ANCSA

The challenge was finding the best way to compensate Natives. The fear was that while a one-time payment would create a short-term boon, it would not translate into a long-term sustainable benefit for the Alaska Native community. This challenge was the hardest part of finalizing the settlement. 

The AFN proposed a revolutionary solution to this question. Instead of giving money directly to individuals, the money would be used to fund regional and village economic development corporations. All Alaska Natives would become shareholders in one or another of these corporations. The corporations would invest the settlement money in business opportunities to create long-term economic growth. Dividends would be paid to Native shareholders from the corporation's earnings.

This was the structure of the historic Alaska Native Claims Settlement Act (ANCSA) that Congress passed in 1971 and President Nixon signed on December 17th. Alaska Natives gained title to 44 million acres of historically used land in Alaska. The U.S. government paid $962.5 million in compensation for Natives relinquishing their claim to the remaining land in the state. That money was used to create 12 regional and over 200 village economic development corporations. Later, a 13th corporation was formed for Natives living outside Alaska. This settlement was unlike anything ever established for any Native Americans; it legitimized Alaska Natives as no other action had.