§3243. Grants by Secretary

(a) Eligible recipients; execution of development plan; use; method of payment

(1) The Secretary is authorized to make grants directly to any eligible recipient in an area (A) which the Secretary has determined has experienced, or may reasonably be foreseen to be about to experience, a special need to meet an expected rise in unemployment, or other economic adjustment problems (including those caused by any action or decision of the Federal Government), or (B) which the Secretary determines has demonstrated long-term economic deterioration, to carry out or develop a plan which meets the requirements of subsection (b) of this section and which is approved by the Secretary to use such grants for any of the following: public facilities, public services, business development, planning, unemployment compensation (in accordance with subsection (d) of this section), rent supplements, mortgage payment assistance, research, technical assistance, training, relocation of individuals, and businesses, and other assistance which demonstrably furthers the economic adjustment objectives of this subchapter.

(2)(A) Such grants may be used in direct expenditures by the eligible recipient or through redistribution by it to public and private entities in grants, loans, loan guarantees, payments to reduce interest on loan guarantees, or other appropriate assistance, but no grant shall be made by an eligible recipient to a private profitmaking entity.

(B) Grants for unemployment compensation shall be made to the State. Grants for any other purpose shall be made to any appropriate eligible recipient capable of carrying out such purpose.

(b) Criteria for approval of plan

No plan shall be approved by the Secretary under this section unless such plan shall-

(1) identify each economic development and adjustment need of the area for which assistance is sought under this subchapter;

(2) describe each activity planned to meet each such need;

(3) explain the details of the method of carrying out each such planned activity;

(4) contain assurances satisfactory to the Secretary that the proceeds from the repayment of loans made by the eligible recipient with funds granted under this subchapter will be used for economic adjustment; and

(5) be in such form and contain such additional information as the Secretary shall prescribe.

(c) Coordination of activities with regional commissions, States, etc.

The Secretary to the extent practicable shall coordinate his activities in requiring plans and making grants and loans under this subchapter with regional commissions, States, economic development districts and other appropriate planning and development organizations.

(d) Transfer of funds; availability of assistance to qualified individuals; limitation of amounts; administration by State agencies

In each case in which the Secretary determines a need for assistance under subsection (a) of this section due to an increase in unemployment and makes a grant under this section, the Secretary may transfer funds available for such grant to the Secretary of Labor and the Secretary of Labor is authorized to provide to any individual unemployed as a result of the dislocation for which such grant is made, such assistance as he deems appropriate while the individual is unemployed. Such assistance as the Secretary of Labor may provide shall be available to an individual not otherwise disqualified under State law for unemployment compensation benefits, as long as the individual's unemployment caused by the dislocation continues or until the individual is reemployed in a suitable position, but no longer than one year after the unemployment commences. Such assistance for a week of unemployment shall not exceed the maximum weekly amount authorized under the unemployment compensation law of the State in which the dislocation occurred, and the amount of assistance under this subsection shall be reduced by any amount of unemployment compensation or of private income protection insurance compensation available to such individual for such week of unemployment. The Secretary of Labor is directed to provide such assistance through agreements with States which, in his judgment, have an adequate system for administering such assistance through existing State agencies.

(Pub. L. 89–136, title IX, §903, as added Pub. L. 93–423, §12, Sept. 27, 1974, 88 Stat. 1164 ; amended Pub. L. 94–487, title I, §121(b), (c), Oct. 12, 1976, 90 Stat. 2336 .)

Amendments

1976-Subsec. (a)(1). Pub. L. 94–487, §121(a), (b), inserted "(A)" after "recipient in an area", "or (B) which the Secretary determines has demonstrated long-term economic deterioration" after "the Federal Government)", "and businesses" after "relocation of individuals", and substituted "and other assistance which demonstrably furthers the economic adjustment objectives of this subchapter" for "and other appropriate assistance" after "and businesses".

Subsec. (a)(2)(A). Pub. L. 94–487, §121(c), inserted "payments to reduce interest on loan guarantees" after "loan guarantees".

Section Referred to in Other Sections

This section is referred to in section 3222 of this title.