[Senate Report 119-70]
[From the U.S. Government Publishing Office]


                                                  Calendar No. 175

119th Congress}                                           { Report
                                 SENATE
  1st Session }                                           { 119-70

======================================================================
 
                     KEWEENAW BAY INDIAN COMMUNITY
                   LAND CLAIM SETTLEMENT ACT OF 2025

                                _______
                                

               September 29, 2025.--Ordered to be printed

                                _______
                                

         Ms. Murkowski, from the Committee on Indian Affairs, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 642]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Indian Affairs, to which was referred the 
bill, (S. 642) to provide compensation to the Keweenaw Bay 
Indian Community for the taking without just compensation of 
land by the United States inside the exterior boundaries of the 
L'Anse Indian Reservation that were guaranteed to the Community 
under a treaty signed in 1854, and for other purposes, having 
considered the same, reports favorably thereon without 
amendment and recommends that the bill, do pass.

                                PURPOSE

    S. 642 would acknowledge the uncompensated taking of 
Keweenaw Bay Indian Community (KBIC or Tribe) lands by the 
federal government, provide compensation for the taking of 
those lands, and extinguish all KBIC claims to those lands in 
exchange for the provided compensation.

                          BACKGROUND AND NEED

    KBIC is a federally recognized Indian Tribe with a 
reservation primarily comprised of two non-contiguous tracts 
within Baraga County in Michigan. The Tribe is the successor in 
interest to two treaties with the United States guaranteeing 
rights of use and occupancy of certain Michigan lands in the 
Keweenaw Bay area in 1842\1\ and creating a permanent 
reservation known as the L'Anse Indian Reservation in 1854.\2\ 
Both treaties remain in full force and effect.
---------------------------------------------------------------------------
    \1\Treaty with the Chippewa at La Pointe, Oct. 4, 1842, 7 Stat. 
591.
    \2\Treaty with the Chippewa at La Pointe, Sept. 30, 1854, 10 Stat. 
1109.
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    Between 1893 and 1937, in carrying out the Swamp Land Act 
of 1850,\3\ the U.S. Government Land Office patented 
approximately 2,743 acres from the KBIC's reservation to the 
State of Michigan without compensation to the Tribe and in 
violation of the 1842 and 1854 treaties.
---------------------------------------------------------------------------
    \3\Act of September 28, 1850, Ch. 84, 9 Stat. 519.
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    Separately, under the Canal Land Act of 1850,\4\ the U.S. 
Department of the Interior (DOI) transferred between 1,333.25 
and 2,720 acres of the Tribe's reservation to the State of 
Michigan to defray the state's cost of constructing the Sault 
Ste. Marie Canal, again without any compensation to the Tribe 
and in violation of the 1842 and 1854 treaties. In a December 
2021 letter opinion, the DOI determined that the Tribe's 
takings claims to the Swamp and Canal lands have merit.\5\
---------------------------------------------------------------------------
    \4\Act of August 26, 1852, Ch. 92, 10 Stat. 35.
    \5\Letter from Assistant Secretary Bryan Newland to KBIC President 
Warren Swartz, Jr. (December 10, 2021) (on file with Committee).
---------------------------------------------------------------------------
    Non-Indian individuals, entities, and local governments 
acquired the former Swamp and Canal lands in good faith and 
have a vested interest in possessing clear title. The Tribe has 
stated they do not seek ownership of those lands. Through a 
multi-year effort, the KBIC worked with neighboring local 
governments, the State of Michigan, the DOI, and its 
Congressional delegation to develop a resolution of their 
claims with the affected parties, as outlined, in the bill.

                                SUMMARY

    S. 642 authorizes $33,900,000 to be transferred to the 
Tribe in settlement for the uncompensated taking of their lands 
and authorizes the use of such funds for any legal purpose 
except for the purchase of land for gaming purposes. S. 642 
also extinguishes all of the Tribe's claims to the previously 
taken lands and clears title to those lands for the current 
landowners.

                          LEGISLATIVE HISTORY

    S. 642 was introduced by Senators Peters and Slotkin on 
January February 19, 2025.
    In the 118th Congress, an identical bill, S. 195, was 
introduced by Senators Peters and Stabenow on January 31, 2023. 
The Committee held a hearing on S. 195 on May 3, 2023. (S. Hrg. 
118-105). On July 19, 2023, the Committee held a business 
meeting to consider S. 195 and ordered the bill to be reported 
favorably, without amendment. (S. Rept. No. 118-129). S. 195 
passed the Senate without amendment by unanimous consent on 
December 19, 2023.
    H.R. 650, an identical companion bill, was introduced by 
Representative Jack Bergman (R-MI) in the House of 
Representatives on January 31, 2023. The bill was referred to 
the Committee on Natural Resources.

                        COMMITTEE RECOMMENDATION

    The Senate Committee on Indian Affairs in an open business 
meeting on March 5, 2025, by a majority voice vote of a quorum 
present, recommends that the Senate pass S. 642, without 
amendment.

                      SECTION-BY-SECTION ANALYSIS

Section 1--Short title

    This section provides the short title of S. 642 as the 
``Keweenaw Bay Indian Community Land Claim Settlement Act of 
2025.''

Section 2--Findings

    This section sets forth Congressional findings.

Section 3--Purposes

    This section establishes the purposes of this Act are to--
           acknowledge the uncompensated taking of 
        Tribe's Reservation Swamp Lands and Reservation Canal 
        Lands by the federal government;
           provide compensation to the Tribe for the 
        taking of those lands;
           extinguish all Tribal claims to the 
        Reservation Swamp Lands and Reservation Canal Lands and 
        confirm the current ownership of those lands were 
        obtained in good faith;
           extinguish all potential land claims by the 
        Tribe against the United States, the State of Michigan, 
        and current landowners; and
           authorize the Secretary of the Interior to 
        compensate the Tribe and take any other necessary 
        actions in order to carry out this Act.

Section 4--Definitions

    This section sets forth the definitions of ``Community'', 
``County'', ``Reservation'', ``Reservation Canal Lands'', 
``Reservation Swamp Lands'', ``Secretary'', and ``State'' that 
are used in this Act.

Section 5--Payments

    Section 5(a) directs the Secretary to transfer $33,900,000 
to the Tribe, as soon as practicable, after the funds are 
authorized to be appropriated and made available.
    Section 5(b) authorizes the use of appropriated funds for 
any lawful purpose, including, governmental services, economic 
development, natural resources protection, and land 
acquisition; and prohibits the use of funds received in this 
subsection to acquire land for gaming purposes.
    Section 5(c) authorizes $33,900,000 in appropriations to 
the Secretary of the Interior to carry out subsection (a) for 
fiscal year 2026 and the funds are to remain available under 
expended.

Section 6--Extinguishment of claims

    Section 6(a) extinguishes all of the Tribes' claims to 
lands owned by persons or entities other than KBIC that were 
transferred under the Swamp Lands Act and the Canal Lands Act, 
in exchange for compensation provided by this Act and becomes 
effective on the date on which the Tribe receives such payment 
pursuant to section 5(a).
    Section 6(b) clears title of all pre-existing Tribal rights 
to lands of current owners to the Reservation Swamp Lands and 
Reservation Canal Lands, effective on the date on which KBIC 
receives payment pursuant to section 5(a).

Section 7--Effect

    This section clarifies that the bill does not authorize: 
(1) the Secretary of the Interior to take land into trust for 
the benefit of the Tribe for gaming purposes, or (2) the Tribe 
to use funds received in this Act to acquire land for gaming 
purposes.

                   COST AND BUDGETARY CONSIDERATIONS



    S. 642 would authorize the appropriation of $34 million in 
fiscal year 2026 for the Keweenaw Bay Indian Community as 
compensation for the loss of land under the Swamp Land Act of 
1850 and the Canal Land Act of 1852. The funds could be used by 
the tribe for any lawful purpose, including governmental 
services, economic development, natural resources protection, 
and land acquisition for purposes other than gaming. For this 
estimate, CBO assumes that the Congress will appropriate the 
specified amount in fiscal year 2026.
    S. 642 contains intergovernmental mandates as defined in 
the Unfunded Mandates Reform Act (UMRA). The cost of the 
mandates would not exceed the annual threshold established in 
that act ($103 million in 2025, adjusted annually for 
inflation).
    The bill would extinguish claims of the Keweenaw Bay Indian 
Community against owners of the Reservation Swamp Lands and the 
Reservation Canal Lands. Eliminating an existing right of 
action is a mandate because the right to seek redress and 
recover damages beyond what is provided in the bill would be 
lost. Based on information from the tribe, CBO expects it is 
unlikely that the tribe would pursue such claims. Therefore, 
CBO estimates that the cost, if any, of the mandate would be 
small.
    The bill would prohibit gambling on tribal land obtained by 
the Keweenaw Bay Indian Community with funds from the 
settlement awarded under the bill. Because gaming on such land 
is currently allowed under federal law, the proposed ban would 
be a mandate. However, because the tribe has no plan to use 
settlement funds to obtain land for gaming purposes, the cost 
of the mandate would be small.
    The bill contains no private-sector mandates as defined in 
UMRA.
    The CBO staff contacts for this estimate are Julia Aman 
(for federal costs) and Rachel Austin (for mandates). The 
estimate was reviewed by H. Samuel Papenfuss, Deputy Director 
of Budget Analysis.
                                         Phillip L. Swagel,
                             Director, Congressional Budget Office.

               REGULATORY AND PAPERWORK IMPACT STATEMENT

    Paragraph 11(b) of rule XXVI of the Standing Rules of the 
Senate requires each report accompanying a bill to evaluate the 
that would be incurred in carrying out the bill. The Committee 
believes that S. 642, as reported, will have minimal impact on 
regulatory or paperwork requirements.

                 EXECUTIVE TESTIMONY AND COMMUNICATIONS

    The testimony provided by the U.S. Department of the 
Interior from the May 3, 2023, hearing on S. 195 follows:

  Statement of Bryan Newland, Assistant Secretary for Indian Affairs, 
                    U.S. Department of the Interior


s. 195, keweenaw bay indian community land claim settlement act of 2023


    Chairman Schatz, Vice Chairman Murkowski, and members of 
the Committee. My name is Bryan Newland, and I am the Assistant 
Secretary for Indian Affairs at the U.S. Department of the 
Interior (Department).
    Thank you for the opportunity to present the Department's 
views on S. 195, Keweenaw Bay Indian Community Land Claim 
Settlement Act of 2023, S. 382, Puyallup Tribe of Indians Land 
into Trust Confirmation Act of 2023, and S. __, Unlocking 
Native Lands and Opportunities for Commerce and Key Economic 
Developments Act of 2023.
    S. 195 would settle the Keweenaw Bay Indian Community's 
(KBIC) claims to certain lands within the exterior boundaries 
of the L'Anse Indian Reservation in Michigan. Specifically, the 
bill authorizes the Secretary of the Interior (Secretary) to 
provide monetary compensation to the KBIC for certain lands 
while extinguishing any claims by the KBIC to those lands to 
provide title certainty to current owners. The bill's findings 
and purpose sections provide key details on the claims by the 
KBIC and process by which the lands were transferred.
    As detailed in the finding section of S. 195, the KBIC was 
wrongfully dispossessed of lands reserved in the 1842 Treaty of 
La Pointe and 1854 Treaty of La Pointe that were subsequently 
conveyed to the State of Michigan under the Swamp Land Act of 
1850 and the Canal Land Act of 1852. The KBIC lost 2,743 acres 
of land under the Swamp Land Act and between 1,333.25 to 2,720 
acres of land under the Canal Land Act. The loss of this land 
has negatively impacted the ability of KBIC to exercise 
cultural, religious, and subsistence rights on the land as well 
as prevented economic growth.
    S. 195 authorizes the appropriation of $33.9 million to the 
Secretary to transfer to the KBIC as compensation for the loss 
of the lands under the Swamp Land Act of 1850 and the Canal 
Land Act of 1852. The funds may be used by the KBIC for any 
lawful purpose including governmental services, economic 
development, natural resources protection, and land 
acquisition, but restricts the funds from being used to acquire 
land for gaming purposes.
    The bill reflects the Department's understanding that the 
KBIC does not wish to reassert authority over the lands. S. 195 
specifies that when the KBIC receives the monetary 
compensation, all claims by the KBIC to the lands lost under 
the Swamp Land Act of 1850 and the Canal Land Act of 1852 are 
extinguished and the title of current owners of those lands are 
cleared of all preexisting rights held by the KBIC or any KBIC 
members.
    The Department applauds the Tribe's cooperative approach 
toward a meaningful resolution to their claims and supports S. 
195.

                        CHANGES IN EXISTING LAW

    In accordance with subsection 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee notes that no 
changes in existing law are made by the bill as ordered 
reported.

                                  [all]