Opening Remarks of U.S. Rep. Nick J. Rahall, II
Chairman, Committee on Natural Resources
Oversight Hearing on "Diversifying Native Economies"
September 19, 2007

At the beginning of this Congress, I stated that the Committee would focus on economic development options and other issues of importance to Native America.  The Committee is meeting to hold the first in a series of hearings on Diversifying Native Economies. 

Today's hearing will focus on the Small Business Administration's Native 8(a) program designed to provide business opportunities to Indian tribes and Alaska Native corporations.

With a 26 percent poverty rate in Indian country and unemployment rates as high as 80 percent, the need for economic development in Native communities is self-evident.  Some Native governments have made great strides in combating this situation while others continue to struggle.  Likewise, some Federal programs have worked better than others. 

The Native 8(a) program demonstrates Congress' commitment to promoting tribal self-determination and self-sufficiency.  The program reflects the unique character of Native governments and their responsibility to provide governmental services and other benefits to their members.  Testimony today will discuss the benefits that the Native 8(a) program has brought to Native America. 

Data shows that Tribal and Alaska Native Corporations received less than 1 percent of the $377.5 billion awarded through Federal procurement contracts. Of the $145 billion awarded through sole source contracts, Tribal and Alaska Native Corporations only received approximately 1.4 percent of that amount.

At the same time, the General Accountability Office issued a report last year highlighting the need for better oversight and administration of the program.  I look forward to hearing testimony on how this program affects Native communities and how it can be improved to ensure that it is working as intended.

Congress needs to carefully examine the barriers and challenges facing Native governments, as well as which programs are working and why.  In doing so, we must ensure that Federal programs designed to assist Native governments in addressing their needs are fair and working appropriately.  Thank you.