The American Rescue Plan Delivers $31 Billion to Tribal Governments President Biden signed the American Rescue Plan (“Rescue Plan” or “ARP”) into law on March 11, 2021. The law is delivering more than $31.2 billion – by far historic levels of funding – to Indian Country to help address the disparate impacts of the COVID-19 pandemic. Included in these funding provisions are several set-asides for tribal governments. For more than two decades, the National Indian Gaming Association has advocated to end federal programs that force tribal governments to seek “pass-through” funding from the states, and instead establish set-asides that provide direct funding to Indian tribes. The set-asides included in the American Rescue Plan set historic precedent for all of Indian Country and strengthen tribal sovereignty as well as the respect for the governmental status of Indian tribes. Federal resources delivered to tribes through the American Rescue Plan seek to address the root causes for the disparate health and economic impacts of the pandemic on Native communities. The Rescue Plan includes a revised version of the Coronavirus Relief Fund – renamed the Fiscal Recovery Fund, a third round of the Paycheck Protection Program, and a tribal set-aside from the reauthorized Small Business Credit Initiative. The law also provides more than $6 billion to improve Indian health care systems - including vaccine distribution, telehealth and other health and mental health care-related needs; $1.1+ billion for Native education programs; more than $1 billion for tribal child care programs; more than $1 billion for Indian housing, rental assistance and assistance to homeowners; $900 million for BIA programs and services focused on child welfare, social services, and public safety; and $20 million to address the impacts on Native languages and the need for increased language preservation programs; among many other resources. The items listed below provide a more detailed description of major tribal provisions and set-asides included in the American Rescue Plan. Key Tribal Provisions in the American Rescue Plan $20 billion set-aside for Tribal governments in the Fiscal Recovery Fund. The largest program for Indian tribes is the Coronavirus Fiscal Recovery Funds (FRF)(formerly the CARES Act - Coronavirus Relief Fund (CRF)). The $20 billion set aside for Tribal governments represents 5.7 percent of the total amount of funding that will be distributed to all governments under the Fiscal Recovery Fund. The Fiscal Recovery Fund, like the CRF, allocates funding to tribal, state, and territorial governments. The FRF improves on the former provision by clarifying that funding will only be allocated to federally recognized tribal governments. The FRF definition of “Indian tribe” removes the confusing reference to the Indian Self-Determination Act, and instead references the Federally Recognized Tribal List Act. Importantly, the use of FRF funding is more flexible to better respect the local decision-making of governments to respond to the health and economic impacts of the pandemic. The Rescue Plan’s FRF appropriated $20 billion to Tribal governments. It directs the Treasury Department to allocate $1 billion equally among each of the eligible Tribal governments. The remaining $19 billion shall be allocated in a manner determined by the Secretary of the Treasury. The Treasury Department is distributing the $20 billion to Tribal governments in two rounds. The first round of funding, totaling $13.1 billion has been allocated based on tribal population data. The second round of funding was based on tribal employment data. The second round of allocations were delivered in August. A related issue under review is how Tribal governments can use the FRF funds. The text of the Rescue Plan makes clear that the use of FRF funds is more flexible than the CARES Act’s Coronavirus Relief Fund. The Treasury Department has identified an initial list of permissible uses, which can be found here: https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal- governments/state-and-local-fiscal-recovery-fund/tribal-governments
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