Dear USET/USET SPF Family,
We write to make you aware that the recent bipartisan agreement on $10 billion in COVID-19 supplemental funding for vaccines, therapeutics, and testing is being offset with remaining unspent COVID relief funds -- including funding for Tribal Nations. This is completely unacceptable, given the chronically unmet federal obligations to Tribal Nations and the devastating impact of COVID-19 on our communities.
The proposed language rescinds $887 million from the Local Assistance and Tribal Consistency Fund, which provides a total of $500 million in flexible funding to eligible Tribal Nations during FY 2022 and 2023. Under the proposed amendment, Tribal Nations would receive $221.75 million less than previously allocated – a reduction of nearly 45 percent.
The proposed legislation also intends to rescind or strike more than $2.5 billion from the State Small Business Credit Initiative (SSBCI). Tribal Nations first gained access to the SSBCI under the American Rescue Plan Act in 2021, and the deadline for Tribal Nations applying to the program is still three months away. The reduction in SSBCI funding, therefore, has the potential to impact Indian Country, particularly given that technical assistance funding is being cut and, as first-time participants in the SSBCI, Tribal Nations are more likely to require technical assistance than other parties.
While some funds remain unspent, it is certainly not because they are unnecessary. Tribal Nations have encountered many barriers to accessing these and other relief dollars, including onerous reporting, matching, and other requirements that don’t reflect our unique circumstances and relationship with the U.S. government, inflexibility in funding uses, delays in funding distribution, and lack of capacity to apply for numerous funding streams.
While the COVID-19 supplemental funding bill has briefly stalled in the Senate over immigration issues, it could be taken up by both chambers of Congress very soon. Yesterday, USET SPF sent a letter to Congressional Leadership urging them to reconsider any cuts to the funding identified for Tribal Nations and instead fight to ensure we are meaningfully included in any final agreement. We strongly encourage our member Tribal Nations to send similar letters as soon as possible to your representatives and senators. To that end, we enclose a template letter for your use.
For more information, please contact Liz Malerba, USET SPF Director of Policy and Legislative Affairs, at lmalerba@usetinc.org
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