- Details
- By Pete Upton
Guest Opinion. Twenty-three years ago, Congress confronted a hard truth: Indian Country faced systemic financial exclusion — and Native-led solutions were the key to change. At a Senate hearing prompted by The Native American Lending Study, witnesses like Elsie Meeks of First Nations Oweesta Corporation and Roger Boyd of the U.S. Treasury’s CDFI Fund called for a new federal commitment to Native-controlled lenders.
That call led to the creation of the Native American CDFI Assistance (NACA) program — the only federal funding stream tailored to the unique challenges of lending in Indian Country. And it worked.
Today, 69 federally certified Native CDFIs — and dozens more in development — serve some of the most economically underserved communities in the United States. These Native-led institutions turn modest amounts of federal seed capital into real results: small business growth, homeownership, credit access and culturally grounded financial coaching. They don’t just fill gaps left by traditional banks — they rewrite the rules to serve communities left out of the mainstream financial system for generations.
Yet this proven model now faces an existential threat.
The Trump administration plans to claw back $24 million — or 86 percent — of the NACA funds already appropriated for FY 2025. Worse, the president’s FY 2026 budget would scrap NACA altogether. Native CDFIs would be pushed into a new $100 million rural funding pool, where they would go head‑to‑head with CDFIs holding hundreds of millions—even approaching $1 billion—on their balance sheets and unburdened by the trust‑land, jurisdictional, and distance barriers Native lenders navigate daily. On paper, Native CDFIs might qualify. In practice, they wouldn’t stand much of a chance.
We’ve seen this movie before. Under the New Markets Tax Credit program, Native‑led groups captured less than 0.004 percent of total awards. That’s not reform — that’s erasure.
The irony of all this is hard to miss. Native CDFIs align perfectly with the Trump administration’s stated goals. Treasury and the CDFI Fund have repeatedly described their mission as providing “seed capital” to community lenders. The administration insists the industry has “matured” beyond that need.
That is certainly not true for Native CDFIs. Most manage portfolios under $6 million with fewer than five employees and total assets below $20 million. They are still scaling to meet surging demand.
And the demand is real. According to a 2024 study by the Philadelphia Federal Reserve, 46.4% of Indian Country remains a banking desert — nearly twelve times the national rate. In response, Native CDFIs have stepped in where traditional finance has failed.
They are not “woke.” They are not charities. They are not window dressing. Native CDFIs are fiscally disciplined, community-rooted lenders that uphold the federal government’s trust and treaty responsibilities while delivering measurable results.
Lawmakers on both sides of the aisle recognize what Native CDFIs do and how they do it. In a 2025 Senate Banking Committee hearing, Senator Cynthia Lummis (R-WY) put it plainly: “Native CDFIs are important to fixing the housing crisis in Indian Country. They are a way for Tribes to attract capital that leave Tribal members in control. And in Indian Country, it’s very important that Tribal members be in control.”
Congress has consistently expressed bipartisan support for Native CDFIs. Now is the time to turn those words into action.
We urge Congress to protect NACA and commit to a $50 million annual seed-capital fund for Native CDFIs. That investment would allow Native lenders to scale, meet local needs, and close persistent capital gaps — on Native terms.
We don’t need a new solution. We need to fund the one that’s already working.
Every federal dollar invested in a Native CDFI is multiplied — on average, generating $8 in matching private, philanthropic, or state capital. That leverage turns modest grants into millions of dollars for new housing, thriving Native-owned businesses, and living-wage jobs in rural and urban Native communities. Ending NACA’s seed capital support now wouldn’t just slow Native CDFIs — it would undermine co-investment strategies that rely on a consistent federal baseline.
The fiscal debate in Washington is moving fast. As budget negotiations unfold, Congress must protect Native CDFI funding and lock in a $50 million commitment before the next vote. Doing so would strengthen rural economies, uphold tribal sovereignty, and fuel the next generation of Native-led economic growth.
Pete Upton is the CEO of the Native CDFI Network and Executive Director of Native360 Loan Fund. He is an enrolled member of the Ponca Tribe of Nebraska.
Help us tell the stories that could save Native languages and food traditions
At a critical moment for Indian Country, Native News Online is embarking on our most ambitious reporting project yet: "Cultivating Culture," a three-year investigation into two forces shaping Native community survival—food sovereignty and language revitalization.
The devastating impact of COVID-19 accelerated the loss of Native elders and with them, irreplaceable cultural knowledge. Yet across tribal communities, innovative leaders are fighting back, reclaiming traditional food systems and breathing new life into Native languages. These aren't just cultural preservation efforts—they're powerful pathways to community health, healing, and resilience.
Our dedicated reporting team will spend three years documenting these stories through on-the-ground reporting in 18 tribal communities, producing over 200 in-depth stories, 18 podcast episodes, and multimedia content that amplifies Indigenous voices. We'll show policymakers, funders, and allies how cultural restoration directly impacts physical and mental wellness while celebrating successful models of sovereignty and self-determination.
This isn't corporate media parachuting into Indian Country for a quick story. This is sustained, relationship-based journalism by Native reporters who understand these communities. It's "Warrior Journalism"—fearless reporting that serves the 5.5 million readers who depend on us for news that mainstream media often ignores.
We need your help right now. While we've secured partial funding, we're still $450,000 short of our three-year budget. Our immediate goal is $25,000 this month to keep this critical work moving forward—funding reporter salaries, travel to remote communities, photography, and the deep reporting these stories deserve.
Every dollar directly supports Indigenous journalists telling Indigenous stories. Whether it's $5 or $50, your contribution ensures these vital narratives of resilience, innovation, and hope don't disappear into silence.
The stakes couldn't be higher. Native languages are being lost at an alarming rate. Food insecurity plagues many tribal communities. But solutions are emerging, and these stories need to be told.
Support independent Native journalism. Fund the stories that matter.
Levi Rickert (Potawatomi), Editor & Publisher