October 3, 2021 - WASHINGTON, D.C. — Last week, U.S. Senators Alex Padilla (D-Calif.), Elizabeth Warren (D-Mass.), Ron Wyden (D-Ore.), Jeff Merkley (D-Ore.), and Steve Daines (R-Mont.) urged U.S. Department of Treasury Secretary Janet Yellen to establish an Office of Tribal Affairs improve the Department’s tribal consultation process, strengthen the Department’s relationship with tribal nations, and provide more in-house expertise on matters affecting tribal nations.

Senator Alex Padilla (D-Calif.)

Senator Padilla has been a leading voice advocating for improved tribal consultation and elevating Tribal voices in federal decision-making. California has the largest number of Tribes in the lower 48 states, with 109 distinct federally recognized Tribal governments and a population of over 723,225 American Indians.

Treasury has long had a role in matters, including tax and finance issues, that have seriously affected the welfare and sovereignty of some tribal nations. This role has increased over time and has become extremely important during the COVID-19 pandemic after Congress charged Treasury with the crucial responsibility of disbursing to tribal nations billions of dollars in relief funds. The Internal Revenue Service, the Office of the Comptroller of the Currency, the Community Development Financial Institutions Program, and the Office of Recovery Programs are just some of the Treasury components that make decisions affecting tribal nations with regard to COVID-19 relief implementation, tribal economic development, taxation and tax incentives, capital finance and capital needs, trade policy, and more.

“The recent tribal consultations and interactions between Treasury and tribal nations underscore the need for sufficient, dedicated, in-house expertise at Treasury on tribal policy matters. The establishment of such an office has support from Indian Country and would improve Treasury’s ability to fulfill its trust responsibilities to respect the nation-to-nation relationship between the federal government and tribal nations,” wrote the lawmakers.

President Biden’s January 26, 2021 memorandum affirms the importance of tribal consultation—and states that it is his “priority” to make “regular, meaningful, and robust consultation with Tribal Nations cornerstones of Federal Indian policy.” Treasury has acknowledged this commitment as well; the Deputy Secretary of the Treasury has “reiterated the importance of the nation-to-nation consultation process.” An Office of Tribal Affairs would help achieve this.

“Although the pandemic has underscored the urgency of Treasury having proper in-house capacity to address tribal issues appropriately, this need existed before the pandemic and before this administration, and, absent institutional changes at the Department, it will continue to exist after the pandemic and after this administration,” wrote the lawmakers.

The senators have requested a response no later than October 13, 2021.

Full text of the bipartisan letter can be found HERE and below:

Dear Secretary Yellen:

We write to ask that the Department of the Treasury establish an Office of Tribal Affairs. The recent tribal consultations and interactions between Treasury and tribal nations underscore the need for sufficient, dedicated, in-house expertise at Treasury on tribal policy matters. The establishment of such an office has support from Indian Country and would improve Treasury’s ability to fulfill its trust responsibilities to respect the nation-to-nation relationship between the federal government and tribal nations.

Treasury has long had a role in matters, including tax and finance issues, that have seriously affected the welfare and sovereignty of some tribal nations. This role has increased over time and has become extremely important during the COVID-19 pandemic, because Congress has charged Treasury with the crucial responsibility of disbursing to tribal nations billions of dollars in relief funds. The recent historic appropriation of federal funding for Tribal governments via the Treasury Department has the potential to be transformative and life-altering, which places a great responsibility on the Department to ensure that this consequential funding is allocated fairly while guaranteeing that subsequent regulations are reflective of the realities that tribal nations face. The Internal Revenue Service, the Office of the Comptroller of the Currency, the Community Development Financial Institutions Program, and the Office of Recovery Programs are just some of the Treasury components that make decisions with enormous impact on tribal nations, in such areas as COVID-19 relief implementation, tribal economic development, taxation and tax incentives, capital finance and capital needs, and trade policy.

The recent work of Treasury during the COVID-19 pandemic has shown that the Department requires a more formalized body to interact with tribal nations. Treasury needs a sufficient number of permanent personnel who can help improve the Department’s tribal consultation process, strengthen the Department’s relationship with tribes, and provide more inhouse expertise on matters affecting tribal nations. The Treasury Tribal Advisory Committee (TTAC), established under section 3(a) of the Tribal General Welfare Exclusion Act of 2014, plays an important role, but this body is not a substitute for a dedicated Office of Tribal Affairs with a sufficient number of full-time, in-house personnel. Indeed, an Office of Tribal Affairs would likely help coordinate the TTAC’s work.

President Fawn Sharp of the National Congress of American Indians has testified that “an Office of Tribal Affairs is critically needed within Treasury to address tribal economic development, tax, and capital needs; integrate tribal nations within Treasury policy making; and facilitate tribal consultations.” Recent events have confirmed President Sharp’s statement. Concerns about Treasury’s interactions with tribal nations regarding pandemic relief funding were also voiced during the last administration.

In light of President Biden’s memorandum affirming the importance of tribal consultation—which states that it is his “priority” to make “regular, meaningful, and robust consultation with Tribal Nations cornerstones of Federal Indian policy”—we believe Treasury has an obligation to provide permanent personnel to ensure that the Department’s tribal consultations meet the goals set forth by the President. Treasury acknowledges this point as well; the Deputy Secretary of the Treasury has “reiterated the importance of the nation-to-nation consultation process.” An Office of Tribal Affairs would help achieve this.

Although the pandemic has underscored the urgency of Treasury having proper in-house capacity to address tribal issues appropriately, this need existed before the pandemic and before this administration, and, absent institutional changes at the Department, it will continue to exist after the pandemic and after this administration. Therefore, we urge the Department of the Treasury to establish an Office of Tribal Affairs.

We respectfully request a response by October 13, 2021, regarding your plans on this matter. Thank you for your consideration.

Sincerely,
Source: Senator Alex Padilla