In the mid-1990s, when the Ho-Chunk Tribe of Black River Falls, Wisconsin began distributing accumulated trust fund money to 18-year-olds who were enrolled tribal members since birth and graduated from high school, payouts were a modest ,000. Today, thanks to the tribe’s successful gaming operation, 18-year-olds are eligible to receive a pre-tax payment of more than 0,000.
In 2010 a task force was formed to review the so-called “18 money,” based on results of a survey of past recipients in which 58 percent said they supported changing the rules and 93 percent said they wished they had used the money differently. And in January the tribal legislature approved opening a 90-day comment period on proposed changes to the policy. Those changes would have dramatically scaled back the payout at high school graduation and paid out the balance over a period of years when the recipient would meet certain benchmarks, such as going to college, joining the military, working full time and taking extra classes in personal finances and Ho-Chunk history.
About 475 people responded during the public comment period, legislator Robert Two Bears said. Those who supported the changes said 18 is too young to receive such a windfall, and they had seen friends and relatives waste the money. Those who opposed the changes said many families rely on the payout for basic needs and special splurges. Others said they were suspicious of the tribal government and said tribal youth can spend the funds how and when it wants.
In the end, tribal legislators voted 6-3, with three abstaining, to keep the payout as it now stands. Said Two Bears, “It’s really a no-action vote. It seems like it’s a dead bill.” He said he supported delaying the payouts to age 21 or 26, but did not agree with tying the money to certain conditions. Ho-Chunk president Jon Greendeer said, “The third rail of Indian politics is the trust fund. It’s something you don’t really want to mess with.”
The issue will be brought up as an informational item at the tribe’s General Council meeting in September. Two other Wisconsin tribes, the Oneida and the Potawatomi, also distribute accumulated trust fund money to 18-year-olds.
