42 U.S.C. § 6707

Priority and amounts of projects

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(a) Allocation of appropriated funds; Indian tribes and Alaska Native villages; prior applications; unemployment ratio; limits on grants for any one State; territoriesThe 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) Local government projects; energy conservation; endorsement of project by general purpose local government; projects requested by school districts(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) Unemployment rates; priority; States receiving minimum allocations

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) Priorities for projects in State or localities with two or more projects

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) Community or neighborhood basis of unemployment rates

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) Repealed. Pub. L. 95–28, title I, § 107(e), May 13, 1977, 91 Stat. 119(g) Criteria for requests

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) Applications not submitted on or before December 23, 1976; grants prohibited; exceptions(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) Substitution of projects to alleviate drought or other emergency or disaster-related conditions or damage

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) Private nonprofit health care or rehabilitation facilities

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.

(Pub. L. 94–369, title I, § 108, July 22, 1976, 90 Stat. 1000; Pub. L. 95–28, title I, §§ 105–107, May 13, 1977, 91 Stat. 117, 118.)Editorial NotesAmendments

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 DocumentsTermination 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.

Notes of Decisions

Cited in 11 cases, 1977–1982 · leading case: Fullilove v. Klutznick, 448 U.S. 448 (1980).

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Fullilove v. Klutznick, 448 U.S. 448 (1980). · cites it 8× “1000 , 42 U. S. C. § 6707 . [12] 90 Stat. 1001 , 42 U.”

Isiah Fredericks v. Juanita Kreps, Sec'y of the Dep't of Com., 578 F.2d 555 (5th Cir. 1978). · cites it 13× “2 Priorities for grants were established both by statute, 42 U.S.C.A. § 6707 (1977), and by EDA-promulgated regulations,- 13 C.”

Isiah Fredericks v. Juanita Kreps, Sec'y of the Dep't of Com., Defendants, 571 F.2d 1316 (5th Cir. 1978). · cites it 12× “” 1 Congress appropriated $2 billion for expenditure under the 1976 Act which was to be distributed by EDA according to priorities and rankings established by statute, 42 U.S.C. § 6707 (1976), and regulations implemented by EDA, 13 C.”

City of Grand Rapids v. Richardson, 429 F. Supp. 1087 (W.D. Mich. 1977). · cites it 4× “2 42 U.S.C.A. § 6707 (c), (d). Plaintiff, the City of Grand Rapids, commenced this action challenging the Economic Development Administration’s (EDA) treatment of plaintiff’s grant applications under the above Act.”

Clark v. Richardson, 431 F. Supp. 105 (D.N.J. 1977). · cites it 7× “On January 10, 1977 plaintiffs filed an amended complaint dropping as defendants any state defendants who were classified in the 30% category, which definition is explained infra, under the Local Public Works Act, see Section 108(d) of the Act, 42 U.S.C. § 6707 (d), and adding…”

City of Benton Harbor v. Richardson, 429 F. Supp. 1096 (W.D. Mich. 1977). · cites it 2× “2 42 U.S.C.A. § 6707 (c), (d). Plaintiff, the City of Benton Harbor, challenged the Economic Development Administration’s (EDA) treatment of plaintiff’s grant application under the above Act.”

Lewis v. Richardson, 428 F. Supp. 1164 (D. Mass. 1977). · cites it 2× “Secondly, EDA asserts that since 42 U.S.C. § 6707 (c) requires that the Secretary insure the “validity and standardization”' of unemployment rates furnished with applications, Congress must have intended that the Secretary’s authority include the same responsibility over raw…”

Wright Farms Constr., Inc. v. Kreps, 444 F. Supp. 1023 (D. Vt. 1977). “To make certain the act was implemented as rapidly as possible, 42 U.S.C. § 6707 (h)(1) provides that unless otherwise indicated, the Secretary of Commerce acting through EDA was not to consider, or approve, or make a grant for any project for which the application was not…”

Rhode Island Chapter, Associated Gen. Contractors of Am., Inc. v. Kreps, 450 F. Supp. 338 (D.R.I. 1978). “42 U.S.C. § 6707 (e) (1976). The figures of minority unemployment in the national economy generally (13.”

Va. Chapter, Associated Gen. Contractors v. Kreps, 444 F. Supp. 1167 (W.D. Va. 1978). “To insure speedy implementation of Round II, Congress added 42 U.S.C. § 6707 (h)(1) to the PWEA, which provides: 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…”

South Florida Chapter of the Associated Gen. Contractors of Am., Inc. v. Metro. Dade Cnty., 552 F. Supp. 909 (S.D. Fla. 1982). “The next consideration is whether there is a reasonable relationship between the 100% set aside and the percentage of Blacks in the local population, i.”

— 42 U.S.C. § 6707(b)(4) — 1 case

Isiah Fredericks v. Juanita Kreps, Sec'y of the Dep't of Com., 578 F.2d 555 (5th Cir. 1978). “2 Priorities for grants were established both by statute, 42 U.S.C.A. § 6707 (1977), and by EDA-promulgated regulations,- 13 C.”

— 42 U.S.C. § 6707(h) — 1 case

— 42 U.S.C. § 6707(h)(1) — 1 case

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