All of these grant-in-aid programs are now subject to periodic review by legislative committees of Congress. In the case of the Federal-Aid Airport Program, authorizations have been made for from two to five years, lately for three year periods. Thus, every three years the program is reviewed on its merits and in total by the Senate Commerce Committee and the House Interstate and Foreign Commerce Committee. The highway programs, with the exception of the Interstate Highway Program, are subject to biennial review and authorizations are made for two years at a time. And while authorizations for the Interstate Program are made for more than two or three years, the program is subject to Congressional review when the Public Works Committees biennially consider the apportionment formula to be applied in that program. Thus, all of the grant-in-aid programs administered in this Department are subject to more frequent review than the five-year review contemplated in S. 458 and S. 735. Therefore, the underlying purpose of these bills, to assure that grant-in-aid programs not go on indefinitely without a periodic reexamination of their justification, is already well served and in a manner involving a more frequent review than those bills propose. In addition, the termination of authority to make grants-in-aid at the expiration of five years would seriously restrict even programs with authorizations for under five years. For example, the Federal-Aid Airport Program was last extended in P.L. 89-647, October 13, 1966. The authorization was for FY 1968, 1969 and 1970. These funds are available until expended. Under the proposed S. 458 as applied to P.L. 89-647, the funds authorized for 1968 would be available only for four years. The funds for 1969 would be available for three years and those for 1970 for two years. The authority to obligate any funds authorized under P.L. 89-647 would expire June 30, 1971, under section 2 of S. 458. In this connection, funds apportioned among the states pursuant to section 6(a) of the Federal Airport Act remain available for projects in the respective states for two fiscal years. Any funds remaining unobligated at the expiration of the two-year period are added to the Discretionary Fund pursuant to section 6(c), and are then available for projects in all the states. Several of the less populous states are unable to utilize the full amount of funds apportioned to them under the state apportionment formula. The apportioned funds excess to these states' needs, therefore, lie idle and may not be used until the third year after they first become available. Under the five-year limitation as now written in section 2 of S. 458, unused State Apportionment Funds in the 1970 authorization could never be applied for needed projects. Unobligated State Apportioned Funds in the 1969 and 1968 authorizations would be available for needed projects only one year and two years, respectively. These limitations would seriously limit our ability to carry out the intended purposes of this program. Accordingly, the Department of Transportation opposes the enactment of legislation providing automatic termination dates for grant-in-aid programs generally. The Bureau of the Budget advises that from the standpoint of the Administration's program, there is no objection to the submission of this report for the consideration of the Committee. Sincerely, JOHN L. SWEENEY, Assistant Secretary for Public Affairs. AGENCY REPORTS ON S. 2981 OFFICE OF THE SECRETARY OF TRANSPORTATION, Hon. JOHN L. MCCLELLAN, Chairman, Committee on Government Operations, DEAR MR. CHAIRMAN: This is in response to your request for the views of this Department concerning S. 2981, a bill "To provide temporary authority to expedite procedures for consideration and approval of projects drawing upon more than one Federal assistance program, to simplify requirements for the operation of those projects, and for other purposes." Essentially the proposal would increase joint funding and simplify the administration of grants and contracts where programs or projects are funded from two or more appropriations. The proposal delineates the scope, authority, requirements, and procedures to be used when joint funding is undertaken. This Department believes the proposal, which is an Administration bill, will facilitate and encourage the integrated development and execution of program proposals. We think this is a highly desirable result. Since the effective objectives of Government supported programs are multiple, the achievement of these objectives require the simultaneous and integrated implementation of a number of projects. The three principal programs of this Department that could be operated under this new authority are the Federal-aid to Airports, the Federal-aid to Highways, and the State and Community Safety grants. The FAA now cooperates, in providing airports, with the Economic Development Administration, Department of Commerce; the Department of Defense; and the National Park Service, Department of the Interior. In addition, the airport grant-in-aid projects might be coordinated with urban renewal projects, mass transit projects, open-space grants, metropolitan planning grants, and with the Department's highway program. Similarly, the Federal-aid to highways and the State and Community Safety grant programs might, with the assistance of this bill, be utilized more frequently in a coordinated fashion with the grant-in-aid programs of other departments. The multiple impact of joint planning and execution will be much greater if the project is originated and completed in tandem or multiples wherever this is possible. A transportation system is a complex of many items, and a more complementary installation of those items would lead to greater efficiency. We assume that the language in section 8 is sufficient in its requirement that an expenditure not be inconsistent with other Federal laws, to prevent the expenditure of money transferred from the airport grant-in-aid program or the highway trust fund for other than airport or highway projects respectively. The problem of segregation of the Highway Trust Fund is particularly important since that fund is financed through highway user taxes and has been specifically held by Congress to be available only for that purpose. Subject to these comments the Department of Transportation favors the enactment of this legislation. The Bureau of the Budget has advised that enactment of this legislation would be in accord with the President's program. Sincerely yours, JOHN L. SWEENEY, Assistant Secretary for Public Affairs. Hon. JOHN L. MCCLELLAN, EXECUTIVE OFFICE OF THE PRESIDENT, Chairman, Committee on Government Operations, DEAR MR. CHAIRMAN: This is in reply to your request for comments of this agency on S. 2981, 90th Congress, a bill, "To provide temporary authority to expedite procedures for consideration and approval of projects drawing upon more than one Federal assistance program, to simplify requirements for the operation of those projects, and for other purposes." In my capacity as the President's liaison with the Governors, I have a direct interest in this bill, and I recommend that it be enacted at an early date. The Bureau of the Budget advises that it has no objection to the submission of this report, and that enactment of this bill would be in accord with the President's program. Sincerely, MORDECAI M. MEEKER (For Price Daniel, Director). Hon. JOHN L. MCCLELLAN, EXECUTIVE OFFICE OF THE PRESIDENT, BUREAU OF THE BUDGET, Washington, D.C., March 5, 1968. Chairman, Committee on Government Operations, U.S. Senate, New Senate Office Building, Washington, D.C. DEAR MR. CHAIRMAN: This is in response to your letter of February 20, 1968, requesting the views of the Bureau of the Budget on S. 2981, the "Joint Funding Simplification Act of 1968." S. 2981 was developed in response to the President's request-in his March 17 Message on the Quality of American Government-for legislation that would make it possible ". . . for Federal agencies to combine related grants into a single financial package, thus simplifying the financial and administrative procedures without disturbing, however, the separate authorizations, appropriations, and substantive requirements for each grant-in-aid program." Separate Federal assistance programs should be amenable to joint utilization in single projects within which the several programs are melded to achieve mutual objectives. Such combinations of related programs would enable State and local governments and other grantees to use the wide variety of Federal assistance programs more effectively and efficiently. However, such combinations cannot be "packaged" and administered easily under existing laws and regulations. Each Federal grant program may have different requirements in such matters as application forms, accounting procedures, advisory panels, reporting dates, etc. Further, the grantees must often work with several Federal agencies (or constituent elements of a single agency) — each with its own distinct administrative practices. As a result, considerable effort is required and significant delays are encountered. The purpose of S. 2981 is to remove or simplify certain administrative and technical impediments which hamper or prevent the consideration, processing. approval and administration of projects which draw upon resources available from more than one Federal agency, program or appropriation. The bill would enable State and local governments and other public or private agencies to use Federal financial assistance under two or more programs in support of multipurpose projects. Under the bill: Federal agency heads would be authorized to establish uniform requirements respecting technical or administrative provisions of law so that jointly funded projects would not have to be subject to varying or conflicting rules or procedures; In appropriate cases, Federal agencies would have authority to delegate to other agencies power to approve portions of projects on their behalf ; Federal agency heads could establish joint management funds in their agencies to finance multi-purpose projects drawing upon appropriations from several different accounts; The President would prescribe appropriate regulations for, and approve agency delegations of power and functions under the bill. He would make reports to the Congress on actions taken, and make recommendations for additional legislative action, including proposals for consolidation, simplification or coordination of grant programs. The authority contained in the bill would expire after three years. The Joint Funding Simplification Act of 1968 would not affect substantive provisions of law relating to Federal assistance programs such as eligibility criteria, maintenance of effort, matching ratios, authorization levels, program availability, etc. Problems presented by the diversity in such provisions as these would be studied in connection with proposals for grant consolidation which the President also requested the Director of the Bureau of the Budget to explore in the Message on the Quality of American Government. That effort is now underway. Experience gained under the Joint Funding Simplification Act will be of great assistance in the development of a workable grant consolidation program. Accordingly, the Bureau of the Budget recommends enactment of S. 2981. Sincerely yours, WILFRED H. ROMMEL, Assistant Director for Legislative Reference. Hon. JOHN L. MCCLELLAN, THE GENERAL COUNSEL OF THE TREASURY, Chairman, Committee on Government Operations, DEAR MR. CHAIRMAN: Reference is made to your request for the views of this Department on S. 2981, "To provide temporary authority to expedite procedures for consideration and approval of projects drawing upon more than one Federal assistance program, to simplify requirements for the operation of those projects, and for other purposes." The proposed legislation is designed to implement the recommendations of the President to provide for the simplification of Federal assistance programs contained in his March 17, 1967 message on the Quality of American Government. The bill would provide authorities for the establishment of uniform technical or administrative requirements, the delegation of powers and responsibilities, and the establishment of joint management funds with respect to projects assisted under more than one Federal assistance program. The authorities would expire after three years. Federal assistance programs would be defined to include loan, loan guarantee, and loan insurance as well as grant programs. For some time the Department has been encouraging the use of letters of credit for a wide range of domestic and international grant programs to achieve better cash management. The proposed legislation, by consolidating funds from several appropriations, would reduce the number of letters of credit for all grant programs, thereby simplifying funding procedures for the grantee, the agencies, the Treasury, and the Federal Reserve banks. It may achieve further benefits if relatively small grants now paid by check are brought under the letter-of-credit method by virtue of the pooling arrangements. Consequently, the Treasury supports the objective of the bill. The Department has been advised by the Bureau of the Budget that there is no objection to the submission of this report to your Committee and that enactment of the proposed legislation would be in accord with the program of the President. Sincerely yours, FRED B. SMITH, General Counsel. Hon. JOHN L. MCCLELLAN, THE POSTMASTER GENERAL, Washington, D.C., March 8, 1968. Chairman, Committee on Government Operations, U.S. Senate, Washington, D.C. DEAR MR. CHAIRMAN: This Department has been requested to report on S. 2981, a bill "to provide temporary authority to expedite procedures for consideration and approval of projects drawing upon more than one Federal assistance program, to simplify requirements for the operation of those projects, and for other purposes." The purpose of the bill is to enable States, local governments, and other public or private organizations to use Federal assistance more effectively and efficiently. Subject to regulations to be prescribed by the President the bill would authorize agency heads to cooperate in the identification of programs, development of guidelines, review of program requirements, establishment of common rules, and creation of common application processing and project supervision procedures. The bill would also require Federal agencies to assure that, in the processing of applications, reviews and approvals are expeditious, questions of timing affecting feasibility are considered, the number of Federal representatives involved is kept to a minimum, decisions on applications are communicated promptly to applicants, and applicants are not required by one agency to obtain assurance of the requirements of another agency where such requirements could better be determined through direct interagency communication. Since the Post Office Department does not administer any Federal assistance programs, the bill would have no effect on the Department. Accordingly, we have no recommendations concerning the bill. In advising with respect to H.R. 12631, an identical bill, the Bureau of the Budget has stated that there is no objection to the submission of that report to the Committee. Sincerely yours, LAWRENCE F. O'BRIEN. U.S. DEPARTMENT OF LABOR, Hon. JOHN L. MCCLELLAN, Chairman, Committee on Government Operations, DEAR MR. CHAIRMAN: This is in further response to your letter of February 20. 1968 requesting a report on S. 2981, the "Joint Funding Simplification Act of 1968." This bill creates authority which will constitute a first and important step in the simplification of grant-in-aid programs. Permitting substantive authority to be delegated from one agency to another, permitting the waiving of technical and administrative requirements and permitting the establishment of uniform matching requirements and single accounting procedures are valuable simplifications of administrative and financial procedures. The Department of Labor therefore strongly supports the bill. The President recognized last year in his message on The Quality of American Government that simplification of procedures is but one part of the problem of bringing order out of the confusing multiplicity of grant-in-aid programs. The President in his Message described program simplification as even more fundamental than the simplification of procedure, and directed a broad study of this problem and development of solutions. Program simplification-as distinguished from procedural simplification-will require the consolidation of specific pieces of legislation into broad program legislation accompanied by single appropriations without categorical dollar limitations. This bill is a necessary first step in achieving this broader objective. The Bureau of the Budget advises that there is no objection to the submission of this report and enactment of S. 2981 would be in accord with the President's program. Sincerely, Hon. JOHN J. MCCLELLAN, WILLARD WIRTZ, Secretary of Labor. DEPARTMENT OF AGRICULTURE, OFFICE OF THE SECRETARY, Chairman, Committee on Government Operations, DEAR MR. CHAIRMAN: This is in response to your request for a report on S. 2981, a bill "to provide temporary authority to expedite procedures for consideration and approval of projects drawing upon more than one Federal assistance program, to simplify requirements for the operation of those projects, and for other purposes." The bill proposes that heads of Federal agencies be authorized to: 1. Identify related programs appropriate for providing joint support for specific kinds of projects; 2. Develop and promulgate guidelines and materials to assist in the planning and development of projects drawing support from different programs; 3. Identify administratively established program requirements which may impede joint support of projects and make modifications as appropriate; 4. Establish common and technical rules among related programs; and 5. Create joint project application procedures and projects supervision procedures. The head of each agency would be responsible for taking actions to the maximum extent possible under applicable law which would further the purpose of the act with respect to programs administered by this agency. Each Federal agency head would also consult and cooperate with heads of other Federal agencies to promote the purposes of this act. Actions taken by Federal agencies pursuant to this act relating to the processing of applications must be designed to assure : That required reviews and approvals are handled expeditiously: That full account be taken of special considerations of timing made known by the applicant that affect the feasibility of the project; That the applicant be required to deal with a minimum number of Fed eral representatives, acting separately or as a board or panel; |