Coronavirus State and Local Fiscal Recovery Funds Allocations to Tribal Governments (Update: July 19, 2021)
Summary
A Treasury document, updated July 19, 2021, describing its methodology for allocating Coronavirus State and Local Fiscal Recovery Funds to Tribal governments. It states that the American Rescue Plan Act established the State and Local Fiscal Recovery Funds, providing a combined $350 billion to state, territory, Tribal and local governments, and appropriated $20 billion to Tribal governments, of which $1 billion is allocated equally among eligible Tribal governments and the remaining $19 billion in a manner the Secretary determines. It then sets out how Treasury allocates the $19 billion.
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1. Coronavirus State and Local Fiscal Recovery Funds
Allocations to Tribal Governments
Update: July 19, 2021
The American Rescue Plan Act (the Act) established the Coronavirus State Fiscal Recovery
Fund and Coronavirus Local Fiscal Recovery Fund, which provide a combined $350 billion in
assistance to State, territory, Tribal, and local governments to help turn the tide on the pandemic,
address its economic fallout, and lay the foundation for a strong and equitable recovery. This
document describes Treasury’s methodology for allocating the funds to Tribal governments.
The ARPA appropriates $20 billion to Tribal governments and provides that $1 billion shall be
allocated equally among each of the eligible Tribal governments and the remaining $19 billion
shall be allocated in a manner determined by the Secretary of the Treasury.
Consultation process
In accordance with Treasury’s Tribal consultation policy, Treasury hosted five Coronavirus State
and Local Fiscal Recovery Funds Tribal consultations in late March and early April of 2021 to
garner input from Tribal leaders on allocation methodologies, use of funds, and administrative
functions such as reporting and compliance. Over 1,200 participants attended the consultations
and 85 Tribal leaders provided input. Treasury received over 150 written comments. Treasury
appreciates the participation of all who helped to inform this process.
Allocation determination
ARPA provides that, of the $20 billion of reserved funds in the Coronavirus State and Local
Fiscal Recovery Funds for Tribal governments, “$1,000,000,000 shall be allocated by the
Secretary [of the Treasury] equally among each of the Tribal governments.”1 Treasury will
equally divide the $1 billion among all eligible Tribal governments.
ARPA further provides that, of the $20 billion of reserved funds in the Coronavirus State and
Local Fiscal Recovery Funds for Tribal governments, “$19,000,000,000 shall be allocated by
the Secretary [of the Treasury] to the Tribal governments in a manner determined by the
Secretary.”2 Treasury was guided by several key principles in determining how to allocate these
funds given the limitations on available, consistent economic data across Tribes:
• The methodology should be informed by the Tribal consultations and should reflect
Tribal sovereignty.
• The methodology should be based on data that allows Treasury to calculate Tribal
allocations in a timely manner.
1
See section 602(a)(2) of the Social Security Act, as added by section 9901 of ARPA.
2
See id.
1
• The methodology should be fair and equitable.
Consistent with these key principles, Treasury has determined that it is reasonable and
appropriate to allocate payments using a formula that is based on enrollment and employment
data.
• Tribal leaders recurrently recommended using enrollment and Tribal employment in the
allocation formula.
• As discussed below, the enrollment and employment data are generally available.
• Use of Tribal enrollment and employment information is fair and equitable because these
metrics are expected to correlate generally with a Tribe’s need for funding. Enrollment is
expected to correlate generally with the amount of resources Tribes need to address the
public health impacts from the pandemic. As the Tribal governments suggested during
consultations, Tribal enrollment provides a useful measure for this purpose because it
reflects the scope of Tribal government services and assistance provided both within
Tribal lands and to enrolled members living elsewhere.
• Treasury expects that Tribal employment data from 2019, prior to the pandemic,
correlates with the costs related to the effects of the pandemic, such as the provision of
economic support to those experiencing unemployment or business interruptions
experienced by Tribal governments and their majority-owned entities. The use of Tribal
employment is particularly important due to the disproportionate impact Tribal entities
have experienced to date and the critical role they play in generating revenues to fund
Tribal government essential services and providing job opportunities in their
communities. Treasury also considers Tribal government employment to be a key input
into a government’s ability to effectively deliver services and mitigate the effect of the
pandemic and rebuild Tribal economies. Treasury believes stabilizing and expanding
Tribal employment opportunities is critical to an equitable and strong economic recovery
for Tribal communities.
• Treasury understands that Tribal employment arrangements vary and in some cases are
not fully accounted for in the baseline employment data. Given the importance of
employment to the delivery of Tribal government essential services, Treasury has decided
to adopt a minimum employment allocation to address the range of Tribal employment
relevant to the distribution of funds. The minimum allocation will provide a meaningful
amount of funding to every Tribe regardless of its primary employment structure to allow
each Tribe to address the pandemic’s effect in its Tribal community.
Treasury considered alternative metrics for the formula, including land size, COVID-19
incidence rates, and Tribal expenditures. However, land size and COVID-19 incidence rates
presented significant drawbacks: the varying distribution of land holdings by tribe raised
concerns about the fair and equitable distribution of funds, and the lack of consistent data on
COVID-19 incidence rates by Tribal governments precluded its use in a formula. Treasury also
determined that collecting Tribal expenditure data from Tribes would not provide an advantage
2
as compared to the enrollment and employment information. While Treasury acknowledges that
no formula perfectly captures the particular needs of Tribes, Treasury concluded that a formula
based on enrollment and employment would effectively satisfy the guiding principles in light of
the prevailing circumstances.
Treasury also considered but decided not to use the HUD-Indian Housing Block Grant (IHBG)
formula area population for the Coronavirus State and Local Fiscal Recovery Funds allocation.
Although IHBG formula area population counts may typically be helpful in estimating a Tribal
government’s increased expenditures, which was the statutory standard applicable to Treasury’s
determination of the Coronavirus Relief Fund (CRF) allocation, there are particular
circumstances in which IHBG formula area population may not reflect a Tribe’s need for
funding. Some Tribes do not have formula areas at all, and the formula area population does not
reflect the needs Tribes may have for funding to assist members who live away from Tribal
lands. One of the advantages of the HUD IHBG data is that it accounts for double-counting
between the populations of Alaska Native villages and the shareholders of Alaska Native
Corporations (ANCs), but this advantage does not apply here because ANCs are not eligible for
this program.
Treasury has determined that 65% of the $19 billion in funds ($12.35 billion be allocated based
on enrollment (“Enrollment Allocation”) and that 35% of the $19 billion in funds ($6.65 billion)
will be allocated based on employment (“Employment Allocation”). For the Employment
Allocation, an equitable minimum payment of $1,000,000 will be made to eligible Tribal
governments that confirm or amend their 2019 employment numbers.
As Treasury does not have enrollment or employment data for eligible subcomponents of Tribes,
the Enrollment Allocation and Employment Allocation shall be made to those Tribal
governments for which it has such information. The purpose of the allocations to Tribal
governments is to support services provided to their populations including services provided to
subcomponents of a Tribe. Treasury expects that Tribal governments will distribute funds to
subcomponents of the Tribe if those subcomponents have recognized governing bodies.
Treasury is adopting a different allocation with respect to the Coronavirus State and Local Fiscal
Recovery Funds from the one Treasury adopted with respect to the CRF established by the
CARES Act. The CARES Act provided a different statutory standard, requiring that the
allocation be adopted “based on increased expenditures of each . . . Tribal government (or a
Tribally-owned entity of such Tribal government) relative to aggregate expenditures in fiscal
year 2019.” Rather than focusing on developing the best proxy for increased expenditures,
Treasury has decided with respect to the Coronavirus State and Local Fiscal Recovery Funds to
focus on the principles outlined above. Treasury considered but determined, for the reasons
discussed above, not to refer to HUD IHBG and expenditure data for purposes of the
Coronavirus State and Local Fiscal Recovery Funds allocation.
Tribal enrollment data
For Tribal enrollment data, Treasury will use self-certified enrollment numbers provided by
Tribes. In April 2021, the Bureau of Indian Affairs collected enrollment numbers from Tribal
3
governments and communicated to Tribes that this information may be shared with other federal
agencies. The Bureau of Indian Affairs has shared this data with Treasury. For the small subset
of Tribes that did not provide self-certified enrollment data, Treasury will use enrollment data
submitted last year under the CRF.3
Tribal employment data
Treasury considers Tribal employment data from 2019 to be relevant for assessing the impact of
the pandemic on Tribal economies and surrounding communities. When distributing funds from
the CRF in 2020, Treasury requested that, for each calendar quarter of 2019, Tribal governments
submit the number of their employees and the number of employees of any entity of which the
Tribal government owns at least 51% of the ownership interests.
Treasury will use the Tribal employment information submitted to Treasury for the CRF in
distributing funds based on employment. Tribes will be required to confirm their 2019
employment numbers do not need to be amended. In the event 2019 employment numbers need
to be amended, or if a Tribe did not submit employment information to Treasury under the CRF,
Tribes will have the opportunity to do so prior to the second payment by submitting information
pursuant to the employment instructions contained in the “Guidance to Tribes for Completing
Supplemental Request for Information.”4
Enrollment Allocation formula
The Enrollment Allocation will result from Treasury calculating the pro-rata payment for each
Tribal government, based on self-certified enrollment numbers.5
Employment Allocation formula
The Employment Allocation will result from Treasury calculating pro-rata payments for each
Tribal government based on the Tribe’s share of total employment (Tribal government plus
Tribal entities) across Tribal governments. In particular, Treasury will take the following steps:
Step 1. By Tribe, sum reported Tribal employment and Tribal entity employment for
each quarter of 2019.
Step 2. Calculate the non-zero annual average of the summed quarters one through four
obtained in Step 1.
3
Five eligible Tribal governments did not submit enrollment data last year or this year. For these Tribal
governments, Treasury will use enrollment data from HUD’s IHBG program.
4
See Employment Information Section: https://home.treasury.gov/system/files/136/Tribal-Employment-and-
Expenditure-Submission-Instructions.pdf
5
More specifically, this step sums Tribal enrollment to obtain total Tribal enrollment for all Tribes combined. Each
Tribe’s enrollment is then divided by total Tribal enrollment to obtain the share of enrollment for each Tribe. The
tribal share is then multiplied by the amount being allocated, 65% of $19 billion, or $12.35 billion.
4
Step 3. Calculate the pro-rata6 payment for each Tribal government, based on the annual
employment averages obtained in Step 2.
Step 4. Assign a minimum payment of $1,000,000 to those Tribal governments that
would otherwise receive less than that amount under Step 3.
Step 5. For Tribal governments that would receive a payment greater than the minimum,
a pro-rata adjustment is made so that the total amount for all Tribes does not exceed
$6.65 billion.
Payment Schedule
Treasury will make two payments to eligible Tribal governments. The initial payment will
include an equal allocation for each Tribal government from the $1 billion and the Tribal
government’s pro rata share of the 65% of $19 billion based on tribal enrollment The second
payment will include the Tribal government’s pro rata share of the remaining 35% of the $19
billion based on Tribal employment. Treasury expects the second payment to be made soon after
Tribal governments confirm their 2019 employment numbers previously submitted to Treasury
in 2020.
To receive the first payment, Tribal governments must submit their information online through
the Treasury Submission Portal. After a Tribal government’s submission is received, it will take
approximately 4-5 business days to review and process. The point of contact that a Tribal
government designates in its online submission will receive status updates. Once the information
and documentation submitted is determined to be complete and accurate, this point of contact
will receive information regarding the timing and amount of the first payment. As previously
noticed, the deadline to complete the first submission was June 21, 2021 at 11:59 PM PST.
Treasury will make a second payment to Tribal governments in respect of the Employment
Allocation after Tribal governments confirm their 2019 employment counts. In late-June, Tribal
governments will receive a notification requesting that they log into the Treasury Submission
Portal to confirm or amend their 2019 employment numbers previously submitted to Treasury in
May 2020 in connection with the CARES Act Coronavirus Relief Fund.
The deadline for confirming or amending a Tribal government’s 2019 employment
numbers is extended from July 9, 2021 to July 23, 2021 at 11:59 PM PST7. If a Tribal
government does not confirm or amend employment numbers by that deadline, the Tribal
government will not be eligible to receive a share of the employment allocation.
6
More specifically, this step sums the non-zero annual employment averages obtained in Step 2 for each Tribe that
confirmed or amended their 2019 employment numbers to obtain total annual average employment for all Tribes
combined. Each Tribe’s Step 2 employment average is then divided by that total average employment amount to
obtain the share of total employment for each Tribe. This tribal share is then multiplied by the amount being
allocated, 35% of $19 billion, or $6.65 billion.
7
This document was updated on June 30, 2021 to reflect the extension of the employment confirmation deadline and
the minimum employment payment.
5
Following the deadline, Treasury will calculate each Tribal government’s pro rata share of the
Employment Allocation for those Tribal governments that confirmed or submitted amended
employment numbers. In August, Treasury will communicate to Tribal governments the amount
of their portion of the Employment Allocation and the anticipated date for the second payment.
6
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