---
kind: "section"
citation: "25 U.S.C. § 5368"
title: "25"
title_heading: "Indians"
number: "5368"
heading: "Payment"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/25/5368"
units:
  - "Chapter 46 — Indian Self-Determination and Education Assistance"
  - "Subchapter IV — Tribal Self-Governance—department of the Interior"
---

# §5368. Payment

- (a) **In general—** At the request of the governing body of an [Indian Tribe](/usc/25/5381.md?p=b) and under the terms of an applicable [funding agreement](/usc/25/5361.md?p=4), the [Secretary](/usc/25/5361.md?p=9) shall provide funding to the [Indian Tribe](/usc/25/5381.md?p=b) to carry out the [funding agreement](/usc/25/5361.md?p=4).
- (b) **Advance annual payment—** At the option of the [Indian Tribe](/usc/25/5381.md?p=b), a [funding agreement](/usc/25/5361.md?p=4) shall provide for an advance annual payment to an [Indian Tribe](/usc/25/5381.md?p=b).
- (c) **Amount—**
  - (1) **In general—** Subject to [subsection (e)](#e) and sections [5363](/usc/25/5363.md) and [5365](/usc/25/5365.md) of this title, the [Secretary](/usc/25/5361.md?p=9) shall provide funds to the [Indian Tribe](/usc/25/5381.md?p=b) under a [funding agreement](/usc/25/5361.md?p=4) for [programs](/usc/25/5361.md?p=8) in an amount that is equal to the amount that the [Indian Tribe](/usc/25/5381.md?p=b) would have been entitled to receive under contracts and grants under this chapter (including amounts for direct [program](/usc/25/5361.md?p=8) and contract support costs and, in addition, any funds that are specifically or functionally related to the provision by the [Secretary](/usc/25/5361.md?p=9) of services and benefits to the [Indian Tribe](/usc/25/5381.md?p=b) or its members) without regard to the organization level within the [Department](/usc/25/5361.md?p=3) at which the [programs](/usc/25/5361.md?p=8) are carried out.
  - (2) **Savings clause—** Nothing in this section reduces [programs](/usc/25/5361.md?p=8), services, or funds of, or provided to, another [Indian Tribe](/usc/25/5381.md?p=b).
- (d) **Timing—**
  - (1) **In general—** Pursuant to the terms of any [compact](/usc/25/5361.md?p=1) or [funding agreement](/usc/25/5361.md?p=4) entered into under this subchapter, the [Secretary](/usc/25/5361.md?p=9) shall transfer to the [Indian Tribe](/usc/25/5381.md?p=b) all funds provided for in the [funding agreement](/usc/25/5361.md?p=4), pursuant to [subsection (c)](#c), and provide funding for periods covered by joint resolution adopted by Congress making continuing appropriations, to the extent permitted by such resolution.
  - (2) **Transfers—** Not later than 1 year after October 21, 2020, in any instance in which a [funding agreement](/usc/25/5361.md?p=4) requires an annual transfer of funding to be made at the beginning of a fiscal year or requires semiannual or other periodic transfers of funding to be made commencing at the beginning of a fiscal year, the first such transfer shall be made not later than 10 days after the apportionment of such funds by the Office of Management and Budget to the [Department](/usc/25/5361.md?p=3), unless the [funding agreement](/usc/25/5361.md?p=4) provides otherwise.
- (e) **Availability—** Funds for trust services to individual [Indians](/usc/25/5304.md?p=d) shall be available under a [funding agreement](/usc/25/5361.md?p=4) only to the extent that the same services that would have been provided by the [Secretary](/usc/25/5361.md?p=9) are provided to individual [Indians](/usc/25/5304.md?p=d) by the [Indian Tribe](/usc/25/5381.md?p=b).
- (f) **Multiyear funding—** A [funding agreement](/usc/25/5361.md?p=4) may provide for multiyear funding.
- (g) **Limitations on authority of the Secretary—** The [Secretary](/usc/25/5361.md?p=9) shall not—
  - (1) fail to transfer to an [Indian Tribe](/usc/25/5381.md?p=b) its full share of any central, headquarters, regional, area, or service unit office or other funds due under this subchapter for [programs](/usc/25/5361.md?p=8) eligible under paragraph (1) or (2) of [section 5363(b) of this title](/usc/25/5363.md?p=b), except as required by Federal law;
  - (2) withhold any portion of such funds for transfer over a period of years; or
  - (3) reduce the amount of funds required under this subchapter—
    - (A) to make funding available for [self-governance](/usc/25/5361.md?p=11) monitoring or administration by the [Secretary](/usc/25/5361.md?p=9);
    - (B) in subsequent years, except as necessary as a result of—
      - (i) a reduction in appropriations from the previous fiscal year for the [program](/usc/25/5361.md?p=8) to be included in a [compact](/usc/25/5361.md?p=1) or [funding agreement](/usc/25/5361.md?p=4);
      - (ii) a congressional directive in legislation or an accompanying report;
      - (iii) a Tribal authorization;
      - (iv) a change in the amount of pass-through funds subject to the terms of the [funding agreement](/usc/25/5361.md?p=4); or
      - (v) completion of an activity under a [program](/usc/25/5361.md?p=8) for which the funds were provided;
    - (C) to pay for Federal functions, including—
      - (i) Federal pay costs;
      - (ii) Federal employee retirement benefits;
      - (iii) automated data processing;
      - (iv) technical assistance; and
      - (v) monitoring of activities under this subchapter; or
    - (D) to pay for costs of Federal personnel displaced by [self-determination contracts](/usc/25/5361.md?p=10) under this chapter or [self-governance](/usc/25/5361.md?p=11) under this subchapter.
- (h) **Federal resources—** If an [Indian Tribe](/usc/25/5381.md?p=b) elects to carry out a [compact](/usc/25/5361.md?p=1) or [funding agreement](/usc/25/5361.md?p=4) with the use of Federal personnel, Federal supplies (including supplies available from Federal warehouse facilities), Federal supply sources (including lodging, airline transportation, and other means of transportation, including the use of interagency motor pool vehicles), or other Federal resources (including supplies, services, and resources available to the [Secretary](/usc/25/5361.md?p=9) under any procurement contracts in which the [Department](/usc/25/5361.md?p=3) is eligible to participate), the [Secretary](/usc/25/5361.md?p=9) shall, as soon as practicable, acquire and transfer such personnel, supplies, or resources to the [Indian Tribe](/usc/25/5381.md?p=b) under this subchapter.
- (i) **Prompt Payment Act—** [Chapter 39](/usc/31/chstIII/ch39.md) of title 31 shall apply to the transfer of funds due under a [compact](/usc/25/5361.md?p=1) or [funding agreement](/usc/25/5361.md?p=4) authorized under this subchapter.
- (j) **Interest or other income—**
  - (1) **In general—** An [Indian Tribe](/usc/25/5381.md?p=b) may retain interest or income earned on any funds paid under a [compact](/usc/25/5361.md?p=1) or [funding agreement](/usc/25/5361.md?p=4) to carry out governmental purposes.
  - (2) **No effect on other amounts—** The retention of interest or income under [paragraph (1)](#j-1) shall not diminish the amount of funds an [Indian Tribe](/usc/25/5381.md?p=b) is entitled to receive under a [funding agreement](/usc/25/5361.md?p=4) in the year the interest or income is earned or in any subsequent fiscal year.
  - (3) **Investment standard—** Funds transferred under this subchapter shall be managed by the [Indian Tribe](/usc/25/5381.md?p=b) using the prudent investment standard, provided that the [Secretary](/usc/25/5361.md?p=9) shall not be liable for any investment losses of funds managed by the [Indian Tribe](/usc/25/5381.md?p=b) that are not otherwise guaranteed or insured by the Federal Government.
- (k) **Carryover of funds—**
  - (1) **In general—** Notwithstanding any provision of an appropriations Act, all funds paid to an [Indian Tribe](/usc/25/5381.md?p=b) in accordance with a [compact](/usc/25/5361.md?p=1) or [funding agreement](/usc/25/5361.md?p=4) shall remain available until expended.
  - (2) **Effect of carryover—** If an [Indian Tribe](/usc/25/5381.md?p=b) elects to carry over funding from one year to the next, the carryover shall not diminish the amount of funds the [Indian Tribe](/usc/25/5381.md?p=b) is entitled to receive under a [funding agreement](/usc/25/5361.md?p=4) in that fiscal year or any subsequent fiscal year.
- (l) **Limitation of costs—**
  - (1) **In general—** An [Indian Tribe](/usc/25/5381.md?p=b) shall not be obligated to continue performance that requires an expenditure of funds in excess of the amount of funds transferred under a [compact](/usc/25/5361.md?p=1) or [funding agreement](/usc/25/5361.md?p=4).
  - (2) **Notice of insufficiency—** If at any time the [Indian Tribe](/usc/25/5381.md?p=b) has reason to believe that the total amount provided for a specific activity under a [compact](/usc/25/5361.md?p=1) or [funding agreement](/usc/25/5361.md?p=4) is insufficient, the [Indian Tribe](/usc/25/5381.md?p=b) shall provide reasonable notice of such insufficiency to the [Secretary](/usc/25/5361.md?p=9).
  - (3) **Suspension of performance—** If, after notice under [paragraph (2)](#l-2), the [Secretary](/usc/25/5361.md?p=9) does not increase the amount of funds transferred under the [funding agreement](/usc/25/5361.md?p=4), the [Indian Tribe](/usc/25/5381.md?p=b) may suspend performance of the activity until such time as additional funds are transferred.
  - (4) **Savings clause—** Nothing in this section reduces any [programs](/usc/25/5361.md?p=8), services, or funds of, or provided to, another [Indian Tribe](/usc/25/5381.md?p=b).
- (m) **Distribution of funds—** The Office of [Self-Governance](/usc/25/5361.md?p=11) shall be responsible for distribution of all Bureau of [Indian](/usc/25/5304.md?p=d) Affairs funds provided under this subchapter unless otherwise agreed by the parties to an applicable [funding agreement](/usc/25/5361.md?p=4).
- (n) **Applicability—** Notwithstanding any other provision of this section, [section 101(a)](/usc/25/101.md) of the PROGRESS for Indian Tribes Act applies to subsections [(a)](#a) through [(m)](#m).

## Source credit

(Pub. L. 93–638, title IV, § 408, as added Pub. L. 116–180, title I, § 101(e), Oct. 21, 2020, 134 Stat. 872.)

## Notes

### Editorial Notes

### References in Text

This chapter, referred to in subsecs. (c)(1) and (g)(3)(D), was in the original “this Act”, meaning Pub. L. 93–638, Jan. 4, 1975, 88 Stat. 2203, known as the Indian Self-Determination and Education Assistance Act, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 5301 of this title and Tables.

Section 101(a) of the PROGRESS for Indian Tribes Act, referred to in subsec. (n), is section 101(a) of Pub. L. 116–180, which is set out as a note under section 5361 of this title.

### Prior Provisions

A prior section 5368, Pub. L. 93–638, title IV, § 408, as added Pub. L. 103–413, title II, § 204, Oct. 25, 1994, 108 Stat. 4278, authorized appropriations, prior to repeal by Pub. L. 116–180, title I, § 101(e), Oct. 21, 2020, 134 Stat. 864, 872. See section 5377 of this title. Such section was formerly classified to section 458hh of this title prior to editorial reclassification and renumbering as section 5368.