Treasury, NM Governor Richardson Announce $1 Billion In Recovery Act Bond Authority For Tribal Communities

Tribal Economic Development Bonds Awarded to More than 50 Tribes Nationally, Including Three in New Mexico

Sept. 15, 2009 -- ALBUQUERQUE —As part of the Obama Administration’s efforts to highlight the local impact of the American Recovery and Reinvestment Act (Recovery Act), Treasury Deputy Secretary Neal Wolin and New Mexico Governor Bill Richardson today announced $1 billion in stimulus bond authority for 58 tribes across the country.

Article continues below...

Deputy Secretary Wolin and Governor Richardson visited the Indian Pueblo Cultural Center and met with local tribal leaders to discuss how Tribal Economic Development Bonds (Tribal Bonds) will be used to create jobs, complete projects, and bring much needed economic revitalization to Indian Country.

“The diverse offering of bond programs available through the Recovery Act ensures that communities across the country have the opportunity to take advantage of much needed economic stimulus tax incentives,” said Deputy Secretary Wolin. “Because of the Tribal Bonds announced today, communities will now have access to lower cost borrowing to build schools, hospitals, roads, and other projects that will create jobs and bring economic recovery to Indian Country."

The Recovery Act authorized the Treasury Department to award $2 billion in Tribal Bond authority to Indian Tribal Governments through two award rounds of $1 billion each. The first application deadline was August 15th, with recipients announced today. The second application deadline is January 2, 2010. These bonds may be issued by tribes either as traditional tax-exempt bonds or as Build America Bonds, in each case realizing lower borrowing costs for tribal communities. For tribes who choose to use this bond authority under the Build America Bond program, Treasury will make a direct payment to the issuer in an amount equal to 35 percent of the interest payment on the bond. Guidelines on how to apply for the second round of allocations are available here.

Said Governor Richardson: "I understand as well as anyone the obstacles to creating jobs and modernizing the infrastructure on tribal lands. This bonding authority will help pay for important projects in New Mexico - which is a huge boost to our collective efforts to create jobs, particularly in rural areas of the state."

Deputy Secretary Wolin and Governor Richardson held a meeting with several New Mexico tribal and pueblo leaders at the Indian Pueblo Cultural Center to highlight the use of Tribal Bonds to complete projects around the state. A total of three New Mexico pueblos are receiving bond authority through the award round announced today, including the Pueblo of Acoma, which intends to use $5 million from the Recovery Act’s Tribal Bond program to construct a steel production facility in rural New Mexico. The Pueblo of Acoma is already the largest employer in Cibola County, and the Recovery Act bond program will help the Pueblo create a sustainable economy within the region that will benefit adjoining communities as well.

Source: New Mexico Governor