Intergovernmental Countercyclical Assistance Act

Intergovernmental Countercyclical Assistance Act - Declares it to be the policy of the United States and the purpose of this Act to make State and local government budget-related actions more consistent with Federal Government efforts to stimulate national economic recovery; to enhance the stimulative effect of a Federal Government income tax reduction; and to enhance the job creation impact of Federal Government public service employment programs.

Authorizes the Secretary of the Treasury to make emergency support grants to State and local governments to carry out the purposes of this legislation.

Authorizes for each of 12 succeeding calendar quarters (beginning with the first calendar quarter after the date of enactment of this Act) $500,000,000 when the national seasonally adjusted unemployment rate reaches 6 percent plus an additional $250,000,000 for each whole percentage point over 6 percent of the national seasonally adjusted unemployment rate for the preceding calendar quarter.

Provides that no funds would be authorized for any calendar quarter during which the national unemployment rate was under 6 percent.

Provides that the Secretary of the Treasury shall reserve one-third of the authorized funds for distribution to State governments and two-thirds of the authorized funds for distribution to local governments.

Directs the allocation of assistance to State governments. Specifies that State allocations would be made two-thirds on the basis of its unemployment and one-third on the basis of its adjusted taxes. States that in each case, the particular State's unemployment (in numbers) and its taxes raised would be compared to national totals, with the unemployment percentage weighted double.

Provides for the allocation to local governments which would be made according to the same formula as for State governments-two parts unemployment and one part adjusted taxes raised.

States that the Secretary shall allocate for the purpose of making emergency support grants to each identifiable local government.

Specifies that grants under this program should be used for the maintenance of basic services ordinarily provided by the State and local governments and that State and local governments shall not use funds received under this Act for the acquisition of supplies and materials or for construction unless essential to maintain basic services.

Establishes an application procedure for State governments and identifiable local governments eligible to receive assistance under this Act.

Requires that each application shall: (1) include the applying government's program for maintenance, to the extent practicable, of levels of employment and basic services that it customarily provides; (2) in the case of a State government, provide assurance that it will not reduce the total amount of financial assistance, in dollars, which it provides to local governments within its boundaries; (3) provide that necessary fiscal control and fund accounting procedures will be established to assure proper disbursal of, and accounting for, Federal funds paid to State and local governments under this Act; (4) provide that reasonable reports will be furnished as the Secretary of the Treasury may require and that the Secretary of the Treasury has access to the records he needs to verify those reports; (5) provide that the nondiscrimination requirements of this legislation will be complied with; (6) provide that labor standards and wage requirements of this Act be complied with; (7) provide that the Act's requirements that governments receiving assistance under this Act report tax changes and changes in levels of services provided to the Secretary of the Treasury be complied with; and (8) provide that all funds received under this Act be expended by the recipient State or local government within 12 months of the time it is received.

Provides that applications for payment of funds to other local governments shall be filed by the States.

Directs the Secretary of the Treasury to approve any application which meets the requirements of this Act within 30 days and to not finally disapprove, in whole or in part, any application for an emergency support grant under this Act without first affording the State or local government reasonable notice and an opportunity for a hearing.

Requires that no person shall on the grounds of race, color, national origin, or sex be excluded from participation in, be denied the benefits of, or be subject to discrimination under, any program or activity funded in whole or in part with employment made available under this Act. Provides that in any case where the Secretary of the Treasury makes a finding of discrimination by a State or local government and is unable to achieve compliance within 30 days, he is specifically authorized to defer payment to the discriminating jurisdiction unless compliance is achieved.

States that laborers and mechanics employed by contractors on all substantial repair renovation construction programs funded under this Act be paid wages at rates not less than those prevailing on similar projects in the locality as determined by the Secretary of Labor under the Davis-Bacon Act.

Directs that each State or local government which receives a grant under this Act shall report to the Secretary, within 30 days, any increase or decrease in any tax which it imposes and substantial reductions in employment levels or in services which that jurisdiction provides.

Gives the Secretary of the Treasury the authority to make payments from the funds authorized under this Act.

Allows payments to be made in installments, in advance or by way of reimbursement, with necessary adjustments on account of overpayments and underpayments.

Provides that no funds be paid to any State or local government under this Act for any calendar quarter if the unemployment rate within that jurisdiction during the previous calendar quarter was less than 6 percent.

Requires the Secretary of the Treasury to withhold funds from any jurisdiction which fails to comply substantially with any of the provisions set forth in the application it submitted for funds under this Act. States that funds will continue to be withheld until the Secretary of Treasury is satisfied that compliance has been achieved.

Requires the Secretary of the Treasury to report as soon as practical after the end of each calendar quarter on the implementation of the program.

Authorizes the Secretary of the Treasury, after consultation with the Secretary of Labor, to prescribe such rules as may be necessary to carry out this Act.

Provides the Secretary of the Treasury with the authority to use services and facilities of any agency of the Federal Government and of any other public agency or institution in accordance with appropriate agreements and to pay for such services either in advance or by way of reimbursement as may be agreed upon.