II 

108TH CONGRESS 

1ST SESSION S. 1838

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 SENATE OF THE UNITED STATES 

NOVEMBER 6, 2003

Mr. DASCHLE (for Mr. KERRY) introduced the following bill; which was read 

twice and referred to the Committee on Finance 

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: 

5 (1) The President has proposed a multibillion 

6 dollar reconstruction project for Iraq. 

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

8 rebuild potable water and wastewater treatment fa-
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1 cilities; schools and health facilities; ports and air2 ports; the electric power system, roads, and bridges; 

3 railroad infrastructure; solid waste management 

4 services; irrigation systems; and selected local gov5 ernment buildings. 

6 (3) State and local governments in the United 

7 States have their own unmet infrastructure and so8 cial services needs. 

9 (4) State and local governments represent a 

10 significant segment of the national economy whose 

11 economic health is essential to national economic 

12 prosperity. 

13 (5) Present national economic problems have 

14 imposed considerable hardships on State and local 

15 government budgets. 

16 (6) Those governments, because of their own 

17 fiscal difficulties, are being forced to take budget-re18 lated actions which tend to undermine Federal Gov19 ernment efforts to stimulate the economy. 

20 (7) Efforts to stimulate the economy through 

21 reductions in Federal Government tax obligations or 

22 increased spending on Federal programs are weak23 ened when State and local governments are forced to 

24 increase taxes or cut spending. 
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1 (8) Efforts by the Federal Government to stim2 ulate the economic recovery will be substantially en3 hanced by a program of emergency Federal Govern4 ment assistance to State and local governments to 

5 help prevent those governments from taking budget6 related actions which undermine the Federal Gov7 ernment efforts to stimulate economic recovery. 

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

9 minimum, the same level of Federal investment to 

10 address infrastructure and social services shortfalls 

11 as the amount of relief and reconstruction funds 

12 provided to Iraq. 

13 SEC. 2. FINANCIAL ASSISTANCE AUTHORIZED. 

14 (a) PAYMENTS TO STATE AND LOCAL GOVERN15 MENTS.—The Secretary of the Treasury shall, in accord16 ance with the provisions of this Act, make payments to 

17 States and local governments to coordinate budget-related 

18 actions by such governments with Federal Government ef19 forts to stimulate economic recovery. 

20 (b) AUTHORIZATION OF APPROPRIATION.—There is 

21 authorized to be appropriated to the Secretary of the 

22 Treasury for fiscal year 2003 for payments under this Act 

23 an amount equal to at least the total amount appropriated 

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

25 Reconstruction Fund’’ in the Emergency Wartime Supple-
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1 mental Appropriations Act, 2003, and any amounts appro2 priated for such Fund in any subsequent appropriation 

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

4 of, other amounts appropriated for payments to States 

5 and local governments. 

6 (c) AVAILABILITY TO LOCAL GOVERNMENTS.—Not 

7 less than one-third of the amount appropriated pursuant 

8 to the authorization in subsection (b) shall be made avail9 able to local governments under the applicable laws of a 

10 given State. 

11 SEC. 3. ALLOCATION. 

12 The Secretary of the Treasury shall establish a for13 mula, within 30 days after the date of the enactment of 

14 this Act, for determining the allocation of payments under 

15 this Act. The formula shall give priority weight to the fol16 lowing factors: 

17 (1) The unemployment rate in relation to the 

18 national average unemployment rate. 

19 (2) The duration of the unemployment rate 

20 above such average. 

21 (3) Median income. 

22 (4) Population. 

23 (5) The poverty rate. 
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1 SEC. 4. USE OF FUNDS BY STATE AND LOCAL GOVERN2 MENTS. 

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

4 may be used only for priority expenditures. For purposes 

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

6 (1) ordinary and necessary maintenance and 

7 operating expenses for—

8 (A) primary, secondary, or higher edu9 cation, including school building renovation; 

10 (B) public safety; 

11 (C) public health, including hospitals and 

12 public health laboratories; 

13 (D) social services for the disadvantaged or 

14 aged; 

15 (E) roads, transportation, and water infra16 structure; and 

17 (F) housing; and 

18 (2) ordinary and necessary capital expenditures 

19 authorized by law. 

20 (b) CERTIFICATIONS BY STATE AND LOCAL GOVERN21 MENTS.—The Secretary of the Treasury may accept a cer22 tification by the chief executive officer of a State or local 

23 government that the State or local government has used 

24 the funds received by it under this Act only for priority 

25 expenditures, unless the Secretary determines that such 

26 certification is not sufficiently reliable to enable the Sec-
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1 retary to carry out this Act. The Secretary shall prescribe 

2 by rule the time and manner in which the certification 

3 must be filed.

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