U.S To Pay $3 Billion to Indian Tribes
Wednesday, December 9th, 2009
The Obama Administration says it will spend more than $3 billion to settle a long-running lawsuit over royalties owed to American Indians.

President Barack Obama hailed the settlement of the case, known as Cobell v. Salazar, as an important step to reconcile Indian tribes and the federal government.

“As a candidate, I heard from many in Indian Country that the Cobell suit remained a stain on the nation-to-nation relationship I value so much,” Obama said in a statement issued by the White House. “I pledged my commitment to resolving this issue, and I am proud that my administration has taken this step today.”

Under the agreement announced Tuesday, the Interior Department will distribute $1.4 billion to more than 300,000 tribe members to compensate them for historical accounting claims, and to resolve future claims. The department also will spend $2 billion to buy back and consolidate tribal land lost by previous generations. The program will allow individual tribe members to obtain cash payments for divided land interests and free up the land for the benefit of tribal communities.

The settlement resolves a 13-year-old dispute in which Indian tribes claim they were swindled out of billions of dollars in oil, gas, grazing, timber and other royalties overseen by the Interior Department since 1887.

Interior Secretary Ken Salazar called the settlement a historic, positive development for Indian country and a major step to reconcile decades of acrimony between Indian tribes and the federal government.