Beyond State and Local: How the Survey of Native Nations is Unlocking the Unique Economics of Tribal Sovereignty 

The expanded Survey of Native Nations, a pioneering initiative by the Federal Reserve’s Center for Indian Country Development, is addressing a critical data gap by providing the first comprehensive look into the unique financial structures of tribal governments, revealing that their treasuries operate fundamentally differently from state and local entities due to a heavy reliance on federal transfers (averaging 71.3% of revenue) rooted in the U.S. government’s trust responsibility, significantly limited tax revenue (just 1.7%) due to legal and practical constraints, and a vital dependence on revenue from tribal enterprises (15.8%) to fund community services, thereby empowering tribal leaders with benchmark data for decision-making while honoring data sovereignty and highlighting their significant role as regional economic contributor.

Beyond State and Local: How the Survey of Native Nations is Unlocking the Unique Economics of Tribal Sovereignty 

For decades, the landscape of American public finance has had a glaring blind spot: the treasuries of Native Nations. While state and local governments have long benefited from comprehensive benchmark data through the U.S. Census, tribal governments have operated in a comparative vacuum. Their unique economic realities, revenue challenges, and community contributions have been largely absent from the national conversation. 

Now, a groundbreaking initiative is changing that. The Federal Reserve’s Center for Indian Country Development (CICD) is expanding its Survey of Native Nations, a first-of-its-kind collaborative project that is finally shedding light on the distinct financial architecture of Tribal Nations. This isn’t just about collecting numbers; it’s about empowering tribal leaders with data to make informed decisions and educating a wider audience on the profound economic role these governments play. 

Why Tribal Finance Data is a Missing Piece of the American Puzzle 

Every government, from a small town to a massive state, relies on public finance data. It answers critical questions: How do we compare to our peers? Where are our revenue streams strong or vulnerable? Are we allocating resources effectively for services like roads, schools, and public safety? 

For tribal governments, these questions are even more pressing. They are sovereign nations tasked with providing a vast array of services—from healthcare and education to housing and infrastructure—often in regions with profound economic challenges. Yet, their tools for generating revenue are fundamentally different from those of state or county governments. 

The Survey of Native Nations was born from a direct need expressed by tribal leaders across the country. They needed quality, comparable data to navigate their distinctive opportunities and challenges. But this survey is built on a revolutionary principle: tribal data sovereignty. 

Unlike traditional data collection, the CICD acts not as an owner of the data, but as a steward. Tribes retain full ownership and control over their information. They choose what to share, who has access, and how it is used. This respectful, government-to-government approach is crucial for building trust and ensuring participation. 

“Survey of Native Nations leadership has clearly communicated that CICD is a steward of the data—underscoring that they do not own the data. The data belong to the tribes,” said Amber Schulz-Oliver of the Affiliated Tribes of Northwest Indians (ATNI), a key partner in the project. 

A Snapshot from the Pilot: What the Data Reveals 

The recently concluded second phase of the pilot included 11 tribes from the Pacific Northwest to the East Coast. While not yet a nationally representative sample, the initial findings paint a powerful picture of how tribal treasuries operate differently. 

The data reveals three critical themes that distinguish tribal public finance: 

1. The Revenue Mix Reflects the Federal Trust Responsibility The most striking difference lies in the composition of revenue. For the participating tribes, an overwhelming 71.3% of revenue, on average, came from intergovernmental transfers—money from other government entities. For state governments, that figure is 38.6%, and for local governments, it’s just 26.2%.

But the source of these transfers tells a deeper story. For tribes, 97.3% of these transfers came directly from the federal government. This is a direct reflection of the federal government’s legally binding “trust responsibility,” established through treaties, laws, and executive orders. In exchange for vast cessions of land and resources, the U.S. government committed to providing services and support to tribal nations. 

As Chairman Michael Dolson of the Confederated Salish and Kootenai Tribes explains, “Federal investments rooted in the trust responsibility enable tribes to provide critical services like health, education, and law enforcement in economically challenged environments.” 

2. Taxation Plays a Limited Role, by Necessity and Design While taxes are the lifeblood of state and local governments—comprising 44.8% and 42.2% of their revenue, respectively—they accounted for a mere 1.7% of revenue for the participating tribal governments.

This isn’t an accident. It’s the result of complex legal and practical constraints: 

• Dual Taxation: The risk of both a tribe and a state taxing the same transaction can stifle economic activity, leading tribes to sometimes forgo taxation to attract business. 

• Limited Authority: Tribal tax authority over non-members on reservation land can be legally restricted. 

• Administrative Hurdles: Building the capacity to administer a robust tax system is a significant challenge. 

Where tribes do levy taxes, sales taxes on goods like tobacco and fuel are most common. Notably, very few participating tribes reported collecting property or income taxes. To navigate this complex space, many tribes establish tax compacts with states to create clear rules and revenue-sharing agreements. 

3. Tribal Enterprises are Vital Engines of Community Investment With limited tax revenue, how do tribes fund the flexible, self-determined investments their communities need? The answer often lies in tribally owned enterprises.

On average, 15.8% of tribal revenue came from transfers from their own businesses. These enterprises—spanning gaming, hospitality, retail, energy, and manufacturing—are not purely profit-driven. Their core mission is to give back to the community. They create jobs, fund essential services, and drive economic development in regions that are often overlooked by private investors. 

“Tribal governments don’t necessarily have access to the same finance tools as local and state governments do,” said Chairman Gerald Gray of the Little Shell Tribe of Chippewa Indians. “For that reason, it’s been important for tribes to explore access to new markets and opportunities to develop tribally owned businesses whose profits reinforce tribal governance.” 

More Than Services: The Regional Impact of Tribal Governments 

The story of tribal finance isn’t just about internal operations; it’s about regional impact. The survey data confirms that tribal governments are significant contributors to their local and regional economies. 

• Services for All: Over a third of participating tribes reported providing services that benefit non-tribal citizens, such as police and fire protection, road maintenance, and water systems. One tribe estimated that 30-39% of its expenditures benefited people outside its enrolled citizenry. 

• Economic Anchors: Through their enterprises and government operations, tribes are major employers and purchasers of goods and services, creating ripple effects throughout their regions. Previous CICD research has already documented the massive economic impact of tribal gaming and federal contracting on local economies. 

The Future of Data-Driven Tribal Governance 

The expansion of the Survey of Native Nations to all tribes across the country marks a turning point. For the first time, tribal leaders can access a secure portal, submit their data on their own terms, and receive a confidential benchmark report comparing their finances to anonymized, aggregate data from other tribes as well as state and local governments in their area. 

This is a tool for empowerment. It allows tribal leaders to: 

• Advocate more effectively for federal resources with hard data. 

• Make strategic decisions about economic development and enterprise investment. 

• Communicate their financial story and community impact to their citizens and neighbors. 

“The Survey of Native Nations gives tribes useful public finance data not only about state and local governments, but for the first time on tribal governments in aggregate,” said Chairman Gray. 

As participation grows, so will the depth of understanding. This data is more than just statistics; it’s a key to unlocking a more nuanced and accurate understanding of American economics—one that fully includes the sovereign nations that were here long before state and local governments ever existed. By honoring data sovereignty and fostering collaboration, the Survey of Native Nations is finally providing a clear window into the unique and vital world of tribal public finance.