Letter to the President of the Senate and the Speaker of the House Transmitting a General Revenue Sharing Bill.

I AM transmitting herewith a draft bill to carry out the program of general revenue sharing as explained in my message to the Congress of February 4, 1971.

This general revenue sharing bill is one of the twin pillars of the total $16 billion revenue sharing proposal, representing a new and dramatic reorientation of our Federal system by strengthening State and local governments. It would provide to those governments $5 billion during its first full year of operation and would be based each year on a designated percentage of the Nation's taxable personal income--thus representing new funds without requiring new taxes or transfers of funds from existing Federal programs. No program or project restrictions would be placed on general revenue sharing funds.

The details of this proposal have been developed in close consultation with city, county, and State officials from across the country and in discussions with members of Congress. They are explained in the enclosed description and section-by-section analysis of the bill.

As I said in my recent State of the Union message:

"The time has come for a new partnership between the Federal Government and the States and localities--a partnership in which we entrust States and localities with a larger share of the Nation's responsibilities and in which we share our Federal revenues with them so they can meet those responsibilities."

I strongly urge prompt and favorable action by the Congress on the General Revenue Sharing Act of 1971.

Sincerely,

RICHARD NIXON