WEDNESDAY, August 16, 1961.

ASSISTANCE FOR U.S. CITIZENS RETURNED FROM

FOREIGN COUNTRIES

WITNESSES

MISS KATHRYN D. GOODWIN, DIRECTOR, BUREAU OF PUBLIC AS

SISTANCE

ANDREW R. N. TRUELSON, ASSISTANT DIRECTOR, BUREAU OF PUBLIC ASSISTANCE

ROY L. WYNKOOP, ADMINISTRATIVE OFFICER, SOCIAL SECURITY ADMINISTRATION

JAMES F. KELLY, DEPARTMENT BUDGET OFFICER

Mr. THOMAS. Also in House Document No. 217, you are requesting $575,000 for assistance to U.S. citizens returned from foreign countries. [Reading:]

For necessary expenses of carrying out section 1113 of the Social Security Act, as amended (42 U.S.C. 1301-1312), including reimbursement to the "Emergency Fund for the President, National Defense," fiscal year 1962, for expenditures heretofore made during the current fiscal year for welfare services and emergency financial assistance to repatriated American nationals, $575,000; Provided, That the appropriation granted in the Department of Health, Educa

tion, and Welfare Appropriation Act, 1962, for "Hospitalization and Services for Repatriated Mentally Ill American Nationals," shall be merged with this appropriation.

Is that subject to a point of order?

Mr. KELLY. I do not believe so.

Mr. THOMAS. This is new legislation, is it not?

Miss GOODWIN. Yes, sir.

GENERAL STATEMENT

Mr. THOMAS. The prepared statement of the Director of Public Assistance will be inserted in the record at this point.

(The statement follows:)

OPENING STATEMENT BY DIRECTOR, BUREAU OF PUBLIC ASSISTANCE, SOCIAL

SECURITY ADMINISTRATION

The Social Security Act Amendments of 1961, Public Law 87-64, approved June 30, 1961, contains new authority for the Secretary of Health, Education, and Welfare to provide temporary assistance and care to needy U.S. citizens and their dependents who are identified by the Department of State as having been returned to this country because of destitution, illness, war, threat of war, invasion, or similar crisis. Since this new authority became law after the consideration of our 1962 estimates by the Congress, it is necessary to request funds in a supplemental appropriation for the implementation of the program for the remainder of the fiscal year.

Plans for emergency evacuation of civilians from oversea areas to the United States have been for some years a part of U.S. defense planning. The agencies of the Federal Government responsible for our national security have long recognized the need to have machinery ready to be put into operation in the event of an international crisis, for the return to this country of the many U.S. citizens who are living in all areas of the world. The Department of Health, Education, and Welfare has cooperated in development of plans for the reception of such evacuees when they reach the United States, for helping them to reach their destination within the United States, and to provide emergency assistance to those without resources.

Since February 1961, the Department, under an allocation of funds from the President's emergency fund, has been rendering assistance to needy U.S. citizens who have returned from Cuba. As of the end of June, the number of U.S. citizens from Cuba who were receiving cash assistance was 103. We estimate that this number will increase to about 170 such cases in July and to 200 in August. It is difficult to predict how many persons will require assistance during the remaining 10 months of the fiscal year, but we have estimated that the August level of 200 cases will remain constant throughout the fiscal year. In other words, we assume that to the extent new assistance cases are added, other cases will be closed. Based upon an average monthly payment of $130 per family, this results in an estimate for cash assistance to U.S. repatriates from Cuba of $332,000. It is estimated that transportation to places of former residence or to join relatives will require approximately $62,000; medical care, $18,000; and other goods and services, $13,000. Thus the total estimate for the U.S. repatriates from Cuba is $425,000. In addition, because of the difficulty in estimating the number of persons who will need assistance, a $50,000 contingency has been provided in the estimate.

An amount of $75,000 is estimated as the cost of assisting persons returned from countries other than Cuba in 1962. For a number of years, the Department of State has requested the assistance of the Department in arranging for the reception and care of U.S. citizens who, due to ill health, destitution, etc., have had to return to this country. The Department of State identifies the persons as having returned to this country under these conditions. During the fiscal year 1961, the Department of Health, Education, and Welfare received 83 such referrals for the very limited assistance that could be obtained through nonFederal agencies. The 1962 estimate assumes that the number of repatriated families in need of assistance will continue to increase and that 120 will require some form of assistance or care during the year.

Finally, $25,000 is requested for administrative costs which must be incurred in implementing the program. Mr. Chairman, that concludes my statement. We shall do our best to answer any questions that you may have about the request.

JUSTIFICATION OF THE ESTIMATE

Mr. THOMAS. Also the appropriate pages of the justifications will be included in the record.

(The justifications follow:)

JUSTIFICATION

INTRODUCTION

The Social Security Amendments of 1961, Public Law 87-64, approved June 30, 1961, added a new section to title XI of the Social Security Act.

This legislation authorizes the Secretary of Health, Education, and Welfare to develop plans and make arrangements for providing temporary assistance and care within the United States to U.S. citizens and their dependents who are identified by the Department of State as having returned, or been brought back, to this country because of destitution, illness, war, threat of war, invasion, or similar crisis and are without available resources. The legislation provides a basis for the Federal Government to pay for reception and care when these individuals reach the United States, for helping them to reach a destination within the United States where they have friends or relatives, and for temporary assistance.

The Department of Health, Education, and Welfare plans to utilize to the fullest extent possible its working relationships with the State welfare departments in carrying out the program. In those instances where State agencies do not desire to participate in the program, appropriate arrangements for providing services, care, or financial assistance will be made with voluntary welfare organizations. Administration of the program would be by the Bureau of Public Assistance in the Social Security Administration,

BUDGET ESTIMATE

An amount of $575,000 is requested for this program in fiscal year 1962. Of this amount, it is estimated that $425,000 will be required for persons returned from Cuba and $75,000 for persons returned from other countries. Because the nature of this program is such that it is very difficult to estimate requirements, an additional amount of $50,000 is included as a contingency for meeting emergency situations that may arise, necessitating assistance for a caseload somewhat higher than that which can now be foreseen. An amount of $25,000 is requested to administer the program. An explanation of the estimate follows: 1. U.S. citizens returned from Cuba

Early in calender year 1961, an acute need arose to provide assistance and aid to needy U.S. citizens who returned from Cuba because of the activities of the Castro regime. Such care was financed by an allocation of $30,000 from the President's emergency fund. For Fiscal Year 1962, until an appropriation can be obtained, funds are again being allocated from the President's emergency fund. The language in this appropriation request, however, provides that funds allocated in 1962 from the President's emergency fund will be reimbursed. For this reason, the $425,000 requested for assistance to U.S. citizens returned from Cuba during 1962 is presented on a full year basis.

Financial assistance payments. It is estimated that $332,000 will be required for assistance payments in fiscal year 1962. This estimate is based primarily on the current operation in Florida (the State in which the majority of these persons are entering the country). A small number of families are being assisted in other States. The abortive invasion in April, followed by advice to U.S. citizens in Cuba to return to this country, has resulted in an increase in the number returned and in the number requiring assistance and services in the last several months. During April, there were 37 families receiving assistance in Florida. By the end of May, this number had increased to 57 and to 103 by the end of June. Based on data supplied by the Florida Department of Public Welfare, it is estimated that the number will increase to 170 families in July,

and to 200 in August. It is assumed that the average number of families will re main at 200 in September and for the remainder of fiscal year 1962. In the other States, the estimate assumes that 6 families will be assisted in July, 13 in August, and 17 in September, with the average number remaining at 17 families a month for the remainder of the fiscal year.

The average monthly payment for fiscal year 1962 has been estimated as $130 per family, the same as the average payment per family to date in Florida based on the latest information available on this item.

Transportation, medical care, and other goods and services.-For fiscal year 1962, it is estimated that $93,000 will be required for these items of expense, as follows:

Transportation for persons to return to places of former residence, join relatives, or go to jobs in other parts of the country. This is based on an estimate of 25 families a month__.

Medical care__

Other goods and services__.

2. Citizens returned from countries other than Cuba

$62, 000

18, 000

13, 000

93, 000

Specific information as to the types of problems that will arise or the number of persons that will require assistance or services cannot be predicted. It is known that more than 600,000 U.S. citizens, not including members of the Armed Forces, are living and working in foreign countries. In addition, hundreds of thousands of U.S. tourists each year are traveling abroad.

For a number of years, the Department of State has requested the assistance of the Bureau of Public Assistance in arranging for the reception and care of U.S. nationals who, due to ill health, destitution, etc., need to be returned to this country. In fiscal year 1960, the Bureau received approximatley 50 such referrals for the very limited assistance that could be obtained through non-Federal agencies. In fiscal year 1961, there were 83 such referrals-an increase of 33 over 1960. A similar increase is estimated for 1962.

It is estimated that $75,000 will be required to assist persons returned from other countries in 1962. While there is no cost experience upon which to base an estimate for this group, to the extent feasible, cost estimate data for those from Cuba have been used. An explanation of the estimate follows:

Number of families to be aided.—It is anticipated that the number of families in need of assistance who are returned from foreign countries will continue to increase and that 120 such cases will be received in fiscal year 1962.

Financial assistance payments.-It is estimated that $39,000 will be required for assistance payments in fiscal year 1962 for those persons for whom employment or resources cannot be located or residence established in the first few months following arrival in this country. The estimate would provide for an average of 5 months' assistance for one-half of the 120 families at average monthly payments of $130, the same average payment as for the group from Cuba.

Transportation, medical care, and other services.-For fiscal year 1962, it is estimated that $21,000 will be required for the following items of expense: Transportation for persons to return to places of former residence, join relatives, or go to jobs in other parts of the country. This is based on an estimate of 5 families a month..

Medical care..

Other goods and services___.

$12,000 6, 000 3,000

Total

21,000

Cost for reception at port of entry.-It has been estimated that the cost of meeting the immediate needs upon debarkation at various ports of entry will average $125 per family, or a total estimate of $15,000 for this purpose. This includes cost for such items as clothing, food, temporary shelter, communication with relatives, etc.

3. Contingency funds

An amount of $50,000 is included in the estimate as a contingency for meet, ing emergency situations that may arise necessitating assistance for a caseload somewhat higher than can now be foreseen. There are a number of elements in this program which make it difficult to forecast the extent to which the Federal

Government may be called upon to furnish the type of assistance contemplated by the program. For example, there is very limited data upon which to base projections for assisting U.S. citizens repatriated from Cuba; the estimate assumes, therefore, that there will be no increase in cases to be assisted beyond the number anticipated for August by Florida. The Department of State is not yet able to provide information on the number of U.S. citizens still remaining in Cuba. It has asked the Swiss Embassy in Cuba if it can ascertain such information. It is not known to what extent persons already returned from Cuba may yet need to apply for assistance because they have exhausted their limited resources. The amount estimated for assisting persons who are returned from other countries is based on a caseload rate of persons who would have been entitled to assistance under this program that were returned to the United States in fiscal years 1960 and 1961. It is possible that this estimate may also be low. The contingency fund, in addition to providing some leeway in the event the estimates set forth in items 1 and 2 above prove insufficient, might also be needed to help meet emergent situations arising in other countries requiring a sizable number of persons to be repatriated.

4. Administrative costs

It is estimated that three positions (GS-13, GS-12, and GS-5) will be required to administer this program. Staff will be required to work with State and local public welfare agencies and with voluntary welfare agencies to develop plans for providing assistance and services; to assure recoveries from those receiving assistance where applicable; and to assure that wherever possible permanent arrangements are made so that assistance under this program can be terminated as soon as possible, and to perform other functions.

To finance these three positions and related administrative costs, it is estimated that $25,000 will be required in 1962.

Mr. THOMAS. You are really covering the waterfront. You are going to take care of some of our people who are hard pressed, who have been over in Cuba.

An amount of $575,000 is requested for this program in fiscal year 1962. Of this amount $425,000 is the amount estimated for persons returning from Cuba and $75,000 for persons returned from other countries. Because of the nature of the program it is such that it is very difficult to estimate the requirements and, therefore, an additional amount of $50,000 is included as a contingency for meeting an emergency situation.

An amount of $25,000 is requested to administer the act. So you have four figures: $425,000 for repatriates from Cuba; $75,000 from the other parts of the world; you have an administrative cost of $25,000 and you have some mentally ill folks you bring from other countries here and I suppose $50,000 covers them.

FUNDS FOR MENTALLY ILL

Mr. TRUELSON. The mentally ill, Mr. Chairman, is in a separate appropriation request. That is why this language is proposed to merge the two appropriation requests. The amount of $364,000 that has already been considered by the House and the Senate is now in conference.

Mr. THOMAS. Is that language subject to a point of order?

Mr. KELLY. I do not believe so.

Mr. THOMAS. How much is involved for bringing in mentally ill? Mr. TRUELSON. $364,000.

Mr. THOMAS. That is a separate amount. That will give you in the neighborhood of $950,000 all together, will it not?

Mr. WYNKOOP. Yes, sir.