Actually, Manhatten was a swamp that the indians didn't really want.
My wife and I live just across a small stream from the local Paiute (Nuuma) rez, and I worked for the local indian health clinic. The reservation sits on the prime, the best land in the area; beautiful, green, and highly fertile. The pre-white invasion indians lived up the hill on dry ground - they were anxious to avoid the annual Spring runoff flooding.
Give them benefits? Well...FYI, all American Indians get excellent benefits, low-cost housing, tax-breaks, and free medical and dental treatment. They also get regular free, government supplied food handouts(usually white-man stuff that makes indians fat); called commodity food or commods, for short.
The local tribal members also get an annual check containing their share of the local casino profits.