Janet Yellen Secretary of the Treasury | Twitter Website
Deputy Secretary of the Treasury Wally Adeyemo addressed the Treasury Tribal Advisory Committee (TTAC) on May 10, 2024, emphasizing the importance of government-to-government engagement and outlining ongoing initiatives aimed at supporting Tribal governments.
In his remarks, Adeyemo noted that last year, TTAC provided a report to the Treasury highlighting challenges faced by Tribal governments in maintaining pensions. Following this report, the Treasury held consultations in March and planned another for later in the week regarding proposed rulemaking for Long-Term, Part-Time Employee Rules for Cash and Deferred Arrangements Under Section 401(k).
Adeyemo acknowledged that Tribes are awaiting tax guidance from the implementation of the Tribal General Welfare Exclusion Act. He affirmed that advancing tax guidance recognizing the distinct trust and treaty relationship between Tribal Nations and the United States remains a priority for completion by summer.
Additionally, efforts have been made to increase Tribal access to Inflation Reduction Tax credits. The Deputy Secretary explained that while governments typically do not qualify for tax credits due to lack of tax liability, provisions under the Inflation Reduction Act (IRA) allow Tribes to receive tax credits for qualifying energy projects through a process known as elective pay or "direct pay."
Six tribal consultations have been held on proposed IRA guidance, with over 30 engagement sessions providing training on these new opportunities. Feedback from these sessions has been integrated into final rules issued in March 2024.
The Deputy Secretary also expressed gratitude towards TTAC and Tribal leaders for their partnership on the State and Local Fiscal Recovery Fund under the American Rescue Plan Act. He warned against a resolution under consideration in Congress that could overturn Treasury’s guidance on obligating State and Local Fiscal Recovery Funds, potentially impacting funding for critical projects such as hundreds of Tribal infrastructure projects.
Adeyemo concluded his remarks by reaffirming commitment to government-to-government engagement with Tribal Nations as not just mandatory federal policy but good policy that makes programs more equitable and federal assistance accessible.
