42 U.S.C. § 6735 — Program studies and recommendations; evaluation; countercyclical study

(a) The Comptroller General of the United States must investigate how emergency support grants affect State^* and local governments and the national economy. Before and during the investigation, the Comptroller General must consult and coordinate with the Congressional Budget Office and the Advisory Commission on Intergovernmental Relations. Within one year after July 22, 1976, the Comptroller General must report the investigation’s results to Congress, along with an evaluation of the program’s macroeconomic effect and recommendations for improving similar programs. Upon reasonable request, all United States officers and employees must provide the Comptroller General with all information, reports, data, and other material needed to carry out this subsection.

(b) The Congressional Budget Office and the Advisory Commission on Intergovernmental Relations must study the most effective ways for the Federal Government to stabilize the national economy during periods of rapid economic growth and high inflation through programs directed at State and local governments. The study must compare how effective alternative factors are for triggering and measuring the fiscal-coordination problem addressed by this program, and must examine the recession’s effect on State and local spending. Before and during the study, the Congressional Budget Office and the Advisory Commission must consult and coordinate with the Comptroller General. They must report the study’s results to Congress within two years after July 22, 1976. The study must include the Comptroller General’s opinions about it.

(c) In consultation with the Secretary^* of Commerce, the Secretary must investigate—

(1) how much the allocation of funds under this chapter could be more precisely related to actual economic conditions by using data on overall declines in private real wages and salaries;

(2) how much other factors, such as relative tax effort, should also be included in this chapter’s allocation system; and

(3) the availability and reliability of data about Puerto Rico, Guam, the Virgin Islands, American Samoa, and the Trust Territory of the Pacific Islands, and how properly those territories could be included in the regular allocation system for the several States.

The investigation’s results must be submitted to Congress no later than March 1, 1978, so they will be available while Congress considers extending this chapter beyond the fiscal year ending September 30, 1978.