Tribal Economic Development Bonds
Tribal Economic Development Bonds – Section 1402 of the American Recovery and Reinvestment Act (“ARRA”) provides for allocation of $2 billion for tribal economic development bonds. Tribes are eligible to apply for the first allocation of $1 billion under the ARRA for projects not exceeding $30 million for a broad range of governmental projects to be used in the exercise of any essential governmental function. Of course, there are limitations such as the funding cannot be used to fund any portion of a building in which class II or class III gaming is conducted or housed or any other property actually used in the conduct of such gaming; or any facility located outside the Indian reservation. The application is due on or before August 15, 2009 for the first allocation. There are also time limits for issuance of the bonds.
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