Tribal colleges and universities are known to play an outsize role in educating and employing members of their local tribal communities. But they also offer major returns to taxpayers and the economy at large, according to a new economic impact study by the American Indian Higher Education Consortium and Lightcast.
The study, released on Tuesday, drew on data from the U.S. Bureau of Labor Statistics, the U.S. Census Bureau and institutional reports from the 2022–23 academic year at all 34 tribal colleges and universities across the country.
It found that associate degree graduates from tribal colleges earned, on average, $9,400 more per year than those with just a high school diploma. Students earned $7.50 in future returns for every dollar invested in their tribal college education, an annual return of 27.2 percent.
Meanwhile, alumni of tribal institutions contributed $3.8 billion to the U.S. economy through the higher wages they earned, the increased output of the businesses that employed them and the money students and their employers spent. Tribal college alumni also supported 40,732 jobs nationwide, particularly in industries such as health care and social assistance, retail, and professional and technical services.
For every federal dollar invested in tribal colleges, the institutions return $1.60 in tax revenue through the increased tax payments of their alumni and alumni’s employers. According to the study, the colleges generate a total of $785.6 million in additional tax revenue and save taxpayers $96.8 million because of higher education’s benefits to alumni, including improved health, fewer interactions with the justice system and less reliance on income-assistance programs.
“Tribal Colleges and Universities are powerful engines for opportunity, growth, and stability, not just for Native people, but for everyone,” Ahniwake Rose, president of AIHEC, said in a statement to Inside Higher Ed. “The evidence is clear: Supporting Tribal higher education is not only the right thing to do, it is one of the smartest investments this country can make.”
