Title 42The Public Health and WelfareRelease 119-73

§6707 Priority and amounts of projects

Title 42 › Chapter CHAPTER 80— - PUBLIC WORKS EMPLOYMENT › Subchapter SUBCHAPTER I— - LOCAL PUBLIC WORKS › § 6707

Last updated Apr 6, 2026|Official source

Summary

The Secretary must divide the money made available after May 13, 1977 in a few fixed ways. First, 2.5% is set aside only for public works grants to Indian tribes and Alaska Native villages. Next, $70,000,000 is set aside only to pay grants for projects whose applications were filed after July 22, 1976 and before December 24, 1976 but were missed or rejected only because of an error by a U.S. officer or employee. After those set asides, 65% of the remaining money is split among States by each State’s share of the nation’s unemployed people, and 35% is split among States with an average unemployment over 6.5% based on how severe their unemployment is. No State may get less than 0.75% or more than 12.5% of funds for local projects, and Guam, the Virgin Islands, American Samoa, and the Trust Territory of the Pacific Islands must get at least 0.5% in total. A State whose unemployment data was first converted in 1976 must not get a smaller share than it did from earlier funds. When making grants, the Secretary must give priority to local government projects. Building projects that save energy should be favored. Projects backed by a general-purpose local government, and school district projects, get priority too. If the national unemployment rate has been at least 6.5% for the last 12 months, applications from places with unemployment above the national rate must be fast-tracked, then those above 6.5% get next priority. Applicants that file more than one project must rank their projects. A local government may use the unemployment rate of a neighborhood for a project in that neighborhood. The Secretary should help applicants fit requests into local or regional plans. The Secretary can accept late applications from the Trust Territory, tribes, and Alaska Native villages, or others if not enough timely applications were filed. The Secretary may let a grantee swap in new projects if the total federal cost does not exceed the original grant, the new work meets required conditions, and it helps with drought or other emergencies. Finally, after September 30, 1977 the Secretary may make grants for construction or improvement of health or rehabilitation facilities run by private nonprofit groups.

Full Legal Text

Title 42, §6707

The Public Health and Welfare — Source: USLM XML via OLRC

(a)The Secretary shall allocate funds appropriated after May 13, 1977, under section 6710 of this title as follows:
(1)2½ per centum of such funds shall be set aside and shall be expended only for grants for public works projects under this chapter to Indian tribes and Alaska Native villages. None of the remainder of such funds shall be expended for such grants to such tribes and villages.
(2)After the set aside required by paragraph (1) of this subsection, $70,000,000 shall be set aside and expended only for grants for any public works project the application for a grant for which was made under this chapter after July 22, 1976, and before December 24, 1976, and which application was not received, was not considered, or was rejected solely because of an error by an officer or employee of the United States. Any allocation made to an applicant pursuant to regulation shall be reduced by the amount of any grant made to such applicant under this paragraph.
(3)After the set asides required by paragraphs (1) and (2) of this subsection, 65 per centum of such funds shall be allocated among the States on the basis of the ratio that the number of unemployed persons in each State bears to the total number of unemployed persons in all the States and 35 per centum of such funds shall be allocated among those States with an average unemployment rate for the preceding twelve-month period in excess of 6.5 per centum on the basis of the relative severity of unemployment in each such State, except that (A) no State shall be allocated less than three-quarters of one per centum or more than 12½ per centum of such funds for local public works projects within such State, except that in the case of Guam, the Virgin Islands, American Samoa, and the Trust Territory of the Pacific Islands, not less than one-half of one per centum in the aggregate shall be granted for such projects in all four of these jurisdictions, and (B) no State whose unemployment data was converted for the first time in 1976 to the benchmark data of the current population survey annual average compiled by the Bureau of Labor Statistics shall receive a percentage of such funds less than the percentage of funds allocated to such State under this chapter from funds appropriated to carry out this chapter prior to May 13, 1977.
(b)(1)In making grants under this chapter, the Secretary shall give priority and preference to public works projects of local governments.
(2)In making grants for projects for construction, renovation, repair, or other improvement of buildings, the Secretary shall also give consideration as between such building projects to those projects which will result in conserving energy, including, but not limited to, projects to redesign and retrofit existing public facilities for energy conservation purposes, and projects using alternative energy systems.
(3)In making grants under this chapter, the Secretary shall also give priority and preference to any public works project requested by a State or by a special purpose unit of local government which is endorsed by a general purpose local government within such State.
(4)A project requested by a school district shall be accorded the full priority and preference to public works projects of local governments provided in paragraph (1).
(c)In making grants under this chapter, if for the twelve most recent consecutive months, the national unemployment rate is equal to or exceeds 6½ per centum, the Secretary shall (1) expedite and give priority to applications submitted by States or local governments having unemployment rates for the twelve most recent consecutive months in excess of the national unemployment rate and (2) shall give priority thereafter to applications submitted by States or local governments having unemployment rates for the twelve most recent consecutive months in excess of 6½ per centum, but less than the national unemployment rate. Information regarding unemployment rates may be furnished either by the Federal Government, or by States or local governments, provided the Secretary determines that the unemployment rates furnished by States or local governments are accurate, and shall provide assistance to States or local governments in the calculation of such rates to insure validity and standardization. The Secretary may waive the application of the first sentence of this subsection to any State which receives a minimum allocation pursuant to paragraph (3) of subsection (a) of this section.
(d)Whenever a State or local government submits applications for grants under this chapter for two or more projects, such State or local government shall submit as part of such applications its priority for each such project.
(e)The unemployment rate of a local government shall, for the purposes of this chapter, and upon request of the applicant, be based upon the unemployment rate of any community or neighborhood (defined without regard to political or other subdivisions or boundaries) within the jurisdiction of such local government, except that any grant made to a local government based upon the unemployment rate of a community or neighborhood within its jurisdiction must be for a project to be constructed in such community or neighborhood.
(f)
(g)States and local governments making application under this chapter should (1) relate their specific requests to existing approved plans and programs of a local community development or regional development nature so as to avoid harmful or costly inconsistencies or contradictions; and (2) where feasible, make requests which, although capable of early initiation, will promote or advance longer range plans and programs.
(h)(1)Except as provided in paragraph (2) of this subsection, the Secretary shall not consider or approve or make a grant for any project for which any application was not submitted for a grant under this chapter on or before December 23, 1976.
(2)The Secretary may receive applications for grants for projects under this chapter—
(A)from the Trust Territory of the Pacific Islands;
(B)from Indian tribes and Alaska Native villages;
(C)from any applicant to use any allocation which may be made pursuant to regulation, to the extent necessary to expend such allocation, if a sufficient number of applications were not submitted on or before December 23, 1976, to use such allocation.
(i)The Secretary may allow any applicant which has received a grant for a project under this chapter to substitute one or more projects for such project if in the judgment of the Secretary (1) the Federal cost in the aggregate of such substituted project or projects does not exceed such grant, (2) such substituted project or projects comply with section 6705(d) of this title, and (3) such substituted project or proj­ects will in fact aid in alleviating drought or other emergency or disaster-related conditions or damage. section 6705(a) of this title shall not apply to projects substituted under this subsection.
(j)Notwithstanding subsection (h)(1) of this section, grants may be made from appropriations made under section 6710 of this title after September 30, 1977, to States or local governments for projects for the construction, renovation, repair, or other improvements of health care or rehabilitation facilities owned and operated by private nonprofit entities.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1977—Subsec. (a). Pub. L. 95–28, § 105, added par. (1) and introductory provisions preceding par. (1), par. (2), and, in par. (3), introductory provisions preceding cl. (A) and cl. (B), designated existing provisions as cl. (A) of par. (3) and, in such cl. (A) as so designated, inserted reference to Trust Territory of the Pacific Islands and substituted “three-quarters of one percentum” for “one-half of one percentum” and “of such funds” for “of all amounts appropriated to carry out this subchapter”. Subsec. (b). Pub. L. 95–28, § 106, designated existing provisions as par. (1) and added pars. (2) to (4). Subsec. (c). Pub. L. 95–28, § 107(a), (b), substituted “twelve most recent consecutive months” for “three most recent consecutive months” and authorized the Secretary to waive the application of the first sentence of the subsection to any State which receives a minimum allocation pursuant to subsec. (a)(3) of this section. Subsec. (d). Pub. L. 95–28, § 107(c), substituted provisions directing State or local governments that submit two or more projects to submit as part of their applications the priorities assigned to each project for provisions directing that seventy percentum of all amounts appropriated to carry out this chapter be granted for public works projects submitted by State or local governments given priority under clause (1) of the first sentence of subsec. (c) of this section, with the remaining thirty percentum available for public works projects submitted by State or local governments in other classifications of priority. Subsec. (e). Pub. L. 95–28, § 107(d), substituted “to be constructed in such community or neighborhood” for “of direct benefit to, or provide employment for, unemployed persons who are residents of that community or neighborhood”. Subsec. (f). Pub. L. 95–28, § 107(e), struck out subsec. (f) which directed that, in determining the unemployment rate of a local government for purposes of this section, the unemployment in those adjoining areas from which the labor force for such project might be drawn were to be taken into consideration. Subsecs. (h) to (j). Pub. L. 95–28, § 107(f), added subsecs. (h) to (j).

Executive Documents

Termination of Trust Territory of the Pacific Islands For termination of Trust Territory of the Pacific Islands, see note set out preceding section 1681 of Title 48, Territories and Insular Possessions.

Reference

Citations & Metadata

Citation

42 U.S.C. § 6707

Title 42The Public Health and Welfare

Last Updated

Apr 6, 2026

Release point: 119-73