State & Local Emergency Stabilization Fund Act of 2021
Bill: S.252 | Sponsor: Sen. Reed, Jack (D-RI)
Policy area: Government Operations and Politics

Summary:
State & Local Emergency Stabilization Fund Act of 2021
This bill appropriates $600 billion in additional funding for states, territories, tribal governments, and local communities due to the COVID-19 (i.e., coronavirus disease 2019) public health emergency and allows additional uses for Coronavirus Relief Fund payments.
The bill allows payments under this bill or from the Coronavirus Relief Fund to be used for expenditures from January 1, 2020, to June 30, 2022, regardless of a connection to the COVID-19 emergency. Payments may not be used to provide a tax cut, rebate, or other tax benefit or to reduce or eliminate a fee.
The funds provided by this bill are allocated between (1) the U.S. Virgin Islands, Guam, the Northern Mariana Islands, American Samoa; (2) tribal governments; (3) states, the District of Columbia, and Puerto Rico; and (4) local communities.
Payment amounts for states, the District of Columbia, and Puerto Rico are based on population and the coronavirus infection rate. The bill sets a minimum payment amount.

To amend title VI of the Social Security Act to provide additional 
 funding for States, Tribal governments, and local communities due to 
 the Coronavirus Disease 2019 (COVID-19) public health emergency, and 
                          for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``State & Local Emergency 
Stabilization Fund Act of 2021''.

SEC. 2. ADDITIONAL FUNDING FOR CORONAVIRUS RELIEF FOR STATES, TRIBAL 
              GOVERNMENTS, AND LOCAL COMMUNITIES.

    Title VI of the Social Security Act (42 U.S.C. 801 et seq.) is 
amended by adding at the end the following:

``SEC. 602. ADDITIONAL FUNDING FOR CORONAVIRUS RELIEF FOR STATES, 
              TRIBAL GOVERNMENTS, AND LOCAL COMMUNITIES.

    ``(a) Appropriation.--
            ``(1) In general.--Out of any money in the Treasury of the 
        United States not otherwise appropriated, there are 
        appropriated for making payments under this section to States, 
        Tribal governments, and local communities described in 
        subsection (c)(6), $600,000,000,000 for fiscal year 2021. The 
        amount appropriated under this paragraph and paid in accordance 
        with this section shall be in addition to the amount 
        appropriated under subsection (a) of section 601 and paid to 
        States, Tribal governments, and units of local government under 
        that section.
            ``(2) Reservation of funds.--Of the amount appropriated 
        under paragraph (1), the Secretary shall reserve--
                    ``(A) $3,000,000,000 of such amount for making 
                payments to United States Virgin Islands, Guam, the 
                Commonwealth of the Northern Mariana Islands, and 
                American Samoa under subsection (c)(7);
                    ``(B) $10,000,000,000 of such amount for making 
                payments to Tribal governments under subsection (c)(8);
                    ``(C) $59,000,000,000 of such amount for the 
                portion of the payments made to the 50 States, the 
                District of Columbia, and the Commonwealth of Puerto 
                Rico that is determined under subsection (c)(5); and
                    ``(D) $205,000,000,000 of such amount for making 
                payments to local communities under subsection (c)(6).
    ``(b) Deadline for Payments.--The Secretary shall make the payments 
determined under subsection (c) not later than 15 days after the date 
of enactment of this section.
    ``(c) Payment Amounts.--
            ``(1) In general.--Subject to paragraph (2), the amount 
        paid under this section for fiscal year 2021 to a State that is 
        1 of the 50 States, the District of Columbia, or the 
        Commonwealth of Puerto Rico, shall be the sum of--
                    ``(A) the relative population proportion amount 
                determined for the State under paragraph (3) for such 
                fiscal year; and
                    ``(B) the relative coronavirus infection rate 
                proportion amount determined for the State under 
                paragraph (5) for such fiscal year.
            ``(2) Minimum payment.--
                    ``(A) In general.--No State that is 1 of the 50 
                States, the District of Columbia, or the Commonwealth 
                of Puerto Rico, shall receive a payment under this 
                section for fiscal year 2021 that is less than 
                $5,000,000,000.
                    ``(B) Pro rata adjustments.--The Secretary shall 
                adjust on a pro rata basis the amount of the payments 
                for each of the 50 States, the District of Columbia, 
                and the Commonwealth of Puerto Rico, determined under 
                this subsection without regard to this subparagraph to 
                the extent necessary to comply with the requirements of 
                subparagraph (A).
            ``(3) Relative population proportion amount.--For purposes 
        of paragraph (1)(A), the relative population proportion amount 
        determined under this paragraph for a State for fiscal year 
        2021 is the product of--
                    ``(A) the amount appropriated under subsection 
                (a)(1) for fiscal year 2021 that remains after the 
                application of the reservations made under subsection 
                (a)(2); and
                    ``(B) the relative State population proportion (as 
                defined in paragraph (4)) determined for such fiscal 
                year.
            ``(4) Relative state population proportion defined.--For 
        purposes of paragraph (3)(B), the term `relative State 
        population proportion' means, with respect to each of the 50 
        States, the District of Columbia, and the Commonwealth of 
        Puerto Rico, the quotient of--
                    ``(A) the population of the State, District of 
                Columbia, or Commonwealth of Puerto Rico (as 
                applicable); and
                    ``(B) the sum of the populations of each of the 50 
                States, the District of Columbia, and the Commonwealth 
                of Puerto Rico.
            ``(5) Relative coronavirus infection rate proportion 
        amount.--For purposes of paragraph (1)(B), the relative 
        coronavirus infection rate proportion amount determined under 
        this paragraph for each of the 50 States, the District of 
        Columbia, and the Commonwealth of Puerto Rico, for fiscal year 
        2021 is the product of--
                    ``(A) the amount reserved under subsection 
                (a)(2)(C); and
                    ``(B) the quotient of--
                            ``(i) the coronavirus infection rate 
                        determined for the State, District of Columbia, 
                        or Commonwealth of Puerto Rico (as applicable); 
                        and
                            ``(ii) the sum of the coronavirus infection 
                        rates determined for each of the 50 States, the 
                        District of Columbia, and the Commonwealth of 
                        Puerto Rico.
            ``(6) Payments to local communities.--
                    ``(A) In general.--From the amount reserved under 
                subsection (a)(2)(D), the Secretary shall pay--
                            ``(i) 70 percent of the amount so reserved 
                        directly to the metropolitan cities and urban 
                        counties (as those terms are defined in section 
                        102 of the Housing and Community Development 
                        Act of 1974 (42 U.S.C. 5302)) in the State that 
                        received allocations under section 106(b) of 
                        the Housing and Community Development Act of 
                        1974 (42 U.S.C. 5306(b)) for fiscal year 2020, 
                        pursuant to the same formula used to make such 
                        allocations under that section for such fiscal 
                        year; and
                            ``(ii) subject to subparagraph (C), 30 
                        percent of the amount so reserved directly to 
                        each of the 50 States, to be distributed by 
                        such States upon receipt on a pass-through 
                        basis, and without requiring any application, 
                        to units of general local government in 
                        nonentitlement areas (as such terms are defined 
                        in such section 102) in such States, in amounts 
                        equal to the relative sum of the populations of 
                        such units of general local government in each 
                        such State as a proportion of the total 
                        population of all such units of general local 
                        government in all of the 50 States.
                    ``(B) Units of general local government in 
                nonentitlement areas with overlapping populations or 
                consolidated governments.--If 2 or more units of 
                general local government in nonentitlement areas have 
                overlapping populations or have formed a consolidated 
                government--
                            ``(i) the aggregate population of the 
                        overlapping units of general local government 
                        or the aggregate population of such 
                        consolidated government (as applicable) shall 
                        be the population used for purposes of 
                        determining the amount to be paid directly to a 
                        State under clause (ii) of subparagraph (A); 
                        and
                            ``(ii) the chief executive officer of the 
                        State shall distribute the portion of such 
                        payment that is based on such population among 
                        the units of general local government with such 
                        overlapping populations or that are part of 
                        such consolidated government, in amounts equal 
                        to the relative populations of such units of 
                        general local government as a proportion of 
                        such payment portion, unless--
                                    ``(I) the units of general local 
                                government involved notify such chief 
                                executive officer of their agreement 
                                regarding how such payment portion is 
                                to be distributed among them, based on 
                                the aggregate population of such units 
                                of general local government, in which 
                                case such chief executive officer shall 
                                make distributions in accordance with 
                                that agreement; or
                                    ``(II) in the case of a 
                                consolidated government, the 
                                consolidated government notifies such 
                                chief executive officer of a 
                                determination of the consolidated 
                                government regarding how such payment 
                                portion is to be distributed among the 
                                units of local government represented 
                                by the consolidated government, based 
                                on the aggregate population of such 
                                units of general local government, in 
                                which case such chief executive officer 
                                shall make distributions in accordance 
                                with that determination.
                    ``(C) Treatment of states not acting as pass-
                through agents.--In the case of a State that is 1 of 
                the 50 States and that has not elected to distribute 
                amounts allocated under section 106(d)(1) of the 
                Housing and Community Development Act of 1974 (42 
                U.S.C. 5306(d)(1)), the Secretary shall act in place of 
                the State for purposes of determining the amount of, 
                and distributing on a pass-through basis, and without 
                requiring any application, payments to units of general 
                local government in nonentitlement areas in that State 
                under subparagraph (A)(ii).
            ``(7) Payments to territories.--The amount paid under this 
        section to the United States Virgin Islands, Guam, the 
        Commonwealth of the Northern Mariana Islands, or American 
        Samoa, shall be the amount equal to the product of--
                    ``(A) the amount reserved under subsection 
                (a)(2)(A); and
                    ``(B) each such territory's share of the combined 
                total population of all such territories, as determined 
                by the Secretary.
            ``(8) Payments to tribal governments.--The amounts paid 
        under this section to Tribal governments from the amount 
        reserved under subsection (a)(2)(B) shall be determined in the 
        same manner as the amounts paid to Tribal governments under 
        section 601(c)(7), except that in determining such amounts, the 
        most recent number of enrolled Tribal members or other 
        appropriate measure may be used.
            ``(9) Data.--For purposes of determining--
                    ``(A) the population of each of the 50 States, the 
                District of Columbia, the Commonwealth of Puerto Rico, 
                the United States Virgin Islands, Guam, the 
                Commonwealth of the Northern Mariana Islands, American 
                Samoa, and units of general local government, the 
                Secretary shall use the most recent year for which data 
                are available from the Bureau of the Census; and
                    ``(B) the relative coronavirus infection rate 
                proportion amounts under paragraph (5), the Secretary 
                shall use the most recent daily updated data on the 
                number of COVID-19 cases published on the Internet by 
                the Centers for Disease Control and Prevention.
    ``(d) Other Provisions.--
            ``(1) In general.--The amounts paid under this section 
        shall be subject to--
                    ``(A) the use of funds and oversight requirements 
                of subsections (d) and (f) of section 601 in the same 
                manner as such requirements apply to the amounts paid 
                under that section; and
                    ``(B) the definitions of each paragraph of section 
                601(g) other than paragraph (2) of that section.
            ``(2) IG funding authority.--Notwithstanding section 
        601(f)(3), the Inspector General of the Department of the 
        Treasury may use the amount appropriated under that section to 
        carry out oversight and recoupment activities under this 
        section in addition to the oversight and recoupment activities 
        carried out under section 601(f).
            ``(3) Nonapplication.--Except as otherwise provided in this 
        section, the requirements applicable to the amount appropriated 
        for fiscal year 2020 under section 601(a)(1) (as added by 
        section 5001 of Public Law 116-136) shall not apply to the 
        amount appropriated under subsection (a) of this section for 
        such fiscal year.''.

SEC. 3. ADDITIONAL AUTHORITY TO USE PAYMENTS TO MAKE UP REVENUE 
              SHORTFALLS.

    (a) In General.--Subsection (d) of section 601 of the Social 
Security Act (42 U.S.C. 801) is amended to read as follows:
    ``(d) Use of Funds.--
            ``(1) In general.--A State, Tribal government, and unit of 
        local government may use the funds provided under a payment 
        made under this section for any expenditures during the period 
        that begins on January 1, 2020, and ends on June 30, 2022--
                    ``(A) to prevent, prepare for, or respond to the 
                public health emergency with respect to the Coronavirus 
                Disease 2019 (COVID-19) or the declaration by the 
                President under section 401 or 501, respectively, of 
                the Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act (42 U.S.C. 5170, 5191) of a major 
                disaster or emergency with respect to COVID-19; or
                    ``(B) to provide services, benefits, or assistance, 
                or support programs, projects, and operations, 
                accounted for in the budget for the State, Tribal 
                government, or unit of local government approved for 
                any fiscal year occurring during the period that begins 
                on January 1, 2020, and ends on June 30, 2022 (without 
                regard to any relation to the Coronavirus Disease 2019 
                (COVID-19)).
            ``(2) Non-federal funding.--For the purpose of meeting the 
        non-Federal share requirement of any Federal grant-in-aid 
        program or other form of Federal assistance, including 
        assistance provided under the Robert T. Stafford Disaster 
        Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) 
        and the Medicaid program established under title XIX, funds 
        provided under a payment made under this section to a State, 
        Tribal government, or unit of local government are deemed to be 
        non-Federal funds.
            ``(3) Limitation.--A State, Tribal government, or unit of 
        local government may not use funds provided under a payment 
        made under this section to provide any kind of tax cut, rebate, 
        deduction, credit, or any other tax benefit, or to reduce or 
        eliminate any fee imposed by the State, Tribal government, or 
        unit of local government, during the period described in 
        paragraph (1).''.
    (b) Effective Date.--The amendment made to subsection (d) of 
section 601 of the Social Security Act (42 U.S.C. 801) by subsection 
(a) shall take effect immediately upon the enactment of this Act and 
shall not be subject to any interpretation, guidance, rulemaking, or 
any other administrative action that limits, interferes with, delays, 
or impedes, or has the effect of limiting, interfering with, delaying, 
or impeding, the flexible spending authorities set forth in subsections 
(d)(1)(A) and (d)(1)(B) of section 601 of the Social Security Act (42 
U.S.C. 801), as so amended.

SEC. 4. EMERGENCY DESIGNATION.

    (a) In General.--The amounts provided under this Act and the 
amendments made by this Act are designated as an emergency requirement 
pursuant to section 4(g) of the Statutory Pay-As-You-Go Act of 2010 (2 
U.S.C. 933(g)).
    (b) Designation in Senate.--In the Senate, this Act is designated 
as an emergency requirement pursuant to section 4112(a) of H. Con. Res. 
71 (115th Congress), the concurrent resolution on the budget for fiscal 
year 2018.
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