New Act Grants Aged, Disabled Alaska Natives 5-Year Exemption for Trust Funds in Federal Aid Eligibility

The Alaska Native Settlement Trust Eligibility Act is straightforward: it temporarily changes the rules for how certain federal assistance programs view money received by Alaska Natives from their Settlement Trusts. Specifically, for a five-year period starting when the law takes effect, any money or benefits an aged, blind, or disabled individual receives from an Alaska Native Settlement Trust will not count against them when determining eligibility for federal aid, such as Supplemental Security Income (SSI).

Why This Matters: The Double Penalty

For years, a significant issue has plagued Alaska Native communities: if an individual received a distribution from their Settlement Trust—money intended to benefit the community and its members—that money often counted as income or assets. If you were aged, blind, or disabled and relied on needs-based federal programs, receiving that trust money could push you over the eligibility limits, effectively disqualifying you from the aid you needed for survival, such as healthcare or disability payments. This created a choice between accepting community benefits and retaining essential federal support.

A Five-Year Fix for Federal Eligibility

This new bill addresses that conflict head-on. Section 2 dictates that for five years, distributions from a Settlement Trust will be ignored during the eligibility calculation for aged, blind, or disabled assistance under the Social Security Act. Furthermore, simply having an interest in the Trust won't count as an asset, either. Think of it like this: for the next five years, that trust money is invisible to the federal aid system. This is crucial because it allows vulnerable Alaska Natives to access funds intended for them without losing their safety net.

For example, consider an elderly Alaska Native individual who relies on SSI for basic living expenses and healthcare. If they receive a $1,000 annual distribution from their regional corporation's Settlement Trust, under the old rules, that $1,000 could have jeopardized their entire year of federal benefits. Under this new act, that $1,000 is safe; they keep their federal aid and receive the trust distribution. This change is a significant win for financial stability and access to essential services for this vulnerable population.

The Clock Is Ticking

It’s important to note the five-year timeline. This isn't a permanent change; it’s a temporary reprieve. While it provides immediate, necessary relief, the clock starts ticking immediately upon enactment. This means the affected communities and federal agencies will have a window to adjust and potentially seek a more permanent solution before the exemption expires.