Trust Fund

Out of the $81.5 million settlement, a Settlement Fund of $27 million was established:   $13.5 million each for the Penobscot Indian Nation and the Passamaquoddy Tribe to be held in trust by the U.S. government.  The money is invested by the Secretary of the Interior as agreed to by both parties.  The income from the investments is distributed quarterly to both parties.  This income is tax-free and without restriction, except that interest from $1 million each is designated to be spent for the benefit of elders over 60 years of age. 

Although the Houlton Band of Maliseets received federal recognition under the settlement and $900,000 for land purchase, it gained no trust fund.