Four American Indian tribes in San Diego County will each get $22.6 million in tax-exempt bonding authority for economic development as part of the federal economic stimulus package, the Internal Revenue Service announced this week.

The tribes are the La Jolla Band of Mission Indians near Palomar Mountain, the Pauma Band of Mission Indians in Pauma Valley, the San Pasqual Band of Mission Indians in Valley Center and the Viejas Band of Mission Indians in East County.

Under the Tribal Economic Development Bonds program, the federal government will allow tribes to sell up to $1 billion in tax-exempt bonds this year and another $1 billion next year.

The bonds are similar to those used by cities and states to pay for large infrastructure and economic development projects. They are attractive to investors because the interest payments are not subject to federal income tax.

In the past, tribal governments have been prohibited from issuing the bonds, Indian rights advocates say.

The bonds will allow the tribes to build tourism facilities, such as hotels, golf courses and convention centers; to generate jobs and income in Indian communities; and to construct infrastructure projects, schools and low-income housing.

"We are trying to promote economic development so that our children can be educated and healthy," said Tom Rodgers of Carlyle Consulting, a leading lobbyist for tribal governments and a member of the Blackfeet Nation in Montana.

It is unclear what the four local tribes will use the bonds for.

But tribes are not allowed to use the bonds to build casinos, according to the federal government.

"We are examining the terms and conditions attached to the funding and looking at how to best use the funding for economic development and job retention and creation," said Bob Scheid, a spokesman for the Viejas tribe.

A spokeswoman for the San Pasqual tribe said it was not prepared to discuss its plans.

The San Pasqual tribe owns Valley View Casino, which has 1,574 Las Vegas-style slot machines, and is building a 12-story, 161-suite hotel.

The Pauma and La Jolla bands could not be reached for comment.

The Pauma tribe plans a $300 million expansion of its casino, a project that includes a 19-story hotel and 2,500 slot machines on the tribe's reservation about 20 miles north of Escondido.

In 2006, the La Jolla tribe said it planned to build a 35,000-square-foot casino with 500 slot machines, a restaurant and a 150-room hotel. It opened a 30-machine "slot arcade" in 2002 inside a convenience store next to Highway 76, but closed it soon afterward and no longer operates a casino.

Dante Desiderio, a spokesman for the Indian rights group the National Congress of American Indians, said the authority to issue tax-exempt bonds for tribes was long overdue.

"These bonds are one of the tools other governments used, and tribes have not been allowed to use, to fund economic ventures," Desiderio said.

Tribes cannot levy taxes like state and local governments and rely on businesses, such as casinos, to generate revenues, Desiderio said.

Allowing tribes to issue tax-exempt bonds could make their projects more attractive to lenders because it would mean a greater return on the investment, Desiderio said.

Call staff writer Edward Sifuentes at 760-740-3511.