A bill to permit States and political subdivisions of States to enforce State or local anti-apartheid laws with respect to contracts funded in whole or in part by funds provided by the Federal Government.

Provides that neither the eligibility of a State or a political subdivision of a State for Federal funds nor the amount of such funds for which they are eligible shall be affected by the application of a State or local anti-apartheid law to a federally funded contract entered into by such State or political subdivision. Exempts the Federal Government from responsibility for any increase in the cost of a contract if such increase is the result of the application of an anti-apartheid law of a State or political subsidivision.