This report was sought by the Conference Committee on the Consolidated Omnibus Budget Reconciliation Act of 1985, concerned that federal law allows payments from tribal trust funds to be excluded when determining eligibility for welfare benefits to American Indians. Applicable federal laws and eligibility policies were reviewed to determine the treatment of tribal trust fund distributions and purchases made with such distributions by six welfare programs: Aid to Families with Dependent Children (AFDC); Supplemental Security Income (SSI); Food Stamps; Pensions for Needy Veterans, their Dependents and Survivors; the Indian housing component of Lower Income Housing Assistance; and the Bureau of Indian Affairs' General Assistance. It was found that for the four non-Social Security programs, guidance on a legislated $2,000 exclusion varied and was sometimes unclear. There was some inconsistency with federal laws in the treatment of such exclusions at the local level. The report recommended that Congress clarify the $2,000 exclusion required by the Judgment Funds Distribution Act and consider whether it is appropriate to require tribal trust fund awards and purchases to be treated differently under Social Security programs than under other welfare programs. The report also recommended that agency secretaries review welfare program policies to ensure consistent treatment of tribal trust fund distributions. The report includes tables, distribution figures and comments from affected agencies: the Department of Agriculture, the Department of Health and Human Services, the Department of Housing and Urban Development, Department of the Interior and the Veterans Administration. (TES)