Wounded Knee Land Transfer Mandated: 40 Acres Gain Tax-Exempt 'Restricted Fee Status' for Tribes

This legislation, the Wounded Knee Massacre Memorial and Sacred Site Act, is straightforward: it mandates the federal government to formally transfer about 40 acres of land near Wounded Knee, South Dakota, to the Oglala Sioux Tribe and the Cheyenne River Sioux Tribe. The Secretary of the Interior has exactly one year from the law’s enactment to complete all the necessary paperwork and surveys (SEC. 3). This isn't just a simple handover; it’s a specific designation intended to protect the land for the long haul as a memorial and sacred site.

The 'Restricted Fee Status' Explained

When the land is transferred, it will be held in what’s called “restricted fee status” (SEC. 2). Think of this as putting the land in a permanent trust that the Tribes control, but with serious guardrails. First, the land becomes tax-exempt—state and local governments can’t touch it for property taxes, which reduces the financial burden on the Tribes for maintaining this important site. Second, the land cannot be sold or transferred without the explicit approval of both Congress and the Tribes, essentially locking it down forever (SEC. 2). This prevents any future private developer from trying to buy the sacred site, giving the Tribes final say over its destiny.

Sovereignty and Service Agreements

For the average person, the most interesting part of this land status is the shift in administrative control. The Act explicitly removes the Secretary of the Interior’s authority to review or approve how the Tribes use the land, provided the use aligns with their October 2022 agreement (SEC. 2). This boosts Tribal sovereignty over the site, allowing them to manage it directly without bureaucratic federal oversight. However, for those living nearby, the bill is clear that any existing utility easements, rights-of-way, or service agreements—like for water or electricity—that were already on the land will remain fully in effect after the transfer (SEC. 3).

What You Can’t Do With the Land

While the transfer grants the Tribes control, it comes with a major restriction tied to the original agreement between the two Tribes: the land absolutely cannot be used for any gaming activities regulated under the Indian Gaming Regulatory Act (SEC. 3). This means the 40 acres are strictly reserved for memorial and sacred purposes, limiting the potential economic development options for the site. This provision ensures the site remains focused on its historical and cultural significance, rather than becoming a commercial enterprise.

The Real-World Impact

For the Oglala Sioux and Cheyenne River Sioux Tribes, this legislation formalizes their control over a site of profound historical and cultural importance, protecting it from future sale and ensuring its tax-exempt status. For local governments, the change means any potential future property tax revenue from this specific 40-acre parcel is permanently off the table, though because the land has been a point of contention and limited use, the financial impact is likely minor. Ultimately, this bill is about recognizing and protecting a sacred space by placing its management firmly and permanently under the authority of the Tribes most connected to its history.