II 

116TH CONGRESS 

2D SESSION S. 3752 

To amend title VI of the Social Security Act to establish a Coronavirus 

Local Community Stabilization Fund. 

IN THE SENATE OF THE UNITED STATES 

MAY 18, 2020 

Mr. MENENDEZ (for himself, Mr. CASSIDY, Mrs. HYDE-SMITH, Ms. COLLINS, 

Mr. MANCHIN, and Mr. BOOKER) introduced the following bill; which was 

read twice and referred to the Committee on Banking, Housing, and 

Urban Affairs 

A BILL 

To amend title VI of the Social Security Act to establish 

a Coronavirus Local Community Stabilization Fund. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘State Municipal Assist5 ance for Response and Transition Act’’ or the ‘‘SMART 

6 Act’’. 


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1 SEC. 2. CORONAVIRUS LOCAL COMMUNITY STABILIZATION 

2 FUND. 

3 (a) IN GENERAL.—Title VI of the Social Security 

4 Act, as added by section 5001(a) of the Coronavirus Aid, 

5 Relief, and Economic Security Act (Public Law 116–136), 

6 is amended by adding at the end the following: 

7 ‘‘SEC. 602. CORONAVIRUS LOCAL COMMUNITY STABILIZA8 TION FUND. 

9 ‘‘(a) APPROPRIATION.— 

10 ‘‘(1) IN GENERAL.—Out of any money in the 

11 Treasury of the United States not otherwise appro12 priated, there are appropriated for making payments 

13 to States under this section, $500,000,000,000 for 

14 fiscal year 2020, to remain available until expended. 

15 ‘‘(2) RESERVATION OF FUNDS.—Of the amount 

16 appropriated under paragraph (1), the Secretary 

17 shall reserve $16,000,000,000 of such amount for 

18 making payments to Tribal governments under sub19 section (c)(7). 

20 ‘‘(b) AUTHORITY TO MAKE PAYMENTS.— 

21 ‘‘(1) IN GENERAL.—The Secretary shall pay 

22 each State the following amounts: 

23 ‘‘(A) Not later than 30 days after the date 

24 of enactment of this section, the relative popu25 lation proportion amount determined for the 

26 State under subsection (c)(1). 


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1 ‘‘(B) Not later than 30 days after the date 

2 of enactment of this section, the relative in3 fected population proportion amount deter4 mined for the State under subsection (c)(2). 

5 ‘‘(C) As soon as practicable after Decem6 ber 31, 2020, the relative lost revenue propor7 tion amount determined for the State under 

8 subsection (c)(3). 

9 ‘‘(2) AMOUNTS RESERVED FOR PAYMENTS TO

LOCAL GOVERNMENTS.—A State shall reserve 1 10 ⁄3 of 

11 each amount received by the State under paragraph 

12 (1) to make direct payments to units of local govern13 ment in the State under subsection (c)(6). 

14 ‘‘(c) PAYMENT AMOUNTS.— 

15 ‘‘(1) RELATIVE POPULATION PROPORTION

16 AMOUNT.—Subject to paragraph (5), the relative 

17 population proportion amount for a State is the 

18 product of— 

19 ‘‘(A) $161,333,333,333; and 

20 ‘‘(B) the amount equal to the quotient 

21 of— 

22 ‘‘(i) the population of the State; and 

23 ‘‘(ii) the total population of all States. 

24 ‘‘(2) RELATIVE INFECTED POPULATION PRO25 PORTION AMOUNT.—Subject to subparagraph (5), 


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1 the relative infected population proportion amount 

2 determined under this paragraph for a State is the 

3 product of— 

4 ‘‘(A) $161,333,333,333; and 

5 ‘‘(B) the quotient of— 

6 ‘‘(i) the cumulative population of the 

7 State that has been infected with 

8 Coronavirus Disease 2019 (COVID–19) as 

9 of June 1, 2020 (including individuals who 

10 were infected and have recovered as of 

11 such date); and 

12 ‘‘(ii) the total cumulative population 

13 of all States that has been infected with 

14 Coronavirus Disease 2019 (COVID–19) as 

15 of such date (including individuals who 

16 were infected and have recovered as of 

17 such date). 

18 ‘‘(3) RELATIVE LOST REVENUE PROPORTION

19 AMOUNT.—The relative lost revenue proportion 

20 amount determined under this paragraph for a State 

21 is the product of— 

22 ‘‘(A) $161,333,333,333; and 

23 ‘‘(B) the quotient of— 


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1 ‘‘(i) the lost revenue amount deter2 mined for the State under paragraph (4); 

3 and 

4 ‘‘(ii) the sum of the lost revenue 

5 amounts determined for all States under 

6 paragraph (4). 

7 ‘‘(4) LOST REVENUE AMOUNT.— 

8 ‘‘(A) IN GENERAL.—For purposes of para9 graph (3), with respect to a State, the lost rev10 enue amount is the amount equal to the 

11 amount by which— 

12 ‘‘(i) the amount of revenue from taxes 

13 or other sources for the State for calendar 

14 year 2019; exceeds 

15 ‘‘(ii) subject to subparagraph (B), the 

16 amount of revenue from taxes or other 

17 sources for the State for calendar year 

18 2020 (as certified by the Governor of the 

19 State). 

20 ‘‘(B) ADJUSTMENTS TO LOST REVENUE

21 AMOUNT.—For purposes of subparagraph 

22 (A)(ii), the amount of revenue from taxes or 

23 other sources for a State and calendar year 

24 2020 shall be adjusted in the following manner: 


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1 ‘‘(i) Such amount shall exclude any 

2 funds received by the State in calendar 

3 year 2020 under this title. 

4 ‘‘(ii) Such amount shall be increased 

5 by the amount of any reduction to State 

6 revenue from taxes or other sources for 

7 calendar year 2020 that results from the 

8 State— 

9 ‘‘(I) enacting a tax cut, rebate, 

10 deduction, or credit; or 

11 ‘‘(II) reducing, delaying, or elimi12 nating any fee or other source of rev13 enue. 

14 ‘‘(iii) Such amount shall be reduced 

15 by the amount of any expenditures made 

16 by the State during calendar year 2020 

17 necessary to meet the non-Federal share 

18 contribution requirement of any public as19 sistance that is provided under the Robert 

20 T. Stafford Disaster Relief and Emergency 

21 Assistance Act (42 U.S.C. 5121 et seq.) on 

22 the basis of a disaster or emergency dec23 laration under such Act that— 

24 ‘‘(I) is declared during the period 

25 beginning on January 1, 2020, and 


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1 ending on the date of enactment of 

2 this section; and 

3 ‘‘(II) is not related to the 

4 COVID–19 pandemic. 

5 ‘‘(5) COMBINED MINIMUM PAYMENT AMOUNT

6 FOR RELATIVE POPULATION AND RELATIVE IN7 FECTED POPULATION AMOUNTS.— 

8 ‘‘(A) IN GENERAL.—The sum of the 

9 amounts determined under paragraphs (1) and 

10 (2) for a State described in subparagraph (C) 

11 shall not be less than $2,000,000,000. 

12 ‘‘(B) PRO RATA ADJUSTMENTS.—The Sec13 retary shall adjust on a pro rata basis the 

14 amounts determined under paragraph (2) for 

15 each State described in subparagraph (C) to the 

16 extent necessary to comply with the require17 ment of subparagraph (A). 

18 ‘‘(C) STATES DESCRIBED.—The States de19 scribed in this subparagraph are each of the 50 

20 States, the District of Columbia, and Puerto 

21 Rico. 

22 ‘‘(6) DIRECT PAYMENTS TO UNITS OF LOCAL

23 GOVERNMENT.—Not later than 15 days after a 

24 State receives a payment under paragraph (1) of 

25 subsection (b), the State shall make the following 


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1 payments from the amount reserved by the State 

2 under paragraph (2) of that subsection with respect 

3 to such State payment: 

4 ‘‘(A) DIRECT PAYMENTS TO COUNTIES

5 AND MUNICIPALITIES BASED ON POPU6 LATION.—From each of the amounts reserved 

7 by a State under paragraph (2) of subsection 

8 (b) with respect to the payments received by the 

9 State under subparagraphs (A) and (B) of 

10 paragraph (1) of that subsection, the State 

11 shall pay to each unit of local government in 

12 the State that is a county or a municipality an 

13 amount equal to the product of— 

14 ‘‘(i) 50 percent of the amount so re15 served; and 

16 ‘‘(ii) the quotient of— 

17 ‘‘(I) the population of the county 

18 or municipality (as applicable); and 

19 ‘‘(II) the total population of— 

20 ‘‘(aa) in the case of a coun21 ty, all counties in the State; or 

22 ‘‘(bb) in the case of a mu23 nicipality, all municipalities in 

24 the State. 


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1 ‘‘(B) DIRECT PAYMENTS TO COUNTIES

2 AND MUNICIPALITIES BASED ON LOST REV3 ENUE.—From the amount reserved by a State 

4 under paragraph (2) of subsection (b) with re5 spect to the payment received by the State 

6 under subparagraph (C) of paragraph (1) of 

7 that subsection, the State shall pay to each unit 

8 of local government in the State that is a coun9 ty or a municipality an amount equal to the 

10 product of— 

11 ‘‘(i) 50 percent of the amount so re12 served; and 

13 ‘‘(ii) the quotient of— 

14 ‘‘(I) the lost revenue amount de15 termined for the county or munici16 pality (as applicable) under subpara17 graph (C); and 

18 ‘‘(II) the total lost revenue 

19 amounts determined under subpara20 graph (C) for— 

21 ‘‘(aa) in the case of a coun22 ty, all counties in the State; or 

23 ‘‘(bb) in the case of a mu24 nicipality, all municipalities in 

25 the State. 


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1 ‘‘(C) LOST REVENUE AMOUNT.—For pur2 poses of subparagraph (B), with respect to a 

3 county or municipality, the lost revenue amount 

4 shall be determined in the same manner as the 

5 lost revenue amount for a State is determined 

6 under paragraph (4). 

7 ‘‘(7) PAYMENTS TO TRIBAL GOVERNMENTS.— 

8 The amounts paid under this section to Tribal gov9 ernments from the amount reserved under sub10 section (a)(2) shall be paid not later than 30 days 

11 after the date of enactment of this section, and shall 

12 be determined in the same manner as the amounts 

13 paid to Tribal governments under section 601(c)(7) 

14 except that, for purposes of this section— 

15 ‘‘(A) the term ‘Tribal government’ means 

16 the governing body of an Indian Tribe included 

17 on the most recent list published by the Sec18 retary pursuant to section 104 of the Federally 

19 Recognized Indian Tribe List Act of 1994 (25 

20 U.S.C. 5131); and 

21 ‘‘(B) the term ‘Indian Tribe’ has the 

22 meaning given that term in section 102 of such 

23 Act (25 U.S.C. 5130), except that such term 

24 shall not include an Alaska Native regional or 

25 village corporation established pursuant to the 


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1 Alaska Native Claims Settlement Act (43 

2 U.S.C. 1601 et seq.). 

3 ‘‘(8) DATA.—For purposes of this subsection— 

4 ‘‘(A) the population of States, units of 

5 local governments, and Indian Tribes shall be 

6 determined based on the most recent year for 

7 which data are available from the Bureau of the 

8 Census; 

9 ‘‘(B) the determination of the populations 

10 of States infected with COVID–19 shall be 

11 based on data from the Centers for Disease 

12 Control and Prevention; and 

13 ‘‘(C) where Indian Tribal population can14 not be readily determined by the most recent 

15 year for which data are available from the Bu16 reau of the Census, the Department may con17 sider tribal population data from the Depart18 ment of Interior or Department of Housing and 

19 Urban Development. 

20 ‘‘(d) USE OF FUNDS.— 

21 ‘‘(1) IN GENERAL.—Amounts paid or distrib22 uted under this subsection shall be used— 

23 ‘‘(A) to cover only those costs of the State, 

24 unit of local government, or Tribal government 

25 that— 


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1 ‘‘(i) are necessary expenditures in2 curred due to the public health emergency 

3 with respect to the Coronavirus Disease 

4 2019 (COVID–19) (including expenditures 

5 necessary to meet the non-Federal share 

6 contribution requirement of any public as7 sistance that is provided under the Robert 

8 T. Stafford Disaster Relief and Emergency 

9 Assistance Act (42 U.S.C. 5121 et seq.) on 

10 the basis of a disaster or emergency dec11 laration under such Act that is declared in 

12 calendar year 2020; 

13 ‘‘(ii) were not accounted for in the 

14 budget most recently approved as of March 

15 27, 2020, for the State or local govern16 ment; and 

17 ‘‘(iii) were incurred during the period 

18 that begins on March 1, 2020, and ends on 

19 December 31, 2022; or 

20 ‘‘(B) for expenditures in calendar year 

21 2020, 2021, or 2022 that the State, Tribal gov22 ernment, or unit of local government would oth23 erwise be unable to make because of decreased 

24 or delayed revenues. 


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1 ‘‘(2) LIMITATION.—No State may use funds 

2 made available under this section for deposit into 

3 any State pension fund. 

4 ‘‘(e) FAIR AND EQUITABLE BUDGETING REQUIRE5 MENT.—As a condition for receiving amounts paid under 

6 this subsection, each State, to the extent allowable by 

7 State law, shall agree— 

8 ‘‘(1) to base any cut to funding to units of local 

9 government under the State budget on emergency 

10 need, and shall ensure that such cuts are balanced 

11 to ensure all units of local government are treated 

12 fairly; 

13 ‘‘(2) to primarily use economic conditions, 

14 budgetary shortfall, and revenue loss for each re15 spective county and municipality, as compared to 

16 2019 levels, to determine whether any such cut is 

17 balanced and appropriate; and 

18 ‘‘(3) that the State legislative body shall have 

19 the authority to disapprove such a cut if it violates 

20 a condition of paragraph (1) or (2). 

21 ‘‘(f) APPLICATION OF OTHER PROVISIONS.— 

22 ‘‘(1) DEFINITIONS.— 

23 ‘‘(A) IN GENERAL.—Except as otherwise 

24 provided in this paragraph and subsection 

25 (c)(7), the terms used in this section have the 


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1 meanings given those terms in subsection (g) of 

2 section 601. 

3 ‘‘(B) COUNTY.—The term ‘county’ means 

4 a county, parish, or other equivalent county di5 vision (as defined by the Bureau of the Cen6 sus). 

7 ‘‘(C) UNIT OF LOCAL GOVERNMENT.—In 

8 this section, the term ‘unit of local government’ 

9 means a county, municipality, town, township, 

10 village, parish, borough, or other unit of general 

11 government below the State level. 

12 ‘‘(2) OVERSIGHT.—The amounts paid under 

13 this section— 

14 ‘‘(A) shall be subject to the oversight re15 quirements of subsection (f) of section 601 in 

16 the same manner as such requirements apply to 

17 the amounts paid under that section, and the 

18 recoupment authority under paragraph (2) of 

19 that subsection shall apply to oversight of com20 pliance with the use of funds requirements of 

21 subsection (d) of this section and the fair and 

22 equitable budgeting requirements of subsection 

23 (e) of this section; and 

24 ‘‘(B) shall be distributed in accordance 

25 with all applicable Federal laws. 


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1 ‘‘(3) IG FUNDING AUTHORITY.—Notwith2 standing section 601(f)(3), the Inspector General of 

3 the Department of the Treasury may use the 

4 amounts appropriated under that section to carry 

5 out oversight and recoupment activities under this 

6 section in addition to the oversight and recoupment 

7 activities carried out under section 601(f).’’. 

8 (b) CONFORMING AMENDMENTS.—Section 601(d) of 

9 title VI of the Social Security Act, as added by section 

10 5001(a) of the Coronavirus Aid, Relief, and Economic Se11 curity Act (Public Law 116–136), is amended— 

12 (1) by redesignating paragraphs (1) through 

13 (3) as subparagraphs (A) through (C), respectively, 

14 and adjusting the margins accordingly; 

15 (2) in subparagraph (A) (as so redesignated), 

16 by inserting ‘‘(including expenditures necessary to 

17 meet the non-Federal share contribution require18 ment of any public assistance that is provided under 

19 the Robert T. Stafford Disaster Relief and Emer20 gency Assistance Act (42 U.S.C. 5121 et seq.) on 

21 the basis of a disaster or emergency declaration 

22 under such Act that is declared in calendar year 

23 2020)’’ before the semicolon; 


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1 (3) in subparagraph (C) (as so redesignated), 

2 by striking the period at the end and inserting ‘‘; 

3 and’’; 

4 (4) by striking ‘‘under this section to cover 

5 only’’ and inserting ‘‘under this section— 

6 ‘‘(1) to cover only—’’; and 

7 (5) by adding at the end the following new 

8 paragraph: 

9 ‘‘(2) for expenditures in calendar year 2020, 

10 2021, or 2022 that the State, Tribal government, or 

11 unit of local government would otherwise be unable 

12 to make because of decreased or delayed revenues.’’. 

Æ 


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