§3306 Limitations on Use of Funds

Summary

The Secretary must pay grantees in two parts each year. The first payment, no later than October 1, is equal to half of what the grantee (or a contractor who chose to follow these rules) got in the last fiscal year. The second payment, the rest of the yearly amount, must be made by January 1. If a tribe did not get a payment in the previous year, it must receive the full yearly amount by January 1. Money from this program cannot pay for divinity school, religious worship, or other sectarian activities. Any interest or other income from these funds must only be used for the same allowed purposes. Once a tribe gets the money, any interest it earns belongs to the tribe and federal officials must not count that interest when deciding other federal aid. Tribes may only invest the funds in U.S. government obligations, U.S.-guaranteed securities, or accounts insured by a U.S. agency. Money from this program also must not be counted when federal agencies check for underpayments or overpayments of other funds.