; or (ii) with a population of 500,000 or more that has sound pension funds; or (C) a State that, as of June 30, 2022— (i) has sound pension funds; (ii) has a truly balanced budget; (iii) has rainy-day fund protections; and (iv) does not use a fixed cost of living adjustment with respect to any pension system administered by the State. (2) Treatment of governments establishing sound pension funds (A) In general With respect to a State, a local government described under paragraph (1)(A)(ii), or a county described under paragraph (1)(B)(ii) that does not have sound pension funds at the time of application for assistance under the Program, such State, local government, or county shall only be eligible to receive loan forgiveness under paragraph (1) if— (i) the State, local government, or county has sound pension funds before such forgiveness