State Assistance Accountability Act

State Assistance Accountability Act - Amends title VI (Temporary State Fiscal Relief) of the Social Security Act to revise the provision concerning the limitation on temporary State fiscal relief, to permit the use of such funds only for types of expenditure authorized under: (1) the budget of the State for the fiscal year for which the funds are to be expended that, as of May 28, 2003, was most recently approved by the State legislature; or (2) in the absence of such a budget, the budget of the State for the fiscal year for which the funds are to be expended that, as of May 28, 2003, was at the furthest stage of development by the State legislature. Requires the Secretary to: (1) audit a State's use of such funds; and (2) require remittance of all inappropriately expended funds, plus a penalty and interest.

Defines an "essential government service" as reduction in the amount of debt held or planned to be held by a State, and not any activity that was not funded by a State in its previous fiscal year.