I 
117TH CONGRESS 
1ST SESSION 
H. R. 535 
To amend the Social Security Act to include special districts in the 
coronavirus relief fund, to direct the Secretary to include special districts 
as an eligible issuer under the Municipal Liquidity Facility, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 28, 2021 
Mr. GARAMENDI (for himself, Mrs. DEMINGS, Mr. KILMER, Ms. LEE of Cali-
fornia, Mrs. NAPOLITANO, Mr. RUSH, Mr. PANETTA, Ms. BROWNLEY, 
Mr. BERA, Ms. KELLY of Illinois, Mr. DEFAZIO, Mr. CRIST, Mr. DOG-
GETT, Ms. ESHOO, Mr. COSTA, Mr. TAKANO, Mr. CARBAJAL, Mr. 
PETERS, Mr. DESAULNIER, Mr. MCNERNEY, Mr. LOWENTHAL, and Mr. 
THOMPSON of California) introduced the following bill; which was re-
ferred to the Committee on Oversight and Reform, and in addition to the 
Committee on Financial Services, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Social Security Act to include special districts 
in the coronavirus relief fund, to direct the Secretary 
to include special districts as an eligible issuer under 
the Municipal Liquidity Facility, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Special Districts Pro-
vide Essential Services Act’’. 
SEC. 
2. 
INCLUSION 
OF 
SPECIAL 
DISTRICTS 
IN 
THE 
CORONAVIRUS RELIEF FUND. 
(a) IN GENERAL.—Section 601(a) of the Social Secu-
rity Act (42 U.S.C. 801(a)) is amended by adding at the 
end the following new paragraph: 
‘‘(3) FUNDS FOR SPECIAL DISTRICTS.—If an 
amount in excess of $150,000,000,000 is appro-
priated for payments made under this section, spe-
cial districts shall be eligible for payments from the 
portion of such excess amount paid to States in ac-
cordance with subsection (c)(6).’’. 
(b) AMOUNT
FOR
SPECIAL
DISTRICTS.—Section 
601(c) of the Social Security Act (42 U.S.C. 801(c)) is 
amended— 
(1) by redesignating paragraphs (6) through 
(8) as paragraphs (8) through (10), respectively; 
and 
(2) by inserting after paragraph (5) the fol-
lowing new paragraphs: 
‘‘(6) SPECIAL DISTRICTS.— 
‘‘(A) IN GENERAL.—If a portion of any ex-
cess amount described in subsection (a)(3) is 
paid to a State, the State shall allocate at least 
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5 percent of such portion for distributing pay-
ments to special districts in the State that sub-
mit to the Governor of the State or the entity 
designated by the Governor to distribute such 
payments (referred to in this paragraph as the 
‘designated payment entity’) a request for a 
payment during the COVID–19 emergency and 
information described in subparagraph (B) 
demonstrating the need for the payment, which 
the Governor of the State or the designated 
payment entity has determined, on the basis of 
a good faith effort, is accurate. 
‘‘(B) INFORMATION
DESCRIBED.—Infor-
mation described in this subparagraph is writ-
ten documentation demonstrating with respect 
to a comparable period before the COVID–19 
emergency that the special district has experi-
enced or is likely to experience during the 
COVID–19 emergency— 
‘‘(i) reduced revenue or operational 
funding derived from provided services, 
taxes, fees, or other sources of revenue; 
‘‘(ii) reduced indirect funding from 
the Federal Government, the State, or a 
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