Tribal Energy Finance: DOE Actions Needed to Reduce Barriers for Tribes

What GAO Found

In August 2025, GAO found that Tribes continue to experience barriers to accessing loan guarantees and direct loans from the Department of Energy's (DOE) Tribal Energy Financing Program (TEFP) (GAO-25-107441). These barriers make it harder for Tribes to develop energy resources on tribal lands, causing them to miss opportunities to generate important revenue and jobs.

The barriers GAO found relate to (1) aspects of TEFP's design that have restrictions that can discourage tribal participation, and (2) complex and unclear agency processes that can derail applications. This testimony summarizes several of these barriers.

TEFP design. Two aspects of TEFP's design that GAO identified are the limited assistance available to help Tribes develop projects and due diligence fees that can be high and unpredictable. For example, tribal applicants are required to cover the costs of the outside lawyers and technical experts that DOE hires to review projects. Tribes may avoid applying for the program until DOE revises its review processes to reduce or eliminate the cost.

Agency processes. The application process is long and complex, and guidance is unclear. DOE also has few program staff with tribal experience to review applications, which can lengthen reviews and create additional costs for Tribes. Given ongoing changes to the program (e.g., loss of staff), DOE streamlining program processes and ensuring there are designated program staff with appropriate knowledge of tribal energy finance to review applications is particularly important. Without taking these steps, Tribes may continue to experience barriers to securing TEFP financing, limiting their ability to develop their own energy resources.

In addition to discussing barriers, GAO also provided information on the status of applications to TEFP. Specifically, since its first solicitation in 2018, TEFP has received 20 applications for loans and loan guarantees for various project types and amounts. Requests ranged from $23.7 million for a solar project to $8.7 billion for an ammonia production facility for low-carbon fuel. DOE's Loan Programs Office, which manages TEFP, has closed one loan guarantee and no loans. According to DOE officials, seven of the other 19 applications were active as of July 18, 2025.

Why GAO Did This Study

Tribes can get important economic benefits from energy projects on their lands, such as revenue for government operations. DOE's TEFP offers loans and loan guarantees for such projects. However, barriers to accessing these loans and loans guarantees can limit Tribes' development of untapped energy resources on tribal lands.

This testimony provides information on DOE tribal energy financing. It is based on GAO-25-107441, a report about the status, design, and implementation of DOE's TEFP. To identify and describe these barriers, GAO reviewed laws, regulations, and program guidance and other agency documents. GAO also interviewed DOE officials, 12 potential TEFP participants, and five tribal energy stakeholders.