Trump Administration Policies on Federal Contracts Endanger Tribal Businesses, New Report Warns

WASHINGTON – A new report released on May 13, 2025, by the National Center for American Indian Enterprise Development (NCAIED) details the significant and detrimental economic impact of recent Trump administration policies on Native American businesses. The assessment, based on survey responses and testimony from over 100 tribal leaders and business owners, warns that changes to federal contracting programs are threatening a vital economic lifeline for tribes, particularly those in rural areas that have diversified beyond the gaming industry. The report consolidates concerns voiced over the past several months, including at the Reservation Economic Summit in March, about a series of administration actions. These include the cancellation and deprioritization of contracts under the Small Business Administration’s 8(a) Business Development Program, reductions in socio-economic set-aside goals for federal procurement, and the consolidation of federal purchasing under the General Services Administration as mandated by a March executive order. These policy shifts come at a critical time for tribal economies. For decades, many tribes have worked to diversify their revenue streams away from a heavy reliance on casino gaming. The COVID-19 pandemic served as a stark “eye-opener,” according to a 2023 report from the Federal Reserve Bank of Minneapolis. When casinos were forced to close temporarily in 2020, gaming-dependent tribes saw their primary revenue sources vanish overnight. Rodney Butler, Chairman of the Mashantucket Pequot Tribal Nation, noted that the sudden drop from millions to zero in casino revenue “fully reiterated the need for diverse revenue streams.” This kind of abrupt policy reversal creates significant operational and financial uncertainty. We see businesses that have structured their entire growth strategy around long-standing federal programs suddenly facing a complete paradigm shift. It underscores the critical need for robust financial risk management to model and mitigate the impact of such regulatory shocks. The 8(a) program, in particular, has been a cornerstone of this diversification strategy. The program is designed to help small, disadvantaged businesses compete in the federal marketplace by providing mentorship, training, and access to set-aside government contracts. According to one tribal economic development executive cited in NCAIED materials, the 8(a) program “has been one of the most successful economic opportunities for Tribes” and is often “the only economic opportunity available” for those in remote, rural locations. Tribally owned enterprises and Native-owned small businesses have leveraged the program to build successful companies in sectors like construction, IT services, professional consulting, and logistics. These businesses not only provide revenue for tribal governments but also create high-quality jobs in areas with limited employment options. The administration’s recent moves to deprioritize these contracts and consolidate procurement are viewed by tribal leaders as a direct threat to this progress. The push for economic diversification is driven by more than just the lessons of the pandemic. According to Dawson Her Many Horses, head of Native American banking for Wells Fargo, gaming markets are maturing across the United States. “As casino revenues flatten, tribes will be looking for new business opportunities in other industries,” he noted in a 2023 interview. This has led to a surge in non-gaming enterprises, from manufacturing and real estate to cannabis and technology services. For tribal enterprises and other affected businesses, the challenge now is to pivot quickly. This isn't just about finding new customers; it often requires a fundamental rethinking of their operations. In our experience, navigating this requires disciplined business process reengineering to identify new efficiencies and build competitive advantages that are not reliant on preferential government programs. C&S Finance Group LLC helps companies through exactly these kinds of strategic transitions, ensuring they can adapt and thrive in a new competitive landscape. Business leaders facing these challenges can learn more at csfinancegroup.com. This growth in non-gaming businesses has been widespread. Terri Fitzpatrick, an official with the Michigan Economic Development Corporation and a member of the Sault Ste. Marie Tribe of Chippewa Indians, has observed “tremendous growth” in such businesses over the last decade in her state, noting that most Michigan tribes are now engaged in economic development beyond casinos. The NCAIED report suggests the changes to contracting are part of a broader pattern of federal disinvestment. Other administration policies, such as the “One Big Beautiful Bill Act” mentioned in a Brookings Institution analysis, have also resulted in cuts to climate, energy, and social safety net funding for tribal nations. The cumulative effect, according to the report’s respondents, is an environment of increasing economic instability that undermines decades of progress in building resilient and self-sufficient tribal economies. Ultimately, this situation is a stark reminder that a business strategy heavily dependent on a single channel, especially one subject to political winds, carries inherent risk. Proactive diversification of revenue and capabilities is the only sustainable long-term solution. Following the release of the report, tribal advocacy groups and business leaders are expected to intensify their lobbying efforts in Washington to reverse or mitigate the impact of these policy changes. The business community will be closely watching for any potential legislative or judicial challenges, as well as monitoring how quickly the administration moves to fully implement its procurement consolidation plans.