Local Government Relief Act

To require States to make distributions from the State's Coronavirus Relief Fund payment to local governments that did not receive a direct payment from the Fund. 1. Short title This Act may be cited as the Local Government Relief Act 2. Deadline for distribution of the local government share of the State Co­ro­na­vi­rus Relief Fund payment (a) Pass-Through requirement Subsection (b) of section 601 of the Social Security Act, as added by section 5001(a) of the Coronavirus Aid, Relief, and Economic Security Act ( Public Law 116–136 (3) Pass-through requirement (A) In general Not later than June 30, 2020, each State (other than the District of Columbia) shall make, from the amount paid to the State under this section, a distribution to each unit of local government in the State that is not a large unit of local government that received a direct payment under this section in accordance with paragraph (2). (B) Amount to be distributed The total amount of the distributions made by a State to units of local government under this paragraph shall not be less than 45 percent of the amount paid to the State under this section for fiscal year 2020 (after the application of paragraph (2)). (C) Manner of distribution Amounts distributed by a State under this paragraph shall be distributed from the amount paid to the State under this section— (i) upon receipt and on a pass-through-basis; and (ii) without requiring any application from a unit of local government. (D) Report If a State is unable to make distributions to units of local government in accordance with the requirements of this paragraph, the State shall submit a detailed report to the Secretary explaining why the State is unable to meet such requirements. The Secretary shall publish each such report in the Federal Register. . (b) Conforming amendments Section 601 of such Act is further amended— (1) in subsection (b)— (A) in paragraphs (1) and (2), by inserting large unit of local government (B) in paragraph (2)— (i) in the paragraph heading, by inserting large units (ii) by adding at the end the following: For purposes of this section, the term large unit of local government (2) in subsection (c)(5)— (A) in the paragraph heading, by inserting large unit (B) by inserting large unit of local government (3) in subsection (d), by inserting or distribution payment (4) in subsection (e)— (A) by inserting direct payment (B) by inserting large unit of local government (5) in subsection (g)(2)— (A) in the paragraph heading, by striking Local Unit of local (B) by striking with a population that exceeds 500,000. (c) Effective date The amendments made by this section shall take effect as if included in the enactment of section 601 of the Social Security Act, as added by section 5001(a) of the Coronavirus Aid, Relief, and Economic Security Act ( Public Law 116–136

Summary: Local Government Relief Act This bill requires states to pay by June 30, 2020, at least 45% of the amounts received from the Coronavirus Relief Fund to local governments that did not receive a direct payment from the fund. Such sums shall be distributed by a state upon receipt and on a pass-through basis without requiring any application from a unit of local government. If a state is unable to make distributions to units of local government in accordance with these requirements, the state shall submit a detailed report explaining why it is unable to meet such requirements.