Source: Fortune
Summary
Tribal businesses in the US, particularly in rural areas, are facing significant economic challenges due to the Trump administration’s hostility towards programs facilitating contracting opportunities. The 8(a) program, which provides federal contracting opportunities for small businesses, has seen a 40% decline in obligations to tribal businesses. This decline has severe implications for tribal economies, which are heavily reliant on federal contracting revenue. The loss of these contracts can have a ripple effect on local communities, affecting not only tribal citizens but also non-tribal employees and businesses.
Our Reading
The numbers tell one story. The 8(a) program, once a stable revenue stream for tribal businesses, has seen a 40% decline in obligations. The Trump administration’s attack on targeted small business contracting has left tribal entities caught up in the crossfire. Federal contracting revenue for tribes grew on average 41.6% a year between 1988 and 2021, compared to 16.8% annual growth in gaming revenues. The loss of these contracts can be existential for tribal businesses and the economies they support.
Author: Evan Null
