voluntary agencies and institutions in finding solutions to vocational rehabilitation problems common to all or several States.

The amount made available for special projects under the House bill would in effect create a "moratorium" for initiating new rehabilitation research and demonstration projects. To obtain returns on the 1955 special project investment requires support be continued until the projects are completed. The funds provided in the House bill can hardly support projects approved and initiated during fiscal 1955. No new projects could be approved during the balance of this fiscal year or throughout the entire 1956 fiscal year.

The special projects program has only become operative since the latter part of December. As in all new programs a "tooling up" period is necessary. This required primarily the development of policies and procedures and the appointment of a National Advisory Council on Vocational Rehabilitation. Although the agencies and institutions which would be expected to participate were not acquainted with the objectives of the special-project program, nevertheless, by February 20, 1955, 28 applications totaling about $650,000 had been received. The first meeting of the National Advisory Council was held on March 7-8, 1955. Eleven of the twenty-eight projects, requiring the total funds available ($215,000), were selected as holding the most promise of making a substantial contribution to the vocational rehabilitation program. Action on 7 projects totaling $147,000 was deferred to the June meeting.

The first group of 28 projects had good variety-from the useful fact-finding study of workers in the agencies for the blind submitted by the American Foundation for the Blind-to the imaginative and experimental ones like the Denver research project for vocational rehabilitation of intracable asthmatics, rehabilitation of Navaho Indians in tuberculosis hospitals, and a demonstration workshop for young mentally retarded adults.

It is estimated that applications requesting $208,000 will be received between March 9 and June 30. These when added to the total previously received will make total requests of $858,000 for fiscal year 1955.

On the basis of the introductory volume of applications, it is estimated that the total amount of special-project grant requests that will be received for consideration during 1956 will be close to $2,500,000. As the program becomes known, the volume can be expected to increase. It is recognized that some selection must be exercised and that not every application can or should be approved. Therefore, $1,500,000 is a conservative estimate of what is needed to (1) continue support of the projects initiated during 1955, and (2) to support new projects approved and initiated during fiscal 1956, all of which will contribute to the solution of vocational rehabilitation problems common to all or several States.

TRAINING AND TRAINEESHIPS

APPROPRIATION ESTIMATE

Training and traineeships: For training and traineeships [, $900,000, of which $500,000 shall be available for grants] pursuant to section 4 of the Vocational Rehabilitation Act, as amended, and [$400,000 shall be] for carrying out the training functions provided for in section 7 of said Act[: Provided, That not more than $2 of the funds herein appropriated, granted pursuant to section 4 of said Act, shall be expended for each $1 that such grantee, or the State and the grantee, expends for the training of the same individuals]: $2,350,000.

EXPLANATION OF LANGUAGE CHANGE

The deletion of the provision earmarking appropriation for section 4 and section 7, respectively, will greatly facilitate the development and administration of the training program. Teaching grants, traineeships, short-term courses of instruction, and the training of physicians must all be fitted together in various professional specialties. Maximum flexibility is most essential and would contribute greatly to ease and economy of operations.

The deletion of the matching requirement which required the expenditure of $1 by the grantee, or the State and the grantee, in order to secure $2 under the provisions of section 4, delayed considerably the development of training proposals. Many institutions were reluctant to undertake training in such comparatively unexplored fields as rehabilitation counseling under the matching conditions.

The expansion of the rehabilitation program and the development of comprehensive rehabilitation services is dependent upon the availability of trained personnel. A large part of the funds requested in the budget estimate for training and traineeships in 1956 was planned to initiate a program of specialized training of physicians in physical medicine and rehabilitation, an important part of the professional rehabilitation team. It is in this area that the shortest supply exists. Heavy emphasis must be placed upon a continuing program of fellowship support to young physicians for training in physical medicine and rehabilitation. There are too few openings to provide this training and it is crucial that each of them be filled. The House allowance of $1,800,000 would continue the program only at the level established in fiscal year 1955. To deal with the physician shortage under the amount provided by the House would require a drastic reduction in training programs initiated this year, and result in serious curtailment in overall plans for training of physicians and nurses, programs for whom could not be initiated this year because of insufficient funds. It is essential therefore that the $550,000 cut by the House be restored.

In addition, it is most important that the appropriation language be modified to delete provisions which earmark funds for section 4 and section 7, respectively. Establishing limitations within the appropriation act restricts the administration of the program at a time when maximum flexibility is needed to facilitate the development of the training program as a whole.

The 1955 appropriation act contains provisions which limit funds for section 4 to $500,000 and $400,000 for section 7. These limiting provisions require that grants for training and traineeships be made in several different operations to the same institution. Furthermore, procedures must be established to provide for the central selection of trainees under section 7, thus making it necessary to go through the mechanics of selecting candidates as a direct Federal operation after acting upon the recommendation of the school or institution the trainee will attend. The request for the deletion of the limitations prescribed for section 4 and section 7 would allow a single grant to be made in one operation to an institution for both a teaching grant and a specified number of traineeships, providing for the administration of the program in a coordinated and simplified process.

Teaching grants, traineeships and training of all types of personnel are so interrelated that an integrated system of administration is essential to assure a balanced program of services to the disabled.

SALARIES AND EXPENSES

APPROPRIATION ESTIMATE

Salaries and expenses: For expenses necessary in carrying out the provisions of the Vocational Rehabilitation Act, as amended, and of the Act approved June 20, 1936 (20 U. S. C., ch. 6A) as amended, including not to exceed $3,000 for production, purchase, and distribution of educational films; [$635,000] $1,223,000.

We are requesting that the reduction of $223,000 in the House bill be restored to provide the full amount of the estimate, $1,223,000, for fiscal year 1956. It is imperative that this amount be appropriated in-order that the Office may render the minimum necessary assistance to the States.

The additional responsibilities placed in the Office of Vocational Rehabilitation by the enactment of Public Law 565 include the following: The introduction of training programs, cooperative undertakings with nonprofit organizations, assistance in the establishment of rehabilitation centers and other specialized facilities, services related to the function of the ational Advisory Council on Vocational Rehabilitation, giving greater preference to and broadening services to the blind in the operation of vending stand programs, implementation of the "disability freeze" provisions of the Social Security Act, increased emphasis on the placement of the handicapped and the promotion of job opportunities, and greater responsi

bility for demonstrating to the States the abilities, aptitudes and capacities of the physically disabled.

It is clear that the requirements of the new law make necessary specific changes in our traditional approach to the administration of the vocational rehabilitation program. The role of the Office is much greater in scope. The broad new responsibilities I have outlined require the development of an organization and the procedures necessary to assure the maintenance, strengthening and improvement of the vocational rehabilitation program. To fulfill our obligation in the Federal-State effort, substantial changes in the functions and activities of the Office are necessary. The many new activities require the Office of Vocational Rehabilitation to develop a more effective program of administration, training, and public education. We must assume responsibility for, and provide the leadership necessary to make this expanded program successful.

For many years we have had no increases in "Salaries and expenses" until the current year, when a supplemental appropriation was provided. In fact, we have been having a slow attrition, and have been more or less static for the last 5 years. This is the first major increase we have requested, and it is related directly and completely to our responsibilities under the new law; it is an effort to staff up to what our best estimate is of what we need to make the President's program effective.

Every day we are asked for assistance by the States and are unable to provide services, we know of our need for increased staff. To meet these requests we must employ the requisite number and type of specialists to assist the States in the many areas of disability including the blind, hard of hearing, mentally retarded and other severely disabled categories. In addition, it is essential that staff be available to assist the States in solving organizational and developmental problems resulting from the broadened program.

PREPARED STATEMENT

STATEMENT BY THE DIRECTOR, OFFICE OF VOCATIONAL REHABILITATION GRANTS TO STATES AND OTHER AGENCIES, OFFICE OF VOCATIONAL REHABILITATION The new Vocational Rehabilitation Act provides the legislative framework for the expanded vocational rehabilitation program which reflects the desires of the President and Congress. It broadens the scope and range of services and revises the financing structure for the support of the program. It establishes a sound basis for State program planning and administration and for States to join with communities and nonprofit groups to rehabilitate more of their disabled persons than ever before, and to do so more effectively.

The national goals set by the President and the Congress are to achieve a progressive expansion of vocational rehabilitation services over a period of 5 years so that the number of disabled men and women rehabilitated each year will increase from less than 60,000 to 200,000 a year by 1959.

Five basic steps are required to establish a firm basis upon which to build the expanded program. State administrative organization and operations, increased State financial support and program planning must be geared to the progressively increased annual rehabilitation goals. The flow of the increased supply of professional personnel in rehabilitation specialties supplied by the new vocational rehabilitation training program must be synchronized with the acceleration of the number of disabled to be rehabilitated. Projects to extend and improve vocational rehabilitation services under section 3 of the act over and above those currently provided and to make a substantial contribution to the solution of rehabilitation problems of common concern through research and demonstration under section 4 must be planned and initiated. Emphasis must be directed to expanding the present and establishing additional rehabilitation facilities and sheltered workshops for the severely disabled or special categories of the disabled. Active community administrative and financial participation and the enthusiastic support and cooperation of other public and private groups must be obtained and maintained. Progress has been marked in each of these steps. Proposed language changes

State legislatures are meeting for the first time since the enactment of the new Vocational Rehabilitation Act on August 3, 1954. In most States 1956 marks the first year of a biennium. For all States it will be the first full year of operation under the new act. It is, consequently, of the utmost importance to have adequate financial support of the program at this crucial stage of program operations.