Oneida Nation Removes Business Leader Over ICE Contracts, Citing Values and Sovereignty

By Joe Morey

Rez Life Weekly Editor

The Oneida Nation has removed the former president and chief executive officer of its economic development group after one of its companies entered into contracts with U.S. Immigration and Customs Enforcement, a move that tribal leaders and citizens said conflicted with the nation’s values and culture.

On Thursday, Oneida ESC Group announced that Matt Kunstman had been appointed interim president and CEO effective January 5, replacing Jeff House, who was terminated following action by the Oneida Business Committee.

The leadership change followed the committee’s decision to remove House after it learned that Oneida-Stantec JV LLC, one of the group’s subsidiaries, had approved a nearly $3.8 million contract with ICE in December. That agreement followed an earlier $2.6 million ICE contract awarded in September, bringing the total value of ICE-related work to more than $6 million.

According to Oneida Nation officials, the contracts involved engineering services and maintenance inspections of federal facilities.

Apology Issued After Backlash

Following public backlash from tribal members and community leaders, House issued an apology on January 2 during a video broadcast and in a written letter addressed to the Oneida Nation community.

In the video statement, House said he regretted approving the ICE contract and acknowledged it was a mistake.

“I know now it was a huge mistake,” House said during the broadcast. “You may not agree or appreciate the decision, but I do want you to know that when I made the decision, the scope of work was really about inspecting facilities, making sure they’re up to code, making sure that they meet humane standards, making sure that it’s properly engineered.”

House wrote in his apology letter that the Oneida ESC Group never intended to support or advance ICE enforcement operations. He said he was “appalled” by ICE activities and emphasized that the work was meant to focus on infrastructure compliance and safety standards, not immigration enforcement.

“Our intent was never to support or advance ICE operations,” House wrote. “Our goal was to ensure that any facilities constructed would meet rigorous safety standards, be humanely habitable, respectful and comply with public health requirements. However, after further discussions and gaining a deeper understanding of the broader implications, I recognize that this decision was wrong. I sincerely apologize for placing the Nation in this position.”

House said in the letter that they took several actions to strengthen their processes to ensure that OESC’s actions align with both their corporate values and the values of the Oneida Nation.

Tribal Leadership Says Contract Was Unknown

Oneida Nation Chairman Tehassi Hill said during the January 2 broadcast that he and the Oneida Business Committee were unaware of the ICE contract at the time it was approved and were not involved in the day-to-day operations of the tribal business entities.

“I also stand strong in my words and conviction that the business venture does not align with the nation’s values, our culture and who we are as Haudenosaunee people,” Hill said. “It is something the committee would have never entertained had it been made aware of this.”

Hill emphasized that the contract did not reflect the nation’s stance on immigration enforcement or its responsibility to Indigenous communities who have been disproportionately impacted by ICE actions.

Community Reaction and Concern

According to reporting from Wisconsin Public Radio (WPR), tribal members voiced strong opposition to the contracts, including Rebecca Webster, an Oneida Nation citizen and former senior attorney for the tribe.

Webster told WPR she was shocked when she learned of the agreements and questioned whether ICE was operating within the bounds of the law.

“For anybody affiliated with the Oneida Nation to enter into a contract that would seemingly support what they’re doing, it runs contrary to the things that I believe in,” Webster said. “We shouldn’t do anything to support the current way ICE is handling our relatives and our community members.”

Webster said the situation underscored the need for clear separation between tribal government and tribally owned corporations in order to protect the nation’s sovereignty and values.

Leadership Changes and Oversight

In response to the controversy, the Oneida Business Committee replaced all members of the board overseeing Oneida ESC Group and appointed Debra Powless as interim board manager. Powless then named Kunstman as interim president and CEO.

“I am honored to be named Interim President and CEO and grateful for the trust placed in me,” Kunstman said in a statement released by the group.

The committee also passed a resolution requiring all tribally affiliated companies to review current and pending federal contracts and ensure alignment with Oneida Nation values. The resolution mandates that those values be incorporated into corporate social responsibility policies.

Financial and Legal Implications

According to WPR, House said terminating the December ICE contract should not result in financial penalties and that the tribe would be insulated from potential lawsuits.

However, he acknowledged that canceling the earlier September contract could be more complicated because work had already begun. House said defaulting on that contract could potentially jeopardize the company’s future.

House also said that Oneida ESC Group companies hold thousands of contracts with various federal agencies, including Customs and Border Protection, the Department of Defense, and the Federal Bureau of Prisons.

According to House, approximately 80 percent of the group’s revenue comes from federal government contracts. The group reported $177 million in revenue during fiscal year 2025.

House said the decision to engage in federal contracts was influenced in part by economic pressure, noting that the Trump administration had threatened to halt funding and audit contracts held by tribal enterprises.

A Broader Trend Among Tribal Nations

The Oneida Nation is not the only tribal nation to distance itself from ICE contracts.

In December, Prairie Band Potawatomi Nation Chairman Joseph “Zeke” Rupnick announced that his nation had divested from a $29.9 million contract involving the conceptual design of ICE facilities, citing concerns over the agency’s actions and alignment with tribal values.

For Oneida leaders and citizens, the decision to sever ties with ICE represents more than a business dispute. It reflects an ongoing reckoning over how tribal nations navigate economic development while upholding sovereignty, cultural principles, and responsibility to Indigenous peoples who continue to face disproportionate harm from federal enforcement policies.

As Chairman Hill stated, the controversy has made clear that economic opportunity cannot come at the expense of who the Oneida people are.