Judge: US not unreasonably delaying virus relief for tribes

FLAGSTAFF, Ariz. (AP) — The U.S. Treasury Department is not unreasonably delaying the release of coronavirus relief funding to Native American tribes, a federal judge ruled this week.

The department is tasked with disbursing $8 billion to tribes that was included in a relief package approved in late March. The payments didn't start going out until more than a week after the April 26 deadline set by Congress, and 40% of the money is being withheld.

Despite that, U.S. District Judge Amit Mehta in Washington, D.C., rejected an assertion that Treasury Secretary Steven Mnuchin was “twiddling his thumbs.” Congress required Mnuchin to consult with tribes and the Interior Department before sending any payments, making the job more difficult.

The Treasury Department estimated it has spent about 2,200 hours so far on the effort.

Mehta said that amount of work should have produced better results but doesn't justify court intervention.

"'Egregious’ delay is the governing standard, and the secretary is not there quite yet, even in the midst of a public health crisis," Mehta wrote in his ruling.

The tribes can renew their motion to force the distribution of the entire $8 billion if the Treasury Department takes more than twice the time Congress mandated, Mehta said.

States and local governments received funding under the $2.2 trillion Coronavirus Aid, Relief, and Economic Security Act, largely based on population data.

The Treasury Department also used existing population data in issuing $4.8 billion in payments to tribes. But the department plans to gather more data from tribes on spending and employment numbers before releasing the rest. It also is holding back an undisclosed amount calculated for Alaska Native corporations until a separate lawsuit is resolved.

Mehta has...