[Congressional Record Volume 149, Number 160 (Thursday, November 6, 2003)]
[Senate]
[Pages S14179-S14180]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DASCHLE (for Mr. Kerry):
  S. 1838. A bill to require payments to State and local governments 
for infrastructure and social services needs in the same amount as the 
amount of relief and reconstruction funds provided to Iraq; to the 
Committee on Finance.
  (At the request of Mr. Daschle, the following statement was ordered 
to be printed in the Record.)
 Mr. KERRY. Mr. President, rebuilding Iraq is critical to peace 
and stability in the Mideast and to help win the war on terrorism. 
Today, American families and American cities are also hurting and I 
believe they deserve the same assistance we are providing for families 
and cities in Iraq. While keeping our commitments abroad, we must not 
neglect our homeland.
  Today, President Bush signed into law an $87 billion supplemental 
appropriations bill that includes $20.3 billion for reconstructing Iraq 
and to assist Iraqi families. I opposed this legislation because I do 
not believe this plan is the most effective way to protect American 
soldiers and to advance our interests. Providing assistance to help 
rebuild Iraq is the right thing to do; however, we must also provide 
equal consideration and equal funding to resolve America's domestic 
problems. That is why I am introducing the American Parity Act to 
ensure that any additional spending for Iraq's postwar reconstruction 
plan is balanced dollar-for-dollar with new investments in education, 
health care, transportation, housing, social services and public safety 
needs across the United States.
  President Bush's economic approach has left State and city 
governments facing billions in budget deficits forced lay offs, 
education cuts, Medicaid cuts, reductions in critical social service 
programs and tax increases.
  State and city governments need our help to protect their public 
services, rebuild America's roads and bridges, and ensure resources are 
available to help unemployed and impoverished Americans. My legislation 
will authorize payments to States and cities to assist them with their 
social service and infrastructure needs in the same amount as provided 
for relief and reconstruction in Iraq. Local governments will receive 
at least one-third of the total funds authorized.
  These funds will be used to help America's children, seniors, and 
struggling families who depend upon affordable health care, quality 
education and public transportation programs that are facing massive 
cuts in order to balance state and local budgets across the Nation. 
These funds will assist in the development of our economy and create 
jobs.
  Health insurance has become too expensive. Double-digit increases in 
health care premiums make it hard for Americans and businesses alike to 
afford health care. Today, more than 44 million Americans have no 
health insurance. More than ever, these Americans need access to 
Medicaid and other health care programs that help with the high cost of 
prescription drugs. However, many of these programs are endangered by 
state and local budget cuts. The American Parity Act will help State 
and local governments continue to provide health care assistance.

[[Page S14180]]

  In our changing global economy, every American needs access to 
quality schools and advanced skills to succeed in our rapidly changing 
economy. In order for our American business to grow, we need workers to 
be more innovative and more productive than those of our competitors. 
My legislation will help cities provide additional resources to improve 
educational programs, modernize and rebuild crumbling schools, reduce 
class size, improve special education and help pay teachers.
  Our Nation is facing an affordable housing crisis. Recent changes in 
the housing market have limited the availability of affordable rental 
housing across the country and have dramatically increased the cost of 
those that remain. In 2001, more than 14 million families spent over 
half of their income on housing. This bill will provide funding so that 
states and cities produce housing for working families.
  We must show the same commitment to rebuilding Main Street as we have 
shown in rebuilding Iraq. American citizens deserve access to the same 
benefits and services we are so nobly providing to the people of Iraq. 
The American Parity Act will help States and cities cope with their 
current fiscal crisis and help ease potential cuts in programs critical 
to the most vulnerable in our Nation.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was order to be printed in the 
Record, as follows:

                                S. 1838

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. FINDINGS.

       The Congress finds the following:
       (1) The President has proposed a multibillion dollar 
     reconstruction project for Iraq.
       (2) The President's plan includes resources to rebuild 
     potable water and wastewater treatment facilities; schools 
     and health facilities; ports and airports; the electric power 
     system, roads, and bridges; railroad infrastructure; solid 
     waste management services; irrigation systems; and selected 
     local government buildings.
       (3) State and local governments in the United States have 
     their own unmet infrastructure and social services needs.
       (4) State and local governments represent a significant 
     segment of the national economy whose economic health is 
     essential to national economic prosperity.
       (5) Present national economic problems have imposed 
     considerable hardships on State and local government budgets.
       (6) Those governments, because of their own fiscal 
     difficulties, are being forced to take budget-related actions 
     which tend to undermine Federal Government efforts to 
     stimulate the economy.
       (7) Efforts to stimulate the economy through reductions in 
     Federal Government tax obligations or increased spending on 
     Federal programs are weakened when State and local 
     governments are forced to increase taxes or cut spending.
       (8) Efforts by the Federal Government to stimulate the 
     economic recovery will be substantially enhanced by a program 
     of emergency Federal Government assistance to State and local 
     governments to help prevent those governments from taking 
     budget-related actions which undermine the Federal Government 
     efforts to stimulate economic recovery.
       (9) State and local governments deserve, at a minimum, the 
     same level of Federal investment to address infrastructure 
     and social services shortfalls as the amount of relief and 
     reconstruction funds provided to Iraq.

     SEC. 2. FINANCIAL ASSISTANCE AUTHORIZED.

       (a) Payments to State and Local Governments.--The Secretary 
     of the Treasury shall, in accordance with the provisions of 
     this Act, make payments to States and local governments to 
     coordinate budget-related actions by such governments with 
     Federal Government efforts to stimulate economic recovery.
       (b) Authorization of Appropriation.--There is authorized to 
     be appropriated to the Secretary of the Treasury for fiscal 
     year 2003 for payments under this Act an amount equal to at 
     least the total amount appropriated for fiscal year 2003 
     under the heading ``Iraq Relief and Reconstruction Fund'' in 
     the Emergency Wartime Supplemental Appropriations Act, 2003, 
     and any amounts appropriated for such Fund in any subsequent 
     appropriation Act. Such amounts shall be in addition to, and 
     not in lieu of, other amounts appropriated for payments to 
     States and local governments.
       (c) Availability to Local Governments.--Not less than one-
     third of the amount appropriated pursuant to the 
     authorization in subsection (b) shall be made available to 
     local governments under the applicable laws of a given State.

     SEC. 3. ALLOCATION.

       The Secretary of the Treasury shall establish a formula, 
     within 30 days after the date of the enactment of this Act, 
     for determining the allocation of payments under this Act. 
     The formula shall give priority weight to the following 
     factors:
       (1) The unemployment rate in relation to the national 
     average unemployment rate.
       (2) The duration of the unemployment rate above such 
     average.
       (3) Median income.
       (4) Population.
       (5) The poverty rate.

     SEC. 4. USE OF FUNDS BY STATE AND LOCAL GOVERNMENTS.

       (a) In General.--Funds received under this Act may be used 
     only for priority expenditures. For purposes of this Act, the 
     term ``priority expenditures'' means only--
       (1) ordinary and necessary maintenance and operating 
     expenses for--
       (A) primary, secondary, or higher education, including 
     school building renovation;
       (B) public safety;
       (C) public health, including hospitals and public health 
     laboratories;
       (D) social services for the disadvantaged or aged;
       (E) roads, transportation, and water infrastructure; and
       (F) housing; and
       (2) ordinary and necessary capital expenditures authorized 
     by law.
       (b) Certifications by State and Local Governments.--The 
     Secretary of the Treasury may accept a certification by the 
     chief executive officer of a State or local government that 
     the State or local government has used the funds received by 
     it under this Act only for priority expenditures, unless the 
     Secretary determines that such certification is not 
     sufficiently reliable to enable the Secretary to carry out 
     this Act. The Secretary shall prescribe by rule the time and 
     manner in which the certification must be filed.

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