Currents

Federal Judge Blocks Treasury Dept. from Distributing CARES Relief Funds to Alaska Native Corporations

Details By Levi Rickert April 27, 2020

WASHINGTON — A federal district court judge ruled Monday that Treasury Secretary Steven Mnuchin cannot disburse any of the $8 billion of CARES Act relief funding intended for tribal governments to for-profit Alaska Native Corporations.

U.S. District Judge Amit P. Mehta

In a ruling issued this evening, U.S. District Court Judge Amit P. Mehta granted a preliminary injunction to prevent Mnuchin from disbursing any of the Title V funds to any ANC. The ruling is a favorable outcome for 18 tribes, including six from Alaska, that had filed three separate lawsuits to block Mnuchin from distributing funds to the shareholder-owned ANCs.

While the court enjoined the Treasury Secretary from sending funds to ANCs, Mehta’s ruling did not direct Mnuchin to disburse the entire $8 billion in emergency relief funds to the 574 federally recognized tribes.

In the ruling, Mehta writes: “Enjoining the Secretary from disbursing funds to ANCs remedies the immediate harm that Plaintiffs face—the payment of Title V funds to ANCs that will be unrecoverable once made. The added relief that Plaintiffs seek—an order directing the Secretary to distribute the full $8 billion only to federally recognized tribes—is greater than necessary to protect them against that injury. To be sure, the more limited remedy could mean that Plaintiffs will receive a lesser share of Title V funds in the short term, if the Secretary decides to award some money to ANCs and withholds those payments to comply with the court’s order. But at least such funds will remain available for later disbursement to federally recognized tribes for coronavirus-related public services, if the court ultimately enters a final judgment in Plaintiffs’ favor.”

The Department of Treasury indicated last Friday that it would not distribute any of the funds prior to Tuesday, April 28.

After the decision, tribal organizations, including the National Congress of American Indians (NCAI), released statements.

"NCAI is encouraged by the U.S. District Court’s decision to side with tribal governments by issuing a preliminary injunction that will halt distribution of CARES Act funding to non-governmental entities," commented NCAI President Fawn Sharp to Native News Online. "Tribal nations should not have to wait any longer to receive relief funding as they battle the coronavirus pandemic. We again call on Congress and the Administration to shift focus back to distributing much needed funding to Indian Country.”

"Federal District Court Judge Mehta made it clear that the Alaska Native Corporations are not considered governments," Dante Desiderio, executive director of the Native American Finance Officers Association, told Native News Online this evening. "This is a strong and clear win for tribal governments and marks the end of an ill-timed and bold challenge by Alaska corporations for government funds during a pandemic. We are hopeful that tribal and Alaska village governments will receive the much needed funds quickly as was intended by Congress."

The Navajo Nation, one of tribes, that joined the lawsuit last Thursday responded to the judge's decision.

“Federally-recognized tribes stood together to oppose the actions of the Department of the Treasury in another attempt to undermine the first citizens of this country, but our voices were heard and Indigenous people prevailed today! I’m sure there will be other attempts to direct these funds away from tribes, but we need to remain strong in our position and continue to ask our congressional delegation to continue fighting alongside us for our fair share of CARES Act funding,” President Jonathan Nez said.

Two associations representing the Alaska corporations weighed in with statements on Monday evening. The ANCSA Regional Association (ARA) and Alaska Native Village Corporation Association (ANVCA) released the following joint statement regarding Monday’s ruling to Native News Online:

“We are disappointed in this decision. We still believe our position will find success in the court system, as the law is clear. This will mean a delay in necessary resources and economic assistance for Alaska Native people in our communities and our state. However, Alaska Native people have a history of resilience and strength. Together we will prevent the spread of COVID-19, care for those who get sick, and repair our economies."

This is a developing story and will be updated.

RELATED: Federal Judge to Expected to Rule on Distribution of CARE Act Funds on Monday

Treasury Department Takes Stand Against Tribes on CARES Act Funding; Hearing Today in D.C. Federal Court

3 South Dakota Sioux Tribes File an Injunction in Federal District Court to Stop Funding to Alaska Native Corporations

Tribes File for Temporary Restraining Order to Block CARES Funding to Alaska Native Corporations

Tribes Sue Trump Administration to Stop CARES Act Funding to Alaska Native Corporations

Support Independent Indigenous Journalism Native News Online is an independent, Indigenous-led newsroom with a crucial mission: We want to change the narrative about Indian Country. We do this by producing intelligent, fact-based journalism that tells the full story from all corners of Indian Country. We pride ourselves on covering the tribes you may have never heard of before and by respecting and listening to the communities we serve through our reporting. As newsrooms across the country continue to shrink, coverage of Indian Country is more important than ever, and we are committed to filling this ever-present hole in journalism.



Because we believe everyone in Indian Country deserves equal access to news and commentary pertaining to them, their relatives and their communities, the story you’ve just finished was free — and we want to keep it that way, for all readers. But we hope it inspires you to make a gift to Native News Online so that we can continue publishing more stories that make a difference to Native people, whether they live on or off the reservation. Your donation will help us keep producing quality journalism and elevating Indigenous voices. Any contribution of any amount, big or small, gives us a better, stronger future and allows us to remain a force for change. Donate to Native News Online today and support independent Indigenous journalism. Thank you. Support Native News Online Subscribe to the daily newsletter

About The Author Author: Levi Rickert Levi Rickert (Prairie Band Potawatomi Nation) is the founder, publisher and editor of Native News Online. He can be reached at [email protected]