In response to a March 2024 request from U.S. Senator Lisa Murkowski (R-Alaska), Chairman of the U.S. Senate Committee on Indian Affairs, the Government Accountability Office (GAO) released a report revealing that the design and implementation of the Department of Energy’s (DOE) Tribal Energy Financing Program (TEFP), which is meant to support Tribes in developing energy projects by offering loans and loan guarantees, are limiting its accessibility and effectiveness.
According to the report’s findings, high, unpredictable costs for Tribes, unclear guidance from the Loan Programs Office (LPO), and a lack of Tribal expertise at LPO all contribute to ineffective use of TEFP.
- Since launching in 2018, TEFP has drawn only 20 applications for energy-related ventures, including solar, wind, ammonia production, and natural gas storage. Despite these submissions, as of July 2025, the program has issued only one loan guarantee and no direct loans. Most applications have been withdrawn or are still under review.
- The DOE requires applicants to pay third-party legal and technical fees during the application process, which can be expensive and hard to predict, discouraging participation.
- The DOE’s Loan Programs Office lacks dedicated personnel familiar with Tribal needs, which has contributed to slow processing and inadequate support for applicants.
“The DOE’s Tribal Energy Loan Guarantee Program was designed to help Tribes pursue energy independence and economic development. Unfortunately, high upfront costs, confusing processes, and a lack of Tribal-specific input have limited the program’s reach, making it difficult, if not impossible, for Tribes to navigate. That’s why I asked the GAO to take a close look at the program and suggest commonsense improvements,” said Chairman Murkowski. “Alaska Native villages, and Tribal communities across the U.S., face a unique set of energy challenges that require diverse solutions. I appreciate the GAO for recognizing the potential of this program and for addressing my request to ensure it effectively addresses the obstacles faced by underserved Tribal communities – just as the program was intended. I anticipate the recommendations from this report will be important to our discussions in our committee hearing next week on Indian energy.”
In response to these findings, the GAO provided the following recommendations to improve how TEFP serves tribes:
- Better Coordinating and Communicating Funding Options
- Reducing or Removing Costly Application Requirements
- Simplifying the Application Process
- Clarifying Guidance
- Strengthening Tribal-Focused Capacity
Related Upcoming Committee Action:
On Wednesday, September 10th, 2025, at 2:30 p.m. ET, Chairman Murkowski will hold a SCIA hearing entitled, “Unleashing Indian Energy – Examining Federal Programs at the U.S. Department of Energy”. This hearing will be webcast live on the Committee’s website, and an archived video will be available shortly after the hearing concludes. Witness testimony will be available on the website at the start of each hearing.