Rural tribal governments that heavily depend on federal funding may see relatively more furloughs and service stoppage.
“If your budget is limited and so dependent on grants and government funding and that funding is cut, and that’s your only source of employment or services, that has a heavy impact to your tribal members for services and for employment,” Masten said. “So, you don’t have a choice but to lay people off because there are no reserves.”threatening
Drawdowns can’t be completed or initiated. A drawdown is when federal funding from government accounts are placed into a tribe’s account. “Indian Country is vulnerable anytime there’s any lack of government support. Because Indian Country relies so heavily on that relationship with the federal government, any type of government shutdown has a huge trickle-down effect to our communities,” said Chris James, executive director for the National Center on American Indian Enterprise Development.
“I wasn’t sure how long I could go out without having any income. Just like every American, if you don’t have income coming in, it makes you very nervous,” said James, Eastern Band of Cherokee. Tourism and gaming are two big industries for Indigenous nations. In the United States, tourism is the number one service export. Native American tourism is a $14 billion dollar industry. A quarter of Indigenous-owned businesses are in the hospitality sector. During a government shutdown, consumer spending drops.
“A lot of our small businesses might be in the process of getting a loan, or maybe they are relying on some other contracts from the federal government. If and when the government shutdown happens, all of that stops, the processing of the loan stops, the contracts stop,” James said. “There are some very high-level contracts that a lot of our Native businesses have through the Department of Defense, those may not have much disruption, but they may not get paid for a number of months.
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