I 
116TH CONGRESS 
2D SESSION 
H. R. 6954 
To amend title VI of the Social Security Act to establish a Coronavirus 
Local Community Stabilization Fund. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 19, 2020 
Ms. SHERRILL (for herself, Mr. KING of New York, Mr. O’HALLERAN, Mr. 
FITZPATRICK, Mrs. DINGELL, Ms. STEFANIK, Mr. TED LIEU of Cali-
fornia, Mr. UPTON, Mr. GOTTHEIMER, and Mr. REED) introduced the fol-
lowing bill; which was referred to the Committee on Oversight and Re-
form 
A BILL 
To amend title VI of the Social Security Act to establish 
a Coronavirus Local Community Stabilization Fund. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘State Municipal Assist-
ance for Response and Transition Act’’ or the ‘‘SMART 
Act’’. 
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SEC. 2. CORONAVIRUS LOCAL COMMUNITY STABILIZATION 
FUND. 
(a) IN GENERAL.—Title VI of the Social Security 
Act, as added by section 5001(a) of the Coronavirus Aid, 
Relief, and Economic Security Act (Public Law 116–136), 
is amended by adding at the end the following: 
‘‘SEC. 602. CORONAVIRUS LOCAL COMMUNITY STABILIZA-
TION FUND. 
‘‘(a) APPROPRIATION.— 
‘‘(1) IN GENERAL.—Out of any money in the 
Treasury of the United States not otherwise appro-
priated, there are appropriated for making payments 
to States under this section, $500,000,000,000 for 
fiscal year 2020, to remain available until expended. 
‘‘(2) RESERVATION OF FUNDS.—Of the amount 
appropriated under paragraph (1), the Secretary 
shall reserve $16,000,000,000 of such amount for 
making payments to Tribal governments under sub-
section (c)(7). 
‘‘(b) AUTHORITY TO MAKE PAYMENTS.— 
‘‘(1) IN
GENERAL.—The Secretary shall pay 
each State the following amounts: 
‘‘(A) Not later than 30 days after the date 
of enactment of this section, the relative popu-
lation proportion amount determined for the 
State under subsection (c)(1). 
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the relative infected population proportion amount 
determined under this paragraph for a State is the 
product of— 
‘‘(A) $161,333,333,333; and 
‘‘(B) the quotient of— 
‘‘(i) the cumulative population of the 
State that has been infected with Corona-
virus Disease 2019 (COVID–19) as of 
June 1, 2020 (including individuals who 
were infected and have recovered as of 
such date); and 
‘‘(ii) the total cumulative population 
of all States that has been infected with 
Coronavirus Disease 2019 (COVID–19) as 
of such date (including individuals who 
were infected and have recovered as of 
such date). 
‘‘(3) RELATIVE
LOST
REVENUE
PROPORTION 
AMOUNT.—The relative lost revenue proportion 
amount determined under this paragraph for a State 
is the product of— 
‘‘(A) $161,333,333,333; and 
‘‘(B) the quotient of— 
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‘‘(i) the lost revenue amount deter-
mined for the State under paragraph (4); 
and 
‘‘(ii) the sum of the lost revenue 
amounts determined for all States under 
paragraph (4). 
‘‘(4) LOST REVENUE AMOUNT.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (3), with respect to a State, the lost rev-
enue amount is the amount equal to the 
amount by which— 
‘‘(i) the amount of revenue from taxes 
or other sources for the State for calendar 
year 2019; exceeds 
‘‘(ii) subject to subparagraph (B), the 
amount of revenue from taxes or other 
sources for the State for calendar year 
2020 (as certified by the Governor of the 
State). 
‘‘(B) ADJUSTMENTS
TO
LOST
REVENUE 
AMOUNT.—For 
purposes 
of 
subparagraph 
(A)(ii), the amount of revenue from taxes or 
other sources for a State and calendar year 
2020 shall be adjusted in the following manner: 
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‘‘(i) Such amount shall exclude any 
funds received by the State in calendar 
year 2020 under this title. 
‘‘(ii) Such amount shall be increased 
by the amount of any reduction to State 
revenue from taxes or other sources for 
calendar year 2020 that results from the 
State— 
‘‘(I) enacting a tax cut, rebate, 
deduction, or credit; or 
‘‘(II) reducing, delaying, or elimi-
nating any fee or other source of rev-
enue. 
‘‘(iii) Such amount shall be reduced 
by the amount of any expenditures made 
by the State during calendar year 2020 
necessary to meet the non-Federal share 
contribution requirement of any public as-
sistance that is provided under the Robert 
T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5121 et seq.) on 
the basis of a disaster or emergency dec-
laration under such Act that— 
‘‘(I) is declared during the period 
beginning on January 1, 2020, and 
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ending on the date of enactment of 
this section; and 
‘‘(II) is not related to the 
COVID–19 pandemic. 
‘‘(5) COMBINED
MINIMUM
PAYMENT
AMOUNT 
FOR
RELATIVE
POPULATION
AND
RELATIVE
IN-
FECTED POPULATION AMOUNTS.— 
‘‘(A) IN
GENERAL.—The sum of the 
amounts determined under paragraphs (1) and 
(2) for a State described in subparagraph (C) 
shall not be less than $2,000,000,000. 
‘‘(B) PRO RATA ADJUSTMENTS.—The Sec-
retary shall adjust on a pro rata basis the 
amounts determined under paragraph (2) for 
each State described in subparagraph (C) to the 
extent necessary to comply with the require-
ment of subparagraph (A). 
‘‘(C) STATES DESCRIBED.—The States de-
scribed in this subparagraph are each of the 50 
States, the District of Columbia, and Puerto 
Rico. 
‘‘(6) DIRECT PAYMENTS TO UNITS OF LOCAL 
GOVERNMENT.—Not later than 15 days after a 
State receives a payment under paragraph (1) of 
subsection (b), the State shall make the following 
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payments from the amount reserved by the State 
under paragraph (2) of that subsection with respect 
to such State payment: 
‘‘(A) DIRECT
PAYMENTS
TO
COUNTIES 
AND
MUNICIPALITIES
BASED
ON
POPU-
LATION.—From each of the amounts reserved 
by a State under paragraph (2) of subsection 
(b) with respect to the payments received by the 
State under subparagraphs (A) and (B) of 
paragraph (1) of that subsection, the State 
shall pay to each unit of local government in 
the State that is a county or a municipality an 
amount equal to the product of— 
‘‘(i) 50 percent of the amount so re-
served; and 
‘‘(ii) the quotient of— 
‘‘(I) the population of the county 
or municipality (as applicable); and 
‘‘(II) the total population of— 
‘‘(aa) in the case of a coun-
ty, all counties in the State; or 
‘‘(bb) in the case of a mu-
nicipality, all municipalities in 
the State. 
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‘‘(B) DIRECT
PAYMENTS
TO
COUNTIES 
AND
MUNICIPALITIES
BASED
ON
LOST
REV-
ENUE.—From the amount reserved by a State 
under paragraph (2) of subsection (b) with re-
spect to the payment received by the State 
under subparagraph (C) of paragraph (1) of 
that subsection, the State shall pay to each unit 
of local government in the State that is a coun-
ty or a municipality an amount equal to the 
product of— 
‘‘(i) 50 percent of the amount so re-
served; and 
‘‘(ii) the quotient of— 
‘‘(I) the lost revenue amount de-
termined for the county or munici-
pality (as applicable) under subpara-
graph (C); and 
‘‘(II) 
the 
total 
lost 
revenue 
amounts determined under subpara-
graph (C) for— 
‘‘(aa) in the case of a coun-
ty, all counties in the State; or 
‘‘(bb) in the case of a mu-
nicipality, all municipalities in 
the State. 
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‘‘(C) LOST REVENUE AMOUNT.—For pur-
poses of subparagraph (B), with respect to a 
county or municipality, the lost revenue amount 
shall be determined in the same manner as the 
lost revenue amount for a State is determined 
under paragraph (4). 
‘‘(7) PAYMENTS TO TRIBAL GOVERNMENTS.— 
The amounts paid under this section to Tribal gov-
ernments from the amount reserved under sub-
section (a)(2) shall be paid not later than 30 days 
after the date of enactment of this section, and shall 
be determined in the same manner as the amounts 
paid to Tribal governments under section 601(c)(7) 
except that, for purposes of this section— 
‘‘(A) the term ‘Tribal government’ means 
the governing body of an Indian Tribe included 
on the most recent list published by the Sec-
retary pursuant to section 104 of the Federally 
Recognized Indian Tribe List Act of 1994 (25 
U.S.C. 5131); and 
‘‘(B) the term ‘Indian Tribe’ has the 
meaning given that term in section 102 of such 
Act (25 U.S.C. 5130), except that such term 
shall not include an Alaska Native regional or 
village corporation established pursuant to the 
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Alaska Native Claims Settlement Act (43 
U.S.C. 1601 et seq.). 
‘‘(8) DATA.—For purposes of this subsection— 
‘‘(A) the population of States, units of 
local governments, and Indian Tribes shall be 
determined based on the most recent year for 
which data are available from the Bureau of the 
Census; 
‘‘(B) the determination of the populations 
of States infected with COVID–19 shall be 
based on data from the Centers for Disease 
Control and Prevention; and 
‘‘(C) where Indian Tribal population can-
not be readily determined by the most recent 
year for which data are available from the Bu-
reau of the Census, the Department may con-
sider tribal population data from the Depart-
ment of Interior or Department of Housing and 
Urban Development. 
‘‘(d) USE OF FUNDS.— 
‘‘(1) IN GENERAL.—Amounts paid or distrib-
uted under this subsection shall be used— 
‘‘(A) to cover only those costs of the State, 
unit of local government, or Tribal government 
that— 
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‘‘(i) are necessary expenditures in-
curred due to the public health emergency 
with respect to the Coronavirus Disease 
2019 (COVID–19) (including expenditures 
necessary to meet the non-Federal share 
contribution requirement of any public as-
sistance that is provided under the Robert 
T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5121 et seq.)) 
on the basis of a disaster or emergency 
declaration under such Act that is declared 
in calendar year 2020; 
‘‘(ii) were not accounted for in the 
budget most recently approved as of March 
27, 2020, for the State or local govern-
ment; and 
‘‘(iii) were incurred during the period 
that begins on March 1, 2020, and ends on 
December 31, 2022; or 
‘‘(B) for expenditures in calendar year 
2020, 2021, or 2022 that the State, Tribal gov-
ernment, or unit of local government would oth-
erwise be unable to make because of decreased 
or delayed revenues. 
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‘‘(2) LIMITATION.—No State may use funds 
made available under this section for deposit into 
any State pension fund. 
‘‘(e) FAIR AND EQUITABLE BUDGETING REQUIRE-
MENT.—As a condition for receiving amounts paid under 
this subsection, each State, to the extent allowable by 
State law, shall agree— 
‘‘(1) to base any cut to funding to units of local 
government under the State budget on emergency 
need, and shall ensure that such cuts are balanced 
to ensure all units of local government are treated 
fairly; 
‘‘(2) to primarily use economic conditions, 
budgetary shortfall, and revenue loss for each re-
spective county and municipality, as compared to 
2019 levels, to determine whether any such cut is 
balanced and appropriate; and 
‘‘(3) that the State legislative body shall have 
the authority to disapprove such a cut if it violates 
a condition of paragraph (1) or (2). 
‘‘(f) APPLICATION OF OTHER PROVISIONS.— 
‘‘(1) DEFINITIONS.— 
‘‘(A) IN GENERAL.—Except as otherwise 
provided in this paragraph and subsection 
(c)(7), the terms used in this section have the 
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meanings given those terms in subsection (g) of 
section 601. 
‘‘(B) COUNTY.—The term ‘county’ means 
a county, parish, or other equivalent county di-
vision (as defined by the Bureau of the Cen-
sus). 
‘‘(C) UNIT OF LOCAL GOVERNMENT.—In 
this section, the term ‘unit of local government’ 
means a county, municipality, town, township, 
village, parish, borough, or other unit of general 
government below the State level. 
‘‘(2) OVERSIGHT.—The amounts paid under 
this section— 
‘‘(A) shall be subject to the oversight re-
quirements of subsection (f) of section 601 in 
the same manner as such requirements apply to 
the amounts paid under that section, and the 
recoupment authority under paragraph (2) of 
that subsection shall apply to oversight of com-
pliance with the use of funds requirements of 
subsection (d) of this section and the fair and 
equitable budgeting requirements of subsection 
(e) of this section; and 
‘‘(B) shall be distributed in accordance 
with all applicable Federal laws. 
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‘‘(3) IG FUNDING AUTHORITY.—Notwithstand-
ing section 601(f)(3), the Inspector General of the 
Department of the Treasury may use the amounts 
appropriated under that section to carry out over-
sight and recoupment activities under this section in 
addition to the oversight and recoupment activities 
carried out under section 601(f).’’. 
(b) CONFORMING AMENDMENTS.—Section 601(d) of 
title VI of the Social Security Act, as added by section 
5001(a) of the Coronavirus Aid, Relief, and Economic Se-
curity Act (Public Law 116–136), is amended— 
(1) by redesignating paragraphs (1) through 
(3) as subparagraphs (A) through (C), respectively, 
and adjusting the margins accordingly; 
(2) in subparagraph (A) (as so redesignated), 
by inserting ‘‘(including expenditures necessary to 
meet the non-Federal share contribution require-
ment of any public assistance that is provided under 
the Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act (42 U.S.C. 5121 et seq.) on 
the basis of a disaster or emergency declaration 
under such Act that is declared in calendar year 
2020)’’ before the semicolon; 
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(3) in subparagraph (C) (as so redesignated), 
by striking the period at the end and inserting ‘‘; 
and’’; 
(4) by striking ‘‘under this section to cover 
only’’ and inserting ‘‘under this section— 
‘‘(1) to cover only—’’; and 
(5) by adding at the end the following new 
paragraph: 
‘‘(2) for expenditures in calendar year 2020, 
2021, or 2022 that the State, Tribal government, or 
unit of local government would otherwise be unable 
to make because of decreased or delayed revenues.’’. 
Æ 
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