September 15, 1971

Report on Implementing the Emergency Employment Act. (P.L. 92-54) as of September 9, 1971)

The Department of Labor is pleased to make a detailed presentation of its efforts to implement the Emergency Employment Act. For completeness of the record we are submitting copies of the various issuances the Department has published regarding the Act. These include:

A. July 23 press release announcing State apportionments.

B. August 12 press release citing area apportionments.

C. Emergency Employment Act Regulations (29 CFR 55, August 14, 1971)
D. Program guidelines

E. Grant application forms

The Department is moving ahead very rapidly in the implementation of the Act. In order to grant funds to local governments quickly, we made initial grants to Program Agents of approximately 20 percent of the funds apportioned. The Appropriations Act was passed August 6; it was signed by the President August 9. On August 12 the area apportionments were announced; the same date the Regional Manpower Administrators began meeting with individual cities to negotiate grants. The first grants were signed Saturday, August 14; the first workers were hired Monday, August 16, in Patterson, New Jersey and in

Albuquerque, New Mexico. As of September 9, approximately $105 million had been granted to 595 Program Agents covering 27,000 jobs. Some 3,200 workers were employed.

We are now developing procedures for funding Sectio 6 grants and for using funds available under Section 5 for the discretionary use of the Secretary.

Enclosure No. 2

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We expect to complete the full funding of the $600 million apportioned

under Section 5 by October 1 and the Section 6 and discretionary

fund by November 1.

At the time of the hearing we will present a complete report of the status, including the amount funded, the number of jobs involved, the kinds of public service areas involved, the number of persons employed, and a discussion of future plans.

Responding to President Nixon's desire for fast action, Secretary of
Labor J. D. Hodgson today announced initial decisions implementing the
Emergency Employment Act signed by the President July 12.

On July 13 the President asked the Congress to move as expeditiously as possible to appropriate the full $1 billion authorized by the Act for this fiscal year.

The Secretary said the President had directed him to make plans to move as soon as the Congress has acted to distribute funds to States and localities.

Hodgson announced:

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The formula under which $600 million will be made available for use
in approximately 700 governmental units.

That all governmental units would be eligible to receive funds either

as agents directly designated to act for the Labor Department, such

as a governor, mayor, city manager, or county executive, or through
such an agent.

That "start-up" grants would be made available immediately for dis-
tribution upon approval by Congress of the requested appropriation.
Hodgson said the 700 governmental units will be composed of States,
cities with a population of at least 75,000, counties with a population of

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75,000 but not counting the population of a designated city within the county. Indian reservations also are eligible.

The Secretary said, "I urge these governmental units to begin planning immediately for the jobs to be filled by unemployed persons in their jurisdictions." Additional guidelines are being developed and will be issued shortly to expedite the creation of jobs for the unemployed, he said.

The bill signed by the President authorizes the expenditure of $2.25 billion over a two-year period to enable governmental units to hire more than 150,000 unemployed persons for transitional public service jobs.

Of this amount $250 million is for a special program to aid communities with more than 6 percent unemployment. Hodgson said guidelines for this program are in process of formulation. The law requires that 80 percent or $600 million of the remaining $750 million be apportioned to States and

communities.

The Secretary said, "We are moving as rapidly as we prudently can to put this public service program into operation. The President is acutely

aware of the pressing needs of those who want to work but cannot find a job

and of the strong need of State and local governments for additional personnel."

Secretary Hodgson noted that in signing the Act President Nixon said that "America needs more jobs, and it needs them now." The Act "will be speedy in its relief," the President declared, and the jobs it creates "will be real and steadying."

Funds will be distributed among States and designated areas on a two

part formula in which both the absolute numbers of unemployed persons and the