Fiscal Assistance to State and Local Governments White House Statement on the House Government Operations Committee' s Approval of Legislation.

The House Government Operations Committee today reported, by a vote of 27 to 12, legislation that would provide countercyclical aid to State and local governments and targeted fiscal assistance to the most distressed cities and counties. The bill was introduced by the leadership of the House Government Operations Committee and is supported by the administration.

The legislation would provide up to $1 billion to State and local governments if the economy goes into a recession. It also would provide $250 million to cities and counties that experience high unemployment. The legislation would provide essential aid to most needy cities, counties, and rural towns, and help them maintain essential police, fire, and sanitation services, and prevent layoffs of essential employees.

The President expressed his appreciation to Chairman Jack Brooks and Chairman L. H. Fountain for their cooperation and fine work on this legislation and his hope that the legislation will move quickly through the House Rules Committee and the House floor, so that the Congress can complete action on this legislation by the end of this year.