unit of general government below the State 
level; or 
‘‘(iii) as a result of the COVID–19 
emergency, increased expenditures nec-
essary to continue operations. 
‘‘(C) AMOUNT OF PAYMENT.— 
‘‘(i) IN GENERAL.—Subject to clauses 
(ii) and (iii), the amount of the payment 
for a special district shall be determined by 
the Governor or the State or the des-
ignated payment entity, taking into consid-
eration the extent of a projected budget 
shortfall for the special district during the 
COVID–19 emergency and the need of the 
special district to supplement projected 
revenue. 
‘‘(ii) LIMITATION.—Except as pro-
vided in clause (iii), the amount paid to a 
special district shall not exceed the amount 
of expenditures made by the special district 
for any quarter of calendar year 2019. 
‘‘(iii) EXCEPTION FOR PROVIDERS OF 
ESSENTIAL
CRITICAL
INFRASTRUCTURE 
SECTOR
SERVICES.—If a special district 
provides essential critical infrastructure 
VerDate Sep 11 2014 
23:37 Feb 15, 2021
Jkt 019200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H535.IH
H535
kjohnson on DSK79L0C42PROD with BILLS
sector services (as defined by the Cyberse-
curity and Infrastructure Security Agency 
of the Department of Homeland Security), 
the amount paid to the special district may 
exceed the limit applicable under clause 
(ii). 
‘‘(iv) RULE
OF
CONSTRUCTION.— 
Nothing in the preceding clauses of this 
subparagraph shall be construed as requir-
ing payment of an amount sufficient to 
provide a special district with full oper-
ational funding during the COVID–19 
emergency. 
‘‘(D) 
RESPONSIBLE
AUTHORITY
FOR 
RECOUPMENT.—If it is determined that a pay-
ment made to a special district did not comply 
with the requirements of the preceding subpara-
graphs, or was otherwise fraudulent or im-
proper, the special district shall be liable for the 
debt owed to the Federal Government under 
subsection (f), unless all or a part of the basis 
for such determination is that the determina-
tion required under subparagraph (A) regarding 
the accuracy of the information demonstrating 
the need for the payment was not made in good 
VerDate Sep 11 2014 
23:37 Feb 15, 2021
Jkt 019200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H535.IH
H535
kjohnson on DSK79L0C42PROD with BILLS
faith, in which case the State shall be liable for 
all or a part of such debt, as the Secretary de-
termines appropriate. 
‘‘(E) DEADLINE
FOR
DISTRIBUTION
OF 
FUNDS.—Payments to special districts in a 
State shall be distributed not later than 60 
days after the State receives a payment from 
any excess amount described in subsection 
(a)(3). 
‘‘(F) COVID–19 EMERGENCY.—For pur-
poses of this paragraph, the term ‘COVID–19 
emergency’ means the public health emergency 
declared by the Secretary of Health and 
Human Services pursuant to section 319 of the 
Public Health Service Act on January 31, 
2020, entitled ‘Determination that a Public 
Health Emergency Exists Nationwide as the 
Result of the 2019 Novel Coronavirus’ and in-
cludes any renewal of such declaration pursuant 
to such section 319. 
‘‘(7) EXCESS FUNDS WAIVER.— 
‘‘(A) IN GENERAL.—If a State has allo-
cated funds from a payment to the State de-
scribed in paragraph (6) to special districts in 
that State, but has not met the 5 percent allo-
VerDate Sep 11 2014 
23:37 Feb 15, 2021
Jkt 019200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H535.IH
H535
kjohnson on DSK79L0C42PROD with BILLS
cation requirement of that paragraph, the Gov-
ernor of the State may submit to the Secretary, 
in writing, a request for an excess funds waiver 
to exempt the State from having to make addi-
tional allocations from such funds to make up 
the remainder of such 5 percent requirement, 
and to allow the State to use the funds remain-
ing in accordance with this section. 
‘‘(B) REQUIREMENTS.—A waiver request 
submitted under subparagraph (A) shall pro-
vide— 
‘‘(i) information regarding how funds 
from the payment to the State described in 
paragraph (6) were allocated to special dis-
tricts in the State and otherwise used; and 
‘‘(ii) an explanation why the require-
ment for the State to meet the 5 percent 
allocation requirement of paragraph (6) 
should be waived. 
‘‘(C) DEADLINES.— 
‘‘(i) WAIVER
REQUEST.—A request 
for an excess funds waiver shall be sub-
mitted to the Secretary not later than 60 
days after the State receives a payment de-
scribed in paragraph (6). 
VerDate Sep 11 2014 
23:37 Feb 15, 2021
Jkt 019200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H535.IH
H535
kjohnson on DSK79L0C42PROD with BILLS
‘‘(ii) APPROVAL
OR
DISAPPROVAL.— 
The Secretary shall approve or disapprove 
a waiver request submitted under subpara-
graph (A), in writing, not later than 14 
days after the Secretary receives the re-
quest.’’. 
(c) DEFINITION
OF SPECIAL DISTRICT.—Section 
601(g) of the Social Security Act (42 U.S.C. 801(g)) is 
amended— 
(1) by redesignating paragraphs (4) through 
(5) as paragraphs (5) through (6), respectively; and 
(2) by inserting after paragraph (3) the fol-
lowing new paragraph: 
‘‘(4) SPECIAL DISTRICT.—The term ‘special dis-
trict’ means a political subdivision of a State, 
formed pursuant to general law or special act of the 
State, for the purpose of performing one or more 
governmental or proprietary functions.’’. 
(d) TREASURY IG OVERSIGHT AUTHORITY.—Section 
601(f)(2) of such Act (42 U.S.C. 801(f)(2)) is amended— 
(1) by inserting ‘‘or that a special district or 
State has not complied with the requirements of 
paragraph (6) or (7) of subsection (c) (as applica-
ble),’’ after ‘‘subsection (d),’’; and 
VerDate Sep 11 2014 
23:37 Feb 15, 2021
Jkt 019200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H535.IH
H535
kjohnson on DSK79L0C42PROD with BILLS
(2) by striking ‘‘such subsection’’ and inserting 
‘‘subsection (d) or paragraph (6) or (7) of sub-
section (c) (as applicable)’’. 
(e) UPDATE TO GUIDANCE.—The Secretary of the 
Treasury shall update any guidance issued with respect 
to the Coronavirus Relief Fund established under section 
601 of the Social Security Act (42 U.S.C. 801) to reflect 
the inclusion of special districts as eligible for payments 
from amounts appropriated under such section, to the ex-
tent such amounts exceed $150,000,000,000. 
SEC. 3. INCLUDING SPECIAL DISTRICTS IN THE MUNICIPAL 
LIQUIDITY FACILITY. 
The Board of Governors of the Federal Reserve Sys-
tem shall include special districts, as defined in section 
601(g)(4) of the Social Security Act (42 U.S.C. 801(g)(4)) 
(as added by section 2(c)), as eligible issuers in the Munic-
ipal Liquidity Facility program authorized under section 
13(3) of the Federal Reserve Act (12 U.S.C. 343(3)). 
Æ 
VerDate Sep 11 2014 
23:37 Feb 15, 2021
Jkt 019200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6301
E:\BILLS\H535.IH
H535
kjohnson on DSK79L0C42PROD with BILLS