House panel backs Alaska Native 8A program support resolution

The House Resources Committee approved Tuesday a resolution supporting Alaska Native corporations' continued participation in federal small business contracting programs that have generated billions in revenue for the state.

House Joint Resolution 44 affirms Alaska's support for Alaska Native corporations and tribal entities to keep participating in the U.S. Small Business Administration's 8(a) business development program. The federal program helps socially and economically disadvantaged businesses access federal contracting opportunities.

The committee considered the resolution after hearing testimony that Alaska Native corporations have used the program to create thousands of jobs and reinvest revenues in shareholder dividends, education, healthcare and infrastructure development.

"For Alaska, this program has been a cornerstone of economic self-sufficiency, community development, and workforce growth throughout our, especially our rural areas," the bill's sponsor said.

Nicole Borromeo, representing Alaska Regional Corporations, told the committee that the 12 regional corporations generated $13.5 billion in total revenue in 2022, including $4.5 billion from Alaska-based operations. She said the corporations supported nearly 25,000 Alaska jobs and $2 billion in wages that year.

The resolution addresses federal considerations regarding Alaska Native participation in the 8(a) program. Congress designated Alaska Native corporations as economically disadvantaged through legislation championed by former Sen. Ted Stevens, allowing them to participate without individual qualification requirements.

Rep. Ben Carpenter questioned whether contracts were going to truly disadvantaged entities, noting some Alaska Native corporations have grown substantially since 1971. Borromeo explained that Congress specifically designated these corporations as disadvantaged on behalf of their shareholders and communities.

The resolution now heads to the House floor for consideration.