§ 6506. — Development assistance.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 31USC6506]
TITLE 31--MONEY AND FINANCE
SUBTITLE V--GENERAL ASSISTANCE ADMINISTRATION
CHAPTER 65--INTERGOVERNMENTAL COOPERATION
Sec. 6506. Development assistance
(a) The economic and social development of the United States and the
achievement of satisfactory levels of living depend on the sound and
orderly development of urban and rural areas. When urbanization proceeds
rapidly, the sound and orderly development of urban communities depends
to a large degree on the social and economic health and the sound
development of smaller communities and rural areas.
(b) The President shall prescribe regulations governing the
formulation, evaluation, and review of United States Government programs
and projects having a significant impact on area and community
development (including programs and projects providing assistance to
States and localities) to serve most effectively the basic objectives of
subsection (a) of this section. The regulations shall provide for the
consideration of concurrently achieving the following specific
objectives and, to the extent authorized by law, reasoned choices shall
be made between the objectives when they conflict:
(1) appropriate land uses for housing, commercial, industrial,
governmental, institutional, and other purposes.
(2) wise development and conservation of all natural resources.
(3) balanced transportation systems, including highway, air,
water, pedestrian, mass transit, and other means to move people and
goods.
(4) adequate outdoor recreation and open space.
(5) protection of areas of unique natural beauty and historic
and scientific interest.
(6) properly planned community facilities (including utilities
for supplying power, water, and communications) for safely disposing
of wastes, and for other purposes.
(7) concern for high standards of design.
(c) To the extent possible, all national, regional, State, and local
viewpoints shall be considered in planning development programs and
projects of the United States Government or assisted by the Government.
State and local government objectives and the objectives of regional
organizations shall be considered within a framework of national public
objectives expressed in laws of the United States. Available projections
of future conditions in the United States and needs of regions, States,
and localities shall be considered in plan formulation, evaluation, and
review.
(d) To the maximum extent possible and consistent with national
objectives, assistance for development purposes shall be consistent with
and further the objectives of State, regional, and local comprehensive
planning. Consideration shall be given to all developmental aspects of
our total national community, including housing, transportation,
economic development, natural and human resources development, community
facilities, and the general improvement of living environments.
(e) To the maximum extent practicable, each executive agency
carrying out a development assistance program shall consult with and
seek advice from all other significantly affected executive agencies in
an effort to ensure completely coordinated programs. To the extent
possible, systematic planning required by individual United States
Government programs (such as highway construction, urban renewal, and
open space) shall be coordinated with and, to the extent authorized by
law, made part of comprehensive local and areawide development planning.
(f) When a law of the United States provides that both a special-
purpose unit of local government and a unit of general local government
are eligible to receive a loan or grant, the head of an executive agency
shall make the loan or grant to the unit of general local government
instead of the special-purpose unit of local government in the absence
of substantial reasons to the contrary.
(g) The President may designate an executive agency to prescribe
regulations to carry out this section.
(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 1008.)
Historical and Revision Notes
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Revised Section Source (U.S. Code) Source (Statutes at Large)
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6506(a).............................. 42:4231(a)(1st, 2d sentences). Oct. 16, 1968, Pub. L. 90-577, Secs. 401-
403, 82 Stat. 1103.
6506(b).............................. 42:4231(a)(3d-last sentences).
6506(c).............................. 42:4231(b).
6506(d).............................. 42:4231(c).
6506(e).............................. 42:4231(d), (e).
6506(f).............................. 42:4232.
6506(g).............................. 42:4233.
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In subsection (a), the words ``United States'' are substituted for
``the Nation'' for consistency. The word ``When'' is substituted for
``in a time'' for clarity.
In subsection (b), before clause (1), the word ``therefore'' is
omitted as unnecessary. The word ``regulations'' is substituted for
``rules and regulations'' for consistency in the revised title and with
other titles of the United States Code. In clause (2), the words ``all
natural resources'' are substituted for ``natural resources, including
land, water, minerals, wildlife, and others'' to eliminate unnecessary
words.
In subsection (c), the words ``fully'', ``taken into account'', and
``evaluated'' are omitted as surplus. The words ``development programs
and projects of the United States Government or assisted by the
Government'' are substituted for ``Federal or federally assisted
development programs and projects'', and the words ``laws of the United
States'' are substituted for ``Federal law'', for consistency in the
revised title.
In subsection (d), the word ``assistance'' is substituted for
``federal aid'' because of the definition in section 6501(1) of the
revised title.
In subsection (e), the words ``executive agency'' are substituted
for ``Federal department and agency'' and ``Federal departments and
agencies'' because of the definition in sections 102 and 6501(3) of the
revised title. The words ``To the extent'' are substituted for ``Insofar
as'' for consistency.
In subsection (f), the words ``law of the United States'' are
substituted for ``Federal law'' for consistency.
In subsection (g), the words ``Office of Management and Budget . . .
other'' are omitted as surplus.
Ex. Ord. No. 12372. Intergovernmental Review of Federal Programs
Ex. Ord. No. 12372, July 14, 1982, 47 F.R. 30959, as amended by Ex.
Ord. No. 12416, Apr. 8, 1983, 48 F.R. 15587, provided:
By the authority vested in me as President by the Constitution and
laws of the United States of America, including Section 401(a) of the
Intergovernmental Cooperation Act of 1968 (42 U.S.C. 4231(a)) [31 U.S.C.
6506(a) and (b)], Section 204 of the Demonstration Cities and
Metropolitan Development Act of 1966 (42. U.S.C. 3334) and Section 301
of Title 3 of the United States Code, and in order to foster an
intergovernmental partnership and a strengthened federalism by relying
on State and local processes for the State and local government
coordination and review of proposed Federal financial assistance and
direct Federal development, it is hereby ordered as follows:
Section 1. Federal agencies shall provide opportunities for
consultation by elected officials of those State and local governments
that would provide the non-Federal funds for, or that would be directly
affected by, proposed Federal financial assistance or direct Federal
development.
Sec. 2. To the extent the States, in consultation with local general
purpose governments, and local special purpose governments they consider
appropriate, develop their own processes or refine existing processes
for State and local elected officials to review and coordinate proposed
Federal financial assistance and direct Federal development, the Federal
agencies shall, to the extent permitted by law:
(a) Utilize the State process to determine official views of State
and local elected officials.
(b) Communicate with State and local elected officials as early in
the program planning cycle as is reasonably feasible to explain specific
plans and actions.
(c) Make efforts to accommodate State and local elected officials'
concerns with proposed Federal financial assistance and direct Federal
development that are communicated through the designated State process.
For those cases where the concerns cannot be accommodated, Federal
officials shall explain the bases for their decision in a timely manner.
(d) Allow the States to simplify and consolidate existing Federally
required State plan submissions. Where State planning and budgeting
systems are sufficient and where permitted by law, the substitution of
State plans for Federally required State plans shall be encouraged by
the agencies.
(e) Seek the coordination of views of affected State and local
elected officials in one State with those of another State when proposed
Federal financial assistance or direct Federal development has an impact
on interstate metropolitan urban centers or other interstate areas.
Existing interstate mechanisms that are redesignated as part of the
State process may be used for this purpose.
(f) Support State and local governments by discouraging the
reauthorization or creation of any planning organization which is
Federally-funded, which has a Federally-prescribed membership, which is
established for a limited purpose, and which is not adequately
representative of, or accountable to, State or local elected officials.
Sec. 3. (a) The State process referred to in Section 2 shall include
those where States delegate, in specific instances, to local elected
officials the review, coordination, and communication with Federal
agencies.
(b) At the discretion of the State and local elected officials, the
State process may exclude certain Federal programs from review and
comment.
Sec. 4. The Office of Management and Budget (OMB) shall maintain a
list of official State entities designated by the States to review and
coordinate proposed Federal financial assistance and direct Federal
development. The Office of Management and Budget shall disseminate such
lists to the Federal agencies.
Sec. 5. (a) Agencies shall propose rules and regulations governing
the formulation, evaluation, and review of proposed Federal financial
assistance and direct Federal development pursuant to this Order, to be
submitted to the Office of Management and Budget for approval.
(b) The rules and regulations which result from the process
indicated in Section 5(a) above shall replace any current rules and
regulations and become effective September 30, 1983.
Sec. 6. The Director of the Office of Management and Budget is
authorized to prescribe such rules and regulations, if any, as he deems
appropriate for the effective implementation and administration of this
Order and the Intergovernmental Cooperation Act of 1968 [31 U.S.C. 6501
et seq.]. The Director is also authorized to exercise the authority
vested in the President by Section 401(a) of that Act (42 U.S.C.
4231(a)) [31 U.S.C. 6506(a) and (b)] in a manner consistent with this
Order.
Sec. 7. The Memorandum of November 8, 1968, is terminated (33 Fed.
Reg. 16487, November 13, 1968). The Director of the Office of Management
and Budget shall revoke OMB Circular A-95, which was issued pursuant to
that Memorandum. However, Federal agencies shall continue to comply with
the rules and regulations issued pursuant to that Memorandum, including
those issued by the Office of Management and Budget, until new rules and
regulations have been issued in accord with this Order.
Sec. 8. The Director of the Office of Management and Budget shall
report to the President by September 30, 1984 on Federal agency
compliance with this Order. The views of State and local elected
officials on their experiences with these policies, along with any
suggestions for improvement, will be included in the Director's report.
Ronald Reagan.
Section Referred to in Other Sections
This section is referred to in title 16 sections 460u-21, 1456;
title 40 section 3306; title 43 section 1721.
