Federal Agencies Reaffirm Native Programs Are Safe from Anti-DEI Order — LCO Applauds SBA Clarification

By Joe Morey

News Editor

In a major reassurance to Indigenous communities and tribal governments, the U.S. Small Business Administration (SBA) has officially confirmed that Native American programs are not affected by President Donald Trump’s controversial executive order aimed at dismantling diversity, equity, inclusion, and accessibility (DEIA) initiatives across federal agencies.

This clarification follows similar statements issued by the Department of Health and Human Services (HHS) and the Department of the Interior, which all stress that longstanding federal obligations to American Indians and Alaska Natives, rooted in treaties and sovereign rights, remain intact despite the sweeping language in Executive Order 14151.

Trump signed the order on January 20, directing agencies to eliminate what he termed “discriminatory DEI programs,” including those focused on environmental justice and accessibility. The move drew concern from Native organizations, particularly around the potential chilling effect it might have on vital economic, healthcare, and educational initiatives serving tribal communities.

However, the SBA’s General Counsel Wendell Davis issued a memo on May 20 explicitly stating that the order “by its plain terms, does not apply to programs or activities of the Small Business Administration that affect or serve AI/ANs [American Indians and Alaska Natives].” Davis emphasized that it would be “unreasonable” to interpret the executive order in a way that undermines sovereign tribal nations.

The memo was written in response to concerns raised by the Native American Contractors Association (NACA), whose members met with SBA leadership during a February fly-in to address federal contracting and procurement opportunities for Native-owned businesses.

The Lac Courte Oreilles Tribe (LCO) welcomed the news. LCO Secretary-Treasurer Bill Trepanier praised the SBA’s clarification as a necessary safeguard for tribal economic development initiatives.

“This confirmation from the SBA comes at a crucial time for LCO,” said Trepanier. “We are in the middle of an economic revitalization phase focused on creating sustainable businesses and supporting Native entrepreneurs. The assurance that our access to SBA programs will not be disrupted means we can continue building on that momentum without added political uncertainty.”

Trepanier also noted that the executive order’s non-applicability to tribal programs allows LCO members to pursue SBA services, such as loans and business development support, without interference or fear of being impacted by broader federal rollbacks.

“While our people are still dealing with bureaucratic hurdles through the SBA and other agencies, it’s critical that we are not sidelined in this national debate over DEI. Our relationship with the federal government is unique and legally binding. These are not special favors, they’re treaty obligations,” he added.

Federal agencies have now broadly acknowledged that tribal programs are shielded from the effects of the anti-DEI order:

-HHS clarified in January that the order does not apply to Indian Health Service programs.

-In February, HHS issued an advisory opinion affirming that no Indigenous-focused federal programs under its jurisdiction are affected.

-The Department of the Interior similarly confirmed in Order No. 3416 that the legal responsibilities owed to tribal nations remain unchanged.

Still, concerns linger among Native advocates. Despite reassurances, the Trump administration has moved to defund or rescind several other Native-focused initiatives in recent months. These include the cancellation of federal support for boarding school education and preservation projects and the brief removal of Navajo Code Talkers materials from Department of Defense websites, actions viewed by many as dismissive of Native histories and sacrifices.

Nevertheless, the latest SBA clarification is seen as a win for tribal nations trying to navigate shifting federal priorities while safeguarding their communities’ futures.

“We’re watching closely, but for now, this decision by the SBA allows us to move forward with confidence,” Trepanier said. “Economic self-determination is one of the most powerful tools we have, and we intend to use it.”