42 U.S.C. § 6723: Allocation of amounts

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). The Secretary shall reserve two-thirds of such amounts for the purpose of making payments to eligible units of local government under subsection (c). 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. the State excess unemployment percentage, multiplied by the State revenue sharing amount by the sum of such products for all the States. the term “State” means each State of the United States; 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; 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 the State revenue sharing amount is the amount determined under sections 6705–6707(a) of title 31 1 for the most recently completed entitlement period, as defined under 1 See References in Text note below. section 6701(a)(1) of title 31 . 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. the local excess unemployment percentage, multiplied by the local revenue sharing amount, by the sum of such products for all local governments. 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; 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 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, the local revenue sharing amount is the amount determined under sections 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 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 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. 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.