WASHINGTON — The Supreme Court ruled June 25 that Alaska Native corporations should benefit from hundreds of millions of dollars in disputed Coronavirus relief funds, rather than be denied access and the money instead spread among Native American tribes around the U.S.
The justices ruled 6-3 in the case, which involved the massive pandemic relief package passed last year and signed into law by then-President Donald Trump. The $2.2 trillion legislation earmarked $8 billion for “Tribal governments” to cover expenses related to the pandemic.
The federal government had set aside approximately $500 million for Alaska Native regional and village corporations under the Coronavirus Aid, Relief, and Economic Security Act.
But after the CARES Act was passed, three groups of Native American tribes sued to prevent payments to Alaska Native corporations. They argued that under the language of the law, only federally recognized tribes qualify for the aid, and Alaska Native corporations (ANCs) do not qualify because they are not sovereign governments, as tribes are.
The question for the court was whether the corporations, which are for-profit companies that provide benefits and social services to more than 100,000 Alaska Natives, count as “Indian tribes.” The high court answered yes.
“The Court today affirms what the Federal Government has maintained for almost half a century: ANCs are Indian tribes,” wrote Justice Sonia Sotomayor for a group of both liberal and conservative members of the court.
The case is important not only because of the amount of money it involves but also because Native Americans and Alaska Natives have been disproportionately affected by the pandemic. Both the Trump and Biden administrations agreed that the Alaska corporations should be treated as Indian tribes and that doing differently would be a dramatic departure from the status quo.
In a statement after the ruling, Navajo Nation President Jonathan Nez said the coalition of tribes that brought the lawsuit to stop the payments to Alaska corporations was disappointed.
“This case was never about the funds. Instead, it was about upholding tribal sovereignty and the status of federally recognized tribes,” he said, adding that the ruling “undermines federally recognized tribes and will have consequences far beyond the allocation of CARES Act dollars.”
Part of the issue for the court was that Alaska is unique. Unlike in the Lower 48 states, Alaska Native tribes are not situated on reservations. Instead, Native land is owned by the regional and village corporations created under the Alaska Native Claims Settlement Act of 1971. The for-profit corporations run oil, gas, mining and other enterprises.
Alaska Natives own shares in the regional corporations, such as Sealaska Corp. in Southeast Alaska, which provide a range of services from health care and elder care to educational support and housing assistance.
The ANCSA Regional Association and Alaska Native Village Corporation Association cheered the decision.
“We are pleased to see the Court affirm Alaska Native corporations’ eligibility for CARES Act funds to help our people and communities recover from the devastating effects of COVID-19. Alaska’s economy is only now starting to recover, and these funds are needed to help our communities get back on their feet,” the associations said.
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