Recovery Act Includes $2.5 Billion for Tribes, Indian Country and Bureau of Indian Affairs

The American Recovery and Reinvestment Act of 2009—commonly known as the economic stimulus package—includes approximately $2.5 billion for Indian tribes, Indian country and the Bureau of Indian Affairs (BIA).

Under the act, tribes are eligible to receive funds for projects related to tribal economic development, reservation construction and upgrades, housing, health care and law enforcement. The act also provides funds for upgrades to BIA facilities.

In addition, Indian tribes are permitted to contract and compact to build projects and create reservation jobs pursuant to the Indian Self-Determination and Self-Governance acts. And perhaps most significantly, the act increases tribal authority to issue tax-exempt bonds—which generally will result in the tribal issuer paying lower interest rates than with taxable bonds.

The following is an overview of how funding will be distributed.

Allocations for Specific Purposes

In several instances, the act sets aside a certain number of dollars for particular purposes, such as $510 million for Indian housing block grants and $327.25 million for tribal roads and bridges.

In other instances, rather than setting aside a certain amount for certain purposes, the act makes tribes—among other entities, such as states and local governments—eligible to obtain certain act dollars. For example, for the Early Head Start program, tribes can apply for and are eligible to receive a portion of the overall $1.1 billion program.

Tribal Economic Development Bonds

The act authorizes tribes to issue $2 billion in tax-exempt Tribal Economic Development Bonds. The $2 billion is the total amount that all tribes nationwide may issue and is allocated by the secretaries of Treasury and Interior.

Bonds may be issued by tribes or tribal instrumentalities to create economic development, with two exceptions:

· Tribes may not use the bond proceeds to finance any building or property used in connection with class II or class III gaming (as defined in the Indian Gaming Regulatory Act).

· Tribes may not use the bond proceeds to finance any facility outside of that tribe's "reservation"—broadly defined to include "Indian country" lands under 18 U.S.C. 1151, Indian reservations, tribal or individual trust or restricted fee lands, public domain Indian allotments, former Indian reservations in Oklahoma, and land held by incorporated Native groups, regional corporations, and village corporations under the Alaska Native Claims Settlement Act.

Qualified School Construction Bonds

Tribes may also issue School Construction Bonds for up to $400 million ($200 million in 2009 and $200 million in 2010) for the construction, rehabilitation and repair of schools funded by the BIA. The $400 million is allocated by the secretary of the Interior.

Senate Indian Affairs Committee Summary of Recovery Act Provisions

$510 Million for Indian Housing—U.S. Department of Housing and Urban Development

• Indian housing block grants (HUD)—$510 million to rehabilitate and improve energy efficiency in houses maintained by Native American housing programs

$915 Million for Indian Health Care Services and Facilities

• Indian health facilities—$415 million

• New construction—$227 million

• Maintenance and improvements—$100 million

• Sanitation facilities—$68 million

• Medical equipment—$20 million

• Indian health services—$85 million for health information technology

At least $10 Million for Education; Eligibility for Portion of $1.1 Billion

• Head Start—$10 million tribal set-aside

• Early Head Start—tribes eligible for a portion of the $1.1 billion program

• Special education (IDEA)—tribes eligible for a portion of the $12.2 billion program

• Impact aid—targeted funding to military and Indian reservations from $100 million program

$327.25 Million for Tribal Roads and Bridges—U.S. Department of Transportation

• Indian reservation roads—$310 million

• Tribal transit—$17.25 million

$490 Million for Improvements to Bureau of Indian Affairs Facilities and Programs

• BIA Office of Indian Programs—$40 million for housing improvement and workforce and training

• BIA construction—$450 million for schools, roads repair, jails, irrigation and dams

At Least $247.5 Million for Public Safety and Justice

• Department of Justice Grants—$225 million for Indian jails construction

• DOJ violence against women prosecution grants—$22.5 million through a 10 percent tribal set-aside

• DOJ Community Oriented Policing Services—$1 billion program for which tribes are eligible

At Least $236 Million for Energy and Water

• Bureau of Reclamation Tribal Water Projects—$60 million for water intake and treatment facilities

• Safe drinking and clean water revolving funds—$120 million through permissive set-aside

• Tribal energy efficiency and conservation block grants—$56 million through 2 percent tribal set-aside

• Weatherization Assistance Program—tribes are eligible to compete for competitive grants under the $5 billion program

$28 Million for Other Programs

• Indian reservation food distribution—$5 million administered by USDA

• Native elder nutrition—$3 million administered by DHHS under Older Americans Act, Title IV

• BIA Indian Loan Guarantee Program—$10 million

• Tribal community development financial institutions—$10 million administered by U.S. Treasury