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Withdrawing Tribal Funds from Trust

The Department of the Interior promotes Indian self-determination and self-governance efforts, including the withdrawal of tribal funds from trust. For more than 100 years, Interior has managed and invested Indian trust funds for tribes and Individual Indian Money beneficiaries. In 1994, enactment of the American Indian Trust Fund Management Reform Act made it possible for Indian tribes to withdraw their trust funds from Interior for independent management.

Currently, Interior’s Office of the Special Trustee for American Indians (OST) manages Indian trust funds.

When a tribe withdraws its funds it may invest them in a broader range of financial options than what is authorized to OST. When a tribe withdraws its funds from trust, Interior no longer bears a fiduciary responsibility for those funds. Trust funds may be returned to Interior for management at a later date if the tribe chooses. Interior’s fiduciary trust responsibility is reinstated if a tribe returns the funds.

Who is Eligible to Withdraw Tribal Trust Funds?

Any tribe for whom OST manages funds in trust may be eligible to withdraw its funds and manage them independently.

What funds may be withdrawn?

The 1994 Act provides specific authority for tribes to withdraw judgment and settlement funds that are deposited in trust with Interior. Tribes may withdraw other funds held in trust under several other authorities.

Are there restrictions?

There are a number of requirements for withdrawal under the 1994 Act. There also may be specific statutory restrictions. For example, an Act of Congress or settlement agreement may require certain funds to remain in trust. All restrictions are explained in the Code of Federal Regulations (CFR), Chapter 25, Part 1200. See the contact information below to request a copy of the section of the CFR that applies to the tribal withdrawal process, or go to the U.S. Government Printing Office website at www.gpoaccess.gov/cfr/index.html.

What is the Withdrawal Process?

The CFR defines how tribes may withdraw their funds from trust, how to return funds to trust, and how to request assistance to prepare plans to manage the funds when removed from OST management.

In summary:

A tribe must submit several documents including:

• a formal withdrawal application to OST,
• a tribal resolution that authorizes the withdrawal,
• a copy of the formal agreement between the tribe and the proposed manager of the funds, unless the funds are managed in-house, and
• a Tribal Management Plan that includes investment goals, strategies, and information on the individuals and institutions that will be involved in the investment and/or management of the funds.
• After an application is determined to be complete, OST has 90 days to review and evaluate the withdrawal request. Following the review, OST will provide Interior with a recommendation on the application.

For more information:

A number of tribes have withdrawn their tribal funds from OST for self-management and investment. OST promotes Indian self-determination and self-governance efforts.

To request an application package to withdraw tribal funds from the Department of the Interior:

• Contact your local Fiduciary Trust Officer;
• Call the Trust Beneficiary Call Center,
  toll-free, (888) 678-6836; or
• Write:
  OST, Office of External Affairs,
  4400 Masthead Street NE
  Albuquerque, NM 87109

or

OST, Office of External Affairs,
1849 C Street NW, Suite 5140
Washington, D.C. 20240