The Background Check ‘Compromise‘ put forward by Sens. Joe Manchin (D-WV) and Pat Toomey (R-PA) creates $100 million in grants for “each of fiscal years 2014 through 2017” for the federal government to disperse to states if those states implement the expanded background check system contained in the bill.

As Sec. 103 says, from this money amounts will be made available 

by the State, or units of local government of the State, Indian Tribal government, or State Court system to improve the automation and transmittal of mental health records and criminal history dispositions, records relevant to determining whether a person has been convicted of a misdemeanor crime of domestic violence, court orders, and mental health adjudications or commitments to Federal and State records repositories. 

Upon passage of the bill, states have four years for full implementation. During those four years there are benchmarks that have to be met for progress–the two-year mark is such a benchmark–and inspections during these years will determine if states are moving on a pace that will allow the new system to be in place by the end of the four years. 

The government will be pumping portions of the $100 million into the states to cover the expense of moving over to the new system–but if states don’t move fast enough for Manchin and Toomey, the federal funds to such states will be cut by increasing percentages.