Aid to land-grant colleges

The proposed rescission of $9.5 million would terminate the annual appropriation for this program. The Bankhead-Jones program is no longer needed: it funds only a very small percentage of the operating costs of the recipient colleges and universities, among them some of the strongest and most prestigious institutions of higher education in the country. The smaller and poorer land-grant institutions will continue to be aided by the developing institutions program. The rescinded amount would have provided-to 72 land-grant institutions in 54 jurisdictions-grants ranging from 150,000 to 285,000 per jurisdiction. State postsecondary education commissions

This program provides grants for State comprehensive planning of postsecondary education and for State administration of equipment and facilities programs authorized under titles VI and VII of the Higher Education Act. The Federal role of demonstrating the advantages of these activities has been performed. It is anticipated that many States will continue to support these activities from State resources.

The proposed rescission of $3,250,000 would terminate Federal support for the program by eliminating grants to the States and territories, but would leave $250,000 to support State agencies administering the program. These agencies would, thereby, have sufficient time to either find alternative funding in order to continue the program or to redeploy their personnel to other State functions. Veterans cost of instruction

The proposed rescission of $23,721,840 would terminate this program. Its activities duplicate those funded through the Office of Education's special program for the disadvantaged and through the Veterans' Administration. Further, this program which supplies funds directly to institutions is a far less effective form of Federal support to higher education than student assistance programs which expand the opportunities of individuals to select the institution of their choice. The proposed rescission would not affect a grant of $28,160 made under authority of the 1976 continuing resolution. The appropriated level would fund another 1,206 grants (estimated) to institutions to establish and operate special programs for an estimated 900,000 veterans.

Cooperative education

These grants are provided to educational institutions for establishing programs which alternate periods of full time study and employment. The rescission of $2,750,000 is being proposed to maintain the program at the level of the budget request. Funds amounting to $8 million would remain available to fund cooperative education projects. If the rescission is approved, the number of new awards for fiscal year 1976 will be 100-the same as in 1975-and the number of continuations will be 130. This compares to 136 new awards and 139 continuations that could be made if the rescission was not approved. Also, 14 training programs and three research projects would not be funded at the $8 million level. Public service fellowships

This program of grants to students who are preparing for careers in public service is a less effective form of Federal support to higher education than is support, provided directly to students, that allows them to determine—without special inducements-the institution and area of study that will best meet their individual needs. The program is proposed for termination through rescission of $4 million. If the rescission is approved, grants in the following amount will not be made in fiscal year 1976: $1,600,000 in competing continuation grants to 40 institutions to improve public service education, $1,365,000 to support 210 noncompeting continuation fellowships at 52 institutions, $650,000 for 100 new fellowships at 10 institutions, and $385,000 to support new grants to 10 institutions to improve public service education.

Mining fellowships

This program of grants to students who are preparing for careers in mining and related fields is a less effective form of Federal support to higher education than is support, provided directly to students, that allows them to determine— without special inducements-the institution and area of study that will best meet their individual needs. The program is proposed for termination through

rescission of $3 million. If approved, there will be no Federal support for an estimated 180 competing continuation fellowships at 40 institutions and an estimated 180 new fellowships at 55 institutions.

Ethnic heritage studies

This program provides grants to organizations and institutions to plan, develop, and operate ethnic heritage programs. The primary reason for requesting rescission of the $1.8 million provided for this program is that there is additional authority for ethnic heritage studies within other programs in the Office of Education and in the National Institute of Education. These existing bilingualbicultural programs benefit several ethnic groups. Therefore, it is not necessary to fund this small categorical program. The funds proposed for rescission would provide for approximately 50 grants to organizations and institutions throughout the United States.

G. Homer Skarin, Richard N. Malow, and Paul E. Thomson, Staff Assistants

THURSDAY, DECEMBER 11, 1975.

DEPARTMENT OF HOUSING AND URBAN

DEVELOPMENT

PROPOSED RESCISSION OF BUDGET AUTHORITY

WITNESSES

JOHN B. RHINELANDER, UNDER SECRETARY

DAVID S. COOK, ASSISTANT SECRETARY FOR HOUSING

PRODUCTION AND MORTGAGE CREDIT-FHA COMMISSIONER

ALBERT J. KLIMAN, DEPARTMENTAL BUDGET OFFICER

JOHN WEICHER, DEPUTY ASSISTANT SECRETARY, ECONOMIC

AFFAIRS

WARREN LASKO, DEPUTY DIRECTOR, OFFICE OF POLICY DEVELOPMENT

Mr. BOLAND. The committee will come to order.

We are delighted to welcome today the Under Secretary of the Department of Housing and Urban Development, together with the Assistant Secretary for Housing Production and Mortgage Credit-FHA Commissioner, and also the budget officer; Mr. Rhinelander, Mr. Cook and Mr. Kliman. They are appearing before the subcommittee with reference to the proposed rescission of the HUD section 802 program. As all of us know, the 802 program is the section 802 program of the Housing and Community Development Act of 1974. It does provide for interest grants to State finance agencies in which this subcommittee, acting in response to a request from a number of people involved in this activity, both from the substantive legislative committee and also some officials of State finance agencies around the country, this subcommittee is interested in funding this brand new program.

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We did, in the regular budget, provide $15 million in annual contract authority on this interest grant program which is a 40-year program. So, $15 million times 40 amounts to $600 million in new obligational authority. The Department doesn't want to implement that particular program. As a result, this committee is faced with the proposed rescission.

John Rhinelander, as I have indicated to the members, is the Under Secretary for HUD. He has had considerable experience in the Government and since this is your first appearance, Mr. Secretary, we would appreciate if you would insert a biographical sketch into the record and also a biographical sketch on Mr. Cook.

[The biographical sketches follow:]

JOHN B. RHINELANDER, UNDER SECRETARY

John B. Rhinelander took office as Under Secretary of the Department of Housing and Urban Development on September 23, 1975. He was nominated by President Ford on September 3 and was confirmed to the Under Secretary post by the Senate on September 10.

Since October 1973, Mr. Rhinelander had been serving as General Counsel of the Department of Health, Education, and Welfare. During 1972 to 1973, he was a resident Washington partner in the law firm of Leibman, Williams, Bennett, Baird & Minow which later consolidated with Sidley & Austin. From 1971 to 1972, he was legal adviser to the U.S. SALT delegation, after having served since 1969 as deputy legal adviser in the Department of State. He served from February 1968 to July 1969 as chief counsel and then Acting Deputy Director of the Office of Foreign Direct Investment in the Department of Commerce. Mr. Rhinelander was special civilian assistant to the Secretary of the Navy from November 1966 through January 1968. From September 1962 through October 1966, he practiced law in New York City with the firm of Davis, Polk, Wardwell, Sunderland & Kiendl.

Mr. Rhinelander was born June 18, 1933, in Boston, Mass., graduated from Groton School, received a B.A. degree in political science from Yale University, and served in the U.S. Army from 1956 to 1958. In 1961, he received his LL.B. from the University of Virginia Law School where he was editor-in-chief of the Law Review and then served as law clerk to Justice John Harlan of the Supreme Court during 1961 to 1962.

He is married to the former Jeanne Elizabeth Cattell of Newton, Mass.; they reside in McLean, Va., with their four children.

DAVID S. COOK, ASSISTANT SECRETARY FOR HOUSING PRODUCTION AND MORTGAGE CREDIT AND COMMISSIONER OF THE FEDERAL HOUSING ADMINISTRATION David S. Cook, nominated by President Ford on July 22, 1975, to be Assistant Secretary for Housing Production and Mortgage Credit of the U.S. Department of Housing and Urban Development, was sworn in by Secretary Carla A. Hills. The nomination was confirmed by the Senate on August 1, 1975. In this capacity, he also serves as Commissioner of the Federal Housing Administration.

Mr. Cook is responsible for administering HUD's programs in housing, both unsubsidized and subsidized. In the latter area, he oversees the operation of the housing assistance payments program, generally referred to as section 8. As FHA Commissioner, he presides over one of the largest insurance companies in the world. In addition, his jurisdiction includes the Government National Mortgage Association, which serves as the secondary money market. As a result of the Housing and Community Development Act of 1974, he also supervises mobile home construction and safety standards.

In 1964, Mr. Cook was named president of the Galbreath Mortgage Co., of Columbus, Ohio. He was also chairman of the board, Chemical Realty Corp., of New York.

He was an appraiser and mortgage loan representative for Equitable Life Assurance Society, of Cleveland. He was assistant vice president and head of the mortgage loan department at Union Commerce Bank in Cleveland. Before moving to Columbus, he was executive vice president of Bankers Guarantee Title & Insurance Co., of Akron.