President Trump has been right to challenge bloated bureaucracy and rein in wasteful Diversity, Equity, and Inclusion (DEI) programs that prioritize ideology over performance.
His focus on efficiency and accountability has energized voters who are tired of seeing their tax dollars diverted into symbolic political projects.
But not everything critics label "DEI" fits that description.
And in the rush to dismantle anything that carries that branding, some in Washington are now targeting a program that is neither ideological nor wasteful – and whose elimination would undermine the very economic and national security priorities the administration is trying to advance.
At issue is the Small Business Administration’s 8(a) Business Development Program. U.S. Secretary of War Pete Hegseth recently pledged to take a "sledgehammer" to what he described as the oldest DEI program in existence.
That rhetoric may play well in certain circles.
But when applied to Alaska Native Corporations, it is misguided – legally, economically, and strategically.
Alaska Native Corporations, or ANCs, were not created as racial preference vehicles.
They were established under the Alaska Native Claims Settlement Act as part of a historic settlement. In exchange for extinguishing aboriginal land claims, Alaska Natives received land and a corporate structure designed to provide long-term economic self-sufficiency.
Congress later ensured ANC participation in the 8(a) program precisely to make that settlement workable.
The U.S. Supreme Court has repeatedly affirmed that classifications tied to tribal status are political, not racial.
In Morton v. Mancari, 417 U.S. 535 (1974), the high court upheld preferences for tribal citizens because tribes are sovereign political entities in a government-to-government relationship with the United States.
That principle was reaffirmed in Haaland v. Brackeen, 599 U.S. 255 (2023).
Even the SBA's own general counsel clarified in 2025 that executive actions targeting DEI programs do not apply to programs serving American Indians and Alaska Natives given their separate sovereign status.
In short, treating ANCs as just another DEI program ignores settled law and distorts the original intent of Congress.
It also ignores economic reality. ANCs are not peripheral players in Alaska’s economy – they are central to it.
They consistently rank among the state’s largest corporations, employ more than 15,000 Alaskans, and generate billions in annual economic activity.
In communities like Fairbanks, ANC-related entities account for a meaningful share of total civilian employment.
Federal contracting, much of it facilitated through 8(a), is the primary revenue stream that allows these corporations to invest in rural infrastructure, provide scholarships, support nonprofits, and fund services for tens of thousands of Alaska Native shareholders.
Over the past four decades, Native entities have generated more than $200 billion in federal contract revenue.
Disrupting that foundation would not trim excess – it would destabilize an entire state economy.
The consequences extend far beyond Alaska’s borders. Alaska contains 49 of the 50 critical minerals identified as essential to America’s economic future and national defense.
The Red Dog Mine, operated in partnership with NANA Regional Corporation, an ANC, is the world’s largest zinc mine.
Zinc's corrosion-resistant properties are indispensable to military manufacturing.
Weakening the corporations that sustain that ecosystem undermines the supply chains the administration itself has prioritized.
The same is true for missile defense.
Fort Greely houses the Ground-Based Midcourse Defense system – the only operational shield against intercontinental ballistic missile attacks on the U.S. homeland.
Arctic Slope Regional Corporation, another ANC, and its federal subsidiary participates in the Missile Defense Agency’s SHIELD contract vehicle, a multibillion-dollar program designed to support homeland missile defense, and manages critical logistics contracts that sustain U.S. military installations globally.
Not to mention, multiple ANC subsidiaries were recently revealed to be selected as contractors for the Golden Dome initiative, President Trump's landmark missile defense project.
At a time when Arctic homeland defense is increasingly central to U.S. strategy, dismantling the economic framework that supports these operations is counterproductive.
There is also a political dimension that cannot be ignored.
Alaska's Republican delegation understands the stakes.
Yet Democrats are already preparing to frame any rollback as a betrayal of Alaska Native communities and a threat to local jobs.
In a closely watched U.S. Senate race, handing opponents a ready-made economic grievance would be an avoidable error.
Republicans are right to demand efficiency and reject performative DEI programs that do nothing for taxpayers or national strength.
But Alaska Native Corporations are not a culture-war symbol.
They are the functional engine of a settlement agreement, the backbone of Alaska’s economy, and a quiet but critical pillar of America's defense infrastructure.
Reform, where necessary, should be careful and targeted.
A sledgehammer approach risks damaging far more than it fixes – and in the process, undermining both President Trump's agenda and the party’s prospects in the elections ahead.
Diana London is a seasoned political strategist and commentator with over five years of experience on Capitol Hill. Currently a Newsmax columnist, she works on advancing conservative initiatives and empowering diverse communities as well as championing criminal justice reform. Read more Diana London Insider articles — Click Here Now.
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