SBA freeze threatens Alaska Native corporations' $9B federal footprint

Alaska Native regional corporations generated $9 billion in revenue from work outside Alaska in 2022, part of $13.5 billion in combined global revenue. But the federal contracting program that helped build that footprint now faces uncertainty that could reshape the state's economy.

The Small Business Administration's 8(a) Business Development Program, which authorized Alaska Native corporations to participate through congressional action in 1986, has become what one economist called an economic driver distinct from Alaska's traditional resource-extraction model. The 12 regional corporations employed about 50,000 people worldwide in 2022, Kevin Berry of McKinley Research Group told a Commonwealth North forum Thursday in Anchorage. About 8,000 to 9,000 of those jobs are based in Alaska.

Katherine Carlton, president of Chugach Alaska Corporation, said the corporation returned $66.8 million directly to shareholders and communities through distributions, education funding, health and wellness support, cultural programming, and economic development initiatives in 2025 alone. Berry said regional corporations disperse about $300 to $350 million each year through shareholder dividends, elder benefits, or other direct benefits.

Carlton described mission-critical federal work that illustrates the program's national security role. At NAS Fallon, home to Top Gun, Chugach operates and maintains the airfield systems that enable the Navy's premier tactical aviation training operations. At Fort Greely, Chugach helps sustain critical ballistic missile defense infrastructure in a remote Arctic environment.

The SBA has stalled new entity applications, preventing Alaska Native corporations from bringing new subsidiaries into the 8(a) program. Carlton said the freeze does not affect current-year revenue but threatens future contract capacity. "That's not something that's hurting this year, but then will certainly hurt in years to come and will have a freezing effect on the ability to compete for some of those contracts," she said.

Carlton emphasized that 8(a) participants already face rigorous accountability. "Native-owned 8(a) firms already operate under extensive oversight and compliance obligations," she said. "We must meet SBA's eligibility requirements, annual reporting requirements, financial reporting standards, subcontracting limitations, and community benefit reporting obligations."

The ANCSA Regional Association and the Native American Contractors Association are working with the administration to resolve the application freeze, Carlton said.