To:
National Indian Gaming Association Member Tribes
From:
Ernest L. Stevens, Jr., Chairman Jason Giles, Executive Director Danielle Her Many Horses, Deputy Director/General Counsel
Re:
Formula and Eligible Uses of the $8 billion Tribal Coronavirus Relief Fund
Date:
April 7, 2020
On April 2, 2020, the Treasury Department held its initial consultation with Indian tribes and the Interior Department regarding implementation of the Coronavirus Relief Fund (CRF) that was included in the CARES Act. Treasury made clear that the agency will distribute the entire $8 billion to tribal governments from the CRF by April 24, 2020. A second consultation is scheduled for Thursday, April 9, 2020. Two critical issues remain regarding the CRF for Indian tribes: (1) how will Treasury allocate the distribution; and (2) what expenditures will be considered “necessary” under the law. Indian gaming operations nationwide have closed their doors to help protect Native communities and to stop the spread of the virus. As Rep. Norma Torres stated as part of the attached House colloquy on the tribal portion of the CRF, tribal government and tribally-owned entity closures “have been nothing short of catastrophic. The very resources that had been used to fund the tribal government and provide services virtually evaporated overnight.” With no revenue coming in, tribal governments and tribally-owned entities continue to face financial obligations to their communities in the form of essential government services; their employees; and their lenders and other business partners. NIGA’s Member Tribes have shared several priorities for uses of the CRF: maintaining funding levels with FY2019 for tribal government services; retaining ties to their employees either through using the Fund to make payroll or to provide benefits to furloughed employees; and meeting financial obligations (such as servicing debt) to keep Indian gaming operations viable so that employees have jobs to return to when the pandemic is defeated. NIGA has repeatedly testified before Congress that Indian gaming is first and foremost about jobs. Nationwide, Indian gaming is a proven job creator. In 2018, our industry generated more than 310,000 direct jobs. Indian gaming has provided many Native Americans with their first opportunity at work at home on the reservation. Just as importantly, jobs on the reservation generated by Indian gaming are bringing back entire families that had moved away. To acknowledge the importance of job creation – and retention during this global pandemic – the Treasury Department’s formula or method of allocation and distribution of the CRF to Indian tribes must factor in tribal employees and wages.
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