The Big Beautiful Bill (BBB) is one of the largest federal investment packages passed in recent years, touching nearly every sector of government, infrastructure, and public services. While the bill does not target Tribal Nations exclusively, its provisions could significantly impact Tribal communities, particularly in areas of housing, economic development, governance, human resources, and healthcare.

At Blue Stone Strategy Partners, we help Tribal leaders translate broad federal policy into meaningful, actionable strategies. Below, we break down the most relevant aspects of the BBB, both positive and negative, along with key recommendations for how Tribal Nations can plan ahead.

1. Increased Infrastructure and Capital Project Funding
The BBB allocates hundreds of billions of dollars to rebuild and modernize America’s physical and social infrastructure. For Tribal Nations, this means increased eligibility and access to funding for roads, housing, broadband, water systems, schools, and healthcare facilities. Programs like the Indian Housing Block Grant (IHBG), Tribal Transportation Program (TTP), and broadband development grants all received substantial boosts.

Why it matters: Many Tribal communities are already dealing with aging infrastructure, overcrowded homes, and unreliable connectivity. This influx of funding—if accessed early and strategically—can help address those gaps and spark long-term development.

2. Emphasis on Workforce Development
The bill directs major resources toward reskilling and training the workforce in high-demand areas such as construction, healthcare, clean energy, early childhood education, and caregiving. There is a particular emphasis on rural and underserved populations, with funding available for job training centers, apprenticeship programs, and youth career pipelines.

Why it matters: Tribal Nations can take advantage of this emphasis by investing in their local workforce, training citizens for in-demand jobs, and reducing dependency on outside contractors.

3. Flexibility in Healthcare Delivery
New provisions in the BBB expand telehealth, incentivize rural healthcare construction, and allow states to explore Medicaid coverage expansions through optional programs. Though not all mechanisms directly apply to Tribal clinics, they open new avenues for Tribes compacting under 638 or leasing under 105(l).

Why it matters: Tribal Nations can integrate modern healthcare systems with traditional care models, improve service access, and recapture federal reimbursement dollars through more strategic healthcare planning.

4. Expanded Eligibility for Housing and Community Block Grants
BBB simplifies access to capital for housing development by streamlining HUD Title VI and Section 184 programs. Directing more flexible dollars into Indian Country will help to address the dire housing shortage in Indian Country while also enhancing homeownership opportunities. The homeownership rate in Indian Country has actually declined in the past decade.

Why it matters: With better tools and more flexible funds, Tribes can develop new housing units, renovate existing stock, and plan for community infrastructure growth—especially if they already have land use plans.

5. Increased Viability of the Low-Income Housing Tax Credit Program (LIHTC)
The BBB includes several provisions of the Affordable Housing Credit Improvement Act. This will, according to the National Council of State Housing Agencies, represent the largest increase in LIHTC resources since Congress raised the caps on housing credits and private-activity bonds and indexed the caps for inflation 25 years ago.

The bill will:

• Increase the LIHTC volume cap for 9% properties by 12.5% for 2026 to 2029.

• Reduce the bond financing requirement to 25% for 4% housing credit properties placed in service after December 31, 2025, if the bonds are issued between December 31, 2025, and January 1, 2030.

• Allow state housing credit agencies to apply a basis boost of up to 30% for properties located in rural and Native American areas that are placed in service between those same dates.

Why it matters: Improved access to the LIHTC Program helps address historical housing barriers in Indian Country while also incentivizing development in Tribal areas. LIHTC has been a crucial tool for financing affordable housing in Tribal communities. However, its effectiveness was often limited by challenges like securing hard debt and the difficulty of building larger-scale projects due to low population density. Tribes and Tribally Designated Housing Entities (TDHEs) should find it easier to support projects that align with community development goals that were previously financially infeasible.

Key Challenges

1. Competitive Funding Mechanisms
Unlike ARPA or CARES, many BBB programs are not automatic distributions. Instead, they require competitive applications, detailed readiness documentation, and collaboration with state or regional agencies.

Challenge: Tribes that are understaffed or lack grant-writing capacity may miss out unless they prepare early or partner with experienced firms.

2. Increased Compliance and Reporting
To ensure accountability, the BBB includes stricter federal oversight of how funds are spent. This means Tribes must comply with new reporting timelines, measurable performance indicators, and sometimes unfamiliar data requirements.

Challenge: Tribes will need to invest in back-end systems (data tracking, financial software, HR portals) to avoid bottlenecks or audit risks.

3. Potential Gaps in Sovereign Inclusion
Some parts of the bill delegate implementation authority to states or regional entities—without requiring meaningful Tribal consultation.

Challenge: Tribes may need to assert their rights, build strategic relationships with state agencies, or advocate for inclusion through intergovernmental mechanisms.

Implementation Strategies by Sector

Housing: Planning for Growth and Readiness
Implementation Tips:

• Conduct or update a Tribal Housing Needs Assessment

• Identify shovel-ready projects with site control and environmental clearance

• Explore modular and prefab housing models

• Coordinate across Housing, Planning, and Finance Departments

Strategic Planning:

• Create a 5-year Housing Expansion Strategy

• Use BBB funding for mixed-use housing, education, and health developments

Economic Development: Positioning for Diversification
Implementation Tips:

• Align infrastructure (broadband, roads, energy) with diversification goals

• Use energy incentives to launch utility authorities or energy enterprises

• Create construction companies or public works teams

• Combine federal funds with tax credit financing

Strategic Planning:

• Conduct Market Feasibility Studies

• Update your Strategic Diversification Plan

Governance: Strengthening Structure and Oversight
Implementation Tips:

• Review Tribal codes, charters, and SOPs

• Strengthen compliance offices

• Plan for intergovernmental coordination

Strategic Planning:

• Host Leadership Alignment Workshops

• Adopt a Governance Scorecard

Human Resources: Building Capacity from Within
Implementation Tips:

• Conduct staffing and compensation reviews

• Create succession and mentorship plans

• Launch Tribal academies, internships, or certifications

Strategic Planning:

• Develop an HR Implementation Roadmap

• Align HR with new programs funded by BBB

Healthcare: Anchoring Services in Sovereignty
Implementation Tips:

• Optimize Medicaid billing via 638 or 105(l)

• Apply for capital to expand rural clinics

• Conduct health needs assessments

Strategic Planning:

• Create a Healthcare Business Plan

• Position clinics as anchors for jobs, wellness, and services

How Blue Stone Strategy Partners Can Help

At Blue Stone, we recommend a proactive approach to navigating the Big Beautiful Bill. Here’s how we help:

• Two-Day Strategic Work Sessions to align leadership and define priorities

• Funding Readiness Assessments to evaluate capacity

• Strategic Planning across Housing, Economic Development, Governance, HR, and Healthcare

• Grant Navigation Support for applications and compliance

• Implementation Partnering for staffing, evaluation, and program execution