NCAI Applauds TTAC Process and Affirmation of Tribal Sovereignty

WASHINGTON, D.C. – The National Congress of American Indians (NCAI) celebrates the U.S. Department of the Treasury (Treasury) and Internal Revenue Service’s announcement of final rules implementing the Tribal General Welfare Exclusion Act of 2014 and clarifying the federal tax treatment of Tribally-chartered business entities. Announced at the Treasury Tribal Advisory Committee (TTAC) public meeting, these regulations resolve decades of uncertainty that have constrained Tribal economic development. The announcement of the final rules marks regulatory progress and provides a model for how Tribal consultation can produce durable, sovereignty-affirming policy.

The Power of Meaningful Consultation

Established during the first Trump administration, TTAC created a formal mechanism for Tribal governments to directly advise the U.S. Department of the Treasury on tax policy. This advisory process and subsequent consultations honored the government-to-government relationship and enabled Tribal expertise to shape federal tax rules.

In October 2022, the TTAC Subcommittee on General Welfare Exclusion delivered foundational recommendations to the Treasury, establishing principles that guided the development of today's final rules. Treasury then conducted a series of Tribal consultations in the Fall of 2024 and reviewed the feedback received from these Tribal consultations, integrating it into the final regulations.

This sustained, multi-year collaborative process demonstrates that when federal agencies create dedicated advisory structures and genuinely incorporate Tribal input, policy outcomes reflect Tribal realities and respect Tribal sovereignty.

During the TTAC public meeting, TTAC Chair W. Ron Allen noted the significance: "Tribes had sought guidance on general welfare for a decade and asked to confirm the tax status of Tribal businesses for 30 years. The first Trump administration took action by standing up the TTAC, leading to substantial Tribal consultation. And the second Trump administration has gotten this across the finish line, supporting our effort to grow our economies and strengthen our communities on our own terms, without federal paternalism."

Sovereignty Affirmed Through Tax Clarity

Both final rules affirm fundamental principles of Tribal sovereignty:

General Welfare Exclusion: This final rule recognizes Tribal governments' inherent authority to determine community needs and design benefit programs accordingly. The federal government's role is limited to providing tax clarity — not prescribing how Tribal Nations exercise their governmental functions.

Tribally Chartered Business Entities: After three decades of ambiguity, Treasury confirms that wholly owned Tribally chartered entities are treated as arms of their Tribal governments for federal tax purposes. This clarification enables Tribal Nations to access capital markets on fair terms and invest strategically in economic development that generates governmental revenue.

A Model for Federal-Tribal Relations

NCAI President Mark Macarro emphasized the significance of this achievement at a meeting with Tribal Leaders on Friday: "Today's action shows that Tribal Nations and this administration can partner on mutually beneficial deregulation that will expand economic opportunities for Tribal Nations and Tribal citizens. We at NCAI applaud the Treasury for listening and working with Tribal Nations to continue to achieve this historic outcome. We look forward to implementation of this rule and continuing to work with the Treasury to find additional ways to further remove barriers that impede Tribal sovereignty."

These regulations — and the process that led to their development — demonstrate that authentic consultation and recognition of Tribal sovereignty produce solutions that strengthen the nation-to-nation relationship. NCAI encourages this administration to replicate the TTAC model across federal agencies to ensure Tribal voices shape policies affecting Indian Country. NCAI remains committed to advancing consultation structures that respect Tribal expertise and governmental authority.

Access the fact sheets and consultation summaries for these regulations, below:

U.S. Treasury GWE Fact Sheet | Tribal Entities Fact Sheet

GWE Consultation Summary | Tribal Entities Consultation Summary