The long-awaited general guidance on exclusion from social care will be released this summer

At the 14th Periodic Meeting of the Tribal Treasury Advisory Committee (TTAC) on May 15, 2024, representatives from the U.S. Department of the Treasury and the Internal Revenue Service announced that they expect to publish guidance on the Tribal Welfare Exemption Act of 2014 (the Act) this summer almost 10 years since the act entered into force.

The guidelines will take the form of proposed regulations. Tribes will have the opportunity to consult and comment on the proposed regulations before they become final. While it remains to be seen what will be included in the proposed regulations, the Treasury Department and the IRS emphasized at the TTAC meeting that they do not intend to replace the federal government’s ruling with that of tribal governments. Derogating from tribal governments and giving them the flexibility to design and administer their own general welfare exclusion programs are key topics in a 2022 report issued by the TTAC Subcommittee on General Welfare Exclusion.

The bill placed a moratorium on IRS audits related to welfare exclusion issues. The moratorium does not expire after the Treasury Department and the IRS issue guidance on the general welfare exclusion. Before audits resume, the Department of Treasury – in consultation with TTAC – must also provide training and education on the new guidelines to IRS field agents and tribal finance officers.