Sponsors (3)
The bill improves precision and fairness of federal payments for the very smallest jurisdictions, but does so by narrowing some eligibility thresholds and introducing short-term administrative complexity that could reduce funding for some mid‑small localities.
Very small local governments and rural communities will receive more tailored payments or formula adjustments that better reflect their smaller populations, improving fairness of federal funding distribution.
Small jurisdictions (especially the smallest ones) will have more precise eligibility and payment calculations because the first population value is exempted from rounding, reducing calculation errors and disputes.
Some mid‑small local governments may lose higher adjustment payments because lowering thresholds narrows which jurisdictions qualify for those increases.
Treasury and state/local officials may face short-term administrative confusion and implementation burdens from changed tables and formulas that lack detailed guidance.
Based on analysis of 2 sections of legislative text.
Lowers population cutoffs and adjusts rounding and the statutory adjustment table used to compute low-population payment adjustments in 31 U.S.C. § 6903(c).
Introduced April 14, 2026 by Jeff Hurd · Last progress April 14, 2026
Makes targeted statutory edits to the Federal law that sets population thresholds used when adjusting Payments in Lieu of Taxes (PILT) to low-population local governments. Specifically, it lowers numeric population cutoffs (changing 5,000/4,999 to 500/499), revises rounding rules, and replaces the existing adjustment table used to compute those payments. The change does not include an explicit effective date or new appropriations in the text provided.