II 

108TH CONGRESS 

1ST SESSION S. 201

To amend title 31, United States Code, to provide Federal aid and economic 

stimulus through a one-time revenue grant to the States and their 

local governments. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 22, 2003

Mr. SCHUMER (for himself and Ms. SNOWE) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL

To amend title 31, United States Code, to provide Federal 

aid and economic stimulus through a one-time revenue 

grant to the States and their local governments.

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘State and Local Aid 

5 and Economic Stimulus Act of 2003’’. 
2

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1 SEC. 2. ONE-TIME REVENUE GRANT TO STATES AND LOCAL 

2 GOVERNMENTS. 

3 (a) IN GENERAL.—Chapter 67 of title 31, United 

4 States Code, is amended by adding at the end the fol5 lowing new section: 

6 ‘‘§ 6721. One-time revenue grant to States and local 

7 governments 

8 ‘‘(a) APPROPRIATION.—There is authorized to be ap9 propriated and is appropriated to carry out this section 

10 $40,000,000,000 for fiscal year 2003. 

11 ‘‘(b) ALLOTMENTS.—From the amount appropriated 

12 under subsection (a) for fiscal year 2003, the Secretary 

13 of the Treasury shall, as soon as practicable after the date 

14 of the enactment of this Act, allot to each of the States 

15 as follows: 

16 ‘‘(1) $20 BILLION BASED ON POPULATION.—

17 ‘‘(A) STATE LEVEL.—$10,000,000,000 

18 shall be allotted among such States on the basis 

19 of the relative population of each such State, as 

20 determined by the Secretary on the basis of the 

21 most recent satisfactory data. 

22 ‘‘(B) LOCAL GOVERNMENT LEVEL.—

23 $10,000,000,000 shall be allotted among such 

24 States as determined under subparagraph (A) 

25 for distribution to the various units of general 

26 local government within such States on the 
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1 basis of the relative population of each such 

2 unit within each such State, as determined by 

3 the Secretary on the basis of the most recent 

4 satisfactory data. 

5 ‘‘(2) $20 BILLION BASED ON CHANGE IN UNEM6 PLOYMENT RATE.—

7 ‘‘(A) TIER 1.—

8 ‘‘(i) STATE LEVEL.—$2,500,000,000 

9 shall be allotted among such States which 

10 have experienced a tier 1 unemployment 

11 rate on the basis of the relative number of 

12 unemployed individuals for calendar year 

13 2002 in each such State, as determined by 

14 the Secretary on the basis of the most re15 cent satisfactory data. 

16 ‘‘(ii) LOCAL GOVERNMENT LEVEL.—

17 $2,500,000,000 shall be allotted among 

18 such States which have experienced a tier 

19 1 unemployment rate as determined under 

20 clause (i) for distribution to the various 

21 units of general local government within 

22 such States on the basis of the relative 

23 number of unemployed individuals for cal24 endar year 2002 in each such unit within 

25 each such State, as determined by the Sec-
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1 retary on the basis of the most recent sat2 isfactory data. 

3 ‘‘(B) TIER 2.—

4 ‘‘(i) STATE LEVEL.—$7,500,000,000 

5 shall be allotted among such States which 

6 have experienced a tier 2 unemployment 

7 rate on the basis of the relative number of 

8 unemployed individuals for calendar year 

9 2002 in each such State, as determined by 

10 the Secretary on the basis of the most re11 cent satisfactory data. 

12 ‘‘(ii) LOCAL GOVERNMENT LEVEL.—

13 $7,500,000,000 shall be allotted among 

14 such States which have experienced a tier 

15 2 unemployment rate as determined under 

16 clause (i) for distribution to the various 

17 units of general local government within 

18 such States on the basis of the relative 

19 number of unemployed individuals for cal20 endar year 2002 in each such unit within 

21 each such State, as determined by the Sec22 retary on the basis of the most recent sat23 isfactory data. 

24 ‘‘(c) GUIDELINES FOR USE OF FUNDS.—It is the 

25 sense of Congress that priority for using the funds allotted 
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1 under this section should be given to homeland security, 

2 medicaid, public health, highway construction, childcare, 

3 elementary, secondary, and higher education, and the pre4 vention of additional property tax increases. 

5 ‘‘(d) DEFINITIONS.—For purposes of this section—

6 ‘‘(1) STATE.—The term ‘State’ means any of 

7 the several States, the District of Columbia, and the 

8 Commonwealth of Puerto Rico. 

9 ‘‘(2) UNIT OF GENERAL LOCAL GOVERN10 MENT.—

11 ‘‘(A) IN GENERAL.—The term ‘unit of gen12 eral local government’ means—

13 ‘‘(i) a county, parish, township, city, 

14 or political subdivision of a county, parish, 

15 township, or city, that is a unit of general 

16 local government as determined by the Sec17 retary of Commerce for general statistical 

18 purposes; and 

19 ‘‘(ii) the District of Columbia, the 

20 Commonwealth of Puerto Rico, and the 

21 recognized governing body of an Indian 

22 tribe or Alaskan native village that carries 

23 out substantial governmental duties and 

24 powers. 
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1 ‘‘(B) TREATMENT OF SUBSUMED AREAS.—

2 For purposes of determining a unit of general 

3 local government under this section, the rules 

4 under section 6720(c) of title 31, United States 

5 Code, shall apply. 

6 ‘‘(3) UNEMPLOYMENT.—With respect to any 

7 State or unit of general local government—

8 ‘‘(A) TIER 1 UNEMPLOYMENT RATE.—The 

9 term ‘tier 1 unemployment rate’ means an un10 employment rate for calendar year 2002 which 

11 was at least .4 but not more than 1.0 percent12 age point greater than such rate for calendar 

13 year 2000. 

14 ‘‘(B) TIER 2 UNEMPLOYMENT RATE.—The 

15 term ‘tier 2 unemployment rate’ means an un16 employment rate for calendar year 2002 which 

17 was more than 1.0 percentage point greater 

18 than such rate for calendar year 2000.’’. 

19 (b) CONFORMING AMENDMENT.—The table of sec20 tions for chapter 67 of title 31, United States Code, is 

21 amended by adding at the end the following new item:

‘‘6721. One-time revenue grant to States and local governments.’’.

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