Title: Coronavirus State and Local Financial Assistance Act
Policy area: Government Operations and Politics

Summary:
Coronavirus State and Local Financial Assistance Act
This bill (1) directs the Department of the Treasury to establish a State and Local Government Coronavirus Relief Program under which Treasury shall make monthly grants to states to make up for revenue lost from March 1-December 31, 2020, due to COVID-19 (i.e., coronavirus disease 2019) and social distancing steps taken by the state and its political subdivisions, and (2) appropriates $500 billion to carry out the program.
To be eligible to receive a grant, a state must (1) compile estimates for the revenue lost by the state and each political subdivision, and (2) submit an estimate to Treasury by the 20th of each month.
Treasury shall make grant payments to a state within 15 days of receiving a loss estimate.
The bill sets forth requirements with respect to pro rata distribution of funds, treatment of overpayments, and distribution to political subdivisions of a state.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6705 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6705

To require the Secretary of the Treasury to establish a State and Local 
Government Coronavirus Relief Program to make grants to States to make 
 up for lost revenue due to COVID-19 and social distancing steps taken 
  by the State and political subdivisions of the State, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 5, 2020

    Mrs. Axne (for herself and Mr. King of New York) introduced the 
 following bill; which was referred to the Committee on Oversight and 
                                 Reform

_______________________________________________________________________

                                 A BILL


 
To require the Secretary of the Treasury to establish a State and Local 
Government Coronavirus Relief Program to make grants to States to make 
 up for lost revenue due to COVID-19 and social distancing steps taken 
  by the State and political subdivisions of the State, 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 ``Coronavirus State and Local 
Financial Assistance Act''.

SEC. 2. STATE AND LOCAL GOVERNMENT CORONAVIRUS RELIEF PROGRAM.

    (a) In General.--The Secretary of the Treasury shall establish a 
State and Local Government Coronavirus Relief Program under which the 
Secretary shall make monthly grants to States to make up for lost 
revenue due to COVID-19 and social distancing steps taken by the State 
and political subdivisions of the State.
    (b) Estimate of Lost Revenue.--
            (1) Administrator.--In order to be eligible to receive a 
        grant under this section, a State shall appoint an 
        administrator who shall--
                    (A) compile estimates for the revenue lost by the 
                State and each political subdivision of the State 
                because of COVID-19 and social distancing steps taken 
                by the State and political subdivisions of the State; 
                and
                    (B) submit an estimate to the Secretary not later 
                than the 20th of each month, which shall include--
                            (i) a break down of how much of the losses 
                        were incurred by the State itself and how much 
                        was incurred by each political subdivision of 
                        the State;
                            (ii) information for any prior months; and
                            (iii) any corrections or updates from prior 
                        months.
            (2) Requirements.--In carrying out paragraph (1), the 
        administrator--
                    (A) shall compile such estimate based off of 
                reductions in realized revenue as compared to the 
                latest official revenue estimates as of February 15, 
                2020;
                    (B) may only include losses occurring from March 1, 
                2020, through December 31, 2020;
                    (C) may, with respect to sales, fuel, and other 
                excise tax estimates, submit estimates to the Secretary 
                either monthly or quarterly, depending on when such 
                taxes are collected; and
                    (D) shall, with respect to income and property 
                taxes, submit estimates to the Secretary quarterly, and 
                shall adjust for delays in payment dates.
    (c) Payment of Grants.--
            (1) Timing.--The Secretary shall make grant payments to a 
        State under this section not later than 15 days after the date 
        on which the Secretary receives a loss estimate under 
        subsection (b)(1)(B).
            (2) Pro rata distribution.--If, with respect to a month, 
        the Secretary does not have sufficient funds available under 
        this section to make full grant payments to all States based on 
        the loss estimates submitted to the Secretary, the Secretary 
        shall make pro rata payments to the States based on each 
        State's share of the aggregate national amount of losses 
        submitted to the Secretary for the applicable month.
            (3) Treatment of overpayments.--With respect to a State, an 
        overpayment made by the Secretary in a prior month shall 
        decrease the following month's payment or, if an overpayment 
        occurs in the final month of the Program, the Secretary may 
        treat such overpayment as a debt of the State to the Federal 
        Government.
    (d) Distribution to Political Subdivisions.--A State that receives 
a grant under this section shall distribute a percentage of such grant 
to each political subdivision of the State in an amount equal to the 
percentage that such political subdivision's loss made up of the 
revenue loss to the State as whole, as reported to the Secretary.
    (e) Program Termination.--The Secretary's authority to make grants 
under this section shall terminate on the earlier of--
            (1) the date on which funds are no longer available to 
        carry out this section; or
            (2) December 31, 2020.
    (f) Funding.--There is appropriated, out of any amounts in the 
Treasury not otherwise appropriated, $500,000,000,000 to the Secretary 
to carry out this section.
    (g) Definitions.--In this section:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
            (2) State.--The term ``State'' means each of the several 
        States, the District of Columbia, and each territory and 
        possession of the United States.
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