A bill to amend the Payment in Lieu of Taxes Act (31 USC 1601-1607).

Amends the Payment in Lieu of Taxes Act to authorize the Secretary of the Interior to make payments, beginning fiscal year 1979, to units of local government for: (1) land acquired from State or local governments by exchange with the Federal Government; (2) land acquired by State or local governments at the request of the Federal Government; and (3) land on which the State, at the time of acquisition by the Federal Government, was making payments in lieu of taxes to counties, where such payments were substantially equivalent to the rate of taxation of private property.

Removes specified restrictions on the amount of payment with respect to entitlement lands within concurrent units of local government.

Redefines "unit of local government" for purposes of this Act.