Senate Approves $4.6B For Black Farmers, Indians

The Senate has approved almost $4.6 billion to settle long-standing claims brought by American Indians and black farmers against the government.

The money has been held up for months in the Senate as Democrats and Republicans squabbled over how to pay for it. The two class action lawsuits were filed over a decade ago.

The settlements include almost $1.2 billion for black farmers who say they suffered discrimination at the hands of the Agriculture Department. Also, $3.4 billion would go to Indian landowners who claim they were swindled out of royalties by the Interior Department. The legislation was approved in the Senate by voice vote Friday and sent to the House.

The legislation also includes a one-year extension of the Temporary Assistance for Needy Families program, which gives grants to states to provide cash assistance and other services to the poor, and several American Indian water rights settlements in Arizona, Montana and New Mexico sought by Sen. Jon Kyl, R-Ariz.

In the Indian case, at least 300,000 Native Americans claim they were swindled out of royalties overseen by the Interior Department since 1887 for things like oil, gas, grazing and timber. The plaintiffs would share the settlement.

The Indian plaintiffs originally said they were owed $100 billion, but signaled they were willing to settle for less as the trial wore on. After more than 3,600 court filings and 80 court decisions, the two sides finally reached a settlement in December.

For the black farmers, it is the second round of funding from a class-action lawsuit originally settled in 1999 over allegations of widespread discrimination by local Agriculture Department offices in awarding loans and other aid. It is known as the Pigford case, named after Timothy Pigford, a black farmer from North Carolina who was an original plaintiff.

The government already has paid out more than $1 billion to about 16,000 farmers, with most getting payments of about $50,000. The new money is intended for people — some estimates say 70,000 or 80,000 — who were denied earlier payments because they missed deadlines for filing. The amount of money each would get depends on how many claims are successfully filed.

Agriculture Secretary Tom Vilsack said passage "marks a major milestone in USDA's efforts to turn the page on a sad chapter in our history."

Last month, the Agriculture Department offered American Indian farmers who say they were denied farm loans a $680 million settlement. Hispanic and women farmers also have cases pending against the department.        More on this