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. JACKSON-
LEE 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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. FINDINGS. 
The Congress finds the following:
(1) The President has proposed a multibillion 
dollar reconstruction project for Iraq. 
(2) The President’s plan includes resources to 
rebuild potable water and wastewater treatment fa-
cilities; schools and health facilities; ports and air-
ports; the electric power system, roads, and bridges; 
railroad infrastructure; solid waste management 
services; irrigation systems; and selected local gov-
ernment buildings. 
(3) State and local governments in the United 
States have their own unmet infrastructure and so-
cial services needs. 
(4) State and local governments represent a 
significant segment of the national economy whose 
economic health is essential to national economic 
prosperity. 
(5) Present national economic problems have 
imposed considerable hardships on State and local 
government budgets. 
(6) Those governments, because of their own 
fiscal difficulties, are being forced to take budget-re-
lated actions which tend to undermine Federal Gov-
ernment efforts to stimulate the economy. 
(7) Efforts to stimulate the economy through 
reductions in Federal Government tax obligations or
increased spending on Federal programs are weak-
ened when State and local governments are forced to 
increase taxes or cut spending. 
(8) Efforts by the Federal Government to stim-
ulate the economic recovery will be substantially en-
hanced by a program of emergency Federal Govern-
ment assistance to State and local governments to 
help prevent those governments from taking budget-
related actions which undermine the Federal Gov-
ernment efforts to stimulate economic recovery. 
(9) State and local governments deserve, at a 
minimum, the same level of Federal investment to 
address infrastructure and social services shortfalls 
as the amount of relief and reconstruction funds 
provided to Iraq. 
SEC. 2. FINANCIAL ASSISTANCE AUTHORIZED. 
(a) PAYMENTS
TO STATE
AND LOCAL GOVERN-
MENTS.—The Secretary of the Treasury shall, in accord-
ance with the provisions of this Act, make payments to 
States and local governments to coordinate budget-related 
actions by such governments with Federal Government ef-
forts to stimulate economic recovery. 
(b) AUTHORIZATION OF APPROPRIATION.—There is 
authorized to be appropriated to the Secretary of the 
Treasury for fiscal year 2003 for payments under this Act
an amount equal to at least the total amount appropriated 
for fiscal year 2003 under the heading ‘‘Iraq Relief and 
Reconstruction Fund’’ in the Emergency Wartime Supple-
mental Appropriations Act, 2003, and any amounts appro-
priated for such Fund in any subsequent appropriation 
Act. Such amounts shall be in addition to, and not in lieu 
of, other amounts appropriated for payments to States 
and local governments. 
(c) AVAILABILITY TO LOCAL GOVERNMENTS.—Not 
less than one-third of the amount appropriated pursuant 
to the authorization in subsection (b) shall be made avail-
able to local governments under the applicable laws of a 
given State. 
SEC. 3. ALLOCATION. 
The Secretary of the Treasury shall establish a for-
mula, within 30 days after the date of the enactment of 
this Act, for determining the allocation of payments under 
this Act. The formula shall give priority weight to the fol-
lowing factors: 
(1) The unemployment rate in relation to the 
national average unemployment rate. 
(2) The duration of the unemployment rate 
above such average. 
(3) Median income. 
(4) Population.
(5) The poverty rate. 
SEC. 4. USE OF FUNDS BY STATE AND LOCAL GOVERN-
MENTS. 
(a) IN GENERAL.—Funds received under this Act 
may be used only for priority expenditures. For purposes 
of this Act, the term ‘‘priority expenditures’’ means only—
(1) ordinary and necessary maintenance and 
operating expenses for—
(A) primary, secondary, or higher edu-
cation, including school building renovation; 
(B) public safety; 
(C) public health, including hospitals and 
public health laboratories; 
(D) social services for the disadvantaged or 
aged; 
(E) roads, transportation, and water infra-
structure; and 
(F) housing; and 
(2) ordinary and necessary capital expenditures 
authorized by law. 
(b) CERTIFICATIONS BY STATE AND LOCAL GOVERN-
MENTS.—The Secretary of the Treasury may accept a cer-
tification by the chief executive officer of a State or local 
government that the State or local government has used 
the funds received by it under this Act only for priority
expenditures, unless the Secretary determines that such 
certification is not sufficiently reliable to enable the Sec-
retary to carry out this Act. The Secretary shall prescribe 
by rule the time and manner in which the certification 
must be filed.
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