Tribal economic funding bill not supported

A bill that would have provided more economic development funds for the tribes in Maine has not been supported by a legislative committee, after a state agency raised concerns about the measure.
The bill, sponsored by Rep. Ben Collings of Portland, would have provided 10% of the available funds in the state's Community Development Block Grant (CDBG) Program to the federally recognized tribes in the state and also would have required a plan for ensuring that the tribes have equitable access to the New Markets Tax Credit Program.
During the March 28 hearing on the bill before the legislature's Innovation, Development, Economic Advancement and Business Committee, Charlene Virgilio, executive director of the Four Directions Development Corporation, a Native community development financial institution in Orono, presented testimony in support of the measure. She noted that centuries "of colonization and displacement have resulted in economic and social marginalization, causing tribal communities to suffer from high rates of poverty, unemployment and underemployment." A lack of access to capital and credit has hindered economic development in tribal communities, she stated, and the many tribal lands that are held in trust by the federal government cannot be used as collateral for loans. "This has made it difficult for tribal entrepreneurs and businesses to secure financing for their ventures," she pointed out. Virgilio maintained that having 10% of the state's CDBG funds set aside for the tribes would provide much needed funding for housing needs, economic development and infrastructure improvements. Also, having access to the New Markets Tax Credit Program would allow the tribes to attract capital for small-scale projects.
John Dieffenbacher-Krall, executive director of the Wabanaki Alliance, also urged passage of the bill and referenced the recent Harvard University report that found the Wabanaki nations have suffered suppressed economic development because of the constraints imposed by the Maine Indian Claims Settlement Act. "While Indian Country has enjoyed a boom or prosperity since the onset of the modern self-determination era in federal Indian policy measured at 61%, Wabanaki nations have only grown 9%," he pointed out.
However, Victoria Foley of the Maine Department of Economic and Community Development (DECD) observed that federal law prevents the state's CDBG program from distributing funds directly to tribal communities. They can, though, apply in partnership with local governments in the state, and tribal communities can also apply for Indian Community Development Block Grant funds, which are administered by the federal government. As for the New Markets Tax Credit Program, Foley said that the state has no influence with the federal government on the administration of that program.
Foley did note that DECD can support tribal communities in accessing technical support for CDBG grant applications and has engaged with Four Directions Development Corporation to discuss ways for the state to collaborate with the tribes on accessing that support.
At an April 14 work session, the committee voted not to recommend the bill.