Tribal financial leaders push tax parity, set‑asides and loan‑program fixes to expand tribal capital access

Tribal financial leaders told the Senate Committee on Indian Affairs that tax policy and federal financing tools remain central constraints on tribal economic development and urged Congress to modernize tax parity and capital access.

Rodney Butler, president of the Native American Financial Officers Association (NFOA), said recent efforts to pause or reclassify grants and programs have caused uncertainty and that long‑standing disparities in tax treatment constrain tribes’ ability to access capital. "By modernizing the tax code's treatment of tribal governments and providing targeted economic development incentives, tribal tax legislation will help tribes generate governmental revenue and deliver essential services," Butler said.

NFOA recommended several changes: extend tax parity between tribes and states for purposes such as excise taxes, bond issuance and pension plan treatment; create a $175 million annual set‑aside of New Markets Tax Credits for low‑income tribal communities; add tribal set‑asides for Low‑Income Housing Tax Credits; and revise the Department of Interior’s Indian Loan Guarantee Program so it can work with New Markets Tax Credits.

Butler also urged Congress to make the Treasury Department’s Office of Tribal and Native Affairs permanent and to continue the Tribal Treasury Advisory Committee, saying those entities helped secure clarifications on tribally chartered corporations and other technical fixes. He argued that reclassification of contract support costs and certain lease funding to mandatory appropriations would strengthen tribal self governance and financial stability.

Ending: NFOA told senators tax parity and targeted federal incentives could expand job creation, leverage private capital, and help tribes build revenue bases to support health, education and public safety programs. The committee took no formal action during the hearing.