COMMUNITY ACTION-LOCAL INITIATIVE PROGRAMS (SECTION 221)

Effective immediately, all new OEO funding for Section 221 activities (except for Indian programs) will be for a period not to exceed December 31, 1973. with no grant to receive funding for a period greater than 6 months. Grants made after today will include closeout notifications; grantees previously funded on an interim basis for six months may receive up to an additional six months funding prior to their termination. Grantees already funded for a full program year will be notified in writing that their current grant is a terminal award from OEO. No new awards for program purposes will be made under this authority after June 30, 1973. Effective July 1, 1973 Federal support under this section of the Economic Opportunity Act will cease. (Funding for Indian programs of the Office of Economic Opportunity is discussed in a separate section below.)

TRAINING AND TECHNICAL ASSISTANCE

Training and technical assistance provided under Section 230 of the Economic Opportunity Act will be discontinued before the end of this fiscal year. Obligations for this support activity will total $6 million in fiscal year 1973.

SENIOR OPPORTUNITIES AND SERVICES

The Senior Opportunities and Services projects now funded by OEO will receive $8 million in fiscal year 1973 with full twelve-month grants being awarded during the remainder of the year. No new awards will be made by OEO for SOS programs after July 1, 1973. It is anticipated that by that date funds will be available to continue elderly nutrition efforts from the $99.6 million appropriation requested for that purpose by HEW. Other service projects for the elderly will be funded directly by the Administration on the Aging (AOA) beginning in fiscal year 1974. Although the $8 million SOS program will not be refunded, the AOA budget will expand from $44.7 million in 1972 to $195.6 million in 1974 and is expected to carry forward the purposes previously pursued through the SOS program.

STATE ECONOMIC OPPORTUNITY OFFICES

Consistent with the decision to make continued funding for Local Initiative programs a local option, funding for State Economic Opportunity Offices will not be provided by the Federal Government after June 30, 1973. No new awards will be made in fiscal year 1974. Existing offices may be continued at the option of State governments from State revenue sharing allocations. It is expected that $12 million will be obligated for this program during fiscal year 1973. Notification of termination of OEO funding effective with awards made during fiscal year 1973 will be forwarded to all grantees.

NATIONAL SUMMER YOUTH SPORTS PROGRAM

OEO will continue support for this program in the summer of 1973 under a dele gation agreement with the Department of Health, Education, and Welfare. No funds are requested for this activity in fiscal year 1974.

SPECIAL INDIAN PROGRAMS

OEO programs serving Indian people will be continued by the Department of Health, Education, and Welfare in fiscal year 1974, and converted to a pilot effort funded directly to Indian tribal councils. A total of $32.1 million is requested for appropriation to that agency in fiscal year 1974, an increase of $9.7 million over the level to be obligated by OEO in fiscal 1973. The increase will fund a major expansion of efforts to assist in Indian self-determination, efforts designed to enable Indian people to gain control and direction of the institutions and programs which affect their daily lives through their own duly constituted instruments of self-government. In addition to this program expansion, funding will also be available to continue nutrition assistance previously afforded via the EFMS pro gram, to support an expanded Indian urban center effort, and to continue and expand vital programs previously operated under the asupices of Indian Community Action Agencies.

MIGRANT AND SEASONAL FARMWORKERS PROGRAMS

Migrant and seasonal farmworkers programs previously funded by OEO will be eligible for continuation under the direction of the Department of Labor in fiscal year 1974. A total of $40 million is requested for direct appropriation to Labor, an increase over the current year ОEO level of $36.3 million. The additional funding will provide a significant expansion in the High School Equivalency (HEP) program, permitting the establishment of 13 additional projects in 1974. Other Migrants programs providing nutritional assistance, farmworker housing, day care, educational and manpower support will be eligible for continuation at their current levels.

COMMUNITY ECONOMIC DEVELOPMENT

OEA plans to invest $36.7 million in Community Economic Development and related research and demonstration activities during the balance of fiscal 1973. Beginning July 1, 1973, OEO support for Community Development Corporations will cease. New legislation will be submitted to Congress which would authorize the Office of Minority Business Enterprise in the Department of Commerce to continue funding of Community Development Corporations, as well as current OEO research and demonstration activities in the area of economic development. This consolidation of effort with OMBE will increase the effectiveness of Federal programs designed to bring minority entrepreneurs into the mainstream of economic life. Approximately $39.3 million is requested for direct appropriation to OMBE in fiscal year 1974 for support of these OEO activities, an increase of $2.6 million over current levels. Most of the increase is anticipated to be utilized to permit concentration of funding on the more successful community development models to test their ability to accelerate the rate at which impact can be created, and will enable continued research and development.

LEGAL SERVICES

Estimated obligations for Legal Services programs during fiscal year 1973 will total $73.8 million, including a one-time obligation of $2.3 million available for special legal services experiments. New legislation will be submitted to establish a Legal Services corporation, independent of OEO, to be effective as of July 1, 1973. Consequently, $71.5 million is requested in the budget for HEW for fiscal year 1974 for subsequent assignment to the Legal Services program in its new location.

ALCOHOLIC COUNSELING AND RECOVERY

During fiscal year 1973, OEO will transfer $14.4 million to the National Institute for Alcoholism and Alcohol Abuse within HEW to sustain projects serving low income persons. Funds for these projects for fiscal year 1974 are requested as part of the HEW budget for NIAAA.

EMERGENCY FOOD AND MEDICAL SERVICES

During fiscal year 1973, $24 million is being obligated for Emergency Food and Medical Services projects from funds made available in a supplemental appropriation to the Agency in June of 1972 (and available for fiscal year 1973 utilization) in combination with new funding from the fiscal year 1973 appropriation. No funds are requested for this program in fiscal year 1974, except that projects serving Indians and Migrants will be continued from funds requested for direct appropriation to the Departments of Labor and Health, Education, and Welfare.

DRUG REHABILITATION ACTIVITIES

OEO is funding projects during fiscal year 1973 in the field of drug treatment and rehabilitation at an annual level of $23 million. In fiscal year 1974. $29.3 million is included in the budget of the National Institute of Mental Health (NIMH) for continuation of drug rehabilitation activities previously funded by OEO. As of July 1, 1973, all OEO activities will have been transferred to NIMH.

COMPREHENSIVE HEALTH SERVICES AND FAMILY PLANNING

Funding for the comprehensive health projects and family planning services will be included in HEW's health services delivery budget. This assures that all federally supported health centers are funded by the same agency and that Federal funds to finance the direct delivery of health services will be used to benefit the greatest number of recipients.

COMPREHENSIVE HEALTH SERVICES

OEO will obligate $85.5 million during fiscal year 1973 to permit full refunding of existing comprehensive health projects. This level provides support to approximately 60 large and small urban and rural projects distributed throughout the United States. These projects generally provide diagnostic, curative and preventive medical and dental care, and supportive services such as laboratory, x-ray. pharmacy, social/mental health services and outreach services. In addition to the health services delivery programs, health manpower development programs and several technical assistance grants and contracts are being continued. The fiscal year 1974 request for HEW includes $102.6 million to continue OE activities to be transferred as of June 30, 1973. In addition, funding is provided within HEW for comprehensive health services projects transferred from OEO to HEW in prior years. Essential OEO health manpower activities will b supported within the Bureau of Health Manpower Education in the National Institutes of Health.

FAMILY PLANNING

During fiscal year 1973, $15 million is obligated for family planning, primarily to allow for continued support of 220 community and research and demonstration projects. Projects formerly funded by OEO may be continued during fiscal year 1974 through direct appropriation of $15 million to HEW. In addition, funding is provided within HEW for family planning projects transferred from OEO to HEW in prior years.

RESEARCH AND DEMONSTRATION

Fiscal year 1974 funding for OEO research and demonstration activities will total $78 million, an increase of $11.3 million over the current year level of effort. Personnel will be eligible for transfer to operating agencies along with increased support funds. There they will be able to have more direct impact on operationa. programs than would have been the case had the function remained with OEO, Specifically, the fiscal year 1974 request for the National Institute of Education includes $23.9 million to continue the educational voucher demonstration and other projects designed to test ways to provide equal educational opportunities Office of Child Development includes $12.6 million to continue experiments and studies of alternative approaches to day care and child development; Office of the Secretary (HEW) includes $22.7 million to continue policy studies on the causes of poverty and develop ways to overcome environmental health problems which confront disadvantaged persons. Funding is also provided for a heal insurance experiment to measure the cost to the Government and consumers of alternative plans and the resultant change in the health status of families: Department of Labor includes $5.3 million to continue OEO research in the fields of manpower training and labor force participation; and Department of Housing and Urban Development includes $13.4 million to continue efforts to test wayS to provide adequate housing for disadvantaged persons.

RURAL LOANS

The Title III-A rural loan program administered through delegation by the Farmers' Home Administration was discontinued in 1971. Although new loa?> have not been made since that date, several thousand outstanding loans st require service and collection. In fiscal year 1974, $2.5 million is requested for direct appropriation to FIA to cover ongoing administrative costs of this program.

APPROPRIATION TO GENERAL SERVICES ADMINISTRATION

Effective July 1, 1973, the General Services Administration will have funds to assume Federal responsibility for termination of all former OEO activities no specifically continued in fiscal year 1974 in other Federal agencies. Remaining

OEO personnel not terminated or transferred to other Federal agencies, but required to liquidate Federal responsibilities with respect to terminated OEO programs, will be transferred to GSA. An appropriation of $33 million to GSA for liquidation of former OEO activities will be necessary. The requested appropriation will support the Federal personnel administering the program close-out as wll as additional program liquidation requirements. (See following section for discussion of employment.)

EMPLOYMENT CEILING

The OEO ceiling for end-of-year employment (June 30) for fiscal year 1973 is 1,500 positions, including those positions transferred to recipient agencies with delegated programs. Major reductions from current on-board strength (approximately 2,053 people) will occur in direct and support positions for programs to be terminated before the beginning of fiscal year 1974. Of the 1,500 on-board strength as of June 30, 1973, 834 slots will be transferred to the General Services Administration. A total of 666 direct and support slots will be shifted to the various Federal Departments and Independent Agencies which will be continuing former OEO activities in fiscal year 1974; this figure is expected to remain stable during fiscal year 1974. The personnel complement transferred to GSA will be reduced to 296 by June 30, 1974, as individual grantee liquidations are completed. Thus, total Federal employment for former OEO activities will be 839 as of the end of fiscal 1974, with an additional 123 employees scheduled for assignment at that date to the Legal Services corporation. Distribution of end of year ceilings by recipient agency are listed on the following page.

DEAR SIR: Mr. Caspar W. Weinberger, in his appearance before the Senate Labor and Public Welfare Committee on January 17, 1973, stated that every President since Thomas Jefferson has impounded funds.

I request that you inform me which Presidents have impounded funds, specific instances of such impounding, the dates or periods when the impoundment occurred, the amounts impounded, the projects or programs affected, and the reasons stated by those prior Presidents for the impoundments.

I assume, since Mr. Weinberger made this statement to the Senate Labor and Public Welfare Committee, that this information is in the possession of the Office of Management and Budget and, therefore, complying with this request will present no difficulty to your office.

If possible, I should like to have the requested list prior to the appearance of Mr. Weinberger, or Mr. Ash, at the Subcommittee's scheduled hearings on Executive Impoundment of Appropriated Funds to be held January 30 and 31 and February 1 and 6, 1973. I also request that the designated witness be prepared to

comment upon historical examples of Executive impoundment, as well as those of the present Administration.

Sincerely yours,

SAM J. ERVIN, Jr., Chairman, Subcommittee on Separation of Powers.

THE WHITE HOUSE, Washington, January 31, 1973.

Hon. SAM J. ERVIN, Jr.,
U.S. Senator,
Washington, D.C.

DEAR SENATOR ERVIN: This is in response to your letter of January 24, 1973, addressed to the Director of the Office of Management and Budget. You requested information on the history of impoundments by the Executive Branch.

As submitted to your subcommittee two years ago, and appearing on page 102 of the record of the hearings then held, Presidential impounding can be traced back to 1803 when President Jefferson is known to have impounded funds. We also provided the subcommittee with other information and references at that time which indicated that the practice of impounding funds is not a new one. That is the information, pp. 103–133 of the hearing record, together with other material developed at the hearings, on which Mr. Weinberger based his statement to the Committee. Professor Joseph Cooper's statement for example, pp. 181-189, traces the history of impoundment from 1921; quite evidently the practice preceded that time.

Because it is such a common and indispensable element of executive management, it seems likely that most if not all Presidents have impounded funds for any number of reasons. The Office of Management and Budget, however, does not keep records of each specific impoundment from the beginning of the Republic. Indeed, the largest and most complete compilation of material we are aware of on the subject is the record of your subcommittee's hearings in 1971. Our current list will be transmitted to the Congress prior to February 10, as provided by the Congress in H.J. Res. 1.

Inasmuch as I will be giving the testimony before your Committee, I will be happy to discuss these points with you further when I appear before you later this week.

Sincerely,

ROY L. ASH,

Director-Designate, Office of Management and Budget.

OHIO CONFERENCE OF COMMUNITY DEVELOPMENT, INC.,
Columbus, Ohio, February 7, 1973.

Hon. SAM J. ERVIN, Jr.,
U.S. Senate,

Senate Office Building, Washington, D.C.

DEAR MR. ERVIN: As I am sure you are aware, one of the most serious and pressing problems confronting Ohio cities is the severe deterioration and blight affecting older neighborhoods. For over 20 years our prime tool for eliminating and preventing blight and physical and economic obsolescence has been the urban renewal program. At present thirty-three Ohio cities are engaged in community development activities to plan and carry-out the redevelopment and preservation of their older neighborhoods. Each of these cities holds membership in the Ohio Conference of Community Development, Inc. (formerly the Urban Renewal Association of Ohio, Inc.), which is a professional association founded in 1965 to serve local public agencies engaged in community development in the State of Ohio.

On January 25 the Ohio Conference of Community Development, Inc., met to discuss the implications of the President's impoundment of rehabilitation loan funds and moratoriums on subsidized housing and community development. It was agreed by all cities in attendance that the President's actions would severely affect the housing welfare of thousands of Ohio citizens, the successful rehabilitation and redevelopment of many Ohio cities, and the successful execution of