Confederated Tribes of Siletz Indians

GWE Basic Living Assistance Program FAQ’s

The Confederated Tribes of Siletz Indians (“CTSI” or the “Tribe”) plans to start a program that will help CTSI members save money. The savings will come from a change in Tribal law that will allow certain payments by the Tribe to its members to be exempt from federal income tax. The program is called the CTSI Basic Living Assistance Program. It is an alternative to per capita distributions. This document answers some frequently asked questions regarding this shift in the way CTSI distributes money to its members. 

1. What is the CTSI Basic Living Assistance Program?

The CTSI Basic Living Assistance Program is being created in Tribal law and policy to enable CTSI members to take advantage of the tax benefits offered by the Tribal General Welfare Exclusion Act of 2014.

2. What is the Tribal General Welfare Exclusion Act?

The Tribal General Welfare Exclusion Act is a federal law that became effective in 2014. The law added language to the Internal Revenue Code to provide that an individual’s taxable income does not include the value of any “Indian general welfare benefit” paid by a tribe to the individual. An Indian general welfare benefit generally is defined as a payment made from a tribe to a tribal member for the promotion of general welfare if certain requirements are met (“General Welfare Exclusion payment” or “General Welfare Exclusion benefit”).

On December 15, 2025, the U.S. Department of the Treasury and IRS issued final regulations (“Regulations”) on the Tribal General Welfare Exclusion Act of 2014. The Regulations give unprecedented flexibility to tribes and expressly state that an “Indian Tribal Government has sole discretion to determine whether a benefit is for the promotion of general welfare and the Internal Revenue Service will defer to the Indian Tribal Government’s determination that a benefit is for the promotion of general welfare.” Accordingly, the Tribal General Welfare Exclusion Act of 2014 as interpreted and implemented by the Regulations allows tribes to develop programs that provide members with tax-free benefits to meet their general welfare needs.

3. What will the CTSI Basic Living Assistance Program do?

The CTSI Basic Living Assistance Program will allow CTSI to make payments to Tribal members for certain purposes that will qualify the payments for exclusion from the member’s gross income, and therefore the member won’t have to pay federal income tax on the payments.

4. What are some of the requirements for General Welfare Exclusion payments under the CTSI Basic Living Assistance Program?

Some of the requirements are that the CTSI Basic Living Assistance Program payments cannot be compensation for services and they cannot discriminate in favor of the governing body of CTSI or be “lavish or extravagant.” General Welfare Exclusion benefits must be provided under specified guidelines, and a benefit will be presumed to not be lavish or extravagant if it is described in and provided in accordance with written specified guidelines that exist at the time the benefit is provided. CTSI has structured the CTSI Basic Living Assistance Program to satisfy these requirements and overall ensure the payments members receive will qualify as tax-free general welfare benefits.

5. Who will be able to use the Program?

Eligible enrolled members of CTSI who are 18 years-of-age or older will be able to use the CTSI Basic Living Assistance Program.

6. Why would I want to receive CTSI Basic Living Assistance Program payments instead of per capita payments?

If you receive the same amount of money as a CTSI Basic Living Assistance Program payment as you do a per capita payment, it will put more money in your pocket because you won’t have to pay federal income taxes on them. For example, a $2,000 CTSI Basic Living Assistance Program payment means $2,000 in your pocket but a $2,000 per capita payment is subject to tax and therefore, is less money in your pocket. The IRS and the courts have said that General Welfare Exclusion payments such as the CTSI Basic Living Assistance Program payments and per capita payments can come from the same source – casino gaming revenues – but per capita payments are taxable while general welfare program payments are not.

7. Will distributions under the CTSI Basic Living Assistance Program be less than per capita distributions?

The Tribe anticipates that the amount of the CTSI Basic Living Assistance Program distributions will be the same as what Tribal members previously received as per capita distributions. Although the amount of the benefit is likely to be the same, the after-tax amount of the CTSI Basic Living Assistance Program distribution is greater than the per capita distribution. This means more money for you. This is because per capita payments are fully taxable while General Welfare Exclusion payments under the CTSI Basic Living Assistance Program will be non-taxable.

8. Aren’t CTSI Basic Living Assistance Program payments just per capita payments under a different name?

No, CTSI Basic Living Assistance Program payments are not just per capita payments under a different name. Per capita payments are a product of the federal Indian Gaming Regulatory Act of 1988 (“IGRA”). That law says that a tribe may use its net gaming revenues from IGRA-regulated casinos for a handful of public purposes, including to provide for the “general welfare of the tribe and its members.” Tribes provide for the general welfare of their members in a variety of ways, including by distributing a portion of net gaming revenues to all Tribal members on a “per capita” basis, without established programs and guidelines in place. The tax laws say that these per capita payments are taxable.

In 2014, Congress passed the Tribal General Welfare Exclusion Act. This law added language to the Internal Revenue Code to clarify that if a tribe makes qualified payments to its members, the payments will be excluded from the member’s income and will be non-taxable. In addition, the Regulations provide unprecedented flexibility to tribes in their development and implementation of general welfare programs. The Regulations expressly confirm that General Welfare Exclusion benefits may be provided on a uniform or pro-rata basis to eligible recipients. Additionally, the Regulations clarify that the money a tribe uses to make General Welfare Exclusion payments can come from any source, including net gaming revenues. To take advantage of this law, however, the tribe must have its own appropriate general welfare law and guidelines in place. CTSI is doing this through the CTSI Basic Living Assistance Program.

9. When will the CTSI Basic Living Assistance Program start?

The Tribal Ordinance that opens the door for the CTSI Basic Living Assistance Program is currently before the Bureau of Indian Affairs. Other relevant Ordinance revisions to implement the CTSI Basic Living Assistance Program, policy drafting, and internal structuring, are currently underway. The Tribe anticipates that the CTSI Basic Living Assistance Program will be rolled out in the summer of 2026, in time for the August 1, 2026 distribution.

10. How can I participate in the CTSI Basic Living Assistance Program?

Enrollment in the CTSI Basic Living Assistance Program is automatic. Any adult member who currently receives a per capita distribution will now receive a distribution under the Program.

11. Will I still receive a 1099 from the Tribe?

No. Unlike per capita distributions, CTSI Basic Living Assistance Program distributions are non-taxable and will not be included on a 1099.

12. How will the Tribe determine that the anticipated distributions through the CTSI Basic Living Assistance Program are not “lavish or extravagant”?

The Regulations provide that whether a benefit is “lavish or extravagant” is based on the facts and circumstances at the time a benefit is provided. Relevant facts and circumstances include a tribe’s culture and cultural practices, history, geographic area, traditions, resources, and economic conditions or factors. Accordingly, CTSI will periodically review the facts and circumstances through a cost-of-living analysis to establish the needs of the Tribal community. The Tribe anticipates that, on average, the value of the community need for general welfare-related expenses of our members will exceed the amount of the CTSI Basic Living Assistance Program distributions. Because the actual need exceeds the amount of the benefit, the Tribe has determined that the General Welfare Exclusion benefit won’t be “lavish or extravagant.” CTSI will continue to periodically review the facts and circumstances and ensure that community needs are documented, and General Welfare Exclusion benefits provided to members are not “lavish or extravagant.”

13. Do I need to show that I have an “individualized need” to qualify for benefits under the CTSI Basic Living Assistance Program?

No. When passing the Tribal General Welfare Exclusion, its supporters in the U.S. Congress explicitly stated that individualized determinations of need are not required. In addition, the Regulations expressly state that General Welfare Exclusion benefits “may be provided without regard to the financial or other need” of eligible recipients. The Regulations further provide that a tribe has “sole discretion to determine whether a benefit is for the promotion of general welfare” and that the IRS will defer to a tribe’s determination that a benefit is for the promotion of the general welfare.  The Regulations provide that “for example” that:

Accordingly, the Tribe has significant authority to design and implement general welfare programs to meet the needs of the community, and you will not personally be required to demonstrate that you have an “individualized need” to qualify to receive benefits under the CTSI Basic Living Assistance Program. However, CTSI may continue to administer other General Welfare Exclusion programs that require a member to complete an application and/or demonstrate a need (e.g., to receive tuition assistance).

14. If the Tribe is replacing per capita distributions with General Welfare Exclusion benefits, why do the Tribe’s revenue allocation laws still include references to per capita distributions?

The Indian Gaming Regulatory Act still requires the Tribe to have its own revenue allocation laws that comply with the IGRA. It is important to keep the Tribe’s revenue allocation laws as flexible as possible, so the Tribe can respond to changes in the law and the economy in a timely and effective way. The Tribe has determined that the general welfare needs of its members exceed the amount of the current distribution and therefore can be distributed entirely as General Welfare Exclusion benefits. It is possible, however, that at some time in the future the amount available for distribution to members will exceed their needs. At that point, a portion of the distribution would be made as taxable per capita payments. It is also possible that changes in federal law will require changes to the CTSI Basic Living Assistance Program. Rather than amending the Tribe’s revenue allocation laws again (which is a slow process that requires approval of the federal government), the Tribe is building flexibility into the documents so it is prepared for whatever the future brings.

15. Do I need to submit receipts to the Tribe for my general welfare expenses made under the CTSI Basic Living Assistance Program or retain such receipts for audit purposes?

The CTSI Basic Living Assistance Program does not require individuals to maintain receipts. The Preamble to the Regulations confirms that the U.S. Department of the Treasury and IRS’s position is that individuals are not required to maintain personal receipts to substantiate that a benefit provided under a general welfare program was used by that individual recipient for the purpose for which it was provided. The Tribe also believes that it would be reasonable for members not to retain receipts for benefits received under the CTSI Basic Living Assistance Program for audit purposes because the general welfare needs of the members exceeds the amount of the General Welfare Exclusion benefits received by the members under the program. However, it is possible that the Internal Revenue Service will issue guidance in the future requiring receipts to be kept or members to otherwise substantiate their general welfare expenses. The Tribe will modify the Program as necessary to respond to future IRS guidance.

16. Are the CTSI Basic Living Assistance Program distributions exempt from state income taxes?

Generally, yes. State income tax law almost always follows federal income tax law. Because the CTSI Basic Living Assistance Program distributions are exempt from federal income tax, in most cases they will be exempt from state income tax as well. Like most other states, Oregon follows federal tax law. Consequently, the CTSI Basic Living Assistance Program distributions should not be subject to Oregon state income taxes regardless of whether the member receiving the benefits lives on or off CTSI trust land.

17. Will the Program impact my Supplemental Security Income (“SSI”) or other federal and state benefits I receive?

The General Welfare Exclusion Act is a federal income tax law. It does not necessarily change how “income” is defined for non-tax purposes, such as SSI. Consequently, it is possible that CTSI Basic Living Assistance Program distributions could impact someone’s participation in benefit programs like SSI. However, the treatment of CTSI Basic Living Assistance Program distributions received under these federal and state programs will be the same or better than how those programs treat per capita distributions. Also, the Tribe is working to minimize the impact that the CTSI Basic Living Assistance Program distributions has on SSI and other similar benefits.

18. Are other tribes making distributions under the Tribal General Welfare Exclusion Act?

Yes. Although the specifics of the programs differ from tribe to tribe, other tribes in Oregon and across the country have developed their own programs for making general welfare distributions to their members on a tax-free basis.

19. How does this impact minors and the minor’s trust?

The Regulations confirm that assets in a minor’s trust may be distributed as tax-free General Welfare Exclusion benefits. The Regulations provide that the determination of whether a benefit is a General Welfare Exclusion benefit is made at the time the benefit is distributed from the minor’s trust to the eligible recipient. Thus, regardless of the source, the funds in a minor’s trust may be distributed to members as General Welfare Exclusion benefits. However, the distributions must satisfy the requirements of general welfare payments and as such, must be structured in a way to ensure that they will not be “lavish or extravagant” (e.g., through a distribution schedule). The Tribe is working quickly to implement these favorable changes in guidance.

20. Will I owe taxes, penalties, or face an IRS audit because of benefits I receive under the CTSI Basic Living Assistance Program?

No. The Program was specifically designed to comply with IRS guidance on the Tribal General Welfare Exclusion, which means the benefits are not taxable income to you. The Tribe does not expect participants to owe taxes or penalties as a result of receiving these benefits. The IRS retains the authority to review legal compliance, but any such review would generally be at the Tribal level and not directed at individual members.

21. What if I have other questions?

If you have more questions, please send them by email to: vanessaj@ctsi.nsn.us or rohanh@ctsi.nsn.us

22. What if I want to do my own research?

If you want to dig deeper into this on your own, we recommend reading guidance published by both the IRS and U.S. Department of the Treasury.

• The IRS has general welfare guidance available on its website: https://www.irs.gov/government-entities/indian-tribal-governments/tribal-general-welfare-guidance.
• In addition, the U.S. Department of the Treasury issued a press release on December 15, 2025, regarding the publication of the Regulations (the “Press Release”) and the Press Release includes links to the Regulations as well as a fact sheet the U.S. Department of the Treasury published: https://home.treasury.gov/news/press-releases/sb0337.