PRIA, Government Policy, Made Personal

Summary

Lets the President start or speed up public works in areas with big job problems or in Commerce-designated redevelopment zones by giving federal money to the agencies that build projects or that run grant programs. "Eligible areas" means places the Secretary of Labor calls substantially unemployed for at least nine of the last twelve months, and places the Secretary of Commerce calls redevelopment areas under section 2504. The President can use up to $900,000,000 for this, and at least $300,000,000 must go to Commerce redevelopment areas. Money is paid out by the usual federal agencies under the laws that normally govern those grants, but those agencies can ignore rules about splitting money among states or overall grant caps. Federal help can cover up to 50 percent of a project’s cost, or up to 75 percent if the state or locality cannot afford more. The President must set rules that weigh need, unemployment severity and length, family incomes, and underemployment. Funds may only go to projects that can start fast, meet essential public needs, finish a large part within 12 months, cut local unemployment, and fit local plans. No more than 10 percent of the total may go to projects in any one state. Labor must use the criteria in 29 C.F.R. 6.3 as of May 1, 1962, to find high-unemployment areas.

Title 42, §2642

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

(a)Eligible areas

For the purposes of this section the term “eligible area” means—

(1)those areas which the Secretary of Labor designates each month as having been areas of substantial unemployment for at least nine of the preceding twelve months; and

(2)those areas which are designated by the Secretary of Commerce under subsections (a) and (b) of section 2504 of this title as “redevelopment areas”.

(b)Authority to initiate and accelerate projects; allocation of funds

The President is authorized to initiate and accelerate in eligible areas those Federal public works projects which have been authorized by Congress, and those public works projects of States and local governments for which Federal financial assistance is authorized under provisions of law other than this chapter, by allocating funds appropriated to carry out this section— (1)

(2)to the heads of the departments, agencies, and instrumentalities of the Federal Government responsible for the administration of laws authorizing Federal financial assistance to public works projects of State and local governments.

(c)Grants-in-aid; law governing; amount of Federal contributions

All grants-in-aid made from allocations made by the President under this section shall be made by the head of the department, agency, or instrumentality of the Federal Government administering the law authorizing such grants, and, except as otherwise provided in this subsection, shall be made in accordance with all of the provisions of such law except (1) provisions requiring allocation of funds among the States, and (2) limitations upon the total amount of such grants for any period. Notwithstanding any provisions of such law requiring the Federal contribution to the State or local government involved to be less than a fixed portion of the cost of a project, grants-in-aid may be made under authority of this section which bring the total of all Federal contributions to such project up to 50 per centum of the cost of such project, or up to 75 per centum of the cost of such project if the State or local government does not have economic and financial capacity to assume all of the additional financial obligations required.

(d)Authorization of appropriations

There is authorized to be appropriated not to exceed $900,000,000 to be allocated by the President in accordance with subsection (b) of this section, except that not less than $300,000,000 shall be allocated for public works projects in areas designated by the Secretary of Commerce as redevelopment areas under subsection (b) of section 2504 of this title.

(e)Rules and regulations; considerations

The President shall prescribe rules, regulations, and procedures to carry out this section which will assure that adequate consideration is given to the relative needs of eligible areas. In prescribing such rules, regulations, and procedures the President shall consider among other relevant factors (1) the severity of the rates of unemployment in the eligible areas and the duration of such unemployment and (2) the income levels of families and the extent of underemployment in eligible areas.

(f)Restrictions on allocated funds

Funds allocated by the President under this section shall be available only for projects—

(1)which can be initiated or accelerated within a reasonably short period of time;

(2)which will meet an essential public need;

(3)a substantial portion of which can be completed within twelve months after initiation or acceleration;

(4)which will contribute significantly to the reduction of local unemployment;

(5)which are not inconsistent with locally approved comprehensive plans for the jurisdiction affected, wherever such plans exist.

(g)Limit on allocations available for projects in any one State

Not more than 10 per centum of all amounts allocated by the President under this section shall be made available for public works projects within any one State.

(h)Criteria determining substantial unemployment

The criteria to be used by the Secretary of Labor in determining areas of substantial unemployment for the purposes of paragraph (1) of subsection (a) of this section shall be the criteria established in section 6.3 of title 29 of the Code of Federal Regulations as in effect May 1, 1962.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 2504 of this title, referred to in subsecs. (a) and (d), was omitted from the Code.

Executive Documents

Executive Order No. 11049 Ex. Ord. No. 11049, Sept. 14, 1962, 27 F.R. 9203, which provided for implementation of public works acceleration program, was revoked by Ex. Ord. No. 12553, Feb. 25, 1986, 51 F.R. 7237.

§2642 Acceleration of Public Works