[Budget of the United States Government]
[IV. Preparing For the 21st Century]
[7. Strengthening the American Community]
[From the U.S. Government Publishing Office, www.gpo.gov]


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                7.  STRENGTHENING THE AMERICAN COMMUNITY

  ----------------------------------------------------------------------




  We need to provide the same encouragement to invest in Appalachia, Native American reservations, the
Mississippi Delta, and the inner cities that we provide today to invest in new markets overseas ... It's good
for business, it's good for America's growth, and it's the right thing to do.

                                       President Clinton
                                      August 1999


  ----------------------------------------------------------------------
  President Clinton took office in 1993 determined to rebuild the 
American economy. In February of 2000, the economy is poised to enter 
the longest period of economic expansion in recorded history. For many 
Americans, the past seven years have meant opportunity and prosperity: 
more than twenty million new jobs have been created; real wages have 
continued to rise and the number of people who own homes has reached an 
all-time high. However, there are still some communities which have not 
been lifted up by this historic wave of economic expansion. In these 
areas, unemployment is still too high, economic development is still too 
weak, and the opportunity to build a better life is limited.
  Because the President believes that ``a Nation that lives as a 
community must value all its communities,'' he is committed to new and 
renewed efforts to promote an agenda of opportunity and responsibility 
and generate growth in these areas. The guiding principle is that the 
public sector can provide incentives to attract private sector 
investment, creating partnerships that tap the potential for growth, 
profit, and economic opportunity in distressed areas. Proposals to 
expand both the New Markets and the Empowerment Zone/Enterprise 
Community Initiatives serve as the centerpieces of this year's 
Administration efforts to foster the economic development of America's 
neediest communities.
  At the start of his first term, the President proposed, and worked 
with Congress to pass, legislation creating Empowerment Zones (EZs) and 
Enterprise Communities (ECs) to encourage private sector investments in 
underserved areas. These efforts also established the Community 
Development Financial Institutions Fund to build a network of 
institutions to facilitate lending, including mortgage financing to 
first-time home buyers and commercial loans to small businesses.
  The New Markets Initiative in its expanded form will leverage even 
more private sector investment as part of the President's overall 
community development effort. Using tax credits, loan guarantees, 
private investment institutions, universities, and technical expertise 
for small business, this initiative offers the potential to connect 
residents of distressed neighborhoods to the jobs and opportunities of 
the regional marketplace, and replace economic distress with 
opportunity.
  In addition to the New Markets Initiative, the Administration has been 
committed to strengthening America's communities through the Empowerment 
Zone/Enterprise Community Initiative. Along with more private 
investment, the Empowerment Zone/Enterprise Community Initiative has 
helped create thousands of jobs that are now filled by those who have 
traditionally lacked access to economic opportunity. The initiative has 
also provided job training and educational opportunities for nearly 
45,000 residents of EZs/ECs. Additionally, the program has helped create 
more affordable housing opportunities; allowed communities to address 
important public safety, infrastructure and environmental concerns; 
provided social services including affordable health care, child care, 
and youth development

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programs; and, encouraged investment in New Markets areas.
  Many Native American communities have not taken part in this wave of 
economic prosperity. High unemployment, lack of physical infrastructure, 
remote locations, and lack of access to technology all contribute to the 
challenges facing Indian Country. The Administration will work with 
Tribes, on a government-to-government basis, to help this generation and 
future generations of Native Americans receive greater opportunities. 
With these goals in mind, the budget includes significant funding 
increases for Native American communities in areas including health 
care, education, economic development, and law enforcement.

Jobs and Economic Development

  The budget builds upon ongoing efforts to encourage economic growth in 
America's distressed communities through three complementary efforts: 
the New Markets Initiative; the EZ/EC program; and, the Community 
Development Financial Institutions Fund (CDFI).

  The New Markets Initiative: The New Markets Initiative, for which 
Congress expressed a measure of support last year by funding $39.5 
million (contingent upon authorization) of the Administration's request, 
is expanded to a total of $248 million. It includes three new elements: 
a $15 million microenterprise initiative for investments and support of 
microentrepreneurs, Program for Investment in Microentrepreneurs; a $5 
million university partnerships initiative; and, $30 million to make 
banking more affordable and accessible to low-income communities. 
Qualifying Tribes or Tribal consortia are eligible for these programs.
  The New Markets Tax Credit: To help spur $15 billion in new 
          equity capital for a range of private investment vehicles 
          serving distressed communities, a 25-percent tax credit is 
          proposed, more than doubling last year's proposal, at a cost 
          of $5 billion over 10 years. Eligible entities will include 
          community development banks, community-oriented equity funds, 
          and other new investment programs created by this initiative. 
          A wide range of businesses can be financed by these investment 
          funds, including inner-city shopping centers and retail 
          stores, small technology firms, manufacturing facilities and 
          incubators, and data management facilities.
  America's Private Investment Companies (APICs): APICs will 
          encourage private investment in this country's untapped 
          markets by providing loan guarantees to the debt issued by 
          these funds, administered by the Department of Housing and 
          Urban Development (HUD) in consultation with the Small 
          Business Administration (SBA). Private investment companies 
          that target portfolios of larger businesses relocating to or 
          expanding in economically distressed inner-city and rural 
          areas will be eligible for loan guarantees. To be licensed, 
          APICs must raise a substantial amount of private capital 
          managed by staff with a balance of experience in private 
          investing and in community development. Last year, APICs 
          received $20 million subject to enactment of authorizing 
          legislation. The budget proposes $37 million.
  New Markets Venture Capital (NMVCs): New Markets Venture 
          Capital Firms invest in smaller growth companies that can also 
          benefit from expert management assistance. NMVCs match equity 
          of private investors with Government-guaranteed debt and 
          technical assistance funding to cultivate the growth of 
          smaller firms. Last year, NMVCs received $15 million in 
          appropriations. The budget proposes $52 million.
  Program for Investment in Microentrepreneurs (PRIME): This 
          initiative will provide $15 million to provide technical 
          assistance grants to microenterprise intermediaries to assist 
          low-income and disadvantaged entrepreneurs. Microenterprises 
          are very small businesses that typically have fewer than 10 
          employees and generally lack access to conventional loans, 
          equity, or other banking services.
  BusinessLINC: The Vice President, along with a number of 
          CEO's, launched BusinessLINC in December 1998 to encourage 
          learning, investment, networking, and collaboration between 
          large and small businesses, in order to accelerate the

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          growth of businesses in economically distressed areas. The 
          budget proposes $6.6 million in additional funding for local 
          BusinessLINC coalitions that match large and small firms, and 
          provide supportive services. Of this amount, $1.25 million 
          will be used to develop appropriate BusinessLINC connections 
          in Indian Country.
  University Partnerships: Another new element of the New 
          Markets Initiative includes $5 million, from HUD, for a pilot 
          project to provide grants to 10 to 12 business and law schools 
          to institutionalize their role in local economic development, 
          through a range of activities including convening discussions 
          on community needs, identifying local assets, formulating 
          strategies, and organizing new efforts. In addition, these 
          grants will be used by schools to foster business development 
          and serve businesses and community development corporations in 
          low- to moderate-income areas.
  Financial Services: The New Markets Initiative also includes 
          $30 million to provide increased access to financial and 
          banking services for the approximately 10 million unbanked 
          households who do not have access to the mainstream banking 
          system. The initiative will encourage the creation of low-cost 
          bank accounts and the placement of Automated Teller Machines 
          (ATMs) in post offices and other locations in low-income 
          neighborhoods where access to ATMs is limited. It will also 
          promote financial education for low-income families.

  Empowerment Zones (EZs)/Enterprise Communities (ECs): While the New 
Markets and CDFI programs address capital access and credit, the EZ/EC 
Initiative is the foundation of the Administration's empowerment agenda 
for communities with high unemployment and poverty rates. This 
initiative challenges qualified urban and rural areas to develop 
comprehensive strategic plans for revitalization, with input from 
residents and community partners. The program selects communities with 
the most innovative plans and significant local commitments.
  Investment in EZ/ECs is available in many forms. The Federal 
Government provides tax benefits for businesses and flexible grants to 
communities for job training, day care, and other purposes. EZ/ECs can 
apply for waivers from Federal regulations, enabling them to better 
address local needs. Special set-asides from Department of Agriculture 
rural development programs are also available to rural EZ/ECs.
  Round I EZ/ECs: Designated in 1994, these EZ/ECs are showing promising 
results. The Baltimore, MD, EZ, for instance, has created approximately 
2,860 new jobs as a result of Title XX funding and other leveraged 
investments, and 3,250 Zone residents have been placed directly into 
jobs through various work force placement partners. Through June 1999, 
Empower Baltimore Management Corporation (EBMC) has spent more than 
$18.4 million across four components of Baltimore's strategy: business 
development for job creation; work force development; quality of life, 
and, community-capacity building. The Kentucky Highlands Rural EZ has 
used its $11 million venture capital fund to assist 30 new businesses or 
business expansions, leveraging almost $66 million in capital that 
created 2,319 jobs and expects to create over 1,000 more in the next few 
years. Since this EZ was designated in December 1994, unemployment in 
the area has dropped by more than half.
  Round II and Round III EZ/ECs: In January 1999, the Administration 
designated a second round of 15 urban EZs, five rural EZs, and 20 rural 
ECs, selected on a competitive basis, from applications of more than 250 
communities. The budget proposes $1.4 billion in mandatory grant funding 
for the remaining nine years for urban EZs and $120 million for the 
remaining eight years for rural EZs, as the Administration proposed in 
1999 and 2000. These grants would allow communities to implement 
comprehensive long-term strategies to address their local needs.
  The budget also proposes a series of tax measures to extend and 
improve economic growth in the 31 existing Round I and Round II EZs and 
also proposes to create a Third Round of 10 new EZs (eight urban

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and two rural). The total cost of these tax expenditure proposals is 
approximately $4.4 billion over 10 years. To encourage employment and 
growth, the budget proposes to create and extend a 20-percent wage 
credit for all existing and proposed EZs through 2009 (under current 
law, only Round I EZs have the credit and it is scheduled to expire in 
2004.) To enhance the incentives for small businesses in EZs, the budget 
proposes to allow them to deduct an additional $35,000 in investments 
above the normal small business investment deductions. The proposal will 
also increase access to capital through tax exempt financing by allowing 
local governments to issue tax-exempt bonds on behalf of EZ businesses. 
The President's proposal would permanently extend the Brownfields Tax 
Incentive in EZs.

  Community Development Financial Institutions Fund (CDFI Fund): 
Complementing the New Markets Initiative and EZ/EC initiatives, the Fund 
uses the provision of Federal resources as the foundation for leveraging 
significant private sector resources. CDFIs include a broad range of 
institutions--community development banks, credit unions, venture 
capital funds, business loan funds, and microenterprise loan funds--that 
provide a wide range of products and services, such as mortgage 
financing to first-time home buyers, commercial loans for small 
businesses, and other basic financial services. By creating and 
expanding a diverse set of CDFIs, the Fund helps develop new private 
markets, create healthy local economies, promote entrepreneurship, 
restore neighborhoods, generate tax revenues, and empower residents in 
distressed urban and rural communities.
  Every CDFI that receives financial assistance from the Fund must 
provide at least a one-to-one match with funds from non-Federal sources. 
To date, the CDFI Fund has awarded over $215 million in financial and 
technical assistance to CDFIs. In addition, the Fund has awarded over 
$90 million to traditional banks and thrifts for increasing their 
activities in economically distressed communities and investing in 
CDFIs. The budget proposes $125 million for the CDFI Fund.
  Other programs that promote economic development and provide services 
to underserved families, individuals and markets include:
  HUD's Community Empowerment Fund (CEF): The CEF/EDI, working in tandem 
with the Section 108 loan guarantee program, will work with a new pilot 
program beginning in 2000 to create loan pools to improve the 
securitization of Section 108 loans.
  HUD's Continuum of Care: This program promotes comprehensive systems 
to address the needs of homeless individuals and families. The 
Administration proposes $1.2 billion in HUD homeless assistance, an 
increase of 18 percent over 2000. This funding level includes $105 
million for rental assistance vouchers to help the homeless move to 
permanent housing with supportive services. The Administration also 
proposes to expand access to mainstream health, social services, and 
employment programs for which the homeless may be eligible through a new 
$10 million program administered by the Department of Health and Human 
Services, States, and large counties. The initiative includes expanding 
access to Medicaid, State Children's Health Insurance Program, Temporary 
Assistance for Needy Families, Food Stamps, and services funded through 
the Mental Health and Substance Abuse Block Grant, Workforce Investment 
Act, and the Welfare-to-Work grant program.
  Department of Agriculture's (USDA) Rural Development Programs: Because 
their needs can vary widely, no single approach will help both urban and 
rural communities. The Administration once again proposes to give 
States, localities, and Tribes more flexibility in their use of USDA's 
Rural Development grants and loans for businesses, water and wastewater 
facilities, and community facilities such as day care centers and health 
clinics. The 1996 Farm Bill authorized this approach through a new Rural 
Community Advancement Program (RCAP), combining 12 separate USDA 
programs into a Performance Partnership that can tailor assistance to 
the unique economic development needs of each rural community. The 
budget proposes $3.4 billion in loans and grants for RCAP, 29 percent 
more than in 2000, and the full flexibility

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that the 1996 Farm Bill envisioned. It also reproposes Partnership 
Technical Assistance (PTA) grants to assist rural communities in 
developing strategic plans for economic development, and grants for 
early-warning weather systems in areas prone to tornadoes. As part of 
the Administration's multi-agency initiative for the Mississippi Delta 
Region (MDR), $2 million of the $7 million in PTA grants are targeted to 
MDR counties (the 219 counties of the region as defined by P.L. 100-
460). In addition, there is a set-aside of $8 million in Intermediary 
Relending Program Loans for the MDR.
  Farm Safety Net proposal: Many rural communities depend significantly 
on the economic health of the farm sector. In addition to helping these 
communities diversify their economic base, through the New Markets and 
other economic and community development initiatives in the budget, the 
Administration is proposing an $11 billion package to enhance the farm 
safety net through 2002, when the next farm bill will be enacted (see 
Table 7-1).
  It has become painfully clear that the 1996 Farm Bill fails to support 
farm family incomes when prices fall or natural disasters strike. Even 
with $15 billion in emergency funding appropriated for distressed 
farmers and ranchers in the last two years, assistance remains 
inadequate because the 1996 Farm Bill is fundamentally flawed. While we 
cannot rewrite all farm policy this year, we can provide relief to those 
in need through the life of the current farm bill.
  The budget proposes to mend the farm safety net by providing counter-
cyclical income assistance when crop prices are low, to make up a 
portion of farmers' lost revenue relative to a five-year average, 
freezing the USDA marketing loan rates for the 2000 crops at their 1999 
levels, and increasing Federal crop insurance subsidies so farmers are 
better protected from natural disaster losses.
  The budget also proposes major increases in USDA conservation 
programs, such as the new Conservation Security Program and the existing 
Conservation and Wetlands Reserve and Farmland Protection Programs, 
which would enable farm families to conserve and enhance environmentally 
sensitive farmland and protect their farms from urban and suburban 
sprawl while increasing farm income. To help diversify farm families' 
income sources, the budget also includes funding to enable farmer 
cooperatives to build commodity processing facilities that will channel 
value-added profits back to producers, and supports greater crop use for 
bioenergy production. 
  ----------------------------------------------------------------------

                        Table 7-1.  $5.7 Billion Increase in 2001 for the Farm Safety Net
                                   (Mandatory funding, in millions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                        Actual                          2001            Change:
                                                 --------------------   2000   ---------------------- Authorized
                                                                      Estimate  Authorized             Level to
                                                    1993      1999                 Level    Proposed   Proposed
----------------------------------------------------------------------------------------------------------------
Proposed Authorizations:
Crop insurance reform...........  BA                   868     1,674       742      1,759      2,669       +910
                                  OL                   726     1,588     1,967      2,015      2,560       +545
Non-insured Crop Disaster         BA              ........        54       185         86        196       +110
 Assistance: Remove area-loss
 trigger........................
                                  OL              ........        54       185         86        196       +110
Income assistance:
  Guarantee 92 percent of five-   BA              ........  ........  ........  ..........     2,464     +2,464
   year average \1\.............
                                  OL              ........  ........  ........  ..........     2,464     +2,464
  Extend dairy price-support      BA                   120       242       250        107        257       +150
   program to 2002..............
                                  OL                   120       242       250        107        257       +150
                                 -------------------------------------------------------------------------------
    Total, Income assistance....  BA                   120       242       250        107      2,721     +2,614
                                  OL                   120       242       250        107      2,721     +2,614

Conservation programs \2\.......  BA              ........       335       355        246      1,409     +1,163
                                  OL              ........       323       417        300      1,124       +824

Empowerment Zones/
  Enterprise Communities \3\....  BA              ........        15        15  ..........        15        +15
                                  OL              ........  ........         5  ..........  ........  ..........

Cooperative development.........  BA              ........  ........  ........  ..........        80        +80
                                  OL              ........  ........  ........  ..........        80        +80
                                 -------------------------------------------------------------------------------
  Subtotal, Proposed              BA                   988     2,320     1,547      2,198      7,090     +4,892
   Authorizations.
                                  OL                   846     2,207     2,824      2,508      6,681     +4,173
Existing Authorization:
Marketing loan rates frozen.....  BA              ........  ........        20  ..........       500       +500
                                  OL              ........  ........        20  ..........       500       +500

Bioenergy (ethanol) Incentive     BA              ........  ........       100  ..........       150       +150
 Payments:
                                  OL              ........  ........       100  ..........       150       +150
Conservation Reserve Program
 (CRP):
Continuous sign-up bonus........  BA              ........         2       110         13        138       +125
                                  OL              ........         2       110         13        138       +125

Farm storage facility loans.....  BA              ........  ........  ........  ..........        10        +10
                                  OL              ........  ........  ........  ..........        10        +10
                                 -------------------------------------------------------------------------------
    Subtotal, Existing            BA              ........         2       210         13        798       +785
     Authorization.
                                  OL              ........         2       210         13        798       +785
                                 ===============================================================================
      Total, Farm Safety Net      BA                   988     2,322     1,796      2,211      7,888     +5,677
       Initiative...............
                                  OL                   846     2,209     3,059      2,521      7,479     +4,958
----------------------------------------------------------------------------------------------------------------
\1\ The income assistance proposal would also generate $600 million in 2000 outlays.

\2\ This initiative would also increase cumulative CRP enrollment to 40 million acres, allowing an additional
  1.2 million acres to sign up annually in 2001 through 2003. The first CRP payments for these additional acres
  would be made in 2002.

\3\ 1999 and 2000 amounts are classified as discretionary spending.

  ----------------------------------------------------------------------
  Appalachian Regional Commission (ARC): The Administration continues 
support for ARC to help 406 economically distressed counties in the 13 
State Appalachian region. The ARC's Federal-State partnership is a 
proven economic development model of balanced fiscal decision-making 
that has helped improve the economic viability of this region over the 
past 35 years. Furthermore, the Administration is doubling the ARC's 
Entrepreneurship Initiative, which seeks to fund innovative economic 
development projects in the region, from $5 million to $10 million in 
2001, a significant increase to ARC's total funding of $71 million.
  Rural Alaskan Economic Development: The Denali Commission, which 
focuses on the economic development challenges of rural Alaska, will 
provide resources to improve the basic infrastructure of this region. 
Thirty million of new funding will address water and sewer and leaking 
fuel storage tanks in Alaska. Funds will also be used to create job 
training programs to provide the sustainable economic development 
opportunities for these remote Alaskan communities.
  Delta Regional Authority (DRA): The budget includes $153 million to 
create the new DRA to assist the Lower Mississippi Delta Region. This 
proposal includes $30 million in new resources to create this new 
authority. Modeled after other economic development agencies, the DRA 
will target its funding and resources to economically distressed 
counties throughout the Delta. The remaining $123 million will be 
targeted to these counties from existing programs at the Departments of 
Housing and Urban Development, Commerce, Transportation, Agriculture, 
Labor, Education, and Health and Human Services.
  Livable Communities Initiative: The Livability Communities initiative 
encourages the creation of livable communities and regions

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by aligning and dedicating new and existing Federal resources in support 
of locally determined livability initiatives. The programs included in 
the Livable Communities initiative will help accelerate and strengthen 
the development of regional capacities to address the problems of making 
America's metropolitan and rural areas good places to live, work, play 
and raise a family. The budget proposes

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four investments as part of the Livable Communities initiative.
  This initiative includes an unprecedented request for a $6.3 billion 
mass transit transportation initiative, a $1.6 billion congestion relief 
and air quality improvement program, $468 million for the Expanded 
Passenger Rail Fund, $719 million to implement the enhancements program; 
and, $52 million for the Transportation and Community and System 
Preservation pilot. In addition, the Better America Bonds program, 
administered by the Environmental Protection Agency, will provide 
Federal tax credit bonds enabling local, State and Tribal governments to 
issue $10.8 billion over five years for green space preservation, water 
quality enhancement, and clean up of abandoned industrial sites. HUD's 
$25 million Regional Connections Initiative will promote regional 
``smart growth'' strategies and complement the Administration's other 
regional efforts. Regional Connections' matching grants will help local 
partnerships design and pursue smarter growth strategies across 
jurisdictional lines. As a part of the Livable Communities Initiative, 
the budget also proposes $125 million for the Department of Justice's 
Crime-Solving Technologies to improve community safety.
  Also included in the budget is the continuation of the Lands Legacy 
initiative, which will complement the Administration's Livable 
Communities initiative, by emphasizing land conservation; smart growth 
planning; and partnerships with State, local, and Tribal governments and 
non-profit groups to preserve open spaces in urban, suburban, rural, and 
coastal areas (see Chapter 4, ``Protecting the Environment''). This 
year's Lands Legacy initiative includes $50 million for the Interior 
Department's new State Planning Partnerships of which $30 million is for 
the Community/Federal Information Partnership (C/FIP). The funding will 
provide grants, contracts, technical assistance, information, and 
analytical tools to communities to manage resources and future growth 
while preserving environmentally sensitive land.
  The Administration is proposing a manufacturing initiative to assist 
industry, workers, and communities that have been adversely impacted in 
part by the slowdown in the Asian economy and other factors beyond their 
control. This initiative will double the funding for the Economic 
Development Administration's Economic Adjustment program to better 
assist communities that experience sudden and severe economic distress 
due to adverse global market conditions. It will provide the tools and 
resources to get direct technical assistance to communities in need, as 
have similar intensive, inter-agency efforts in the past which have 
successfully engaged industry, communities, and workers to address 
situations prompted by a downturn in economic conditions, like base 
closings. Additionally, the initiative will support efforts to promote 
the use of electronic commerce for trade promotion activities by large 
and small manufacturers. Increased funding of $15.5 million for the 
Department of Commerce will provide the resources to support enhanced 
trade compliance activities, by adding trade and compliance officers to 
monitor unfair trade practices and by reducing the time it takes to 
prepare dumping and countervailing duty cases. This enhanced monitoring 
and preparing trade cases in a quicker time frame will better provide 
effective relief to trade-injured industries and workers.

Housing Needs of American Communities

  The Administration's efforts to create the National Partners in 
Homeownership--a coalition of 66 key public and private housing 
organizations--and to form a National Homeownership Strategy have led 
more families to homeownership than at any time in American history. 
Along with a strong economy and low interest rates, the Administration's 
policies have helped boost homeownership to 67 percent--a new all-time 
high. Under this Administration, 8.7 million Americans have become 
homeowners, including record numbers of minorities.
  The Administration's efforts to increase support for housing for low-
income families resulted in an increase in 2000 of 60,000 new housing 
vouchers. The budget seeks to build on this progress and proposes to 
double the number of new housing vouchers, providing $690 million for 
120,000 new vouchers Nationwide.

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  Federal Housing Administration (FHA): The Administration's successful 
1999 proposal to increase the FHA mortgage limit has allowed FHA to help 
50,000 more families purchase their first homes, especially large 
families and families in high cost areas. Building on this success, the 
budget proposes to further increase the FHA mortgage limit to allow an 
additional 55,000 families to purchase homes in 2001. The budget also 
authorizes FHA to offer new adjustable-rate mortgage (ARM) products, 
opening homeownership to more than 40,000 families in 2001. These new 
products will offer a sound mortgage product to borrowers who do not 
qualify for a fixed-rate mortgage or cannot afford fixed-rate pricing, 
but who want to avoid the volatility associated with traditional ARMs.
  Low-Income Housing Tax Credit (LIHTC): The budget proposes to expand 
the LIHTC to spur the private sector to develop more affordable low-
income rental housing in high poverty areas. The proposal will cost $1.0 
billion over the next five years and help develop another 75,000 to 
90,000 units per year.
  Assisted Housing: The Administration proposes $690 million for 120,000 
housing vouchers, including 32,000 for families seeking to move from 
welfare to work, and 18,000 to help the homeless move to permanent 
housing with supportive services. Under the HUD Welfare-to-Work voucher 
program, local housing agencies that work in partnership with State and 
local welfare agencies will get the flexibility to design programs 
serving welfare families for whom housing assistance is critical to 
getting and retaining jobs. In addition, the budget continues to reduce 
poverty concentrations by providing $625 million in HOPE VI grants to 
local housing authorities to demolish approximately 28,000 dilapidated 
non-viable public housing units over the next three years, and replace 
them with portable subsidies or newly constructed mixed-income housing. 
These funds provide sufficient resources to surpass the Administration's 
goal of demolishing 100,000 of the most severely distressed units by 
2003.
  USDA's Rural Housing Service (RHS) offers direct and guaranteed loans 
and grants to help very low- to moderate-income rural residents buy and 
maintain adequate, affordable housing. One of the RHS goals is to reduce 
the number of rural residents living in substandard housing. The RHS 
direct loan program provides subsidized loans to very low and low-income 
rural residents. Its single family guaranteed loan program guarantees up 
to 90 percent of a private loan for buying new or existing housing. 
Together, the two programs will provide $5 billion in loans and loan 
guarantees in 2001, providing 68,000 decent, safe, affordable homes for 
rural Americans. This level of funding includes a legislative proposal 
increasing the single family housing guarantee program loan fee from one 
percent to two percent, which permits the Administration to provide 
higher loan levels at less cost.
  RHS's section 515 program, which generally lends to private 
developers, finances both the construction and rehabilitation of rural 
rental housing for low- to moderate-income, elderly, and handicapped 
rural residents. The budget provides $120 million in direct loans, 
providing over 1,400 new units for very low-income tenants in rural 
America. RHS also provides section 538 multifamily housing guaranteed 
loans, and the budget provides a loan level of $200 million, which funds 
3,200 new units for low to moderate income tenants. Additional 
multifamily housing funding includes $45 million in the farm labor 
housing program level--an increase of 20 percent over 2000--that serves 
almost 100 percent minority populations.
  In addition, the budget contains $20 million as a new set-aside within 
the HUD CDBG program in competitive grants for targeted technical 
assistance to increase the role of non-profit (including community-based 
and interfaith) organizations in supplying and maintaining affordable 
housing, creating economic opportunity, and participating in a wide 
range of HUD programs that assist low-income people in high poverty 
areas.

New Opportunity Agenda through Volunteerism

  The budget includes numerous programs to narrow disparities and to 
increase economic opportunity in our Nation so that we may achieve the 
goal of strengthening the American community.

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  National Service: The President has consistently supported and 
encouraged community service and volunteerism through such programs as 
AmeriCorps and other programs supported through the Corporation for 
National and Community Service. Volunteerism and community service have 
been a strong and important tradition in America ever since its 
founding. In 1994, President Clinton signed the King Holiday and Service 
Act making this national holiday a day of service to bring people 
together, promote racial cooperation, and help solve problems through 
citizen action.
  The Corporation for National and Community Service: This agency and 
its programs encourages Americans of all ages and backgrounds to help 
solve community problems and provides opportunities to engage in 
community-based service. The budget proposes $851 million for the 
Corporation, a 16-percent increase over 2000.
  AmeriCorps: Over 150,000 individuals will have participated in the 
Corporation's AmeriCorps in its first five years. The program helps 
young Americans of all backgrounds to serve in local communities through 
programs sponsored by local and national nonprofits. Participants serve 
full- or part-time, generally for at least a year. In return, they earn 
a minimum living allowance, set at about the poverty level of a single 
individual and, when they complete their service, they earn an education 
award to help pay for postsecondary education or repay student loans. 
Building upon the Administration's commitment to national service, the 
budget proposes to increase annual AmeriCorps participation to 100,000 
by 2004. As the first step on that path, the budget adds 9,000 
Americorps participants in 2001 for a total of 62,000. In addition, the 
budget provides $5 million for an AmeriCorps Reserves Program, modeled 
after the military reserves, to re-engage AmeriCorps alumni in service 
to their communities on weekends and in times of natural disasters.
  Service Opportunities for Youth: The budget includes $15.5 million in 
the Corporation for New Youth Initiatives, including $5 million for a 
Community Coaches program to increase service-learning opportunities for 
youth; $3 million for Youth Empowerment Grants to support youth-focused 
projects that solve problems in their communities, such as youth 
violence; and $7.5 million to support America's Promise: The Alliance 
for Youth to help all children grow into healthy, strong, and productive 
adults.
  The National Senior Service Corps: This Corporation program provides 
opportunities for citizens age 55 and older to use their time and 
talents to meet community needs. The budget includes $193 million for 
the Retired and Senior Volunteer Program, the Foster Grandparent 
Program, and the Senior Companion Program, enabling more than half a 
million older Americans to help others of all ages.

From Digital Divide to Digital Opportunity

  Access to computers and the Internet and the ability to use this 
technology are becoming increasingly important for full participation in 
America's economic, political, and cultural life. In the face of strong 
evidence of a digital divide--a gap between those who have access to 
information technology and those who do not--the Administration proposes 
an initiative to help close the digital divide and ensure that every 
American benefits from the opportunities created by information 
technology.

  Community Technology Centers (CTCs): CTCs are designed to provide 
access to and training for information technology in a community-based 
setting within traditionally underserved areas. The budget provides $100 
million in 2001 to support the creation of up to 1,000 CTCs.
  Broadband Communities: Grants and loans to communities by the 
Department of Commerce's Economic Development Administration (EDA) and 
the USDA's Rural Utilities Service (RUS) will help ensure that 
underserved rural, urban, and Native American communities can build the 
infrastructure necessary to promote economic development through 
broadband (high-speed Internet) technology and electronic commerce. The 
Administration proposes $23 million for EDA to provide grants to 
distressed communities to plan for and install broadband infrastructure, 
and a RUS pilot program consisting of $2 million in grants and $100 
million in loans to finance

[[Page 130]]

installation of broadband transmission capacity to and through rural 
communities.
  Internet Home Access Program: The Administration proposes $50 million 
for a new grant program that would provide low-income individuals and 
families with connections, training, and support necessary for full 
participation in today's increasingly online society. The National 
Telecommunications and Information Administration within the Department 
of Commerce will encourage community-based partnerships between local 
organizations, academia, and private industry to devise solutions that 
address the needs of low-income populations in gaining access to 
technology and online resources at home. In order to demonstrate the 
local and private sector commitments, applicants will be required to 
provide matching funds.
  Technology Opportunities Program: Increased economic opportunity for 
all Americans hinges not only upon access to information technology 
tools but also upon content and applications that help empower low-
income households and underserved communities. The budget proposes 
increasing funding for the Department of Commerce's Technology 
Opportunities Program (formerly the Telecommunications and Information 
Infrastructure Applications Program) to $45 million to expand its 
successful program of replicable, community-based grants into areas such 
as on-line support for microenterprise development and distance 
learning. 
  ----------------------------------------------------------------------

                                      Public Television in the Digital Age



  The budget provides a total of $393 million for 2001 through 2003 for the public broadcasting system's
transition to digital technology. Digital broadcasting will allow greatly expanded educational, community
service, and cultural programming through innovative applications, including high-definition and interactive
television. Funding through the Department of Commerce will be devoted to promoting digital transmission, while
funding for the Corporation for Public Broadcasting will be for digital program production and development
capabilities.


   ---------------------------------------------------------------------

Civil Rights Enforcement

  The Administration is committed to expand efforts to help ensure that 
no American is denied a job, a home, or an education because of their 
race, ethnicity, gender, religion, or disability; we will help ensure 
equal opportunity for all Americans. The budget includes $698 million 
for funding civil rights enforcement agencies, an $81 million, or 13-
percent, increase over the 2000 level of $617 million.
  The budget proposes a total of $322 million for the Equal Employment 
Opportunity Commission (a 15-percent increase) to support the agency's 
effort to reduce the backlog of private sector cases to 28,000 by the 
end of 2001; $98 million for the Department of Justice's Civil Rights 
Division (a 19-percent increase) to expand investigations and 
prosecutions of criminal civil rights cases (including hate crimes), 
promote compliance with the Americans with Disabilities Act and handle 
more police misconduct cases; $76 million for the Department of 
Education's Office of Civil Rights (a seven-percent increase) which 
includes funds to support staff training and technological improvements 
to ensure a viable civil rights compliance and enforcement program; $76 
million for the Department of Labor's Office of Federal Contract 
Compliance Programs (a four-percent increase) to continue the 
President's Equal Pay Initiative; and, $50 million for HUD's fair 
housing activities (a 14-percent increase) to reduce housing 
discrimination by working with public and private fair housing groups to 
assist in enforcement of the Fair Housing Act. Additionally, $21 million 
will be used by USDA to improve civil rights enforcement and program 
outreach to under-represented customers. (See Table 7-2 for the civil 
rights enforcement funding summary.) The budget also includes a $27 
million Equal Pay Initiative to educate employers and the public about 
wage issues, to provide training to women for non-traditional jobs, and 
to help employers assess and improve their pay policies. 
  ----------------------------------------------------------------------

              Table 7-2.  Civil Rights Enforcement Funding
               (Budget authority, in millions of dollars)
------------------------------------------------------------------------
                                                                 Change:
                                    1999      2000      2001     2000 to
                                   Actual   Estimate  Proposed    2001
------------------------------------------------------------------------
Department of Agriculture: Civil        16        18        21        +3
 Rights Programs................
Department of Education: Office         66        71        76        +5
 for Civil Rights...............

Department of Health and Human
 Services:
  Office for Civil Rights.......        21        22        24        +2

Department of Housing and Urban
 Development:
  Fair Housing Activities.......        40        44        50        +6

Department of Justice:
  Civil Rights Division.........        69        82        98       +16

Department of Labor:
  Office of Federal Contract            65        73        76        +3
   Compliance Programs..........
  Civil Rights Center...........         5         6         6  ........
Department of Transportation:            7         7         9        +2
 Office of Civil Rights.........
Environmental Protection Agency:         4         4         5        +1
 Office of Civil Rights.........
Commission on Civil Rights......         9         9        11        +2
Equal Employment Opportunity           279       281       322       +41
 Commission.....................
                                 ---------------------------------------
    Total.......................       581       617       698       +81
------------------------------------------------------------------------

  ----------------------------------------------------------------------

[[Page 131]]



Commitment to Native Americans

  The relationship between the U.S. Government and Native Americans is a 
historical one founded on a trust responsibility. The Administration 
continues to honor its government-to-government relationship with Tribes 
by supporting critical programs serving Indian reservations, and by 
bringing together Tribal leaders and resources across the Government to 
address priority Tribal concerns, such as health care, education, 
economic development, infrastructure development, and other basic 
services. Within the total funding to address the unique relationship 
with Native Americans, the Administration includes a Government-wide 
initiative increase of $1.2 billion to address these crucial issues 
comprehensively and systematically. The Domestic Policy Council 
Interagency Work Group, chaired by the Interior Secretary, will 
coordinate agency efforts to implement the initiative.
  The budget reflects the Administration's commitment to Native 
Americans, proposing $9.4 billion, 14 percent more than in 2000 and 75 
percent over 1993, for Federal programs addressing basic Tribal needs 
and encouraging self-determination (see Table 7-3). The Health and Human 
Services Department's Indian Health Service (IHS) at $2.6 billion (10 
percent over 2000) and the Interior Department's Bureau of Indian 
Affairs (BIA) at $2.2 billion (18 percent over 2000) make up more than 
half of total Federal funding for Native American programs and services. 
In addition, BIA and IHS will continue to promote Tribal self-
determination through local decision-making. Tribal contracting and 
self-governance compact agreements now represent 41 percent of BIA's 
operations budget, and over 42 percent of IHS' budget. 
  ----------------------------------------------------------------------

                        Table 7-3.  Selected Components of the Native American Initiative
                                   (Budget authority, in millions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                            Actual                             Change:   Change:
                                                     --------------------   2000      2001     1993 to   2000 to
                                                        1993      1999    Estimate  Proposed    2001      2001
----------------------------------------------------------------------------------------------------------------
Health Care:
  Indian Health Service (IHS/HHS)...................     1,858     2,240     2,391     2,620      +762      +230
    IHS program level, including receipts...........     2,022     2,650     2,830     3,060    +1,038      +230

Education:
  BIA School Construction, Repair, Maintenance (BIA/        90        60       133       300      +210      +167
   DOI).............................................
  School Construction For Public Schools Serving             4         5         5        55       +51       +50
   High Concentrations of Native Americans (Ed Dept)
  BIA School Operations (BIA/DOI)...................       343       476       467       507      +164       +40
  Indian Education Assistance for Public and BIA            82        66        77       116       +34       +39
   Schools Serving Native Americans (Ed Dept).......
  Support of Tribal Community Colleges (Multiagency)        24        44        52        67       +43       +15

Economic Development:
  New Markets and Other Activities--Economic                 3         3         3        49       +46       +46
   Development Administration (Commerce)............
  Digital Opportunity and Other Activities (NSF)....  ........  ........  ........        10       +10       +10
  Small Business Development (SBA)..................  ........         *         *         6        +6        +6
  Community Development Financial Institutions        ........  ........  ........         5        +5        +5
   (Treasury).......................................
  Rural Community Advancement Program/RCAP (USDA)...  ........  ........        12        24       +24       +12
  Commercial Code Implementation and Other                  35        35        35        44        +9        +9
   Activities--Administration on Native Americans
   (HHS)............................................

Infrastructure and Other Basic Services:
  Indian Reservation Roads and Bridges:
    Road/Bridge Construction (DOT)..................       202       284       250       375      +173      +125
     Road/Bridge Maintenance (BIA/DOI)..............        30        26        26        32        +2        +6

  Indian Housing:
    Housing and Urban Development...................       401       693       693       725      +324       +32
    Housing Improvement Program (BIA/DOI)...........        20        16        16        32       +12       +16

  Joint Indian Country Law Enforcement:
    Department of Justice...........................         4       182       195       279      +275       +84
     BIA/DOI........................................         9        98       141       157      +148       +16
                                                     -----------------------------------------------------------
      Subtotal, Law Enforcement.....................        13       280       336       439      +426      +103


  Capacity Building & Other Basic Services:
    Environmental Protection Agency.................        38       159       170       188      +150       +18
    Improved Trust Services (BIA/DOI)...............        85        74        73       108       +23       +35
    Operation of Indian Programs (BIA/DOI)..........     1,363     1,584     1,640     1,795      +432      +155
----------------------------------------------------------------------------------------------------------------
Total Government-wide Funding for Native American        5,361     7,806     8,201     9,380    +4,019    +1,178
 Programs
----------------------------------------------------------------------------------------------------------------
* $500 thousand or less.

  ----------------------------------------------------------------------
  The Government-wide initiative will substantially expand existing 
services and create new opportunities for Native Americans in four 
principal areas:
  Health Care: For IHS, the budget proposes an investment of 
          $2.6 billion, a 10-percent increase over the 2000 level. This 
          increase will enable IHS to continue expanding accessible and 
          high-quality health care to its Native American service users, 
          through IHS' existing network comprised of over 543 direct 
          health care delivery facilities. This increase reflects a 
          five-pronged approach for IHS: a substantial funding increase 
          in 2001, better access to health grants, Medicare and Medicaid 
          reimbursements, achievement of medical efficiencies by 
          ensuring that health care procedures are done only when they 
          are necessary and are done in a cost-effective manner,

[[Page 132]]

          and vigilance on fraud and abuse. (Additional detail is 
          provided in Chapter 3, ``Strengthening Health Care.'')
  The budget also supports access to health services and improves the 
health status of Native American by ensuring that IHS' health facilities 
are adequately maintained. Within the increase, IHS will continue the 
construction of the Navajo Fort Defiance (AZ) Hospital, the Parker 
Health (AZ) Clinic, and the Winnebago (NE) Hospital. In addition, the 
$30 million a year in diabetes-related funding that IHS receives under 
the Children's Health Insurance Program will help alleviate 
complications from diabetes.
  Education: The Administration is continuing its commitment to 
          Native American education by systematically funding school 
          repair and replacement needs on Indian reservations. The 
          budget proposes

[[Page 133]]

          $300 million (more than double the 2000 level) for BIA to fund 
          the replacement of six elementary and secondary schools and 
          numerous health and safety improvement and repair projects 
          across Indian Country. Within BIA's school construction funds, 
          up to $30 million may be used by Tribes or tribal consortia to 
          defease the principal on bonds authorized under the 
          Administration's school construction bonding proposal. In 
          addition to school construction, BIA will provide $507 million 
          (nine percent over 2000) for elementary and secondary school 
          operations, early childhood development, and early 
          intervention partnerships by establishing therapeutic pilots 
          at six BIA boarding schools to provide students with services 
          ranging from education to mental health and substance abuse 
          treatment.
  The Education Department will provide $1.7 billion (eight percent over 
2000) in direct and indirect support for the education of Native 
Americans. This includes $116 million ($39 million over 2000) for the 
Indian Education program to fund grants to local educational agencies 
and continue the second year of in-service and pre-service training for 
the American Indian Teacher Corps initiative. This amount also provides 
$5 million for a new initiative, the American Indian Administrator 
Corps, that will support the recruitment, training, and in-service 
professional development of American Indian professionals to become 
effective school administrators in schools with high populations of 
Native American students. The Department will also set aside $50 million 
in its $1.3 billion national School Renovation initiative for public 
schools with high concentrations of Native American students and provide 
an additional $5 million for the schools under Impact Aid Construction.
  Across the Government, agencies contribute to Native American 
postsecondary education through financial support of Tribal colleges. 
For example, the Interior, Agriculture, Education, Housing and Urban 
Development, and Transportation Departments propose a total of $67 
million (29 percent over 2000) for activities related to curriculum 
development, student recruitment, student services, professor training, 
research capacity-building, and tribal outreach.
  Economic Development: The 2001 Budget proposes $54 million in 
          Tribal funding (nearly nine times the 2000 level) for the 
          Department of Commerce. In keeping with last year's efforts to 
          expand New Markets to underserved areas, $49 million of the 
          total amount will further the Economic Development 
          Administration's infrastructure, planning, and public works 
          projects on Indian Reservations. These projects will focus on 
          technology, business development, and Tribal economic 
          development activities.
  The Administration proposes a new initiative for Tribal colleges to 
encourage Native Americans to pursue information technology and other 
science and technology fields as areas of study, as well as to increase 
the capacity of these institutions to offer relevant courses. The budget 
provides $10 million, to be administered by the National Science 
Foundation, for course and program development, and for teacher 
professional development activities at feeder schools.
  The budget also proposes $6 million for the Small Business 
Administration (SBA) to fund the Office of Native American Affairs and 
to establish two initiatives for improving economic development on 
reservations: BusinessLinc and Native American Small Business 
Development Centers (SBDC). The SBA will expand the successful 
BusinessLINC program to Indian Country by establishing mentor/protege 
relationships between large and small businesses. In addition, the 
budget proposes new funding to expand the SBDC program into Indian 
Country to provide business and technical assistance to Native American 
entrepreneurs. A set-aside of $5 million from the Treasury Department's 
Community Development Financial Institutions Fund will also be used to 
promote New Markets on reservations by establishing a training and 
technical assistance program addressing human capital development needs 
in Indian Country.
  The budget includes $229 million (16 percent over 2000) for 
Agriculture Department programs serving Indian reservations, of which 
$26 million ($14 million over 2000) is targeted

[[Page 134]]

to Tribes through Rural Community Advancement Program (RCAP) and other 
economic development activities. This funding will provide low-interest 
loans and grants to construct and improve Tribal water and wastewater 
systems, and community facilities like health clinics and child care 
centers on Indian reservations, and to diversify and expand economic 
opportunities.
  In addition, the Health and Human Services Department's Administration 
on Native Americans will allocate $2 million of its $9 million increase 
over 2000 to support additional efforts to develop Tribal legal codes. 
This funding will support Tribal efforts to develop environmental and 
tax codes, as well as codes addressing the areas of business, 
commercial, zoning, land use, hunting, fishing, and juvenile and child 
welfare.
  Infrastructure and Other Services: The Department of 
          Transportation's (DOT) 2001 proposed level of $375 million (50 
          percent over 2000) will improve roads, bridges, highway safety 
          and transportation services on Indian reservations. Within 
          this total, $349 million for the Indian Reservation Roads 
          Program, (a 50-percent increase over 2000) will allow Tribes 
          to address the estimated backlog of $4 billion in needs on 
          these roads and bridges. In addition, a $5 million set-aside 
          for Indian tribes within DOT's Access program will increase 
          mobility and access to employment opportunities on 
          reservations. To ensure that Native Americans have the skills 
          to compete for transportation jobs, $1 million will be 
          dedicated for construction skills training. In addition, total 
          funding to improve highway safety on Indian reservation roads 
          will double with an additional $1 million.
  Of the BIA's total funds, $32 million (20 percent over 2000) will be 
used to supplement DOT's funds by maintaining BIA and Tribal roads on 
reservations across the country, and $32 million (more than twice the 
2000 level) will be used to repair or replace dilapidated homes across 
Indian Country, to prevent family displacement.
  The budget includes $725 million (five percent over 2000) in HUD to 
enable Tribes and Tribal housing entities to create affordable rental 
and homeownership opportunities, as well as develop the regulatory and 
legal framework necessary to facilitate economic revitalization and 
homeownership on Tribal lands. The budget establishes a new information 
hotline for Government-wide Native American programs funded out of the 
Indian Community Development Block Grant program.
  The third year of the Interior and Justice Departments' joint law 
enforcement initiative, for which the budget proposes $439 million in 
2001 (31 percent over 2000), will continue to address high crime rates 
in Indian Country by providing more resources for officer hiring and 
retention, drug control and youth crime prevention programs, law 
enforcement equipment, construction of detention facilities, and crime 
reporting surveys.
  The Environmental Protection Agency (EPA) will continue to provide 
technical assistance to Tribes on such activities as hazardous and solid 
waste removal, leaking underground storage tanks, and water protection. 
The budget increases the Tribal share of the Clean Water State Revolving 
Fund appropriation from 0.5 to 1.5 percent. Part of EPA's proposed $188 
million Tribal budget would also be used for increased Tribal general 
assistance grants to build institutional capacity for implementing 
Tribal environmental programs on Indian lands.
  The Administration is committed to improving trust services and 
management through its trust reform efforts at the Interior Department. 
The budget proposes $108 million (48 percent over 2000) for improved 
trust services in the BIA, for activities such as probate, real estate 
appraisals and other services, and cadastral surveys.
  In addition, the Administration is committed to resolving disputed 
Indian trust fund account balances through informal dispute resolution 
and supports the unique government-to-government relationship that 
exists in Indian trust land management issues. After Tribal 
consultations, BIA submitted its recommendations to Congress in November 
1997. Legislation reflecting these recommendations was proposed in 1998, 
but not enacted. The Department will continue efforts to resolve trust 
fund account balances.

[[Page 135]]

  The budget provides $83 million for the Interior Department's (DOI's) 
Office of Special Trustee, including the trust management improvement 
project. Current activities include verifying the remaining individual 
Indian account data and converting these data to a commercial-grade 
accounting system. Ownership, lease, and royalty information related to 
the underlying trust assets will also be verified and converted to a 
recently acquired commercial asset management system.
  As part of DOI's commitment to resolving trust land management issues, 
DOI worked with Congress in 1999 to repropose legislation to establish 
an Indian Land Consolidation program to address the ownership 
fractionation of Indian land. DOI began implementing three pilot 
projects in Wisconsin, in cooperation with Tribes, to purchase small 
ownership interests in highly fractionated tracts of land from willing 
sellers. In the nine months of this effort, more than 8,000 small 
ownership interests have been consolidated. The budget proposes $13 
million in 2001 for this program and DOI will work with Congress to get 
legislation enacted in the 106th Congress, limiting future 
fractionation.

Firefighter Health and Safety Initiative

  Firefighters play a critical role in protecting the health and safety 
of the community, and in order to further protect their own health and 
safety, the Administration is proposing a new $25 million pilot grant 
program that will assist needy communities in obtaining necessary health 
and safety equipment for their firefighting personnel. This program, 
administered by the Federal Emergency Management Agency, will help 
communities reduce firefighter injuries and fatalities, and improve 
their ability to effectively respond to fire emergencies.

Commitment to the District of Columbia

  The Administration strongly supports the District of Columbia's right 
of self-governance and continues to work with the District to promote 
economic well-being and to advance the interests of the District. As 
part of the 1997 balanced budget agreement, the President proposed, and 
Congress enacted, a comprehensive financial restructuring plan for the 
District of Columbia. It relieved the District of major financial 
burdens and laid the groundwork to restore the District's fiscal health. 
Due to prudent fiscal management and on-going efforts to build private 
investment, the District--facing bankruptcy only six years ago--produced 
budget surpluses in 1997 and 1998 and projects a third budget surplus in 
1999. To maintain a balanced budget in the future, the District has 
launched major management reforms, cut spending, and directed a portion 
of budget surpluses to eliminate its accumulated deficit by 2000. If the 
District continues to balance its budget through 2000, it can regain 
full home-rule.
  The budget includes $486 million to implement the President's plan for 
District courts and corrections, including $224 million to house the 
District's sentenced felon population. By December 2001, all adult-
sentenced felons will be in the custody of the Federal Bureau of 
Prisons.
  The Administration--through its departments and agencies--will 
continue to provide technical help and other assistance to the District 
in such areas as education and law enforcement. In addition, the 
Administration continues to assist the District in spurring neighborhood 
revitalization and economic development and in bolstering the District's 
long-term fiscal stability. In 2000, the Federal Government provided $17 
million to launch a college tuition program for District residents. This 
budget proposes to continue to fund the program at $17 million.
  For 2001, the budget provides $38 million for economic development and 
infrastructure investments, including $10 million for environmental 
remediation and site preparation of property to be used in an 
economically distressed neighborhood slated for economic development, $3 
million for the study and designs for a National Museum of American 
Music, and $25 million for the Federal share of construction of a 
Metrorail station at the intersection of New York and Florida Avenues, 
in Northeast DC. This $25 million will be matched by city and private 
funds to create an improved gateway into the Nation's Capital and 
revitalize the distressed neighborhoods surrounding the Metrorail site.

[[Page 136]]

  ----------------------------------------------------------------------

                                    Building One America for the 21st Century



The President's vision of One America in the 21st Century is a diverse, democratic community in which we respect
 and celebrate our differences, while embracing the shared values that unite us. The President envisions an
 America based on opportunity for all, responsibility from all, and one community of all Americans. To reach
 that goal, he has asked all Americans to join him in a national effort to deal openly and honestly with our
 racial differences. Americans must improve their understanding of the history of race, and how this history
 contributes to conflicting views on race and racial progress held by Americans of color and white Americans.
 The President recognizes that, even as America rapidly becomes a truly multi-racial democracy, race relations
 remains an issue that too often divides our Nation and keeps the American dream from becoming a reality for
 everyone who seeks to take part through hard-work and responsibility.

In February 1999, the President established his Initiative for One America, the first White House office
 dedicated to ensuring a coordinated and focused strategy to close the opportunity gap that exists for many
 minorities and the underserved. The One America office builds on the important work done by the President's
 Initiative on Race in 1997 and 1998 by promoting the President's goals of educating the American public about
 race; encouraging racial reconciliation through a national dialogue on race; identifying policies that can
 expand opportunities for racial and ethnic minorities; and ensuring common access to health care and the broad
 enforcement of laws against discrimination. The Initiative for One America coordinates the work of the White
 House and Federal agencies to carry out the President's vision of One America and partners with non-government
 entities to increase private sector commitment, investment and action to increase opportunity.

The One America Initiative has hosted discussions and public forums on diversity and opportunity to a wide range
 of organizations, educational institutions, and communities all across the country. For example, it launched
 the Presidential Call to Action to the American Legal Community in a joint effort with Department of Justice
 officials and professionals to implement a nationwide strategic plan to increase opportunity and promote racial
 diversity in the legal profession. It also worked with the Department of Education to promote a Campus Days
 Dialogue program to discuss a variety of educational challenges and the importance of faculty leadership on the
 issue of diversity. This year, 620 educational institutions participated in the Campus Dialogue program. The
 Initiative also worked with local elected officials and advocacy organizations to develop a proactive strategy
 to address the sometimes volatile relationship between communities of color and law enforcement agencies.

 The Administration has made progress in a range of program areas, including those listed below. Many others are
 listed throughout the budget.

For example:
   Eliminating Racial and Ethnic Disparities in Health. In February 1998, the President committed the
   Nation to an ambitious goal by the year 2010: eliminate disparities in six health areas where racial and
   ethnic minorities are disproportionately affected, while continuing the progress we have made in improving
   the overall health of the American people. As a key part of this effort, the budget includes $35 million, a
   17-percent increase over 2000, for demonstration projects (begun in 1999) to better address racial
   disparities in health.


  ----------------------------------------------------------------------

[[Page 137]]


  ----------------------------------------------------------------------

                              Building One America for the 21st Century--Continued



   Closing the Education Opportunity Gap. Increases in funding for major education initiatives,
   including school construction and class size reduction, will significantly benefit minority groups. Other
   targeted programs also receive generous funding increases, including a $823 million increase in the Hispanic
   Education Action Plan and a $20 million increase in funding for Historically Black Colleges and Universities.

As these efforts continue, many other programs included by the President in the budget and described in these
 chapters will advance these goals to realize the potential of One America in the 21st Century.


  ----------------------------------------------------------------------
