I 

108TH CONGRESS 

1ST SESSION H. R. 1738

To require payments to State and local governments for infrastructure and 

social services needs in the same amount as the amount of relief and 

reconstruction funds provided to Iraq. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 10, 2003

Mr. EMANUEL (for himself, Mr. DEFAZIO, Ms. DELAURO, Mr. DELAHUNT, 

Mr. RYAN of Ohio, Mr. FORD, Mr. JACKSON of Illinois, Ms. JACKSONLEE of Texas, Mr. LIPINSKI, Mr. HINCHEY, Mr. LARSON of Connecticut, 

Mr. DAVIS of Alabama, Mr. WEXLER, Mrs. MALONEY, Mr. MCGOVERN, 

Mr. ETHERIDGE, Ms. LEE, Mr. HASTINGS of Florida, Mr. ALLEN, Ms. 

SLAUGHTER, Mr. GRIJALVA, Mrs. CHRISTENSEN, Ms. LINDA T. 

SA ́NCHEZ of California, Mr. SERRANO, Ms. WOOLSEY, Ms. SCHAKOWSKY, 

and Mr. BELL) introduced the following bill; which was referred to the 

Committee on Government Reform 

A BILL

To require payments to State and local governments for 

infrastructure and social services needs in the same 

amount as the amount of relief and reconstruction funds 

provided to Iraq.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. FINDINGS. 

4 The Congress finds the following: 
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1 (1) The President has proposed a multibillion 

2 dollar reconstruction project for Iraq. 

3 (2) The President’s plan includes resources to 

4 rebuild potable water and wastewater treatment fa5 cilities; schools and health facilities; ports and air6 ports; the electric power system, roads, and bridges; 

7 railroad infrastructure; solid waste management 

8 services; irrigation systems; and selected local gov9 ernment buildings. 

10 (3) State and local governments in the United 

11 States have their own unmet infrastructure and so12 cial services needs. 

13 (4) State and local governments represent a 

14 significant segment of the national economy whose 

15 economic health is essential to national economic 

16 prosperity. 

17 (5) Present national economic problems have 

18 imposed considerable hardships on State and local 

19 government budgets. 

20 (6) Those governments, because of their own 

21 fiscal difficulties, are being forced to take budget-re22 lated actions which tend to undermine Federal Gov23 ernment efforts to stimulate the economy. 

24 (7) Efforts to stimulate the economy through 

25 reductions in Federal Government tax obligations or 
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1 increased spending on Federal programs are weak2 ened when State and local governments are forced to 

3 increase taxes or cut spending. 

4 (8) Efforts by the Federal Government to stim5 ulate the economic recovery will be substantially en6 hanced by a program of emergency Federal Govern7 ment assistance to State and local governments to 

8 help prevent those governments from taking budget9 related actions which undermine the Federal Gov10 ernment efforts to stimulate economic recovery. 

11 (9) State and local governments deserve, at a 

12 minimum, the same level of Federal investment to 

13 address infrastructure and social services shortfalls 

14 as the amount of relief and reconstruction funds 

15 provided to Iraq. 

16 SEC. 2. FINANCIAL ASSISTANCE AUTHORIZED. 

17 (a) PAYMENTS TO STATE AND LOCAL GOVERN18 MENTS.—The Secretary of the Treasury shall, in accord19 ance with the provisions of this Act, make payments to 

20 States and local governments to coordinate budget-related 

21 actions by such governments with Federal Government ef22 forts to stimulate economic recovery. 

23 (b) AUTHORIZATION OF APPROPRIATION.—There is 

24 authorized to be appropriated to the Secretary of the 

25 Treasury for fiscal year 2003 for payments under this Act 
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1 an amount equal to at least the total amount appropriated 

2 for fiscal year 2003 under the heading ‘‘Iraq Relief and 

3 Reconstruction Fund’’ in the Emergency Wartime Supple4 mental Appropriations Act, 2003, and any amounts appro5 priated for such Fund in any subsequent appropriation 

6 Act. Such amounts shall be in addition to, and not in lieu 

7 of, other amounts appropriated for payments to States 

8 and local governments. 

9 (c) AVAILABILITY TO LOCAL GOVERNMENTS.—Not 

10 less than one-third of the amount appropriated pursuant 

11 to the authorization in subsection (b) shall be made avail12 able to local governments under the applicable laws of a 

13 given State. 

14 SEC. 3. ALLOCATION. 

15 The Secretary of the Treasury shall establish a for16 mula, within 30 days after the date of the enactment of 

17 this Act, for determining the allocation of payments under 

18 this Act. The formula shall give priority weight to the fol19 lowing factors: 

20 (1) The unemployment rate in relation to the 

21 national average unemployment rate. 

22 (2) The duration of the unemployment rate 

23 above such average. 

24 (3) Median income. 

25 (4) Population. 
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1 (5) The poverty rate. 

2 SEC. 4. USE OF FUNDS BY STATE AND LOCAL GOVERN3 MENTS. 

4 (a) IN GENERAL.—Funds received under this Act 

5 may be used only for priority expenditures. For purposes 

6 of this Act, the term ‘‘priority expenditures’’ means only—

7 (1) ordinary and necessary maintenance and 

8 operating expenses for—

9 (A) primary, secondary, or higher edu10 cation, including school building renovation; 

11 (B) public safety; 

12 (C) public health, including hospitals and 

13 public health laboratories; 

14 (D) social services for the disadvantaged or 

15 aged; 

16 (E) roads, transportation, and water infra17 structure; and 

18 (F) housing; and 

19 (2) ordinary and necessary capital expenditures 

20 authorized by law. 

21 (b) CERTIFICATIONS BY STATE AND LOCAL GOVERN22 MENTS.—The Secretary of the Treasury may accept a cer23 tification by the chief executive officer of a State or local 

24 government that the State or local government has used 

25 the funds received by it under this Act only for priority 
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1 expenditures, unless the Secretary determines that such 

2 certification is not sufficiently reliable to enable the Sec3 retary to carry out this Act. The Secretary shall prescribe 

4 by rule the time and manner in which the certification 

5 must be filed.

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