The United States was essentially stolen from Native American tribes. As compensation, the tribes have been given small amounts of untenable land that has led to years of poverty for native people on reservations. The government has not done nearly enough for these people who have been forced into poverty by the actions of the United States and earlier settlers.
Look at history. Look at the consistent way the US government took tribal land or bought it for shells. Remember how settlers basically invaded and killed Native Americans? This land didn't belong to any of the original colonists, it was settled by Native American tribes. The money can't begin to make up for the loss of land and loss of life.
No, the government has not been overly generous. The US govt led a genocide to wipe out the native Americans in the 1800s. This act is the least the US govt can do to make up for what they did to the natives' ancestors. In fact, the US govt should be doing more to help in the native american communities.
No, the U.S. government is not being overly generous. $492 million dollars is barely a drop in the bucket when you consider how much the government spends on other sources. Native tribes have been forced onto a small spit of land, when rightfully speaking, the entire nation was theirs to begin with. The Native Americans will use this money for the good of their people. This is a minuscule amount of money when you think of the good their children can do for the future.