bureau of Indian
Affairs (BIA), in the Department of the Interior; the Economic Development Administration (EDA), in the Department of
Commerce; the Department of Health and Human Services (HHS); the Department of Housing and Urban Development
(HUD); and the Employment and Training Administration (ETA), in the Dep artment of Labor. This report also provides
information about two other categories of agencies: (1) business development agencies, such as the Small Business
Administration and the Minority Business Development Agency; and (2) the federal regional commissions and authorities.
The report concludes with a brief discussion of policy considerations in service of potential congressional deliberations.
This report provides Congress with a framework by which to evaluate and assess federal economic development tools for
tribes, and a basis for considering future policies in this area. These resources, which are meant to be illustrative and not
exhaustive, may be useful for Congress and congressional tribal constituencies to navigate the federal economic development
landscape and compare agencies’ economic development posture for tribes .
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Federal Economic Development Resources for Tribal Nations: A Survey

Introduction
American Indian tribes and Alaska Native communities have unique economic development
needs stemming from distinctive contexts, including a legacy of discrimination and economic
neglect, geographic remoteness, the unique and evolving relationship between Native Americans
and the U.S. government, and historic concentrations of poverty and distress.1 In response to
these special circumstances, the federal government has made certain community and economic
development programs available to federal y recognized tribes. Some of these programs are
specifical y oriented to tribal organizations, while many others are open to tribal applicants.
What Is a Federally Recognized Tribe?
The Department of the Interior’s Bureau of Indian Affairs (BIA) administratively adju dicates federal recognition of
American Indian and Alaska Native tribes.2 According to the BIA, a federal y recognized tribe is an American
Indian or Alaska Native tribal entity that the federal government recognizes as “having a government-to-
government relationship with the United States, with the responsibilities, powers, limitations, and obligations
attached to that designation, and is eligible for funding and services” from the BIA, and a number of other federal
agencies.3
The BIA notes “federal y recognized tribes are recognized as possessing certain inherent rights of self-government
(i.e., tribal sovereignty) and are entitled to receive certain federal benefits, services, and protections because of
their special relationship with the United States.” As of August 2021, the federal government recognizes 574
American Indian and Alaska Native tribes and vil ages, which are specified in the Federal Register.4
For the purposes of this report, the terms “tribes,” “tribal nations,” “Native American communities,” and
“American Indian tribes and Alaska Native communities” are used interchangeably in keeping with federal agency
conventions on nomenclature, and refer to American Indian and Alaska Native entities with federal recognition as
published by the BIA. The report also includes references to tribal “organizations” and “entities” as to be inclusive
of other entities that may be subsidiaries or extensions of federal y recognized tribal governments, and may be
potential y eligible for certain forms of federal assistance. In addition, statutory or regulatory language may also
define what constitutes an Indian tribe for its purpose, which should also be taken into account.
Native Hawai ans, though they also face unique socioeconomic circumstances, may be mentioned from time to
time in this report, but wil not be discussed in detail because they do not fal within the official definition of a
federal y recognized tribe. However, Alaska Native Corporations are general y included in this report’s definition
of a federal y recognized tribe; though as for-profit companies, their eligibility for certain programs is more
limited.5
This report is intended to provide a general survey of economic development resources available
to tribal entities. This report lists a variety of such programs from across the federal government,
with particular emphasis on programs that either primarily focus on, or may be particularly useful
for, providing community and economic development assistance to federal y recognized tribes.

1 For the purposes of this report, federal community and economic development resources primarily include programs
that provide grants, loans, technical assistance, or other such assistance to federally recognized tribes and their eligible
subsidiary organizations.
2 Although most federal recognition is adjudicated administratively by the BIA, federal recognition can also be
conferred legislatively. For example, the Thom asina E. Jordan Indian Tribes of Virginia Federal Recognition Act of
2017 (P.L. 115-121) provided federal recognition to six American Indian tribes in the Commonwealth of Virginia.
3 BIA, Frequently Asked Questions, accessed August 14, 2021, https://www.bia.gov/frequently-asked-questions.
4 Bureau of Indian Affairs (BIA), “Indian Entities Recognized by and Eligible to Receive Services from the United
States Bureau of Indian Affairs,” 86 Federal Register 7554-7558, January 29, 2021, https://www.federalregister.gov/
documents/2021/01/29/2021-01606/indian-entities-recognized-by-and-eligible-to-receive-services-from-the-united-
states-bureau-of.
5 For more information on the status of Alaska Native Corporations, see CRS Legal Sidebar LSB10626, Supreme Court
Holds Alaska Native Corporations Are “Indian Tribes” Entitled to CARES Act Funds, by M. Maureen Murphy.
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Federal Economic Development Resources for Tribal Nations: A Survey

Some programs may also be available to tribal governments and communities, nonprofit
organizations, and certain for-profit businesses (such as Alaska Native Corporations).
Under this framework, six agencies in particular were identified:
 The Department of Agriculture’s (USDA) Rural Development agencies (USDA
RD);
 The Bureau of Indian Affairs (BIA), in the Department of the Interior;
 The Economic Development Administration (EDA), in the Department of
Commerce;
 The Department of Health and Human Services (HHS);
 The Department of Housing and Urban Development (HUD); and
 The Employment and Training Administration (ETA), in the Department of
Labor.
In addition, this report provides information about assistance available through two other
categories of agencies: business development agencies (such as the Smal Business
Administration and the Minority Business Development Agency), and the federal regional
commissions and authorities. The federal regional commissions and authorities represent seven
federal y chartered independent agencies with economic development missions, of which four are
currently active.
This report lists and annotates (as necessary) key or il ustrative economic development programs
in each of the agencies described above. It is not intended to be an exhaustive accounting of every
federal economic development program with tribal eligibility. However, the report provides a
framework for targeted federal economic development resources for federal y recognized tribes.
The report closes with a discussion on issues related to tribal economic development policy,
which may inform future congressional policy deliberations.
Background
Native American communities in the United States, such as the American Indian and Alaskan
Native populations, have historical y had among the highest poverty rates in the nation,6 with
particular concentrations on Indian reservations or trust land—much of which is rural.7 Overal ,
Native Americans also reportedly have the lowest educational achievement rates of any national
racial and ethnic groups,8 and American Indians and Alaska Natives living in tribal areas
experience higher rates of physical y substandard or overcrowded housing than the population as

6 Northwestern University, What Drives Native American Poverty? Institute for Policy Research, February 24, 2020, at
https://www.ipr.northwestern.edu/news/2020/redbird-what -drives-native-american-poverty.html.
7 For more information on types of Indian lands, see CRS Report R46647, Tribal Land and Ownership Statuses:
Overview and Selected Issues for Congress, by T ana Fitzpatrick.
8 National Community Reinvestment Coalition, Racial Wealth Snapshot: American Indians/Native Americans,
November 18, 2019, at https://ncrc.org/racial-wealth-snapshot -american-indians-native-americans.
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Federal Economic Development Resources for Tribal Nations: A Survey

a whole.9 In addition, credit access and outreach present chal enges for mortgage lending in tribal
areas, as wel as the legal status of trust land.10
Prior to the Coronavirus Disease 2019 (COVID-19) pandemic, there were indications of
consistent material improvement in these communities since 1990. According to topline economic
indicators, real per capita income increased by approximately 86% between 1990 and 2015; the
family poverty rate fel by nearly 50%; and unemployment was reduced from 26% to 12%.11 This
period coincided with increased self-government and sovereignty following the enactment of the
Indian Self-Determination and Education Assistance Act of 1975 (ISDEAA; P.L. 93-638), which
authorized the Departments of the Interior (DOI) and Health and Human Services (HHS) to
contract with tribes and assume planning and administration of certain federal services and
programs with federal funding.12
Similarly, the Indian Gaming Regulatory Act of 1988 (P.L. 100-497) created a framework to
govern Indian gaming, which played a significant role in enabling economic activity in the
gaming and adjacent sectors, and boosted revenues to some tribal governments (and, in certain
cases, to tribal community members directly). In some areas, Indian gaming, tourism, and rural
industries drove increased economic growth and attainment in rural Indian communities, though
not uniformly. Research suggests income inequality increased for American Indians (as with the
United States as a whole) during this period.13
The Impact of COVID-19
According to tribal leadership and official reporting,14 the effects of the COVID-19 pandemic
have been particularly chal enging to Native American communities. Research suggests that
American Indians, for example, were four times more likely to contract COVID-19 compared to
the general U.S. population,15 potential y linked to limited water and other basic infrastructure.16

9 Nancy Pindus, G. T homas Kingsley, Jennifer Biess, et al., Housing Needs of American Indians and Alaska Natives in
Tribal Areas, prepared for U.S. Department of Housing and Urban Develo pment, January 2017, pp. xviii-xxii, at
https://www.huduser.gov/portal/sites/default/files/pdf/HNAIHousingNeeds.pdf.
10 David Listokin, Kenneth T emkin, Nancy P indus, et al., Mortgage Lending on Tribal Land, prepared for U.S.
Department of Housing and Urban Development, January 2017, at https://www.huduser.gov/portal/sites/default/files/
pdf/NAHSG-Lending.pdf.
11 Randall Akee, Sovereignty and Improved Economic Outcomes for American Indians: Building on the Gains Made
Since 1990, Washington Center for Equitable Growth, January 14, 2021, at https://equitablegrowth.org/sovereignty-
and-improved-economic-outcomes-for-american-indians-building-on-the-gains-made-since-1990/.
12 For more information on the ISDEAA, see CRS In Focus IF11877, Indian Self-Determination and Education
Assistance Act (ISDEAA) and the Bureau of Indian Affairs, by T ana Fitzpatrick.
13 Randall Akee, M.R. Jones, and S.R. Porter, “Race Matters: Income Shares, Income Inequality, and Income Mobility
for All US Races,” Demography, vol. 56, no. 3 (2019), pp. 999-1021.
14 See, for example, U.S. Congress, Senate Committee on Indian Affairs, A Call to Action: Native Communities’
Priorities in Focus for the 117th Congress, 117th Cong., 1st sess., February 24, 2021, https://www.indian.senate.gov/
sites/default/files/NCAI%20SCIA%20T estimony%20%282_22_21%29.pdf ; U.S. Commission on Civil Rights,
COVID-19 Im pacts on Native Am erican Com m unity, An Advisory Memorandum of the Arizona Advisory Committee
to the U.S. Commission on Civil Rights, April 2021, https://www.usccr.gov/files/2021/05-19-AZ-Memo-COVID-19-
Native-Americans.pdf; and CRS In Focus IF11795, COVID-19 Response: Broadband Funding for Tribes, Tribal
Colleges and Universities, the Bureau of Indian Affairs, the Bureau of Indian Education, and the Indian Health
Service, coordinated by Patricia Moloney Figliola.
15 Research was conducted during 2020, and prior to the emergence of the “delta” variant of novel coronavirus that
causes the COVID-19 disease.
16 Desi Rodriguez-Lonebear, Nicolás E. Barceló, Randall Akee, and Stephanie Russo Carroll, “American Indian
Reservations and COVID-19: Correlates of Early Infection Rates in the Pandemic,” Journal of Public Health
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Federal Economic Development Resources for Tribal Nations: A Survey

Other research showed disproportionate rates of infection and death among American Indians and
Alaska Natives.17 However, reports suggest that some tribal governments have also been
particularly successful in vaccinating their community members.18
In addition, federal y recognized tribes faced particularly tight fiscal conditions due to fal ing
revenues from pandemic-shuttered gaming and tourism operations.19 In response, the Coronavirus
Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136) provided approximately $8
bil ion in direct assistance to tribal governments,20 while the American Rescue Plan Act (ARPA;
P.L. 117-2) included over $31 bil ion in assistance to tribal governments. This assistance, made
through fiscal stabilization funding administered by the Department of the Treasury, does not
include other forms of supplemental funding for Native American economic development and
housing programs (e.g., the Indian Community Development Block Grant and the Indian Housing
Block Grant) also provided in those laws.21
Federal Interventions
Despite federal interventions to assist in community and economic recovery from the COVID-19
pandemic, tribal communities general y continue to lag the rest of the country and other rural
areas in economic attainment and the development of basic and digital infrastructure that may
facilitate improved economic outcomes.22 To address these inequities, the federal government
supports economic development in tribal nations through various rural development, community
development, and housing programs. Although the BIA is the lead agency for tribal affairs,
federal economic development resources are arrayed across multiple agencies—each with varying
requirements, eligibility criteria, and service types.

Managem ent and Practice, vol. 26, no. 4 (July/August 2020), pp. 371 -377.
17 See Centers for Disease Control and Prevention (CDC), Risk for COVID-19 Infection, Hospitalization, and Death by
Race/Ethnicity, March 21, 2021, at https://www.cdc.gov/coronavirus/2019-ncov/covid-data/investigations-discovery/
hospitalization-death-by-race-ethnicity.html; and J. Arrazola, M.M. Masiello, S. Joshi, et al., COVID-19 Mortality
Am ong Am erican Indian and Alaska Native Persons—14 States, January–June 2020, CDC, December 11, 2020, at
https://www.cdc.gov/mmwr/volumes/69/wr/mm6949a3.htm.
18 See Alex Brown, In Hard-Hit Indian Country, Tribes Rapidly Roll Out Vaccines, Pew, Stateline, February 9, 2021, at
https://www.pewtrusts.org/en/research-and-analysis/blogs/stateline/2021/02/09/in-hard-hit-indian-country-tribes-
rapidly-roll-out-vaccines; and Shawna Chen and Russell Contreras, “ Native American T ribes Lead the Way on
Coronavirus Vaccinations,” Axios, March 11, 2021, at https://www.axios.com/covid-vaccine-native-americans-internet-
access-6f1ebc15-987f-4c2a-bf1f-7dcffce7ce8f.html.
19 See Simon Romero and Jack Healy, “T ribal Nations Face Most Severe Crisis in Decades as the Coro navirus Closes
Casinos,” New York Times, May 11, 2020, at https://www.nytimes.com/2020/05/11/us/coronavirus-native-americans-
indian-country.html; and Center on Budget and Policy Priorities, Tribal Nations More Vulnerable to COVID-19
Im pacts, Need Additional Fiscal Aid, Policy Insight, August 5, 2020, at https://www.cbpp.org/blog/tribal-nations-more-
vulnerable-to-covid-19-impacts-need-additional-fiscal-aid.
20 See CRS In Focus IF11500, The CARES Act: Implications for Tribes, by Mainon A. Schwartz.
21 For more information about the IHBG, see CRS Report R43307, The Native American Housing Assistance and Self-
Determ ination Act of 1996 (NAHASDA): Background and Funding , by Katie Jones; on the ICDBG program, see CRS
In Focus IF11749, The Indian Com m unity Developm ent Block Grant (ICDBG) Program : An Overview, by Michael H.
Cecire.
22 See, for example, U.S. Government Accountability Office (GAO), Tribal Transportation: Better Data Could
Im prove Road Managem ent and Inform Indian Student Attendance Strategies, GAO-17-423, May 22, 2017, at
https://www.gao.gov/products/gao-17-423; and Donna Feir, Richard M. T odd, and Kent Weyrauch, The Digital Divide
in Indian Country, Federal Reserve Bank of Minneapolis, January 7, 2019, at https://www.minneapolisfed.org/article/
2019/the-digital-divide-in-indian-country.
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Federal Economic Development Resources for Tribal Nations: A Survey

For example, USDA RD offer a wide variety of both targeted and broad-based competitive
programs to facilitate community and economic development in primarily rural tribal areas.23
These programs include funding for community facilities; business and industry loan guarantees;
broadband deployment; and provision of basic infrastructure, among other things. HUD’s Indian
Community Development Block Grant Program, or ICDBG, also provides flexible competitive
funding for economic and community development purposes, and noncompetitive funding for
urgent needs.24 Other federal economic development agencies, such as the Economic
Development Administration and federal regional commissions and authorities, also provide
general community and economic development assistance to federal y recognized tribes. In
addition, certain federal programs specifical y support housing in tribal areas.25 These include
HUD’s Indian Housing Block Grant, which provides formula funding to tribes for affordable
housing activities, and the Section 184 program, through which HUD guarantees mortgages made
by private lenders to tribal members in eligible areas.26
Agencies Providing Tribal Economic Development
Resources
The following sections offer a general survey of the key federal agencies involved in providing
economic development resources for tribal nations.
Department of Agriculture
The Department of Agriculture, the lead agency for rural development in the federal government
statutorily, operates the Rural Development agencies,27 which provide a number of economic
development resources for rural areas,28 including tribal communities.29 With some exceptions,
USDA does not provide specialized tribal programs, but general y extends eligibility for its
existing programs to federal y recognized tribal entities—many of which are located in, or
overlap with, eligible rural areas. Under certain USDA RD programs, USDA also gives priority to
applications, waives certain requirements, and provides special loan terms for projects that serve

23 USDA Rural Development, Programs & Services for Tribes, at https://www.rd.usda.gov/programs-services/
programs-services-tribes.
24 For more information, see CRS In Focus IF11749, The Indian Community Development Block Grant (ICDBG)
Program : An Overview, by Michael H. Cecire.
25 Native Hawaiians, though they are not generally included in federal programs that serve American Indian and
Alaskan Native communities, also experience higher rates of many housing problems. HUD’s Native Hawaiian
Housing Block Grant and Section 184A programs provide funding and mortgage guarantees, respectively, to address
housing needs of Native Hawaiians eligible to reside on the Hawaiian Home Lands. See Kristen Corey, Jennifer Biess,
Nancy Pindus, et al., Housing Needs of Native Hawaiians, prepared for U.S. Department of Housing and Urban
Development, May 2017, pp. xv-xvii, at https://www.huduser.gov/portal/sites/default/files/pdf/HNNH.pdf.
26 For more information on the Section 184 program, see HUD, “ Section 184 Indian Home Loan Guarantee Program,”
at https://www.hud.gov/program_offices/public_indian_housing/ih/homeownership/184.
27 USDA-RD is a USDA “mission area” comprised of three sub-agencies—the Rural Business-Cooperative Service,
Rural Housing Service, and Rural Utilities Service. For more information, see Department of Agriculture (USDA),
Rural Developm ent: Agencies, accessed August 24, 2021, https://www.rd.usda.gov/about-rd/agencies.
28 Department of Agriculture (USDA), Rural Development: Programs and Services, accessed August 18, 2021,
https://www.rd.usda.gov/programs-services.
29 USDA, Rural Development: Programs and Services for Tribes, accessed August 17, 2021, https://www.rd.usda.gov/
programs-services/programs-services-tribes.
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Federal Economic Development Resources for Tribal Nations: A Survey

substantially underserved trust areas—tribal lands held in trust by the federal government for
Native Americans.30
Potential y relevant USDA economic development programs include:
 The Rural Business Development Grants Program, which provides grants to
eligible entities for targeted technical assistance and training for rural
businesses;31
 The Community Facilities Direct Loan & Grant Program, which provides
funding through direct loans or grants for essential community facilities;32
 The Economic Impact Initiative Grants Program, which provides grants for
essential community facilities for especial y distressed areas;33
 The Business and Industry Loan Guarantees Program, which guarantees loans
made by banks and other lenders to rural businesses, nonprofits, and public
bodies and tribes;34
 The Community Connect Grants Program, which provides funding for rural
broadband;35
 The Intermediary Relending Program, which provides business loans to improve
economic conditions;36 and
 The Multi-Family Housing Loan Guarantees Program, which guarantees loans
made by private-sector lenders to eligible borrowers who are building or
preserving affordable rural housing.37
In addition, USDA also has a standing Office of Tribal Relations, which coordinates tribal
programming and assists federal tribal partners in accessing USDA resources.38 For more
information on USDA RD programs, see CRS Report RL31837, An Overview of USDA Rural
Development Programs.

30 USDA RD, “Substantially Underserved T rust Area (SUT A),” accessed August 23, 2021, https://www.rd.usda.gov/
about-rd/initiatives/substantially-underserved-trust-area-suta.
31 USDA, Rural Development: Rural Business Development Grants, accessed August 15, 2021,
https://www.rd.usda.gov/programs-services/rural-business-development -grants.
32 USDA, Rural Development: Community Facilities Direct Loan and Grant Program , accessed August 15, 2021,
https://www.rd.usda.gov/programs-services/community-facilities-direct -loan-grant -program. USDA also operates a
similar program that provides loan guarantees for eligible lenders. See USDA, Rural Developm ent: Com m unity
Facilities Guaranteed Loan Program , accessed August 15, 2021, https://www.rd.usda.gov/programs-services/
community-facilities-guaranteed-loan-program.
33 USDA, Rural Development: Economic Impact Initiative Grants, accessed July 18, 2021, https://www.rd.usda.gov/
programs-services/economic-impact -initiative-grants.
34 USDA, Rural Development: Business Industry Loan Guarantees, accessed July 12, 2021, https://www.rd.usda.gov/
programs-services/business-industry-loan-guarantees.
35 USDA, Rural Development: Community Connect Grants, accessed August 12, 2021, https://www.rd.usda.gov/
programs-services/community-connect -grants.
36 USDA, Rural Development: Intermediary Relending Program, accessed August 11, 2021, https://www.rd.usda.gov/
programs-services/intermediary-relending-program.
37 USDA, Rural Development: Multi-Family Housing Loan Guarantees, accessed July 18, 2021,
https://www.rd.usda.gov/programs-services/multi-family-housing-loan-guarantees.
38 USDA, Office of Tribal Relations, accessed July 18, 2021, https://www.usda.gov/tribalrelations.
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Given its rural development mission and breadth of tribal programming, USDA RD could be
considered the most comprehensive source of community and economic development funding for
tribal nations. Table 1 lists USDA RD programs that are available to federal y recognized tribes.
Table 1. USDA Rural Development Programs Serving Federally Recognized Tribes
in alphabetical order
Program Title
Support Type
Tribal Eligibility
Notes
Biorefinery,
Loan Guarantees
Federal y recognized tribes and
Assists in the development,
Renewable Chemical,
other financial institutions may
construction, and retrofitting of
and Biobased Product
apply to administer the
advanced biofuels, renewable
Manufacturing
program. Eligible borrowers
chemicals, and biobased
Assistance Program
include a variety of public and
products.
private entities including Indian
tribes.
Business and Industry
Loan Guarantees
Federal y recognized tribes may
Provides loan guarantees to
Loan Guarantees
apply as borrowers.
support rural businesses.
Community Connect
Grants
Federal y recognized tribes may
Supports broadband
Grants
apply, along with certain
deployment into rural
governmental and nonprofit
communities.
entities.
Community Facilities
Grants, Direct
Federal y recognized tribes may
Supports the development of
Direct Loan and
Loans, Loan
apply.
essential community facilities in
Grant Program /
Guarantees
rural areas.
Guaranteed Loan
Program
Distance Learning and
Grants
Various private, non-profit, and
Funds the acquisition of capital
Telemedicine Grants
governmental entities, including
assets for distance learning and
federal y recognized tribes.
telemedicine capabilities.
Economic Impact
Grants
Federal y recognized tribes may
Helps develop essential
Initiative Grants
apply, along with certain
community facilities in rural
governmental and nonprofit
communities with extreme
entities.
unemployment and severe
economic depression.
Emergency
Grants
Federal y recognized tribes may
Assists communities in
Community Water
apply, as wel as state and local
preparing for, or responding to,
Assistance Grants
governments and nonprofit
an emergency that threatens the
organizations.
availability of safe, reliable
drinking water.
Grants for Rural and
Grants
Rural Alaskan vil ages, or the
Supports the development of
Native Alaskan
State of Alaska on behalf of a
water and waste disposal
Vil ages
rural Alaskan vil age, including
infrastructure for households
Alaska Native communities.
and businesses.
Household Water
Grants to
Nonprofits may apply to serve
Supports revolving loan funds
Wel System Grants
Capitalize
eligible areas, which may include
for household water systems in
Revolving Loans
rural tribal areas.
eligible rural areas.
Intermediary
Loans for
Federal y recognized tribes may
Provides low-interest loans to
Relending Program
Relending
apply, among other public
local lenders that re-lend to
bodies and nonprofit
businesses to improve rural
organizations.
economic conditions.
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Federal Economic Development Resources for Tribal Nations: A Survey

Program Title
Support Type
Tribal Eligibility
Notes
Multi-Family Housing
Direct Loans,
Federal y recognized tribes may
Provides financing for affordable
Direct Loans / Loan
Loan Guarantees
apply for direct loans, or as a
multi-family rental housing for
Guarantees
borrower for guaranteed loans.
low-income, elderly, or disabled
persons in eligible rural areas.
Mutual Self-Help
Grants
Federal y recognized tribes may
Supports local self-help housing
Housing Technical
apply, along with certain
construction projects in
Assistance Grants
governmental and nonprofit
qualified communities.
entities.
ReConnect Loans and
Grants, Direct
Federal y recognized tribes may
Supports broadband
Grants
Loans
apply, along with certain public
deployment in rural areas.
and private entities
Revolving Funds for
Grants to
Nonprofits administer the
Supports revolving loans to
Financing Water and
Capitalize
program in eligible areas,
extend and improve rural water
Wastewater Projects
Revolving Loans
including tribal lands.
and waste disposal systems.
Rural Broadband
Direct Loans,
For-profit, nonprofit, and
Supports broadband
Program
Loan Guarantees
governmental entities may
deployment in rural areas.
apply, including tribal entities.
Rural Business
Grants
Rural public entities, including
Supports the provision of
Development Grants
federal y recognized tribes.
technical assistance and training
for smal rural businesses.
Rural Community
Grants
Federal y recognized tribes,
Supports development of rural
Development Initiative
public bodies, non-profits, and
housing, community facilities
Grants
qualified for-profit entities.
and community and economic
development projects.
Rural Cooperative
Grants
Nonprofit entities and
Supports the creation of
Development Grants
institutions of higher education,
Cooperative Development
including tribal col eges, may
Centers to provide assistance
apply.
to cooperatives in rural areas.
Rural Energy for
Grants
Federal y recognized tribes may
Assists rural smal businesses
America Program
apply, among other various
and agricultural producers by
Energy Audit and
organizations.
conducting and promoting
Renewable Energy
energy audits and providing
Development
Renewable Energy Development
Assistance Grants
Assistance.
Rural Housing Site
Direct Loans
Federal y recognized tribes may
Supports the purchase and
Loans
apply, among other nonprofit
development of home sites for
organizations.
low-income persons.
Rural Innovation
Grants
Tribal entities may apply, among
Supports jobs accelerator
Stronger Economy
other public bodies and
partnerships, training for high-
Grants
nonprofit organizations.
wage jobs, and business
incubators in eligible low-
income rural areas.
Rural
Direct Loans,
Federal y recognized tribes may
Supports Microenterprise
Microentrepreneur
Grants
apply, among other various
Development Organizations in
Assistance Program
organizations.
providing technical assistance
and microloans.
Social y Disadvantaged Grants
Nonprofit entities and
Supports the creation of
Groups Grants
institutions of higher education,
Cooperative Development
including tribal col eges, may
Centers that support social y
apply.
disadvantaged groups, including
federal y recognized tribes.
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Federal Economic Development Resources for Tribal Nations: A Survey

Program Title
Support Type
Tribal Eligibility
Notes
Solid Waste
Grants
Federal y recognized tribes may
Supports the provision of
Management Grants
apply, among other various
technical assistance or training
organizations.
to improve solid waste site
planning and management.
Special Evaluation
Grants
Federal y recognized tribes may
Assists very smal , financial y
Assistance for Rural
apply, among other various
distressed rural communities
Communities and
organizations.
with predevelopment feasibility
Households
studies, design, and technical
assistance on proposed water
and waste disposal projects.
Telecommunications
Loans, Loan
Federal y recognized tribes may
Supports the construction,
Infrastructure Loans
Guarantees
apply, among various other
maintenance, improvement, and
and Loan Guarantees
organizations.
expansion of telephone service
and broadband in rural areas.
Tribal Col ege
Grants
Tribal Col eges as listed in
Supports 1994 Land Grant
Initiative Grants
Section 7402 of the Agricultural
Institutions (Tribal Col eges) to
Act of 2014.
make capital improvements to
educational facilities and to
purchase equipment.
Water and Waste
Grants, Direct
Federal y recognized tribes may
Supports the construction and
Disposal Direct Loans
Loans, Loan
apply for loans or grants, or
improvement of water and
and Grants / Loan
Guarantees
apply to private lenders for loan
waste disposal systems in rural
Guarantees
guarantees.
areas.
Water and Waste
Grants
Federal y recognized tribes may
Supports water and waste
Disposal Grants to
apply, among various other
disposal facilities and services in
Al eviate Health Risks
organizations serving eligible
low-income rural areas.
on Tribal Lands and
areas (including tribal lands).
Colonias
Water and Waste
Grants
Federal y recognized tribes may
Assists low-income
Disposal
apply, among various other
communities with initial planning
Predevelopment
organizations.
and development of applications
Planning Grants
for USDA Rural Development
Water and Waste Disposal
direct loan/grant and loan
guarantee programs.
Water and Waste
Grants
Private non-profits serving
Supports technical assistance
Disposal Technical
eligible areas, including tribal
and training for water and waste
Assistance and
territory.
disposal in eligible rural areas.
Training Grants
Source: USDA, Programs and Services for Tribes, accessed August 19, 2021, https://www.rd.usda.gov/programs-
services/programs-services-tribes.
Bureau of Indian Affairs
The Bureau of Indian Affairs in the Department of the Interior operates a variety of programs to
support federal y recognized tribal governments39 and certain eligible Native American

39 Bureau of Indian Affairs (BIA), Direct Assistance (Financial Assistance & Social Services), accessed July 18, 2021,
https://www.bia.gov/bia/ois/dhs/financial-assistance.
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Federal Economic Development Resources for Tribal Nations: A Survey

individuals and households.40 Although some of these programs may have economic development
implications, the BIA is general y less involved in providing direct community and economic
development funding. BIA offers limited economic development assistance through the Office of
Indian Economic Development (IED) and the Division of Energy and Mineral Development
(DEMD).41
Programs through IED include:
 The Native American Business Development Institute Grant Program, which
supports feasibility studies on the viability of an economic development project,
opportunity, enterprise, business, or technology;42
 The Indian Loan Guarantee and Insurance Program, which assists eligible
borrowers to develop viable Indian businesses through conventional lender
financing;43
 The Tribal Tourism Grant Program, which assists tribes in identifying viable
tourism business opportunities in their communities;44
 The Indian Business Incubators Program, which provides business development
assistance to Native entrepreneurs to provide products or services to tribal
communities;45 and
 The National Tribal Broadband Grant program, which helps establish and expand
broadband access in Native communities.46
In addition, under IED’s Division of Economic Development (DED), BIA performs outreach and
provides technical assistance to develop Native businesses and tribal legal infrastructure, which
can help facilitate investment and commerce.47
In the BIA’s Office of Trust Services (OTS), DEMD provides funding through several energy-
oriented economic development-related programs:
 The Tribal Energy Development Capacity Program, which assists with the
development of managerial, organizational, and technical capacity needed to
maximize the economic impact of energy resource development on Indian
lands;48 and

40 BIA, Housing Improvement Program , accessed July 15, 2021, https://www.bia.gov/bia/ois/dhs/housing-
improvement -program.
41 BIA, Office of Indian Energy and Economic Development, accessed August 11, 2021, https://www.bia.gov/as-ia/
ieed.
42 BIA, Native American Business Development Institute Grant, accessed July 25, 2021, https://www.bia.gov/service/
grants/nabdi.
43 BIA, Indian Loan Guarantee and Insurance Program , accessed July 27, 2021, https://www.bia.gov/service/loans/
ilgp.
44 BIA, Tribal Tourism Grant Program , accessed July 20, 2021, https://www.bia.gov/service/grants/ttgp.
45 BIA, Indian Business Incubators Program , accessed July 22, 2021, https://www.bia.gov/service/grants/ibip.
46 BIA, National Tribal Broadband Grant, accessed August 7, https://www.bia.gov/service/grants/ntbg.
47 BIA, Division of Economic Development, accessed August 7, 2021, https://www.bia.gov/as-ia/ied/division-
economic-development .
48 BIA, Tribal Energy Development Capacity (TEDC) Program , accessed July 25, 2021, https://www.bia.gov/service/
grants/tedc.
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 The Energy and Mineral Development Program, which supports projects that
assess, evaluate, or otherwise promote the productive use or development of
energy and mineral resources on Indian lands.49
OTS also provides grant funding for climate resilience activities,50 which may be used to support
tribal community and economic development needs.51
Economic Development Administration
The Economic Development Administration provides several programs with potential relevance
to federal y recognized tribes and eligible tribal entities.52 EDA programs are largely broad-based;
tribal entities may be eligible, but do not necessarily receive priority outreach or consideration.53
Competitive program areas include:
 Public Works: This program provides funding to revitalize, expand, and upgrade
physical infrastructure to “attract new industry, encourage business expansion,
diversify local economies, and generate or retain long-term, private sector jobs
and investment.”54
 Economic Adjustment: This program assists grantees with “designing and
implementing strategies to adjust or bring about change to an economy” in
distressed areas.55
 Build to Scale (formerly Regional Innovations Strategies): This program supports
startups through competitions “supporting entrepreneurship, acceleration of
company growth and increased access to risk capital across regional
economies.”56
The EDA also provides planning and technical assistance support to various units of local
government, tribal entities, and Economic Development Districts (EDDs). Much of the EDA’s
visible grant activities are routed through regional EDDs, which are local y based, multi-
jurisdictional organizations designated by EDA to provide subawards and facilitate other related
activities. These EDDs can provide technical assistance and consulting services to organizations

49 BIA, Energy and Mineral Development Program , accessed July 25, 2021, https://www.bia.gov/service/grants/emdp.
50 BIA, Annual Awards Program , accessed August 15, 2021, https://www.bia.gov/bia/ots/annual-awards-program.
51 For information on the relationship between federal economic development resources and climate change issues, see
CRS In Focus IF11815, Clim ate Change: Selected Federal Econom ic Developm ent Tools and Policy Considerations,
by Michael H. Cecire and Jane A. Leggett .
52 Economic Development Administration (EDA), EDA Programs, accessed August 13, 2021, https://www.eda.gov/
programs/eda-programs/.
53 For more information on the EDA, see CRS Report R41241, Economic Development Administration: A Review of
Elem ents of Its Statutory History, by Julie M. Lawhorn.
54 EDA, EDA Programs, accessed August 13, 2021, https://www.eda.gov/programs/eda-programs/.
55 Public Works and Economic Adjustment Assistance, as well as the Assistance to Coal Communities program, are
granted through a single solicitation notice. See https://www.grants.gov/web/grants/view-opportunity.html?oppId=
306735. In addition the Revolving Loan Fund operates under Economic Adjustment Assistance. See CRS In Focus
IF11449, Econom ic Development Revolving Loan Funds (ED-RLFs), by Julie M. Lawhorn.
56 Economic Development Administration (EDA), EDA Programs, accessed August 13, 2021, https://www.eda.gov/
programs/eda-programs/.
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and entities, including federal y recognized tribes, by advising on eligibility for certain EDA
programs and other potential resources from other federal and state agencies.57
Recent EDA grants to federal y recognized tribes in 2021 include, for example, funding for the
development of economic development recovery strategies to recover from the effects of COVID-
19;58 and technical assistance for utilizing natural resources, and a related workforce development
plan for job creation.59
Department of Health and Human Services
The Department of Health and Human Services supports community and economic development
through a variety of programs, of which several are open to federal y recognized tribal entities.
Programs open to tribes are administered through HHS’s Tribal Liaison Workgroup in the Office
of Community Services.60
Relevant programs from the Office of Community Services include:
 The Community Economic Development Program, which awards grants to tribes
to increase self-sufficiency in distressed areas;61
 The Community Services Block Grant Program, which provides block grant
funds to tribal entities to combat poverty;62
 The Rural Community Development Program, which assists with developing safe
water infrastructure;63 and
 The Low Income Home Energy Assistance Program, which offers various energy
assistance benefits.64
Department of Housing and Urban Development
The Department of Housing and Urban Development is among the largest sources of federal
community and economic development funding through the Community Development Block
Grant (CDBG) program. Tribal entities are eligible for a similar but separate category of CDBG
funds cal ed the Indian Community Development Block Grant program (ICDBG). ICDBG and
other tribal-specific programming is administered by the Office of Native American Programs
(ONAP).65

57 EDA, Economic Development Districts, accessed August 13, 2021, https://www.eda.gov/edd/.
58 See CRS Insight IN11402, The Econom ic Development Administration’s Economic Recovery Assistance for COVID-
19 Im pacted Com m unities, by Julie M. Lawhorn.
59 EDA, Latest EDA Grants, accessed August 22, 2021, https://eda.gov/grants/.
60 Department of Health and Human Services (HHS), Office of Community Services: Tribal Liaison Workgroup,
accessed August 16, 2021, https://www.acf.hhs.gov/ocs/programs/tribal-services.
61 HHS, Community Economic Development, accessed August 16, 2021, https://www.acf.hhs.gov/ocs/programs/ced.
62 HHS, Community Services Block Grant Program , accessed August 16, 2021, https://www.acf.hhs.gov/programs/ocs/
programs/csbg.
63 HHS, Rural Community Development Program , accessed August 18, 2021, https://www.acf.hhs.gov/programs/ocs/
programs/rcd.
64 HHS, Low Income Home Energy Assistance, accessed August 20, 2021, https://www.acf.hhs.gov/programs/ocs/
programs/liheap.
65 Department of Housing and Urban Development (HUD), Office of Native American Programs, accessed August 17,
2021, https://www.hud.gov/program_offices/public_indian_housing/ih.
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The ICDBG program provides direct grants to tribes and Alaskan native vil ages to support the
development of housing, suitable living environments, and economic opportunities. Program
funds are required principal y to benefit low- and moderate-income persons.66
Grants are awarded in two categories: (1) single purpose grants, which are awarded on a
competitive basis through an annual notice of funding availability; and (2) imminent threat grants,
which are al ocated on a noncompetitive basis as available to eliminate or mitigate issues posing
an urgent threat to the public health or safety of tribal residents.67 For more information on the
ICDBG program, see CRS In Focus IF11749, The Indian Community Development Block Grant
(ICDBG) Program: An Overview.
Additional HUD community and economic development programs for tribal entities include:
 The Indian Housing Block Grant Program (IHBG): IHBG provides formula
grants for a variety of housing activities on reservations and tribal areas.68
 The Tribal Housing Activities Loan Guarantee Program (Title VI): Federal y
recognized tribes and tribal y designated housing entities are eligible for
financing in addition to the IHBG to build new housing, rehabilitate existing
housing, build infrastructure, build community facilities, acquire land for housing
development, prepare plans, and other activities.69
 Rural Capacity Building for Community Development and Affordable Housing
Grants Program: This program grants funds to non-profit organizations and
al ows for support of tribes in housing and community development efforts.70
Employment and Training Administration
The Department of Labor’s Employment and Training Administration administers several
workforce development funding programs with varying applicability to federally recognized
tribal entities.71 The ETA’s Division of Indian and Native American Programs coordinates
assistance to federal tribal entities, and particularly Section 166 of the Workforce Innovation and
Opportunity Act (WIOA).72 Section 166 programs are described as:
Designed to support employment and training activities in order to develop more fully the
academic, occupational and literacy skills; make individuals more competitive in the
workforce; and promote economic and social development in accordance with the goals
and values of such communities.

66 24 C.F.R. §1003.208.
67 HUD, Indian Community Development Block Grant program (ICDBG), accessed August 17, 2021,
https://www.hud.gov/program_offices/public_indian_housing/ih/grants/icdbg.
68 HUD, Indian Housing Block Grant program (ICDBG), accessed August 17, 2021, https://www.hud.gov/
program_offices/public_indian_housing/ih/grants/ihbg.
69 HUD, Tribal Housing Activities Loan Guarantee Program (Title VI), accessed August 17, 2021,
https://www.hud.gov/program_offices/public_indian_housing/ih/homeownership/titlevi.
70 HUD Exchange, Rural Capacity Building for Community Development and Affordable Housing Grants Program ,
accessed August 18, 2021, https://www.hudexchange.info/programs/rural-capacity-building/.
71 Employment and T raining Administration (ET A), Department of Labor Employment and Training Administration,
accessed August 17, 2021, https://www.dol.gov/agencies/eta.
72 ET A, Division of Indian and Native American Programs (DINAP), accessed August 17, 2021, https://www.dol.gov/
agencies/eta/dinap.
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Under WIOA, the ETA provides assistance to local workforce development boards that provide
workforce development assistance to states, localities, and, under Section 166, to federal y
recognized tribal entities. For more information about WIOA, see CRS Report R44252, The
Workforce Innovation and Opportunity Act and the One-Stop Delivery System.
Agencies That Serve Tribal Businesses
The Smal Business Administration (SBA) and the Department of Commerce’s Minority Business
Development Administration (MBDA) both offer certain resources to tribal organizations,
including loans and technical assistance. Beneficiaries may include tribal y owned or established
businesses, such as Alaska Native Corporations, or businesses established or owned by Native
American entrepreneurs.73 USDA RD also provides services to tribal y owned and Native
American businesses through the Rural Business-Cooperative Service, as outlined in the USDA
section of this report.
Small Business Administration
The Smal Business Administration offers a variety of programs that support smal businesses
with access to capital, federal contracts, technical assistance, and advisory services. For more
information about SBA programs, see CRS Report RL33243, Small Business Administration: A
Primer on Programs and Funding.
The SBA’s Office of Native American Affairs provides technical assistance and supports
American Indians, Alaskan Natives, and Native Hawai ans in creating, developing, and
expanding smal business.74 The office administers programs related to entrepreneurial
development, lending, and procurement. In addition, American Indian business owners are
eligible to participate in the SBA Minority Smal Business and Capital Ownership Development
Program (the “8(a) Program”), which provides minority smal businesses with set-asides and
sole-source awards. For more information on the 8(a) Program, see CRS Report R44844, SBA’s
“8(a) Program”: Overview, History, and Current Issues.
In addition to regional and district offices, the SBA helps fund a broad network of smal business
development centers (SBDCs) around the country.75 SBDCs administer loans, conduct trainings,
provide technical assistance to smal businesses, and are general y a resource for local context-
specific resources for smal businesses. Native American businesses as wel as tribes can consult
a local SBDC or another SBA office for assistance.
Minority Business Development Agency
The Department of Commerce’s Minority Business Development Agency is the lead federal
agency dedicated to assisting minority business enterprises (MBEs) in overcoming social and
economic disadvantages that have limited their participation in the nation’s free enterprise
system. The MBDA’s mission is to support the growth and global competitiveness of the

73 Although this report does not generally include resources for individuals, small and minority business assistance
programs are included because of the role that some for-profit businesses play in tribal affairs, and the community and
economic development role that businesses play.
74 Small Business Administration (SBA), Office of Native American Affairs, accessed August 17, 2021,
https://www.sba.gov/offices/headquarters/naa.
75 SBA, Office of Small Business Development Centers, accessed August 17, 2021, https://www.sba.gov/offices/
headquarters/osbdc.
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minority business community. Through a network of local business development centers and
other initiatives, the MBDA carries out this mission by providing technical and business
assistance, support, and resources, as wel as advocacy and research on behalf of MBEs.
MBDA provides assistance to entities with expertise in American Indian, Alaska Native, and
Native Hawai an (AIANNH) business for projects that focus on job creation, retention, and
economic impact for AIANNH communities and businesses.76 AIANNH projects may provide a
range of services including, but not limited to, entrepreneurial assistance, training, capital access,
federal procurement assistance, networking and relationship management, deal sourcing, joint
ventures and partnerships, strategic infrastructure and economic planning assistance, and
education for entrepreneurial and tribal entities.
For more information about the MBDA, see CRS Report R46816, The Minority Business
Development Agency: An Overview of Its History and Programs.
Federal Regional Commissions and Authorities
There are seven chartered federal regional commissions and authorities, which are place-based,
multistate (in al cases except for one) federal-state partnerships that integrate federal and state
economic development priorities with regional and local considerations, and engage in economic
development activities to that effect.
Of the seven federal regional commissions and authorities, four are currently active:
 Appalachian Regional Commission (service area includes parts of Alabama,
Georgia, Kentucky, Maryland, Mississippi, New York, North Carolina, Ohio,
Pennsylvania, South Carolina, Tennessee, Virginia, and al of West Virginia);77
 Delta Regional Authority (al or parts of Alabama, Arkansas, Il inois, Kentucky,
Louisiana, Mississippi, Missouri, and Tennessee);78
 Denali Commission (Alaska);79 and
 Northern Border Regional Commission (parts of northern Maine, New
Hampshire, New York, and Vermont).80
In addition, Congress has authorized the following federal authorities and commissions that are
currently inactive:
 Northern Great Plains Regional Authority (Iowa, Minnesota, Nebraska, North
Dakota, and South Dakota);
 Southeast Crescent Regional Commission (parts of Alabama, Georgia,
Mississippi, North Carolina, South Carolina, Virginia, and al of Florida); and
 Southwest Border Regional Commission (southern border regions of Arizona,
California, New Mexico, and Texas).

76 T he term “AIANNH” is unique to the MBDA.
77 Appalachian Regional Commission, accessed August 23, 2021, https://www.arc.gov.
78 Delta Regional Authority, accessed August 23, 2021, https://www.dra.gov.
79 Denali Commission, accessed August 23, 2021, https://www.denali.gov.
80 Northern Border Regional Commission, accessed August 23, 2021, https://www.nbrc.gov.
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As federal y chartered agencies created by acts of Congress, the federal regional commissions and
authorities depend on congressional appropriations for their activities and administration, and are
subject to congressional oversight.
In general, tribal entities that fal within the respective service areas of active federal regional
commissions and authorities are eligible for grant assistance.81 In addition, the Denali
Commission and the currently inactive Northern Great Plains Regional Authority both statutorily
include Native American representation as part of their governing structures. Under this structure,
the Denali Commission has elevated Native Alaskan issues in its grant making. For example, a
Government Accountability Office report found that rural and particularly Alaska Native vil ages
were susceptible to recurring flooding and erosion, threatening local infrastructure and
community integrity.82 In response, the Denali Commission established the Vil age Infrastructure
Protection program, which operated between 2016 and 2020, and provided approximately $40
mil ion in resources to mitigate the impact of these threats in Native Alaskan communities.83
For more information on the federal regional commissions and authorities, see CRS Report
R45997, Federal Regional Commissions and Authorities: Structural Features and Function.
Concluding Notes and Policy Considerations
The federal government offers an array of programs that may be used to address aspects of tribal
economic development, including certain programs that are either directly targeted to tribal
entities, or particularly wel suited to their circumstances or contexts (e.g., USDA RD programs).
However, this list of resources is not exhaustive, and many other programs are available for issues
or uses that are economic development-adjacent, such as support for basic and transportation
infrastructure, financial and credit access, and housing.
Improving Credit Access: Case Study
For example, with regard to community credit access, the Native American CDFI Assistance
(NACA) program at the Department of the Treasury’s Community Development Financial
Institution (CDFI) Fund provides capitalization through financial assistance awards to designated
Native CDFIs.84 NACA awards are made in the form of loans, grants, equity investments,
deposits, and credit union shares. The NACA program also provides technical assistance grants to
Native CDFIs, emerging Native CDFIs, and sponsoring entities (a financial entity that might be
sponsoring the development of a Native CDFI) to increase institutions’ capacity to serve Native
American communities.85

81 T his includes both federally recognized tribes, as well as potentially state-recognized tribes that are designated as
units of local government . Some federal agencies do have the authority to provide certain funding to state-recognized
tribes. For more information, see U.S. Government Accountability Office, Indian Issues: Federal Funding for Non-
Federally Recognized Tribes, GAO-12-348, April 2012, https://www.gao.gov/assets/600/590102.pdf.
82 U.S. Government Accountability Office, Alaska Native Villages: Limited Progress Has Been Made on Relocating
Villages Threatened by Flooding and Erosion , GAO-09-551, June 2009, https://www.gao.gov/assets/gao-09-551.pdf.
83 Denali Commission, Village Infrastructure Protection, August 18, 2021, https://www.denali.gov/programs/village-
infrastructure-protection/.
84 As financial institutions, Native CDFIs were not included in the scope of this report. T hey can play a significant role
in community and economic development in tribal areas.
85 CDFI Fund, Native Initiatives, accessed July 19, 2021, https://www.cdfifund.gov/programs-training/programs/native-
initiatives.
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The breadth of federal economic development resources provides tribes with many options; it can
also pose certain organizational chal enges for tribal governments and entities—particularly for
smal er communities with limited resources. Relatedly, even some economic development
programs that may be wel suited to tribal beneficiaries may struggle with uptake among tribal
organizations due to issues of awareness and engagement.
In this regard, certain federal efforts to increase engagement with tribal entities and populations
have appeared to bridge this gap. For example, one economic development-adjacent USDA RD
mortgage program, the Single Family Housing Direct Loan program, provides direct mortgage
lending to underserved borrowers in rural areas, but saw relatively little uptake among Native
Americans—particularly those living on reservation or trust lands. However, a pilot program that
worked with Native American financial institutions to lend those funds in Native American
communities saw promising early results in terms of program awareness and uptake (see case
study below).
Case Study: 502 Direct Native CDFI Relending Pilot Program
The establishment and popularity of a USDA RD pilot program for American Indian beneficiaries highlights both
economic distress in Native American communities, and potential issues of access and awareness in those
communities.
In 2018, USDA RD established a pilot program based on the Single Family Housing Direct Loan program, also
known as the Section 502 Direct Loan Program,86 to provide direct mortgage loans to Native American
beneficiaries. The pilot program, known as the 502 Direct Native CDFI Relending Pilot Program, col aborated with
two Native Community Development Finance Institutions (CDFIs) in South Dakota, which acted as intermediaries
to re-lend funds as a way of increasing participation among eligible low-income families on tribal lands in the
Dakotas. USDA RD lent $800,000 to each CDFI, Mazaska Owecaso Otipit Financial and Four Bands Community
Fund, to relend to eligible homebuyers for mortgages on South Dakota and some North Dakota tribal lands. Each
CDFI also contributed $200,000 each for the mortgages, bringing the pilot program’s total capitalization to $2
mil ion.
A February 2020 progress report on the Native CDFI Relending Pilot Program by the South Dakota Native
Homeownership Coalition (SDNHC),87 of which both CDFIs are members, noted that deployment of the funds
began in October 2019, and by February 2020 approximately 50% of the loan capital had been deployed, resulting
in eight new homeowners. Of the program, SDNHC leadership noted that it was “more than was deployed in the
previous nine years prior to the start of the program.”88 The progress report noted eight pilot loans deployed as
of February 2020 with an average amount of $97,951, and reported consistent demand.
In August 2020, the South Dakota congressional delegation sent a letter to USDA leadership requesting the pilot’s
continuation.89 The letter noted that “the Native CDFIs have deployed nearly $2 mil ion in mortgage capital [or
approximately the entirety of the pilot’s total capitalization] to eligible 502 borrowers in less than a year, more
than three times the amount of capital deployed to the same reservations in the previous nine years.” The letter
also says that the Native CDFIs “estimate that there is demand for more than $3 mil ion worth of 502 direct loans
should additional funding be provided[.]” According to its proponents, the Native CDFI Relending Pilot Program
was able to succeed because it integrated Native American representation and outreach (through the Native
CDFIs) with existing if more general resources.

86 USDA Rural Development, Single Family Housing Direct Home Loans, accessed July 19, 2021,
https://www.rd.usda.gov/programs-services/single-family-housing-direct-home-loans.
87 South Dakota Native Homeownership Coalition, Progress Report: 502 Direct Native CDFI Relending Pilot
Program , February 2020, https://www.sdnativehomeownershipcoalition.org/2019/wp-content/uploads/2020/03/502-
Success-Report_v2.pdf.
88 South Dakota Native Homeownership Coalition, Pilot Program Increases Rates of Mortgage Lending on South
Dakota’s Reservations, accessed July 20, 2021, https://www.sdnativehomeownershipcoalition.org/news/pilot-program-
increases-rates-of-mortgage-lending-on-south-dakotas-reservations/.
89 Letter from John T hune, Senator, M. Michael Rounds, Senator, and Dusty Johnson, Member of Congress, to Sonny
Perdue, Secretary of Agriculture, August 4, 2020, https://www.sdnativehomeownershipcoalition.org/2019/wp-content/
uploads/2019/10/SD-Delegation-Letter-re-502-Relending-Pilot-August-4-2020.pdf.
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Resource Coordination and Native Representation
Another chal enge to developing effective tribal economic development policy is the duality of
American Indian nations’ status as both units of government within the United States, and as
sovereign entities with government-to-government relationships to the federal government. In
that regard, federal tribal economic development policy emphasizes programming that assists
tribes in developing their economies—pursuant to principles of self-determination as outlined in
the ISDEAA statute. However, in recognition of deep-seated poverty and socioeconomic distress
in many tribal areas, the federal government also provides more direct economic development
tools and interventions.
One approach to facilitate the interchange between economic development grant making and
intergovernmental coordination has been through intergovernmental agencies that enshrine
American Indian and Native Alaskan participation. For example, the Denali Commission, a
federal regional commission, provides infrastructure and economic development grant programs
to a variety of communities and eligible organizations in Alaska, including Alaska Native
communities. In addition, the Denali Commission includes a federal co-chair, the Alaska
governor, and the Alaska Federation of Natives president, alongside representation from four
other state constituencies. This represents a potential model where Native American interests are
represented at the leadership level of a federal economic development grant making agency.
Another authorized federal regional commission, the Northern Great Plains Regional Authority,
also has a similar type of leadership structure, but is currently inactive.
As such, future considerations of federal tribal economic development policy may consider
improving coordination mechanisms, and integrating tribal representation into economic
development decisionmaking. For example, Congress may consider developing the means by
which tribal economic development tools may be more effectively coordinated—to better
calibrate interagency tribal economic development policy and simplify the process for lower-
capacity tribal governments. In addition, as is the case in the Denali Commission, federal
economic development interventions could be more central y coordinated and include integrated
representation for tribal leadership, which would highlight both the intergovernmental nature of
the federal-tribal relationship and the standing federal policy to promote self-determination.

Author Information

Michael H. Cecire

Analyst in Intergovernmental Relations and
Economic Development Policy

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Sep. 1, 2021

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Metadata

Report Type: CRS Report

Source: CRSReports.Congress.gov

Raw Metadata: JSON