§6907 State legislation requiring reallocation or redistribution of payments to smaller units of general purpose government

Summary

A State may pass a law that makes money that would go to a larger local government instead be split and given to smaller local governments that are inside the larger one, that provide general government services, and that include entitlement lands. The split should roughly match how much service each small government provides and how many entitlement acres it has. After that law, the federal Secretary will send one payment to the State equal to the total that would have gone to the local governments. The State must distribute that money under its law within 30 days and may not use any of the payment for running this process. Funds set aside for payments in a fiscal year can be used to fix underpayments from the prior year so all eligible recipients are treated fairly.