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Policy · 5 min

Colusa Indian Community Gains HEARTH Act Leasing Authority

Federal sign-off on the Cachil DeHe Band's leasing ordinance removes a Washington approval step from every ground lease at Colusa Rancheria.

The Cachil DeHe Band of Wintun Indians of the Colusa Indian Community has secured HEARTH Act leasing authority over its trust lands, a procedural change that removes the Department of the Interior from the approval path for individual ground leases at Colusa Rancheria. The Assistant Secretary — Indian Affairs approved the tribe's leasing ordinance on June 22, 2026, with notice published in the Federal Register on June 26. The approval is narrow on its face and consequential in practice: it shifts the timeline for land transactions from a federal queue to a tribal one.

The Helping Expedite and Advance Responsible Tribal Homeownership Act of 2012 — the HEARTH Act — lets a tribe adopt its own leasing regulations and, once Interior approves them, execute leases on trust land without submitting each one for separate Secretarial review. Under the Colusa ordinance, business and agricultural leases, including leases for energy projects, may run up to 25 years with two additional 25-year renewal terms. Residential leases may run up to 75 years. Improvements, leaseholds, and lease-related activity on the covered lands are federally preempted from state and local taxation, and may instead be taxed by the tribe.

Why HEARTH Act leasing authority matters to gaming tribes

Tribal gaming enterprises are, increasingly, real estate developers. The resort expansions, hotel towers, travel plazas, fuel centers, and commercial pads that now surround mature tribal casinos all sit on land that has to be leased, financed, and built on a schedule that lenders and contractors will accept. Every federal approval inserted into that sequence adds carrying cost and, more corrosively, uncertainty about when construction can actually start.

Historically, a lease on trust land required federal review under 25 CFR Part 162 before it took effect. Reviews were often measured in months; in complex cases, longer. Sponsors of ancillary development — a hotel flag, a retail operator, a solar array — price that delay into their proposals or walk away from it entirely. HEARTH authority does not eliminate the underlying due diligence; it relocates the decision to the tribal government that has the most direct interest in getting it right quickly.

The distinction worth holding onto is that HEARTH authority governs leasing, not gaming. It does not touch the separate federal tracks that govern gaming eligibility, gaming ordinances, or management contracts under the Indian Gaming Regulatory Act. A tribe with HEARTH authority still needs its gaming ordinance approved by the National Indian Gaming Commission, still needs compacted Class III authority where applicable, and still sits inside the same trust-land framework set out in our Legal Guide to IGRA and Class III gaming. What changes is the speed of everything around the gaming floor.

A California context

Colusa Rancheria sits in the Sacramento Valley, north of the state's dense Sacramento-area casino corridor, and the tribe operates a casino resort that has expanded steadily over the past two decades. California remains the largest tribal gaming market in the United States by a wide margin, and its operators have spent the current cycle pushing capital into non-gaming amenities rather than additional gaming positions — a pattern visible across the properties tracked in our California state hub. For a mid-sized operator in that environment, the binding constraint is rarely demand. It is the time required to get a shovel in the ground.

HEARTH authority does not make a project viable. It makes a viable project executable on a schedule the market will underwrite.

Tribal energy development is the stated driver in Colusa's case, and that framing deserves to be taken seriously rather than treated as incidental to gaming. Casino resorts are energy-intensive assets with 24-hour load profiles, and utility costs have been one of the more stubborn line items on tribal casino income statements through 2025 and 2026. A tribe that can lease its own land for generation without waiting on a federal file is better positioned to build behind-the-meter capacity that insulates the property from retail rate exposure.

How widely the model has spread

Interior has approved HEARTH Act leasing ordinances for well over a hundred tribes since the statute took effect, and the approvals now arrive in the Federal Register at a steady cadence. That volume is itself the story: what began as a homeownership measure has become a general-purpose tool of economic self-governance, used for commercial, agricultural, and energy leasing at least as often as for housing.

Adoption is uneven, and not because of inattention. Drafting an ordinance that satisfies Interior's environmental-review and tenant-protection requirements is legal work a tribe must pay for up front, and the benefit only materializes once there is deal flow to accelerate. Tribes with active development pipelines have the clearest business case. Tribes still working toward a first gaming facility, or toward the fee-to-trust acquisition that would precede one, generally have more pressing uses for the same legal budget.

There is also a financing dimension. Lenders underwriting improvements on trust land care intensely about the durability and enforceability of the underlying leasehold, since the land itself cannot serve as collateral in the conventional way. A tribally administered leasing regime with clear terms and a predictable process can read as a credit positive, provided the ordinance is well drafted and consistently applied — a nuance examined in our explainer on lending against trust land collateral. Poorly administered, it can cut the other way.

What to watch next

The near-term test for Colusa is transactional, not legal: whether the ordinance measurably shortens the interval between a signed term sheet and a recorded lease on the rancheria's commercial parcels. That is a question of tribal administrative capacity as much as federal deference, and it will not be answered by a Federal Register notice.

The broader pattern to watch across Indian Country is whether gaming tribes begin treating HEARTH adoption as standard infrastructure for a development program rather than a discretionary legal project. The economics point that way. Tribal gaming revenue reached a record in the most recent federal reporting cycle, and much of the resulting capital is flowing into land-intensive, non-gaming assets — the trend documented in our 2025 economic impact analysis. Land that can be leased on a tribal timetable is worth more to that program than land that cannot.

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