(a) Maximum Amount.—The amount allocated to a unit of general local government for a payment period may not exceed the adjusted taxes imposed by the unit of general local government as determined under section 6705(b)(3).¹ Amounts in excess of adjusted taxes shall be paid to the Governor of the State in which the unit of local government is located.

(b) De Minimis Allocations to Units of General Local Government.—If the amount allocated to a unit of general local government (except an Indian tribe or an Alaskan native ² village) for a payment period would be less than $5,000 but for this subsection or is waived by the governing authority of the unit of general local government, the Secretary shall pay the amount to the Governor of the State in which the unit is located.

(c) Use of Payments to States.—The Governor of a State shall use all amounts paid to the Governor under subsections (a) and (b) for programs described in section 6701(a)(2) in areas of the State where are located the units of general local government with respect to which amounts are paid under subsection (b).

(d) De Minimis Allocations to Indian Tribes and Alaskan Native Villages.—

(1) Aggregation of de minimis allocations.—If the amount allocated to an Indian tribe or an Alaskan native ² village for a payment period would be less than $5,000 but for this subsection or is waived by the chief elected official of the tribe or village, the amount—

(A) shall not be paid to the tribe or village (except under paragraph (2)); and

(B) shall be aggregated with other such amounts and available for use by the Attorney General under paragraph (2).

(2) Use of aggregated amounts.—Amounts aggregated under paragraph (1) for a payment period shall be available for use by the Attorney General to make grants in the payment period on a competitive basis to Indian Tribes ³ and Alaskan native ² village ⁴ for—

(A) programs described in section 6701(a)(2); or

(B) renovating or building prisons or other correctional facilities.