Because of this legislation, the Department's education programs have expanded dramatically. In 1964, about $700 million was appropriated to the Office of Education; the 1967 budget calls for $3.5 billion, a fivefold increase over the period.

ELEMENTARY AND SECONDARY EDUCATION

A milestone in the history of American education was achieved last year with the enactment of the Elementary and Secondary Education Act. This act recognized that the equalization of educational opportunity must begin with the improvement of educational quality in schools serving low-income areas. Over $1 billion is included in the 1967 budget for the Elementary and Secondary Education Act, of which almost $1.1 billion is for title I aid to low-income areas alone.

The act also authorized Federal aid to insure that students everywhere may have books and other instructional materials necessary to improve the quality of elementary and secondary education. In addition, other titles of the act provided for the establishment of supplementary education centers and services within the community, and for strengthening of educational leadership at the State level by offering financial assistance to State departments of education. The 1967 budget requests increases for each of these programs, with special emphasis on expanding support for supplementary centers.

TEACHER TRAINING

Teacher training is an essential element in improving educational quality. Under the Higher Education Act of 1965, the new Teacher Corps program was authorized to provide teacher training for persons to serve in low-income areas. We are requesting a 1966 supplemental to begin this program and a sizable increase in 1967 so that by the end of next year there will be 3,750 Teacher Corps members in service.

The Higher Education Act also authorized teacher fellowships and support for strengthening teacher education programs in higher educational institutions. With our 1967 request, we would be able to award about 5,800 teacher fellowships and to support 50 teacher education programs. Other teacher training programs would receive a high level of support in the 1967 budget, including the National Defense Education Act institutites, newly expanded under the Higher Education Act.

IMPACTED AREA AID

Before going on, I would like to take a moment to discuss the impacted area aid programs. In keeping with a study recently completed by the Stanford Research Institute, the 1967 budget proposes a decrease in Federal aid to school districts serving children whose parents work or live on Federal property. The study concluded thatbecause the families of such children are often established members of the community and because they all pay State and local taxes of one kind or another school districts affected by Federal activities should absorb a greater share of the cost of serving Federal families.

In addition to proposing absorption on the part of school districts along the lines suggested by the Stanford Research Institute study, the cutback in Federal aid of this kind is proposed at this time in recognition of the fact that school districts generally are now eligible

for greatly increased and more uniform Federal assistance under the newly enacted Elementary and Secondary Education Act.

Our proposals to modify this program in 1967 are aimed at bringing the level of aid more closely in line with the actual economic impact of Federal activities on local school districts.

SUPPORT FOR HIGHER EDUCATION

Allowing each individual to develop his full potential means offering him the opportunity of a higher education if he has the ability. Through student assistance and the higher education facilities program this opportunity is expanded.

The enactment of the National Defense Education Act in 1958 marked the beginning of Federal assistance to students through the student loan program. Since 1959, 1.7 million loans have been made under this program, totaling over $800 million.

The Economic Opportunity Act of 1964 established a second student assistance program, the college work study program, aimed at providing employment opportunity for needy students. The Higher Education Act of 1965 broadened the student assistance programs further. An insured loan program was established for students not qualifying under the student loan program. For the first time, undergraduate scholarships were authorized. The college work-study program was expanded and transferred to the Office of Education, which is now responsible for all the student assistance programs. In 1967, our budget request would permit 1,150,000 students to receive loans, 220,000 to receive scholarships, and 210,000 to participate in the college work-study program-overall, an increase of 64 percent over the 1966 figures.

In 1967, the budget proposes a modification in our older student loan programs. We are recommending new legislation which would utilize private capital for the loans while preserving the low-interest, teacher cancellation, and other special provisions of the present student loan programs. We are now laying plans to meet with educational institutions and others interested in this program to work out details for the transition from the direct Federal program to the proposed loan guarantee system.

Under the NDEA graduate fellowship program, 11,500 graduate fellowships were awarded from the beginning of the program through last year. In 1966, about 10,500 will be awarded; under our 1967 request, this number would increase to 15,000.

The student assistance programs are designed to enable more individuals to pursue a higher education. But this expansion of opportunity will require more academic facilities to accommodate rising enrollment. It is the purpose of the higher education facilities program to meet this need. Under this program, almost $1.1 billion has been appropriated in 1965 and 1966, the first 2 years of the program, and in 1967 we are requesting appropriations of $723 million. This request will support over 1,200 grants for construction projects at public community colleges, technical institutes, and other higher education institutions. The 1967 budget will also provide for about 250 construction loans. In extending the legislation, we are proposing to change the character of the construction loan program to decrease the Federal capital contribution through the use of the private credit market in the sale of loan participations.

Expansion of Federal aid to higher education has been rapid and dramatic-in the programs of the Office of Education, from $164 million appropriated in 1964 to over $1.2 billion requested in the 1967 President's budget. It is because of this recent and tremendous growth that we are not requesting in 1967 the relatively small amount in annual funds authorized and specifically earmarked for the land-grant colleges. They will, of course, continue to participate in our other higher education programs.

The Higher Education Facilities Act provides assistance for the construction of college and university libraries; the 1965 Higher Education Act authorizes aid for purchasing library books and materials, training professional librarians, and conducting research and demonstration projects to improve library services. We are requesting a 1966 suplemental to initiate these library programs, and the 1967 budget calls for greatly increased support, providing for about 2,700 grants for library resources, 800 traineeships, and 70 research and demonstration projects.

We are requesting substantial increases in 1967 for two other programs under the Higher Education Act. The first of these is the new program of grants to States for strengthening community service programs of institutions of higher education in order to assist in the solution of community problems-in much the same way as land-grant institutions have demonstrated their ability to deal with the problems of the farm. In 1967, we plan to involve 250 higher educational institutions in this program.

The second program is one which authorizes grants for cooperative projects to upgrade faculty and academic quality of developing colleges. In 1966, the first year of the program, we expect to support 110 projects; the 1967 budget would provide support for 6 times that many.

OTHER SUPPORT FOR EDUCATION

In addition to the programs already mentioned, the Elementary and Secondary Education Act provided authority for a greatly expanded educational research program. In passing the act, the Congress recognized that improvement in educational quality will depend on educational research and the early success of efforts to disseminate its results. In 1965, about $16 million was appropriated for the educational research program; in 1967, we are requesting five times that amount. In addition to research projects, the request will support educational research training, research centers concentrating on specific problem areas in education, and regional education laboratories. The regional laboratories will involve State educational departments and local school personnel in conducting research and bringing innovations quickly into practice. By 1967, we plan to support 12 of these regional laboratories and 11 research centers.

Legislation enacted last year also expanded the research and demonstration program in education of the handicapped, as well as the program to train professional personnel in fields related to education of handicapped children. Under our 1967 budget request, more than 9,100 persons would receive training, an 80-percent increase over the number trained in 1965.

Up-to-date vocational training is an essential element in our overall lucation program. In our 1967 budget, we would continue basic sup

port for vocational education at the 1966 level, more than six times the amount appropriated in 1964. In addition, we are requesting the remaining amount authorized for area vocational schools under the Appalachian Regional Development Act. The total appropriation requested for vocational education in 1967 is slightly below the 1966 amount because a portion of the vocational education work-study program will be shifted to the Office of Economic Opportunity.

One of the most successful programs of the Office of Education, support for library services and construction provides expanded opportunities for individual self-development. Since its inception, new or improved public library services have been made available to 65 million persons. With construction grants, assistance was made available in 1965 to support the construction and renovation of 363 libraries serving an estimated 23 million persons; an additional 400 projects will be supported each year in 1966 and in 1967.

HEALTH

Improvement of the Nation's health is a central aspect of our investment in human resources. The last 3 years have seen major legislative gains in all aspects of our national health programs, culminating in the Social Security Amendments of 1965.

SOCIAL SECURITY AMENDMENTS OF 1965

The Social Security Amendments of 1965 provide for comprehensive health care programs for the aged and for major changes and expansions of child health and other welfare programs. Of greatest significance are the medicare sections of the amendments which provide a basic program of hospital insurance, extended care, and home health services for the aged, financed through social security; a voluntary supplemental program covering doctors' fees and some other health services; and an expanded program of Kerr-Mills medical assistance for the needy aged, dependent children, the blind, and the disabled.

The Social Security Administration has sent information on the medicare program to over 17 million of the 19 million who will be eligible for benefits in July, and another 1 million of those receiving old age assistance will be reached through local welfare agencies. To reach the remaining persons, special projects are being undertaken in cooperation with the Office of Economic Opportunity, the Department of Agriculture, and with senior citizens groups. We are particularly concerned that all eligible persons be given an opportunity to sign up for supplementary medical insurance by the March 31 deadline. In the new medical assistance programs under public assistance, we estimate that increased 1967 requirements will be devoted particularly to health care for dependent children.

The 1965 amendments also provided major expansion in support for maternal and child health services and crippled children's services, and they established a new program of project grants to provide comprehensive health care and services for needy children of school and preschool age. In 1967, we are requesting the full authorization for these programs.

COMMUNITY HEALTH PROGRAMS

The new health programs may be expected to have a tremendous impact on the provision of health care in the community. It is in anticipation of this impact that we have established in the Public Health Service a program to deal with medical care administration. The pur pose of this new program is to improve the quality and expand th

availability of medical care, especially to older persons, in all settings, the hospital, the clinic, the physician's office, the home, and in extended care facilities. To make home health services more readily available, a new grant program is administered by the Public Health Service to offer assistance to States in the development of home health services under the health insurance program. This new program also includes standard setting, coordination of the health insurance activities with other State and local medical care activities, and other activities related to the providers of medical services.

Under new legislation in the 1967 budget, we propose to reorient support of health activities to provide effective coordination between Federal health programs and those of State and local groups. The purpose is to achieve more effective utilization of scarce manpower and other resources through cooperative arrangements among the Federal Government, the States, local government, and nonprofit agencies. Grants would be available for comprehensive State and local area planning for services, facilities, and manpower. Several of the existing categorical grant programs would be converted to provide a more effective base for support and stimulation of comprehensive health services. Under new legislation we would also propose to support new programs aimed at improving the quality and efficiency of medical services by developing new ways of providing them.

HEALTH FACILITIES AND MANPOWER

If we are to fulfill the promise of recently enacted legislation for expanded health services we must insure that the facilities and trained manpower are available to make this possible.

The Hospital and Medical Facilities Amendments of 1964 expanded the hospital construction program and authorized a far-reaching new grant program for modernization or replacement of existing facilities, particularly in urban areas where the greatest need exists. The first of these modernization grants was awarded recently. In 1967, we are requesting the maximum authorization for all parts of the facilities construction and modernization program.

One of the most pressing needs we face in the provision of health care is for substantial growth in the number of trained medical and paramedical personnel. It was to meet this need that the Health Professions Educational Assistance Act was enacted 3 years ago and expanded last year. It is our goal under this act to provide partial support for the creation of 20 to 25 new medical schools over the next decade. We hope to increase the number of physicians each year from the present 8,800 to 12,700 by 1971.

In 1967, we are requesting a very substantial increase for construction of health educational facilities for medical, dental public health, nursing, and other health personnel. The response to this program far exceeds the amounts available: we have already approved grants to aid in the construction of facilities for eight new medical schools. In the health research facilities program of the National Institutes of Health we will give first priority to those facilities required by new and expanding medical schools.

The largest increase in operational support for health education requested in 1967 is in the grants for improvement of educational qualv. Health professions scholarships were newly authorized in the 65 Health Professions Amendments, and we are requesting a proram expansion in 1967. Under proposed legislation, we would begin in education and training program to overcome existing critical shortages of medical technoliɗists and other allied health profes