HR-7396-119
Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
Sponsored by Sharice Davids (D-KS)
What it does
This bill would amend the Small Business Act to establish an Office of Native American Affairs within the Small Business Administration (SBA), led by an Assistant Administrator appointed by the SBA Administrator. The office would help Indian Tribes, Native Hawaiian Organizations, and tribally-owned small businesses access SBA entrepreneurship, contracting, and capital programs, including through grants and other financial assistance, and would submit annual reports to Congress. The authority for the office would terminate 7 years after enactment.
Who benefits
Small business owners who are members of Indian Tribes or Native Hawaiian Organizations; tribal governments and Native Hawaiian organizations seeking federal contracting or capital access; nonprofit organizations governed by tribal or Native Hawaiian members that receive SBA grants or cooperative agreements; communities in Indian country that may see increased economic development activity.
Who is hurt
No group is directly harmed by the bill's core provisions, though taxpayers would fund the new office's operations and grants, and other SBA offices or constituencies could see relatively reduced staff attention or discretionary funding if agency resources are redirected toward this new office.
Supporters argue
Supporters argue that Native American-owned businesses and tribal enterprises face persistent barriers to accessing federal contracting and capital programs due to jurisdictional complexity, geographic isolation, and lack of culturally tailored outreach, and that a dedicated SBA office with a leader experienced in Native American cultures would improve program uptake. They contend the annual reporting requirement and 7-year sunset ensure accountability and allow Congress to evaluate results before deciding whether to reauthorize.
Opponents argue
Opponents argue that creating a new dedicated office adds bureaucratic layers and administrative costs to the SBA without a demonstrated funding commitment, since the bill uses permissive "may be established" language rather than mandating the office and its budget. They contend existing SBA programs like the 8(a) Business Development Program and tribal set-aside contracting authorities already serve this population, and that targeted outreach could be achieved through existing offices rather than a new organizational structure.
Constitutional context
Congress has broad authority under Article I, Section 8 to establish and structure executive agencies and their subdivisions, and tribal-specific economic development programs are grounded in Congress's plenary authority over Indian affairs recognized in cases like Morton v. Mancari (1974), which upheld employment preferences for members of federally recognized tribes as a political rather than racial classification. This bill raises no significant equal protection question because assistance is tied to tribal political status rather than race, consistent with that framework.
Checks and balances
Congress creates the statutory office and its reporting requirement, the executive branch (SBA Administrator) appoints and directs the Assistant Administrator, and the 7-year sunset gives Congress a built-in checkpoint to reassess or terminate the program.
Historical precedent
The SBA has previously established similar dedicated offices, such as the Office of Native American Affairs' predecessor programs and the Office of Veterans Business Development, to provide targeted outreach to specific populations.