Title 42The Public Health and WelfareRelease 119-73

§6723 Allocation of amounts

Title 42 › Chapter CHAPTER 80— - PUBLIC WORKS EMPLOYMENT › Subchapter SUBCHAPTER II— - ANTIRECESSION PROVISIONS › § 6723

Last updated Apr 6, 2026|Official source

Summary

The Secretary must set aside money each calendar quarter so that one-third goes to States and two-thirds goes to local governments. Each State’s payment comes from the State share and is based on a formula: its share equals the reserved State money times (its excess unemployment percent times its revenue-sharing number) divided by the total of those products for all States. Local payments use the same kind of formula for each local government. If a local government’s calculated amount would be less than $100, it gets nothing. Defined terms (one line each): State — each State of the United States. State excess unemployment percentage — the State unemployment rate for the quarter minus 4.5 percentage points, but not less than zero. State unemployment rate — the rate for the quarter as set by the Secretary of Labor and reported to the Secretary. State revenue sharing amount — the amount set by the listed Title 31 provisions for the most recent entitlement period. Local excess unemployment percentage — local unemployment rate minus 4.5 percentage points, but not less than zero. Local unemployment rate — the rate for the local area for the quarter as set or assigned by the Secretary of Labor; if none is available, the Secretary uses the smallest nearby unit’s rate unless the Governor provides a consistent local rate. Local revenue sharing amount — the amount set by the listed Title 31 provisions for the most recent entitlement period. Local government — a county, city, township, or similar unit below the State that acts as a general government and performs substantial functions; includes DC and tribal governments that perform such functions.

Full Legal Text

Title 42, §6723

The Public Health and Welfare — Source: USLM XML via OLRC

(a)(1)The Secretary shall reserve one-third of the amounts appropriated pursuant to authorization under section 6722 of this title for each calendar quarter for the purpose of making payments to eligible State governments under subsection (b).
(2)The Secretary shall reserve two-thirds of such amounts for the purpose of making payments to eligible units of local government under subsection (c).
(b)(1)The Secretary shall allocate from amounts reserved under subsection (a)(1) an amount for the purpose of making payments to each State equal to the total amount reserved under subsection (a)(1) for the calendar quarter multiplied by the applicable State percentage.
(2)For purposes of this subsection, the applicable State percentage is equal to the quotient resulting from the division of the product of—
(A)the State excess unemployment percentage, multiplied by
(B)the State revenue sharing amount by the sum of such products for all the States.
(3)For the purposes of this section—
(A)the term “State” means each State of the United States;
(B)the State excess unemployment percentage is equal to the difference resulting from the subtraction of 4.5 percentage points from the State unemployment rate for that State but shall not be less than zero;
(C)the State unemployment rate is equal to the rate of unemployment in the State during the appropriate calendar quarter, as determined by the Secretary of Labor and reported to the Secretary; and
(D)the State revenue sharing amount is the amount determined under section 6705–6707(a) of title 31 11 See References in Text note below. for the most recently completed entitlement period, as defined under section 6701(a)(1) of title 31.
(c)(1)The Secretary shall allocate from amounts reserved under subsection (a)(2) an amount for the purpose of making payments to each local government, subject to the provisions of paragraph (4), equal to the total amount reserved under such subsection for calendar quarter multiplied by the local government percentage.
(2)For purposes of this subsection, the local government percentage is equal to the quotient resulting from the division of the product of—
(A)the local excess unemployment percentage, multiplied by
(B)the local revenue sharing amount, by the sum of such products for all local governments.
(3)For purposes of this subsection—
(A)the local excess unemployment percentage is equal to the difference resulting from the subtraction of 4.5 percentage points from the local unemployment rate, but shall not be less than zero;
(B)the local unemployment rate is equal to the rate of unemployment in the jurisdiction of the local government during the appropriated calendar quarter, as determined or assigned by the Secretary of Labor and reported to the Secretary (in the case of a local government for which the Secretary of Labor cannot determine a local unemployment rate, he shall assign such local government the local unemployment rate of the smallest unit or subunit of local government for which he has determined a local unemployment rate and within the jurisdiction of which such local government is located, unless—
(i)the Governor of the State in which such local government is located has provided the Secretary of Labor with a local unemployment rate for such local government, and
(ii)the Secretary of Labor finds that such local unemployment rate provided by the Governor has been determined in a manner consistent with the procedures and methodologies used by the Secretary of Labor in determining local unemployment rates,
(C)the local revenue sharing amount is the amount determined under section 6701(a)(5), (7), (b)–(d), and 6708–6712 of title 31 1 for the most recently completed entitlement period, as defined under section 6701(a)(1) of title 31; 1
(D)the term “local government” means the government of a county, municipality, township, or other unit of government below the State which—
(i)is a unit of general government (determined on the basis of the same principles as are used by the Bureau of the Census for general statistical purposes), and
(ii)performs substantial governmental functions. Such term includes the District of Columbia and also includes the recognized governing body of an Indian tribe or Alaskan Native village which performs substantial governmental functions. Such term does not include the government of a township area unless such government performs substantial governmental functions.
(4)If the amount which would be allocated to any unit of local government under this subsection is less than $100, then no amount shall be allocated for such unit of local government under this subsection.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

Chapter 67 of title 31, including section 6701 and 6705 to 6712, referred to in subsecs. (b)(3)(D) and (c)(3)(C), was repealed by Pub. L. 99–272, title XIV, § 14001(a)(1), Apr. 7, 1986, 100 Stat. 327. See, also, Codification note below. Codification In subsecs. (b)(3)(D) and (c)(3)(C), “section 6705–6707(a) of title 31” substituted for “section 107 of the State and Local Fiscal Assistance Act of 1972 [31 U.S.C. 1226]”, “section 6701(a)(5), (7), (b)–(d), and 6708–6712 of title 31” substituted for “section 108 of the State and Local Fiscal Assistance Act of 1972 [31 U.S.C. 1227], and “section 6701(a)(1) of title 31” substituted for “section 141(b) of such Act [31 U.S.C. 1261(b)]”, respectively, on authority of Pub. L. 97–258, § 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31, Money and Finance. See, also,

References in Text

note above.

Amendments

1977—Subsec. (b)(3)(D). Pub. L. 95–30, § 603(a), substituted “for the most recently completed entitlement period, as defined under section 1261(b) of title 31” for “for the one-year period beginning on
July 1, 1975”. Subsec. (c)(1). Pub. L. 95–30, § 603(b), substituted “paragraph (4)” for “paragraphs (3) and (5)”. Subsec. (c)(3). Pub. L. 95–30, § 603(c)–(h), struck out par. (3) which set out special rules for local governments other than identifiable local governments, redesignated par. (4) as (3), substituted “determined or assigned” for “determined” in subpar. (B), substituted provisions covering local governments for which the Secretary of Labor cannot determine a local unemployment rate for provisions covering local governments treated as one local government in subpar. (B), substituted “for the most recently completed entitlement period, as defined under section 1261(b) of title 31” for “for the one–year period beginning
July 1, 1975” in subpar. (C), struck out parenthetical provisions covering local governments treated as one local government in subpar. (C), struck out subpar. (D) which had defined “identifiable local government”, redesignated former subpar. (E) as (D), substituted “Bureau of the Census” for “Social and Economic Statistics Administration” in cl. (i) of subpar. (D) as so redesignated, and struck out provisions which had directed the Secretary of Labor to make determinations with respect to rates of unemployment for the purposes of title VI of the Comprehensive Employment and Training Act of 1973. Subsec. (c)(4), (5). Pub. L. 95–30, § 603(c), redesignated pars. (4) and (5) as (3) and (4), respectively. 1976—Subsec. (c)(3)(C)(ii). Pub. L. 94–447, § 201(2), substituted “90 days” for “thirty days”. Subsec. (c)(4)(E)(ii). Pub. L. 94–447, § 201(3), substituted “or Alaskan Native village” for “of Alaskan Native village”.

Reference

Citations & Metadata

Citation

42 U.S.C. § 6723

Title 42The Public Health and Welfare

Last Updated

Apr 6, 2026

Release point: 119-73