A bill to provide special local agency impact assistance.

Authorizes the Secretary of Defense to provide special impact assistance to States and local governments to avoid an unfair financial burden attributable to the major construction or expansion of military facilities.

Requires that multiyear plans to administer such assistance be prepared by an Intergovernmental Defense Impact Planning and Mitigation Board comprising appropriate State, local and Federal representatives. Directs such Board to submit an annual community impact facilities and services program to the Secretary for approval.

Directs the Secretary to promulgate regulations governing the administration of this assistance and to keep the appropriate committees of Congress informed of major changes in the program. Requires the Secretary to report to Congress annually on the amounts expended by each recipient.

Makes grant assistance available through designated fiscal agents upon certification that the funds will be used within 12 months in accordance with the approved program.

Directs the Secretary to determine when the major construction or expansion has been completed. Prohibits new assistance under such circumstances unless the Secretary determines on a biennial basis that an unfair burden still exists.