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Witnesses tell House panel cuts to Native contracting and staffing stall tribal economies
Summary
Panelists warned that proposals to cut or freeze Native contracting programs and federal staffing reductions have halted projects, laid off workers and reduced tribes’ ability to deliver services; witnesses urged protecting 8(a)-style contracting tools and restoring tribal offices and staff.
Leaders of Native economic organizations told a House Natural Resources Subcommittee that federal contracting programs and dedicated agency staffing are central to tribal economic stability and that recent policy changes and staffing reductions have produced immediate harm.
Derek Watchman, chairman of the National Center for American Indian Enterprise Development, said several cooperative agreements and BIA-supported programs were effectively paused or defunded, forcing layoffs and stalling tourism and electrification projects. "We made a lot of promises," he said. "Then the BIA office shut down, no funding. We had to lay off five folks."
Evan (introduced as Haven) Harris of the Bering Straits Native Corporation highlighted how federal contracting translates into tangible community support in remote regions: "For many, participation in federal contracting has been one of the most effective tools Congress has provided to turn that model into real, measurable outcomes for our communities," he said, citing FY2020 contracting awards to Native entities of about $26.2 billion.
Members questioned witnesses on how program design and agency operations can protect contracting authorities. Panelists urged Congress and agencies to protect the SBA 8(a)-style authorities that enable Native sole-source and preference contracting, to hire staff with banking and procurement experience in agencies that run loan guarantee programs, and to ensure sustained funding for cooperative agreements. Witnesses also urged a protected, resourced Office of Native American Affairs in Commerce and prompt re‑activation of offices that administer tribal business programs.
Witnesses said the policy consequence is immediate: reduced employment, fewer contractor bids, lost dividends for tribal governments, and stalled infrastructure projects. Committee members asked agencies to report back on program statuses and suggested legislative or administrative steps to codify practices such as centralized clearinghouses and stronger interagency tribal offices.
