Representatives Gwen Moore and David Schweikert Introduce Bipartisan Bill to Support Tribal Communities

Representatives Gwen Moore and David Schweikert Introduce Bipartisan Bill to Support Tribal Communities

Today, Representatives Gwen Moore (D-WI-04) and David Schweikert (R-AZ-01) introduced the Tribal Tax Investment and Reform Act of 2026, H.R. 7705, legislation to ensure that tribal governments can access tax programs and economic incentives on an equal basis with state and local governments.

"Tribal governments have faced unfair hurdles when trying to finance economic development projects and meet pressing needs in their communities. This legislation honors tribal sovereignty and our trust obligations by providing parity in the tax code between tribal governments and state and local governments. For example, we make it easier to support public infrastructure projects and build affordable housing like state and local governments can. I am proud to partner with my fellow Ways and Means colleague, Rep. David Schweikert, in advancing this important legislation." said Rep. Moore.

"Right now the tax code treats tribal governments like an afterthought instead of governments with the same basic responsibilities as states and counties. When tribes cannot use the same bond tools, housing credits and investment incentives everyone else takes for granted, projects stall and growth in Indian Country falls behind. This bill starts to clean that up so tribal governments can finance infrastructure, housing and private investment under clear, predictable rules. I am grateful to work with Representative Moore on a reform that respects tribal self-government and focuses on real economic opportunity instead of red tape," said Rep. Schweikert.

"The National Congress of American Indians (NCAI) applauds the introduction of the Tribal Tax and Investment Reform Act of 2025 in the U.S. House of Representatives, led by Congresswoman Gwen Moore and her bipartisan colleagues.

This legislation represents a crucial advancement in recognizing Tribal sovereignty within the federal tax code and ensuring Tribal governments have equitable access to tax credits, bonds, and other investment tools needed to strengthen Tribal self-determination and create jobs in Indian Country. Without these legislative changes, Tribal Nations face constraints that states and local governments do not. This Act would allow Tribal governments to access tax-exempt bond financing to fund projects and to issue certain private activity bonds to drive public-private investments, thereby generating regional growth and job creation throughout Indian Country. Tribal Nations have long called for amendments to bring parity to their governments, and recently renewed the call with Resolution #SEA-25-099 at NCAI's 82nd Annual Convention in November.

NCAI urges Congress to advance this long-overdue reform, honor federal trust responsibilities, and ensure Tribal Nations have the same opportunities as state and local governments to invest in their communities."

"NAFOA welcomes renewed momentum in Congress with the reintroduction of the Tribal Tax and Investment Reform Act in the House. Paired with its Senate companion, S.2022, this legislation updates the federal tax code to better respect Tribal sovereignty, correcting persistent inequities and creating new opportunities for Tribal economic development.

We thank Congresswoman Moore and Congressman Schweikert for their bipartisan leadership and urge Congress to act swiftly. With its passage, Tribal Nations will have greater capacity to foster sustainable growth and strengthen infrastructure in their communities, and also become important drivers of America's economic progress," said NAFOA Board President Rodney Butler, Chairman of the Mashantucket Pequot Tribal Nation.

The Tribal Tax and Investment Reform Act

This legislation amends the Internal Revenue Code to ensure that Indian tribal governments are treated consistent with state and local governments under federal law. Additionally, this bill removes undue barriers to tribal economic development. The federal government has trust obligations and treaty responsibilities to Native Americans and tribes, that are founded in the US government's duty to uphold tribal sovereignty and self-governance. With this bill, Congress can better address unique problems and challenges of Tribal Nations and empower the sovereignty of Indian tribes.

Key Provisions

• Treatment of Tribes as States with Respect to Bond Issuances and Excise Taxes. This section repeals the "essential government function" (EGF) test that limits the ability of Tribes to issue governmental bonds. This section also establishes private activity bond volume cap rules to enable tribal governments to issue private activity bonds for economic development purposes like state and local governments can. For Alaska Native Tribal Governments, a separate allocation is established. Additionally, this section places Tribes on equal footing with state and local governments with respect to select excise taxes, including manufacturing and communication excise taxes.
• Increased effectiveness of Tribal Low-Income Housing Tax Credits (LIHTC) in Indian Country. The LIHTC program provides tax incentives to developers to create affordable housing, but credits are often unavailable to tribes. This section modifies the definition of difficult development area to include an Indian area for the purposes of determining eligible basis.
• Creation of New Markets Tax Credit for tribal statistical areas. This section creates an annual $175 million New Markets Tax Credit for low-income Tribal communities and for projects that serve or employ Tribe members. NMTC Program attracts private capital to economically distressed communities by providing tax credits to investors. This section addresses the low rate of NMTC deployment in Indian Country through a credit set-aside.

Read more on the Tribal Tax and Investment Reform Act here.