Council approves direct payments from CARES fund


With any luck, the Navajo people and their 110 chapters might soon be eligible for direct financial relief from the remaining pot of $176 million in CARES Act money. That is, if President Jonathan Nez signs two bills that were passed by the Navajo Nation Council last Friday.

As of Sept. 21, $538 million of the $714 million Navajo CARES Act funds had been appropriated, with only $30 million spent and $12 million encumbered, leaving $176 million yet to be allocated.

Legislation No. 0201-20, sponsored by Delegate Eugenia Charles-Newton (passed 21-0), adds $49 million to the CARES Fund Hardship Assistance Expenditure Plan that was adopted in Resolution CJY-67-20 and originally established with only $1,000.

The purpose of the Charles-Newton’s legislation is to provide emergency financial assistance, necessary to combat the effects of COVID-19 and mitigate the spread of the virus, to Navajo tribal members. “This money goes directly to the people,” said Charles-Newton. “We are all aware that our people are in a financial crisis and they need help. COVID-19 has affected every single Navajo person living on and off the reservation.”

No. 197-20, sponsored by Delegate Mark Freeland (passed 21-0), established the CARES Fund Chapter Distribution Expenditure Plan, which allocates $90 million to all chapters under the 50-50 formula (half divided equally among the chapters and half based on population), for COVID-19 humanitarian relief and response efforts.

The bill also includes $20 million for the controller’s office to handle disbursement of the funds through an online portal, $2 million to the Division of Community Development to help administer the funds, and $15 million for telecommunications and internet connectivity for chapters, for a total of $127 million.

$1,500 for adults, $500 for minors

The $49 million approved by Council in No. 0201-20 would be available to all 327,726 Navajo enrolled tribal members (CIB required) on and off the reservation through an application process that would be managed through the controller’s office.

Adults 18 years and over as of March 1 could qualify for direct payments of $1,500, and children 17 and under could qualify for $500. Eligibility would not be restricted or income-based, said Charles-Newton.

Details on the application process for the hardship assistance are still being worked out. The $49 million would not be able to accommodate all 327,000 tribal members so it appears that distribution would occur on a first-come, first-served basis.

Originally, Charles-Newton’s bill started off with a proposed $175 million but that had to be reduced by the $127 million (via amendment) that was passed in Freeland’s legislation just prior.

There is a possibility that other funds that are not encumbered for projects and services by Oct. 1 will revert or can be transferred either to the general CARES Fund or the hardship assistance fund.

This means there is some hope that the $49 million could be supplemented to offer more hardship relief to more people, which would have to be approved by the Budget and Finance Committee and Council.

For example, Resolution CJY-67-20 states that funding for any project that has not made enough progress to demonstrate that it will be fully completed by Dec. 30, will be re-allocated to the Hardship Assistance Expenditure Plan through Naabik’iyati Committee resolution.

‘The 9th hour’

Charles-Newton said that Council delegates did their best to meet the needs of the people by appropriating funds for infrastructure and services through three prior CARES Act bills, but delays in spending those funds through the executive branch have been untenable. “We immediately jumped into action when that money was dispersed to us,” she said.

The first $600 million-plus in CARES Act funds arrived in the Nation’s coffers on May 5, which was based on Navajo census population data. “Right now, we have money sitting in these program accounts and the programs are moving at a snail’s pace,” said Charles-Newton. “Unfortunately, we can’t access any more than what’s left over.”

There are still many unknowns at this point because neither the legislative nor executive branch has provided public updates about the progress of spending the appropriated CARES Act monies. “We are at the ninth hour,” said Charles-Newton. “We need to start spending this money or it goes back to the federal government. I would rather our people have this money and use it for the things that they need to survive through the winter and provide for their families.”

Controller Pearline Kirk told delegates that in addition to the time and effort it will take to process applications and disperse the hardship assistance…

Read More: Council approves direct payments from CARES fund

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