A bill to provide relief to units of local government from liability for repayment of excessive payments made due to an error by the United States under the State and Local Fiscal Assistance Act of 1972.

Provides that any unit of local government which received payments under the State and Local Fiscal Assistance Act of 1972 for the first three entitlement periods which were, in the aggregate, in excess of 500 per cent of the total amount of such payments, is relieved from liability for repayment to the United States of the amount which exceeds the amount of entitlement.

Authorizes funds to be appropriated to the State and Local Government Fiscal Assistance Trust Fund, out of amounts in the general fund of the Treasury attributable to the collections of the Federal individual income taxes not otherwise appropriated. Specifies the amounts of such sums for fiscal years 1974 through 1976.