Hearings to examine the Small Business Administration Native 8(a) program

Tribal Programs and FundingSenate Indian Affairs · 2026-02-10 · 119th Congress
The Senate Committee on Indian Affairs convened this oversight hearing to examine the Small Business Administration's Native 8(a) program, which allows Alaska Native corporations, tribes, and Native Hawaiian organizations to secure federal contracts and reinvest earnings into their communities. Begins at 0:19:09
Transcript
Highlights

Title

Oversight of the SBA Native 8(a) Program and Tribal Economic Impact

Purpose

The Senate Committee on Indian Affairs convened this oversight hearing to examine the Small Business Administration's Native 8(a) program, which allows Alaska Native corporations, tribes, and Native Hawaiian organizations to secure federal contracts and reinvest earnings into their communities. Chair Murkowski said the hearing was prompted by recent criticism characterizing the program as illegitimate DEI or fraud-prone, and witnesses from Cherokee Nation, Chugach Alaska Corporation, Bristol Bay Native Corporation, and the Native Hawaiian Organization Association testified on community benefits, oversight, and compliance. Begins at0:19:09

Who spoke

Chair Lisa Murkowski (R-AK)0:19:09: Opened by rejecting the characterization of 8(a) as fraud0:19:09 or DEI, citing an SBA administrator letter confirming this0:20:25, and explained the program's constitutional and historical basis under ANCSA0:21:180:23:48; later probed compliance safeguards and subcontracting rules with witnesses1:28:341:37:25.

Sen. Brian Schatz (D-HI), Vice Chair0:25:44: Welcomed Cariann Ah Loo and said the 8(a) program stems from trust/treaty obligations, not DEI0:26:36, noting NHOA invested over $25 million into the Native Hawaiian community in 20240:27:04; later pressed for standardized, more robust community-benefit data reporting1:02:471:04:18.

Sen. Markwayne Mullin (R-OK)0:28:26: Introduced Chief Hoskin, describing Cherokee Federal's work across 60+ federal agencies and the Golden Dome missile defense program0:28:540:29:17, and shared a personal anecdote about Cherokee Nation quickly replacing a broken-down school bus0:31:06; later asked about the 37% profit-sharing requirement0:55:08.

Chief Chuck Hoskin (Cherokee Nation)0:35:07: Testified the 8(a) program is not a handout or DEI initiative but rooted in the Indian Commerce Clause and sovereign-to-sovereign relationship0:36:210:36:46; said Cherokee Nation businesses must return a minimum 37% of net income to the tribe0:37:38, totaling $364 million over the last decade0:38:37, and warned that rhetoric like "fraud magnet" is having a chilling effect0:39:39.

Katherine Carlton, President, Chugach Alaska Corporation0:40:17: Described Chugach's recovery from the Exxon Valdez oil spill via 8(a) contracting0:41:41 and $32.6 million in community/shareholder benefits in 20240:42:05, with member companies delivering $1.3 billion in community benefits nationwide0:42:35; said 8(a) awards often execute in 30-60 days versus 12-18 months for traditional procurement0:43:16.

Polly Watson, VP of Operations, Bristol Bay Native Corporation0:45:13: Described BBNC's 12,000 shareholders and mentorship of village corporations to become federal contractors0:47:29, and a mobile DMV partnership serving 544 rural residents across seven villages0:48:01; later detailed strict subcontracting limitations and compliance oversight1:37:51.

Cariann Ah Loo, President, Native Hawaiian Organization Association0:49:59: Said NHO reinvestment into education, health care, and cultural preservation is a condition of program participation, not optional0:51:20, citing $100 million directed into the Native Hawaiian community from 2018-20240:52:36; confirmed SBA's reporting requirements are "slim" compared to what NHOs voluntarily track1:03:12.

Sen. Catherine Cortez Masto (D-NV)1:13:43: Said she is worried the administration's aggressive suspensions of 8(a) firms will chill legitimate tribal business participation and argued fraud concerns should go through Inspector General investigations instead1:14:13; noted nearly 2,000 Native American-owned firms operate in Nevada1:15:15.

Sen. Steve Daines (R-MT)1:18:36: Highlighted Montana tribal 8(a) firms SM K Technologies and Buffalo Horse Inc. supporting security and intelligence work1:19:07; asked Chief Hoskin what the program has meant for Cherokee Nation, drawing out the "transformational" 14,000-employee response1:21:571:22:37.

Key moments

Chair Murkowski entered into the record a letter from the SBA Administrator confirming the Native 8(a) program is not DEI0:20:25.

Chief Hoskin said Cherokee Nation's contracting arm returned $364 million to the tribal general fund over the last decade, funding scholarships for 5,000 kids and $40 million in new housing on top of the 37% statutory requirement0:56:35.

Chief Hoskin objected to language like "fraud magnet" and "crooks and swindlers" used in letters to federal agencies, saying it has caused contracting officers to question whether Cherokee Federal is under investigation0:39:111:17:06.

Sen. Schatz and Ms. Ah Loo established that SBA's community-benefit reporting requirements are minimal and that NHOs already collect more detailed data voluntarily since 2018, suggesting a path to standardized reporting1:03:121:04:45.

Ms. Carlton said 8(a) sole-source awards typically execute in 30-60 days compared to 12-18 months for traditional procurement, while still requiring price and qualification review0:43:16.

Sen. Cortez Masto argued that fraud allegations should be handled through Inspector General investigations rather than "haphazard suspending" of companies from the program1:14:45.

Ms. Watson detailed the rigorous process behind "sole source" 8(a) contracts, including detailed technical/pricing proposals, capability briefings, and SBA approval, countering claims the process is an easy shortcut1:30:52.

Chair Murkowski used cost examples from Napakiak, Alaska — a sheet of plywood at $140 and a 2x4 at $17 versus $2.99 at Home Depot — to illustrate that dividend cash flowing into villages offsets extreme costs of living rather than enriching individuals1:25:241:25:55.

Sen. Schatz noted federal agencies choose to use 8(a) contracts not out of obligation but because they provide the best value and flexibility compared to large IDIQ vehicles1:36:20.

Chief Hoskin said Cherokee Nation federal contracting funds helped rapidly scale up law enforcement following the McGirt decision's jurisdictional impacts0:58:04.

Metadata

CommitteeSenate Indian Affairs
Chamber / CongressSenate · 119th Congress
Date2026-02-10
TypeMeeting
Witnesses
(none listed in event metadata)
Videosenate-isvp
Transcript207 caption blocks · 9,874 words · 1:41:25 runtime
EventCongress.gov 337961