Native American Tribes have received good news regarding a House version of legislation that would even the tax code playing field and boost bond sales.
"The Tribal Tax and Investment Reform Act of 2026 removes unfair hurdles for Tribes to financing economic development projects in Indian Country," said Rep. Gwen Moore D- Wisc.
"The legislation honors tribal sovereignty and our trust obligations by providing parity in the tax code between Tribal governments and state and local governments."
Moore teamed up with Rep. David Schweikert, R-Ariz., on the bill which builds on a House bill introduced in the last Congress.
It has been referred to the Ways and Means Committee and dovetails with a Senate version introduced last
The two bills in various forms have been bouncing around in Congress since the second Obama administration.
Both bills are endorsed by NAFOA, which was founded as the Native American Finance Officers Association and represents over 170 Tribal nations in more than 28 states.
"NAFOA welcomes renewed momentum in Congress with the reintroduction," said Rodney Butler, NAFOA Board President and chairman of the Mashantucket Pequot Tribal Nation.
"Paired with its Senate companion, this legislation updates the federal tax code to better respect Tribal sovereignty, correcting persistent inequities and creating new opportunities for Tribal economic development."
The bills seek to nullify a problematic clause in the tax code that prevents the Tribes from issuing private activity bonds for anything not considered to be an "essential government function."
Removing the language would allow the Tribes to issue tax-exempt bonds the same way state and local governments do.
The provision would also establish volume caps for PABs and change the tax code to treat tribal government pension and employee benefit plans in the same way as state plans.
The bills would create an annual $175 million New Markets Tax Credit for low-income Tribal communities for projects that serve or employ Tribe members.
If passed and signed the bills would also increase access to the low-income housing tax credits in Indian Country.
LIHTCs got a boost from the One Big Beautiful Bill Act passed last year as a temporary 12% increase in the allocation of 9% credits became permanent.
The 4% credits now only requires 25% of affordable housing financing to come from PABs.
Housing advocates believe dropping the percentage to 25% from 50% will increase PAB efficiency and allow projects to carry less debt resulting in more projects. Some bond attorneys remain
The Tribes have been hard at work in lobbying efforts designed to put them on equal standing with the states.
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