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*All committees should demand that all information from the Executive Branch required in the exercise of the oversight function of the Congress should be provided-and subpoenaed if necessary.

In other words, we must apply some pressure to the Executive Branch rather than being the consistent target of pressure from the Chief Executive-put the shoe on the other foot and let it pinch if necessary.

These are my recommendations and I want to again thank the distinguished Chairman and Members of this Committee for this opportunity of presenting my views on this most important subject of separation of powers.

JANUARY 15, 1973.

CHAIBMAN EVINS RELEASES PARTIAL LISTING OF IMPOUNDMENT BY OFFICE OF

MANAGEMENT AND BUDGET OF FUNDS APPROPRIATED BY CONGRESS Representative Joe L. Evins (D-Tenn.), a member of the Committee on Appropriations and Chairman of the Subcommittee on Public Works and Atomic Energy Commission Appropriations, today released a partial listing of funds totaling more than $12 billion appropriated by the Congress for Fiscal Year 1973 and which are being withheld, frozen and impounded by the Office of Management and Budget.

Evins said OMB had refused to release the information and that some Departments and agencies had complied with his request for the amount of funds withheld.

Funds withheld and impounded by OMB include the following:
Department of Agriculture, $1,267,076,900.
Department of Housing and Urban Development, $523,200,000.

Department of Transportation, $2,000,000,000 (for Federal-aid highways, including Interstate).

Department of Defense (Corps of Engineers), $20,462,000 (for construction and planning on public works projects).

Department of Commerce, $243,000,000 including $109,555,000 for water, sewage and industrial expansion grants by the Economic Development Administration,

Environmental Protection Agency, $6,000,000,000.
Department of Health, Education, and Welfare, $56,997,490.
Department of the Treasury, $24,034,197.
Atomic Energy Commission, $15,400,000.
Department of Defense (Military), $1,940,448,924.

Veterans' Administration, $111,786,000 (including $16,786,000 for reduction in apportionment).

Appalachian Regional Commission, $65 million.
(Further details on impoundments are attached to the release.)
Chairman Evins made this comment:

"It is interesting to note that the OMB continued its pattern of cavalier treatment of the Congress by refusing to release public information. I am advised by officials of these Departments and agencies that many of the figures provided will probably have been increased by the time the Fiscal Year 1974 budget is submitted to the Congress.

"The continued freezing, impounding and withholding of funds represents an encroachment on the constitutional powers and prerogatives of the Congress to appropriate funds in the public interest and this challenge must be met with all means available within the structure of the Congress.

"If this trend is not checked, the legislative and appropriations committees of the Congress could well be reduced to exercises in frustration and futility. OMB has usurped Congressional power to the extent that it substitutes its judgment for the legislative intent of the Congress and substitutes is priorities for legislative priorities established by law by Congress.

"The Administration describes its major domestic program objectives as providing more power to the people. In reality the policies of this Administration are centralizing powers in the Bureau of the Budget and other executive offices of the President.

“With one hand the Administration distributes revenue-sharing checks. With the other hand the Administration takes away far more by eliminating or curtailing Federal programs of assistance to our people in laws passed by Congress.

Revenue-sharing and revenue-freezing call to mind the old shell game-now you see it, now you don't. In my view state and local governments are going to see much less overall Federal assistance under this policy of constant cutbacks. "These practices of OMB are threatening our constitutional system of check and balances.

90-538473_37

"As one who has fought erosion of Congressional power and executive encroachment on the Congress for many years, I am delighted to note the strong statements made by the Majority leadership in both Houses of Congress indicating a determination to regain the lost power and prerogatives of the Congress in the public interest."

Information on impoundments provided by officials of departments and agencies
Department of Agriculture:
Office of Secretary-

$500,000 Agricultural Research Service: Agricultural Research Service (annual).

8, 048, 000 Agricultural Research Service (no year).

1, 650, 000 Animal and Plant Health Inspection Service

2, 046, 000 Cooperative State Research Service -

1,500,000 Extension Service -

3,000,000 Statistical Reporting Service

50,000 Economic Research Service -

275, 000 Farmer Cooperative Service.

100,000 Agricultural Stabilization and Conservation Service: Rural environmental assistance program.

210, 500,000 Water bank program.-

10,000,000 Rural Electrification Administration : Loans..

456, 028, 000 Farmers Home Administration: Rural water and waste disposal grants.

120,000,000 Rural housing for domestic farm labor.

3, 147, 000 Salaries and expenses.

500,000 Rural housing insurance fund..

367, 500,000 Soil Conservation Service: Conservation operations.

5,000,000 Resource conservation and development..

6, 000, 000 Watershed planning

500,000 Watershed and flood prevention operations--

17, 412, 500 Great Plains conservation program.

62, 500 Agricultural Marketing Service: Marketing services.

36, 000 Payments to States and possessions..

900, 000

1, 214, 755, 000

Total, USDA, excluding Forest Service----
Forest Service:

Forest protection and utilization (annual).
Construction and land acquisition.--
Forest roads and trails---

21, 720, 000 12, 601, 900 18,000,000

1, 267, 076, 900

Total, Department of Agriculture...
Department of Commerce :

Economic Development Administration.--
Maritime Administration ----
National Oceanic and Atmospheric Administration.---
Miscellaneous

109, 555, 000 55, 000, 000 30, 000, 000 48, 445,000

Total, Department of Commerce-

243, 000, 000 Environmental Protection Agency: Waste treatment grants (2year authorization for fiscal years 1973 and 1974).

6,000,000,000 Department of Health, Education, and Welfare:

Direct Federal construction (apportionment awaits development of approved plans and specifications).

44, 892, 087 Postsecondary innovation -

10,000,000 Higher education insured loans..

1, 905, 400 Social and rehabilitation service

200, 000

Total, Department of Health, Education, and Welfare----

56,997,490 Information on impoundmnts provided by oficials of departments and agencies,

Continued Department of the Treasury :

Federal Law Enforcement Training Center, construction --- 21, 517, 395 Bureau of the Mint, construction.--.

2, 516, 802

Total, Department of the Treasury---

24, 034, 197

Atomic Energy Commission:
Operating expenses :

Thorium utilization
Gas-cooled fast breeder reactor---
Space propulsion.
Plowshare

Assistance payments to Richland, Wash---
Plant and capital equipment: Cascade improvement program.

2,000,000 1,000,000 4, 000, 000 3, 200, 000

200, 000 5,000,000

Total, Atomic Energy Commission.--

15, 400, 000

25, 000, 000

1,000,000

Department of Housing and Urban Development:

Rental and cooperative housing for lower income families

(sec. 236)-Nonprofit sponsor loan fund (sec. 106a), technical assistance

grants Nonprofit housing sponsor loans (sec. 106b), planning projects

for low- and moderate-income families.. New community assistance, supplementary grants for public

facilities Rehabilitation loan fund.. Water and sewer facilities grants.

3, 600,000

7, 500,000 86, 000, 000 400, 100, 000

523, 200, 000

Total, Department of Housing and Urban Development---Additional funds expected to be impounded before submission of fiscal year 1974 budget for HUD:

Open space land programs.

Public facility loans.--
Department of Transportation: Federal Highway Administration,

Federal-aid highways

50, 000, 000 20, 000, 000

2, 000, 000, 000

Department of Defense Civil :

Planning starts
Construction starts..

5, 040, 000 15, 422, 000

20, 462, 000

Total, Corps of Engineers---
General Service Administration : GSA indicated "nothing of sig-

nificance" is impounded. List has not been made available at

this time to Congressman Evins. Veterans' Administration : Funds impounded by OMB:

Hospital construction, major construction.

Hospital construction, minor construction..
Reduction in quarterly apportionment by OMB :

Medical care.
Medical and prosthetic research (artificial limbs, et

cetera)
Medical administration.-

60, 000, 000 5, 000, 000

44, 000, 000

2, 430, 000

356, 000

Total, Veterans' Administration.--.

111, 786, 000

Information on impoundmnts provided by officials of departments and agencies,

Continued
Department of the Interior:
Bureau of Reclamation :
Loan program.-

1, 320, 000 Construction and rehabilitation.

3, 115, 000 Upper Colorado River storage project

1, 170,000 Total, Bureau of Reclamation..

5, 606, 000

Other Interior programs: Department indicates only 2 small

items in reserve. Efforts to secure listing have not revealed
these items.

Appalachian Regional Commission:

Development highway program.
Airport program.

25,000,000 40,000,000

65,000,000

Total, Appalachian Regional Commission..
Department of State:

Foreign Buildings Office (not appropriated funds).
Excess currency-New embassy in Yugoslavia..
Radio Free Europe and Radio Liberty-
East-West Center in Hawaii.---

2, 125,000 2, 950,000

275,000 200,000

5, 550,000

Total, Department of State ---
Department of Justice: No funds impounded at this time.
Department of Labor: No fuæds impounded at this time.

Small Business Administration :

Direct and immediate participation loan funds--
Administrative expenses.--

55,000,000 2, 700,000

Total, Small Business Administration...

57, 700,000

STATEMENT OF THE IDAHO BOARD OF HIGHWAY DIRECTORS, JANUARY 1973 The Idaho Board of Highway Directors and the Idaho Department of Highways appreciate this opportunity to comment. The purpose of this statement is to remark solely on the interrupted flow of Highway Trust Funds to the FederalAid Highway Program.

Since 1967, a widening gap has occurred between Trust Fund obligational authority and amounts appropriated by Congress for highway programs. In addition, for the period including fiscal years 1967 through 1973, total receipts to the Highway Trust Fund will have exceeded total obligational authority by almost $4.5 billion.

Such action has been defended as justifiable by the National Administration as being in accord with budgetary requirements and economic stabilization programs in effect since 1966. Ceiling limitations for the program are set by the Office of Management and Budget.

It is our contention that meeting the original goals of the legislation establishing the Highway Trust Fund is also an important “budgetary requirement" that has precedence over contemporary fiscal constraints.

Furthermore, Section 101 (c), Title 23, U.S. Code, provides for withholding of funds only if necessary to assure there are sufficient amounts to pay expenditures.

Impoundment action is totally unrealistic when related to the Trust Fund Revenue Structure and is all the more unreasonable since withholding continues even with full knowledge of the magnitude of the Nation's highway needs as reported by the Department of Transportation to Congress in January 1972.

Continuation of this action may be interpreted as insensitive to the requirements of the public for improved highway transportation as voiced by Congressional intent in highway legislation establishing the various Federal-aid highway programs and particularly the founding of the Highway Trust Fund itself.

The Board of Highway Directors and the Department of Highways also take issue with Federal dictation and rearrangement of priorities through unbalanced reductions in obligational authority for the various highway systems and programs.

Idaho has consistently been an enthusiastic and hard-working partner in the Federal-Aid Highway Program; and the State has always sought every available means to achieve a predictable and orderly program of project scheduling. However, the withholding of funds by the Administration without due cause, certainly does not measure up to the ethics inherent in the Federal-Aid Highway Program nor does it encourage an optimistic outlook for orderly project scheduling.

Therefore, Idaho supports the language and specifics of the proposed Bill. The requirement for a special message by the President regarding impounded funds to be printed in the Federal Register will hopefully promote more openness in the Administration's handling of such matters. However, most encouraging is the Bill's proposal that such impounding shall cease within 60 days unless the action shall have been ratified by the Congress.

Impoundment of designated funds from a Trust Fund which pays its own way is not in the best interests of trustworthy government and incurs an unfairly protracted time to provide needed highway improvements under programs established by the Congress for specific highway purposes. Respectfully submitted,

IDAHO BOARD OF HIGHWAY DIRECTORS,
By: E. L. MATHES, P.E.,

State Ilighway Engineer.

STATEMENT OF NATHANIEL KEITH, PRESIDENT OF THE NATIONAL HOUSING

CONFERENCE, FEBRUARY 9, 1973 As president of the National Housing Conference, I appreciate the opportunity to appear before this Committee. We support Senate Bill 373, the Impoundment Control Bill. The enactment of this Bill will better enable Congress to exercise its proper constitutional power and responsibility concerning legislation and appropriations.

The actions taken by the President do not involve merely a cut in the level of many programs, but a complete suspension or termination of them after designated dates—January 5, 1973 for some and June 30, 1973 for others. The net effect is equivalent to the repeal of many laws which were enacted by the Congress and signed by the President, some of which have been in effect as long as 35 years. As explained below, we believe that the President does not have the power unilaterally to repeal these laws, nor can he accomplish, by indirection, the same purpose through a unilateral suspension or termination of all future commitments under these laws.

Our testimony is concerned mainly with the housing and community development programs administered by the Department of Housing and Urban Development (HUD). We will cite all of these programs where funds and contract authority have been impounded and where the operation of Federal laws have been suspended or terminated; also the great danage that will be caused as a result of this precipitous action of the President.

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