$32B for tribal nations opens up entrepreneurship opportunities

$32 billion in funding for tribal nations opens up new opportunities

What you probably already know: Tribal nations are getting a boost, and it’s playing out in new developments and businesses that are popping up from Arizona to Washington to South Dakota. The American Rescue Plan Act, passed by Congress in 2021, was primarily aimed at reviving the economy after the Covid pandemic. But it also included $32 billion for tribes and reservations, funds that are now resulting in a huge economic boost for these communities.

Why? The New York Times took a look at all the construction and small businesses that are getting assistance from this funding, which included community development grants and access to the $10 billion State Small Business Credit Initiative program that had previously excluded tribal nations. It’s the largest economic plan for tribal governments in history, and comes after generations of people grew up in poverty in tribal nations across the U.S. Approximately 29.4% of Native Americans living on reservations live in poverty, compared to 12.7% of Americans.

What it means: For many who are looking to start businesses and build wealth in their community, infrastructure issues can get in the way. Reservations often struggle with access to high-speed internet, for example, and spaces for small businesses to start up and grow. These funds are helping add this vital infrastructure and could dramatically increase access for Native entrepreneurs. One additional issue is that the U.S. government technically owns the land the reservations are on, meaning that residents are not able to own their own property, and thus the community can’t benefit from commercial or residential property taxes.

What happens now? Tribes also haven’t been able to issue municipal bonds because they are legally barred from doing so, which has held back development of the kinds of public resources such as community centers and public spaces. As a result, many of the people who grew up on reservations and want to go to college, buy homes and start businesses must leave the reservations, taking their success with them. But now that reservations are able to build the necessary infrastructure, it’s increasing hope that in the future, the next generations of Native businesses will start and stay on the reservation.