To extend the authority of the Secretary of the Treasury to enter into agreements with certain cities and counties for the withholding of city and county income and employment taxes from the pay of Federal employees who are residents of, or regularly employed in, such cities and counties.

Amends Federal law to eliminate the requirement that there be 500 or more persons regularly employed by all Federal agencies in a city or county before the Secretary of the Treasury may enter into an agreement to withhold city and county income and employment taxes from the pay of Federal employees who live or work there.