The HEARTH Act lets a federally recognized tribe approve surface leases on its own trust and restricted land without waiting for the Secretary of the Interior to sign off on each transaction. Tribal leasing under the HEARTH Act works through a one-time federal review: the tribe writes its own leasing regulations, submits them to the Secretary, and once those regulations are approved, executes leases under its own authority. The statute is codified at 25 U.S.C. ยง 415, and it amended the Indian Long-Term Leasing Act of 1955 to shift the transactional approval role from the federal government to the tribe itself.1Office of the Law Revision Counsel. 25 USC 415 – Leases of Restricted Lands
What Lands and Leases the Act Covers
Only federally recognized tribes can use the HEARTH Act, and it reaches only tribal trust land and restricted fee land. Trust land is titled in the federal government for the tribe’s benefit; restricted land is tribally owned but carries federal limits on sale or transfer. Land held in trust for individual Indian landowners, fee land, and fractionated interests are outside the statute.2Bureau of Indian Affairs. HEARTH Act Leasing
That boundary matters on reservations built from a patchwork of tribal trust parcels, individual allotments, and fee land. A tribe with approved regulations still needs BIA approval to lease parcels held in trust for individual members.
The authorized categories are business leases, agricultural leases, residential leases, and leases for wind energy evaluation and wind and solar resource development.2Bureau of Indian Affairs. HEARTH Act Leasing Mineral leases for oil, gas, and coal are not covered; those remain under separate federal authority.
Lease Terms the Tribe Can Authorize
Maximum terms depend on the type of lease. Business and agricultural leases can run up to 25 years with two optional 25-year renewals, for a possible 75 years. Residential, public, religious, educational, and recreational leases can be written for up to 75 years outright if the tribe’s approved regulations authorize that length. The Navajo Nation operates under a separate subsection with longer ceilings, including up to 99 years for business and agricultural leases.1Office of the Law Revision Counsel. 25 USC 415 – Leases of Restricted Lands
What Tribal Regulations Must Contain
The regulations a tribe submits must be consistent with the Secretary’s existing leasing rules at 25 CFR Part 162 and must include an environmental review process.3eCFR. 25 CFR Part 162 – Leases and Permits Consistent does not mean identical. A tribe can modify or supersede specific federal provisions as long as the changes apply only to tribal land and do not violate a federal statute or conflict with the government’s general trust responsibility.
Environmental Review
This is the heaviest drafting requirement. Tribal regulations must provide for identifying and evaluating any significant environmental effects of a proposed lease, giving the public a reasonable opportunity to comment, and requiring the tribe to respond to substantive comments before approving the lease. Tribal review effectively replaces the federal NEPA process for HEARTH Act leases. If a project on the leased land receives federal funding from another agency, the tribe can rely on that agency’s environmental review instead of conducting its own.1Office of the Law Revision Counsel. 25 USC 415 – Leases of Restricted Lands
Bonding, Insurance, and Indemnification
The regulations must state whether a performance bond is required and, if so, specify the requirements. They must address insurance. If the regulations use terms like “bond” or “surety,” the tribe needs to define them, though the definitions do not have to match the federal ones in Part 162.4Bureau of Indian Affairs. 52 IAM 13 – Approval of Tribal Leasing Regulations under the HEARTH Act
Every set of regulations must include a hold-harmless provision requiring the lessee to indemnify both the United States and the tribe against losses resulting from the lessee’s use of the land. The lessee’s and any surety’s obligations to the tribe are enforceable by the United States for as long as the land remains in trust or restricted status.4Bureau of Indian Affairs. 52 IAM 13 – Approval of Tribal Leasing Regulations under the HEARTH Act
Leasehold Mortgages
Regulations may authorize mortgages against the leasehold interest, which lets lessees finance improvements. They cannot allow mortgages of the underlying tribal land. Where leasehold mortgages are permitted, the regulations must require that a copy of any default notice sent to the lessee also go to the mortgagee and any surety by certified mail, return receipt requested.5Bureau of Indian Affairs. 52 IAM 13 – Approval of Tribal Leasing Regulations under the HEARTH Act
Other Required Content
Beyond environmental review and financial protections, the regulations need to cover the maximum lease terms the tribe will authorize, rent determination methods, adjustment clauses, the identity of tribal officials authorized to approve or execute lease documents, and whether leasehold mortgages require further tribal action to proceed.5Bureau of Indian Affairs. 52 IAM 13 – Approval of Tribal Leasing Regulations under the HEARTH Act The BIA publishes templates and guidance for tribes preparing a submission.
Submitting Regulations and the 120-Day Review
The tribe files its proposed regulations with the Secretary through the servicing BIA regional or agency office. The statute requires the full text of the regulations. It does not expressly require a tribal resolution, but BIA guidance treats a governing body resolution as a standard component of the package, and most tribes include one to confirm council authorization.
The Secretary has 120 days from submission to approve the regulations or issue a written disapproval identifying the deficiencies.1Office of the Law Revision Counsel. 25 USC 415 – Leases of Restricted Lands The review turns on two questions: are the regulations consistent with the Secretary’s existing leasing rules, and do they include an adequate environmental review process?
A disapproval must come with written documentation setting forth the basis for the decision. Tribes commonly correct identified issues and resubmit. Approval takes the form of a formal letter from the Secretary, after which the tribe has full authority to negotiate and execute surface leases under its own regulations without further Department of the Interior involvement in individual transactions.2Bureau of Indian Affairs. HEARTH Act Leasing
After Approval: Recording and Reporting
Approval does not end the tribe’s relationship with the BIA. The tribe must provide the Secretary with a copy of each executed lease, including amendments, renewals, and leasehold mortgages, along with documentation of lease payments sufficient for the Secretary to discharge the federal trust responsibility.1Office of the Law Revision Counsel. 25 USC 415 – Leases of Restricted Lands
Those documents go to the servicing BIA agency or regional office, where Realty staff encode them into the Trust Asset and Accounting Management System (TAAMS) and forward them to the Land Titles and Records Office for recording. The LTRO issues a certified Title Status Report back to the BIA, which forwards it to the tribe.6Bureau of Indian Affairs. 52 IAM 13 – Approval of Tribal Leasing Regulations under the HEARTH Act BIA policy sets no hard deadline for lease submissions, but the obligation is mandatory and ongoing.
Tax Treatment of HEARTH Act Leases
Leases executed under HEARTH Act regulations carry the same tax shield that applies to any lease of trust or restricted land under 25 CFR 162.017. Permanent improvements on the leased land, activities conducted under the lease, and the leasehold or possessory interest itself are exempt from state and local taxes, fees, assessments, and levies. The tribe with jurisdiction may impose its own taxes on those same interests.7eCFR. 25 CFR 162.017 – What Taxes Apply to Leases Approved Under This Part The federal position is that state taxation of rent payments is functionally a tax on the land and therefore preempted.8Federal Register. HEARTH Act Approval of Shivwits Band of Paiutes Leasing Ordinance
Enforcement and Federal Liability
A party that believes a tribe has violated its own approved regulations must first exhaust available tribal remedies. After that, the party can petition the Secretary of the Interior to review the tribe’s compliance.1Office of the Law Revision Counsel. 25 USC 415 – Leases of Restricted Lands
If the Secretary finds a violation, the available remedies include rescinding the tribe’s approved regulations and reassuming federal responsibility for lease approvals. Before taking that step, the Secretary must issue a written determination identifying the violated regulation, provide written notice to the tribe, hold an on-the-record hearing, and give the tribe a reasonable opportunity to cure the violation.1Office of the Law Revision Counsel. 25 USC 415 – Leases of Restricted Lands
The United States is not liable for losses sustained by any party to a lease executed under tribal HEARTH Act regulations.1Office of the Law Revision Counsel. 25 USC 415 – Leases of Restricted Lands That is the trade-off in the statute: the tribe gains speed and control, and the federal government steps back from the liability that came with its former approval role. The limitation does not diminish the Secretary’s authority to act in furtherance of the trust obligation, including canceling a lease when necessary. For a lessee, disputes under a HEARTH Act lease are resolved through tribal processes and, when appropriate, through the Secretary’s compliance review, rather than through claims against the United States.