Exclusive: 'Inflation Reduction' Bill Includes Massive Expansion of Tribal Energy Loan Guarantees

Exclusive: 'Inflation Reduction' Bill Includes Massive Expansion of Tribal Energy Loan Guarantees


The Inflation Reduction Act of 2022 includes a massive expansion to a little-known loan guarantee program available to Indian tribes, a change that has nothing to do with deficit or inflation reduction.

Under current law, the Department of Energy is authorized to guarantee up to 90 percent of the unpaid principal of a loan made to Indian tribes for energy development. Existing law caps the amount that can be guaranteed at $2 million.

The Inflation Reduction Act removes the first limit altogether, so there is no longer any requirement that a lender have “skin in the game” in the loans. This means that the U.S. taxpayer, rather than the financial institution making the loan, would be on the hook for any losses.

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