I 
111TH CONGRESS 
1ST SESSION H. R. 4290 
To establish the New Economy Grant Program through the Department 
of Labor to create public works jobs on State and local lands and 
community-based public interest projects, to direct aid to State and 
local governments for the retention and rehiring of certain public employ-
ees, and provide direct aid to the Departments of Agriculture and Inte-
rior to create public works jobs to address their deferred maintenance 
items. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 11, 2009 
Mr. HARE (for himself, Ms. SCHAKOWSKY, Mr. STUPAK, Mr. COHEN, Ms. 
KILPATRICK of Michigan, Mr. JACKSON of Illinois, Mr. KILDEE, Ms. 
SUTTON, Mr. COURTNEY, Ms. EDWARDS of Maryland, Mr. MEEKS of 
New York, Mr. OBERSTAR, Mr. RUSH, Mr. ANDREWS, Ms. CLARKE, Ms. 
DELAURO, Ms. FUDGE, Mr. GRAYSON, Mr. GUTIERREZ, Mr. KENNEDY, 
Ms. WOOLSEY, Mr. WEINER, Mr. SCOTT of Virginia, Ms. SLAUGHTER, 
Mr. HALL of New York, Mr. GENE GREEN of Texas, Mr. NADLER of 
New York, Mr. CARSON of Indiana, Ms. JACKSON-LEE of Texas, Mr. 
MICHAUD, Mr. TONKO, Mr. DOYLE, Ms. BERKLEY, Ms. HIRONO, Ms. 
SHEA-PORTER, Ms. CHU, Ms. WATSON, Mr. GRIJALVA, Mr. LUJA´N, Ms. 
TSONGAS, Mr. LOEBSACK, Mr. PRICE of North Carolina, Mr. HASTINGS 
of Florida, Mr. ROTHMAN of New Jersey, Mr. GARAMENDI, Mr. KAGEN, 
Mr. SABLAN, Mr. ELLISON, Mr. CLEAVER, Mr. LARSON of Connecticut, 
and Mr. BRALEY of Iowa) introduced the following bill; which was re-
ferred to the Committee on Education and Labor, and in addition to the 
Committees on the Judiciary, Science and Technology, Natural Re-
sources, Agriculture, Financial Services, and Transportation and Infra-
structure, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To establish the New Economy Grant Program through the 
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Department of Labor to create public works jobs on 
State and local lands and community-based public inter-
est projects, to direct aid to State and local governments 
for the retention and rehiring of certain public employ-
ees, and provide direct aid to the Departments of Agri-
culture and Interior to create public works jobs to ad-
dress their deferred maintenance items. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘New Deal for a New 
Economy Act’’. 
SEC. 2. NEW ECONOMY STATE STABILIZATION FUND. 
(a) DEPARTMENT OF EDUCATION.— 
(1) ALLOCATION.—Not later than 120 days 
after the date of the enactment of this Act, the Sec-
retary of Education shall allocate amounts made 
available under section 9(1) to each State in propor-
tion to the amount received by all local educational 
agencies in the State under part A of title I of the 
Elementary and Secondary Education Act of 1965 
(20 U.S.C. 6311 et seq.) for the previous fiscal year 
relative to the total amount received by all local edu-
cational agencies in every State under such part for 
such fiscal year. 
(2) IN-STATE GRANTS TO LOCAL EDUCATIONAL 
AGENCIES.—From the amount allocated to a State 
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under paragraph (1), each eligible local educational 
agency in the State shall receive an amount in pro-
portion to the amount received by such local edu-
cational agency under part A of title I of the Ele-
mentary and Secondary Education Act of 1965 (20 
U.S.C. 6311 et seq.) for the previous fiscal year rel-
ative to the total amount received by all local edu-
cational agencies in the State under such part for 
such fiscal year. A State shall make and distribute 
the amount allocated to such State not later than 90 
days of receiving such funds from the Secretary of 
Education. 
(3) SPECIAL RULE.—Section 1122(c)(3) of the 
Elementary and Secondary Education Act of 1965 
(20 U.S.C. 6332(c)(3)) shall not apply to paragraph 
(1) or (3). 
(4) USE OF FUNDS.—A local educational agen-
cy receiving an allocation under paragraph (2) may 
use such funds only for the following purposes: 
(A) To hire new employees, which includes 
filling existing vacancies that are no longer 
funded in the budgets of State or local edu-
cational agencies. 
(B) To rehire employees who have been 
laid-off during the year prior to the date of en-
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actment of this Act as a result of reduced budg-
ets of State or local educational agencies. 
(C) To continue to employ employees who 
are scheduled to be laid-off on a future date as 
a result of reduced budgets of State or local 
educational agencies. Such agencies may not 
pay an employee with funds provided under this 
subsection until the date of that employee’s 
scheduled lay-off. 
(D) To prevent furloughs that are sched-
uled as a result reduced budgets of State or 
local educational agencies. 
(5) LIMITATION ON USE OF FUNDS.—No fund-
ing under this subsection can be used to layoff, fur-
lough, terminate, or reduce the working hours of any 
existing employee. 
(6) FEDERAL
FUNDS
TO
SUPPLEMENT, NOT 
SUPPLANT, NON-FEDERAL
FUNDS.—A State edu-
cational agency or local educational agency shall use 
Federal funds received under this subsection only to 
supplement the funds that would, in the absence of 
such Federal funds, be made available from non- 
Federal sources for the education of pupils partici-
pating in programs assisted under this part, and not 
to supplant such funds. 
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(b) DEPARTMENT OF JUSTICE.— 
(1) GRANTS THROUGH THE COPS PROGRAM.— 
From amounts made available under section 9(2), 
the Attorney General shall award grants to State, 
local, or tribal law enforcement agencies through the 
Community Oriented Policing Services program 
(COPS) and in accordance with the allocation proce-
dures provided in section 1001(a)(11)(B) of the Om-
nibus Crime Control and Safe Streets Act of 1968 
(41 U.S.C. 3791(a)(11)(B)). 
(2) USE OF FUNDS.—A State, local, or tribal 
law enforcement agency receiving a grant pursuant 
to this subsection may use such funds only for the 
following purposes: 
(A) To hire new police officers, which in-
cludes filling existing officer vacancies that are 
no longer funded in the State, local, or tribal 
law enforcement agency budget. 
(B) To rehire officers who have been laid- 
off during the year prior to the date of enact-
ment of this Act as a result of reduced State, 
local, or tribal law enforcement agency budgets. 
(C) To continue to employ officers who are 
scheduled to be laid-off on a future date as a 
result of reduced State, local, or tribal law en-
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forcement agency budgets. Such agencies may 
not pay an officer with funds provided under 
this subsection until the date of that officer’s 
scheduled lay-off. 
(D) To prevent furloughs that are cur-
rently scheduled as a result of reduced State, 
local, or tribal law enforcement agency budgets. 
(3) LIMITATION ON USE OF FUNDS.—No fund-
ing under this subsection can be used to layoff, fur-
lough, terminate, or reduce the working hours of any 
existing employee. 
(4) FEDERAL
FUNDS
TO
SUPPLEMENT, NOT 
SUPPLANT, NON-FEDERAL FUNDS.—A State, local, 
or tribal law enforcement agency shall use Federal 
funds received under this subsection only to supple-
ment the funds that would, in the absence of such 
Federal funds, be made available from non-Federal 
sources to hire new employees, and not to supplant 
such funds. 
(c) DEPARTMENT OF HOMELAND SECURITY.— 
(1) GRANTS THROUGH THE SAFER GRANT PRO-
GRAM.—From amounts made available under section 
9(3), the Secretary of Homeland Security, through 
the Administrator of the United States Fire Admin-
istration, shall award grants directly to career, vol-
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