tions are required for the last 2 years of the program. Another amendment to title I will permit the continuation of grants to assist in meeting the expenses incurred in the administration of State plans required under the act, and in addition, authorize grants to continue comprehensive planning within a State to determine the construction needs of colleges and universities. Seven million dollars is authorized for each of the next 3 fiscal years for these purposes. TITLE II-GRANTS FOR THE CONSTRUCTION OF GRADUATE FACILITIES Similar to title I, this part of the Higher Education Facilities Act provides Federal grants to pay up to one-third of construction costs for graduate classroom, laboratory, and library construction at institutions of higher education. During fiscal year 1965, the U.S. Office of Education received applications amounting to far more than the funds appropriated. Demand for assistance in construction for graduate facilities remains strong. At the time of the hearings conducted by the Special Subcommittee on Education, it was reported that if the demand for title II funds continues at its present rate, the total amount requested by graduate schools across the country will exceed $100 million by the end of this fiscal year. Increasing numbers of students with bachelor's degrees are seeking to go on to graduate school. Colleges, vocational and technical schools, business, and industry are requiring professional employees to have postgradutate education as a prerequisite for work in an increasing number of specialized fields. Ten years ago, approximately 240,000 students were enrolled in graduate school. Last September, that number had increased to 570,000. The demand for graduate education is not expected to abate. Projections indicate that by 1974 there will be almost 1.1 million graduate students. It is estimated that an additional 40 strong graduate centers are needed to meet the Nation's manpower requirements. As part of the Higher Education Act of 1965, the Congress doubled the 1966 authorization for title II from $60 to $120 million. Under this title, grants may be provided for the construction of cooperative graduate centers, and in doubling the authorization the Congress wished to encourage a more extensive development of cooperative arrangements at the graduate level. In addition the Congress also wished to promote a wider geographical distribution of quality graduate education. It was, therefore, with great reluctance that the committee approved the administration's recommendation that title II be funded at only $60 million for fiscal year 1967. For fiscal years 1968 and 1969 the bill proposes authorizations of $90 million and $120 million, respectively, amounts which are within the Department of Health, Education, and Welfare's projected program. In order that the Congress may also review the operation of this program by the end of the next 3-year period, further authorization of appropriations will be required for the last 2 years of the program. Also the amendments provide that sums appropriated to assist in the construction of graduate academic facilities will remain available for grants until they are expended rather than merely for the 2 succeeding fiscal years as is now authorized. This will bring the title II program into line with other Federal programs providing assistance in the construction of graduate academic facilities. TITLE II -LOANS FOR THE CONSTRUCTION OF ACADEMIC FACILITIES The loan provisions of the Higher Education Facilities Act are patterned after the loan provisions of the college housing program. In 1965 almost $108 million was provided under title III. This year due in part to the lowering of the interest rate to 3 percent, the demand for loans is even higher. Both public and private colleges and universities now find the program much more attractive and although the fiscal year is not yet over, applications received by the U.S. Office of Education already exceed the amount authorized for 1966. H.R. 14644 proposes a fiscal year 1967 authorization of $200 million for title III, $80 million more than in previous years. Rather than authorize an appropriation of funds without a ceiling for the succeeding fiscal years as was proposed, the committee wished to set specific authorizations for fiscal years 1968 and 1969 as was done in the other titles. While the committee is convinced that borrowing for academic facilities will increase in proportion to the grants provided, the authorization of funds for title III was limited to $200 million for fiscal years 1968 and 1969. This was due primarily to the uncertainty of the impact that the Participation Sales Act of 1966 might have rather than to any lack of evidence or support for a continued expansion of the program. H.R. 14644 also proposes a deletion of an existing provision providing the Commissioner of Education with discretion to prescribe a schedule of fees to cover the expenses of audits and inspections of construction undertaken with title III assistance, since this authority has not been used and is not needed. Higher Education Act of 1965 TITLE III- -STRENGTHENING DEVELOPING INSTITUTIONS Last year, the Congress approved as part of the Higher Education Act of 1965 a 1-year program of grants to assist in the strengthening of developing institutions. President Johnson, in his message to Congress on health and education, reiterated the need for a program of assistance to developing institutions when he observed that "one out of every four of our institutions of higher learning is not good enough to get accreditation." The need and desirability for Federal assistance to developing institutions to help them strengthen their academic programs was clearly demonstrated this year, as it was last, in hearings before the Special Subcommittee on Education. But at the same time, concern was also expressed that the program might not reach those institutions for whose needs it was designed. It was primarily because of this concern that the Congress authorized only a 1-year program in 1965, so that there would be an opportunity to review the efficacy of the program this year. The following is a U.S. Office of Education report on the status of title III of Public Law 89-329, the strengthening of developing institutions: As of April 15, 1966 (the deadline for accepting applications), 309 institutions of higher education had submitted proposals for participation in the program. Included among the proposals were 283 cooperative arrangement proposals involving 700 institutions and requests for 1,003 national teaching fellowships. Public community colleges In the light of this status report, which precludes a meaningful evaluation at this time, and because of the continued concern of the committee, H.R. 14644 proposes only a 1-year extension of title III; that is, through fiscal year 1967. A $30 million authorization is proposed. Thus the Congress will have an opportunity next year to review and evaluate this innovative program. The committee also wishes to express again its intention that assistance under title III be exclusively provided on behalf of those institutions which are "struggling for survival" and "isolated from the main currents of academic life". The committee concurs in the description of the program as stated by Secretary Gardner when he said that this is "a program to help only the most grievously afflicted minority of a very large and important category of institutions". The American Council on Education, in testimony given before the subcommittee, declared: There can be no question about the need to strengthen our so-called developing institutions, particularly those whose student body is predominantly Negro and is drawn largely from inadequately supported, previously segregated secondary schools in the South. It is precisely the institutions described and emphasized in this statement which the committee intends to be the primary-if not the exclusive-recipients of assistance under this title. These are the institutions beset with problems which must often appear insoluble, and these are the institutions for which the program is intended. Section 1 SECTION-BY-SECTION ANALYSIS This section provides that this act may be cited as the "Higher Education Amendments of 1966." Section 2. Extension of grants for construction of undergraduate academic facilities Section 2 of the bill amends section 101 of the Higher Education Facilities Act of 1963 (referred to in the analysis of secs. 2 through 7 as "act"). Section 101 established the title I program of grants to institutions of higher education for the construction of undergraduate academic facilities. The program presently expires on June 30, 1968, but for the last 2 fiscal years of the program no appropriations have been authorized to carry it out. The amendment made by the bill would extend the program for 3 years, until June 30, 1971, and would authorize appropriations for the fiscal years ending in 1967, 1968, and 1969, of $453 million, $700 million, and $900 million, respectively. This section, in addition, makes a technical change in the provision of section 101 (b) relating to carryover of unused authorizations to con form it to a comparable provision added to section 201 (described in the analysis of sec. 4 of the bill). Section 3. Payments for administrative expenses and for planning This section amends section 105(b) of the act, which presently authorizes the Commissioner to expend not more than $3 million yearly for the administration of State plans under title I, for the first 2 fiscal years of the title I program. The amendment made by this section authorizes the expenditure for the fiscal years ending in 1967, 1968, and 1969 of $7 million yearly, of which not more than $3 million may be expended yearly for the administration of State plans under title I. The remainder is to be available for grants, to the State commissions which submit the State plans under title I, for comprehensive planning to determine construction needs of institutions of higher education (and combinations thereof). Section 4. Extension of grants for construction of graduate academic facilities; extending availability of appropriations Section 4 of the bill amends section 201 of the act, which established the title II program of grants to institutions of higher education for the construction of graduate academic facilities. This program presently expires on June 30, 1968, but for the last 2 fiscal years of the program no appropriations have been authorized to carry it out. The amendment made by this section of the bill would extend the program through the fiscal year ending in 1971, and would authorize appropriations of $60 million, $90 million, and $120 million for the fiscal years ending in 1967, 1968, and 1969, respectively. This section also makes two technical changes in section 201. First, any excess of (1) a specific authorization for title II for a fiscal year, over (2) the appropriation pursuant to such authorization, may be carried over and added to the authorization for the succeeding year (if there otherwise is an authorization for such year). Second, appropriations for a fiscal year for title II would remain available until expended, instead of remaining available through the second succeeding fiscal year, as under present law. Section 5. Extension of loans for construction of academic facilities This section amends section 303(c) of the act which contains provisions applicable to the title III program of loans to institutions of higher education for the construction of academic facilities. Section 303 (c) presently provides that the title III loan program will expire on June 30, 1968, but does not provide an authorization of appropriations for the last 2 years of the program. The amendment made by this section would extend the program through the fiscal year ending in 1971, and would authorize $200 million yearly for the fiscal years ending in 1967, 1968, and 1969, for carrying out the program. In addition, the amendment makes several technical changes in the provisions relating to carryover of unused authorizations and of unexpended appropriations to conform these provisions to the comparable provisions added to section 201 (described in the analysis of sec. 4 of the bill). Section 6. Clarifying amendment of definition of development cost This section amends the definition of "development cost" in section 401 (c) of the act. Development cost presently encompasses the cost to the institution of construction of an academic facility (including necessary site acquisition and improvement) less the amount of Federal assistance made available, and certain non-Federal contributions required, under other Federal programs. The amendment would include in development cost the cost of acquisition of works of art for the facility, to the extent that such cost does not exceed 1 percent of the cost of construction and site acquisition and improvement (computed without any deduction on account of Federal assistance made available, or of non-Federal contributions required, under other Federal programs). Section 7. Repeal of authority to prescribe a schedule of fees for certain inspections and related activities Section 7 of the bill repeals section 304 (b) of the act which permitted the Commissioner to condition loan agreements under title III upon the payment of fees (a schedule of which the Commissioner could prescribe) covering the costs of inspections at the site of projects being constructed with title III loans. The section also permitted the Commissioner to utilize other agencies on a reimbursable basis for making such inspections. Section 8. One-year extension of assistance to developing institutions Title III of the Higher Education Act of 1965 established a 1-year program (expiring on June 30, 1966) designed to encourage cooperative arrangements for assistance to certain financially handicapped colleges ("developing insitutions"), and to provide fellowships to encourage outstanding graduate students and junior faculty members to teach at such colleges. This section amends section 301(b)(1) of that title to extend the program for another year by authorizing $30 million for the fiscal year ending in 1967. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED In compliance with clause 3 of rule XIII of the Rules of the House of Representatives, changes in existing law made by the bill, as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italics, existing law in which no change is proposed is shown in roman): HIGHER EDUCATION FACILITIES ACT OF 1963 * TITLE I-GRANTS FOR CONSTRUCTION OF APPROPRIATIONS AUTHORIZED SEC. 101. (a) The Commissioner of Education (hereinafter in this Act referred to as the "Commissioner") shall carry out during the fiscal year ending June 30, 1964, and each of the [four] seven succeeding fiscal years, a program of grants to instititions of higher education for the construction of academic facilities in accordance with this title. (b) For the purpose of making grants under this title, there is hereby authorized to be appropriated the sum of $230,000,000 for the fiscal year ending June 30, 1964, and for the succeeding fiscal year, |