posing numerous economic and social costs on the 
Nation. 
(5) The Nation has been deprived of the full 
supply of goods and services, the full utilization of 
labor and capital resources, and the related increases 
in economic well-being that would occur under condi-
tions of genuine full employment. 
(6) The current output of goods and services is 
insufficient to meet pressing national priorities for 
infrastructure, transportation, energy, education, 
health care, child and elder care, and many other 
necessary public and human services. 
(7) Unemployment and underemployment ex-
pose many workers and families to significant, so-
cial, psychological and physiological costs, including 
disruption of family life, the loss of individual dig-
nity and self-respect, and the aggravation of physical 
and psychological illnesses. 
(8) Persisting unemployment and underemploy-
ment have devastating financial consequences, re-
sulting in the loss of income and spending power for 
families, and interfering with their ability to save 
and accumulate assets for a secure family life and 
retirement. High levels of unemployment and inad-
equate consumer demand also contribute to poor 
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conditions for retail businesses, manufacturers and 
many other firms to grow and prosper. In the real 
estate sector, the Congress finds that continuing 
high levels of unemployment contribute to fore-
closures, evictions, and commercial vacancies, under-
mining the quality of neighborhood and community 
life, and hampering prospects for economic recovery 
and national prosperity. 
(9) The historic promise of this earlier legisla-
tion has not been fully realized, and we re-declare 
and reaffirm our support for achieving a national 
goal of jobs for all at living wages. 
(10) The United States has a duty under Arti-
cles 55 and 56 of the United Nations Charter to 
promote ‘‘full employment’’ and the ‘‘universal re-
spect for, and observance of, human rights and fun-
damental freedoms for all without distinction as to 
race, sex, language, or religion’’. The human rights 
the United States has a duty to promote pursuant 
to this obligation are set forth in the Universal Dec-
laration of Human Rights. Article 23 of the Uni-
versal Declaration states that ‘‘Everyone has the 
right to work’’ and to ‘‘just and favorable remunera-
tion’’ that insures for his or her family ‘‘an existence 
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worthy of human dignity, and supplemented, if nec-
essary, by other means of social protection’’. 
(11) The Congress has a strong interest in 
seeking the progressive reduction and elimination of 
job disparities among groups of workers who experi-
ence chronically higher rates of unemployment and 
underemployment. 
(12) Even at the top of the business cycle, when 
national unemployment rates drop to the 4 percent 
to 5 percent range, job vacancy surveys show that 
the economy does not provide enough jobs to employ 
everyone who wants to work. Reliance on direct job 
creation to close the economy’s job gap is especially 
important at such times, because it provides a 
means of creating additional jobs without adding 
significantly to inflationary pressures, a very dif-
ficult goal to achieve at the top of the business cycle 
via macroeconomic policy interventions. 
(13) The Congress intends to maximize the cre-
ation of private, public and nonprofit sector jobs 
through improved use of general economic and struc-
tural policies, including measures to encourage pri-
vate sector investment and capital formation; an in-
creased public investment in research and develop-
ment, infrastructure, energy, education, public serv-
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ices and the environment, and other essential goods 
and services. 
(b) PURPOSE.—It is the purpose of the Humphrey 
Hawkins 21st Century Full Employment and Training 
Act to expedite progress to fulfill the right to useful work 
at living wages for all persons seeking employment, as 
promptly as possible and at the earliest practicable date 
by establishing a Full Employment Trust Fund to fund 
and operate a national program of public service employ-
ment and to provide additional labor market opportunities 
to complement those offered by the existing private, pub-
lic, and nonprofit sectors. 
SEC. 3. DEFINITIONS. 
In this Act the following definitions apply: 
(1) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 
has the meaning given such term in section 102(17) 
of the Housing and Community Development Act 
(42 U.S.C. 5302(17)). 
(2) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Labor. 
(3) SMALL BUSINESS.—The term ‘‘small busi-
ness’’ has the meaning given the term ‘‘small busi-
ness concern’’ under section 3 of the Small Business 
Act (15 U.S.C. 632). 
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(4) STATE.—The term ‘‘State’’ has the mean-
ing given such term in section 102(2) of the Hous-
ing and Community Development Act (42 U.S.C. 
5302(2)). 
(5) TRUST FUND.—The term ‘‘Trust Fund’’ re-
fers to the Full Employment Trust Fund established 
under section 4. 
(6) UNIT OF GENERAL LOCAL GOVERNMENT.— 
The term ‘‘unit of general local government’’ has the 
meaning given such term in section 102(1) of the 
Housing and Community Development Act (42 
U.S.C. 5302(1)). 
(7) URBAN COUNTY.—The term ‘‘urban coun-
ty’’ has the meaning given such term in section 
102(6) of the Housing and Community Development 
Act (42 U.S.C. 5302(6)). 
SEC. 4. ESTABLISHMENT OF FULL EMPLOYMENT NATIONAL 
TRUST FUND. 
(a) IN GENERAL.—The Secretary shall establish a 
Full Employment National Trust Fund (in this Act re-
ferred to as the ‘‘Trust Fund’’) for the purposes of— 
(1) providing funding for the Employment Op-
portunity Grants established in section 5; and 
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(2) issuing funds to the Secretary to fund pro-
grams under the Workforce Investment Act of 1998 
(29 U.S.C. 2801 et seq.). 
(b) FINANCING THE TRUST FUND.—Subject to the 
availability of appropriations for this purpose, the Sec-
retary of the Treasury shall annually make available to 
the Secretary of Labor for deposit into the Trust Fund 
an amount equal to the amount collected for that year 
through the tax described in section 4475 of the Internal 
Revenue Code of 1986, as added by section 8. 
(c) LOANS FROM
THE FEDERAL RESERVE SYS-
TEM.— 
(1) IN GENERAL.—If the amount available in 
the Trust Fund for allocation under section 5 is in-
sufficient to prevent the national unemployment rate 
from rising more than one full percentage during a 
fiscal year in which the national unemployment rate 
is increasing, the Board of Governors of the Federal 
Reserve System shall lend such additional amounts 
to the Trust Fund as are necessary to allow the Sec-
retary of Labor to make such additional allocations 
under section 5 as are necessary to restore the na-
tional unemployment rate to its allowable 1 percent 
range of upward variation. 
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(2) REPAYMENT.—Amounts lent to the Trust 
Fund by the Board of Governors of the Federal Re-
serve System under paragraph (1) shall be repaid by 
the Trust Fund over 10 years, with interest payable 
at the same average rate the Federal Government 
contracts to pay on 10-year bonds sold during the 
period beginning 45 days prior to the date the loans 
were made to the Trust Fund and ending 45 days 
following such date. 
(d) SEPARATE TRUST FUND ACCOUNTS.—The Trust 
Fund shall consist of 2 separate accounts as follows: 
(1) One account shall consist of 67 percent of 
the funds made available for deposit under sub-
section (b) and shall be for the Employment Oppor-
tunity Grants established in section 5. 
(2) The other account shall consist of 33 per-
cent of the funds made available for deposit under 
subsection (b) and shall be available to the Secretary 
to fund programs under the Workforce Investment 
Act of 1998 (29 U.S.C. 2801 et seq.). 
(e) WEB SITE.—The Secretary shall establish an 
Internet Web site to serve as an information clearinghouse 
for job training and employment opportunities funded by 
the Trust Fund. 
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(f) TRAINING STIPEND.—The Secretary shall pro-
mulgate regulations to encourage entities that receive 
funds under programs under the Workforce Investment 
Act of 1998 (20 U.S.C. 2801 et seq.) that are funded by 
the account described in subsection (c)(2) to, whenever 
possible, establish a training stipend for individuals who 
participate in such programs. 
SEC. 5. EMPLOYMENT OPPORTUNITY GRANTS TO STATES, 
LOCAL GOVERNMENTS, AND INDIAN TRIBES. 
(a) EMPLOYMENT GRANTS CONTINGENT ON LEVEL 
OF UNEMPLOYMENT.— 
(1) FIRST YEAR.—Subject to the availability of 
funds in the Trust Fund for activities under this 
section, if, at the beginning of a month in the first 
fiscal year for which funds are available in the Trust 
Fund for activities under this section, the United 
States has unemployment according to the most re-
cent monthly publications of the Bureau of Labor 
Statistics of the Department of Labor, the Secretary 
shall make grants for such month to States, unit of 
general local governments, or Indian tribes to carry 
out activities in accordance with this section. The 
total amount awarded under this paragraph for such 
fiscal year shall not exceed 90 percent of the funds 
available in the Trust Fund for such fiscal year. 
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(2) SUCCEEDING YEARS.—Subject to the avail-
ability of funds in the Trust Fund for activities 
under this section, if, at the beginning of a fiscal 
year subsequent to the fiscal year described in para-
graph (1), the United States has unemployment ac-
cording to the most recent monthly publications of 
the Bureau of Labor Statistics of the Department of 
Labor, the Secretary shall make grants for such fis-
cal year to States, units of general local government, 
Indian tribes, or community-based organizations to 
carry out activities in accordance with this section. 
The total amount awarded under this paragraph for 
a fiscal year shall not exceed 90 percent of the funds 
available in the Trust Fund for such fiscal year. 
(b) PURPOSE.—Grants made under this section shall 
be for creating employment opportunities for unemployed 
and underemployed individuals in activities designed to 
address community needs and reduce disparities in health, 
housing, education, job readiness, and public infrastruc-
ture that have impeded these communities from realizing 
their full economic potential. 
(c) USE OF FUNDS.—A recipient of a grant under 
this section shall use the grant for the following purposes: 
(1) Construction, re-construction, rehabilitation, 
and site improvements of residences or public facili-
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ties, including improvements in the energy efficiency 
or environmental quality of such public facilities or 
residences. 
(2) Provision of human services, including child 
care services, health care services, education, or rec-
reational programs. 
(3) The remediation and demolition of vacant 
and abandoned properties to eliminate blight. 
(4) Programs that provide disadvantaged youth 
with opportunities for employment, education, lead-
ership development, entrepreneurial skills develop-
ment, and training. 
(5) The painting and repair of schools, commu-
nity centers, and libraries. 
(6) The restoration and revitalization of aban-
doned and vacant properties to alleviate blight in 
distressed and foreclosure-affected areas of a unit of 
general local government. 
(7) The expansion of emergency food programs 
to reduce hunger and promote family stability. 
(8) The augmentation of staffing in Head 
Start, child care, and other early childhood edu-
cation programs to promote school readiness and 
early literacy. 
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(9) The renovation and enhancement of mainte-
nance of parks, playgrounds, and other public 
spaces. 
(10) Supplemental labor for existing federally 
or State-funded infrastructure projects. 
(11) Supplemental labor for existing federally 
or State-funded projects aimed at expanding access 
to broadband or wireless Internet service. 
(12) Other activities that address public needs 
and which can be implemented as quickly as the ac-
tivities described in paragraphs (1) through (11). 
(d) CONSULTATION REQUIRED.—Each grant recipi-
ent shall consult with community leaders, including labor 
organizations, nonprofit community-based organizations, 
local government officials, and local residents to— 
(1) assess the needs of the community served 
by the grant recipient; 
(2) determine sectors of the local economy that 
are in need of employees; 
(3) make recommendations for new employment 
opportunities in the areas described in subsection 
(c); and 
(4) assess the effectiveness of job placements 
made under this Act. 
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(e) CONDITIONS.—As a condition of receiving a grant 
under this section, a grant recipient shall— 
(1) agree to comply with the nondiscrimination 
policy set forth under section 109 of the Housing 
and Community Development Act of 1974 (42 
U.S.C. 5309); 
(2) with respect to the funds allocated for each 
project funded under the grant— 
(A) allocate not less than 80 percent for 
wages, benefits, and support services, including 
child care services, for individuals, including su-
pervisory and management personnel, employed 
on such project; and 
(B) allocate the remaining funds to defray 
the nonlabor costs of the project, including nec-
essary capital goods, supplies, materials, rental 
payments, transportation costs, and other simi-
lar expenses; 
(3) use revenue generated by a project funded 
under the grant (whether in the form of fees paid 
for services provided by the project, reimbursements 
for expenses incurred in undertaking the project, or 
income from the sale of goods or services produced 
by the project) in excess of the costs of the project 
to— 
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(A) supplement the project budget; or 
(B) support other projects funded by the 
grant in conformity with the purposes of this 
Act and subject to the same rules and require-
ments that apply to other such projects; 
(4) ensure that employment on any project 
funded under the grant is carried out in accordance 
with subsection (c); 
(5) institute an outreach program with commu-
nity organizations and service providers in low-in-
come communities to provide information about 
placements funded under the grant to individuals 
suited to perform community infrastructure work; 
and 
(6) ensure that not less than 35 percent of indi-
viduals employed under the grant are individuals de-
scribed in paragraph (4)(B) of subsection (f). 
(f) EMPLOYMENT DESCRIBED.—Employment funded 
under this section shall meet the following specifications: 
(1) Any employer that employs an individual 
whose employment is funded under the grant shall— 
(A) continue to employ such individual for 
not less than 12 months, subject to the individ-
ual’s satisfactory performance of the reasonable 
requirements of the individual’s employment; 
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(B) if such an individual desires full-time 
employment, employ such individual for not less 
than 35 hours per week and not more than 40 
hours, and if such an individual desires part- 
time work, employ such individual for a mutu-
ally agreed number of hours per week that is 
less than 35 hours per week; 
(C) comply with responsible contractor 
standards, as determined by the relevant official 
in the unit of local general government; 
(D) provide compensation to such indi-
vidual on a per hour basis equal to the com-
pensation provided to public sector employees 
who perform similar work in the community 
where such individual is employed or, if no pub-
lic sector employees perform such similar work, 
provide compensation to such individual that is 
comparable to the compensation provided to 
private-sector employees who perform similar 
work in the community where such individual is 
employed; 
(E) if such employment is in construction, 
provide compensation to any laborer or me-
chanic employed under the grant at rates not 
less than those prevailing on similar construc-
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tion in the locality as determined by the Sec-
retary in accordance with subchapter IV of 
chapter 31 of title 40, United States Code; and 
(F) offer assistance to such individual in 
applying for social benefits for which such indi-
vidual or the members of such individual’s fam-
ily may be eligible. 
(2) No individual whose employment is funded 
under the grant may work for an employer at which 
a collective bargaining agreement is in effect cov-
ering the same or similar work, unless— 
(A) the consent of the union at such em-
ployer is obtained; and 
(B) negotiations have taken place between 
such union and the employer as to the terms 
and conditions of such employment. 
(3)(A)(i) An employer may not employ an indi-
vidual for a position funded under this Act, if— 
(I) employing such individual will re-
sult in the layoff or partial displacement 
(such as a reduction in hours, wages, or 
employee benefits) of an existing employee 
of the employer; or 
(II) such individual will perform the 
same or substantially similar work that 
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had previously been performed by an em-
ployee of the employer— 
(aa) has been laid off or partially 
displaced (as such term is described in 
subclause (I)); and 
(bb) has not been offered by the 
employer, to be restored to the posi-
tion the employee had immediately 
prior to being laid off or partially dis-
placed. 
(ii) For the purposes of this paragraph, a posi-
tion shall be considered to have been eliminated by 
an employer if the position has remained unfilled 
and the unit or organization has not sought to fill 
such position for at least a period of one month. 
(iii) An individual may not be hired for a posi-
tion funded under this Act in a manner that in-
fringes upon the promotional opportunities of an ex-
isting employee (as of the date of such hiring) of an 
employer receiving funds under this Act. 
(B) A community-based organization receiving 
funds under this Act may not use such funds to pro-
vide services or functions that are customarily pro-
vided by a unit of general local government where 
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service for not less than 13 weeks prior to the 
date the individual is so hired. 
(5) An individual employed in a job funded 
under this Act shall— 
(A) notwithstanding the individual’s em-
ployment in a job funded under this Act, be 
registered with the appropriate State employ-
ment service as available for and seeking work; 
(B) respond appropriately, as a person 
available for and seeking employment, to refer-
rals by the State employment service concerning 
available jobs; 
(C) apply for suitable jobs for which the 
individual has been referred by the State em-
ployment service; and 
(D) accept a suitable job if such job is of-
fered to the individual. 
For purposes of subparagraphs (C) and (D), the 
term ‘‘suitable job’’ means a job that a newly unem-
ployed individual receiving unemployment insurance 
benefits would be required to accept in order to 
avoid forfeiting the individual’s eligibility for contin-
ued receipt of unemployment insurance benefits 
under the laws of the State in which the individual 
is employed in a job funded under this Act. 
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(6) An individual employed in a job funded 
under this Act who terminates that employment in 
order to accept other employment, and who subse-
quently is terminated from that other employment 
without fault on the individual’s part, shall be eligi-
ble for immediate reemployment in a job funded 
under this Act. 
(7) In hiring individuals for positions funded 
under this Act, or using funds under this Act to con-
tinue to provide employee compensation for existing 
employees, an employer shall comply with all appli-
cable Federal, State, and local laws, personnel poli-
cies and regulations, and collective bargaining agree-
ments, as if such individual was hired, or such em-
ployee compensation were provided, without assist-
ance under this Act. 
(8) An individual hired for a position funded 
under this Act shall— 
(A) be considered an employee of the em-
ployer, by which such individual was hired; and 
(B) receive the same employee compensa-
tion, have the same rights and responsibilities 
and job classifications, and be subject to the 
same job standards, employer policies, and col-
lective bargaining agreements as if such indi-
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vidual were hired without assistance under this 
Act. 
(g) AWARD OF GRANTS.— 
(1) SELECTION
CRITERIA.—In selecting a 
project to receive funding for employing the individ-
uals described in subsection (f)(4), a grant recipient 
shall consider— 
(A) the input of all participants in a pro-
posed project, including labor organizations, 
community organizations, and employers; 
(B) the needs of the community intended 
to benefit from such project; 
(C) the long-term goals and short-term ob-
jectives to address such needs; and 
(D) any recommendations for programs 
and activities developed to meet such needs. 
(2) PRIORITY GIVEN TO CERTAIN PROJECTS.— 
A grant recipient under this section shall give pri-
ority to projects that— 
(A) serve areas with the greatest level of 
economic need, determined for each such area 
by— 
(i) the unemployment rate; 
(ii) the rate of poverty; 
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(iii) the number of census tracts with 
concentrated poverty; 
(iv) the lowest median income; 
(v) the percentage of vacant and 
abandoned properties; 
(vi) the percentage of home fore-
closures; and 
(vii) the indicators of poor resident 
health, including high rates of chronic dis-
ease, infant mortality, and life expectancy; 
(B) integrate education and job skills 
training, including basic skills instruction and 
secondary education services; 
(C) coordinate to the maximum extent fea-
sible with pre-apprenticeship and apprenticeship 
programs; and 
(D) provide jobs in sectors where job 
growth is most likely, as determined by the Sec-
retary, and in which career advancement oppor-
tunities exist to maximize long-term, sustain-
able employment for individuals after employ-
ment funded under this Act ends. 
(h) ALLOCATION OF GRANTS.— 
(1) GRANTS FOR INDIAN TRIBES AND DEPOSITS 
INTO DISCRETIONARY FUND.—Not more than 5 per-
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cent of the funds available in the Trust Fund for ac-
tivities under this section for any fiscal year shall be 
reserved for grants to Indian tribes and for deposit 
into a discretionary fund established by the Sec-
retary for national demonstration projects and 
multi-jurisdictional projects. 
(2) GRANTS TO STATES.—Not more than 30 
percent of the funds available in the Trust Fund for 
activities under this section for any fiscal year shall 
be allocated to States to distribute to units of gen-
eral local government that do not qualify for funds 
under paragraph (3). 
(3) GRANTS
TO
UNITS
OF
GENERAL
LOCAL 
GOVERNMENT.—Grant funds that are not reserved 
under paragraphs (1) and (2) shall be allocated to 
metropolitan cities and urban counties using the for-
mula under section 106(b) of the Housing and Com-
munity Development Act of 1974 (42 U.S.C. 
5306(b)). 
(i) REPORTS.— 
(1) REPORTS
BY
GRANT
RECIPIENTS.—Not 
later than 90 days after the last day of each fiscal 
year in which assistance under this section is fur-
nished, a recipient of a grant under this section shall 
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submit to the Secretary a report containing the fol-
lowing: 
(A) A description of the progress made in 
accomplishing the objectives of this chapter. 
(B) A summary of the use of the grant 
during the preceding fiscal year. 
(C) For units of general local government, 
a listing of each entity receiving funds and the 
amount of such grants, as well as a brief sum-
mary of the projects funded for each such unit, 
the extent of financial participation by other 
public or private entities, and the impact on 
employment and economic activity of such 
projects during the previous fiscal year. 
(D) For States, a listing of each unit of 
general local government receiving funds and 
the amount of such grants, as well as a brief 
summary of the projects funded for each such 
unit, the extent of financial participation by 
other public or private entities, and the impact 
on employment and economic activity of such 
projects during the previous fiscal year. 
(E) The amount of money received and ex-
pended during the fiscal year. 
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(F) The number of individuals assisted 
under the grant whose household income is low- 
income, very low-income, or extremely low-in-
come (as such terms are used for purposes of 
the Housing Act of 1937 and the regulations 
thereunder (42 U.S.C. 1437 et seq.)). 
(G) The amount expended on administra-
tive costs during the fiscal year. 
(2) REPORT
TO
CONGRESS.—At least once 
every 6 months, the Secretary shall submit to Con-
gress a report on the use of grants awarded under 
this section and any progress in job creation. 
(j) ESTABLISHMENT
OF
ARBITRATION
PROCE-
DURE.— 
(1) IN GENERAL.—Each grant recipient under 
this section shall agree to the arbitration procedure 
described in this subsection to resolve disputes de-
scribed in subsections (k) and (l). 
(2) WRITTEN GRIEVANCES.— 
(A) IN GENERAL.—If an employee (or an 
employee representative) wishes to use the arbi-
tration procedure described in this subsection, 
such party shall file a written grievance within 
the time period required under subsection (k) 
or (l), as applicable, simultaneously with the 
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