(2) COMPACT.—The term ‘‘compact’’ means a 
binding agreement with the United States pursuant 
to this Act. 
(3) ECONOMIC
DEVELOPMENT
STRATEGY
OF 
THE ELIGIBLE ENTITY.—The term ‘‘economic devel-
opment strategy of the eligible entity’’ means a 
strategy written by the eligible entity and designed 
to achieve sustainable economic growth and reduce 
poverty over a defined period, developed in consulta-
tion with public and private sector entities as appro-
priate to the geographic area and intended bene-
ficiaries of the compact. 
(4) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 
shall have the meaning given the term in section 
4(e) of the Indian Self Determination and Education 
Assistance Act (25 U.S.C. 450 et seq.). 
(5) RENEWAL.—The term ‘‘renewal’’ means the 
negotiated extension of a compact. 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Commerce, Office of the Secretary. 
SEC. 4. NATIVE AMERICAN MILLENNIUM CHALLENGE DEM-
ONSTRATION PROJECT. 
(a) ESTABLISHMENT.—The Secretary shall establish 
and implement a demonstration project in the Department 
of Commerce. 
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(b) AUTHORIZATION
OF
ASSISTANCE.—The Sec-
retary may provide assistance under this section to an eli-
gible entity that enters a compact with the United States 
pursuant to this Act. 
(c) FORM OF ASSISTANCE.—Assistance under this 
section— 
(1) shall be provided in the form of funding 
agreements established by the compacts; 
(2) may not be provided in the form of loans; 
and 
(3) may not be used for gaming activities pur-
suant to the Indian Gaming Regulatory Act (25 
USC 2701 et seq.). 
(d) COORDINATION.— 
(1) IN GENERAL.—The provision of assistance 
under this section shall be coordinated with other 
Federal economic development assistance programs 
for Native Americans. 
(2) INTEGRATED FUNDING.—The Secretary, in 
cooperation with other Secretaries as appropriate, 
shall, upon execution of a compact with an eligible 
entity, authorize the eligible entity to coordinate its 
federally funded economic development assistance 
programs in a manner that integrates the program 
services into a single, coordinated program. 
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(3) AGENCIES AND DEPARTMENTS.—The Fed-
eral agencies and departments administering eco-
nomic development assistance programs for Native 
Americans are the following: 
(A) Department of Agriculture. 
(B) Department of Commerce. 
(C) Department of Energy. 
(D) Department of Health and Human 
Services. 
(E) Department of Housing and Urban 
Development. 
(F) Department of the Interior. 
(G) Small Business Administration. 
(H) Such other Federal agencies and in-
strumentalities as the Secretary determines ap-
propriate. 
(e) PROGRAMS AFFECTED.—The programs that may 
be integrated pursuant to this Act shall include any pro-
gram under which an Indian tribe is eligible for receipt 
of funds under a statutory or administrative formula for 
economic development purposes. 
(f) WAIVER AUTHORITY.—Upon receipt of the exe-
cuted compact, the Secretary shall consult with the eligible 
entity and the Secretary of each Federal agency or depart-
ment providing funds to be used to implement the compact 
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in order to identify any waivers of statutory requirements 
or applicable regulations, policies, or procedures necessary 
to enable the eligible entity to implement its compact. 
SEC. 5. NATIVE AMERICAN CHALLENGE COMPACTS. 
(a) COMPACTS.—The Secretary shall develop and rec-
ommend procedures for considering proposals for com-
pacts submitted by eligible entities. The Secretary may 
provide assistance to an eligible entity only if the eligible 
entity enters into an agreement with the United States, 
to be known as a ‘‘Native American Challenge Compact’’, 
that establishes a multi-year plan for achieving develop-
ment objectives in furtherance of the purposes of this Act. 
(b) ELIGIBLE
ENTITIES-CRITERIA
FOR
SELEC-
TION.—The Secretary shall develop an application process 
and criteria for selecting the eligible entities, taking into 
account— 
(1) the purposes of this Act; 
(2) the economic development strategy of the el-
igible entity; 
(3) the remoteness of the reservation or com-
munity to be served; 
(4) its general economic status; 
(5) poverty rates; and 
(6) the capacity of the applicant. 
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(c) ASSISTANCE
FOR DEVELOPMENT
OF
A COM-
PACT.—To the extent that funds have been appropriated 
in advance and are available for this section, the Secretary 
may enter into contracts with or make grants to any eligi-
ble entity for the purposes of facilitating the development 
and implementation of a compact between the United 
States and the eligible entity. 
(d) DURATION AND EXTENSION.—The term of an 
initial compact may not exceed five years. An eligible enti-
ty and the United States may enter into one or more sub-
sequent compacts in accordance with the requirements of 
this Act. If a compact is nearing its expiration or has ex-
pired, the eligible entity and the United States may re-
negotiate or extend the compact for as many periods as 
the parties agree, with each period not exceeding 10 years. 
(e) APPLICATION.—The Secretary shall develop and 
recommend procedures for considering proposals for com-
pacts submitted by eligible entities. 
(f) ELEMENTS.—In furtherance of the economic de-
velopment strategy of the eligible entity, the compact shall 
contain— 
(1) a description of the specific objectives for 
sustainable economic development and the reduction 
of poverty that the eligible entity and the United 
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