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US announces $1b in stimulus tribal bond

(Xinhua)
Updated: 2010-02-12 06:08

WASHINGTON: Obama administration Thursday announced $1 billion in stimulus bond authority under the American Recovery and Reinvestment Act for 76 tribes across the country. ?

The Tribal Economic Development Bonds will help create jobs, complete projects, and bring much needed economic revitalization to Indian Country, said the Treasury in a statement.

"Through Tribal Bonds, communities across Indian Country can access lower-cost borrowing to help finance economic development projects that create jobs," said US deputy treasury secretary Neal Wolin. ?

"The first round of awards announced in September helped 58 tribes get infrastructure projects off the ground, and this new allocation will help jumpstart even more projects that will spur economic growth," he added.

The Recovery Act authorized the Treasury Department to award $2 billion in Tribal Bond authority to Indian Tribal Governments through two award rounds.

The first round awarded $1 billion to 58 tribes and was announced Sept 15, 2009. The second round of awards announced Thursday allocates $1 billion to 76 tribes across the country.

These bonds may be issued by tribes either as traditional tax-exempt bonds or as Build America Bonds if they meet the additional program eligibility rules for Build America Bonds, in each case realizing lower borrowing costs for tribal communities, according to the Treasury.

For tribes that choose to use this bond authority under the Build America Bonds program, Treasury said it will make a direct payment to the issuer in an amount equal to 35 percent of the interest payment on the bond.