Staff Reports
WINDOW ROCK, Ariz. — The 25th Navajo Nation Council voted to approve Legislation No. 0009-26 on Jan. 28, which amends Title 12 of the Navajo Nation Code to enact the Capital Development Financing Act and establish the Capital Development Financing Fund.
The legislation preserves remaining Revenue Replacement Reserve funds for Delegate Region Project plans while creating a long-term financing framework to support future capital development across the Navajo Nation.
The legislation was sponsored by Budget and Finance Committee Chair Shaandiin Parrish, who presented the legislation with Controller Sean McCabe.
“This legislation is about safeguarding our dollars, growing them responsibly, and making sure future capital projects are ready, vetted, and financially sound before they come before Council,” Parrish said.
The legislation creates the new CDFA as a statutory trust fund with a principal of approximately $521 million derived from the investment earnings of the Navajo Nation Fiscal Recovery Fund and related assets.
The measure sets rules for how the new CDFA will be protected, invested, and leveraged for future infrastructure needs. It also updates Council Resolution CMY-28-24, which established the RRR as a committed fund balance and streamlined the modification process for DRP projects.
The legislation allows Council Delegates to modify the RRR Delegate Regional Projects through a streamlined administrative process. McCabe said that from the $211 million currently in the RRR fund, approximately $166 million remains unallocated and can be used for future projects once approved.
The legislation sets eligibility criteria for capital projects seeking financing through the CDFA, requiring a minimum project cost of $10 million, a useful life of over 10 years, and readiness to begin construction within six months. Projects must be reviewed by the Office of the Controller, approved by the BFC, recommended by the Resources and Development Committee, and finalized by the Navajo Nation Council.
Parrish expressed that the structure is designed to preserve the principal while allowing the Navajo Nation to use investment earnings and financing tools to support large-scale capital projects over time. The CDFA allows for other funds to be added to the principal, including unused Sih Hasin, Permanent Trust Fund, and other funds to help grow the Nation’s investments.
The legislation establishes a data-driven project vetting system through a Capital Development Strategic Plan and Database maintained by the OOC. The database is intended to track capital projects across the Navajo Nation, identify readiness and funding gaps, and support financing recommendations before projects are advanced for committee and Council consideration.
The 25th Navajo Nation Council approved Legislation No. 0009-26 with a vote of 20 in favor and one opposed. The council also serves as the final authority for this legislation.
