3

1 penses Act of 1946 (5 U.S.C. 73b-2) for persons in the

2 Government service employed intermittently.";

(4) by striking out in section 209 (c) thereof "and

such plan has not been disapproved by the Governor

within thirty days of such submission, or, if so disapproved, has been reconsidered by the Director and found by him to be fully consistent with the provisions and in furtherance of the purposes of this part" and inserting in lieu thereof "and such plan has not been disapproved by him within thirty days of such submission";

(5) by inserting immediately after section 211 thereof the following new section:

"POLITICAL ACTIVITIES

"SEC. 211A. For the purposes of the Act entitled 'An

Act to prevent pernicious political activities', approved August 2, 1939 (53 Stat. 1147), any agency administering

or conducting a community action program receiving assistance under this part shall be deemed to be a State or local

agency, and any person who is employed by such agency administering or conducting a community action program and whose salary is paid in any part from funds appropriated pursuant to this part, shall be deemed to be an officer or

employee of a State or local agency."; and

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2

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(6) by amending section 221 to read as follows:

"SEC. 221. The Director shall carry out the programs

3 for which he is responsible under this title during the fiscal 4 year ending June 30, 1965, and the three succeeding fiscal 5 years. The Secretary of Housing and Urban Development 6 shall carry out the programs provided for in part A of this 7 title for the fiscal year ending June 30, 1967, and for the 8 succeeding fiscal year. For the purpose of carrying out this 9 title, there is hereby authorized to be appropriated the sum 10 of $340,000,000 for the fiscal year ending June 30, 1965, 11 the sum of $850,000,000 for the fiscal year ending June 30, 12 1966, and the sum of $ for the fiscal year end

13 ing June 30, 1967, and for the succeeding fiscal year such 14 sums may be appropriated as the Congress may hereafter 15 authorize by law."

(b) Section 603 of such Act is amended by—

(1) striking out "paragraph (2)" in subsection (d) thereof and inserting in lieu thereof "paragraphs (2) and (3)"; and

(2) adding at the end of subsection (d) thereof the following new paragraph:

"(3) For the purposes of the Act entitled 'An Act

to prevent pernicious political activities', approved Au

gust 2, 1939 (53 Stat. 1147), a volunteer under this

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2

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section shall be deemed to be a person employed in the

executive branch of the Federal Government.".

SEC. 2. (a) So much of the personnel, property, rec4 ords, obligations, commitments, and unexpended balance of 5 appropriations, allocations, and other funds, available or to 6 be made available, as the Director of the Bureau of the 7 Budget determines are used primarily with respect to any 8 functions of the Office of Economic Opportunity transferred 9 under the provisions of the preceding section are transferred to the Department of Housing and Urban Development. (b) All laws relating to any office, agency or function 12 transferred under this Act shall, insofar as such laws are 13 applicable, remain in full force and effect. Any transfer of 14 personnel pursuant to this Act shall be without change in 15 classification or compensation, except that this requirement 16 shall not operate to prevent the adjustment of classification

11

or compensation to conform to the duties to which such trans18 ferred personnel may be assigned. All orders, rules, regula19 tions, permits, or other privileges made, issued, or granted 20 by any officer or agency in connection with any function 21 transferred by this Act, and in effect at the time of the trans22 fer, shall continue in effect and to the same extent as if such 23 transfer had not occurred, until modified, superseded, or 24 repealed. No suit, action, or other proceeding lawfully com

6

1 menced by or against any agency or any officer of the United 2 States acting in his official capacity shall abate by reason 3 of any transfer made pursuant to this Act, but the court, on 4 motion or supplemental petition filed at any time within 5 twelve months after such transfer takes effect, showing a 6 necessity for a survival of such suit, action, or other proceed7 ing to obtain a settlement of the questions involved, may 8 allow the same to be maintained by or against the appro9 priate agency or officer of the United States.

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SEC. 3. This Act shall become effective ninety days after 11 its date of enactment except that the amendments made by 12 clauses (2) and (4) of subsection (a) of the first section 13 shall be applicable only with respect to contracts, grants, 14 agreements, loans, or other assistance made after the date of 15 enactment of this Act.

REPORT FROM THE OFFICE OF ECONOMIC OPPORTUNITY ON S. 3164

GENERAL

The bill consists of 10 sections. Of these, the first section sets forth the short title the Economic Opportunity Amendments of 1966. The second deals only with authorizations and financing. The balance of the bill consists of substantive and technical amendments to the Economic Opportunity Act of 1964 or related laws. Provisions relating to authorizations and financing will be discussed below separately from other features of the bill.

AUTHORIZATION AND FINANCING

Section 2 of the bill is divided into three subsections. The first provides new fiscal 1967 authorizations on the same title-by-title basis as the current Act. The second subsection extends the time or "duration of program" authorizations in the Act. The third extends for an additional year the provisions allowing 90 percent Federal assistance for the several programs (Neighborhood Youth Corps, Community Action and Adult Basic Education) which involve a Federal-local or Federal-State sharing of project costs.

Section 2(a) Authorizations.-This subsection authorizes a fiscal year 1967 appropriation aggregating $1,750,000,000 the programs under the Economic Opportunity Act. This appropriation would be used for all programs under the Act except the college work-study program (title I-C) which is administered by the Office of Education as part of the program of student assistance provided pursuant to the Higher Education Act of 1965. Also, in the case of title IV small business loan program, the authorization would cover only funds needed for screening, counseling and similar services provided by small business development centers. Funds for loans and for Small Business Administration administrative costs are not included, since these would be provided through the SBA revolving fund, as authorized by section 404 of the Economic Opportunity Act.

The total sum authorized would be subject to specific title authorizations but without in-title breakdowns. This is the same pattern followed in the original Act and in the 1965 amendments. In contrast to last year's amendments, however, all authorizations would be included in one brief subsection of the bill rather than in a variety of amendments to the individual titles of the Act. This format is designed so that the authorization legislation each year will present a clearer and more concise picture of the total amount authorized and the manner in which it is contemplated the funds will be employed.

Given an objective of eliminating poverty as rapidly as possible, the bill reflects what is, overall, a constrained or tight budget for fiscal year 1967. From this, there follow a number of considerations which have counted heavily in the drawing up of specific authorizations proposals.

First, because total funds are limited, and needs are great, no program can expect to meet more than some fraction of the needs, or to serve more than a part of the group, at which it is directed. A number of programs could be further exapnded-and will ultimately have to be expanded; but within the overall limit, the price of such expansion now may be not only to limit the essential development of other programs but to undo progress these other programs have already made. Where feasible, however, special attention has been given to programs that have the farthest yet to go in terms of their "clientele" and service goals.

Second, because the overall budget is constrained, the margin for planning error is small. This means that the need for flexibility in the use of funds, within programs, within titles, and pursuant to section 610 of the Act among titles, is particularly crucial. Without this flexibility in the use of funds, there is no leeway for meeting unanticipated demands, or for taking advantage of opportunities too uncertain to be controlling at the time of budget planning, or for the reprogramming of funds which are not being most effectively used.1

1 In both fiscal years 1965 and fiscal 1966, the Economic Opportunity Act program operated with total authorizations which were substantially in excess of appropriations. The appropriations, moreover, were made in a form which allowed the Director to apportion the amounts appropriated among the various titles in his discretion. so long as he did not exceed the authorization limits. The effect of this was to allow a great deal of flexibility in reprograming among titles. For fiscal year 1967, however, it has been assumed that both authorizations and appropriations will conform to budget estimates.