3706 to establish the third Monday in January as a federal holiday in King's honor was introduced in July 1983 and passed in the House on August 2, 1983.

Hall was defeated in her bid for reelection to the U.S. Congress in the Democratic primary in May 1984, narrowly losing to Peter Visclosky by 2,367 votes.

In 1985 she became the city clerk of Gary; however, she resigned the position in January 2003 after signing a plea agreement related to mail fraud.

[3][5] After completing her education, Katie and her husband, John, moved to Gary, Indiana, where she became a social studies teacher in the city's public schools.

[2][3] Hall's campaign for city councilwoman in 1972 ended in defeat, but two years later she sought a seat in the Indiana General Assembly and won.

Hall was a member of the House Committee of Post Office and Civil Service and chaired its Subcommittee on Census and Population.

[2][3] As a freshman congresswoman in 1983, Hall sponsored legislation and led the Capitol Hill drive to make Martin Luther King Jr.'s birthday a national holiday.

[2] (Legislators who opposed the previous bills largely argued against passage due to the cost of holiday and overtime pay for government employees, as well as the fixed date of January 15.)

On November 2, 1983, President Ronald Reagan signed the bill into law in ceremonies held in the White House Rose Garden in Washington, D.C.[3][7] In other legislation, Hall supported measures to reduce unemployment in her district, as well as efforts to reduce crime, substance abuse, and family bankruptcy.

[3] In May 1984, Hall faced two candidates in the Democratic primary for Indiana's 1st District seat as U.S. Representative to the 99th Congress: Peter Visclosky, a former aide to Congressman Benjamin, and Lake County prosecutor Jack Crawford.

[3] After concluding her term in Congress in 1985, Hall returned to public service and work in Gary, Indiana, as a social studies teacher.

[8] Katie Hall resigned as Gary's city clerk in January 2003 after signing a plea agreement related to mail fraud.