1. U.S. Code
  2. title 42
  3. chapter 80
  4. subchapter II
  5. § 6721

Collapse to view only § 6721. Congressional findings of fact and declaration of policy

§ 6721. Congressional findings of fact and declaration of policy
The Congress finds—
(1) that State and local governments represent a significant segment of the national economy whose economic health is essential to national economic prosperity;
(2) that present national economic problems have imposed considerable hardships on State and local government budgets;
(3) that those governments, because of their own fiscal difficulties, are being forced to take budget-related actions which tend to undermine Federal Government efforts to stimulate the economy;
(4) that efforts to stimulate the economy through reductions in Federal Government tax obligations are weakened when State and local governments are forced to increase taxes;
(5) that the net effect of Federal Government efforts to reduce unemployment through public service jobs is substantially limited if State and local governments use federally financed public service employees to replace regular employees that they have been forced to lay off;
(6) that efforts to stimulate the construction industry and reduce unemployment are substantially undermined when State and local governments are forced to cancel or delay the construction of essential capital projects; and
(7) that efforts by the Federal Government to stimulate the economic recovery will be substantially enhanced by a program of emergency Federal Government assistance to State and local governments to help prevent those governments from taking budget-related actions which undermine the Federal Government efforts to stimulate economic recovery.
(Pub. L. 94–369, title II, § 201, July 22, 1976, 90 Stat. 1002.)

CITE AS: 42 USC 6721

§ 6722. Financial assistance
(a) Payments to State and local governments
(b) Authorization of appropriations
Subject to the provisions of subsections (c) and (d), there are authorized to be appropriated for each of the five succeeding calendar quarters (beginning with the calendar quarter which begins on July 1, 1977) for the purpose of payments under this subchapter—
(1) $125,000,000, plus
(2) $30,000,000 multiplied by the number of whole one-tenth percentage points by which the rate of seasonally adjusted national unemployment for the most recent calendar quarter which ended three months before the beginning of such quarter exceeded 6 per centum.
(c) Aggregate authorization
(d) Termination
No amount is authorized to be appropriated under the provisions of subsection (b) for any calendar quarter if—
(1) the average rate of national unemployment during the most recent calendar quarter which ended three months before the beginning of such calendar quarter did not exceed 6 percent, or
(2) the rate of national unemployment for the last month of the most recent calendar quarter which ended three months before the beginning of such calendar quarter did not exceed 6 percent.
(Pub. L. 94–369, title II, § 202, July 22, 1976, 90 Stat. 1002; Pub. L. 94–447, title II, § 201(1), Oct. 1, 1976, 90 Stat. 1498; Pub. L. 95–30, title VI, § 602, May 23, 1977, 91 Stat. 164.)

CITE AS: 42 USC 6722

§ 6723. Allocation of amounts
(a) Reservations for eligible States and units of local government
(1) The Secretary shall reserve one-third of the amounts appropriated pursuant to authorization under section 6722 of this title for each calendar quarter for the purpose of making payments to eligible State governments under subsection (b).
(2) The Secretary shall reserve two-thirds of such amounts for the purpose of making payments to eligible units of local government under subsection (c).
(b) State allocation; percentage; definitions
(1) The Secretary shall allocate from amounts reserved under subsection (a)(1) an amount for the purpose of making payments to each State equal to the total amount reserved under subsection (a)(1) for the calendar quarter multiplied by the applicable State percentage.
(2) For purposes of this subsection, the applicable State percentage is equal to the quotient resulting from the division of the product of—
(A) the State excess unemployment percentage, multiplied by
(B) the State revenue sharing amount by the sum of such products for all the States.
(3) For the purposes of this section—
(A) the term “State” means each State of the United States;
(B) the State excess unemployment percentage is equal to the difference resulting from the subtraction of 4.5 percentage points from the State unemployment rate for that State but shall not be less than zero;
(C) the State unemployment rate is equal to the rate of unemployment in the State during the appropriate calendar quarter, as determined by the Secretary of Labor and reported to the Secretary; and
(D) the State revenue sharing amount is the amount determined under sections 6705–6707(a) of title 31 1
1 See References in Text note below.
for the most recently completed entitlement period, as defined under section 6701(a)(1) of title 31.
(c) Local government allocation; percentage; definitions; special limitation
(1) The Secretary shall allocate from amounts reserved under subsection (a)(2) an amount for the purpose of making payments to each local government, subject to the provisions of paragraph (4), equal to the total amount reserved under such subsection for calendar quarter multiplied by the local government percentage.
(2) For purposes of this subsection, the local government percentage is equal to the quotient resulting from the division of the product of—
(A) the local excess unemployment percentage, multiplied by
(B) the local revenue sharing amount, by the sum of such products for all local governments.
(3) For purposes of this subsection—
(A) the local excess unemployment percentage is equal to the difference resulting from the subtraction of 4.5 percentage points from the local unemployment rate, but shall not be less than zero;
(B) the local unemployment rate is equal to the rate of unemployment in the jurisdiction of the local government during the appropriated calendar quarter, as determined or assigned by the Secretary of Labor and reported to the Secretary (in the case of a local government for which the Secretary of Labor cannot determine a local unemployment rate, he shall assign such local government the local unemployment rate of the smallest unit or subunit of local government for which he has determined a local unemployment rate and within the jurisdiction of which such local government is located, unless—
(i) the Governor of the State in which such local government is located has provided the Secretary of Labor with a local unemployment rate for such local government, and
(ii) the Secretary of Labor finds that such local unemployment rate provided by the Governor has been determined in a manner consistent with the procedures and methodologies used by the Secretary of Labor in determining local unemployment rates,
in which case the Secretary of Labor shall assign such local government the local unemployment rate provided by such Governor);
(C) the local revenue sharing amount is the amount determined under sections 6701(a)(5), (7), (b)–(d), and 6708–6712 of title 31 1 for the most recently completed entitlement period, as defined under section 6701(a)(1) of title 31; 1
(D) the term “local government” means the government of a county, municipality, township, or other unit of government below the State which—
(i) is a unit of general government (determined on the basis of the same principles as are used by the Bureau of the Census for general statistical purposes), and
(ii) performs substantial governmental functions. Such term includes the District of Columbia and also includes the recognized governing body of an Indian tribe or Alaskan Native village which performs substantial governmental functions. Such term does not include the government of a township area unless such government performs substantial governmental functions.
(4) If the amount which would be allocated to any unit of local government under this subsection is less than $100, then no amount shall be allocated for such unit of local government under this subsection.
(Pub. L. 94–369, title II, § 203, July 22, 1976, 90 Stat. 1003; Pub. L. 94–447, title II, § 201(2), (3), Oct. 1, 1976, 90 Stat. 1498; Pub. L. 95–30, title VI, § 603(a)–(h), May 23, 1977, 91 Stat. 165, 166.)

CITE AS: 42 USC 6723

§ 6724. Uses of payments

Each State and local government shall use payments made under this subchapter for the maintenance of basic services customarily provided to persons in that State or in the area under the jurisdiction of that local government, as the case may be. State and local governments may not use emergency support payments made under this subchapter for the acquisition of supplies and materials or for construction, except for normal supplies or repairs necessary to maintain basic services.

(Pub. L. 94–369, title II, § 204, July 22, 1976, 90 Stat. 1006; Pub. L. 94–447, title II, § 201(4), Oct. 1, 1976, 90 Stat. 1498; Pub. L. 95–30, title VI, § 604, May 23, 1977, 91 Stat. 166.)

CITE AS: 42 USC 6724

§ 6725. Statement of assurances as prerequisite for payments; rules governing time and manner of filing; contents of statementEach State and unit of local government may receive payments under this subchapter only upon filing with the Secretary, at such time and in such manner as the Secretary prescribes by rule, a statement of assurances. Such rules shall be prescribed by the Secretary not later than ninety days after July 22, 1976. The Secretary may not require any State or local government to file more than one such statement during each fiscal year. Each such statement shall contain—
(1) an assurance that payments made under this subchapter to the State or local government will be used for the maintenance, to the extent practical, of levels of public employment and of basic services customarily provided to persons in that State or in the area under the jurisdiction of that unit of local government which is consistent with the provisions of section 6724 of this title;
(2) an assurance that the State or unit of local government will—
(A) use fiscal, accounting, and audit procedures which conform to guidelines established therefor by the Secretary (after consultation with the Comptroller General of the United States), and
(B) provide to the Secretary (and to the Comptroller General of the United States), on reasonable notice, access to, and the right to examine, such books, documents, papers, or records as the Secretary may reasonably require for purposes of reviewing compliance with this subchapter;
(3) an assurance that reasonable reports will be furnished to the Secretary in such form and containing such information as the Secretary may reasonably require to carry out the purposes of this subchapter and that such report shall be published in a newspaper of general circulation in the jurisdiction of such government unless the cost of such publication is excessive in relation to the amount of the payments received by such government under this subchapter or other means of publicizing such report is more appropriate, in which case such report shall be publicized pursuant to rules prescribed by the Secretary;
(4) an assurance that the requirements of section 6727 of this title will be complied with;
(5) an assurance that the requirements of section 6728 of this title will be complied with;
(6) an assurance that the requirements of section 6729 of this title will be complied with;
(7) an assurance that the State or unit of local government will spend any payment it receives under this subchapter before the end of the six-calendar-month period which begins on the day after the date on which such State or local government receives such payment; and
(8) an assurance that the State or unit of local government will spend amounts received under this subchapter only in accordance with the laws and procedures applicable to the expenditure of its own revenues.
(Pub. L. 94–369, title II, § 205, July 22, 1976, 90 Stat. 1006.)

CITE AS: 42 USC 6725

§ 6726. Repealed. Pub. L. 95–30, title VI, § 603(i), May 23, 1977, 91 Stat 166

CITE AS: 42 USC 6726

§ 6727. Nondiscrimination
(a)
(1) No person in the United States shall, on the ground of race, color, national origin, or sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity of a State government or unit of local government, which government or unit receives funds made available under this subchapter. Any prohibition against discrimination on the basis of age under the Age Discrimination Act of 1975 [42 U.S.C. 6101 et seq.] or with respect to an otherwise qualified handicapped individual as provided in section 794 of title 29 shall also apply to any such program or activity. Any prohibition against discrimination on the basis of religion, or any exemption, from such prohibition, as provided in the Civil Rights Act of 1964 [42 U.S.C. 2000a et seq.] or title VIII of the Act of April 11, 1968, commonly referred to as Civil Rights Act of 1968 [42 U.S.C. 3601 et seq.], shall also apply to any such program or activity.
(2)
(A) The provisions of paragraph (1) of this subsection shall not apply where any State government or unit of local government demonstrates, by clear and convincing evidence, that the program or activity with respect to which the allegation of discrimination has been made is not funded in whole or in part with funds made available under this subchapter.
(B) The provisions of paragraph (1), relating to discrimination on the basis of handicapped status, shall not apply with respect to construction projects commenced prior to January 1, 1977.
(b) The provisions of subsection (a) of this section shall be enforced by the Secretary in the same manner and in accordance with the same procedures as are required by sections 6701(a)(2), (3), 6716–6720, 6721, and 6723(f) of title 31 1
1 See References in Text note below.
to enforce compliance with section 6716(a)–(c) of title 31.1 The Attorney General shall have the same authority, functions, and duties with respect to funds made available under this subchapter as the Attorney General has under sections 6716(d), 6720, and 6721(d) of title 31 1 with respect to funds made available under chapter 67 of title 31.1 Any person aggrieved by a violation of subsection (a) of this section shall have the same rights and remedies as a person aggrieved by a violation of section 6716(a)–(c) of title 31,1 including the rights provided under section 6721(d) of title 31.1
(Pub. L. 94–369, title II, § 207, July 22, 1976, 90 Stat. 1007; Pub. L. 95–30, title VI, § 605, May 23, 1977, 91 Stat. 166.)

CITE AS: 42 USC 6727

§ 6728. Wage standards for laborers and mechanics; enforcement

All laborers and mechanics employed by contractors on all construction projects funded in whole or in part by payments under this subchapter shall be paid wages at rates not less than those prevailing on similar projects in the locality as determined by the Secretary of Labor in accordance with sections 3141–3144, 3146, and 3147 of title 40. The Secretary of Labor shall have, with respect to the labor standards specified in this section, the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 and section 3145 of title 40.

(Pub. L. 94–369, title II, § 208, July 22, 1976, 90 Stat. 1008.)

CITE AS: 42 USC 6728

§ 6729. Reports to Secretary by States and local governments; contents

Each State and unit of local government which receives a payment under the provisions of this subchapter shall report to the Secretary any increase or decrease in any tax which it imposes and any substantial reduction in the number of individuals it employs or in services which such State or local government provides. Each State which receives a payment under the provisions of this subchapter shall report to the Secretary any decrease in the amount of financial assistance which the State provides to the units of local governments during the twelve-month period which ends on the last day of the calendar quarter immediately preceding July 22, 1976, together with an explanation of the reasons for such decrease. Such reports shall be made as soon as it is practical and, in any case, not more than six months after the date on which the decision to impose such tax increase or decrease, such reductions in employment or services, or such decrease in State financial assistance is made public.

(Pub. L. 94–369, title II, § 209, July 22, 1976, 90 Stat. 1008.)

CITE AS: 42 USC 6729

§ 6730. Payments
(a) Time and amount
(b) Adjustments
(c) Termination
No amount shall be paid to any State or local government under the provisions of this section for any calendar quarter if—
(1) the average rate of unemployment within the jurisdiction of such State or local government during the most recent calendar quarter which ended three months before the beginning of such calendar quarter was less than 4.5 percent, or
(2) the rate of unemployment within the jurisdiction of such government for the last month of the most recent calendar quarter which ended three months before the beginning of such calendar quarter did not exceed 4.5 percent.
(Pub. L. 94–369, title II, § 210, July 22, 1976, 90 Stat. 1009; Pub. L. 94–447, title II, § 201 (5), Oct. 1, 1976, 90 Stat. 1498.)

CITE AS: 42 USC 6730

§ 6731. Economization by State and local governments; statement of assurances, etc., required

Each State or unit of local government which receives payments under this subchapter shall provide assurances in writing to the Secretary, at such time and in such manner and form as the Secretary may prescribe by rule, that it has made substantial economies in its operations and that payments under this subchapter are necessary to maintain essential services without weakening Federal Government efforts to stimulate the economy through reductions in Federal tax obligations.

(Pub. L. 94–369, title II, § 211, July 22, 1976, 90 Stat. 1009.)

CITE AS: 42 USC 6731

§ 6732. Withholding of payments for failure to comply with statement of assurances; procedures applicable

Whenever the Secretary, after affording reasonable notice and an opportunity for a hearing to any State or unit of local government, finds that there has been a failure to comply substantially with any assurance set forth in the statement of assurances of that State or units of local government filed under section 6725 of this title, the Secretary shall notify that State or unit of local government that further payments will not be made under this subchapter until he is satisfied that there is no longer any such failure to comply. Until he is so satisfied, no further payments shall be made under this subchapter.

(Pub. L. 94–369, title II, § 212, July 22, 1976, 90 Stat. 1009.)

CITE AS: 42 USC 6732

§ 6733. Repealed. Pub. L. 104–66, title I, § 1131(b), Dec. 21, 1995, 109 Stat. 725

CITE AS: 42 USC 6733

§ 6734. Administration; rules; authorization of appropriations
(a) The Secretary is authorized to prescribe, after consultation with the Secretary of Labor, such rules as may be necessary for the purpose of carrying out his functions under this subchapter. Such rules should be prescribed by the Secretary not later than ninety days of July 22, 1976.
(b) There are authorized to be appropriated such sums as may be necessary for the administration of this subchapter.
(Pub. L. 94–369, title II, § 214, July 22, 1976, 90 Stat. 1010.)

CITE AS: 42 USC 6734

§ 6735. Program studies and recommendations; evaluation; countercyclical study
(a) The Comptroller General of the United States shall conduct an investigation of the impact which emergency support grants have on the operations of State and local governments and on the national economy. Before and during the course of such investigation the Comptroller General shall consult with and coordinate his activities with the Congressional Budget Office and the Advisory Commission on Intergovernmental Relations. The Comptroller General shall report the results of such investigation to the Congress within one year after July 22, 1976, together with an evaluation of the macroeconomic effect of the program established under this subchapter and any recommendations for improving the effectiveness of similar programs. All officers and employees of the United States shall make available all information, reports, data, and any other material necessary to carry out the provisions of this subsection to the Comptroller General upon a reasonable request.
(b) The Congressional Budget Office and the Advisory Commission on Intergovernmental Relations shall conduct a study to determine the most effective means by which the Federal Government can stabilize the national economy during periods of rapid economic growth and high inflation through programs directed toward State and local governments. Such study shall include a comparison of the effectiveness of alternative factors for triggering and measuring the extent of the fiscal coordination problem addressed by this program, and the effect of the recession on State and local expenditures. Before and during the course of such study, the Congressional Budget Office and the Advisory Commission shall consult with and coordinate their activities with the Comptroller General of the United States. The Congressional Budget Office and the Advisory Commission shall report the results of such study to Congress within two years after July 22, 1976. Such study shall include the opinions of the Comptroller General with respect to such study.
(c) The Secretary shall, in consultation with the Secretary of Commerce, conduct an investigation of—
(1) the extent to which allocations of funds provided under this chapter might be more precisely related to true economic conditions by the use of data on aggregate declines in private real wages and salaries;
(2) the extent to which other factors, such as relative tax effort, should also be made part of the allocation system provided by this chapter; and
(3) the availability and reliability of data concerning Puerto Rico, Guam, the Virgin Islands, American Samoa, and the Trust Territory of the Pacific Islands, and the extent to which such territories may properly be made part of the regular allocation system applicable to the several States.
The results of such investigation shall be submitted to the Congress not later than March 1, 1978, in order that such results may be available during congressional consideration of any extension of this chapter beyond the fiscal year ending September 30, 1978.
(Pub. L. 94–369, title II, § 215, July 22, 1976, 90 Stat. 1010; Pub. L. 95–30, title VI, § 606, May 23, 1977, 91 Stat. 167.)

CITE AS: 42 USC 6735

§ 6736. Authorization of appropriations for Puerto Rico, Guam, American Samoa, and Virgin Islands
(a) Authorizations for five calendar quarters beginning July 1, 1977
(b) Allocations
(1) The Secretary shall allocate from the amount authorized under subsection (a) an amount for the purpose of making payments to such governments equal to the total authorized for the calendar quarter multiplied by the applicable territorial percentage.
(2) For the purposes of this subsection, the applicable territorial percentage is equal to the quotient resulting from the division of the territorial population by the sum of the territorial population for all territories.
(3) For purposes of this section—
(A) The term “territory” means Puerto Rico, Guam, American Samoa, and the Virgin Islands.
(B) The term “territorial population” means the most recent population for each territory as determined by the Bureau of Census.
(C) The provisions of sections 6723(c)(4), 6724, 6725, 6726,1
1 See References in Text note below.
6727, 6728, 6729, 6730, 6731, 6732, and 6733 1 of this title shall apply to the funds authorized under this section.
(c) Payments to local governments
(Pub. L. 94–369, title II, § 216, as added Pub. L. 95–30, title VI, § 607, May 23, 1977, 91 Stat. 167.)

CITE AS: 42 USC 6736