To authorize a State to transfer or consolidate funds made available to such State under certain transportation, education, and job training programs after the United States experiences economic growth at an annual rate of less than 1 percent for 2 calendar quarters.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``State Temporary Economic Priority 
(STEP) Act''.

SEC. 2. PURPOSE.

    It is the purpose of this Act to authorize a State to transfer or 
consolidate funds made available to such State under certain 
transportation, education, and job training programs after the United 
States experiences economic growth at an annual rate of less than 1 
percent for 2 calendar quarters.

SEC. 3. AUTHORITY TO TRANSFER OR CONSOLIDATE CERTAIN FUNDS.

    (a) Authority Available.--
            (1) In general.--A State may transfer or consolidate funds 
        under subsections (b), (c), and (d) beginning with the calendar 
        quarter after the United States experiences economic growth at 
        an annual rate of less than 1 percent for 2 calendar quarters 
        and continuing until 18 months after the United States 
        experiences economic growth at an annual rate of 1 percent or 
        more for 2 calendar quarters.
            (2) Treatment of transferred or consolidated funds.--Funds 
        transferred or consolidated under subsections (b), (c), or (d) 
        shall be used in accordance with the statutory and regulatory 
        requirements applicable to the program to which the funds are 
        transferred or consolidated.
    (b) Transportation Funds.--
            (1) In general.--In applying subsection (a), a State may 
        transfer, in such amounts as the State determines appropriate, 
        any funds apportioned and allocated to such State from amounts 
        made available from the Highway Trust Fund (26 U.S.C. 9503 et 
        seq.), other than the Mass Transit Account, to any of the 
        apportionments and allocations for the following programs 
        authorized by title 23, United States Code:
                    (A) The interstate maintenance program under 
                section 119.
                    (B) The National Highway System under section 
                103(b).
                    (C) The surface transportation program under 
                section 133.
                    (D) The highway bridge replacement and 
                rehabilitation program under section 144.
            (2) Exempt transportation funds.--The funds made available 
        for the highway safety improvement programs authorized by 
        section 148 and chapter 4 of title 23, United States Code, 
        shall not be subject to transfer or consolidation under 
        subsection (a).
    (c) Federal Education Funds.--In applying subsection (a), a State 
may, in such amounts as the State determines appropriate from any funds 
made available to such State under any formula grant programs carried 
out under any of the following provisions of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.), transfer or 
consolidate such funds between and among such programs:
            (1) Part A of title I (Improving Basic Programs Operated by 
        Local Educational Agencies).
            (2) Subpart 1 of part B of title I (Reading First).
            (3) Subpart 3 of part B of title I (William F. Goodling 
        Even Start Family Literacy Programs).
            (4) Subpart 4 of part B of title I (Improving Literacy 
        Through School Libraries).
            (5) Part C of title I (Education of Migratory Children).
            (6) Part D of title I (Prevention and Intervention Programs 
        for Children and Youth who are Neglected, Delinquent, or At-
        Risk).
            (7) Part F of title I (Comprehensive School Reform).
            (8) Part H of title I (School Dropout Prevention).
            (9) Subpart 1 of part A of title II (Teacher and Principal 
        Training and Recruiting Fund (Grants to States)).
            (10) Part B of title II (Mathematics and Science 
        Partnerships).
            (11) Part D of title II (Enhancing Education Through 
        Technology).
            (12) Part A of title III (English Language Acquisition, 
        Language Enhancement, and Academic Achievement).
            (13) Part A of title IV (Safe and Drug-Free Schools and 
        Communities).
            (14) Part B of title IV (21st Century Community Learning 
        Centers).
            (15) Subpart 2 of part A of title V (Innovative Programs 
        (State Programs)).
            (16) Subpart 1 of part A of title VI (Improving Academic 
        Achievement (Accountability)).
    (d) Job Training Funds.--In applying subsection (a), a State may, 
in such amounts as the State determines appropriate from any funds made 
available to such State under the following job training programs, 
transfer or consolidate such funds between and among such programs:
            (1) Any formula grant program carried out under the 
        Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.).
            (2) Any funds made available to the State under part II of 
        subchapter B of chapter 2 of title II of the Trade Act of 1974 
        (19 U.S.C. 2295 et seq.).
    (e) Definitions.--In this Act--
            (1) the phrase ``economic growth at an annual rate of less 
        than 1 percent for 2 calendar quarters'' means, that for 2 
        consecutive calendar quarters, real gross domestic product, as 
        announced by Bureau of Economic Analysis of the Department of 
        Commerce, has experienced--
                    (A) an annual rate of decrease for such quarters;
                    (B) no change in the annual rate for such quarters; 
                or
                    (C) an increase at an annual rate of less than 1 
                percent for such quarters; and
            (2) the phrase ``economic growth at an annual rate of 1 
        percent or more for 2 calendar quarters'' means an increase in 
        real gross domestic product at an annual rate of 1 percent or 
        more for 2 consecutive calendar quarters, as announced by the 
        Bureau of Economic Analysis of the Department of Commerce for 
        such quarters.

Summary: State Temporary Economic Priority (STEP) Act - Authorizes states to transfer or consolidate funds made available to them under certain federal transportation, education, and job training programs: (1) beginning with the calendar quarter after the United States experiences economic growth at an annual rate of less than 1 for two consecutive calendar quarters. And (2) continuing until 18 months after it experiences economic growth at an annual rate of 1 or more for two consecutive calendar quarters.