H.R. 3043 and S. 1507

Floor Speech

Mr. MORAN. I wish to engage in a colloquy with the chairman of the Finance Committee, Senator Wyden, and with Senator Heitkamp, to clarify several questions that have arisen since H.R. 3043 and S. 1507 were introduced.

I say to the chairman, the term general welfare is found in the Preamble to the Constitution, and the power and duty of governments to promote the general welfare is at the core of our service to the people. Indian Tribes, through treaties, agreements, and statutes, reserved their original, inherent right to self-government, and Tribal governments are in the best position to determine the general welfare interests of the Indian people. H.R. 3043 and S. 1507 are intended to respect the right of Indian Tribes to provide for the general welfare of Tribal members.

I ask the chairman, is it your understanding that in interpreting the meaning of the requirement under the bill that Indian Tribal government programs be ``for the promotion of the general welfare,'' it is intended that the IRS will apply this requirement in a manner no less favorable than the safe harbor approach provided for in Revenue Procedure 2014-35, and in no event will the IRS require an individualized determination of financial need where a Tribal program meets all other requirements of new section 139E as added by the bill?

Mr. WYDEN. The Senator is correct. I want to express my full support for the administrative guidance issued by the IRS in Rev. Proc. 2014-35. I would also point out to the Senator that the bill requires under its ``Statutory Construction'' provision of section 2(c), that any ambiguities in new Code section 139E shall be resolved by the IRS in favor of Indian Tribal governments and deference shall be given to Indian Tribal governments for programs administered and authorized by the Tribe to benefit the general welfare of the Tribal community.

Ms. HEITKAMP. As the chairman knows, there have been concerns expressed in Indian Country that the IRS may take the occasion of passage of H.R. 3043 or S. 1507 to retrench, narrow or possibly withdraw the administrative guidance provided in Rev. Proc. 2014-35 after enactment of the bill. As the sponsor of this legislation, I would like to say that would be contrary to the intent of Congress.

Mr. WYDEN. I fully share the Senator's concern and want to assure her as well as Tribal interests that the Congressional intent, as well as mine as chairman of the Finance Committee, is to expand rather than restrict the safe harbor provisions in Rev. Proc. 2014-35. The purpose of this legislation is to further empower Tribal self-determination. Tribes, and not the IRS, are in the best position to determine the needs of their members and provide for the general welfare of their Tribal citizens and communities.

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