Dr. Ruiz Pushes Treasury Department to Provide Emergency Funding to Tribal Governments

Washington, DC – Congressman Raul Ruiz, M.D., Rep. Ken Calvert (R-CA) and 28 other bipartisan members of California's Congressional Delegation wrote to Treasury Secretary Mnuchin and Department of Interior Secretary Bernhardt on Wednesday urging them to support tribal governments by quickly disbursing funds from the CARES Act.

"Tribal nations have been especially hard hit by the impacts of the COVID-19 pandemic because tribal businesses – not taxes – fund their governments," saidDr. Ruiz. "It is essential that the $8 billion Congress provided for tribal governments in the CARES Act is distributed based on tribal consultation and in a manner that recognizes the unique challenges tribal governments face."

"I am pleased that Congress included $8 billion to support Tribal governments grappling with the public health and economic impacts of COVID-19," said Ken Calvert. "This pandemic has placed a unique strain on Tribal governments that rely almost exclusively on revenues from economic activity to fund critical governmental services such as health care, law enforcement, and social services. I thank Congressman Ruiz and my California colleagues for supporting this important funding, and I urge the Treasury Department to disburse these funds expeditiously."

Tribal governments do not have a tax base to fund government operations the way states and municipalities do. As a result, tribes often rely on business ventures and other economic drivers to fund government operations, including health care programs, social programs, and law enforcement. Social distancing recommendations and statewide stay-at-home orders have meant that not only are tribal businesses unable to pay their employees, but they are unable to fund basic government operations.

Title VI, Section 601(c)(7) of the CARES Act provided $8 billion for tribal governments for the loss of revenues and increased expenditures as a result of the COVID-19 pandemic.

You can view the full text of the letter below.

Background

The Coronavirus Aid, Relief, and Economic Security (CARES) Act included the following:

• A $150 Billion State and Local Coronavirus Relief Fund: Creates a $150 billion State and Local Coronavirus Relief Fund to provide states and localities additional resources to cope with the coronavirus pandemic. This Fund includes an $8 billion set-aside for tribal governments.

Additional funding for tribal nations in the CARES Act includes:

Health Care

• $1.032 billion for the Indian Health Service (IHS) Services Account
  • Includes up to $125 million for IHS Facilities
  • $125 million may be transferred to and merged with the ‘‘Indian Health Service, Indian Health Facilities'' account
• $1.5 billion for CDC grants and cooperative agreements of which Indian Tribes, Tribal Organizations, and Urban Indian Health Organizations are eligible to apply; and
• Minimum $125 million for CDC set-aside funding directly to Indian Tribes, Tribal Organizations, and Urban Indian Health Organizations
• Minimum $15 million in set-aside funding for Tribes and Tribal organizations under Substance Abuse and Mental Health Services Administration (SAMHSA)

Economic Relief

• Coronavirus Economic Stabilization Act of 2020
  • Provides $454 billion for loans, loan guarantees, and investments in support of the Federal Reserve's lending facilities to eligible businesses, states (Indian Tribes are included), and municipalities
• Keeping American Workers Paid and Employed Act
  • Makes Tribes eligible for the Small Business Act Section 7(a) Paycheck Protection Program, which provides 100% federal loan guarantees up to $10 million to cover costs like employee salaries, paid sick leave/medical leave, mortgages/rents, and employee health insurance premiums. Includes Tribal businesses
• Emergency Unemployment Relief for Governmental Entities and Nonprofit Organizations
  • During the period of the national emergency, the federal government would pay a 50 percent reimbursement for the cost of unemployment compensation paid by Indian Tribes that are reimbursement-option employers
• Emergency Unemployment Relief for Governmental Entities and Nonprofit Organizations
  • During the period of the national emergency, the federal government would pay a 50 percent reimbursement for the cost of unemployment compensation paid by Indian Tribes that are reimbursement-option employers
• Emergency Economic Injury Disaster Loan (EIDL) Grants—Tribal small businesses are eligible.

Letter Text:

Dear Secretaries Mnuchin and Bernhardt:

On behalf of the nearly 120 tribal governments in the state of California, we write to ask for your expeditious disbursement of the funds provided under Section 5001 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. It is the intent of Congress for this fund to support Tribal governments experiencing lost revenue due to depressed economic activity. This funding is critical to ensuring tribal governmental services remain intact, directly impacting the health and safety of Tribal members.

As you know, Congress provided tribal governments $8 billion in the CARES Act to support expenditures associated with the COVID-19 public health emergency. This funding provides a critical lifeline to Tribes across the nation due to the nature of funding for Tribal governmental services.

Tribal government enterprises are foundationally distinct from commercial enterprises because these corporate revenues support essential governmental services, such as healthcare, law enforcement, and social services, which are more critical now than ever before. In addition, Tribal budgets are based almost exclusively on income from economic activity, not taxes. As a result, dramatic swings in revenue and spikes in expenses put Tribal governments in a particularly precarious position.

Without a tax base to call upon, tribal governmental services are uniquely vulnerable to the nearly complete disappearance of revenues as a result of the public safety measures taken to contain the spread of COVID-19. As such, this funding will provide tribal government employers the ability to maintain critical government services and continue supporting their workforce of nearly 65,000 individuals in our state.

It is our understanding that you will be conducting a joint consultation with tribal governments on April 2, and we wholeheartedly support your direct outreach to tribal governments. It is our hope that you will use the feedback you receive from that consultation, as well as the recommendations included in the attached letter from the National Congress of American Indians, to guide your expedited rulemaking and disbursal of these funds. Thank you for your extraordinary efforts to protect our country and economy during this difficult time.

Sincerely,

Signed by: Pete Aguilar, Nanette Diaz Barragán, Julia Brownley, Salud Carbajal, Tony Cárdenas, Gilbert R. Cisneros, Jr., Col. Paul Cook, Ret., J. Luis Correa, Jim Costa, TJ Cox, Anna G. Eshoo, Jared Huffman, Doug LaMalfa, Mike Levin, Ted Lieu, Alan Lowenthal, Tom McClintock, Jerry McNerney, Grace F. Napolitano, Devin Nunes, Scott Peters, Katie Porter, Harley Rouda, Linda T. Sanchez, Mark Takano, Mike Thompson, Norma J. Torres, Juan Vargas

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