National opinion: $500 million at risk for tribal programs in Arizona

Arizona’s economy is deeply connected to the success of its Tribal Nations. But moves in Washington D.C. to exclude Arizona’s Tribes from federal programs puts $500 million in economic potential — which would benefit the state’s economy — at risk. Job losses, business closures and reduced consumer spending would strain the state’s already stretched public funding and would result in increased taxes for everyone.

With 22 federally recognized Tribes across the state, Native enterprises play a crucial role in job creation, infrastructure development, and economic stability across Arizona. The state’s Tribal businesses generate revenue that supports investment in rural infrastructure, education, healthcare, and community services, sectors that often face underfunding and limited opportunities for development. This is done through participation in the Small Business Administration (SBA) through the 8(a) Program. These enterprises create jobs in construction, technology, environmental restoration, and government contracting, employing both Native and non-Native Arizonans.

How did this start? As many know, tribes hold the legal status as sovereign nations. The US signed treaties, rooted in the US Constitution, that have nothing to do with racial identity. Tribes are self-governing and maintain a government-to-government relationship with the United States. Importantly, this relationship has led to jobs, economic growth and dollars to states. Removing Tribes from federal programs would undermine efforts to promote self-sufficiency and economic resilience.

Beyond tribal communities, Arizona would experience significant economic losses if these preferences were removed. Tribal enterprises could lose over $222 million annually in federal contracting revenue, severely impacting Tribes that depend on these funds for essential services. Additionally, thousands of jobs would be at risk, further increasing already high unemployment rates.

The economic ripple effect would extend to non-Tribal businesses that collaborate with Tribal enterprises, causing further financial instability in rural and economically disadvantaged areas. Since Tribal businesses reinvest earnings into local economies, Arizona could see an overall economic contraction of over half a billion dollars. State and local governments would also feel the impact, with tax revenue losses estimated at over $50 million annually. This decline would strain public funding for education, healthcare, and infrastructure projects, forcing communities to rely more heavily on state and federal assistance programs. As a result, Arizona’s taxpayers would ultimately bear the financial burden of lost economic activity.

The SBA 8(a) program is one of the few federal mechanisms designed to address the unique economic challenges facing Tribes. Native communities have endured land dispossession, forced relocation, and policies aimed at erasing their cultural and economic foundations. These systemic barriers have left many Tribes with limited resources for development. Unlike other businesses that operate within well-established economic structures, Tribes must simultaneously build economies and govern their citizens. The SBA 8(a) program provides an essential tool for Tribes to generate revenue, create jobs, and invest in long-term community development.

Eliminating these preferences would mischaracterize Tribes’ political status as a racial classification, setting a dangerous precedent that could erode other federally recognized tribal rights. Such a move would invite legal challenges, forcing Tribes to divert time and resources away from economic development to defend their status in court. Weakening the SBA 8(a) program for Tribes would not only harm Native communities but also create broader instability in federal-tribal relations.

Given these economic realities, preserving the agreement the Tribes and their federal contractors have under the SBA 8(a) program is not just a tribal issue, it is an Arizona issue. This program is essential to upholding the federal government’s trust responsibilities, supporting tribal self-governance, and ensuring sustainable economic growth for Native communities and the entire state. Weakening or eliminating these provisions would harm not only Tribal economies but also Arizona’s broader financial well-being. Maintaining the SBA 8(a) program’s current structure is in the best interest of both Tribes and the state as a whole. We need to protect this program to ensure Arizona keeps its taxes low and economic opportunity high.