An Act to translate into practical reality the right of all Americans who are able, willing, and seeking to work to full opportunity for useful paid employment at fair rates of compensation; to assert the responsibility of the Federal Government to use all practicable programs and policies to promote full employment, production, and real income, balanced growth, adequate productivity growth, proper attention to national priorities, and reasonable price stability; to require the President each year to set forther explicit short-term and medium-term economic goals; to achieve a better integration of general and structural economic policies; and to improve the coordination of economic policymaking within the Federal Government.
PL 95-523 (H.R.50), enacted 10/27/1978

PUBLIC LAW 95-523—OCT. 27, 1978 
92 STAT. 1887 
Public Law 95-523 
95th Congress 
An Act 
To translate into practical reality the right of all Americans who are able, will-
ing, and. seeking to work to full opportunity for useful paid employment at 
fair rates of compensation; to assert the responsibility of the Federal Govern-
ment to use all practicable programs and policies to promote full employment, 
production, and real income, balanced growth, adequate productivity growth, 
proper attention to national priorities, and reasonable price stability; to 
require the President each year to set forth explicit short-term and medium-
term economic goals; to achieve a better integration of general and structural 
economic policies; and to improve the coordination of economic policymaking 
within the Federal Government. 
Oct. 27, 1978 
[H.R. 50] 
Be is eTiacted 
hy the Senate 
and House 
of Representatives 
of 
the 
United 
States 
of America 
in Congress 
asserribled^ 
S E C T I O N 1. T h i s A c t a n d the following table of contents m a y be 
cited as the " F u l l E m p l o y m e n t a n d Balanced G r o w t h A c t of 1978". 
TABLE OF CONTENTS 
Sec. 1. Short title; table of contents. 
Sec. 2. General findings. 
Sec. 3. Report. 
Sec. 4. National Employment Conference. 
TITLE I—ESTABLISHMENT OF GOALS AND GENERAL ECONOMIC 
POLICIES 
Sec. 101. Statement of purpose. 
Sec. 102. Declaration of policy. 
Sec. 103. Economic Report of the President and short-term economic goals and 
policies. 
Sec. 104. Full employment and balanced growth; medium-term economic goals 
and policies. 
Sec. 105. Provisions applicable to short-term and medium-term goals. 
Sec. 106. National priority policies and programs required for full employment 
and balanced growth. 
Sec. 107. The President's budget. 
Sec. 108. Monetary policy. 
Sec. 109. Overcoming inflation. 
Sec. 110. Council of Economic Advisers. 
Sec. 111. Advisory Board or Boards. 
TITLE II—STRUCTURAL POLICIES AND PROGRAMS, INCLUDING 
TREATMENT OF RESOURCE RESTRAINTS 
Sec. 201. Statement of purpose. 
Sec. 202. Countercyclical employment policies. 
Sec. 203. Coordination with State and local government and private sector 
economic activity. 
Sec. 204. Regional and structural employment policies. 
Sec. 205. Youth employment policies. 
Sec, 206. Job training, counseling, and reservoirs of employment projects. 
Sec. 207. Capital formation—^private and public. 
[ 
TITLE III—POLICIES AND PROCEDURES FOR CONGRESSIONAL 
REVIEW 
Sec. 301. Statement of purpose. 
Sec. 302. Committee review. 
Sec. 303. Review of Economic Report as part of the Budget process. 
Sec. 304. Modification of timetable for achieving unemployment goals. 
Sec. 305. Exercise of rulemaking powers. 
TITLE IV—GENERAL PROVISIONS 
Sec. 401. Nondiscrimination. 
Sec. 402. Labor standards. 
Full Employment 
and Balanced 
Growth Act of 
1978. 
15 u s e 3101 
note. 
92 STAT. 1888 
PUBLIC LAW 95-523—OCT. 27, 1978 
GENERAL FINDINGS 
' 
" ''" 
15 use 3101. 
SEC. 2. (a) The Congress finds that the Nation has suffered substan-
tial unemployment and underemployment, idleness of other productive 
resources, high rates of inflation, and inadequate productivity 
growth, over prolonged periods of time, imposing numerous economic 
and social costs on the Nation. Such costs include the following: 
(1) The Nation is dep)rived 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 conditions of genuine full employment, production, and 
real income, balanced growth, a balanced Federal budget, and the 
effective control of inflation. 
(2) The output of goods and services is insufficient to meet 
pressing national priorities. 
(3) Workers are deprived of the job security, income, skill 
development, and productivity necessary to maintain and 
advance their standards of living. 
(4) Business and industry are deprived of the production, 
'' ' 
sales, capital flow, and productivity necessary to maintain ade-
quate profits, undertake new investment, create jobs, compete 
internationally, and contribute to meeting society's economic 
needs. These problems are especially acute for smaller businesses. 
Variations in the business cycle and low-level operations of the 
economy are far more damaging to smaller businesses than to 
larger business concerns because smaller businesses have fewer 
available resources, and less access to resources, to withstand 
nationwide economic adversity. A decline in small business enter-
prises contributes to unemployment by reducing employment 
opportunities and contributes to inflation by reducing competition. 
(5) Unemployment exposes many families to social, psycho-
logical, and physiological costs, including disruption of family 
life, loss of individual dignity and self-respect, and the aggrava-
tion of physical and psychological illnesses, alcoholism and drug 
abuse, crime, and social conflicts. 
(6) Federal, State, and local government budgets are under-
mined by deficits due to shortfalls in tax revenues and in increases 
in expenditures for unemployment compensation, public assist-
ance, and other recession-related services in the areas of criminal 
justice, alcoholism and drug abuse, and physical and mental 
health. 
(b) The Congress further finds that: 
(1) High unemployment may contribute to inflation by dimin-
ishing labor training and skills, underutilizing capital resources, 
reducing the rate of productivity advance, increasing unit labor 
costs, and reducing the general supply of goods and services. 
(2) Aggregate monetary and fiscal policies alone have been 
unable to achieve full employment and production, increased real 
income, balanced growth, a balanced Federal budget, adequate pro-
ductivity growth, proper attention to national priorities, achieve-
ment of an improved trade balance, and reasonable price stability, 
and therefore must be supplemented by other measures designed 
to serve these ends. 
(3) Attainment of these objectives should be facilitated by 
setting explicit short-term and medium-term economic goals, and 
by improved coordination among the President, the Congress, 
and the Board of Governors of the Federal Reserve System. 
PUBLIC LAW 95-523—OCT. 27, 1978 
92 STAT. 1889 
(4) Increasing job opportunities and full employment would 
greatly contribute to the elimination of discrimination based 
upon sex, age, race, color, religion, national origin, handicap, or 
other improper factors. 
(c) The Congress further finds that an effective policy to promote 
full employment and production, increased real income, balanced 
growth, a balanced Federal budget, adequate productivity growth, 
proper attention to national priorities, achievement of an improved 
trade balance, and reasonable price stability should (1) be based on 
the development of explicit economic goals and policies involving the 
President, the Congress, and the Board of Governors of the Federal 
Reserve System, with maximum reliance on the resources and ingenu-
ity of the private sector of the economy, (2) include programs specif-
ically designed to reduce high unemployment due to recessions, and 
to reduce structural unemployment within regional areas and among 
particular labor force groups, and (3) give proper attention to the role 
of increased exports and improvement in the international competi-
tiveness of agriculture, business, and industry in providing productive 
employment opportunities and achieving an improved trade balance. 
(d) The Congress further finds that full employment and produc-
tion, increased real income, balanced growth, a balanced Federal 
budget, adequate productivity growth, proper attention to national 
priorities, achievement of an improved trade balance through increased 
exports and improvement in the international competitiveness of agri-
culture, business, and industry, and reasonable price stability are 
important national requirements and will promote the economic secu-
rity and well-being of all citizens of the Nation. 
(e) The Congress further finds that the United States is part of 
an interdependent world trading and monetary system and that attain-
ment of the requirements specified in subsection (d) is dependent upon 
policies promoting a free and fair international trading system and 
a sound and stable international monetary system. 
REPORT 
SEC. 3. Not later than one year after the date of enactment of this 
Act, the Committee on Human Resources of the Senate and the Com-
mittee on Education and Labor of the House of Representatives each 
shall conduct a study and submit a report, including findings and 
recommendations, to the Committee on Rules and Administration of 
the Senate and the Committee on Rules of the House, respectively, 
on the subject of establishing a full employment goal in connection 
with the provisions of this Act. 
Full employment 
goal, study. 
15 use 3102. 
NATIONAL EMPLOYMENT CONFERENCE 
SEC. 4. (a) A national Employment Conference may be convened 
in the District of Columbia within a reasonable period of time after 
the date of enactment of the Full Employment and Balanced Growth 
Act of 1978. Responsibility for the organization and implementation 
of this conference shall rest with the President or the appropriate 
department or agency of the Federal Government, and the confer-
ence shall bring together leaders of small and larger business, labor, 
government, and all other interested parties. 
(b) The subject of the conference shall be employment, with par-
ticular attention to structural unemployment and the plight of dis-
advantaged youth. The conference shall also focus on issues such as 
Convening and 
organization. 
15 use 3103. 
39-194 O—80—pt. 2 
39 : QL3 
92 STAT. 1890 
PUBLIC LAW 95-523—OCT. 27, 1978 
implementation of adequate and effective incentives for private sector 
employers to hire the hard-core unemployed. Special attention shall 
be given to the creation of jobs through the use of targeted employ-
ment tax credits, wage vouchers, and other incentives to private sector 
businesses. 
TITLE I—ESTABLISHMENT OF GOALS AND GENERAL 
ECONOMIC POLICIES 
fit 
>. 
• i 
STATEMENT OF PURPOSE 
. . . ' 
. 
' < 
15 use 1021 
SEC. 101. It is the purpose of this title— 
note. 
(^) ^^ declare the general policies of this Act; 
(2^ to provide an open process under which economic goals and 
policies are proposed, reviewed, and established; 
(3) to provide for yearly review of national economic policies 
to ensure their consistency with these goals to the maximum 
extent possible; and 
(4) to strengthen and supplement the purposes and policies 
15 use 1021 
of the Employment Act of 1946. 
note. 
DECLARATION OP POLICY 
15 use 1021. 
SEC 102. Section 2 of the Employment Act of 1946 is amended to 
read as follows: 
"SEC. 2. (a) The Congress hereby declares that it is the continuing 
policy and responsibility of the Federal Government to use all prac-
ticable means, consistent with its needs and obligations and other 
essential national policies, and with the assistance and cooperation of 
both small and larger businesses, agriculture, labor, and State and 
local governments, to coordinate and utilize all its plans, functions, 
and resources for the purpose of creating and maintaining, in a man-
ner calculated to foster and promote free competitive enterprise and 
the general welfare, conditions which promote useful employment 
opportunities, including self-employment, for those able, willing, and 
*^,,, .^,i 
seeking to work, and promote full employment and production, 
, 
• 
increased real income, balanced growth, a balanced Federal budget, 
MiH ; c 
adequate productivity growth, proper attention to national priorities, 
achievement of an improved trade balance through increased exports 
and improvement in the international competitiveness of agriculture, 
business, and industry, and reasonable price stability as provided in 
Post, p. 1895. 
section 5 (b) of this Act. 
"(b) The Congress further declares and establishes as a national 
goal tne fulfillment of the right to full opportunities for useful paid 
employment at fair rates of compensation of all individuals able, 
willing, and seeking to work. 
"(c) The Congress further declares that inflation is a major 
national problem requiring improved government policies relating to 
food, energy, improved and coordinated fiscal and monetary manage-
ment, the reform of outmoded rules and regulations of tne Federal 
Government, the correction of structural defects in the economy that 
prevent or seriously impede competition in private markets, and other 
measures to reduce the rate of inflation. 
"(d) The Congress further declares that it is the purpose of the 
Ante, p. 1887. 
Full Employment and Balanced Growth Act of 1978 to improve the 
coordination and integration of the policies and programs of the 
Federal Government toward achievement of the objectives of such 
PUBLIC LAW 95-523—OCT. 27, 1978 
92 STAT. 1891 
Act through better management, increased efficiency, and attention 
to long-range as well as short-range problems and to balancing the 
Federal budget. 
"(e) The Congress further declares that, although it is the purpose 
under the Full Employment and Balanced Growth Act of 1978 to Ante, p. 1887. 
seek diligently and to encourage the voluntary cooperation of the 
private sector in helping to achieve the objectives of such Act, no 
provisions of such Act or this Act shall be used, with respect to any 
portion of the private sector of the economy, to provide for Federal 
Government control of production, employment, allocation of 
resources, or wages and prices, except to the extent authorized under 
other Federal laws. 
"(f) The Congress further declares that it is the purpose of the 
Full Employment and Balanced Growth Act of 1978 to maximize 
and place primary emphasis upon the expansion of private employ-
ment, and all programs and policies imder such Act shall be in accord 
with such purpose. Toward this end, the effort to expand jobs to the 
, 
full employment level shall be in this order of priority to the extent 
consistent with balanced growth— 
"(1) expansion of conventional private jobs through improved 
use of general economic and structural policies, including meas-
ures to encourage private sector investment and capital formation; 
, 
,. 
"(2) expansion of private employment through Federal assist-
ance in connection with the priority programs in such Act; 
"(3) expansion of public employment other than through the 
provisions of section 206 of such Act; and 
Post, p. 1902. 
"(4) when recommended by the President under section 206 
of such Act and subject to the limitations in such section, the 
creation of employment through the methods set forth in such 
section. 
"(g) The Congress further declares that trade deficits are a major 
national problem requiring a strong national export policy including 
improved Government policies relating to the promotion, facilitation, 
and financing of commercial and agricultural exports, Government 
policies designed to reduce foreign barriers to exports through inter-
national negotiation and agreement. Federal support for research, 
development, and diffusion of new technologies to promote innovation 
in agriculture, business, and industry, the elimination or modification 
of Government rules or regulations that burden or disadvantage 
exports and the national and international competitiveness of agri-
culture, business, and industry, the reexamination of antitrust laws 
and policies when necessary to enable agriculture, business, and indus-
try to meet foreign competition in the United States and abroad, and 
the achievement of a free and fair international trading system and a 
sound and stable international monetary order. 
"(h) The Congress further declares that it is the purpose of the 
Full Employment and Balanced Growth Act of 1978 to achieve a 
balanced Federal budget consistent with the achievement of the 
medium-term goals specified in section 4. 
Post, p. 1893. 
"(i) The Congress further declares that it is the continuing policy 
and responsibility of the Federal Government, in cooperation with 
State and local governments, to use all practical means consistent with 
other essential considerations of national policy to provide sufficient 
incentives to assure meeting the investment needs of private enter-
prise, including the needs of small and medium sized businesses, in 
order to increase the production of goods, the provision of services, 
employment, the opportunity for profit, the payment of taxes, and to 
92 STAT. 1892 
PUBLIC LAW 95-523—OCT. 27, 1978 
reduce and control inflation. To the extent it is reasonably possible to 
do so, private enterprise investments in depressed urban and rural 
areas should be promoted to reduce the high levels of unemployment 
that exist there. 
"(j) The Congress further declares that it is the purpose of the 
Ante, p. 1887. 
Full Employment and Balanced Growth Act of 1978 to rely prin-
cipally on the private sector for expansion of economic activity and 
creation of new jobs for a growing labor force. Toward this end, it is 
the purpose of this Act to encourage the adoption of fiscal policies 
that would establish the share of the gross national product accounted 
for by Federal outlays at the lowest level consistent with national 
needs and priorities.". 
ECONOMIC REPORT OF THE PRESIDENT AND SHORT-TERM ECONOMIC 
GOALS AND POLICIES 
SEC 103. (a) The heading preceding section 3 and section 3(a) of 
15 use 1022, 
the Employment Act of 1946 are amended to read as follows: 
" E C O N O M I C R E P O R T O F T H E P R E S I D E N T A N D SHORT-TERM ECONOMIC 
GOALS AND POLICIES 
, 
Transmittal to 
"SEC. 3. (a) The President shall transmit to the Congress during 
Congress and 
the first twenty days of each regular session, with copies transmitted 
S***®8- 
to the Governor of each State and to other appropriate State and 
local officials, an economic report (hereinafter in this Act referred 
H 
to as the 'Economic Report') together with the annual report of the 
Council of Economic Advisers submitted in accord with section 11 (c) 
of this Act, setting forth— 
"(1) the current and foreseeable trends in the levels of 
employment, unemployment, production, capital formation, real 
income, Federal budget outlays and receipts, productivity, inter-
national trade and payments, and prices, and a review and anal-
ysis of recent domestic and international developments affecting 
economic trends in the Nation; 
"(2) (A) annual numerical goals for employment and unem-
ployment, production, real income, productivity, and prices for 
the calendar year in which the Economic Report is transmitted 
and for the following calendar year, designated as short-term 
goals, which shall be consistent with achieving as rapidly as 
feasible the goals of full employment and production, increased 
real income, balanced growth, fiscal policies that would establish 
the share of an expanding gross national product accounted for 
by Federal outlays at the lowest level consistent with national 
needs and priorities, a balanced Federal budget, adequate pro-
ductivity growth, price stability, achievement of an improved 
trade balance, and proper attention to national priorities; and 
"(B) annual numerical goals as specified in subparagraph (A) 
for the three successive calendar years, designated as medium 
•,v''; .-^ M'^\ 
term goals; 
"(3) employment objectives for certain significant subgroups 
of the labor force, including youth, women, minorities, handi-
capped persons, veterans, and middle-aged and older persons; 
and 
"(4) a program for carrying out the policy declared in sec-
Ante, p. 1890. 
tion 2, together with such recommendations for legislation as the 
President may deem necessary or desirable.". 
^ 
PUBLIC LAW 95-523—OCT. 27, 1978 
92 STAT. 1893 
(b) Section 3 of the Employment Act of 1946 is amended by add- 15 USC 1022. 
ing the following: 
"(d) For the purposes of the Full Employment and Balanced 
Growth Act of 1978, the percentage rate of unemployment as a per- Ante, p. 1887. 
centage of the civilian labor force as set forth by the Bureau of Labor 
Statistics in the Department of Labor as computed under the proce-
dures in effect as of the date of enactment of this Act. 
"(e) For the purpose of the Full Employment and Balanced 
Definitions. 
Growth Act of 1978, the terms 'inflation', 'prices', and 'reasonable price 
stability' refer to the rate of change or level of the consumer price 
index as set forth by the Bureau of Labor Statistics, United States 
Department of Labor." 
FULL EMPLOYMENT AND BALANCED GROWTH: MEDIUM-TERM ECONOMIC 
GOALS AND POLICIES 
SEC. 104. The Employment Act of 1946 is amended by redesignat-
ing sections 4 and 5 as sections 10 and 11, respectively, and by inserting 
a new section 4 as follows: 
15 USC 1023, 
1024. 
" F U L L EMPLOYMENT AND BALANCED GROWTH: MEDIUM-TERM ECONOMIC 
GOALS AND POLICIES 
"SEC. 4. (a) In each Economic Report after enactment of the Full 15 USC 1022a. 
Employment and Balanced Growth Act of 1978, the President shall 
incorporate (as part of the five-year numerical goals in each Economic 
Report) medium-term annual numerical goals specified in section 
3(a) (2) (B), and in each President's Budget submitted immediately Ante, p. 1892. 
prior thereto, the President shall incorporate the programs and 
policies the President deems necessary to achieve such medium-term 
goals and a balanced Federal budget and to achieve reasonable price 
stability as rapidly as feasible as provided for in section 5(b) of this 
Act. 
Post, p. 1895. 
"(b) The medium-term goals in the first three Economic Reports 
and, subject to the provisions of subsection (d), in each Economic 
Report thereafter shall include (as part of the five-year goals in each 
Economic Report) interim numerical goals for— 
"(1) reducing the rate of unemployment, as set forth pur-
suant to section 3(d) of this Act, to not more than 3 per centum Supra. 
among individuals aged twenty and over and 4 per centum among 
individuals aged sixteen and over within a period not extending 
beyond the fifth calendar year after the first such Economic 
Report; and 
"(2) reducing the rate of inflation, as set forth pursuant to 
section 3(e) of this Act, to not more than 3 per centum within Supra. 
a period not extending beyond the fifth calendar year after the 
first such Economic Report: Provided, 
That policies and pro-
grams for reducing the rate of inflation shall be designed so as 
not to impede achievement of the goals and timetables specified 
in 
clause 
(1) 
of 
this 
subsection 
for 
the 
reduction 
of 
unemployment. 
For purposes of this subsection, the first Economic Report shall be 
the Report issued in the first calendar year after enactment of the Full 
Employment and Balanced Growth Act of 1978. 
" (c) (1) Upon achievement of the 3 and 4 per centum goals specified 
in subsection (b)(1), each succeeding Economic Report shall have 
the goal of achieving as soon as practicable and maintaining there-
after full employment and a balanced budget. 
92 STAT. 1894 
PUBLIC LAW 95-523—OCT. 27, 1978 
Review and 
corrective 
measures. 
Ante, p. 1887. 
Post, p. 1904. 
Ante, p. 1893. 
Presidential 
recommendation. 
Post, p. 1906. 
" (2) Upon achievement of the 3 per centum goal specified in sub-
section (b) (2), each succeeding Economic Report shall have the goal 
of achieving by 1988 a rate of inflation of zero per centum: Provided, 
That policies and programs for reducing the rate of inflation shall be 
designed so as not to impede achievement of the goals and time-
tables specified in clause (1) of this subsection for the reduction of 
unempl<wment. 
"(d) In the second Economic Report after enactment of the Full 
Employment and Balanced Growth Act of 1978, the President shall 
review the numerical goals and timetables for the reduction of 
unemployment and inflation and the goal of balancing the Federal 
budget; report to the Congress on the degree of progress being made, 
the programs and policies being used, and any obstacles to achieving 
such goals and timetables; and, if necessary, propose corrective eco-
nomic measures toward achievement of such goals and timetables: 
Provided, That beginning with the second Report and in any sub-
sequent Reports, if the President finds it necessary, the President may 
recommend modification of the timetable or timetables for the achieve-
ment of the goals provided for in subsection (b) and the annual 
numerical goals to make them consistent with the modified timetable 
or timetables, and the Congress may take such action as it deems appro-
priate consistent with title III of the Full Employment and Balanced 
Growth Act of 1978. 
"(e) If, after achievement of the 3 and 4 per centum goals specified 
in subsection (b), the unemployment rate for a year as set forth 
pursuant to section 3(d) of this Act is more than 3 per centum among 
individuals aged twenty and over or more than 4 per centum among 
individuals aged sixteen and over, the next Economic Report after 
such rate is set forth and each succeeding Economic Report shall 
include (as part of the five-year goals in each Economic Report) 
the interim numerical goal of reducing unemployment to not more 
than the levels specified in subsection (b) (1) as soon as practicable 
but not later than the fifth calendar year after the first such Economic 
Report, counting as the first calendar year the year in which such 
Economic Report is issued: Provided, That, if the President finds it 
necessary, the President may, under the authority provided in sub-
section (d), recommend modification of the timetable provided for in 
this subsection for the reduction of unemployment, and for the pur-
poses of section 304 of the Full Employment and Balanced Growth 
Act of 1978, such recommendation by the President shall be treated 
as a recommendation made under subsection (d) of this section. 
"(f) (1) In taking action to reduce unemployment in accord with 
the numerical goals and timetable established under section (b), every 
effort shall be made to reduce those differences between the rates of 
unemployment among youth, women minorities, handicapped persons, 
veterans, middle-aged and older persons and other labor force groups 
and the overall rate of unemployment which are caused by any 
improper factors with the ultimate objective of removing such differ-
entials to the extent possible. 
"(2) Insofar as the differences specified in the preceding paragraph 
are due to lack of training and skills, occupational practices, and other 
relevant factors, the Secretary of Labor shall— 
"(A) take such action as practicable to achieve the objectives 
of this subsection; 
"(B) make studies, develop information, and make recommen-
dations toward remedying these differences in rates of unemploy-
ment, and include these in the annual Employment and Training 
PUBLIC LAW 95-523—OCT. 27, 1978 
92 STAT. 1895 
Eeport of the President required under section 705(a) of the 
Comprehensive Employment and Training Act of 1973 (herein- Post, p. 2021. 
after in this Act referred to as 'CETA'); and 
"(C) make recommendations, as deemed necessary, to the Con-
gress related to the objectives of this paragraph. 
"(g) (1) The term 'middle-aged and older persons' as used in this Definitions, 
section includes any individual forty-five years of age or older. 
"(2) For purposes of this subsection, the term 'veteran' shall mean 
the same as defined in section 2011(1) or (2) (A) of title 38, United 
States Code.". 
PROVISIONS APPLICABLE TO SHORT-TERM AND MEDIUM-TERM GOALS 
SEC. 105. The Employment Act of 1946 is amended by adding a new 
section 5 as follows: 
" P R O V I S I O N S A P P L I C A B L E T O SHORT-TERM AND MEDIUM-TERM GOALS 
"SEC. 5. (a) To aid in determining the short-term and medium- Analysis, 
term goals for employment, production, real income, and prices, 15 USC 1022b. 
analysis shall be presented in the Economic Report with respect to 
major aspects of the appropriate composition or structure of each 
goal, and as to the appropriate apportionment of total national 
production among its major components (private investment, con-
sumer expenditures, and public outlays) as affected by relative income 
flows and other factors, in order to promote balanced growth and a 
balanced Federal budget, reduce cyclical disturbances, and achieve 
the other purposes of this Act and the Full Employment and Balanced 
Growth Act of 1978. 
Ante, p. 1887. 
"(b) In choosing means to achieve the goal for the reduction of 
unemployment and choosing means to achieve the goal of reasonable 
price stability, those means which are mutually reinforcing shall 
be used to the extent practicable.". 
NATIONAL PRIORITY POLICIES AND PROGRAMS REQUIRED FOR FULL 
EMPLOYMENT AND BALANCED GROWTH 
SEC 106. The Employment Act of 1946 is amended by adding a new 
section 6 as follows: 
"NATIONAL PRIORITY POLICIES AND PROGRAMS REQUIRED FOR FULL 
EMPLOYMENT AND BALANCED GROWTH 
"SEC. 6. To contribute to the achievement of the goals under the 15 USC 1022c. 
Full Employment and Balanced Growth Act of 1978, the President's 
Budget for each fiscal year beginning after the date of enactment 
of the Full Employment and Balanced Growth Act of 1978 shall 
include priority policies and programs, which shall include, to the 
extent deemed appropriate by the President, consideration of the 
following— 
"(A) development of energy sources and supplies, transporta-
tion, and environmental improvement; 
"(B) proper attention to the problems and needs of smaller 
businesses including (i) the availability of investment capital, 
management and technical expertise, and technology and labor 
needs, (ii) analysis of economic and social trends which may 
affect smaller businesses, (iii) government policies and programs 
I'i'i.! I i 
) ' ' 
92 STAT. 1896 
PUBLIC LAW 95-523—OCT. 27, 1978 
(including agency regulations and excessive paperwork require-
- -re- y jj/? 
ments) that may create undue hardship for or reduce the com-
petitiveness of smaller businesses, and (iv) other policies and 
programs to remove barriers to competition and to strengthen 
and promote the creation and growth of smaller businesses; 
, :!!i^;«i. B'>(i 
"(C) development of a comprehensive national agricultural 
policy that assures— 
" (i) production levels adequate to meet the nutritional needs 
j ; ,
5 
of all Americans and respond to rising food requirements 
throughout the world; 
"(ii) farm and ranch income at full parity levels that will 
improve opportunities for farm families, encourage produc-
tion, provide for essential capital investment in farming, and 
wm 
provide for farm prices at full parity in the market place; 
"(iii) renewed commitment to the protection and conserva-
tion of rural land and water through support for improved 
conservation practices and research, and attention to agri-
cultural land use in the formulation of plans for energy, 
water and mineral resources, transportation, and commercial, 
industrial, and residential development; and 
"(iv) support for programs and public services designed 
to respond to the unique economic and social conditions of 
rural communities; 
"(D) proper attention to the relationship between Federal 
programs and policies and the problems and needs of urban 
areas, including inner cities and the employment problems of their 
residents, especially youths; 
" ( E ) proper attention to the quality and quantity of health 
care, education and training programs, child care and other human 
services, and housing, essential to a full employment economy 
and to moving toward their availability for all individuals at costs 
within their means; 
" ( F ) policies concerning Federal aid to State and local govern-
ments, especially for public investment and unemployment related 
costs; 
" (G) national defense and other needed international programs; 
" ( H ) proper attention to the relationship between Federal 
grants, contracts, and procurement and the closure of military 
bases and other Federal facilities and the distribution of jobs and 
income among different regions of the Nation, and among urban, 
suburban, and rural areas; 
"(I) Proper attention to balancing the Federal budget; 
"(J) proper attention to the dislocation of jobs caused by 
Federal laws, regulations, and policies; 
"(K) policies and programs designed to increase exports and 
improve the international competitive position of agriculture, 
business, and industry, including measures to promote a free and 
fair international trading system, a sound and stable international 
monetary system and innovation in agriculture, business, and 
industry ; 
" (L) such other priority policies and programs as the President 
deems appropriate.". 
, 
THE PRESIDENT'S BUDGET 
SEC. 107. The Employment Act of 1946 is amended by inserting a 
new section 7 as follows: 
PUBLIC LAW 95-523—OCT. 27, 1978 
92 STAT. 1897 
"THE PRESIDENT'S BUDGET 
"SEC. 7. (a) The President's Budget shall recommend levels of out- 15 USC 1022d. 
lays and receipts which shall be consistent with the shoxt-term 
economic goals of section 3(a)(2)(A). 
Ante, p. 1892. 
"(b) The President's Budget shall provide jfive-year projections of 
outlays and receipts consistent with the medium-term goals of section 
4(b). 
^nte, p. 1893. 
"(c) The principal elements in the President's Budget shall be set 
forth briefly in each Economic Eeport, toward the end of making clear 
the relationship between the President's Budget and the goals and 
policies set forth in such Economic Report. Both the expenditure and 
revenue elements of the President's Budget shall be developed to pro-
mote the purposes, policies, and goals of the Full Employment and 
Balanced Growth Act of 1978. The size of the President's expenditure Ante, p. 1887. 
and revenue proposals, and the relationships between such proposals, 
shall be determined in a manner which gives consideration to the needs 
of the economy and the people in the priority areas set forth in section 
6, and the relationship between the President's expenditure and 
revenue proposals shall be guided accordingly.". 
MONETARY POLICY 
SEC. 108. (a) Section 2A of the Federal Reserve Act is amended 
by striking out the second and third sentences and inserting in lieu 
thereof the following: "In furtherance of the purposes of the Full 
Employment and Balanced Growth Act of 1978, the Board of Gov-
ernors of the Federal Reserve System shall transmit to the Congress, 
not later than February 20 and July 20 of each year, independent 
written reports setting forth (1) a review and analysis of recent 
developments affecting economic trends in the Nation; (2) the objec-
tives and plans of the Board of Governors and the Federal Open 
Market Committee with respect to the ranges of growth or diminu-
tion of the monetary and credit aggregates for the calendar year 
during which the report is transmitted, taking account of past and 
prospective developments in employment, unemployment, production, 
investment, real income, productivity, international trade and pay-
ments, and prices; and (3) the relationship of the aforesaid objectives 
and plans to the short-term goals set forth in the most recent Economic 
Report of the President pursuant to section 3(a)(2)(A) of the 
Employment Act of 1946 and to any short-term goals approved by 
the Congress. In addition, as a part of its report on July 20 of each 
year, the Board of Governors shall include a statement of its objec-
tives and plans with respect to the ranges of growth or diminution of 
the monetary and credit aggregates for the calendar year following 
the year in which the report is submitted. The reports required under 
the two preceding sentences shall be transmitted to the Congress and 
shall be referred in the Senate to the Committee on Banking, Hous-
ing, and Urban Affairs, and in the House of Representatives to the 
Committee on Banking, Finance and Urban Affairs. The Board shall 
consult with each such Committee on the reports and, thereafter, each 
such Committee shall submit to its respective body a report containing 
its views and recommendations with respect to the Federal Reserve's 
intended policies. Nothing in this Act shall be interpreted to require 
that the objectives and plans with respect to the ranges of growth 
or diminution of the monetary and credit aggregates disclosed in 
the reports submitted under this section be achieved if the Board 
Annual reports to 
Congress. 
12 USC 225a. 
Transmittals to 
congressional 
committees, 
consultation and 
report. 
92 STAT. 1898 
PUBLIC LAW 95-523—OCT. 27, 1978 
Effective date. 
12 u s e 225a 
note. 
of Governors and the Federal Open Market Committee determine 
that they cannot or should not be achieved because of changing 
conditions: Provided, That in the subsequent consultations with, and 
reports to, the aforesaid Committees of the Congress pursuant to this 
section, the Board of Governors shall include an explanation of the 
reasons for any revisions to or deviations from such objectives and 
plans.". 
(b) The amendment made by subsection (a) takes effect on Janu-
ary 1,1979. 
OVERCOMING INFLATION 
•! 
fs 
SEC. 109. The Employment Act of 1946 is amended by inserting a 
new section 8 as follows: 
15 u s e 1022e. 
Ante, pp. 1892, 
1893. 
Ante, p. 1895. 
Policy initiation 
and recommenda-
tions. 
"OVERCOMING INFLATION 
"SEC. 8. (a) The Congress hereby determines that the objective of 
achieving reasonable price stability as soon as feasible, as set forth 
in section 3(a) (3) and section 4(a), shall be pursued by the methods 
and subject to the requirements of section 5(b). 
"(b) The Congress finds that sole dependence upon fiscal or mone-
tary policies or both to combat inflation can exacerbate both inflation 
and unemployment. The Congress finds that the coordinated use of 
fiscal and monetary policies in conjunction with specific targeted pol-
icies are necessary to combat inflation. 
"(c) The President shall initiate specific policies to reduce the rate 
of inflation, including recommendations to the Congress where nec-
essary, and include recommendations within the Economic Report 
and the President's budget to the extent practicable. Structural pol-
icies to reduce the rate of inflation may include— 
"(1) an effective information system to monitor and analyze 
inflationary trends in individual economic sectors, so that the 
President and Congress can be alerted to developing inflation 
problems especially those caused by bottlenecks inhibiting the flow 
of goods and services; 
"(2) programs and policies for alleviating shortages of goods, 
services, labor, and capital, with particular emphasis on food, 
energy, and critical industrial materials to aid in stabilizing 
prices; 
"(3) the establishment of stockpiles of agricultural commodi-
ties and other critical materials to help stabilize prices, meet 
emergencjT^ needs, and promote adequate income to producers; 
"(4) encouragement to labor and management to increase pro-
ductivity within the national framework of full employment 
through voluntary arrangements in industries and economic 
sectors; 
"(5) recommendations to increase competition in the private 
sector and to improve the economic climate for the creation and 
growth of smaller businesses, including recommendations to 
strengthen and enforce the antitrust laws, the patent laws, and 
the internal revenue laws and regulations; 
"(6) removal or proper modification of such Government 
restrictions and regulations as add unnecessarily to inflationary 
costs; 
"(7) increasing exports and improving the international com-
petitive position of agriculture, business, and industry; and 
PUBLIC LAW 95-523—OCT. 27, 1978 
92 STAT. 1899 
"(8) such other administrative actions and recommendations 
for legislation as the President deems desirable, to promote 
reasonable price stability.". 
COUNCIL OF ECONOMIC ADVISERS 
15 use 1023. 
Ante, p. 1893. 
SEC. 110. (a) Section 10 of the Employment Act of 1946 (as redesig-
nated by section 104 of this Act) is amended— 
(1) in the second sentence of subsection (a), by inserting "full" 
immediately after "promote"; 
(2) in subsection (c)(4), by inserting "including small and 
larger business" immediately after "enterprise" and by inserting 
"full" immediately after "maintain"; 
(3) in subsection (e) (1), by inserting immediately before the 
semicolon a comma and the following: "and shall consult with 
the board or boards established under section 9"; and 
(4) in subsection (e), by inserting after paragraph (2) the 
following: 
"In its work under this Act and the Full Employment and Balanced 
Growth Act of 1978, the Council is authorized and directed to seek and Ante, p. 1887 
obtain the cooperation of the various executive and independent agen-
cies in the development of specialized studies essential to its 
responsibilities.". 
ADVISORY BOARD OR BOARDS 
; 
/ 
SEC. 111. (a) The Employment Act of 1946 is amended by inserting a 
new section 9 as follows: 
"ADVISORY BOARD OR BOARDS 
"SEC. 9. (a) An advisory board or boards (including regional Establishment 
advisory boards) may be established as the President deems appro- and duties, 
priate, to advise and consult periodically with one or more of the 15 USC 1022f. 
following: The President, the Council of Economic Advisers, and such 
other departments and agencies of the executive branch of the Federal 
Government as the President shall determine. 
"(b) Such advisory board or boards shall include appropriate Membership, 
representation of labor, small and larger businesses and industries, 
agriculture, consumers. State and local officials, and the public at 
large, and shall advise and consult with respect to matters related 
to this Act, the Full Employment aand Balanced Growth Act of 1978, 
and other appropriate matters related to national economic programs 
and policies. The President shall, in accordance with applicable pro-
visions of law, take the steps necessary to provide appropriate 
i' 
compensation to the members of such advisory board or boards.". 
TITLE 
II—STRUCTURAL 
ECONOMIC 
POLICIES 
AND 
PROGRAMS, INCLUDING TREATMENT OF RESOURCE 
RESTRAINTS 
STATEMENT OF PURPOSE 
SEC. 201. The Congress recognizes that general economic policies 
alone have been unable to achieve the goals set forth in this Act related 
to full employment, production, and real income, balanced growth, 
adequate growth in productivity, proper attention to national priori-
ties, achievement of an improved trade balance through increased 
exports and improvement in the international competitiveness of agri-
15 USC 3111. 
92 STAT. 1900 
PUBLIC LAW 95-523—OCT. .27, 1978 
culture, business, and industry, and achievement of reasonable price 
stability as provided for in section 5(b) of the Employment Act of 
Ante, p. 1895. 
1946. It is, therefore, the purpose of this title to require the President 
Policies and 
to initiate, as the President deems appropriate, with recommendations 
programs, 
to the Congress where necessary, supplementary programs and policies 
initiation. 
to the extent that the President finds such action necessary to help 
achieve these goals, including the goals and timetable for the reduction 
of unemployment. Insofar as feasible without undue delay, any policies 
and programs so recommended shall be included in the Economic 
Report. 
COUNTERCYCLICAL EMPLOYMENT POLICIES 
15 use 3112. 
SEC. 202. (a) Any countercyclical efforts undertaken to aid in 
achieving the purposes of section 201 shall consider for inclusion the 
following programmatic entities: 
(1) accelerated public works, including the development of 
t 
standby public works projects; 
(2) public service employment; 
(3) State and local grant programs; 
tBJjl .0 ,
3
*
f
l
K • 
(4) the levels and duration of unemployment insurance; 
(5) skill training in both the private and public sectors, both as 
g 
a general remedy and as a supplement to unemployment 
insurance; 
(6) youth employment programs as specified in section 205; 
(7) community development programs to provide employment 
s 
in activities of value to the States, local communities (including 
rural areas), and the Nation; 
(8)Federal procurement programs which are targeted on labor 
surplus areas; and 
(9) augmentation of other employment and training programs 
?'' 
' 
• ' 
which would help to reduce high levels of unemployment arising 
from cyclical causes. 
(b) In any countercyclical efforts undertaken, the President shall 
consider a triggering mechanism which will implement the program 
during a period of rising unemployment and phase out the program 
when unemployment is appropriately reduced, and incorporate effec-
fjir^ari/.-* 
tive means to facilitate individuals assisted under programs developed 
pursuant to this section to return promptly to regular private and 
public employment as the economy recovers. 
15 use 3113. 
15 use 1021 
note. 
COORDINATION WITH STATE AND LOCAL GOVERNMENT AND 
PRIVATE SECTOR ECONOMIC ACTIVITY 
SEC. 203. (a) As an integral part of any countercyclical employ-
ment policies undertaken in accord with section 202, the President 
shall, to the extent the President deems necessary, set forth programs 
and policies, including recommended legislation where needed, to 
coordinate economic action among the Federal Government, regions, 
States and localities, and the private sector to promote achievement of 
the purposes of this Act and the Employment Act of 1946 and an 
economic environment in which State and local governments and 
private sector economic activity and employment will prosper. In 
considering programs and policies related to the private sector, full 
consideration shall be given to promoting the growth and well-being 
of small businesses and employment training programs through pri-
vate sector incentives. 
PUBLIC LAW 95-523—OCT. 27, 1978 
92 STAT. 1901 
(b) In any efforts under this section, the President shall endeavor 
to meet criteria that establish programs which are funded to take 
account of the fiscal needs and budget conditions of the respective 
States and localities and their own efforts, with special attention to 
the rates of unemployment in such States and localities. 
REGIONAL AND STRUCTURAL EMPLOYMENT POLICIES 
SEC. 204. (a) To the extent deemed appropriate by the President in 
fulfillment of the purposes of section 201, the President shall recom-
mend legislation to the Congress if necessary, regional and struc-
tural employment policies and programs. 
(b) In formulating the regional components of any such programs, 
the President shall encourage to the extent the President deems nec-
essary, new private sector production and employment to locate within 
depressed localities and regions with substantial unemployment and 
to aid in stabilizing their economic base. To the extent feasible, such 
policies and programs shall foster the establishment and growth 
of smaller businesses in such localities and regions. Any regional 
employment proposal of the President shall also include an analysis 
of the extent to which Federal tax, expenditure (including procure-
ment of goods and services), defense, transportation, energy, natural 
resources and employment policies have influenced the movement of 
people, jobs, and small and larger business and industries from chronic 
high unemployment regions and areas, and proposals designed to 
correct Federal policies that have an advei"se economic impact upon 
such regions and areas. 
Legislative 
recommenda-
tions. 
15 use 3114. 
•shA 
Analysis, 
inclusion. 
YOUTH EMPLOYMENT POLICIES 
SEC. 205. (a) The Congress finds and declares— 
(1) That serious unemployment and economic disadvantage 
of a unique nature exist among youths even under generally 
favorable economic conditions; 
(2) that this group constitutes a substantial portion of the 
Nation's unemployment, and that this significantly contributes to 
? > crime, alcoholism and drug abuse, and other social and economic 
problems; and 
(3) that many youths have special employment needs and 
problems which, if not promptly addressed, will substantially 
contribute to more severe unemployment problems in the long 
run. 
(b) To the extent deemed necessary in fulfillment of the purposes 
of this Act, the President shall improve and expand existing youth 
employment programs, recommending legislation where required. In 
formulating any such program, the President shall— 
(1) include provisions designed to fully coordinate youth 
employment activities with other employment and training 
programs; 
(2) develop a smoother transition from school to work; 
(3) prepare disadvantaged and other youths with employ-
i
* 
ability handicaps for regular self-sustaining employment; 
(4) develop realistic methods for combining training with 
work; and 
(5) develop provisions designed to attract structurally unem-
ployed youth into productive full-time employment through 
incentives to private and independent sector businesses; 
15 use 3115. 
92 STAT. 1902 
PUBLIC LAW 95-523—OCT. 27, 1978 
Policies, 
procedures and 
recommenda-
tions. 
15 use 3116. 
15 use 1021 
note. 
Post, p. 1930. 
Project 
reservoirs, 
establishment. 
Ante, pp. 1892, 
1893. 
JOB TRAINING, COUNSELING AND IlESERVOIRS OF EMPLOYMENT PROJECTS 
SEC. 206. (a) Further to promote achievement of full employment 
under this Act and the Employment Act of 1946, the President, 
through the Secretary of Labor, shall develop policies and procedures 
and, as necessary, recommend programs for providing employment 
opportunities to individuals aged 16 and over in the civilian labor 
force who are able, willing, and seeking to work but who, despite 
serious efforts to obtain employment, remain imemployed. 
(b) In meeting the responsibilities under subsection (a), the Secre-
tary of Labor shall, as appropriate, fully utilize the authority provided 
under CETA and other relevant provisions of law to— 
(1) assure the availability of counseling, training, and other 
support activities necessary to prepare persons willing and seeking 
work for employment (including use of section 110 of CETA 
when necessary) ; 
(2) refer persons able, willing, and seeking to work to job 
opportunities in the private and public sectors through the existing 
public employment placement facilities and through the United 
States Employment Service of the Department of Labor, includ-
ing job opportunities in any positions created under programs 
established pursuant to sections 202, 204, and 205 of this Act; and 
(3) encourage flexi-time and part-time jobs for persons who are 
able, willing, and seeking employment but who are unable to 
work a standard workweek. 
(c) (1) To the extent that individuals aged sixteen and over and able, 
willing, and seeking to work are not and in the judgment of the Presi-
dent cannot be provided with private job opportunities or job oppor-
tunities under other programs and actions in existence, in accord 
with the goals and timetables set forth in the Employment Act of 
1946, the President shall, as may be authorized by law, establish 
reservoirs of public employment and private nonprofit employment 
projects, to be approved by the Secretary of Labor, through expansion 
of CETA and other existing employment and training projects or 
through such new programs as are determined necessary by the 
President or through both such projects and such programs. 
(2) New programs as may be authorized by law after the date of 
enactment of this Act referred to in paragraph (c)(1) — 
(A) shall not be put into operation earlier than two years after 
the enactment of this Act, nor without a finding by the President, 
transmitted to the Congress, that other means of employment are 
not yielding enough jobs to be consistent with attainment of the 
goals and timetables for the reduction of unemployment set forth 
in the Employment Act of 1946; 
( 
(B) shall be designed so that no workers from private employ-
ment are drawn into the reservoir projects thereunder; 
(C) shall be useful and productive jobs; 
(D) shall be mainly in the lower ranges of skills and pay, and 
toward this end the number of reservoir jobs under such new 
programs shall, to the extent practicable, he maximized in rela-
tionship to the appropriations provided for such jobs; 
(E) shall be targeted on areas of high unemployment and on 
individuals who are structurally unemployed; 
(F) shall be phased in by the President as necessary, in con-
junction with the employment goals under sections 3(a) (2) and 
4 (b) of the Employment Act of 1946. 
PUBLIC LAW 95-523—OCT. 27, 1978 
92 STAT. 1903 
(d) The Secretary, in carrying out the provisions of this section, Regulatioas. 
shall establish regulations providing for— 
(1) an initial determination of the job seeker's ability to be 
employed at certain types and duration of work, so that such 
individual may be appropriately referred to jobs, training, coun-
seling, and other supportive services; 
(2) compliance with the nondiscrimination provisions of this 
Act in accordance with section 401; 
Post, p. 1907. 
(3) appropriate eligibility criteria to determine the order of 
priority of access of any person to any new programs under 
sub::3ction (c) as may be authorized by law including but not 
necessarily limited to (A) household income, duration of unem-
ployment (not less than five weeks), and the number of people 
economically dependent upon such person; and (B) denial of 
access to any person refusing to accept or hold a job except for 
good cause, as determined by the Secretary of Labor, including 
refusal to accept or hold a job subject to reference under subsection 
(b) paragraph (2), in order to seek a reservoir project job under 
:,,; ! subsection (c) ; and 
(4) such administrative appeal procedures as may be appro-
priate to review the initial determination of the abilities of per-
sons willing, able, and seeking to work under paragraph (1) of 
this subsection and the employment need and eligibility under 
paragraph (3) of this subsection. 
CAPITAL FORMATION—^PRIVATE AND PUBLIC 
• 
HJ. 
SEC. 207. (a) The Congress finds that— 
15 USC 3117. 
(1) promotion of full employment and balanced growth is in 
itself a principal avenue to high and sustained rates of capital 
formation; 
(2) high rates of capital formation are necessary to ensure ade-
quate rates of capacity expansion and productivity growth, com-
pliance with governmental health, safety and environmental 
standards, and the replacement of obsolete production equipment; 
(3) the ability of our economy to compete successfully in 
international markets, the development of new technology, 
improved working conditions, expanding job opportunities, and 
an increasing standard of living depend on the availability of 
^ 
.i 
adequate capital at reasonable cost to commerce and industry; 
(4) an important goal of national policy shall be to remove 
obstacles to the free flow of resources into new investment, par-
ticularly those obstacles that hinder the creation and growth of 
smaller businesses because general national programs and pol-
icies to aid and stimulate private enterprise are not sufficient to 
deal with the special problems and needs of smaller businesses; 
and 
(5) while private business firms are, and should continue to be, 
the major source of investment, the investment activities of the 
^
^ 
Federal, State, and local governments play an important role 
in affecting the level of output, employment, and productivity 
and in achieving other national purposes, 
(b) The_ Economic Report shall include an Investment Policy Investment 
Report which shall, as appropriate, (1) review and assess existing Policy Report, 
Federal Government programs and policies which affect business inclusion, 
investment decisions, including, but not limited to, the relevant aspects 
92 STAT. 1904 
PUBLIC LAW 95-523—OCT. 27, 1978 
Assessment. 
Recommenda-
tions. 
Referral to 
congressional 
committee. 
15 use 1021 
note. 
of the tax code, Federal expenditure policy, Federal regulatory policy, 
international trade policy, and Federal support for research, devel-
opment, and diffusion of new technologies; (2) provide an assess-
ment of the levels of investment capital available, required by, and 
applied to small, medium and large business entities; (3) provide an 
analysis of current and foreseeable trends in the level of investment 
capital available to such entities; and (4) provide a description of 
programs and proposals for carrying out the policy set forth in section 
102(i). In addition, the Economic Report shall include an assessment 
of the effect of the overall economic policy environment and the rate 
of inflation on business investment. The President shall recommend in 
the President's Budget, as appropriate, new programs or modifica-
tions to improve existing programs concerned with private capital 
formation. The President shall also transmit to the Congress as part 
of the President's Budget such other recommendations as the President 
may deem necessary or desirable to achieve the policy as set forth 
in section 102(i). The Investment Policy Report, when transmitted 
to the Congress, shall be referred to the Joint Economic Committee. 
(c) The Economic Report referred to in subsection (b) shall 
review and assess Federal policies and programs which directly, 
or through grants-in-aid to State and local governments, or indirectly 
through other means, affect the adequacy, composition and effective-
ness of public investments, as a means of achieving the goals of this 
Act and the Employment Act of 1946. The President shall recom-
mend, as appropriate, new programs and policies or modifications to 
improve existing Federal programs affecting public investment. 
ijh -j'-u 
TITLE III—POLICIES AND PROCEDURES FOR 
CONGRESSIONAL REVIEW 
15 use 3131. 
Legislative 
action. 
STATEMENT OF PURPOSE 
SEC. 301. (a) The purposes of this title are to establish procedures 
for congressional review and action with respect to th"e Economic 
Report of the President (hereafter in this title referred to as the 
"Economic Report"), the report of the Board of Governors of the 
Federal Reserve System, and the other policies and provisions of 
this Act and the Employment Act of 1946. 
(b) The Congress shall initiate or develop such legislation as it 
deems necessary to implement proposals and objectives pursuant to 
this Act and the Employment Act of 1946 after such modification in 
such proposals at it deems desirable. Nothing in this title shall be 
construed to prevent the Congress or any of its committees from 
considering or initiating at any time legislative action in furtherance 
of the goals and purposes of this act. 
15 u s e 3132. 
Ante, pp. 1892, 
1893. 
COMMTTTEE REVIEW 
SEC. 302. (a) In conjunction with its review of the Economic 
Report, and the holding of hearings on the Economic Report under 
the Employment Act of 1946, the Joint Economic Committee shall 
review and analyze the short-term and medium-term goals set forth 
in the Economic Report pursuant to sections 3(a)(2) and 4(b) of 
the Employment Act of 1946 (as amended by sections 103 and 104 
of this Act). 
PUBLIC LAW 95-523—OCT. 27, 1978 
92 STAT. 1905 
(b) The Joint Economic Committee shall hold hearings on the Hearings. 
Economic Eeport for the purpose of receiving testimony from Mem-
bers of the Congress, and such appropriate representatives of Federal 
departments and agencies, the general public, and interested groups 
as the joint committee deems advisable. The joint committee shall also 
consider the comments and views on the Economic Report which are 
vs. jg 
received from State and local officials. 
(c) Within thirty days after receipt by the Congress of the Eco- Report. 
nomic Report, each standing committee of the Senate and the House 
of Representatives, each other committee of the Senate and the House 
of Representatives which has legislative jurisdiction, and each joint 
committee of the Congress may submit to the Joint Economic Com-
mittee, for use by the Joint Economic Committee in conducting its 
review and analysis under subsection (a), a report containing the views 
and recommendations of the submitting committee with respect to 
aspects of the Economic Report which relate to its jurisdiction. 
(d) On or before March 15 of each year, a majority of the members Report, 
of the Joint Economic Committee shall submit a report to the Com-
mittees on the Budget of the Senate and the House of Representatives. 
, t 
Such report shall include findings, recommendations, and any appro- 
t^Ui 
priate analyses with respect and in direct comparison to each of the 
short-term and medium-term goals set forth in the Economic Report. 
REVIEW o r ECONOMIC REPORT AS PART OF CONGRESSIONAL BUDGET PROCESS 
SEC. 303. (a) Section 301(c) of the Congressional Budget Act of 
1974 is amended— 
31 USC 1322. 
(1) by inserting after the first sentence the following new 
sentences: "Each of the recommendations as to short-term and 
medium-term goals set forth in the report submitted by the mem-
I 
bers of the Joint Economic Committee under subsection (c) may 
be considered by the Committee on the Budget of each House as 
part of its consideration of such concurrent resolution, and its 
report may reflect its views thereon, and on how the estimates of 
revenues and levels of budget authority and outlays set forth in 
such concurrent resolution are designed to achieve any goals it is 
;, 
recommending."; and 
(2) by inserting "also" after "shall" in the last sentence. 
(b) Section 305 (a) of such Act is amended— 
31 USC 1326. 
^ 
(1) by inserting before the periodat the end of the first sentence 
of paragraph (2) a comma and "plus such additional hours of 
debate as are consumed pursuant to paragraph (3)"; 
(2) by redesignating paragraphs (3) through (6) as para-
graphs (6) through (9) respectively; and 
(3) by inserting after paragraph (2) the following new 
paragraphs: 
"(3) Following the presentation of opening statements on the first 
concurrent resolution on the budget for a fiscal year by the chairman 
and ranking minority member of the Committee on the Budget of 
the House, there shall be a period of up to four hours for debate on 
economic goals and policies. 
"(4) Only if a concurrent resolution on the budget reported by the 
Committee on the Budget of the House sets forth the economic goals 
" 
'' 
(as described in sections 3(a) (2) and 4(b) of the Full Employment 
Act of 1946) which the estimates, amounts, and levels (as described Ante, pp. 1892, 
in section 301 (a)) set forth in such resolution are designed to achieve, 1893. 
39-194 O—80—pt. 2 
40 : QL3 
92 STAT. 1906 
PUBLIC LAW 95-523—OCT. 27, 1978 
shall it be in order to offer to such resolution an amendment relating 
to such goals, and such amendment shall be in order only if it also 
proposes to alter such estimates, amounts, and levels in germane 
fashion in order to be consistent with the goals proposed in such 
amendment.". 
31 use 1326. 
(c) Section 305(b) of such Act is amended— 
' <
• 
(1) by redesignating paragraphs (3) and (4) as paragraphs 
f
^
' ^ (6) and (7), respectively; and 
• > ^ ^ 
(2) by inserting after paragraph (2) the following new 
paragraphs: 
"(3) Following the presentation of opening statements on the first 
concurrent resolution on the budget for a fiscal year by the chairman 
and ranking minority member of the Committee on the Budget of the 
Senate, there shall be a period of up to four hours for debate on eco-
nomic goals and policies. 
"(4) Only if a concurrent resolution on the budget reported by the 
• -'^s 
Committee on the Budget of the Senate sets forth the economic goals 
(as described in sections 3(a) (2) and 4(b) of the Employment Act of 
Ante, pp. 1892, 
1946), which the estimates, amounts, and levels (as described in section 
1893. 
301 (a)) set forth in such resolution are designed to achieve, shall it be 
in order to offer to such resolution an amendment relating to such 
goals, and such amendment shall be in order only if it also proposes 
to alter such estimates, amounts, and levels in germane fashion in order 
to be consistent with the goals proposed in such amendment.". 
MODIFICATION OF TIMETABLE FOR ACHIEVING UNEMPLOYMENT GOALS 
SEC. 304. (a) Section 301(a) of the Congressional Budget Act of 
31 use 1322. 
1974 is amended— 
(1) by striking out "and" at the end of paragraph (5) ; and 
(2) by renumbering paragraph (6) as (7) and inserting after 
, y- paragraph (5) the following new paragraph: 
.H . 
"(6) if required by subsection (e), the calendar year in which, 
•
j > 
in the opinion of the Congress, the goals for reducing unemploy-
ment set forth in section 4(b) of the Employment Act of 1946 
should be achieved; and", 
(b) Section 301 of such Act is amended by adding at the end thereof 
the following new subsection: 
• 
It 
"(e) 
ACHIEVEMENT OF GOALS FOR REDUCING UNEMPLOYMENT.— 
"(1) If, pursuant to section 4(c) of the Employment Act of 
Ante, p. 1893. 
1946, as amended, the President recommends in the Economic 
Report that the goals for reducing unemployment set for in sec-
tion 4(b) of such Act be achieved in a year after the close of the 
five-year period prescribed by such subsection, the first concurrent 
resolution on the budget for the fiscal year beginning after the 
date on which such Economic Report is received by the Congress 
may set forth the year in which, in the opinion of the Congress, 
such goals can be achieved. 
"(2) After the Congress has expressed its opinion pursuant 
to paragraph (1) as to the year in which the goals for reducing 
unemployment set forth in section 4(b) of the Employment Act 
of 1946, as amended, can be achieved, if, pursuant to section 4(e) 
Ante, p. 1894. 
of such Act, the President recommends in the Economic Report 
that such goals be achieved in a year which is different from the 
. i 
year in which the Congress has expressed its opinion that such 
goals should be achieved, either in its action pursuant to para-
PUBLIC LAW 95-523—OCT. 27, 1978 
92 STAT. 1907 
graph (1) or its most recent action pursuant to this paragraph, 
the first concurrent resolution on the budget for the fiscal year 
" 
beginning after the date on which such Economic Report is 
received by the Congress may set forth the year in which, in the 
opinion of the Congress, such goals can be achieved. 
"(3) It shall be in order to amend the provision of such resolu-
tion setting forth such year only if the amendment thereto also 
proposes to alter the estimates, amounts, and levels (as described 
in section 301 (a)) set forth in such resolution in germane fashion 
31 USC 1322. 
in order to be consistent with the economic goals (as described in 
sections 3(a)(2) and 4(b) of the Employment Act of 1946) Ante, ppl 1892, 
which such amendment proposes can be achieved by the year 1893. 
specified in such amendment.". 
EXERCISE OF RULEMAKING POWERS 
% 
SEC. 305. (a) The Provisions of this title and the amendments 15 USC 3133. 
made by such provisions are enacted by the Congress— 
(1) as an exercise of the rulemaking power of the House of 
Representatives ana the Senate, respectively, and as such they 
shall be considered as part of the rules of each House, respectively, 
or of that House to which they specifically apply, and such rules 
shall supersede other rules only to the extent that they are incon-
sistent therewith; and 
(2) with full recognition of the constitutional right of either 
House to change such rules (so far as relating to such House), 
at any time, in the same manner and to the same extent as in the 
case of any other rule of such House. 
TITLE IV—GENERAL PROVISIONS 
NONDISCRIMINATION 
Noncompliance, 
notification. 
SEC 401. (a) No person in the United States shall on the ground of 15 USC 3151. 
sex, age, race, color, religion, national origin or handicap be excluded 
from participation in, be denied the benefits of, or be subjected to 
discrimination under any piogram or activity funded pursuant to 
the implementation of this Act, including membership in any struc-
ture created by this Act. 
(b) Whenever the Secretary of Labor determines that a recipient 
of funds made available pursuant to this Act has failed to comply 
with subsection (a), or an applicable regulation, the Secretary shall 
notify the recipient of the noncompliance and shall request such 
recipient to secure compliance. If within a reasonable period of time. Remedies 
not to exceed sixty days, the recipient fails or refuses to secure com-
pliance, the Secretary of Labor may— 
(1) refer the matter to the Attorney General with a recom-
mendation that an appropriate civil action be instituted; 
(2) exercise the powers and functions provided by title VI of 
the Civil Rights Act of 1964 (42 IJ.S.C. 2000d et seq.) or 
(3) take such other action as may be provided by 1 aw. 
(c) When a matter is referred to the Attorney General pursuant 
to subsection (b), or whenever the Attorney General has reason to 
believe that a recipient is engaged in a pattern or practice in violaiion 
of the provisions of this section, the Attorney General may bring a 
civil action in the appropriate United States district court for any 
and all appropriate relief. 
92 STAT. 1908 
PUBLIC LAW 95-523—OCT. 27, 1978 
Enforcement, 
(d) To assist and evaluate the enforcement of this section, and the 
analysis. 
broader equal employment opportunity policies of this Act, the Secre-
tary of Labor shall include, in the annual Employment and Training 
Post, p. 2012. 
Eeport of the President provided under section 705(a) of CETA, 
a detailed analysis of the extent to which the enforcement of this 
section achieves positive results in both the quantity and quality of 
jobs, and for employment opportunities generally. 
> 
> 
?;; 
• " 
LABOR 
STANDARDS 
15 use 3152. 
SEC. 402. (a) Any new program enacted and funded pursuant to 
the implementation of this Act shall, subject to any limitations on 
maximum annual compensation as may be provided in the law author-
izing such programs, provide that persons employed are paid equal 
wages for equal work, and that such policies and programs create a 
net increase in employment through work that would not otherwise 
.!;<:>. :;*. 
be done or are essential to fulfill national priority purposes. 
(b) Any person employed in any reservoir project enacted and 
funded pursuant to the implementation of section 206(c) (1), or in 
any other job created pursuant to implementation of this Act, shall, 
subject to any limitations on maximum annual compensation as may 
be provided in the law authorizing such programs, be paid not less 
than the pay received by others performing the same type of work 
for the same employer, and in no case less than the minimum wage 
29 use 201. 
under the Fair Labor Standards Act of 1938. No person employed m 
any reservoir project enacted and funded pursuant to implementation 
of section 206(c) (1) shall perform work of the type to which the 
Davis-Bacon Act (40 U.S.C. 276a—^276a-5) applies, except as other-
wise may be specifically authorized by law. 
(c) Any recommendation by the President for legislation to imple-
ment any program enacted pursuant to the provisions of this Act, 
requiring the use of funds under this Act, and submitted pursuant to 
the requirements of this Act, shall contain appropriate wage provi-
I ?: ?!' 
sions based upon existing wage standard legislation. 
Approved October 27, 1978. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 95-895, Pt. I (Comm. on Education and Labor) and Pt. II 
(Comm. on Rules). 
SENATE REPORTS: No. 95-1177 accompanying S. 50 (Comm. on Human Resources) 
and (Comm. on Banking, Housing, and Urban Affairs). , 
CONGRESSIONAL RECORD, Vol. 124 (1978): 
Mar. 8, 9, 15, 16, considered and passed House. 
Oct. 10, 11, 13, considered and passed Senate, amended. 
Oct. 15, House agreed to Senate amendment. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 14, No. 43: 
Oct. 27, Presidential statement.