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Senator KERR. It may be put into the record.

(The proposed draft of a bill incorporating the amendments recommended by Dr. Eliot, which the American Parents Committee recommends be adopted as amendments to H.R. 10606 or S. 2273, follows:

A BILL To amend title V. parts 1 and 2, of the Social Security Act (1) to increase the amounts authorized for maternal and child health services and crippled children's services, especially in rural areas and areas of severe economic distress, and (2) to provide for grants to the States to enable them to assist their large cities in extending and improving their services for promoting the health of mothers and children and for medical and other services for children who are crippled or suffering from conditions which lead to crippling

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That parts 1 and 2 of title V of the Social Security Act are amended to read as follows:

"PART 1-MATERNAL AND CHILD HEALTH SERVICES

"SEC. 501. For the purpose (a) of enabling each State to extend and improve, as far as practicable under the conditions in such State, services for promoting the health of mothers and children, especially in rural areas and in areas suffering from severe economic distress, and (b) of enabling each State to determine its urban trends and problems in respect to the health of mothers and children, and enabling each State having one or more cities of 100,000 population or more (hereinafter referred to as large cities) to make grants to such cities proportional to the number of live births in such cities and to their financial and other need for assistance in providing services for promoting the health of mothers and children, there is hereby authorized to be appropriated pursuant to section 501 (a) for the fiscal years ending June 30, 1963, and 1964, the sum of $30,000,000, for the fiscal years ending June 30, 1965, and 1966, the sum of $35,000,000, for the fiscal years ending June 30, 1967 and 1968, the sum of $40,000,000, for the fiscal years ending June 30, 1969 and 1970, the sum of $45,000,000, and for the fiscal year ending June 30, 1971, and for each fiscal year thereafter the sum of $50,000,000; and there is hereby authorized to be appropriated pursuant to section 501 (b) for the fiscal years ending June 30, 1963 and 1964, the sum of $10,000,000, for the fiscal years ending June 30, 1965 and 1966, the sum of $12,500,000, for the fiscal years ending June 30, 1967 and 1968, the sum of $15,000,000, for the fiscal years ending June 30, 1969 and 1970, the sum of $17,500,000, and for the fiscal years ending June 30, 1971, and for each year thereafter the sum of $20,000,000. The sums made available under this section shall be used for making payments to States which have submitted, and had approved by the Secretary of Health, Education, and Welfare, State plans for such services, including specific plans for such services in large cities as provided in section 501(b).

"SEC. 502. (a) Out of the sums appropriated pursuant to section 501 (a) for each fiscal year beginning after June 30, 1962, the Secretary shall allot one-half as follows: He shall allot to each State $70,000, and shall allot to each State such part of the remainder of this one-half as he finds that the number of live births in such State bore to the total number of live births in the United States in the latest calendar year for which the Secretary has available statistics. "(b) Out of the sum appropriated pursuant to section 501 (a) the Secretary shall allot to the States (in addition to the allotments made under subsecion 502(a) for each fiscal year beginning after June 30, 1962, one-half as follows: Such sums shall be allotted from time to time according to the financial need of each State for assistance in carrying out its State plan, as determined by the Secretary after taking into consideration the number of live births in such State; except that not more than 25 per centum of such sums shall be available for grants to State health agencies (administering or supervising the administration of a State plan approved under section 503), and to public or other nonprofit institutions of higher learning (situated in any State), for special projects of regional or national significance which may contribute to the advancement of maternal and child health.

"(c) Out of the sums appropriated pursuant to section 501(b) for each fiscal year beginning after June 30, 1962, the Secretary shall allot one-half as follows: He shall allot to cach State $25,000, and shall allot each State having one or more large sities such part of the remainder of this one-half as he finds that the number of live births in the large cities in such State bore to the total number of live births in such cities in the United States in the latest calendar year for which the Secretary has available statistics.

"(d) Out of the sums appropriated pursuant to section 501(b) maternal and child health services, for each quarter, beginning with the quarter comencing July 1, 1962, amounts, which shall be used exclusively for carrying out the Stat plan, including plans for large cities, equal to one-half of the total sums expended from allotments available under subsections 502(a) and 502(c) during such quarter for carrying out such plan."

(Continue with appropriate minor amendments).
Operations of State plans (unchanged).

"PART 2.-SERVICES FOR CRIPPLED CHILDREN
"APPROPRIATION

"SECTION 511. For the purpose (a) of enabling each State to extend and improve (especially in rural areas and in areas suffering from severe economic distress), as far as practicable under the conditions in such State, services for locating crippled children, and for providing medical, surgical, corrective, and other services and care, and facilities for diagnosis, hospitalization, and aftercare, for children who are crippled or who are suffering from conditions which lead to crippling, and (b) of enabling each State to determine its urban trends and problems in respect to such services and care of crippled and handicapped children, and enabling each State having one or more large cities to make grants to such cities proportional to the number of children in such cities and to their financial and other need for assistance in providing such services and care, there is hereby authorized to be appropriated pursuant to section 511(a) for the fiscal years ending June 30, 1963 and 1964, the sum of $30,000,000, for the fiscal years ending June 30, 1965 and 1966, the sum of $35,000,000 for the fiscal years ending June 30, 1967 and 1968, the sum of $40,000,000, for the fiscal years ending June 30, 1969 and 1970, the sum of $45,000,000, and for the fiscal year ending June 30, 1971, and for each year thereafter the sum of $50,000,000; and there is hereby authorized to be appropriated pursuant to section 511(b) for the fiscal years 1963 and 1964, the sum of $10,000,000 for the fiscal years ending June 30, 1965 and 1966, the sum of $12,500,000, for the fiscal years ending June 30, 1967 and 1968, the sum of $15,000,000, for the fiscal years ending June 30, 1969 and 1970, the sum of $17,500,000, and for the fiscal years ending June 30, 1971, and for each fiscal year thereafter the sum of $20,000,000. The sums made available under this section shall be used for making payments to States which have submitted, and had approved by the Secretary of Health, Education, and Welfare, State plans for such services, including specific plans for such services in large cities as provided in section 511(b).

"SEC. 512. (a) Out of the sums appropriated pursuant to section 511(a) for each fiscal year beginning after June 30, 1962, the Secretary shall allot one-half as follows: He shall allot to each State $70,000, and shall allot the remainder of this one-half to the States according to the need of each State as determined by him after taking into consideration the number of crippled children in such State in need of the services referred to in section 511(a) and the cost of furnishing such services to them.

"(b) Out of the sum appropriated pursuant to section 511(a) the Secretary shall allot to the States (in addition to the allotments made under subsection (a) for each fiscal year beginning after June 30, 1962, one-half as follows: Such sums"

"(c) Out of the sums appropriated pursuant to section 511(b) for each fiscal year beginning after June 30, 1962, the Secretary shall allot one-half as follows: He shall allot to each State $25,000, and shall allot the remainder of this one-half to the States having one or more large cities according to the need of such cities in each State as determined by him after taking into consideration the number of crippled children in such cities in need of the services referred to in section 511(a) and the cost of furnishing such services to them.

"(d) Out of the sums appropriated pursuant to section 511(b) the Secretary shall allot to the States (in addition to the allotments made under subsection 512(c) for each fiscal year beginning after June 30, 1962, one-half as follows: Such sums shall be alloted from time to time according to the financial need of the large cities in each State for assistance in carrying out their part of the State plan, as determined by the Secretary after taking into consideration the number of crippled children in such cities in need of the services referred to in section 511(a) and the cost of furnishing such services to them; except that not more than 25 per centum of such sums shall be available for grants to State

agencies or large cities and to public or other nonprofit institutions of higher learning (situated in any State), for special projects of regional or national significance which may contribute specifically to the advancement of services for crippled children living in such cities."

"APPROVAL OF STATE PLANS

"SEC. 513. (a) A State plan for services for crippled children, including special plans for such services in large cities, must (1) provide for financial participation by the large cities in respect of the purposes of section 511(b);" (The remainder as at present.)

"PAYMENT TO STATES

"SEC. 514. (a) From the sums appropriated therefor and the allotments available under subsection 512(a) and 512(c), the Secretary of the Treasury shall pay to each State which has an approved plan for services for crippled children, for each quarter, beginning with the quarter commencing July 1, 1962, amounts which shall be used exclusively for carrying out the State plan, including plans for large cities, equal to one-half of the total sum expended during such quarter for carrying out such plan."

Mr. HECHT. (3), We want to endorse the position taken by Secretary Ribicoff when he recommended against the provisions of section 107(a) relating to "protective payments." I believe, as he stated,

that

the method incorporated in section 108 of the House bill provides safeguards which would assure fair treatment and protect the rights of the recipient families while also protecting the interest of the dependent children.

Let's not turn the clock back by adopting the language added by the House and again trying these methods which have been used in the past and found unsound.

(4) We also heartily endorse restoring in H.R. 10606 the provisions of the administration bill, H.R. 10032, relating to training of both public assistance and child welfare personnel. These include provisions for (1) an increase in Federal participation in training efforts by the State; (2) authorization for the Secretary of Health, Education, and Welfare to provide, either directly or through contracts or other arrangements, for the training of skilled staff to reduce dependence; and (3) authorization for grants for special projects, including traineeships, in the field of child welfare. The American Parents Committee believes that increased emphasis and encouragement to training of public welfare personnel is imperative if we are to achieve our goal of an improved public welfare program which will more effectively meet the problems and the needs of the 1960's.

(5) The increase in Federal matching added by the House to titles I, X, and XIV further aggravate an already untenable disparity. Without attempting to judge the desirability of this increase in Federal matching, we do not believe that any differences in cost of living or relative need can justify a formula which recognizes a maximum level of matching aid for the needy aged and disabled which is 22 times higher than that authorized for needy children and their parents. We urge you to consider the matching formula in title IV with a view to eliminating or reducing this discriminatory policy toward families with children.

In connection with the aid to dependent children program, we wish to express this word of caution: There are many ADC families in which it is not desirable to get the mothers to work; but rather that the public policy should be that mothers of very young children should stay home with their children and ADC grants should be adequate enough to make this possible.

We urge your committee to take immediate action on H.R. 10606 so that States can begin at the earliest possible date to put this constructive program into effect.

Thank you.

Senator KERR. Thank you very much, Mr. Hecht.

That concludes the list of witnesses for today, and the committee will adjourn until 10 o'clock in the morning.

Thank you.

(Whereupon, at 3:05 p.m., the committee was recessed, to reconvene at 10 a.m., Wednesday, May 16, 1962.)

PUBLIC ASSISTANCE ACT OF 1962

WEDNESDAY, MAY 16, 1962

U.S. SENATE,
COMMITTEE ON FINANCE,

Washington, D.C.

The committee met, pursuant to recess, at 10 a.m., in room 2221, New Senate Office Building, Senator Harry F. Byrd (chairman) presiding. Present: Senators Byrd, Kerr, Long, Talmadge, and Hartke. Also present: Elizabeth B. Springer, chief clerk.

The CHAIRMAN. The committee will come to order.

The first witness is Mr. Macon M. Berryman, commissioner of social welfare, Virgin Islands.

Take a seat.

STATEMENT OF MACON M. BERRYMAN, COMMISSIONER OF SOCIAL WELFARE OF THE VIRGIN ISLANDS OF THE UNITED STATES

Mr. BERRYMAN. Mr. Chairman and members of the committee, my name is Macon M. Berryman. I am the commissioner of social welfare of the Virgin Islands, which agency I am representing here today. During the Danish administration of these islands, which ended in 1917, when they were purchased by the United States, aid to the poor and needy was provided by private citizens and through trust funds, administered by the Government.

Under both Danish and American administration, the Government has sponsored and demonstrated keen interest in providing financial assistance and other services to the poor and needy.

The Social Welfare Act of 1943 established for the first time a sound legal framework for social services in the islands, and provided for their development and direction on an insular-wide basis. Among other benefits, it established an acceptable legal base for extension to the islands of the several titles of the Federal social security program. In 1935 when the Federal Social Security Act was enacted for our Nation, the Virgin Islands were not included in the program. As a result of long years of importuning, the child health and welfare title was extended in 1947, all the public assistance titles in 1950, and the old age and survivors insurance program in 1951. These programs have proved invaluable to our islands.

The 1960 Social Security Amendments provided for the establishment of a new Federal category of medical assistance for the aged. The Virgin Islands program is restricted to a 50-percent matching formula while other low income States may receive 80 percent of their costs. Otherwise, this program operates on the same basis in the

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