I might say that there are a number of agencies, Mrs. Smith, which are performing functions, that can be helpful to these areas. We are doing our best to get the existing resources and programs of those departments used to help these areas.

We very often, for instance, may find that the Corps of Engineers may be able to help in a water supply project, where additional water is the basis for the economic reconstruction of an area. We would not go into dam building, but we would use the resources of that agency. By the same token, there are other established Government programs that can contribute to economic development. Some of these areas badly need hospitals. We have made clear to them that we will help them get Hill-Burton assistance for their area, if that is basic to their economic development.

Senator SMITH. It seems to me it is very close to a duplication of activity, and I wonder how much effort is being put into an overall program, so that there will be proper coordination and understanding of all of these various seven agencies. They are a lot to supervise, would think; including the public facilities program, as well as the planning.

ATTEMPTS TO CLARIFY DELEGATED WORK

Mr. BATT. We have spent a great deal of our time since we were organized doing just that, and spelling out as clearly as we can, what these agencies will do for the program, Mrs. Smith. We have put in the Federal Register a delegation of authority signed by Secretary Hodges on the 20th day of July. We have worked out these delegations with great care.

We meet every second week with all of the seven agencies concerned. We coordinate our efforts, not only here in Washington, but, much more importantly, in the field.

We have or will have field coordinators assigned to nearly every State, trying to tie together the efforts not only of the Federal agencies, but also of the State development agencies.

KNOWLEDGE OF OTHER AGENCIES' REQUESTS

Senator SMITH. You know what you are asking for. Now, do you know what all the rest of these agencies are asking for?

Mr. BATT. Yes; we included them in our budget. They made the request to us, and we in effect acted like a junior Budget Bureau in screening those requests and tying the operations together, so that there would not be a duplication. Those requests are spelled out in our presentation.

For ARA, for our own agency, we requested $2,955.000: for Agriculture, $1.525,000; for Labor, $1,500,000; for Interior, $300,000; and for HHFA, $220,000. And then we planned to use $300,000 from our revolving funds for HHFA and $490,000 for SBA for servicing loans. Senator HOLLAND. This is a little bit voluminous, but I think it might clarify the record to place in the record at this time the release from Secretary Hodges dated July 26, setting up the particination expected with the Area Redevelopment Agency by seven Federal agencies, and detailing the services to be performed by each. (The release referred to follows:)

[For release in morning paper, Wednesday, July 26, 1961]
U.S. DEPARTMENT OF COMMERCE

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

G 61-129

SEVEN FEDERAL AGENCIES TO PARTICIPATE IN AREA REDEVELOPMENT PROGRAM

The resources of seven Federal agencies will be pooled to carry out the Government's new $394 million program to aid areas suffering from substantial and persistent unemployment, it was made known today by Secretary of Commerce Luther H. Hodges.

The agencies, in addition to the Area Redevelopment Administration headed by William L. Batt, Jr., are the Departments of Agriculture, Interior, Labor, and Health, Education, and Welfare, the Small Business Administration, and the Housing and Home Finance Agency.

The roles which the various agencies will play are spelled out by the Secretary in a memorandum delegating authority under the Area Redevelopment Act.

The inclusion of the other Federal agencies in the overall program reflects the intent of Congress to utilize the resources of the Federal Government to the maximum extent and to avoid duplication of facilities.

Secretary Hodges emphasized that substantial resources presently exist in Federal agencies that can be of great value to depressed communities in solving their problems of chronic unemployment, providing these resources are focused jointly on the local area.

The overall supervision and coordination of the new Government program the Secretary said, will remain the responsibility of ARA. The Area Redevelopment Administration, he said, will have representatives in the States, working closely with State development agencies to assist communities in mak ing the best possible use of the facilities offered by the participating agencies. Three of the agencies involved-Labor, HEW, and HHFA-all have specific statutory authority for key phases of the depressed areas program. For example, the Labor Department is charged with determining the training needs of individuals in redevelopment areas, while the Department of Health, Education, and Welfare is responsible for providing assistance to appropriate State vocational agencies to aid in the furnishing of such training services. HHFA is authorized to carry out urban renewal projects in redevelopment areas and is carrying out the community facilities phases of the program. Briefly, the participating agencies will

Help determine which localities should be classified as "redevelopment areas" eligible to take part in the program;

Provide special assistance to redevelopment areas in formulating plans of action aimed at providing permanent job opportunities;

Review, with ARA officials, the overall development program and the specific project requests submitted by redevelopment areas;

Process ARA-approved loans to help local communities finance new or expanded factories or other facilities for business enterprises interested in locating in redevelopment areas;

Process ARA-approved loans or grants to help finance public facilities needed to promote permanent employment opportunities;

Recommend technical assistance programs, including comprehensive economic studies, to help determine the potential for future growth in qualified areas;

The goal of ARA is to help qualified communities help themselves in devising broad-scale assaults on chronic joblessness.

(Complete details of the roles to be played by the various Government agencies are contained in a 14-page "Delegation of Authority.")

DELEGATION OF AUTHORITY

The Secretary of Commerce, pursuant to the legislative directive that available services and facilities of other agencies and instrumentalities of the Federal Government shall be used to the fullest extent practicable in carrying out the provisions of the Area Redevelopment Act (Public Law 87-27) herein re

ferred to as the act, and in order to avoid duplication of existing staffs and facilities in the departments and agencies named herein, delegates to the heads of the named departments and agencies the functions, powers, and duties as follows:

DESIGNATION OF REDEVELOPMENT AREAS

(a) Department of Labor

(1) To find facts, provide data, and make recommendations to be used by the Secretary of Commerce in formulating standards upon which the designation of "redevelopment areas" shall be made under section 5(a) of the act, and in designating "redevelopment areas" under section 5(a) of the act, in addition to the responsibilities vested in the Secretary of Labor under the said section. (2) To find facts, provide data, and make recommendations to be used in association with facts and data to be furnished by the Secretary of Agriculture and the Secretary of the Interior, by the Secretary of Commerce, in formulating the standards upon which the designation of "redevelopment areas" shall be made under section 5(b) of the act, and in designating "redevelopment areas" under section 5(b) of the act, other than rural, reservation, and resource-based redevelopment areas as hereinafter set forth.

(3) To review from time to time as provided in section 13 of the act the employment situation in redevelopment areas for which the Secretary of Labor, under authority of section 5 of the act or delegation of authority from the Secretary of Commerce, has been authorized to find facts, provide data, and make recommendations for designating "redevelopment areas," and pursuant to such review to report information and data to the Secretary of Commerce necessary to enable the Secretary of Commerce to determine whether the employment conditions have changed in any such redevelopment area, so that such area is no longer eligible for further assistance under the act.

(b) Department of Agriculture

(1) To find facts and provide data to be used in association with facts and data to be furnished by the Secretary of Labor and the Secretary of the Interior, by the Secretary of Commerce, in selecting the criteria and formulating the standards upon which areas which are essentially and fundamentally associated with agriculture or forestry shall be designated "redevelopment areas" under section 5(b) of the act and more particularly classified as "rural redevelopment areas."

(2) To find facts and provide data and make recommendations to be used by the Secretary of Commerce in designating and classifying "rural redevelopment areas" under the criteria and standards mentioned in the paragraph, next above. (3) To review from time to time as provided in section 13 of the act the employment situation in rural redevelopment areas and pursuant to such review to report information and data to the Secretary of Commerce necessary to enable the Secretary of Commerce to determine whether the employment conditions have changed in any such rural redevelopment area so that such area is no longer eligible for further assistance under the act.

(c) Department of the Interior

(1) To find facts and provide data to be used in association with facts and data to be furnished by the Secretary of Labor and the Secretary of Agriculture, by the Secretary of Commerce, in selecting the criteria and formulating the standards upon which areas which are essentially and fundamentally associated with Indian affairs, minerals, fisheries, national parks, or public lands shall be designated "redevelopment areas" under section 5(d) of the act and more particularly classified as "reservation redevelopment areas" or "resource-based relevelopment areas."

(2) To find facts and provide data and make recommendations to be used by the Secretary of Commerce in designating and classifying "reservation redevelopment areas" and "resource-based redevelopment areas" under the criteria and -tandards mentioned in the paragraph, next above.

(3) To review from time to time as provided in section 13 of the act the emloyment situation in reservation redevelopment areas and resource-based redevelopment areas and pursuant to such review to report information and data the Secretary of Commerce necessary to enable the Secretary of Commerce determine whether the employment conditions have changed in any such redevelopment area, so that such area is no longer eligible for further assistance der the act.

ORGANIZATIONAL AND EDUCATIONAL LEADERSHIP

(a) Department of Agriculture

(1) To provide in rural redevelopment areas organizational and educational leadership for the orderly development of local economic initiative, and provide advice, assistance, and information to individuals, committees, groups, and enterprises in rural redevelopment areas regarding the application of the act, the implementation of proposed projects and the objectives of the approved overall economic development program for the area, and matters as set forth under section 10 of the act.

(b) Department of Interior

(1) To provide in reservation redevelopment areas and resource-based redevelopment areas organizational and educational leadership for the orderly development of local economic initiative, and provide advice, assistance and information to individuals, committees, groups, and enterprises in such areas regarding the application of the act, the implementation of proposed projects and the objectives of the approved overall economic development program for the area, and matters as set forth under section 10 of the act.

(c) Department of Labor

(1) To provide to individuals, committees, groups, and enterprises in redevelopment areas, advice, assistance and information regarding local employment and unemployment, and the characteristics of the work force, as set forth under section 10 of the act.

(d) Small Business Administration

(1) To provide advice, assistance, and information as set forth in section 10 of the act.

OVERALL ECONOMIC DEVELOPMENT PROGRAM

(a) Department of Agriculture

(1) To assist and furnish guidance to rural redevelopment areas in the preparation of overall economic development programs and to certify as a condition precedent to approval by the Secretary of Commerce as provided by section 6(b) (10) of the act, that overall economic development programs for such areas are consistent with general objectives for the economic development of rural areas in the United States.

(b) Department of the Interior

(1) To assist and furnish guidance to reservation redevelopment areas and resource-based redevelopment areas in the preparation of overall economic development programs and to certify as a condition precedent to approval by the Secretary of Commerce as provided by section 6(b)(10) of the act, that overall economic development programs for such areas are consistent with the general objectives for the economic development of Indian reservation areas and resource-based areas in the United States.

(c) Department of Labor

(1) To assist and furnish guidance to redevelopment areas in the preparation of overall economic development programs by providing information on local employment and unemployment, the characteristics of the work force, and on the need for training of unemployed workers.

(d) Small Business Administration

(1) To assist and furnish guidance to redevelopment areas in the preparation of overall economic development programs by providing readily available information relating to the regular activities of the Small Business Administration.

(e) Department of Health, Education, and Welfare

(1) Assist and furnish guidance to redevelopment areas in the preparation of overall economic development programs by providing readily available information relating to the regular activities of the Department of Health, Education, and Welfare.

TECHNICAL ASSISTANCE PROGRAMS

(a) Department of Agriculture

(1) To recommend technical assistance programs for rural redevelopment areas and to certify to the Secretary of Commerce that any proposed technical assistance program for a rural redevelopment area under section 11 of the act, is consistent with the purposes of said section 11 of the act, as a condition precedent to final approval or authorization by the Secretary of Commerce of any such program in a rural redevelopment area.

(b) Department of the Interior

(1) To recommend technical assistance programs for reservation redevelopment areas and resource-based redevelopment areas and to certify to the Secretary of Commerce that any proposed technical assistance program for a reservation redevelopment area and a resource-based redevelopment area under section 11 of the act, is consistent with the purpose of said section 11 of the act, as a condition precedent to final approval or authorization by the Secretary of Commerce of any such program in such areas.

LOANS AND GRANTS

(a) Small Business Administration

(1) To carry out, under rules, regulations, and policies of the Secretary of Commerce, the provisions of section 6 of the act by performing the following functions:

(A) Purchasing evidences of indebtedness and making loans after express authorization by the Secretary of Commerce;

(B) Determining that such loans are not being made for working capital and are in compliance with the requirements of sections 6(b) (4), 6(b) (5), 6(b) (6), 6(b) (7), 6(b) (8), and 6(b) (9) of the act; and

(C) Exercising the powers, duties, and functions vested in the Secretary of Commerce by sections 19 and 21 of the act in connection with any loans proposed to be made under section 6 of the act.

(2) To exercise in carrying out the foregoing delegations under rules, regulations, and policies of the Secretary of Commerce, the powers, duties, and functions vested in the Secretary of Commerce by sections 12 (4), 12(5), 12(6), 12(7), 12(8), 12(9), and 12(10) of the act.

(b) Housing and Home Finance Agency

(1) To carry out, under the rules, regulations, and policies of the Secretary of Commerce, the provisions of sections 7 and 8 of the act by performing the following functions:

(A) Making loans and grants after express authorization by the Secretary of Commerce;

(B) Determining that loans made under section 7 of the act are in compliance with the requirements of sections 7(a) (2), 7(a) (3), 7(a) (4), 7(b), and 7(d); (C) Determining that grants made under section 8 of the act are in compliance with the requirements of sections 8(a) (2) and 8(c) of the act; that there is little probability that such projects can be undertaken without the assistance of a grant under section 8; and that the amount of any grant under section 8 for a project does not exceed the difference between the funds which can be practicably obtained from other sources (including a loan under section 7 of the act) for such project and the amount which is necessary to insure the completion thereof; and

(D) Exercising the powers, duties, and functions vested in the Secretary of Commerce by sections 19 and 21 of the act in connection with any loans or grants proposed to be made under section 7 or 8 of the act.

(2) To exercise in carrying out the foregoing delegations under rules, regulations, and policies of the Secretary of Commerce, the powers, duties, and functions vested in the Secretary of Commerce by sections 12(4), 12(5), 12(6), 12(7), 12(8), 12(9), and 12(10) of the act.

(c) Department of Agriculture

(1) To certify to the Secretary of Commerce, as a condition precedent to approval by the Secretary of Commerce, that a proposed project in a rural redevelopment area for which financial assistance is sought under section 6, 7, or 8 of the act is consistent with the approved overall economic development program for such area.