To provide reimbursement to States and political subdivisions for police and National Guard overtime compensation incurred with respect to national policy.

Provides that, upon request of any State or political subdivision thereof, the Attorney General may reimburse such State or political subdivision for overtime compensation determined by him to have been paid by that State or political subdivision to any law enforcement officer or employee of a court of that State as the result of overtime work performed by such officer or member with respect to any demonstration, riot, or other disturbance related to any national issue or policy.

Authorizes the Secretary of Defense to reimburse such State or political subdivision for overtime compensation determined by the Secretary to have been paid by that State or political subdivision to any member of the National Guard because of overtime work performed by such officer or member with respect to any demonstration, riot, or other disturbance related to any national issue or policy.