Shutdown Exposed a Crisis in Indian Country Housing — Why Congress Must Modernize NAHASDA

The recent federal government shutdown highlighted how Tribal Nations across the United States suffer immediate and disproportionate harm when Washington grinds to a halt. While shutdowns hurt Americans broadly, Native communities — which depend on federal support for many essential services — experience particularly severe and destabilizing consequences.

A Housing System That Can't Withstand Political Gridlock

The impact was especially visible in housing. The shutdown did more than interrupt funding: construction schedules stalled, approvals were delayed, and Tribal leaders faced difficult choices that directly affected community safety and wellbeing. Even short interruptions in federal backing can lengthen project timelines and increase pressure on families waiting for safe, stable homes.

For Tribal Nations, whose housing programs are tied to the federal government’s sacred-trust and treaty responsibilities, the shutdown exposed a deeper problem: the system used to build and maintain housing is outdated, overly complex, and vulnerable to political impasse. That reality makes it clear why Congress must act.

Why NAHASDA Needs Reauthorization and Modernization

The Native American Housing Assistance and Self-Determination Act (NAHASDA), enacted in 1996, replaced a rigid federal model with one that respected Tribal self-determination and let Tribes design programs aligned with their priorities and cultures. That shift was significant. Yet the law has not kept pace with rising construction costs, intensified housing need, and increasingly cumbersome federal processes.

Too many projects are delayed by legacy procedures and repeated reviews long before construction begins. In many cases, modest rehabilitation work is slowed because multiple agencies — including the U.S. Department of Housing and Urban Development (HUD), the U.S. Environmental Protection Agency (EPA), and the U.S. Army Corps of Engineers — require separate environmental clearances for the same low-impact work. Some Tribal housing authorities also contend with federal procurement rules that demand excessive paperwork for routine purchases below $5,000.

Practical Fixes That Speed Construction and Reduce Costs

Updating NAHASDA could deliver straightforward, practical changes that make an immediate difference: permit a single, coordinated environmental review across agencies for low-impact projects; raise outdated procurement thresholds so routine purchases do not require disproportionate paperwork; and exempt truly low-impact repairs from duplicative review. Those reforms would shorten timelines, lower carrying costs, and allow Tribes to put homes into service faster.

Innovation, Resilience, And Workforce Housing

Modernization would also support innovation and resilience. Across Indian Country, Tribal Nations and housing authorities are developing modular homes, energy-efficient designs, and climate-resilient construction methods that withstand extreme weather and speed post-disaster recovery. Legacy rules often constrain the flexibility Tribes need to adopt new materials and designs; an updated statute would remove those barriers.

Tribes also need better tools to address growing workforce housing shortages. Schools, clinics, and public-safety departments struggle to recruit and retain staff when employees cannot find nearby housing. Clarifying that Tribes may use program funds for workforce and student housing would help stabilize essential services and strengthen local economies.

Unlocking Additional Capital And Expanding Opportunity

Many Native households fall into a gap: they earn too much to qualify for some programs but not enough to afford adequate housing. Modernization could expand pathways to homeownership and permit Tribes to count NAHASDA funds as matching dollars, unlocking additional federal and private capital and multiplying the impact of each housing dollar.

These are not merely technical fixes. They mean more homes built, fewer delays, stronger Tribal communities, and healthier families — and they help ensure the federal government honors its trust responsibilities in a manner consistent with today’s realities.

The Policy Opportunity

With NAHASDA approaching its 30th anniversary, Congress has a timely opportunity for bipartisan action. The Senate Committee on Indian Affairs, led by Chairwoman Lisa Murkowski (R–Alaska) and Vice Chairman Brian Schatz (D–Hawaii), has repeatedly supported efforts to strengthen Tribal housing and advance NAHASDA reauthorization. Their leadership — and cross-party recognition that the law works but needs updating — gives the 119th Congress a real chance to move forward.

The recent shutdown’s lesson is clear: Tribal Nations cannot depend on systems that break down during moments of political gridlock. Modernizing NAHASDA is more than revising an old statute — it is a necessary step to reinforce self-determination, improve housing security, and ensure Native families and communities have the foundation to thrive.

Rudy Soto is executive director of the National American Indian Housing Council.

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