Section 702 of the Housing and Urban Development Act of 1965, as amended authorized grants to local public bodies for water and sewer facilities other than waste treatment works. Section 116 of the Housing and Community Development Act of 1974 termina this program on January 1, 1975 and specifies that no new grant commitments may be made after the termination date. Activities previously supported are eligible for assistance under the new community developmen block grant program, beginning January 1, 1975. Hence, the water and sewer program is not required to achieve national community developmen goals as established by Congress. To the extent necessary, balances could be used for payment into the Disaster Assistance Fund for emergency housing assistance as authorized by law. The U.S. District Court for the District of Columbia (Rooney, et al v. Lynn, Civil No. 990-73) has ordered that the grant program under the HUD Act of 1965 be resumed and that these funds be made available to eligible applicants. A motion for a stay, pending appeal, is currently before the D.C. Circuit Court. On the other hand, in the vetoed Agriculture Appropriations Act, 1975, Congress sought to reappropriate these funds to the Department of Agriculture and to Environmental Protection Agency for other purposes, thereby giving implied approval to terminatic of the HUD program. The funds are deferred pending the outcome of this litigation and determination by the Congress of the purposes for which: funds should be used. $401,734,000 of funds previously appropriated for this purpose will remain in reserve until final disposition of the funds is determined. Estimated Effects: Continued reservation of this authority will not interfere with the achievement of current goals in the community development area. Use of 2 the funds in reserve would result in the reactivation of a program which Congress has terminated on January 1, 1975; and could force the Departme to increase personnel or lengthen the time required to commence the new block grant program.. It would increase Federal outlays by an estimated $10 million in FY 1976 and $50 million in FY 1977. 17 This estimate is subject to change and may be adjusted once actual 1974 accounting data become available. Such adjustment will be reported when final figures-become-available. 42-275 O-74-9 Mr. WHITTEN. Gentlemen, the committee will come to order. We are following a little different procedure from what is being followed by some of the subcommittees. This is primarily because of the impact that would follow whatever the Congress may do in connection with the President's message. For some years this subcommittee has had jurisdiction over a number of the programs having to do with environmental protection, such as the water and sewer programs of HUD. I would like for the record to show the pertinent parts of the message sent to Congress by the President. The information follows:] DEFERRAL OF BUDGET AUTHORITY Deferral No.: D75-51 REPORT PURSUANT TO SEC. 1013 OF PUBLIC LAW 93-344 Agency: Department of Housing and Urban Development. Bureau: Community Planning and Development. Appropriation Title and Symbol: Grants for Basic Water and Sewer Facilities86X0125. New budget authority (Public Law Other budgetary resources-. Amount to be deferred part of year----. $401. 734, 000 1 401, 734, 000 1 This estimate is subject to change and may be adjusted once actual 1974 accounting data becomes available. Such adjustment will be reported when final figures become available. Justification Section 702 of the Housing and Urban Development Act of 1965, as amended, authorized grants to local public bodies of water and sewer facilities other than waste treatment works. Section 116 of the Housing and Community Development Act of 1974 terminates this program on January 1, 1975, and specifies that no new grant commitments may be made after the termination date. Activities previously supported are eligible for assistance under the new community development block grant program, beginning January 1, 1975. Hence, the water and sewer program is not required to achieve national community development goals as established by Congress. To the extent necessary, balances could be used for payment into the disaster assistance fund for emergency housing assistance as authorized by law. The U.S. District Court for the District of Columbia [Rooney, et al. v. Lynn, Civil No. 990-73] has ordered that the grant program under the HUD Act of 1965 be resumed and that these funds be made available to eligible applicants. A motion for a stay, pending appeal, is currently before the D.C. Circuit Court. On the other hand, in the vetoed Agriculture Appropriations Act, 1975, Congress sought to reappropriate these funds to the Department of Agriculture and to Environmental Protection Agency for other purposes, thereby giving implied approval to termination of the HUD program. The funds are deferred pending the outcome of this litigation and determination by the Congress of the purposes for which the funds should be used. $401,734,000 of funds previously appropriated for this purpose will remain in reserve until final disposition of the funds is determined. Estimated effects Continued reservation of this authority will not interfere with the achievement of current goals in the community development area. Use of the funds in reserve would result in the reactivation of a program which Congress has terminated on January 1, 1975; and could force the Department to increase personnel or lengthen the time required to commence the new block grant program. It would increase Federal outlays by an estimated $10 million in fiscal year 1976 and $50 million in fiscal year 1977. Mr. WHITTEN. I would also like for the record to show the pertinent parts of the Budget and Control Act that apply to the various subjects with which we deal today. [The information follows:] TITLE X-IMPOUNDMENT CONTROL PART A-GENERAL PROVISIONS DISCLAIMER SEC. 1001. Nothing contained in this Act, or in any amendments made by this Act, shall be construed as (1) asserting or conceding the constitutional powers or limitations of either the Congress or the President; (2) ratifying or approving any impoundment heretofore or hereafter executed or approved by the President or any other Federal officer or employee, except insofar as pursuant to statutory authorization then in effect; (3) affecting in any way the claims or defenses of any party to litigation concerning any impoundment; or (4) superseding any provision of law which requires the obligation of budget authority or the making of outlays thereunder. AMENDMENT TO ANTIDEFICIENCY ACT SEC. 1002. Section 3679(c)(2) of the Revised Statutes, as amended (31 U.S.C. 665), is amended to read as follows: ngs “(2) In apportioning any appropriation, reserves may be established solely to provide for contingencies, or to effect savings whenever saving are made possible by or through changes in requirements or greater efficiency of operations. Whenever it is determined by an officer designated in subsection (d) of this section to make apportionments and reapportionments that any amount so reserved will not be required to carry out the full objectives and scope of the appropriation concerned, he shall recommend the rescission of such amount in the manner provided in the Budget and Accounting Act, 1921, for estimates of appropriations. Except as specifically provided by particular appropriations Acts or other laws, no reserves shall be established other than as authorized by this subsection. Reserves established pursuant to this subsection shall be reported to the Congress in accordance with the Impoundment Control Act of 1974." 41 REPEAL OF EXISTING IMPOUNDMENT REPORTING PROVISION SEC. 1003. Section 203 of the Budget and Accounting Procedures Act of 1950 is repealed. PART B-CONGRESSIONAL CONSIDERATION OF PROPOSED RESCISSIONS, RESERVATIONS, AND DEFERRALS OF BUDGET AUTHORITY DEFINITIONS SEC. 1011. For purposes of this part— (1) "deferral of budget authority" includes (A) withholding or delaying the obligation or expenditure of budget authority (whether by establishing reserves or otherwise) provided for projects or activities; or (B) any other type of Executive action or inaction which effectively precludes the obligation or expenditure of budget authority, including authority to obligate by contract in advance of appropriations as specifically authorized by law; (2) "Comptroller General" means the Comptroller General of the United States; (3) "rescission bill" means a bill or joint resolution which only rescinds, in whole or in part, budget authority proposed to be rescinded in a special message transmitted by the President under section 1012, and upon which the Congress completes action before the end of the first period of 45 calendar days of continuous session of the Congress after the date on which the President's message is received by the Congress; (4) "impoundment resolution" means a resolution of the House of Representatives or the Senate which only expresses its disapproval of a proposed deferral of budget authority set forth in a special message transmitted by the President under section 1013; and (5) continuity of a session of the Congress shall be considered as broken only by an adjournment of the Congress sine die, and the days on which either House is not in session because of an adjournment of more than 3 days to a day certain shall be excluded in the computation of the 45-day period referred to in paragraph (3) of this section and in section 1012, and the 25-day periods referred to in sections 1016 and 1017(b)(1). If a special message is transmitted under section 1012 during any Congress and the last session of such Congress adjourns sine die before the expiration of 45 calendar days of continuous session (or a special message is so transmitted after the last session of the Congress adjourns sine die), the message shall be deemed to have been retransmitted on the first day of the succeeding Congress and the 45-day period referred to in paragraph (3) of this section and in section 1012 (with respect to such message) shall commence on the day after such first day. |