Native American Millennium Challenge Demonstration Act
This bill requires the Department of the Interior to establish the Native American Millennium Challenge Demonstration Project to provide economic development assistance to remote Native American communities.
Specifically, an eligible entity (e.g., a consortium of Native organizations in a noncontiguous state) must enter into a five-year binding agreement (i.e., a compact) with the United States to receive assistance. Among other elements, the agreement must contain a description of the specific objectives related to sustainable economic development and poverty reduction that the entity expects to achieve.
Further, assistance shall be provided in the form of funding agreements and may not be provided as loans. Additionally, funds may not be used for regulated gaming activities.
To direct the Secretary of the Interior to establish a demonstration 
 program to adapt the successful practices of providing foreign aid to 
     underdeveloped economies to the provision of Federal economic 
  development assistance to Native communities in similarly situated 
       remote areas in the United States, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Native American Millennium Challenge 
Demonstration Act''.

SEC. 2. PURPOSES.

    The purposes of this Act are--
            (1) to adapt the lessons of foreign aid to underdeveloped 
        economies, such as the experience of the Millennium Challenge 
        Corporation, to the provision of Federal economic development 
        assistance to similarly situated remote Native American 
        communities;
            (2) to provide Federal economic development assistance for 
        Native American communities through the Native American 
        Challenge Demonstration Project;
            (3) to administer Federal economic development assistance 
        in a manner that--
                    (A) promotes economic growth and the elimination of 
                poverty;
                    (B) strengthens good governance, entrepreneurship, 
                and investment in Native American communities; and
                    (C) builds the capacity of Native people to grow 
                sustainable local economies;
            (4) to improve the effectiveness of Federal economic 
        development assistance by encouraging the integration and 
        coordination of the assistance in remote Native American 
        communities;
            (5) to promote sustainable economic growth and poverty 
        reduction policies in remote Native American communities in a 
        manner that promotes self-determination and self-sufficiency 
        among remote Native American communities while preserving the 
        cultural values of those communities; and
            (6) to establish a demonstration project within remote 
        areas of noncontiguous States that experience high levels of 
        poverty and lack access to traditional transportation 
        infrastructure (highways, railways, and ports), which, if 
        successful, could potentially benefit other Native American 
        communities in the United States.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Compact.--The term ``compact'' means a binding 
        agreement with the United States entered into pursuant to this 
        Act.
            (2) Economic development strategy.--The term ``economic 
        development strategy'' means a strategy--
                    (A) written by an eligible entity and designed to 
                achieve sustainable economic growth and reduce poverty 
                over a defined period; and
                    (B) developed in consultation with public and 
                private sector entities, as appropriate to the 
                geographic area and intended beneficiaries of the 
                compact.
            (3) Eligible entity.--
                    (A) In general.--The term ``eligible entity'' means 
                a consortium of Native organizations in a noncontiguous 
                State, with priority given to organizations serving 
                regions with the highest poverty levels.
                    (B) Alaska.--In the State of Alaska, a consortium 
                shall be comprised of not more than 2 regional Alaska 
                Native nonprofit organizations, to be determined by the 
                Secretary, in consultation with statewide Alaska Native 
                organizations.
                    (C) Hawaii.--In the State of Hawaii, a consortium 
                shall be comprised of local Native Hawaiian nonprofit 
                organizations that serve the interests of Native 
                Hawaiians and in which Native Hawaiians serve in 
                leadership and substantive policymaking positions.
            (4) Indian tribe.--The term ``Indian Tribe'' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 5304).
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.

SEC. 4. MILLENNIUM CHALLENGE DEMONSTRATION PROJECT.

    (a) Establishment.--The Secretary shall establish and implement in 
the Department of the Interior a demonstration project, to be known as 
the ``Native American Millennium Challenge Demonstration Project'' 
(referred to in this section as the ``demonstration project'').
    (b) Authorization of Assistance.--In carrying out the demonstration 
project, the Secretary may provide assistance to any eligible entity 
that enters into a compact with the United States pursuant to this Act.
    (c) Form of Assistance.--Assistance under the demonstration 
project--
            (1) shall be provided in the form of funding agreements 
        established under the applicable compact;
            (2) may not be provided in the form of loans; and
            (3) may not be used for gaming activities conducted under 
        the Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.).
    (d) Coordination.--
            (1) In general.--The Secretary shall coordinate the 
        provision of assistance under the demonstration project, to the 
        maximum extent practicable, with the Federal agencies listed in 
        paragraph (2) that administer economic development assistance 
        programs for Native Americans and in consultation with the 
        Millennium Challenge Corporation. The Department of the 
        Interior shall be the lead Federal agency responsible for the 
        coordination and consultation under this paragraph.
            (2) Agencies.--The Federal agencies referred to in 
        paragraph (1) are--
                    (A) the Department of Agriculture;
                    (B) the Department of Commerce;
                    (C) the Department of Energy;
                    (D) the Department of Health and Human Services;
                    (E) the Department of Housing and Urban 
                Development; and
                    (F) the Small Business Administration.
            (3) Integrated funding.--Notwithstanding any other 
        provision of law, the Secretary's execution of a compact with 
        an eligible entity shall authorize the eligible entity to be 
        the designated applicant for, or recipient of, funds 
        appropriated pursuant to section 7 and economic development 
        assistance program funding that would otherwise be provided to 
        an Indian Tribe located in the region or regions served by the 
        eligible entity. The eligible entity shall integrate funds 
        appropriated pursuant to section 7 and any such program funding 
        and the operation of the programs' services into a single, 
        coordinated program under a demonstration project.
            (4) Competitive funding.--An eligible entity may only be 
        considered a designated applicant for funding from a 
        competitive program that would otherwise be provided to an 
        Indian Tribe located in the region or regions served by the 
        eligible entity if--
                    (A) an Indian Tribe located in the region or 
                regions served by the eligible entity designates the 
                eligible entity in a resolution passed by its governing 
                body as authorized to apply for the funding in lieu of 
                the Indian Tribe and forgoes applying for the funding;
                    (B) the Indian Tribe has submitted the resolution 
                to the Secretary and any Secretary who administers the 
                program; and
                    (C) the applicable Secretaries have certified in 
                writing to the eligible entity that they are in receipt 
                of the resolution.
            (5) Other funding.--An eligible entity may only be 
        considered a designated recipient of funding from a formula 
        based program or noncompetitive program that is otherwise 
        provided to a particular Indian Tribe located in the region or 
        regions served by the eligible entity if--
                    (A) the Indian Tribe designates the eligible entity 
                in a resolution passed by its governing body as 
                authorized to receive the funding in lieu of the Indian 
                Tribe and forgoes receipt of the funding;
                    (B) the Indian Tribe has submitted the resolution 
                to the Secretary and any Secretary that administers the 
                program; and
                    (C) the applicable Secretaries have certified in 
                writing to the eligible entity that they are in receipt 
                of the resolution.
            (6) Authority to rescind.--An Indian Tribe that has 
        submitted a designating resolution under this subsection may, 
        at any time, submit to the applicable Secretaries a resolution 
        passed by its governing body that rescinds the designating 
        resolution.
    (e) Waiver Authority.--
            (1) In general.--On receipt of an executed compact, the 
        Secretary shall consult with the eligible entity that is a 
        party to the compact and coordinate with the Secretary of each 
        Federal agency that provides funds to be used to implement the 
        compact to identify any waiver of statutory requirements or 
        applicable regulations, policies, or procedures necessary to 
        enable the eligible entity to implement the compact.
            (2) Agencies.--The head of the Federal agency to which the 
        Federal funds were appropriated may waive (in whole or in part) 
        the application, solely to such funds that are being used to 
        implement the compact, of any statutory, regulatory, or 
        administrative requirement that such agency head--
                    (A) is otherwise authorized to waive (in accordance 
                with the terms and conditions of such other authority); 
                and
                    (B) is not otherwise authorized to waive, provided 
                that in such case the agency head shall--
                            (i) not waive any requirement related to 
                        nondiscrimination, wage and labor standards, or 
                        allocation of funds to State and sub-State 
                        levels;
                            (ii) issue a written determination, prior 
                        to granting the waiver, with respect to such 
                        discretionary funds that the granting of such 
                        waiver for purposes of the compact--
                                    (I) is consistent with both--
                                            (aa) the statutory purposes 
                                        of the Federal program for 
                                        which such funds were 
                                        appropriated; and
                                            (bb) the other provisions 
                                        of this section;
                                    (II) is necessary to achieve the 
                                outcomes of the compact, and is no 
                                broader in scope than is necessary to 
                                achieve such outcomes; and
                                    (III) will result in either--
                                            (aa) realizing efficiencies 
                                        by simplifying reporting 
                                        burdens or reducing 
                                        administrative barriers with 
                                        respect to such funds; or
                                            (bb) increasing the ability 
                                        of individuals to obtain access 
                                        to services that are provided 
                                        by such funds; and
                            (iii) provide at least 60 days advance 
                        written notice to the Committee on Natural 
                        Resources of the House of Representatives and 
                        the Committee on Indian Affairs of the Senate.

SEC. 5. CHALLENGE COMPACTS.

    (a) Compacts.--
            (1) In general.--The Secretary shall develop and recommend 
        procedures for consideration of proposals for compacts 
        submitted by eligible entities.
            (2) Assistance.--The Secretary may provide assistance to an 
        eligible entity only if the eligible entity enters into a 
        compact with the United States, to be known as a Native 
        American Challenge Compact, that establishes a multiyear plan 
        for achieving development objectives in furtherance of the 
        purposes of this Act.
    (b) Applications.--The Secretary shall develop and recommend 
procedures for considering applications for compacts submitted by 
eligible entities.
    (c) Criteria for Selection of Eligible Entities.--The Secretary 
shall develop an application process and criteria for selecting 
eligible entities to enter into compacts under this Act, taking into 
consideration--
            (1) the purposes of this Act;
            (2) the economic development strategy of the eligible 
        entity;
            (3) the remoteness of the communities to be served by the 
        eligible entity;
            (4) the general economic status of the communities to be 
        served by the eligible entity; and
            (5) poverty rates within the communities to be served by 
        the eligible entity.
    (d) Assistance for Development of Compacts.--To the extent that 
funds are appropriated in advance to carry out this section, the 
Secretary may enter into contracts with, or make grants to, any 
eligible entity for the purposes of facilitating the development and 
implementation of a compact between the United States and the eligible 
entity.
    (e) Duration and Extension.--
            (1) Duration.--The term of an initial compact under this 
        section shall be for 5 years.
            (2) Subsequent compacts.--An eligible entity and the United 
        States may enter into one or more subsequent compacts in 
        accordance with this Act.
            (3) Extensions.--If a compact is approaching expiration or 
        has expired, the eligible entity that is a party to the compact 
        and the United States may renegotiate or extend the compact for 
        such number of terms as the parties may agree, with each term 
        not to exceed 10 years.
    (f) Elements.--In furtherance of the economic development strategy 
of the applicable eligible entity, each compact shall contain--
            (1) a description of the specific objectives for the 
        sustainable economic development and reduction of poverty that 
        the eligible entity and the United States expect to achieve 
        during the term of the compact;
            (2) a description of the respective roles and 
        responsibilities of the eligible entity and the United States 
        in the achievement of those objectives;
            (3) a list and description of regular benchmarks to measure 
        progress toward achieving those objectives;
            (4) an identification of the intended beneficiaries, 
        disaggregated by income level, gender, and age, to the maximum 
        extent practicable; and
            (5) a multiyear financial plan to guide the implementation 
        of the compact, including the estimated level of funding and 
        other contributions by the United States and the eligible 
        entity, proposed mechanisms to execute the plan, and periodic 
        assessments to determine whether the requirements of paragraphs 
        (1) through (4) are being met.
    (g) Suspension and Termination of Assistance.--
            (1) In general.--The Secretary may suspend or terminate 
        assistance, in whole or in part, for an eligible entity that 
        has entered into a compact with the United States if the 
        Secretary determines that the eligible entity--
                    (A) failed to meet the responsibilities of the 
                eligible entity under the compact; or
                    (B) engaged in a pattern of actions that is 
                inconsistent with the purposes of this Act.
            (2) Reinstatement.--The Secretary may reinstate assistance 
        for an eligible entity only if the Secretary determines that 
        the eligible entity has demonstrated a commitment to correcting 
        each condition for which assistance was suspended or terminated 
        under paragraph (1).

SEC. 6. PROGRAM ASSESSMENTS AND REPORTS.

    (a) Reports of Eligible Entities.--Not later than March 15 each 
year, each eligible entity shall prepare and submit to the Secretary a 
written report describing the assistance provided to the eligible 
entity under this Act during the preceding fiscal year.
    (b) Report Contents.--A report required under subsection (a) shall 
include--
            (1) a description of the amount of obligations and 
        expenditures for assistance provided during the preceding 
        fiscal year;
            (2) a description of the programs and activities conducted 
        by the eligible entity in furtherance of the economic 
        development strategy of the eligible entity and the purposes of 
        this Act;
            (3) an assessment of the effectiveness of the assistance 
        provided and progress made by the eligible entity toward 
        achieving the economic development strategy of the eligible 
        entity and the purposes of this Act; and
            (4) such other information as the eligible entity considers 
        to be relevant, taking into consideration the purposes of this 
        Act.
    (c) Submission to Congress.--Not later than May 15 each year, the 
Secretary shall submit the reports required under subsection (a), with 
such other information as the Secretary considers to be relevant, to--
            (1) the Committee on Natural Resources of the House of 
        Representatives; and
            (2) the Committee on Indian Affairs of the Senate.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    (a) Authorization.--
            (1) In general.--There is authorized to be appropriated to 
        carry out this Act $8,000,000 for each of fiscal years 2023 
        through 2028, to remain available until expended.
            (2) Unappropriated amounts.--Any funds authorized but not 
        appropriated for any fiscal year under paragraph (1) may be 
        appropriated for a subsequent fiscal year, subject to the 
        condition that the cumulative amount authorized to be 
        appropriated for any of fiscal years 2023 through 2028 shall 
        not exceed $40,000,000.
    (b) Administrative Funds.--Of the funds made available to carry out 
this Act, not more than 5 percent may be used by the Secretary for the 
administrative expenses of carrying out this Act and oversight of 
programs under this Act.
                                 <all>
Native American Millennium Challenge Demonstration Act
To direct the Secretary of the Interior to establish a demonstration program to adapt the successful practices of providing foreign aid to underdeveloped economies to the provision of Federal economic development assistance to Native communities in similarly situated remote areas in the United States, and for other purposes.
Native American Millennium Challenge Demonstration Act
Rep. Peltola, Mary Sattler