Sponsors (3)
The bill improves classification accuracy for the smallest local governments but risks reducing federal low-population adjustments for many small jurisdictions and creating short-term implementation confusion for state and local governments.
Local governments with populations under 500 will be classified more precisely, reducing misapplication of 'low-population' adjustments for very small units.
Local governments with populations between 500 and 5,000 may lose eligibility for low-population adjustments they previously received, potentially reducing federal funds or changing how they are treated.
Local and state governments may face short-term confusion and implementation costs because replacing the existing table with an unspecified new table creates ambiguity until guidance is issued.
Based on analysis of 2 sections of legislative text.
Revises population cutoffs and rounding rules in 31 U.S.C. § 6903(c) so low-population adjustments use 499/500 instead of 4,999/5,000 and swaps in a new population table.
Changes the population cutoffs used to determine low-population adjustments under the federal Payments In Lieu of Taxes (PILT) statute by replacing occurrences of 4,999 with 499 and 5,000 with 500 and by altering how rounding is applied. The amendment also replaces the existing population table used for calculations with a new table. The result is a narrower definition of which local governments qualify as "low-population" units for the statute's adjustments and a technical change to rounding rules that affects how population-based PILT adjustments are calculated.
Official title: To amend section 6903 of title 31, United States Code, to provide for additional population tiers, and for other purposes.
Introduced April 14, 2026 by Jeff Hurd · Last progress April 14, 2026