“Uncertainty creates uneasiness. Employees don’t know what’s going to happen, families don’t know their financial security. We need to ensure we are prepared and exercising sovereignty in a way that makes us independent of federal uncertainty.”

– Susan Masten

For decades, many Tribal Nations have traveled a familiar road: the Federal Funding Highway. This highway has been vital, connecting communities to critical services in healthcare, housing, infrastructure, and education. But like any major thoroughfare, it wasn’t built with Tribal Sovereignty in mind. And while it’s provided access and opportunity, it’s also come with speed limits, toll booths, and roadblocks not set by Tribal Governments themselves.

It may be time to consider an exit ramp.

Not an abandonment of the highway; it will always be there when needed. Instead, a deliberate turn toward a path designed by and for the Tribe. A route paved with Tribal Priorities, sustained by self-generated revenue, and navigated with cultural clarity. The move toward economic self-sufficiency is not a rejection of federal support. It is the next evolution of sovereignty.

Why an Exit Strategy Matters

1. Volatility in Federal Funding
Political shifts often bring budget cuts or delays in disbursement. Tribes depending heavily on grants can find their plans suddenly stalled. A 2023 report by the U.S. Commission on Civil Rights noted that Tribal Programs are consistently underfunded relative to need.

2. Historical Constraints on Self-Governance
Since the early 20th century, federal support has often been tied to restrictions. The Indian Reorganization Act of 1934 encouraged Tribal Governance, but still funneled resources through federal agencies. Many Tribes today are still navigating outdated frameworks designed to control, not empower, Tribal Economies.

3. Strategic Sovereignty
By creating your own sources of revenue—through enterprises, taxation, or innovative partnerships, your community gains the ability to set its own priorities and timelines without waiting for grant approvals or compliance reviews.

What an Exit Strategy Can Look Like

Tribes across the country are charting new paths away from grant dependency. These strategies don’t all look the same—and they shouldn’t. Each reflects a community’s geography, governance, capacity, and culture. Here are some of the most powerful tools Tribal Nations are using to take their own exit ramp from the Federal Funding Highway:

1. Strengthen and Maximize Your Primary Revenue Driver 

Before pursuing new opportunities, it’s essential to ensure your current core business is operating at its highest potential. Whether it’s gaming, retail, energy, or another industry, your primary enterprise should be the financial foundation that enables broader economic goals.

• Reviewing profit margins and adjusting operations for greater efficiency

• Identifying underperforming areas that can be optimized or restructured

• Leveraging marketing, pricing, or customer service improvements to increase revenue

• Investing in staff training and technology upgrades that enhance performance

Example: The Choctaw Nation of Oklahoma regularly reinvests in its gaming and hospitality operations, using data-driven strategies to improve guest experience, increase visitation, and drive higher profitability, before expanding into new sectors.

Key Takeaway: A strong primary revenue driver gives your Tribe financial stability, flexibility, and the ability to reinvest in diversification with confidence. Focus on optimizing what’s already working before spreading resources thin.

2. Diversify Your Revenue Base

Federal grants support services, not economic engines. To create lasting financial independence, Tribes can expand into revenue-generating ventures. This could include:

• Operating gas stations, convenience stores, and hospitality enterprises
• Entering sectors like construction, cannabis, technology, or manufacturing
• Owning and leasing commercial real estate

Example: The Citizen Potawatomi Nation has built a wide-ranging economic portfolio including a bank and commercial property that funds many services traditionally supported by federal programs.

Key Takeaway: Diversified income streams allow your Tribe to withstand economic uncertainty while directing funds according to local priorities.

3. Leverage Government Contracting

Federal agencies spend billions each year on services Tribes are well-equipped to provide, especially in areas like construction, IT, and logistics. Certification programs such as SBA 8(a) open doors to contracts that generate income rather than dependency.

Example: Cherokee Nation Businesses manages multiple 8(a) subsidiaries providing services across defense, health, and professional sectors, bringing in billions in revenue and creating local jobs.

Key Takeaway: Government contracting turns the relationship with D.C. from one of requestor to provider. It reinforces sovereignty and creates revenue independence.

4. Build Infrastructure That Pays Back

Grants often help build infrastructure, but the best investments return value for decades. Whether through reduced costs or recurring income, these assets can become part of the Tribe’s long-term financial engine.

Examples include:

• Renewable energy systems that generate and sell power

• Tribally owned broadband networks

• Health clinics that generate Medicaid reimbursements

Example: Blue Lake Rancheria built microgrids to reduce reliance on the state’s energy grid and created a stable, revenue-generating power solution for the Tribe.

Key Takeaway: Infrastructure does not have to be a sunk cost. It can be a source of strength and savings.

5. Establish a Community Development Fund

Enterprise revenues can be pooled into a sovereign-controlled development fund that invests back into the community through:

• Housing initiatives

• Entrepreneur microloans

• Emergency services

• Education and training

Example: Sealaska Corporation uses its shareholder fund to support scholarships, language revitalization, and new investments.

Key Takeaway: You do not need to rely on outside lenders or wait for federal timelines when your own development fund is in place.

6. Form Regional Coalitions

Tribal collaboration multiplies strength. By working across Nations, Tribes can jointly pursue:

• Shared transportation networks or energy cooperatives

• Collective bargaining with vendors or healthcare providers

• Federally incentivized intergovernmental agreements

Example: The Inter-Tribal Council of Arizona has helped its member Tribes coordinate policy, health programs, and infrastructure development. Each member becomes more resilient than they would be alone.

Key Takeaway: You can go faster alone, but you go further when you go together.

7. Expand Tribal Taxation Authority

Taxing Tribal Commerce such as fuel, tobacco, cannabis, lodging, and tourism can create recurring revenue streams that are not subject to federal cycles.

Options Include:

• Hotel occupancy or sales taxes

• Cannabis excise taxes

• Business licensing fees

• Utility user fees

Example: 

Blue Stone has identified 15 sovereign tax opportunities that Tribes should consider as part of their Tribal Taxation Authority expansion. The Tulalip Tribes use their taxation authority on retail sales within their reservation, generating income to reinvest in services.

Key Takeaway: Tribal Taxation is sovereignty in action. It formalizes governance and captures local economic activity for the benefit of citizens.

8. Develop Tribal Land for Long-Term Lease

Land development does not always mean giving up ownership. Strategic long-term leasing can provide revenue while protecting land rights and cultural heritage.

Examples:

• Leasing for clean energy such as solar farms or wind turbines

• Film industry staging sites or cultural tourism zones

• Data centers or remote tech infrastructure

Example: The Tohono O’odham Nation leased land to solar developers for large-scale renewable energy projects that generate reliable payments.

Key Takeaway: Your land has value beyond its surface. Leasing it strategically can provide sustainable income without sacrificing ownership.

9. Establish Financial Literacy and Wealth Building Programs

Economic independence must be built from the bottom up. Educating citizens on personal finance, entrepreneurship, and investing creates generational wealth and reduces reliance on government aid.

Program Ideas:

• Youth financial literacy camps

• Entrepreneurial support programs 

• Business planning and mentorship for Tribal Members

• Credit repair and first-time homebuyer workshops

Example: Navajo Nation’s Diné College offers small business development training for entrepreneurs, helping them qualify for loans and launch local ventures.

Key Takeaway: Sovereignty is strongest when every citizen is economically empowered.

10. Invest in Workforce Development

A self-sufficient Tribe needs its own talent pipeline. Building career paths in healthcare, IT, renewable energy, and governance not only meets internal staffing needs but also supports community growth.

Program Types:

• Apprenticeships in Tribal Enterprises

• Certifications for in-demand skills

• Partnerships with Tribal Colleges or regional trade schools

Example: The Makah Tribe created a Tribal Workforce development plan focused on marine science and clean energy jobs tailored to their coastal geography.

Key Takeaway: You cannot build a sovereign economy without a skilled, self-sustaining workforce.

The Path Forward

The federal funding highway isn’t going away. However, if your entire journey is confined to its lanes, your destination is always dictated by someone else’s roadmap. Sovereignty means building the flexibility to choose your direction, set your own pace, and design a future that outlasts election cycles.

Blue Stone Strategy Partners works alongside Tribal Nations to develop long-term strategies that reduce grant dependency and reinforce Tribal control. If your leadership is ready to map out your exit ramp, whether it is a full-scale strategy or a single bold project, we’re ready to walk that road with you.