Across rural America, Tribal Colleges and Universities (TCUs) serve as dynamic engines for local prosperity, workforce development, and community stability. The American Indian Higher Education Consortium (AIHEC), which represents 34 TCUs nationwide, has released a landmark national economic impact study showing just how vital these institutions are – not only to Native communities, but to the economies of some of the country’s most remote regions.

The numbers speak for themselves. According to the study, TCUs fueled $3.8 billion in economic activity and supported over 40,700 jobs in sectors ranging from health care and government to retail and technical services. These jobs aren’t concentrated in large cities; instead, TCUs anchor small towns and Tribal lands, acting as regional economic hubs that give local businesses, families, and graduates a shot at a more secure future.

Connecting Education, Jobs, and Local Growth

TCUs are not only institutions of higher learning – they are lifelines for rural communities. Situated in some of the most remote and economically under-resourced areas of the United States, TCUs are driven by a powerful mission set by their founding Tribes and supported by AIHEC: to provide affordable, culturally grounded education, technical job training, and vital community services such as health care, food support, and language preservation.

This mission delivers large-scale results:

• 40,700+ jobs created and sustained by TCU activity, with ripple benefits felt in local clinics, schools, utility companies, and small businesses.
• $3.8 billion in added income generated in FY 2022-23, directly supporting local and regional businesses, government tax bases, and working families.
• $785.6 million in annual tax revenue and $96.8 million in public savings returned to taxpayers via improved health, reduced unemployment, and less reliance on public assistance.
• Every $1 invested in a TCU education delivers $7.50 in future earnings to graduates, who see lifetime wage increases more than double those of the average private investment.

Economic Impact Across Five States

The following is a snapshot of the powerful local impact that TCUs have in the states where they operate. 

Individual, in-depth economic impact reports are now available for these five states – Alaska, Montana, North Dakota, Nebraska, and New Mexico – with reports for additional states coming soon. These state-level studies capture only a portion of the transformative economic and community benefits driven by TCUs across the nation.

Alaska

Ilisagvik College, Alaska’s only Tribal college, created $34.9 million in economic impact for the North Slope Borough, supporting 165 jobs and accounting for 0.7% of the region’s gross regional product. Its programs blend Iñupiaq values with professional training, ensuring graduates remain rooted in their communities. Notably, the average associate degree graduate earns $106,900 annually – almost $27,000 more than a high school graduate. Over 61% of graduates settle locally, magnifying long-term impact.

Montana

Montana’s seven TCUs – including Aaniiih Nakoda, Blackfeet, Chief Dull Knife, Fort Peck, Little Big Horn, Stone Child, and Salish Kootenai Colleges – collectively generated $322.2 million for Montana’s economy in 2022-23. They supported 5,178 jobs, representing over 1 in every 20 jobs in many rural counties. 

Their alumni alone added $258.6 million to the state’s economy, and TCUs improve local economies not only through workforce training, but by providing child care, food programs, mental health support, and language and culture classes. 

North Dakota

Tribal and community colleges in North Dakota are pivotal for workforce formation and local resilience. They supply a steady pipeline of graduates for local employers, focus on career and technical programs, and leverage federal Pell Grants, state investments, and community partnerships to extend educational access. 

Nueta Hidatsa Sahnish College alone generated $35.7 million in total societal benefits, with $24.3 million in added student income and $9.8 million in increased business output from alumni. Their alumni are integral to the economic life of reservations and rural counties, reinforcing vital services and small businesses.

Nebraska

Nebraska’s Tribal Colleges - Little Priest Tribal College and Nebraska Indian Community College – are driving statewide economic growth and opportunity. A new economic impact study shows these institutions generated $19.2 million in added income for Nebraska, supporting 337 jobs through college operations, student spending, and alumni success. Their broad economic footprint illustrates TCUs’ centrality to Nebraska’s economic ecosystem.

New Mexico

Two federally recognized TCUs in New Mexico – Institute of American Indian Arts and Southwestern Indian Polytechnic Institute – and Tribally chartered TCU Navajo Technical University generated $167.5 million in statewide economic impact and supported 2,469 jobs. 

Together, they employed 775 staff, created $56.9 million from operations and $8.5 million in student spending, and alumni added $101.7 million in workforce income. Every $1 invested in a TCU education in New Mexico results in $6.60 in future earnings for graduates; social and taxpayer returns both exceed $1.60 per dollar.

A Powerful Return for Taxpayers and Society

The study’s findings are clear: investment in TCUs delivers outsize returns not just for Native students, but for taxpayers and society overall.

• For every federal dollar invested, TCUs return $1.60 in tax revenue and public sector savings.
• Society enjoys $4.80 in total benefits for every $1 invested – a result of healthier, more self-reliant communities and stronger local economies.

TCUs help close gaps, promote self-sufficiency, and drive economic growth where investment is most urgently needed.

Strengthening the Nation, One Rural Community at a Time

A flourishing Tribal higher education sector doesn’t just benefit Native communities; it strengthens the entire nation. TCUs equip students with the skills they need to thrive—and lift up families, businesses, and economies far beyond reservation borders. When we invest in Tribal Colleges and Universities, we invest in expanded opportunity, upward mobility, and lasting prosperity for all Americans.

For rural America – and for the future of a resilient national economy – support for TCUs is more than a trust and treaty obligation. It’s a proven economic strategy with transformative impact.

For more on the national and local impact of TCUs, access the full AIHEC Economic Impact Study at the American Indian Higher Education Consortium website.