Full text of Budget of the United States Government : Fiscal Year Ending June 30, 1965

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THE BUDGET
OF THE

UNITED STATES GOVERNMENT
FOR THE FISCAL YEAR ENDING JUNE 30

1965

U.S. GOVERNMENT PRINTING OFFICE
WASHINGTON : 1964

For Sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C., 20402 - Price $1.50 (Paper Cover)

A NOTE ON THE FORMAT OF THE BUDGET
The Budget of the United States Government is presented in a compact
volume containing the Budget Message of the President and other
significant data to place before the Congress the President's budgetary
recommendations. This volume contains the facts and figures that
most users of the budget would normally need or desire.
Additional information used by the Appropriations Committees of
the Congress, and reference materials useful to those concerned with
details, will be found in a further volume, entitled The Budget of the
United States Government—Appendix. The Appendix contains the
text of appropriation language, schedules, and narrative statements on
program and performance for the individual appropriations and
funds. It also contains those supplementary schedules required by
law with respect to details of personnel compensation.
The budget for the District of Columbia is printed separately as
usual.

Budget documents for the fiscal year 1965, available from the
Superintendent of Documents, U.S. Government Printing Office,
Washington, D.C., 20402. (Paper covers* only.)
1. The Budget of the United States Government, 1965 ($1.50).
2. The Budget of the United States Government, 1965—
Appendix ($6.25).
3. The Budget of the United States Government, 1965—
The District of Columbia (40 cents).
4. The Budget in Brief, 1965 (35 cents).

TABLE OF CONTENTS
Page

PART 1. THE BUDGET MESSAGE OF THE PRESIDENT

PART 2. SUMMARY TABLES
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table

1. Budget resume"
2. Receipts from and payments to the public
3. New obligational authority by type and function
4. New obligational authority by agency
5. Expenditures by agency
6. Investment, operating, and other expenditures
7. Federal receipts and expenditures in the national income accounts
8. Relation of authorizations to expenditures
9. Obligations incurred, net
10. Balances of obligational authority
11. The public debt
12. Civilian employment in the executive branch

41
42
43
44
45
46
47
48
50
51
52
53

Part 3. RECEIPTS
Analysis of receipts by source
Table 13. Sources of receipts

55
56
62

PART 4. THE FEDERAL PROGRAM BY FUNCTION

Analysis of Federal activities by function
National defense
International affairs and finance
Space research and technology
Agriculture and agricultural resources
Natural resources
Commerce and transportation
Housing and community development
Health, labor, and welfare
Education
Veterans benefits and services
Interest
General government
Table 14. New obligational authority and expenditures by function and agency

70
71
81
87
90
96
100107
111
119
123
127
128
132

PART 5. THE FEDERAL PROGRAM BY AGENCY
Explanation of means of financing agency activities
Analysis of new obligational authority and expenditures by agency
Legislative branch
The Judiciary
Executive Office of the President
Funds appropriated to the President
Department of Agriculture
Department of Commerce

145

146
150
150
162
165
168
173
189

THE BUDGET FOR FISCAL YEAR

1965

PART 5. THE FEDERAL PROGRAM BY AGENCY—Continued
Analysis of new obligational authority and expenditures by agency—Continued
Department of Defense—Military
Department of Defense—Civil
Department of Health, Education, and Welfare
Department of the Interior
Department of Justice
Department of Labor
Post Office Department
Department of State
Treasury Department
Atomic Energy Commission
Federal Aviation Agency
General Services Administration
Housing and Home Finance. Agency
National Aeronautics and Space Administration
Veterans Administration
Other independent agencies
District of Columbia
Special allowances
Trust funds
Memorandum—Annexed budgets

Page
201
213
217
236
253
256
261
263
268
274
275
276
282
287
288
290
307
308
309
324

PART 6. SPECIAL ANALYSES
A. Three measures of Federal financial transactions
B. Public enterprises, trust funds, and gross expenditures of the Government
C. Civilian employment in the executive branch
D . Investment, operating and other expenditures
E. Federal credit programs
F. Federal activities in public works
G. Federal health programs
H. Federal research, development, and related programs
I. Federal aid to State and local governments
J. Principal Federal statistical programs
K. Foreign currency availabilities and uses
L. International transactions of the Federal Government

327
328
337
347
352
371
383
397
407
427
436
440
446

PART 7. HISTORICAL TABLES
Table 15. Administrative budget totals and public debt, 1789-1965
Table 16. Consolidated cash totals and Federal sector of the national income accounts,
1940-65
Table 17. Administrative budget and trust fund receipts, 1954-65
Table 18. Administrative budget and trust expenditures by function, 1954-65
Table 19. Receipts from and payments to the public, 1954-65
Table 20. Federal receipts and expenditures in the national income accounts, 1954-65

453
454
455
456
457
462
463

INDEX

465

GENERAL NOTES
The estimates in the budget cover requirements under existing legislation and under legislation which is proposed for enactment by the Congress.
Unless otherwise indicated, all references to years in this volume are to
fiscal years ending June 30.
Details in tables, charts, and text may not add to the totals because of
rounding.

PART 1

THE BUDGET MESSAGE
OF THE
PRESIDENT

THE BUDGET FOR FISCAL YEAR 1965

of Federal Payments

BUDGET MESSAGE OF THE PRESIDENT
To the Congress of the United States:
This is the budget of the United States Government for 1965.
The preparation of this budget was the first major task to confront
me as President, and it has been a heavy one. Many decisions of great
importance have had to be made in a brief span of weeks. I have done
my best, and I am satisfied that the budget which I am sending to
the Congress will advance our Nation toward greater national security, a stronger economy, and realization of the American dream
of individual security and equal opportunity for all of our people.
In formulating my budget, I have been guided by two principles:
• I have been guided by the principle that spending by the Federal
Government, in and of itself, is neither bad nor good. It can be
bad when it involves overstaffing of Government agencies, or needless duplication of functions, or poor management, or public services which cost more than they are worth, or the intrusion of government into areas where it does not belong. It can be good when it
is put to work efficiently in the interests of our national strength,
economic progress, and human compassion.
• I have been guided by the principle that an austere budget need
not be and should not be a standstill budget. When budgetary
restraint leads the Government to turn its back on new needs and
new problems, economy becomes but another word for stagnation.
But when vigorous pruning of old programs and procedures releases
the funds to meet new challenges and opportunities, economy becomes the companion of progress.
This is, I believe, a budget of economy and progress. On the one
hand, it calls for a reduction from the preceding year in total administrative budget expenditures—and it is only the second budget in 9
years to do so. It calls for a substantial reduction in total civilian
employment in the executive branch—and it is the first budget to do so
since the practice of totaling the employment estimates in the budget
was initiated in January 1956. It cuts the deficit in half, and carries
us a giant step toward the achievement of a balanced budget in a fullemployment, full-prosperity economy.
7

THE BUDGET FOR FISCAL YEAR 1965

On the other hand, this budget safeguards the peace by providing
for the further strengthening of the most formidable defense establishment the world has ever known; it recommends continued military
assistance to those nations menaced by Communist aggression, direct
and indirect; it includes economic assistance to those nations which
are willing to take the steps necessary to guard their freedom and
independence through economic self-help; it provides the funds necessary to advance our mastery of space toward the achievement of a
manned lunar landing in this decade; it provides for the sound
management and development of our natural and agricultural
resources; and in its recommendations relating to education, housing, manpower training, health, and employment opportunities for
youth, it provides more funds than ever before in our history for the
fuller development of our Nation's most important resource—its
people.
Moreover, this budget makes provision for the initiation of a new
and major effort to break the vicious circle of chronic poverty, which
denies to millions of our fellow citizens a just participation in the
benefits of life in our country. We owe to every young person in
America a fair start in life—and this means that we must attack those
deficiencies in education, training, health, and job opportunities by
which the fetters of poverty are passed on from parents to children.
The attack on poverty must rely on local initiative and leadership;
and the resources of the local, State, and Federal Governments must be
mobilized to support these efforts. I will shortly send to the Congress
a special message conveying my recommendations for the attack on
poverty.
The urgent and necessary program increases recommended in this
budget will be financed out of the savings made possible by strict economy measures and by an exhaustive screening of existing programs.
As a result of the highly successful cost reduction program launched
in 1962 by the Secretary of Defense, the 1965 program of the Department of Defense will require over $2 billion less in appropriations
than would otherwise be the case—a sum greater than the 1965
cost of the new programs I am recommending to the Congress.
Department of Defense expenditures will decline by more than $1
billion from 1964 to 1965, and additional savings are expected to be
realized in agriculture, atomic energy, postal services, veterans benefits, and in various lending programs through substitution of private
for public credit.

THE BUDGET MESSAGE OF THE PRESIDENT

My proposals call for administrative budget expenditures in 1965
of $97.9 billion—$900 million less than was requested in the 1964 budget
and $500 million less than I now estimate will be spent in 1964. This reduction in expenditures will be achieved despite a steady growth in
the workload of nearly every civilian agency of Government—ranging
all the way from the number of income tax returns to the number of
visitors to our national parks. The reduction in expenditures will be
achieved despite built-in and relatively uncontrollable expenditure
increases resulting from past commitments and legislative provisions,
including higher costs for interest on the debt and for military and
civilian pay increases required by law.
Administrative budget receipts are expected to increase in 1965 to
$93.0 billion, $4.6 billion over 1964. This increase, reflecting the
expectation of a strongly growing economy spurred by prompt enactment of the tax program, takes into account the estimated revenue
losses from the new tax rates.
The resulting administrative budget deficit of $4.9 billion for 1965
is $5.1 billion below the deficit now estimated for the current year
and marks an important first step toward a balanced budget.

THE BUDGET FOR FISCAL YEAR 1965
SUMMARY OF FEDERAL RECEIPTS AND PAYMENTS
[Fiscal years. In billions]
1963

Description

1964

1965

FEDERAL RECEIPTS
Administrative budget receipts
Trust fund receipts.
_«
Deduct: Intragovernmental transactions
Total cash receipts from the public
Add: Adjustment from cash to accrual basis
___ __
Deduct: Receipts from loans, property sales, and other adjustments _ _ - _ _ _ >
_
. _
National income account receipts—Federal sector

$86.4
27.7
4.3

$88.4
30.2
4.2

$93.0
30.9
4.1

109.7

114.4

119.7

0.6

-0.1

-0.2

1.0

0.7

109.3

113.6

118.8

92.6

98.4

97.9

26.5
5.4

29.3
5.0

29.4
4.6

113.8

122.7

0.6

0.1

1.1

1.8

3.7

2.3

112.6

119.1

121.5

-6.3
-4.0
-3.3

-10.0
-8.3
-5.5

-4.9
-2.9
-2.8

FEDERAL PAYMENTS
Administrative budget expenditures
___
Trust fund expenditures (including Government-sponsored enterprises) __ ____
_
Deduct: Intragovernmental transactions and other adjustments.
Total cash payments to the public

Add: Adjustment from cash to accrual basis
Deduct: Disbursements for loans, land purchases, and other adjustments
National income account expenditures—Federal sector. __
EXCESS OF RECEIPTS (+) OR PAYMENTS ( - )
Administrative budget
Receipts from and payments to the public
National income accounts—Federal sector

The traditional administrative budget does not include a number
of important Federal activities financed through trust funds, such
as social security and Federal aid to highways. These activities and
the special taxes which finance them have substantial economic effects
and serve significant public purposes. A comprehensive disclosure
of Federal finances is provided by the consolidated cash statement of
Federal receipts from and payments to the public.
On the cash basis, total payments to the public are estimated at
$122.7 billion for 1965. Total receipts from the public are estimated
at $119.7 billion, resulting in a $2.9 billion excess of payments over
receipts. The estimates of cash payments and receipts in 1965 reflect

THE BUDGET MESSAGE OF THE PRESIDENT

the normal, built-in growth of trust fund benefit payments, and the
employment and excise tkx revenues which finance them.
Another measure of Federal finances—one which emphasizes the
impact of the Government's fiscal activities on the economy—is based
on the national income accounts. Under this concept, Federal fiscal
data, including the trust funds, are generally estimated on an accrual
rather than a cash basis, and eliminate transactions, such as loans,
which do not directly result in production and income. These data
indicate an excess of payments over receipts of $2.8 billion in fiscal
year 1965.

THE ECONOMY AND TAX REDUCTION
The Federal budget is a detailed plan for managing the business
of Government, but it is more than that: In setting the relationship
between Government expenditures and taxation, the budget is also a
powerful economic force which can help or hamper our efforts to
achieve stable prosperity and steady growth.
The expenditure proposals in this budget are ample to satisfy our
most pressing needs for governmental services, but the broad economic
stimulus needed to carry our economy to new high ground in production, income, and employment will not come principally from Government outlays. I believe—as did President Kennedy—that the primary impetus needed to move our economy ahead should come, in
present circumstances, from an expansion of the private sector rather
than the public sector. Therefore, the earliest possible enactment of
the tax reduction bill now before the Congress is an integral and vital
part of my budgetary proposals.
Our country is currently in its fourth postwar period of economic
expansion—a period which started in February 1961, and has now
lasted nearly 3 years.
Preliminary estimates indicate that the Nation's total output of
goods and services—our gross national product—rose to $585 billion
in calendar year 1963, an increase of 5.4% over 1962.
Over the same period, personal income rose 4.7%, industrial production 5.1%, and corporate profits 10.5%.
Price stability has been maintained for the sixth consecutive year.
This is a record of strong expansion—and yet the expansion has
not been strong enough to absorb the margin of idle workers and idle
plant capacity which continues to tarnish our economy's performance.
Almost 3 years after the trough of the last recession, and despite the
creation of 2% million new jobs in our economy, the unemployment
rate now stands at 5y2%. Our factories continue to produce below
their optimum rate. As a nation we are producing at a rate at least
$30 billion below our comfortable capacity. This is a ga/p for which
we are paying a high price in idle resources, both human and physical.

THE BUDGET FOR FISCAL YEAR 1965

This gap must be closed. It must be closed—as President Kennedy
urged a year ago—by loosening u the checkrein of taxes on private
spending and productive incentives." It must be closed promptly,
for the unemployed have already waited too long for jobs which can
be create^ simply by allowing our people to spend and invest a greater
part of the money they earn.
The bill approved by the House of Representatives last September
meets the fundamental requirements for tax action in 1964. I propose
only two changes in that bill:
• The bill provides for a reduction in the rate of withholding on
wages and salaries from 18% to 15% for calendar 1964, starting
on January 1, 1964. Since that date has already been passed, the
institution of the 15% withholding rate at a later date in 1964
would require substantial additional refunds to taxpayers next
year. A corresponding part of the economic stimulus provided
by the tax program would be delayed until then. Hence, I propose that the withholding rate be reduced to 14% rather than 15%,
effective as soon as possible after enactment. This will assure that
the beneficial effects of the 1964 tax reductions are felt immediately,
instead of being postponed, in part, for a year. It will simplify
procedures for taxpayers and their employers by making unnecessary another change in the withholding rate in 1965, as provided in
the House bill. Moreover, the change will also maintain approximately the same division between the fiscal year 1964 and 1965
revenue impact of tax reduction as would have resulted from the
House bill. The revenue estimates in this budget assume approval
of this change.
• The House bill fails to close the loophole by which property transferred at death now escapes capital gains taxation, but it nevertheless would reduce the rate of taxation on capital gains. Without the former provision, the latter provision is unwarranted, and
it should be deleted from the bill.
With these two changes, I urge the enactment of the House bill
by the Senate.
With prompt enactment of the tax program, economic expansion in
1964 should proceed briskly. Reflecting the effects of the first stage of
the tax reduction, the gross national product in calendar year 1964
should rise to about $623 billion, plus or minus $5 billion. This is
substantially higher than the GNP which could be expected in the
absence of prompt enactment of the tax legislation. In fact, since
expectations of a tax reduction have been incorporated into the forward planning of many business firms, the effect on the economy of
failure to pass the legislation swiftly might be deeply disturbing.

THE BUDGET MESSAGE OF THE PRESIDENT

As the tax reduction takes full effect, its stimulus to private consumption and investment will shrink the $30 billion gap between
the Nation's actual and potential output, and provide approximately
2 million additional jobs for the unemployed and the new workers
entering the labor force. As economic activity expands, and personal
and business incomes increase, Federal revenues will also rise. The
higher revenues, combined with continuing pressure for economy and
efficiency in Federal expenditure programs, should hasten the achievement of a balanced budget in an economy of full prosperity.
RECEIPTS FROM THE PUBLIC
[Fiscal years.

In billions]

Source

Administrative budget receipts:
Individual income taxes.
__
Corporation income taxes
Excise taxes

Other
Total administrative budget receipts
Trust fund receipts:
Employment taxes
Deposits by States, unemployment insurance
Excise taxes __ _
Federal employee and agency payments for retirement
Interest on trust investments
Veterans life insurance premiums
Other___
Total trust fund receipts
Intragovernmental transactions (deduct)
Total receipts from the public

1963

1964

1965

$47.6
21.6
9.9

$47.5
23.7
10.2

$48.5
25.8
11.0

7.3

7.0

7.7

86.4

88.4

93.0

14.9
3.0
3.3
1.9
1.5
0.5
2.7

16.8
2.9
3.5
2.0
1.6
0.5
3.0

17.0
2.8
3.5
1.9
1.7
0.5
3.5

27.7

30.2

30.9

4.3

4.2

4.1

109.7

114.4

119.7

Income tax revisions.—The bill currently before the Senate will
reduce income tax liabilities by $11.1 billion. Individual rate reductions and structural changes account for about 80% of the total tax
reduction. The remaining 20% reflects a reduction in corporate taxes,
providing enhanced incentives for new investment.
Once the tax bill becomes fully effective in calendar year 1965,
the entire schedule of individual income tax rates will fall from the
present range of 20% to 91% to a range of 14% to 70%, and the current first $2,000 bracket of taxable income will be divided into four
successive brackets of $500 each.

THE BUDGET FOR FISCAL YEAR 1965

Federal Receipts

1942

1945
Etfimat*

All corporations will pay lower tax rates, with incorporated small
businesses receiving the largest proportionate tax rate reduction because the tax rate on the first $25,000 of their taxable income is reduced
from 30% to 22%. Large corporations (with estimated tax liabilities
above $100,000) will have to speed up their tax payments in order to
reduce the lag between the time when taxable profits are earned and
the time when taxes are paid; however, this speedup plan is gradual,
shifting the timing of corporation tax collections a bit each year for
the next 7 years.
The combination of the investment tax credit and the revision of
depreciation guidelines achieved in 1962, plus the $2% billion tax rate
reductions and structural changes proposed for corporations in the
pending bill, will result in a total reduction of about $5 billion in
corporate tax liabilities.
The bill also contains many changes in the income tax laws that
are designed to reduce the weight of taxes where the burden is most
unfair, and to correct special tax advantages which will no longer be
equitable under the proposed structure.
Excise tax extension.—The Congress should extend several current excise tax rates which will otherwise decline or expire on July 1,
1964. These excise taxes have been continued at the present rates
through annual extensions for the past several years. Without extension, revenues would fall by $1.7 billion during fiscal year 1965.

THE BUDGET MESSAGE OF THE PRESIDENT

User charges.—-Many Federal Government programs furnish specific, identifiable benefits to the individuals and businesses using
them. Equity to all taxpayers demands that those who enjoy the
benefits should bear a greater share of the costs. I am, therefore,
renewing recommendations for the enactment of user charges for commercial and general aviation and for transportation on inland
waterways.
Appropriate fees should also be assessed in other areas where the
Government provides special services. New legislation is necessary
in several cases to carry out this policy—such as a revision of patent
fees to reflect today's costs more adequately—and appropriate proposals are either before the Congress or will be forwarded this year.
NEW OBLIGATIONAL AUTHORITY
Obligations incurred by Federal agencies under authority provided by the Congress are the forerunners of Federal expenditures.
Expenditure control, therefore, depends substantially upon careful
control of obligations.
I n this budget, new obligational authority of $103.8 billion is proposed in the administrative budget for fiscal year 1965. This is $1.2
billion above the amount now estimated for fiscal year 1964, but is $4.1
billion less than was originally requested for the current year in the
1964 budget. The amount recommended for 1965 includes $50.9 billion for the Department of Defense (including military assistance),
$120 million less than the amount for the current year.
NEW OBLIGATIONAL AUTHORITY
[Fiscal years.

In billions]

Description

Total authorizations requiring current action by Congress:
Administrative budget funds
Trust funds
Total authorizations not requiring current action by Congress:
Administrative budget funds
Trust funds
Total new obligational authority:
Administrative budget funds
Trust funds

1963
actual

1964
estimate

1965

$90.6
3.9

$90.0
0.4

$91.4
4.2

11.6
24.7

12.6
31.3

12.4
27.6

102.3
28.6

102.6
31.7

103.8
31.8

Significant changes in new obligational authority from 1964 to
1965 include increases of $1.5 billion for the Department of Health,
Education, and Welfare, mainly as a result of new health and education proposals; $361 million for the Department of Labor because of

THE BUDGET FOR FISCAL YEAR 1965

the recently amended manpower training program and the proposed
youth employment legislation; and $500 million for special appropriations requested for new community programs to attack poverty. Major decreases include $1.5 billion for the Housing and Home Finance
Agency, reflecting nonrecurring authority requested in 1964, and $1.3
billion for the Department of Agriculture.
Of the total amount proposed, $40 billion will become available
under permanent authorizations without further congressional action,
including $27.6 billion becoming automatically available as revenues
flow into the trust funds. In the administrative budget, the principal
permanent appropriation is to pay the interest on the public debt
which in 1965 is estimated at $11 billion, $0.4 billion more than in
1964.
For the current fiscal year, the Congress is requested to enact $4.2
billion of additional new obligational authority to provide needed
funds for housing and space programs and to finance legislation enacted last year for which no appropriations were provided—such as
increased military compensation, broadened manpower development
activities, aid to higher education, vocational education activities, and
mental retardation programs. Including supplemental authorizations, a total of $102.6 billion in new obligational authority is estimated for fiscal year 1964 in the administrative budget.

GOVERNMENT PROGRAMS AND EXPENDITURES
The expenditures proposed in this budget are necessary to meet
the needs of our growing society, promote the basic strength of the
Nation, honor our worldwide commitments, and fulfill our financial
obligations.
Between 1955 and 1965, our population will grow by almost 30
million people, about 17%, with the largest increases in the very young
and the very old age groups. To keep pace, the Federal Government
has had to continue existing public services and provide the additional
services needed for future growth. The expansion of the economy,
even though falling short of its potential in recent years, has helped
provide the resources for both increased public and private services.
We will continue to experience rapid population growth while we
seek to improve the rate of economic growth, and over the long run
this will put upward pressure on Government expenditures for civilian
purposes. Nevertheless, wherever and whenever possible, we should
try to reduce costs, curtail less urgent activities, and find other savings
to permit essential new or growing services to be financed at the least
cost to the taxpayer. That has been the policy in this budget. Essential services have been provided while administrative budget expenditures decline by over one-half billion dollars between the fiscal years
1964 and 1965.

1.7

THE BUDGET MESSAGE OF THE PRESIDENT
THE 1964 AND 1965 BUDGETS COMPARED
(In billions)

New obligational
authority

National defense
Space
Interest

Subtotal

Health, labor, welfare, and education (including
attack on poverty)
Allother
Total

Expenditures

1965
1964
budget
budget
document document

1964
budget
document

1965
budget
document

$+2.2
+2.0
+0.3

$-0.2
+0.1
+0.4

$+2.4
+1.8
+0.3

$-1.3
+0.6
+0.4

+4.6

+0.3

+4.6

-0.3

+2.1

+2.6'
-1.7

+0.9
-0.9

+0.9
-1.1

+4.7

+1.2

+4.5

-0.5

-2.0

The attack on poverty.—In this budget I have provided over $1 billion of new obligational authority to begin an all-out attack on the
problem of poverty in the United States. In a nation as rich and productive as ours we cannot tolerate a situation in which millions of
Americans do not have the education, health, and job opportunities for
a decent and respected place as productive citizens. The vicious circle
of poverty—in which one generation's poverty, ignorance, and disease
breed the same problems for the next—must be broken. I propose to
break that circle by raising the educational, skill, and health levels
of the younger generation, increasing their job opportunities and helping their families to provide a better home life. I propose a program
which relies upon the traditional and time-tested American methods of
organized local community action to help individuals, families, and
communities to help themselves.
Poverty stems from no one source, but reflects a multitude of
causes. Correspondingly, a number of individual programs have been
developed over the years to attack these individual problems of job
opportunities, education, and training. Other specific programs deal
with the closely related areas of health, housing, welfare, and agricultural services. I propose to establish a means of bringing together
these separate programs—Federal, State, and local—in an effort to
achieve a unified and intensified approach to this complex problem, in
which each separate element reinforces the others.
Under this proposal, locally initiated, comprehensive community
action programs would be developed, to focus the various available
resources on the roots of poverty in urban and rural areas. I shall
shortly transmit to the Congress legislation initiating this attack and
700-000 0—64

THE BUDGET FOR FISCAL YEAR 1965
PAYMENTS TO THE PUBLIC
[Fiscal years.

In billions]

Function

1963
actual

1964
estimate

1965
estimate

Administrative budget expenditures:

$55.3
2.4
4.4
6.1
2.5
3.2
-0.2
5.5
1.3
5.4
10.7
2.2

$54.0
2.2
5.0
4.9
2.6
3.1
-0.3
5.8
1.7
5.1
11.1
2.2

0.5

0.2
0.7

0.2
0.5
0.3
0.6

92.6

98.4

97.9

Health, labor, and welfare
Commerce and transportation
National defense
Housing and community development _
Veterans benefits and services
All other
Interfund transactions (deduct)

21.9
2.9
0.7
0.8
0.8
0.5

22.7
3.4
0.9
1.6
0.6
0.6
0.5

23.5
3.5
1.2
0
0
0
0

Total trust fund expenditures

26.5

29.3

29.4

5.4

5.0

4.6

113.8

122.7

National defense
International affairs and finance
Space research and technology
Agriculture and agricultural resources.
Natural resources
_
Commerce and transportation
Housing and community development _
Health, labor, and welfare
Education
Veterans benefits and services
Interest
General government
Allowances:
Attack on poverty
Civilian pay comparability
Contingencies
Interfund transactions (deduct)
Total administrative budget expenditures.

$52.8
2.6
2.6
7.0
2.4
2.8
-0.1
4.8
1.2
5.2
10.0
2.0

Trust fund expenditures:

Intragovernmental transactions and other adjustments (deduct)
Total payments to the public
* Less than one-half million dollars.

authorizing, in 1965, $500 million of new obligational authority
specifically for this purpose. Additional funds for the local community action programs will be available from existing agency programs.
Moreover, other legislative proposals, recommended elsewhere in this
message, will contribute important new resources to the attack on
poverty. The Youth Employment Act, the National Service Corps,
and the community work and training program, are examples of such
proposals. Of particular significance will be the education proposal

THE BUDGET MESSAGE OF THE PRESIDENT

for project grants to meet special educational needs. All told, in 1965
more than $1 billion of Federal resources under existing and proposed
legislation would be concentrated, through local community action programs, in an intensive and coordinated attack on poverty.
Special emphasis is also being given to the economic needs of the
165,000-square-mile Appalachian region of the United States, which
has been largely bypassed in the growth of prosperity in recent years.
This emphasis by the Government, combined with the resources and
activities of State, local, and private institutions and enterprises in
the region, will be directed toward the development of the natural resources of the region, and the promotion of better employment opportunities for its people.
National defense.—To preserve freedom and protect our vital
national interests in these recent years of uneasy peace, this Nation
has invested heavily in the improvement of its defenses. We have
chosen not to concede our opponents supremacy in any type of potential conflict, be it nuclear war, conventional warfare, or guerrilla conflict. We have now increased the strength of our forces so that, faced
with any threat of aggression, we can make a response which is appropriate to the situation. With present forces and those now
planned, we will continue to maintain this vital military capability.
During the past 3 years, we have achieved notable increases in military readiness, including:
• A 100% increase in the number of nuclear weapons available in
the strategic alert forces.
• A 60% increase in the tactical nuclear forces deployed in Western
Europe.
• A 45% increase in the number of combat-ready Army divisions.
• A 35% increase in the number of tactical fighter squadrons.
• A 75% increase in airlift capability to improve mobility.
These rapid gains result from an increase in cash payments for military purposes from $47.7 billion in 1961 to $56.0 billion in 1964.
Along wTith the high level of preparedness we have now achieved,
vigorous efforts to promote economies in the management of our
Armed Forces have been producing significant savings. We are
therefore able to propose a decrease of $800 million in cash outlays
($1.3 billion in the administrative budget) for national defense in
fiscal year 1965 while maintaining our position of strength.
Nevertheless, national defense expenditures will remain high.
These payments, estimated at $55.2 billion ($54.0 billion in the administrative budget) in 1965, will provide for all essential military purposes, including substantial improvements in our present and planned
military capabilities. For example, the 1965 budget provides for

THE BUDGET FOR FISCAL YEAR 1965

additional Minuteman missiles, further improvements in our air, land,
and sea tactical forces, procurement of additional airlift aircraft, and
continued research and development to ensure our ability to counter
new threats.
To reinforce the total defense effort, the Congress should authorize
funds for fallout shelters in public buildings, schools, hospitals, and
other nonprofit institutions.
Although we continue to seek a relaxation of tensions, we cannot
relax our guard. While the nuclear test ban treaty is a hopeful sign,
neither that treaty nor other developments to date have, by themselves,
reduced our defense requirements. We will continue underground
nuclear testing, maintain our above ground test facilities in ready
condition, maintain strong weapons laboratories, and continue the
development of detection devices. However, because of the nuclear
strength we have achieved, it will be possible to cut production of
enriched uranium by 25% and to shut down four plutonium piles.
Our inventories of strategic and critical materials are being reviewed to assure that they are necessary for current civil and military
defense requirements. I recommend that the Congress enact legislation to improve the management of these materials and simplify the
disposal of those no longer needed.
International affairs and finance.—The less-developed nations
are engaged in a critical struggle for political independence and economic betterment. This struggle takes many forms, from combating
armed aggression and subversion in Vietnam to advancing national efforts to reduce poverty and illiteracy in South Asia, Latin
America, and other areas. Upon the outcome of this struggle will
depend the stability and security of much of the world. Through our
programs of foreign assistance, we provide aid to these free peoples
and thereby advance our own vital interests. It is essential that we
continue, with a small portion of our great resources and technical
knowledge, to promote in the emerging nations hope and orderly
progress, replacing misery, hostility, and violence.
The $2.4 billion of new obligational authority recommended for
1965 in this budget for the programs of the Agency for International
Development is $1.1 billion less than originally requested for 1964.
It will make the total 1965 obligational availability for the program
equivalent to the amount provided by the Congress for 1964 including
unobligated funds carried forward from the prior year. The 1965
recommendation represents a prudent assessment of the funds required
to fulfill the obligations we have undertaken and the opportunities we
seek in a changing and challenging world.
The amount requested reflects a continuing effort to increase the

THE BUDGET MESSAGE OF THE PRESIDENT

effectiveness and efficiency of our assistance programs. We are reducing AID staffing by several hundred employees, proportionately one of
the largest reductions of any agency in Government. We are stressing the necessity for recipient countries to take adequate self-help
measures. The 1965 request reflects the successes we have had in
reducing the dependence of some nations upon the low-cost foreign
aid loans made by the Agency for International Development; by
1965 a number of countries will have turned to other sources and types
of loans more consistent with their increasing economic strength.
On the other hand, the 1965 budget does not allow for sudden
opportunities that sometimes present themselves in international
economic affairs. We must be able to take quick advantage of situations in which resolute and decisive actions can turn threats to the
free world into constructive evidence of our determination to preserve the peace. We must also be able to take advantage of opportunities in which swift action can advance us dramatically along
the road to free world cooperation and prosperity. Should such
opportunities arise, I will request prompt action by the Congress to
provide any additional funds needed to meet emerging requirements.
Our partners in the Alliance for Progress will continue to receive
our most determined support and generous cooperation. Recent
improvements in the organization of the Alliance should permit an
acceleration of this program and foster ever greater hemispheric unity.
I am therefore proposing an expanded bilateral program for the
Alliance in 1965. Upon completion of negotiations and arrangements
with other member countries, legislation will also be proposed to
provide additional funds for long-term, low-interest loans by the InterAmerican Development Bank.
The sincerity of our purpose overseas is exemplified by the highly
successful work of the Peace Corps. As a result of this record and
the gratifying flood of requests for the services of the Corps, funds
are requested in 1965 for 14,000 volunteers, as compared with 10,500
in 1964.
Space research and technology.—Our plan to place a man on the
moon in this decade remains unchanged. It is an ambitious and important goal. In addition to providing great scientific benefits,
it will demonstrate that our capability in space is second to no
other nation's. However, it is clear that no matter how brilliant
our scientists and engineers, how farsighted our planners and managers, or how frugal our administrators and contracting personnel,
we cannot reach this goal without sufficient funds. There is no
second-class ticket to space.
Appropriations enacted for 1964 for the National Aeronautics and
Space Administration were $600 million below the amount requested.

THE BUDGET FOR FISCAL YEAR 1965

As a result, major development programs leading to the manned lunar
landing have fallen behind schedule. Careful replanning of the entire
program, including a reduction in the number of test flights, will offset
some of this delay. Even so, more funds are needed in 1964, and I am
therefore recommending a supplemental appropriation of $141 million
for this year.
For 1965, I am requesting appropriations of $5.3 billion, $63
million above the 1964 amount, including the proposed supplemental
appropriation The 1964 and 1965 recommendations represent the
minimum amount needed to achieve our goals in space. The estimated
increase of $590 million in expenditures in 1965 is due principally to
payments required by commitments made in 1964 and earlier years.
With the leveling off of appropriations, annual outlays should remain
relatively stable in subsequent years.
In addition to the manned space flight program, though related to
it, funds are included to support unmanned space flights for lunar
exploration and supporting research and development. Funds are
also included for scientific satellites, planetary probes, and experiments
with meteorological and communications satellites.
Agriculture and agricultural resources.—At the present time, our
farms are able to produce all we need for domestic use and all we can
reasonably expect to sell abroad with substantially less land and manpower than are now being used. As a result, we have crop surpluses,
inadequate farm income, underemployed rural people, and improper
land use. A wide range of Government programs, including the feed
grain and wheat programs, rural area development, and the more
constructive use of surplus production at home and in Food for Peace,
have Improved this situation. Nevertheless, we need further efforts
to help the farm economy adjust to its rapidly changing economic and
technological environment and to help the Nation take advantage of
its remarkably productive agriculture.
I shall shortly transmit to the Congress my recommendations for
agricultural legislation. Included will be cotton and dairy proposals
that will decrease by $230 million the estimated expenditures of the
Commodity Credit Corporation in 1965.
Titles I and I I of Public Law 480 (Agricultural Trade Development and Assistance Act), the principal authority for our Food for
Peace program, should be extended beyond their expiration date of
December 31, 1964. Legislation also should be enacted to encourage
the shifting of more of our present cropland to less intensive uses.
Federal payments in 1965 for agriculture and agricultural resources
are estimated at $5.1 billion, a reduction of $1.3 billion from 1964.

THE BUDGET MESSAGE OF THE PRESIDENT

This reduction is expected to occur mainly in farm commodity programs. A part, however, depends upon congressional approval of
legislation proposed last year authorizing the Farmers Home Administration to insure private credit for financing the rural housing
program and a new proposal providing for fees to cover the costs of
meat, poultry, and grain inspection services.
Natural resources.—We must manage and develop our natural
resources wisely, to meet the needs of an increasing population and
growing economy. Even within the limits of a restrictive budgetary
policy, public investments must be made in resource conservation and
development and in research to enable us to use more effectively our
water, land, minerals, forests, and other resources. Federal cash
payments of $2.7 billion are estimated in 1965 for these purposes.
The budget provides for continuing construction of going projects
which will supply water to our cities, industries, and farms; abate
water pollution and improve water quality; control destructive floods;
produce electric power; improve navigation; and provide recreational
opportunities. Provision is also made for the Corps of Engineers
and the Bureau of Reclamation to start 44 new projects with an estimated total Federal cost of $512 million.
The need for outdoor recreational areas and facilities is growing
rapidly. To help meet this need, legislation should be enacted to
assist States in providing recreational opportunities. Legislation
should also be enacted to preserve seashore and other areas with important recreation potential, and to protect our remaining wilderness
areas.
Commerce and transportation.—To encourage continuing growth
of our Nation's millions of privately owned businesses, the Government provides extensive aids, particularly to smaller businesses and
areas of persistent unemployment, and helps assure the availability of
adequate transportation and communication facilities.
Enactment of legislation already approved by the Senate is essential
to provide the additional authorizations necessary for the area redevelopment program to go forward and to permit necessary improvements
in that program.
Major proposed revisions in our national transportation policy are
also pending before the Congress. These proposals would make substantial contributions toward a more efficient transportation system
by placing greater reliance on the forces of competition and improving
the effectiveness of Government regulation. Extensive hearings have
been held on these proposals and I recommend their prompt enactment.

THE BUDGET FOR FISCAL YEAR

1965

Commerce and Transportation

Total Federal payments for commerce and transportation programs
will amount to $6.6 billion in 1965. This is about the same amount as
in 1964. Higher outlays from the Highway trust fund (financed
by special taxes on highway users), increased loans and grants to redevelop depressed areas, and financing of a design competition for the
civil supersonic transport aircraft will be offset by reductions for the
temporary accelerated public works program and the postal service,
and by strict economies in all programs.
Housing and community development.—In the Housing Act of
1961, the Congress substantially broadened Federal aids to private
enterprise and local public agencies to help improve housing conditions and rebuild urban communities. The act also made funds available to finance these programs for several years. In several cases,
these funds are now almost depleted. I am therefore recommending
legislation to provide authority and funds for continuing such programs as urban renewal, urban planning and open space grants,
housing loans for the elderly, and low-rent public housing. In addition, I am recommending important revisions and expansions essential
to increase the effectiveness of these programs in meeting critical
needs—particularly the needs of lower income groups whose inferior
earning power seriously handicaps their efforts to achieve adequate
living conditions.

THE BUDGET MESSAGE OF THE PRESIDENT

Legislation is already being considered by the Congress to
strengthen Federal aids to urban communities in order to help modernize and enlarge necessary mass transportation facilities. I urge
that action be completed soon on this vitally needed program.
To carry on and improve housing and community development programs without adding to net budgetary requirements, we shall continue to sell to private lenders federally owned mortgages acquired
in earlier years. New legislation is proposed to increase the effectiveness of the sales program. The proceeds of such sales and other
receipts of housing and community development programs are expected to more than offset payments for these programs in 1965, with
resulting net receipts estimated at $40 million.
Health, labor, and welfare.—This budget places major stress on
strengthening the productivity of our labor force, improving the
health of our people, and reducing the fear of economic insecurity.
In 1965, the Federal Government will strengthen the health, labor,
and welfare activities which contribute to these objectives. Payments
for these activities, mainly from self-financing trust funds, will be
$28.6 billion, about $1.3 billion more than in 1964.
Most of the payments are for social insurance and public welfare
programs which complement efforts by individuals and families to
provide for their own security. These programs have been significantly improved by legislation enacted in recent years. To foster
greater self-sufficiency and reduced reliance on public welfare, the
Congress should enact proposed legislation to create a National Service Corps and expand demonstration projects in community work
programs.
The budget proposals for health activities in 1965 will continue
to strengthen the National Institutes of Health and the Food and
Drug Administration and will improve environmental health protection. The budget provides for rapid progress under the legislation passed in the last session of the Congress to combat mental
illness and retardation, increase the number of doctors and dentists,
and reduce air pollution. New legislation is needed this year to improve nurse education and to extend the Hill-Burton program for construction of medical facilities, expanding and redirecting it to meet
pressing needs for nursing homes and for modernizing urban
hospitals.
Pending legislation to provide urgently needed health insurance
for aged persons through the social security system should also be
enacted. Provision should be made for benefits to be paid from
administrative budget funds to those not eligible under the social
security system. Since benefit payments would not start until 1966,
this provision would not affect the 1965 budget.

THE BUDGET FOR FISCAL YEAR

1965

Health, Labor, and Welfare

For manpower training and services, the budget recommends for
both 1964 and 1965 the full authorization provided under the recent
amendments to the Manpower Development and Training Act, More
than 275,000 unemployed workers, including youths found unqualified
for military service, will be trained on jobs and in classrooms during
1965. Of these, about 60,000 will receive basic literacy education.
Prompt enactment of the Youth Employment Act is needed to provide work and training in camps and in hometown projects for an
estimated 60,000 youths. Legislation is again recommended to improve the State unemployment insurance programs financed from the
unemployment trust fund; this legislation would extend coverage to
more people and lengthen the duration of benefits.
Education.—Bills enacted last year for Federal assistance to
higher education and enlarged Federal support for vocational education mark important milestones in efforts to improve our educational
system on a national scale. The budget includes supplemental appropriations for 1964 so that these measures can be implemented
promptly.
But much remains to be done. Important elements of the education
program proposed last year have not yet been enacted. In particular,
attention must be turned to the basic foundation of our educational
system—the elementary and secondary schools. First, I recommend
enactment of pending legislation providing grants to raise teachers'
salaries and build critically needed classrooms. Second, to supple-

THE BUDGET MESSAGE OF THE PRESIDENT

ment this general aid, I am also recommending an expanded program
providing project grants to meet special educational needs and to
provide special services for schoolchildren, particularly for use in
connection with community action programs to combat poverty.
The Congress should also enact the remaining portions of last year's
proposals, such as the federally guaranteed loan program and the
work-study program for college students; and the proposals directed
at special educational needs of other individuals, including graduate
students, prospective and existing teachers, all citizens who appreciate
the advantages of good public libraries, adults who have missed the
opportunity for basic schooling in the "3-BV, and those who seek
to make learning a continuing process through university extension
services.
In keeping with the continuing need to strengthen the scientific and
technological resources of the Nation, the budget also provides for expansion of the National Science Foundation's basic research and
science education programs. Major emphasis will be placed on increasing support for graduate students in the sciences and on
strengthening science instruction and facilities in colleges and universities, one objective of which is to develop additional top-ranking
centers of graduate study in the sciences.
Expenditures for education are estimated at $1.6 billion in 1965, an
increase of $0.3 billion over 1964. New obligational authority of
$3.1 billion is requested, up $1:2 billion from 1964.
Veterans benefits and services.—We have a lasting obligation to
those who died or were disabled in the defense of the Nation, and to
their dependents. During the past 3 years a cost-of-living increase in
disability compensation rates has been provided, and increases in benefits have been granted for the widows, children, and dependent parents of veterans who died as a result of military service. In addition,
vocational rehabilitation programs have been extended to disabled
peacetime ex-servicemen and to those wartime veterans who were
precluded from entering training within the regular time limits.
In 1965, the Federal Government will spend $5.5 billion on its programs for veterans. This is $425 million less than in 1964, mainly because of an anticipated substantial rise in receipts from sales by the
Veterans Administration of Government-owned mortgages, which are
applied against expenditures.
We will continue to make certain that veterans with service-related
disabilities, and their dependents, are fairly provided for. Benefits
and services for other groups of veterans will also continue to be provided, but with the recognition that veterans and their families are
sharing to an increasing extent in Federal, State, and local programs
which are raising the standards of income maintenance, educational
opportunity, and health and welfare for all Americans.

THE BUDGET FOR FISCAL YEAR 1965

SPECIAL ASPECTS OF THE GOVERNMENT PROGRAM
Certain additional elements of the proposed 1965 Government program deserve special note.
Federal expenditures and the balance of payments.—The recent
improvement in the U.S. balance of international payments represents
progress toward eliminating our persistent payments deficit. Preliminary estimates indicate that the gross balanee-of-payments deficit
in the second half of calendar year 1963 was roughly one-third that
of the first half. For the year as a whole, these estimates show the
deficit to be the lowest since 1957.
Three factors in particular have contributed to the improvement
during the past year: the continued price stability of U.S. products, a
proposed interest equalization tax on foreign securities, which would
be effective as of July 1963, and an increase in short-term interest rates.
Anticipation of the proposed tax, which is intended only as a temporary measure, has already had a favorable effect. To insure continuing benefits from the tax during the critical period ahead, I urge its
speedy enactment by the Congress. Enactment of the tax reduction
legislation now before Congress will also help the balance of payments
by making U.S. firms more competitive in world markets and by promoting the kind of economy which will be more attractive to U.S. and
foreign investors.
During the past one and a half years, all Federal Government activities affecting the balance of payments have been under continuing
scrutiny for the purpose of finding savings—large and small—which
can be made in payments abroad. In some cases, purchases or activities formerly conducted overseas have been restricted to the United
States. In others, they have been eliminated. Over 80% of the current obligations by the Agency for International Development for
loans and grants to developing countries now must be spent for goods
and services produced in the United States. In addition, defense offset agreements with certain of our European allies, the prepayment of
funds previously loaned to foreign governments, and the sale of special
nonmarketable, medium-term Treasury bonds to foreign central banks
have been particularly helpful to our balance of payments.
As a result of the reviews and actions undertaken, the net annual
outflow from Federal Government programs—payments less regular
receipts—is estimated to drop by $800 million between 1963 and 1965.
This excludes special receipts of a nonrecurring nature, such as prepayments of loans, sales of nonmarketable medium-term securities,
and advances received on military exports.

THE BUDGET MESSAGE OF THE PRESIDENT

Federal expenditures of an investment nature.—A large part
of the civilian expenditures of the Federal Government contributes
directly and indirectly to the growth and development of the Nation's
physical and human resources. For example, budget and trust fund
expenditures for fiscal year 1965 include $3.7 billion for Federal civil
public works, for the acquisition of major nondefense equipment and
other physical assets, and for small business, rural electrification, and
other loans and additions to civilian Federal assets. Another $5.3
billion of Federal civilian budget and trust fund outlays represent
grants for highways, hospitals, schools and other facilities which
increase State, local, and private physical assets.
Federal expenditures in 1965 also include $1.8 billion for such developmental activities as education, training and health, and $1.5 billion
for scientific research and development other than for defense and
space objectives. These outlays increase knowledge, enhance skills,
and strengthen the physical vigor and quality of the labor force.
Thus, of the total estimated Federal cash payments to the public in
1965, about $12.3 billion or 10%, represent an investment in civilian
programs which will help promote the long run growth of our Nation.
Furthermore, during fiscal year 1965 an estimated $8.2 billion will
be spent on defense research and development, including atomic
Additions to Non-defense Assets
S Billions

JH9.7

22.7

Grants for
/
Other State-Local
Public Work

FEDERAL RECEIPTS

FEDERAL PAYMENTS

feed Year Estimate 1965

THE BUDGET FOR FISCAL YEAR 196 5

energy, and $4.5 billion on space research and development. In the
long run these outlays will also make a valuable contribution to the
technological development and economic growth of our country.
Federal expenditures and the national output.—Direct Federal
purchases of goods and services in 1965 are estimated at $69.1 billion,
which is less than 11% of the gross national product; five-sixths of these
purchases are for the defense and space programs. Total Federal
purchases of goods and services have remained at approximately 11%
to 12% of the gross national product throughout the last decade.
Other large portions of the budget, such as social security payments,
represent transfers of purchasing power to or within other sectors
of the economy. Such outlays, amounting to $52.4 billion in 1965, are
estimated to fall somewhat as a percent of total national output.
These include $31.8 billion for transfer payments—such as old-age
and survivors insurance benefits, unemployment compensation, and
military and veterans pensions—which improve the recipients' standard of living by providing them with increased purchasing power.
Similarly, grants-in-aid to State and local governments for such activities as highways, public assistance, and public health increase the
ability of these governments to provide local public services. These
Federal expenditures transferring purchasing power to other sectors
of the economy have more than doubled from 1955 to 1964, while Federal purchases of goods and services have risen by about 50%.
Federal Debt, Purchases, and Employment Down Relative to Total Economy

Purchases of Goods and Services

V Civilian Employment
Federal as Percent of Total

•tm

THE

BUDGET MESSAGE

OF THE

PRESIDENT

In fiscal year 1965, the Federal Government will add to its direct use
of total national output much less than will State and local governments. In contrast to the estimated rise of $1.3.billion in direct Federal purchases in 1965 as compared with 1964, present indications are
that purchases by State and local governments will continue to rise by
at least as much as the $3 billion to $4 billion by which they have
been increasing in recent years.
PUBLIC DEBT
Under present law the temporary debt limitation of $315 billion will
continue in effect through June 29, 1964. The temporary limit then
becomes $309 billion for one day, June 30, 1964, after which the permanent ceiling of $285 billion again becomes effective.
PUBLIC DEBT AT END OF YEAR
[Fiscal years.
Description

Owned by Federal agencies and trust funds. _
Owned privately and by Federal Reserve
banks
Total

In billions]

1962
actual

1963
actual

1965
estimate

$55 .7

$57 .7

$60.3

$62.6

242 .5

248 .1

251.5

254.4

298.2

305.9

311.8

317.0

Note.—For further details see table 11 in part 2 of this document.

1964
estimate

THE BUDGET FOR FISCAL YEAR 1965

Net Public and Private Debt

The present temporary debt limits were enacted in November 1963.
The House Committee on Ways and Means noted in its report of
November 4, 1963, that the ceilings were very restrictive, and cut
sharply into the normal allowances for contingencies and flexibility
during periods of peak requirements in March and June. The report
also noted the concern of the Secretary of the Treasury that the debt
could not be reduced to the $309 billion limit set by statute for June 30,
1964, without disrupting orderly management of Treasury finances.
Based on the latest estimates contained in this budget, the debt
subject to limit on June 30, 1964, is now estimated to be $312 billion.
Accordingly, a change in the limit is necessary before June 30, 1964,
if serious difficulties in the conduct of public debt management are to
be avoided. A further change will be needed to cover the anticipated,
but reduced, deficit for 1965.

THE BUDGET MESSAGE OF THE PRESIDENT

Debt limitations which are so restrictive or so temporary in application as to necessitate several legislative revisions in a single year—as
last year—conflict with economical operation of the Government and
effective financial management, and involve both the Congress and
the Executive in unnecessarily repetitive discussions of the same issues.
Instead, the debt ceiling should provide sufficient flexibility for sound
management of the. Government's finances at the lowest cost, and
also permit the Treasury leeway for actively supporting the Nation's
balance-of-payments position through timely debt operations. With
or without a restrictive debt ceiling, expenditures in this administration will be held to the lowest possible level.
EFFICIENCY AND ECONOMY IN GOVERNMENT
I call upon all Government employees to observe three paramount
principles of public service:
First, complete fairness in the administration of governmental
powers and services;
Second, scrupulous avoidance of conflicts of interest; and
Third, a passion for efficiency and economy in every aspect of Government operations.
For its part, the Federal Government must be a good employer. It
must offer challenging opportunities to its employees. It must be
prompt to recognize and reward initiative. It must pay well to attract
and keep its share of dedicated and resourceful workers. It must welcome fresh ideas, new approaches, and responsible criticism.
For 33 years I have been in Government service. I have known its
challenge, its rewards, and its opportunities. But all these will multiply in the years to come. The time is at hand to develop the Federal
service into the finest instrument of public good that our will and
ingenuity can forge.
Controlling employment.—Although both our population and our
economy are growing and placing greater demands upon the Government for services of every kind, I believe the time has come to get our
work done by improving the efficiency and productivity of our Federal
work force, rather than by adding to its numbers.
This budget proposes a reduction in Federal employment in 1965—
from 2,512,400 to 2,511,200 civilian employees—and I have directed
the heads of all departments and agencies to work toward reducing
employment still further. This reversal in the trend of Federal employment results from a rigorous appraisal of personnel needs, determined measures to increase employee productivity and efficiency,
and the curtailment of lower priority work. It will be accomplished
despite large and unavoidable increases in workloads.
700-000 O—64

THE BUDGET FOR FISCAL YEAR 1965

Selected Prosram Trends

Of the 9i/£> million civilian employees of governments in the United
States today, 2y2 million are employed by the Federal Government
and about 7 million by the State and local governments. In the decade
from fiscal year 1955, Federal civilian employment in the executive
branch will rise by 6%, while the population of the United States
will increase by 17%. State and local employment will increase about
65% during the same period.
In fiscal year 1955, we had 14 Federal civilian employees in the
executive branch for every 1,000 people; in fiscal year 1965, we will
have fewer than 13 Federal civilian employees to serve every 1,000
people.
Management improvement and cost reduction.—As substantial
as are savings due to tightening up on Federal employment, even
larger economies result from actions which eliminate waste and duplication, simplify unnecessarily complex systems and procedures, and
introduce new and better business methods.

THE BUDGET MESSAGE OF THE PRESIDENT

The emphasis on management improvement in the executive branch
during the past 3 years has led to impressive economies on a very
wide front. Functions have been consolidated. Automatic data processing equipment has improved efficiency and reduced operating costs.
Excess property in the possession of one agency has been transferred
to others, saving substantial funds budgeted for new purchases. Productivity has been increased in agencies with the heaviest volume
of workloads, thus avoiding payroll increases.
In the Department of Defense, the cost reduction program has
achieved exceptional results. Without impairing combat strength or
effectiveness, savings of over $1 billion were achieved in fiscal year
1963, and annual savings by fiscal year 1967 are expected to reach the
impressive figure of $4 billion. As part of this effort, defense bases
and installations no longer needed will be shut down. The number of
civilian employees in the Department of Defense will decrease by 10,000 in fiscal year 1964 and by another 17,000 in 1965—to the lowest
level since 1950.
I have directed all departments and agencies to continue and intensify these efforts. When the search for economy is compromised,
the taxpayer is the loser.
Government organization.—The organization of the Government
must be adjusted to cope with new and challenging problems resulting
from scientific and technological advances, the development of new
and the elimination of old programs, and changes in policies and program emphasis.
One of the most urgently needed improvements requiring congressional action is legislation to create a Department of Housing and
Community Development to provide leadership in coordinating various Federal programs which aid the development of our urban areas.
1 recommend that the Congress approve establishment of this new
Department during its current session.
The authority of the President to transmit reorganization plans
to the Congress expired on May 31, 1963. Legislation now pending
in the Congress should be enacted to renew this authority.
Salary reform and adjustment.—Although this budget is deliberately restrictive, I have concluded that government economy will be
best served by an upward adjustment in salaries. In the last year
and a half the Federal Government has taken far-reaching steps to
improve its pay practices. The Federal Salary Reform Act of 1962
and the Uniformed Services Pay Act of 1963 established the principle
of keeping military and civilian pay generally in line with pay in
the private economy. This is a sound principle, and it is reinforced

THE BUDGET FOR FISCAL YEAR 1965

by the sound procedure of annual review. This principle is fair to
the taxpayer, to Government employees, and to the Government as
an employer.
This budget provides for the costs of such action in this session of
Congress. Any pay action by the Congress should bring salary rates
for top executive branch positions up to levels more nearly commensurate with their respective responsibilities, and increase rates
for the Congress and the Judiciary. Economy and efficiency in government will come primarily from the hard and conscientious work
of our top managers, who are now plainly underpaid for what is
expected of them.
Government Civilian Employment

THE BUDGET MESSAGE OF THE PRESIDENT

CONCLUSION

Approval of this budget will:
• Lift a major barrier to more rapid growth in the private sector of
the economy by reducing tax burdens and providing investment
incentives.
• Meet the Nation's defense, international, and domestic requirements.
• Provide generously for human needs and, with local community
action, attack forcefully the pockets of human want and deprivation
in our land.
• Advance efficient and economical administration in the Government so that each tax dollar will be a dollar well spent.
The program proposed for 1965 should provide ample assurance of
our determination to keep costs under tight control and move the tax
reduction bill toward speedy approval. It should also provide ample
evidence that critical national problems need not go unsolved and
human wants unmet in a Nation rich in moral as well as material
strength.
A government that is strong, a government that is solvent, a government that is compassionate is the kind of government thait endures.
There is no inconsistency in being prudent and frugal, in being alert
and strong, and in being sensitive and sympathetic to the unfilled
needs of the people.
This is the objective of this Administration. It is an objective
that will be met.
I firmly believe the proposals in this budget will serve the Nation
well and I ask the support of the Congress and the American people
in putting them into efFect.
LYNDON* B. JOHNSON.

January 21,1964.

PART 2

SUMMARY TABLES

THE GOVERNMENT DOLLAR
Where If comes from . . .

Where it goes . . .
iFix«<J Interest Charges

Agriculture

Fiscal Year 1965 Estbmrte

SUMMARY TABLES
Table 1. BUDGET RESUME (in billions of dollars)

ADMINISTRATIVE BUDGET AND TRUST FUND RECEIPTS AND EXPENDITURES
ADMINISTRATIVE
BUDGET FUNDS

Description

1963
actual

1964
1965
estimate estimate

TRUST FUNDS
1963
actual

1964
1965
estimate estimate

RECEIPTS
Individual income taxes _
_
Corporation income taxes
Employment taxes. _ _ _ _ _ _ _ _ _ _
Excise taxes
__
_
Unemployment tax deposits by States
Estate and gift taxes
Customs
Federal employees retirement
Interest on trust funds
Veterans life insurance premiums
Miscellaneous receipts
Interfund transactions

47.6
21.6

47.5
23.7

48.5
25.8

9.9

10.2

11.0

2.2
1.2

2.3
1.3

2.7
1.5

14.9
3.3
3.0

16.8
3.5
2.9

17.0
3.5
2.8

2.0
1.6
.5
3.4
-.5

1.9
1.7
.5
3.9
-.5

4.4
-.5

4.1
-.7

4.1
-.6

1.9
1.5
.5
3.2
-.5

86.4

88.4

93.0

27.7

30.2

30.9

National defense. _ _ _ _ _
__ _ __
International affairs and finance _
Space research and technology
__
Agriculture and agricultural resources.
Natural resources
Commerce and transportation
Housing and community development
Health, labor, and welfare
Education
_ _
__
Veterans benefits and services _ _
Interest
General government
Deposit funds (net)
Allowance for attack on poverty
Allowance for civilian pay comparability
Allowance for contingencies
Interfund transactions. _ __ __.

52.8
2.6
2.6
7.0
2.4
2.8
-.1
4.8
1.2
5.2
10.0
2.0

55.3
2.4
4.4
6.1
2.5
3.2
-.2
5.5
1.3
5.4
10.7
2.2

54.0
2.2
5.0
4.9
2.6
3.1
-.3
5.8
1.7
5.1
11.1
2.2

.7
*

.9
.1
*
.5
.1
3.4
1.6
22 J
*
.6

1.2
.1
*
.4
.1
3.5
.5
23.5
*
.5
*
*

-.5

.2
-.7

.2
.5
.3
-.6

*
-.1

92.6

98.4

97.9

Total receipts _

EXPENDITURES

Total expenditures.

.5
.1
2.9
*
21.9
*
.8
*
.1
-.5

-.5

26.5

29.3

29.4

CONSOLIDATED SUMMARY
Description

Cash receipts:
Administrative budget receipts..
Trust fund receipts
Intragovernmental transactions.
Total receipts from the public
Cash expenditures:
Administrative budget expenditures
Trust fund expenditures
Intragovernmental and other noncash transactions.
Total payments to the public
Excess of receipts from ( + ) or payments to (—) the public.__
*Less than $50 million.

1963
actual

1964

1965

86.4
27.7
-4.3

88.4
30.2
-4.2

93.0
30.9
-4.1

109.7

114.4

119.7

92.6
26.5
-5.4

98.4
29.3
-5.0

97.9
29.4
-4.6

113.8

122.7

-4.0

-8.3

-2.9

Note.— Detail may not add to totals due to rounding.

THE BUDGET FOR FISCAL YEAR 1965
Table 2. RECEIPTS FROM AND PAYMENTS TO THE PUBLIC
(CONSOLIDATED CASH BASIS) (in billions of dollars)
Description

1963
actual

1964
estimate

1965
estimate

RECEIPTS FROM THE PUBLIC
Individual income taxes
Corporation income taxes
Employment taxes
Excise taxes
Unemployment tax deposits by States.
Estate and gift taxes
Customs
Veterans life insurance premiums
Other receipts

47.6

21.6
14.9
13.2
3.0
2.2
1.2
.5
5.6

47.5
23.7
16.8
13.7

2.9
2.3
1.3
.5

48.5
25.8
17.0
14.5
2.8
2.7
1.5

5.7

.5
6.4

109.7

114.4

119.7

53.4
2.2
2.6
7.3
2.5
5.8
-.3
25.7
1.2
6.0
7.4
2.0
-.2

56.0
2.5
4.4
6.3
2.6
6.6
1.3
27.3
1.3
6.0
8.1
2.2
-.1
.2

55.2
2.4
5.0
5.1
2.7
6.6
*
28.6
1.6
5.5
8.6
2.2
*
.2
.5
.3

-.9
-.9

-1.0
-.9
-.1

-1.0
-1.0
*

Total payments to the public

113.8

122.7

Excess of receipts (+) or payments (—)

-4.0

-8.3

-2.9

Total receipts from the public _

PAYMENTS TO THE PUBLIC
National defense
International affairs and finance
Space research and technology
Agriculture and agricultural resources
Natural resources
Commerce and transportation
Housing and community development
Health, labor, and welfare
Education
Veterans benefits and services
Interest
General government
Deposit funds, net
Allowance for attack on poverty
Allowance for civilian pay comparability
Allowance for contingencies
Other undistributed adjustments:
Agency payments for employee retirement
Deduction from employees' salaries for retirement.__
Increase (—) or decrease in outstanding checks, etc.

*Less than $50 million.
Note.— This table shows the flow of money between the Government and the public on a cash
(collections and checks paid) basis. For fuller explanation, see special analysis A (pages 328 to 336).

SUMMARY TABLES

Table 3. NEW OBLIGATIONAL AUTHORITY BY TYPE AND FUNCTION
(In billions of dollars)

Description

ADMINISTRATIVE
BUDGET FUNDS
1963

actual

TRUST FUNDS

1964
1965
estimate estimate

1963

actual

1964
1965
estimate estimate

TYPE
Authorizations requiring current action
by Congress:

Appropriations 1
Rea ppropriations
Authorizations to expend from debt
receipts
Contract authorizations.
_ _ _
Total authorizations requiring current action by Congress

Authorizations not requiring current action
by Congress (permanent):
Appropriations 1
Authorizations to expend from debt
receipts
__
_
Contract authorizations
Total authorizations not requiring
current action by Congress (permanent)
Total new obligational authority

0.4

91.1

0.4

.5
1.5

*
.4

3.6

90.6

90.0

91.4

3.9

4.2

10.7

11.5

11.8

23.6

25.8

26.1

.7
.3

.6
.5

.5
.1

.2
.9

.1
5.4

.1
1.3

11.6

12.6

12.4

24.7

31.3

27.6

102.3

102.6

103.8

28.6

31.7

31.8

54.3
5.7
3.7
7.1
2.4
4.0
.6
5.4
1.4
5.5
10.0
2.2

53.8
3.0
5.2
6.4
2.6
2.9
2.0
5.8
1.9
5.6
10.7
2.3

53.7
3.6
5.3
5.0
2.6
2.8
.5
6.6
3.1
5.5
11.1
2.4
.5

.9
*
*
*
.1
3.6
.6
22.6
*
.7

\J
.1
*
*
.1
3.7
.4

1.3
.1
*
*
.1
3.8
.6
25.1
*

.5
.5

102.6

103.8

89.1
*

88.0
* •

.5
1.0

3.8

FUNCTION
National defense
._
International affairs and finance. __
Space research and technology
Agriculture and agricultural resources
Natural resources
___
Commerce and transportation_ _ _
Housing and community development
Health, labor, and welfare.
Education
Veterans benefits and services _
Interest
General government
_ __ _
Allowance for attack on poverty
Allowance for civilian pay comparability
Allowance for contingencies
Total new obligational authority

102.3

28.6

24.9
.7

31.7

31.8

"Less than $50 million.
Note.— New obligational authority is the amount becoming available by act of Congress for th<
incurring of obligations which will result in expenditures. The various types of new obligation^
authority are explained on pages 146 and 147. For detailed information on new obligational authorit;
by agency and account see pages 150 to 325.
1
Excludes appropriations to liquidate contract authorizations:
Administrative budget funds, 1963, $0.8 billion; 1964, $0.9 billion; 1965, $1.4 billion.
Trust funds, 1963, $4.1 billion; 1964, $4.5 billion; 1965, $4.9 billion.

THE BUDGET FOR FISCAL YEAR 1965

Table 4. NEW OBLIGATIONAL AUTHORITY BY AGENCY (in millions of dollars)
1964 estimate
Description

1963
enacted

Enacted

Supplemental
needed

1965 estimate

Total

Transmitted
herein

Later
transmittal

Total

ADMINISTRATIVE
BUDGET FUNDS
Legislative Branch
The Judiciary
Executive Office of the President.
Funds appropriated to the President
Department of Agriculture
Department of Commerce
Dept. of Defense—Military
Dept of Defense—Civil
Dept. of Health, Education, &
Welfare
.
Department of the Interior
Department of Justice
Department of Labor
Post Office Department
Department of State
Treasury Department
Atomic Energy Commission
Federal Aviation Agency
General Services AdministrationHousing & Home Finance Agcy__
National Aeronautics and Space
Administration
Veterans Administration
Other independent agencies
District of Columbia
Allowance for attack on poverty _
Allowance for civilian pay comparability
Allowance for contingencies.
Total administrative budget.

160
64
24

156
67
25

5,663
8,032
813
51,120
1,092

2,262
7,189
792
49,913
1,148

5,333
1,134
319
362
840
423
11,046
3,135
755
622
785

5,246
1,164
344
350
654
353
11,861
2,743
813
631
794

3,673
5,534
1,285
70

5,100
5,536
1,115
60

156
67
25

2,262 2,801
76 7,265 6,209
8
800
923
1,087 51,000 50,708
2 1,150 1,214
857
20
1
120

6,102 6,531
1,184 1,173
368
345
671
470
654
551
82
377
435
13 11,874 12,394
2,743 2,693
813
676
3
635
632
1,409 2,203
674
141
17

5,241
5,553
1,116
60

400

200
72
29

5,304
5,444
1,207
68

102,283

98,317

4,237 102,554 100,919

3,611

3,741

2,801
5,956
923
172" 50,880
1,214

-253

1,118
40

7,649
1,213
368
831
160
551
377
12,394
2,693
751
75
632
749
75

-65
5
500

5,304
5,444
1,142
72
500

544
500

2,870 103,789

TRUST FUNDS
Department of Commerce
Dept. of Health, Education, &
Welfare
Department of Labor
Veterans Administration
Civil Service Commission
Railroad Retirement Board
Other agencies
Total trust funds

3,817

14,989 17,073
4,261 4,192
711
719
2,247 2,382
1,115 1,218
1,667 2,370

17,073 17,439
4,192 3,933
719
714
2,382 2,391
1,218 1,279
2,370 2,184

60 17,499
3,933
714
2,391
1,279
2,184

28,602 31,695

31,695 31,757

60 31,817

*Less than one-half million dollars.
N o t e . — F o r explanation of the columnar headings for 1964 and 1965, see pages 148 and 149.
For detailed information on new obligational authority by agency and account, see pages 150 to 325.

SUMMARY TABLES
Table 5. EXPENDITURES BY AGENCY (in millions of dollars)
1964 estimate
Description

1963
actual

cted

Supplemental
needed

1965 estimate
Total

Transmitted
herein

Later
transmittal

Total

ADMINISTRATIVE
BUDGET FUNDS
Legislative Branch
147
63
The Judiciary
23
Executive Office of the President.
Funds appropriated to the Pres2,247
ident
7,735
Department of Agriculture
676
Department of Commerce
49,973
Dept. of Defense—Military
1,128
Dept. of Defense—Civil
Dept. of Health, Education, &
4,909
Welfare
_
1,029
Department of the Interior
317
Department of Justice
Department of Labor
257
770
Post Office Department
408
Department of State
11,028
Treasury Department
2,758
Atomic Energy Commission
726
Federal Aviation Agency
464
General Services Administration.
Housing & Home Finance Ag'cy.
410
National Aeronautics and Space
2,552
Administration
5,173
Veterans Administration
293
Other independent agencies
66
District of Columbia
Allowance for attack on poverty.
Allowance for civilian pay comparability
Allowance for contingencies
Subtotal,
Interfund transactions.
Total administrative
budget

93,155
-513

166
67
25
2,817
7,068
786
51,244
1,140

-91
*
1,056
2

166
67
25

179
72
28

2,817
6,978
786
52,300
1,141

2,533
6,183
833
51,008
1,192

5,530
1,114
330
415
546
385
11,874
2,800
790
555
212

5,458
1,126
343
546
475
362
12,335
2,735
824
578
339
4,890
5,161
-20
84

5,135
1,103
329
340
546
355
11,860
2,800
790
552
212

395

4,375
5,338
188
66

25
11
5

4,400
5,349
193
66

250

1,788

99,089
-685

97,301

92,642

11
1
76

30
14

97,262

179
72
28
2,533
5,815
833
192 51,200
1,192
*

-368

396
22
*
121

-190

5,853
1,148
343
667
475
382
12,335
2,735
829
578
149

100
-94
-65
5
250

4,990
5,066
-85
88
250

544
300

1,238

98,500
-600

20
*

97,900

98,405

TRUST FUNDS
Department of Commerce
Dept. of Health, Education, &
Welfare
Department of Labor
Veterans Administration
Civil Service Commission
Railroad Retirement Board
Other agencies

3,043

3,581

3,673

15,789
3,816
828
1,131
1,112
1,332

16,705
3,556
634
1,272
1,129
2,927

17,519
3,273
489
1,435
1,144
2,147

Subtotal
Interfund transactions.

27,050
-505

29,803

29,679

Total trust funds.

26,545

29,315

3,673
170

17,519
3,443
489
1,435
1,144
2,147

170 29,849
-477
29,372

*Less than one-half million dollars.
Note.—For explanation of the columnar headings for 1964 and 1965, see pages 148 and 149.
detailed information on expenditures by agency and account, see pages 150 to 325.

THE

BUDGET FOR FISCAL YEAR

1965

Table 6. INVESTMENT, OPERATING, AND OTHER

EXPENDITURES

(In millions of dollars)
Description

1963

1964

1,785
87
2,289
899
17,947

1,085
98
2,720
-347
18,734

-19
176
2,815
118
17,239

23,007

22,288

20,330

1,312

1,686

1,683

1,340

1,714

1,706

3,439
1,333

5,253
1,587

5,906
1,931

7,871
15

8,581
16

8,233

12,658

15,436

16,090

29,256
26,893

31,461
27,940

30,815
28,466

56,150

59,402

59,281

-513

250
-685

250
544
300
-600

92,642

98,405

97,900

•-

-283
32

317
43

550
25

-250

1
362

2
576

3.481
54

4,835
68

3,583
74

17,980
2,834

18,586
2,822

19,470
2,860

20,814

21,409

22,330

1,491

1,834

2,126

1,461
-505

1,294
-488

1,160
-477

26,545

29,315

29,372

1965

ADMINISTRATIVE BUDGET FUNDS
Additions to Federal assets:
Civil:
Loans _
Investments.
Public works—sites and direct construction
Other
National defense

Total, additions to Federal assets
Additions to State, local, and private assets:
Civil
National defense
Total, additions to State, local, and private assets
Expenditures for other developmental purposes:
Civil:
Research and development
_
_
Other
. _-_ _
National defense:
Research and development
Other
Total, other developmental expenditures
Current aids, special services, and operations:
Civil
National defense
Total, current aids, special services, and operations
Allowance for attack on poverty
Allowance for civilian pay comparability
Allowance for contingencies
Interfund transactions
Total administrative budget

TRUST FUNDS
Additions to Federal assets:
Loans
Public works
Other
Total, additions to Federal assets

Additions to State, local, and private assets
Expenditures for other developmental purposes.
Retirement and social insurance benefits:
Insurance and unemployment benefits _ ._
Other

_ __

Total, retirement and social insurance benefits
Current aids, special services, and operations _ _
District of Columbia, deposit funds, and other unclassified
items
_ -_
.Interfund transactions.. _
. . . .
._
Total trust funds

*Less than one-half million dollars.
Note.— For more information on this classification see special analysis D (pages 354 to 372).

SUMMARY TABLES
Table 7. FEDERAL RECEIPTS AND EXPENDITURES IN THE
NATIONAL INCOME ACCOUNTS (in billions of dollars)
Description

1963

1965
stimate

1964

RECEIPTS, NATIONAL INCOME BASIS
Personal tax and nontax receipts
Corporate profits tax accruals
Indirect business tax and nontax accruals
Contributions for social insurance
Total receipts, national income basis

50.1
21.6
15.6
21.9

50.1
23.3
16.5
23.7

52.3
24.9
17.3
24.2

109.3

113.6

118.8

64.4
29.2

7.9
7.6
3.5

67.8
30.5
9.4
8.0
3.5

69.1
31.8

112.6

119.1

121.5

-3.3

-5.5

-2.8

EXPENDITURES, NATIONAL INCOME BASIS
Purchases of goods and services
Transfer payments
__.
Grants-in-aid to State and local governments
Net interest paid
Subsidies less current surplus of Government enterprises.
Total expenditures, national income basis
Surplus ( + ) or deficit (—), national income basis

9.7
8.5
2.5

RELATION OF THE FEDERAL SECTOR IN THE NATIONAL INCOME ACCOUNTS
TO RECEIPTS FROM AND PAYMENTS TO THE PUBLIC
RECEIPTS
Total receipts, national income accounts
Receipts not included in Federal receipts in the national
income accounts:
Realization on loans and other assets
District of Columbia government receipts
Interest and other earnings __ _
_
Receipt adjustments to consolidated cash basis:
Employer and employee contributions to Federal retirement
funds
Accrual to cash and other adjustments
Total Federal receipts from the public
EXPENDITURES
Total expenditures, national income accounts
Expenditures not included in Federal activities in the national
income accounts:
Loans, purchase of land, deposit funds, etc
District of Columbia government expenditures
Portion of interest and other expenditures offset by receipts
Expenditure adjustments to consolidated cash basis:
Employer and employee contributions to Federal retirement
funds
Accrual to cash adjustments .
Total Federal payments to the public
__ _

109.3

113.6

118.8

1.5

1.1

f. 1

]'.2

1.0
.4
1.3

-1.9
-.6
109.7

-1.9
. 1

-1.9
.2

114.4

119.7

112.6

119.1

121.5

2.7
.3

4.6
.4

2.9
.4

-1.9
-.6

-1.9

-1.9
-1.1

113.8

122.7

Note.—This table shows Federal receipts and expenditures on the basis used in the national
income and gross national product statistics of the Department of Commerce. For a fuller explanation, see special analysis A (pages 328 to 336).

THE BUDGET FOR FISCAL YEAR 19 65
Table 8. RELATION OF AUTHORIZATIONS TO EXPENDITURES
(In millions of dollars)
Description

1963
actual

1964
estimate

1965
estimate

ADMINISTRATIVE BUDGET FUNDS
New obligational authority (tables 3 and 4): *
Current authorizations
Permanent authorizations

90,635
11,648

90,000
12,553

91,404
12,384

Total new obligational authority

102,283

102,554

103,789

38,974
-639
647

45,309
-647
796

43,874
-796
796

-1,085
-152

-602
-198
-43,874

-510
-152
-41,693

-210
-42,308

103,337
42,308
-5
-46,550

105,308
46,550
-6
-53,352

93,155
-513

99,089
-685

98,500
-600

92,642

98,405

97,900

Unobligated balances brought forward, start of year (table
10).
Appropriations available in prior year
Appropriations available from subsequent year
Balances no longer available:
Unobligated balances rescinded
Unobligated balances lapsing
Capital transfers from revolving funds to general fund
Unobligated balances carried forward, end of year (table 10).
Obligations incurred, net (table 9)
Obligated balances brought forward, start of year (table 10)
Adjustments of obligated balances in expired accounts
Obligated balances carried forward, end of year (table 10)__
Subtotal
Interfund transactions (see note to table 14)
Total administrative budget expenditures (tables 1
and 5)
From new obligational authority
From balances of prior obligational authority _

-45,309
94,720
40,953

70,541
27.359

*Less than one-half million dollars.
Note.— This table (administrative budget and trust funds) summarizes and brings into relationship
totals from the various other tabulations. The types of new obligational authority and the considerations involved in the various means of financing agency activities are explained on pages 146 to 149 .
1
Excludes aj propriations to liquidate contract authorizations: 1963, $804 million; 1964, $942 million; 1965, $1,3• 0 million.

SUMMARY TABLES

Table 8. RELATION OF AUTHORIZATIONS TO EXPENDITURES—Con.
$ Billion,

Expenditures
in 1965

97.9

Expiring Authority
and Inteifund Payments

Unspent Authorizations
Enacted in Prior Years

To be held for Expenditures

90.4

in Later Years

Unspent Authorizations >
for. Expenditures in
Future Years

95.0

61.8

(In millions of dollars)
Description

1963
actual

1964
estimate

1965
estimate

TRUST FUNDS
New obligational authority (tables 3 and 4 ) :

Current authorizations
Permanent authorizations

3,940
24,661

354
31,341

4,236
27,581

Total new obligational authority
28,602
Unobligated balances brought forward, start of year (table 10)__
55,909
Balances no longer available: Unobligated balances lapsing
-32
Unobligated balances carried forward, end of year (table 10)
-57,445

31,695
57,445
-27
-60,458

31,817
60,458
-27
-62,295
29,953
9,316

-8,896

28,656
8.896
101
-9,316

-9,532

26,364
685
-505

28,336
1,467
-488

29,738
111
-477

26,545

29,315

29,372

Obligations incurred, net (table 9)
_,
Obligated balances brought forward, start of year (table 10)
Adjustment for stock purchase, FNMA
Obligated balances carried forward, end of year (table 10)
Subtotal __
Government-sponsored enterprise expenditures
Interfund transactions (see note to table 14)
Total trust fund expenditures (tables 1 and 5)
From new obligational authority
From balances of prior obligational authority

27,034
8,226

21,350
8,021

2
Excludes appropriations to liquidate contract authorizations: 1963, $4,139 million; 1964, $4,482
nillion; 1965. $4,856 million.
700-OOQ O—64
4

THE BUDGET FOR FISCAL YEAR 1965
Table 9. OBLIGATIONS INCURRED, NET (in millions of dollars)
Description

1963
actual

1964
estimate

1965
estimate

ADMINISTRATIVE BUDGET FUNDS
Legislative Branch
The Judiciary
Executive Office of the President
Funds appropriated to the President
Department of Agriculture
Department of Commerce
Department of Defense:
Military
Civil
Department of Health, Education, and Welfare..
Department of the Interior
Department of Justice
Department of Labor
Post Office Department
Department of State
Treasury Department
Atomic Energy Commission
Federal Aviation Agency
General Services Administration
Housing and Home Finance Agency
-_.National Aeronautics and Space Administration.
Veterans Administration
Other independent agencies
District of Columbia
Allowance for attack on poverty
Allowance for civilian pay comparability
Allowance for contingencies
Total administrative budget_

142
63
23
2,582
7,991
776

157
67
25
3,049
7,329
896

197
72
29
2,579
5,888
958

49,002

51,631
1,180
6,101
1,276
342
478
651
457
11,883
3,079
892
658
857
5,397
5,382
1,185
66
300

51,943
1,240
7,957
1,220
365
827
551
385
12,388
2,693
814
773
1,198
5,421
5,092
1,085
88
500
544
500

94,720

103,337

105,308

3,951
15,794
3,816
846
1,125
1,115
387

3,816
16,706
3,571
642
1,286
1,129
1,507

3,815
17,534
3,459
492
1,452
1,144
2,058

27,034

28,656

29,953

1,104

5,144
1,074
314
262
808
407

11,049
2,989
734
580
466
3,460

5,214
472
66

TRUST FUNDS
Department of Commerce
Department of Health, Education, and WelfareDepartment of Labor..Veterans Administration
Civil Service Commission
Railroad Retirement Board
Other agencies
Total trust funds.

Note.—This table reflects the net obligations incurred, as explained on pages 146 and 147. For
administrative budget funds, obligations are determined by deducting from the gross obligations
the applicable receipts of public enterprise funds and intragovernmental funds, and the reimbursements to general fund and special fund appropriations. For trust funds, net obligations are determined by deducting from the gross obligations the applicable receipts of trust revolving funds
and the reimbursements to trust fund appropriations.

SUMMARY TABLES

Table 10. BALANCES OF OBLIGATIONAL AUTHORITY (in millions of dollars)
Start 1963
Description

Obligated

Start 1964—
End 1T63

Start 1965— Start 1966—
End 1964
End 1965

Un- Obli- Un- Obli- Un- Obli- Unobli- gated obli- gated obli- gated obligated
gated
gated
gated

ADMINISTRATIVE BUDGET
FUNDS
Legislative Branch
The Judiciary
Executive Office of the President
Funds appropriated to the President
Department of Agriculture
Department of Commerce
Department of Defense—Military
Department of Defense—Civil
Dept. of Health, Education, & Welfare..
Department of the Interior
Department of Justice
Department of Labor
Post Office Department
Department of State
Treasury Department
.
Atomic Energy Commission
Federal Aviation Agency
General Services Administration
Housing and Home Finance Agency
National Aeronautics and Space Administration
Veterans Administration
Other independent agencies
District of Columbia
Special allowances
Total administrative budget

45
5
3
3,765 6,433

37
5
3
,098

,631
3,376 1,189
620
522
538
22,130 9,870 21 012
254
279
77
720
1,519
314
323
279
172
17
21
15
14
14
216
407
366
7
90
40
85
138
278
158
1,013
191 ,245
352
233
357
163
371
278
3,582 9,283 ,630

24
34
45
39
1
5
6
*
3
4
,508
,329
,678 4,375 8,899
990
,982
771 4,056
758
531
731
426
856
391
,693 20 ,343 11,041 21,086 9,920
293
341
66
35
9
,289
365
470 4,391
162
485
213
119
557
111
29
15
14
14
51
77
304
307
301
237
512
13
7
7
588
158
54
24
32
160
167
260
267
255
219
,524
336
1,482
459
246
167
105
444
381
396
357
212
576
,328 4,275 10,493 5,324 9,813

824
295

548 2,726
392 3,157
334 1,730
275
368
394. 1,034
335
851
555
833
2,171 8,727 2,348 9,438 3,340 9,264 4,510 9,197
64
81
97
96

100

500

100

40,953 38,974 42,308 45,309 46,550 43,874 53,352 41,693

Recapitulation by type of balance:

Appropriations
30,201 9,747 30,130 14,773 32,044 12,938 36,041 11,835
Authorizations to expend from debt
6,782 20 ,628 6,055 21,113 7,635 20 ,990 9,801 20,472
receipts
2,192 2,649 2,749 2,382 2,819 3,245 2,522 2,582
Contract authorizations
1,779 5,949 3,374 7,040 4,052 6,702 4,988 6,804
Revolving and management funds
Total administrative budget

40,953 38,974 42,308 45,309 46,550 43,874 53,352 41,693

TRUST FUNDS

Department of Commerce
5,231 3,085 6,139 2,718 6,374 2,617 6,516 2,591
37 21 ,645
22 21,312
23 21 ,679
Dept. of Health, Education, & Welfare __
17 22,116
39 7,364
23 6,890
8 6,269
Department of Labor
7 5,824
361 6,682
357 6,460
349 6,383
Veterans Administration
331 6,517
106 14,607
92 13,511
123 15,546
Civil Service Commission
98 12,389
90 3,699
90 3,923
Railroad Retirement Board
90 3,788
86 3,698
l
Other agencies
2,455 2,279 2,196 3,555 2,344 4,418 2,366 4,545
Total trust funds
8,226 55,909 8,896 57,445 9,316 60,458 9,532 62,295
Recapitulation by type of balance:

Appropriations *
Authorizations to expend from debt
receipts
Contract authorizations
Revolving and management funds
Total trust funds

2,727 44,203 2,953 45,105 2,812 47,290 2,863 48,863
69 2,014
47 2,024
\7
865 - 1 8 4 1,871
5,029 3,897 5,538 3,629 6,076 4,214 6,218 4,235
382 7,183
382 6,930
589 6,841
453 6,944
8,226 55,909 8,896 57,445 9,316 60,458 9,532 62,295

"'Less than one-half million dollars.
Note.—For explanation of balances carried forward see page 148.
1
Obligated balances include deposit funds.

THE BUDGET FOR FISCAL YEAR 1965
Table 11. THE PUBLIC DEBT (in millions of dollars)
Description

1963
actual

1964

1965

PUBLIC DEBT HELD BY THE PUBLIC

242,473

248,125

251,514

4,012
-45
1,033
1,611

8,338
-50

2,948
-55

810
-3,921

550

6,612

5,177

3,443

961

1,787

538

5,651

3,389

2,906

248,125

251,514

254,420

Public debt held by Government-administered funds, start of
year

55,727

57,735

60,286

Change in public debt held by Government-administered
funds during the* year X table B-11)

2,007

2,552

2,294

Public debt held by Government-administered funds, end of
year

57,735

60,286

62,580

248,125
57,735

251,514
60,286

254,420
62,580

305,860

311,800

317,000

607
-368

749
-360

705
-355

306,098

312,189

317,350

307,000

309,000

285,000

Public debt held by public, start of year

Change in public debt held by public during the year:
Consolidated cash deficit or surplus (tables 1 and 2)
Receipts from exercise of monetary authority
Increase or decrease in debt issued in lieu of checks (table
A-3).
Increase or decrease in cash on hand
Net borrowing from or repayments to the public
Deduct net borrowing of Government enterprises from the
public (included on preceding line) (table B—10)
Net increase in public debt held by the public
Public debt held by the public, end of year
PUBLIC DEBT HELD BY
GOVERNMENT-ADMINISTERED FUNDS

COMPARISON OF PUBLIC DEBT WITH STATUTORY
LIMITATION AT END OF YEAR

Public debt:
Held by the public
v_
Held by Government-administered funds
Total public debt
Portion of Government enterprise debt subject to the public
debt limitation
Portion of public debt not subject to limitation
Debt subject to limitation, end of year_
Statutory limitation on public debt, end of year:
Under existing legislation
Under proposed legislation

Note.—The first portion of this table reflects borrowing (or repayment thereof) through the^issuance of U.S. securities to the public by both the Treasury and by certain "Government enterprises,"
a term used here to refer to activities which have authority to issue their own securities. The borrowing by such enterprises is then deducted to arrive at the changes in the public debt^ (a term
which relates to securities issued by the Treasury). "Government-administered funds" in this
table refers to activities which have authority to buy U.S. securities for investment purposes.
1
To be determined later, when more reliable estimate of requirements may be possible.

SUMMARY TABLES
Table 12. CIVILIAN EMPLOYMENT IN THE EXECUTIVE BRANCH
As of June
Description

Executive Office of the President
Department of Agriculture
Department of Commerce
Department of Defense:
Military and military assistance

1963
actual

1,660
112,488
32,338
1

Civil 2

Department of Health, Education, and Welfare.
Department of the Interior
Department of Justice
Department of Labor
Post Office Department
Department of State
Agency for International Development
Peace Corps
Treasury Department
Atomic Energy Commission
Federal Aviation Agency
General Services Administration
Housing and Home Finance Agency
National Aeronautics and Space Administration
Veterans Administration
Other:
Civil Service Commission
Selective Service System
Small Business Administration
Tennessee Valley Authority
The Panama Canal
United States Information Agency
Miscellaneous independent agencies and other

Total

1965
estimate

1,621
116,800
34,603

1,618
115,376
34,945

1.017,117 1.007,000
32,293
32,648
86,000
81,062
72,592
69,558
32,759
32,081
10,016
9,567
593,100
587,161
25,324
24,519
16,500
16,782
1,150
1,110
88,433
86,579
7,330
7,120
46,400
46,313
35,944
32,650
14,410
14,160
32,600
29,934
173,021
172,864

989,920
31,831
90,730
72,774
32,759
9,954
597,900
25,320
15,700
1,250
90,427
7,330
46,450
37,700
15,144
33,800
173,754

4,125
6,996
3,500
18,041
15,083
12,228
24,531

4,079
8,036
3,500
17,650
15,228
12,228
25,797

4,085
6,916
3,387
17,917
14,966
11,793
23,513
3

1964
estimate

2,490,288 2,512,400 2,511,200

Note.— The figures include tentative estimates for employment under appropriations proposed for
later transmittal. In accordance with definitions of the Civil Service Commission, the figures cover
both those employees who are working on June 30, and also part-time and intermittent employees
who work at any time during the month of June.
1
Consists of civilian employment for military functions and military assistance.
2
Employment of the Panama Canal and the U.S. Soldiers' Home is included under "Other" below.
3
Excludes 7,41 1 project employees for the public works acceleration program.

PART 3

RECEIPTS

ANALYSIS OF RECEIPTS BY SOURCE
This section of the budget supplements the budget message with
additional information about the revenue estimates and the anticipated tax changes.
Economic base of estimates.—Prompt enactment of the pending
tax bill, making sizable tax reductions effective as of January 1, 1964,
will accelerate the growth of the economy toward full employment.
Under these conditions the Nation's output of goods and services is
expected to reach $623 billion in calendar year 1964, an increase of
$38 billion over calendar year 1963. This projection should be
taken as the midpoint of a $10 billion range, from $618 to $628 billion.
Substantial gains in personal income and corporate profits before
taxes will accompany the growth in output. Specifically, the revenue
estimates in the 1965 budget are based on the following economic
assumptions:
ECONOMIC ASSUMPTIONS
[Calendar year j.

In billions]
1962
actual

Gross national product. _ _
Personal income
Corporate profits before taxes__

$554.9
442.1
46.8

1963
preliminary
$585.0
463.0
51.7

1964
estimate
$623
492

Estimates of tax revenues cannot be derived directly and simply
from the assumed levels of aggregate economic performance. The
definitions of taxable income in the tax statutes, which determine
tax liabilities, differ from the economic or statistical definitions of
income which are used to measure economic performance. In
addition, tax payments are received by the Treasury after the period
in which tax liabilities are incurred. For example, corporation income tax collections now lag about 6 months behind the period when
the taxable income was earned; there is also some lag between the
time when individual income and social security taxes are deducted
from earnings and the time employers transfer these sums to the
Treasury.
Estimated changes in revenues.—Total receipts from the public
are estimated at $119.7 billion in fiscal year 1965, an increase of $5.4
billion over the level estimated for fiscal year 1964. These estimates
56

RECEIPTS

assume passage of the revenue legislation discussed in the proposed
legislation section of this analysis. Especially important is enactment
of the income tax program approved by the House of Representatives
and currently under consideration in the Senate. The reductions in
income tax rates are assumed to be retroactive to January 1, 1964.
Under the new income tax rates, tax payments by individuals and
corporations will be reduced by approximately $2.6 billion in fiscal
year 1964 and $8.0 billion in fiscal year 1965, calculated on the basis
of calendar 1963 income levels. These potential gross losses in tax
receipts, however, will be offset in part by increased revenues from
the economic stimulus of the tax cut and a new schedule for quarterly
corporation tax payments. As a result, the net revenue decline
from the tax changes is estimated to be $2.2 billion in fiscal year
1964 and $3.1 billion in fiscal year 1965. Despite this loss, income
tax collections, individual and corporate, are expected to be $3.1
billion greater in fiscal 1965 than in the current fiscal year, chiefly
because of the anticipated continuing expansion of economic activity.
RECEIPTS FROM THE PUBLIC
[Fiscal years.

In millions]

Source

1963
actual

1964
estimate

1965
estimate

Administrative budget receipts:

Individual income taxes
Corporation income taxes
Excise taxes
Estate and gift taxes
Customs
Miscellaneous budget receipts
Subtotal, administrative budget receipts

$47,588
21,579
9,915
2,167
1,205
3,922

$47,500
23,700
10,221
2,335
1,275
3,369

$48,500
25,800
10,987
2,740
1,460
3,513

86,376

88,400

93,000

14,862
3,009
3,279
1,878
1,477
494
2,690

16,777
2,900
3,478
1,959
1,589
501
2,958

16,996
2,825
3,504
1,923
1,669
499
3,457

27,689

30,163

30,872

-4,326

-4,197

-4,130

109,739

114,366

119,742

Trust fund receipts:

Employment taxes
Deposits by States, unemployment insurance
Excise taxes
Federal employee and agency payments for retirement
Interest on trust funds
Veterans life insurance premiums, etc
Other trust fund receipts
Subtotal, trust fund receipts
Intragovernmental transactions
Total, receipts from the public

THE BUDGET FOR FISCAL YEAR 1965

Individual income tax receipts are estimated at $48.5 billion in
fiscal 1965 compared with $47.5 billion in 1964. This change reflects
the net effect of the anticipated reduction in tax rates and the associated rise in personal income subject to tax.
Corporation income tax receipts are estimated at $25.8 billion in fiscal
year 1965, an increase of $2.1 billion over fiscal year 1964. The
decline in tax collections because of the reduction in corporation income tax rates will be more than offset by the receipts gained from the
higher profits arising from the stimulation to economic activity and
from the acceleration of corporation tax payments under the terms of
the pending tax bill.
Excise tax receipts show an estimated increase of $766 million during
the coming fiscal year. Virtually all excise taxes will yield increased
revenues, accompanying the expected general rise in economic activity.
Employment tax collections will rise by $219 million in fiscal year
1965 to $17.0 billion. The increase reflects mainly higher levels of
employment and earnings and the increase in the taxable wage base
for the railroad retirement system from $4,800 to $5,400 enacted last
year.
Deposits by States for unemployment insurance are expected to
decline by $75 million. Because of generally rising employment, many
firms have maintained stable employment levels, and are qualifying
for reduced rates of payroll taxes under experience rating clauses in
their State laws.
Miscellaneous budget receipts in total will rise by $144 million to
$3.5 billion in fiscal year 1965. Increases estimated in a number of
components, including proposals for new or higher user charges, are
partly offset by declines in others.
Proposed legislation.—The following are the major revenue proposals recommended for enactment this year.
Income tax rate and structural tax changes.—The pending revenue
bill will reduce tax rates on individual and corporate incomes, make
tax treatment among taxpayers more equitable, and bolster economic
incentives. Part of the tax reduction will be in effect during calendar
year 1964 and the remainder during calendar year 1965. When fully
effective, it will reduce income tax liabilities by over $11 billion a year.
The legislation is assumed to be enacted very early this calendar
year, with a 14% withholding rate on wages and salaries beginning in

RECEIPTS

February, and with the initial stage of the new income tax rates
effective for the entire calendar year 1964. Accordingly, the reduced
withholding rate will influence receipts only during the last months
of fiscal 1964 and during the whole of fiscal 1965. When the second
stage of tax reductions goes into effect on January 1, 1965, the withholding rate will remain at 14%.
The rates on taxable individual incomes then will be in a range
from 14% to 70%, compared with the present range from 2 0 % to
9 1 % . The present first bracket of taxable income up to $2,000 for
single persons, and $4,000 for married couples, which is now taxed
at 20%, will be divided into four equal brackets, each of which will
be taxed at a different rate below 20%.
The combined normal and surtax rates on corporation incomes
above $25,000 will become 48%, compared with the current 52%.
Incorporated small businesses will receive an even larger tax rate
reduction, since the normal tax rate on corporation income below
$25,000 will decline to 2 2 % from the current 30%.
Corporations with income tax liabilities in excess of $100,000 per
year will have their tax payments moved closer in time to the accrual
of tax liabilities. The speedup of payments will start in calendar year
1964 and will be completed in 1970, when payments of estimated tax
liabilities greater than $100,000 will be made quarterly as the liability
develops. During the transition to the new payment schedule total
tax payments by these corporations will not exceed the taxes they
would pay under present rates on the same income.
The major structural revisions contained in the bill will become
effective on January 1, 1964. They include (1) a minimum standard
deduction that will reduce the tax liability of many low-income taxpayers by more than the general rate reduction, (2) a limit on the
deductibility of certain State and local government taxes, and (3)
repeal of the dividend credit and an increase in the amount of dividend
income excluded from taxable income. Other important provisions
will reduce such special exemptions as tax-free sick pay allowances
for illnesses of short duration, limit the grouping of oil properties for
depletion allowances, and tighten the requirements on personal holding companies.
Excise taxes.—Under present law, the excise rates on distilled spirits,
beer, wines, cigarettes, passenger automobiles, and automobile parts
and accessories will be reduced on July 1, 1964, and the tax on general
telephone service will expire on July 1, 1964. The revenue estimates
in this budget are based on proposed legislation extending the present
rates of these taxes for 1 additional year.

THE BUDGET FOR FISCAL YEAR 19 65

Federal unemployment tax.—Legislation is pending to increase the
payroll tax rate on employers under the unemployment insurance
system from 3.1% to 3.4%, effective on calendar year 1965 wages.
Federal receipts under this program will not show the effects of the
new tax rate until fiscal year 1966 because of the lag in depositing the
receipts with the Treasury. This increased tax rate is designed to
finance proposed improvements in the system, including a longer
period of eligibility for unemployment benefits.
User charges.—In keeping with the policy that a larger share of the
costs of programs which provide special benefits or privileges should
be met by those receiving the benefits, rather than by the general
taxpayer, legislation authorizing certain additional user charges,
and extending others, is recommended.
The most significant charges proposed affect commercial and other
users of transportation, and would become effective on July 1, 1964.
These include (a) continuing as a user charge the 5% excise tax on air
passenger transportation which would otherwise expire on July 1,
1964; (b) instituting a 5% tax on air freight; (c) extending to jet fuels,
currently untaxed, the present 2 cents per gallon tax on fuels used in
commercial air transportation; (d) increasing from 2 cents to 3 cents
per gallon the tax on all fuels used in general aviation; and (e) initiating user charges for the inland waterways through a tax of 2 cents per
gallon on fuels used in transportation on these waterways. The receipts from all of these charges will be retained in the general fund of
the Treasury under the proposed legislation.
In addition, a land and water conservation fund has been proposed
to finance planning, land acquisition and development of recreation
facilities, to be carried out chiefly through grants to States. The
revenues would come to this new fund from (a) existing and new admission and user fees in national forests, parks, and other recreation
areas, (b) the proceeds from the sale of surplus Government real
property, and (c) transfer of certain motor boat fuel taxes from the
highway trust fund.
Legislation to increase the fees charged by the Patent Office has
been sent to the Congress; the new fee schedule would bring the
Patent Office closer to a self-sustaining pattern of operations.
Rural Electrification Administration.—Legislation is again being
proposed to permit the Rural Electrification Administration to use
its repayments on outstanding loans to finance new loans. Enactment of this legislation will reduce equally miscellaneous receipts and
REA expenditures in fiscal years 1964 and 1965, and will not affect
the budgetary surplus or deficit.

RECEIPTS

ESTIMATED EFFECT OF PROPOSED LEGISLATION ON ADMINISTRATIVE BUDGET
RECEIPTS
[In millions]
Proposal

Income tax rate and structure proposals (net)
Excise tax rate extensions:
Alcohol taxes
Tobacco taxes
Passenger automobiles
Parts and accessories for automobiles
General telephone service
Subtotal, excise tax rate extensions
Transportation user charge proposals:
Extend 5% tax on air passenger transportation
Tax transportation of air freight at 5%
Credit existing 2 cents per gallon aviation gas tax receipts to general fund
Extend 2 cents per gallon rate to jet fuels
Increase rate to 3 cents per gallon on fuel used in general aviation
Tax fuel used on inland waterways at 2 cents per gallon
Credit receipts from tax on gasoline used in motor boats to general fund (for use in
new land and water conservation fund)_
Subtotal, transportation proposals
Total, excise taxes
Other user charges:
Land and water conservation fund A
Patent fees
Other
•_
Rural Electrification Administration revolving fund
Total

Fiscal year
1965
-$3,100
458
269
480
80
455
1,742

22
47
3

27
213
1,955
38
11
2
-178
-1,272

A
In addition, the proposed legislation transfers $60 million of receipts from sales of surplus real
property to the new land and water conservation fund.

THE BUDGET FOR FISCAL YEAR 1965
Table 13. SOURCES OF RECEIPTS (in millions of dollars)
[Note.— Estimates include effect of proposed legislation.]
Description

1964
estimate

1963
actual

1965
estimate

ADMINISTRATIVE BUDGET FUNDS
Individual income taxes:

38,719
14,269

38,200
14,900

35,500
16,700

52,988
-5,400

53,100
-5,600

52,200
-3,700

47,588

47,500

48,500

22,336
-757

24,600
-900

26,700
-900

21,579

23,700

25,800

2,468
825

2,555
850

2,700

102
21

105
22

885
30
110
22

3,442

3,560

3,747

2,011
16
50
1
2

2,075
17
51
1
2

2,140
17
52

2,079

2,146

2,212

Taxes on documents, other instruments, and playing cards:
Issues of securities,, stock and bond transfers, purchases
of foreign securities, and deeds of conveyance
Playing cards

140
9

160
9

190
10

Total, taxes on documents, other instruments, and
playing cards

149

169

200

2,497
74
1,560
303
225
399

2,612
80
1,725
349
240
411

2,665

Withheld
Other
Gross individual income taxes
Refunds
Net individual income taxes
Corporation income taxes

Refunds
Net corporation income taxes.

Excise taxes:
Alcohol taxes:
Distilled spirits (domestic and imported)
Beer
Rectification tax
Wines (domestic and imported)
Special taxes in connection with liquor occupations

Total, alcohol taxes
Tobacco taxes:
Cigarettes (small)
_ .
Manufactured tobacco (chewing, smoking, and snuff)
Clears flame)
Cigarette papers and tubes
_
Allother
Total, tobacco taxes

Manufacturers' excise taxes:
Gasoline
Lubricating oils
Passenger automobiles
Automobile trucks, buses, and trailers
Parts and accessories for automobiles _
Tires, inner tubes, and tread rubber

1
2

83
1,800

350
255
422

RECEIPTS
Table 13. SOURCES OF RECEIPTS (in millions of dollars)—Continued
Description

1963
actual

1964
estimate

1965
estimate

ADMINISTRATIVE BUDGET FUNDS—Continued
Excise taxes—Continued
Manufacturers' excise taxes—Continued
Electric, gas, and oil appliances

68
36

73
40

78
44

232

248

283

61
75
25
4
24
16
2
9

66
70
26
4
29
17
2
10

71
70
28
4
35
18
2
11

5,610

6,002

6,219

Retailers' excise taxes:
Jewelry
Furs
Toilet preparations
Luggage, handbags, wallets, etc

182
29
158
74

196
32
180
78

205
34
202
83

Total, retailers' excise taxes.

444

486

524

365
516
234

380
540
106

113
99
43
40
6
71
7
100
20
5
2

125
110
47
44
6
80
7
102
23
5
2

415
585
20
98
8
8
47
132
115
53
50
6
85
8
104
26
6
2

1,620

1,577

1,768

Electric light bulbs

Radio and television receiving sets, phonographs, phonograph records, and musical instruments
Mechanical refrigerators, quick-freeze units, and selfcontained air-conditioning units
Business and store machines
Photographic equipment
Matches
_
Sporting goods, including fishing rods, creels, etc
Firearms, shells, and cartridges
Pistols and revolvers
Fountain and ballpoint pens, mechanical pencils. __
Total, manufacturers' excise taxes.

Miscellaneous excise taxes:
Toll telephone service, telegraph and teletypewriter service, wire mileage service, etc
General telephone service
Transportation of persons
Transportation of persons by air
Transportation of freight by air
Fuel used on inland waterways

Jet fuel
Diesel fuel used on highways
Use tax on certain vehicles
Admissions, exclusive of cabarets, roof gardens, etc
Cabarets, roof gardens, etc
Wagering taxes, including occupational taxes
Club dues and initiation fees
Leases of safe deposit boxes
Sugar tax
Coin-operated amusement and gaming devices
Bowling alleys and billiard and pool tables
All other miscellaneous excise taxes
Total, miscellaneous excise taxes.

THE BUDGET FOR FISCAL YEAR 1965
Table 13. SOURCES OF RECEIPTS (in millions of dollars)—Continued
Description

1965

1964

1963

ADMINISTRATIVE BUDGET FUNDS—Continued
Excise taxes—Continued
Undistributed depository receipts and unapplied collections.
Gross excise taxes. _. ._
Refunds:
Applicable to budget accounts
Applicable to trust accounts
Transfer to Highway trust fund

_
_
_

_.
__

Net excise taxes
Estate and gift taxes
Refunds
Net estate and gift taxes
Customs
Refunds

Net customs
Miscellaneous receipts:
Miscellaneous taxes _.
Seigniorage
Bullion charges

___

Fees for permits and licenses:
Admission permits and fees
.. _
Business concessions _
_ _ _
Immigration, passport, and consular fees
Patent and copyright fees
Registration and filing fees
Landing fees, airports
Miscellaneous fees for permits and licenses
Total, fees for permits and licenses
Fines, penalties, and forfeitures:
Fines, penalties, and forfeitures—agriculture laws. _
Fines, penalties, and forfeitures—customs, commerce,
and antitrust laws
Forfeitures of unclaimed money and propertyProceeds from old series currency, act of June 30, 1961 _.
Other fines, penalties, and forfeitures
Total, fines, penalties, and forfeitures

-19

13.410

13,921

14.715

-89
-126
-3.279

-93
-129
-3,478

-99
-125
-3.504

9.915

10,221

10.987

2.187
-20

2,360
-25

2.765
-25

2,167

2.335

2.740

1,241
-35

1.310
-35

1,495
-35

1,205

1,275

1,460

5
45
1

5
50
2

5
55
1

6
6
24
9
8
2
46

8
7
26
16
8
2
16

33
7

101

119

4
11
58
4

28
21

9
3
18

73
4

RECEIPTS
Table 13. SOURCES OF RECEIPTS (in millions of dollars)—Continued
1963
actual

Description

1964
estimate

1965
estimate

ADMINISTRATIVE BUDGET FUNDS—Continued
Miscellaneous receipts—Continued

Interest:
Interest on loans to Government-owned enterprises
Interest on domestic loans to individuals and private
organizations
Interest on foreign loans and deferred payments
Miscellaneous interest collections
Total, interest

Dividends and other earnings:
Deposits of earnings, Federal Reserve System
Payment equivalent to income taxes
Miscellaneous dividends and earnings
Total, dividends and other earnings
Rents:
Rent
Rent
Rent
Rent

of land
on Outer Continental Shelf lands
of real property, not otherwise classified
of equipment and other personal property

Total, rents
Royalties:
Royalties on Outer Continental Shelf lands
Miscellaneous royalties on natural resources
Royalties on patents and copyrights

___ _

Total, royalties
Sale of products:
Sale of timber and other natural land products
Sale of minerals and mineral products
Sale of power and other utilities
Sale of publications and reproductions
Sale of miscellaneous products and byproducts
Total, sale of products
Fees and other charges for services and special benefits:
Fees and other charges for administrative, professional,
and judicial services
__
Fees and other charges for communication and transportation services
Charges for subsistence, laundry, and health services
* Less than one-half million dollars.
700-000 <

499

669

583

91
157
18

95
169
19

107
167
22

765

952

880

828
22
10

880
11
10

910
16
11

860

917

937

14
359
25
38

15
174
29
36

262
33
33

437

255

343

7
116
*

9
122

10
126
*

124

132

137

161
9
189
5
5

173
10
209
6
6

185
10
224
6
6

370

404

431

10
5

11
5

13
6

THE BUDGET FOR FISCAL YEAR 1965
Table 13. SOURCES OF RECEIPTS (in millions of dollars)—Continued
Description

1963
actual

1964
estimate

1965
estimate

ADMINISTRATIVE BUDGET FUNDS—Continued
Miscellaneous receipts—Continued

Fees and other charges for services and special benefits—Con.
Fees and other charges for services provided to the District of Columbia __
_ _
Fees for general governmental services
Other fees and charges

4
13
61

6
15
67

5
15
78

Total, fees and other charges for services and special
benefits

110

125

142

139
73

75
227
76

75
299
101

263

377

474

467

397

193

187
398
6
17

36
108
7
15

49
118
7
8

1,076

563

375

5
10
154
5
26

46
5
63
5
35

34
6
60
5
26

200

155

131

4,436

4,054

4.114

-1

4,435

4,053

4,113

-513

-684

-600

86,376

88,400

93,000

Sale of Government property:
Sale of real property..
..
Sale of equipment and other personal property
Sale of scrap and salvage materials
Total, sale of Government property
Realization upon loans and investments:
Repayments from States and other public bodies
Repayments of domestic loans to individuals and private
organizations
Repayment of foreign loans
Repayment on miscellaneous recoverable costs
Miscellaneous repayments on loans and investments
Total, realization upon loans and investments
Recoveries and refunds:
Recoveries under military occupation
Recoveries of excess profits and costs
Recoveries under foreign aid programs
Refunds of erroneous payments
Miscellaneous recoveries and refunds
Total, recoveries and refunds
Gross miscellaneous receipts
Refunds.

Net miscellaneous receipts
[nterfund transactions
Total, administrative budget receipts

RECEIPTS
Table 13. SOURCES OF RECEIPTS (in millions of dollars)—Continued
1964
estimate

1963
actual

Description

1965
estimate

TRUST FUNDS
Employment taxes:

Federal old-age and survivors insurance trust fund
Federal disability insurance trust fund.__
Railroad retirement account
_
Unemployment trust fund
Refunds
Net employment taxes.

12.479
1.005
572
948
-143

14,353
1,062
617
900
-155

14,700
1,089

14,862

16,777

16,996

3.009

2,900

2,825

3,405
-126

3,607
-129

3,629
-125

3,279

3,478

3,504

1,878

1,959

1,923

512
70
191
105
364
14
210
8

529
67
216
132
419
6
209
8

553
65
229
134
464
6
207
8

1,477

1,589

1,669

494

501

499

950

990

1,290

62
341
1,842

38
367
2,051

2,183

3,195

3,446

3,934

28,193

30,651

31,349

-505

-488

-477

27,689

30,163

30,872

682

711
-186

Unemployment tax deposits by States:

Unemployment trust fund
Excise taxes:

Highway trust fund
Refunds
Net excise taxes
Federal employees and agency payments for retirement:

Federal employees retirement funds
Interest on trust funds:

Federal old-age and survivors insurance trust fund
Federal disability insurance trust fund
Unemployment trust fund
Railroad retirement account
Federal employees retirement funds
Highway trust fund
Veterans life insurance funds
Indian tribal funds
Other trust funds

__ _

Interest on trust funds
Veterans life insurance premiums, etc.:

Veterans life insurance funds
Miscellaneous trust fund receipts:

Military assistance advances
Indian tribal funds _
District of Columbia
Other trust fund receipts...

__
__

_
_.. .

Net miscellaneous trust fund receipts
Subtotal, trust fund receipts
(nterfund transactions
Total, trust fund receipts

_
_

36
425

PART 4

THE FEDERAL PROGRAM
BY FUNCTION

ANALYSIS OF FEDERAL ACTIVITIES BY FUNCTION
This part of the budget describes the recommended program of
the Government for fiscal year 1965 in terms of the 12 major functions served.
These recommendations result from a critical review of priorities
and costs. They provide for meeting the Nation's needs and responsibilities at home and abroad with a maximum of efficiency and
economy.
Total Federal payments to the public in fiscal year 1965 are estimated at $122.7 billion. This includes not only expenditures in the
administrative budget but also outlays of Government trust funds,
which finance such programs as social security and interstate highway construction:
The $97.9 billion of administrative budget expenditures estimated
for fiscal year 1965 is $0.5 billion below the estimate for the current
fiscal year. This has been accomplished despite growing workloads,
increases in pay costs, and built-in and uncontrollable increases for
a number of activities. Within the total, reductions have been made
wherever possible, enabling selective increases for a number of domestic programs vitally needed to meet human needs and encourage economic growth.
About 80% of the estimated administrative budget expenditures in
1965 will be devoted to our national defense, international, and space
objectives, and for veterans and interest payments which represent
the continuing costs of the Nation's past wars. These activities
represent a substantially smaller proportion of total Federal cash payments, 63%, because most of the trust fund expenditures are related
to other programs.
Of the remaining Federal payments to the public, more than threefifths is for health, labor and welfare programs, primarily trust fund
benefit payments under old-age and survivors insurance, unemployment insurance, and other retirement systems financed through special taxes.
In addition to the expenditures estimated in the 12 functional categories, the budget includes special allowances, totaling $1.1 billion in
1965, for programs to combat poverty, for civilian pay adjustments,
and for contingencies.
Of this total, $250 million is provided as an allowance for expenditures under a new program to attack poverty in the Nation. These
funds will be used, in conjunction with funds from existing and elsewhere proposed legislation, as the resources for locally initiated community action programs in urban and rural areas. Federal, State,
70

THE FEDERAL PROGRAM BY FUNCTION

and local programs—relating primarily to education and training,
health, job opportunities, housing,, and welfare services—will be
focused on the objective of striking at the root causes of poverty.
Many of the other legislative proposals in this budget will also contribute to the attack on poverty, in particular the recommendations
for improvements in education and youth employment opportunities.
The Federal agencies concerned are already giving special attention
to promoting the long run economic development of the Appalachian
region. A comprehensive program is now being planned jointly by
the various Federal agencies and the 10 States involved, which will
include further Federal assistance in developing the economic base of
the region.
An additional allowance of $544 million is provided in the expenditure estimate for 1965 for proposed legislation to make salary rates of
Federal civilian employees more nearly comparable with pay scales
in the private economy, along the lines recommended last year.
Finally, an estimate of $300 million is included to cover contingencies
that may arise during fiscal 1965.
NATIONAL DEFENSE
The very substantial investments which we have made to improve
our military forces in recent years are proving their worth. The
Nation has amassed forces which, in conjunction with those of our
allies, enable us to cope successfully with any intrusion into areas of
our vital national interest. Events have made clear to all our ability
to make swift, effective, and deliberate responses to acts of aggression,
large or small, in any part of the world.
Along with these achievements have come important management
improvements in the defense establishment which are resulting in
substantial cost reductions and related savings. Accordingly, in
1965 we will be able to further strengthen our defense programs while
at the same time making significant reductions in total expenditures.
National defense outlays are estimated to decline to $55.2 billion in
1965 from the $56.0 billion estimated for fiscal year 1964.
Department of Defense.—Military expenditures of the Department of Defense are estimated at $51.2 billion in 1965, a decrease of
$1.1 billion from the current year. New obligational authority of
$50.9 billion is proposed for the Department, compared with $51.0
billion for the current year.
This budget provides for further gains in combat effectiveness and
continued maintenance of active forces in a high state of readiness.
The reduction in defense expenditures is not based on any sacrifice in
essential military capability. Instead, it reflects the diminishing
need fo# further large additions to force levels and stocks of supplies

THE BUDGET FOR FISCAL YEAR 1965
NATIONAL DEFENSE
[Fiscal years. In millions]
Pay ments to the

Recommended
new obligational
1964
1965 authority
estimate estimate for 1965
public

Program or agency

1963
actual
Administrative Budget Funds:
Department of Defense—Military

Military personnel:
Present programs
Proposed legislation
Operation and maintenance
Procurement
Research, development, test, and evaluation.
Military construction
Family housing
Civil defense.._
Military assistance
Revolving and management funds
Subtotal, Department of Defense, military.
Atomic energy
Defense-related activities:
Stockpiling of strategic and critical materials.
Expansion of defense production
Selective Service System
Emergency preparedness activities
Subtotal, administrative budget.

$13,000 $14,180 $14,499
11,874
16,632
6,376

1,144
427

11,870
16,337
6,943

1,107

161
12,278
14,785
6,580
1,056
660
150

$14,597
172
12,396
13,756
6,722
1,168

711
358
1,000

205

680
150

1,721
-1,401

1,400

1,200

-367

-169

49,973
2,758

52,300
2,800

51,200
2,735

50,880
2,693

22
-57
34
25

16
126
37
18

17
-38
42
23

43
18

52,755

55,297

53,979

153,652

674
5

860
7

1,225
6

1,325
6

679

867

1,231

1,331

Trust Funds:

Military assistance.
Other
Subtotal, trust funds.
Intragovernmental transactions and other adjustments
(deduct)
Total.
1

153
53,429

56,011

55,211

Compares with new obligational authority for 1963 and 1964 as follows:
Administrative budget funds: 1963, $54,323 million; 1964, $53,837 million.
Trust funds: 1963, $892 million; 1964. $1,689 million.

and equipment. It also reflects a stringent screening of existing
and proposed programs, and increasing economies under the Department's cost reduction program. Savings achieved in 1963 under the
cost reduction program totaled over $1 billion. Further actions this
year and in fiscal 1965 are expected to raise the*rate.of ultimate
annual savings to $4 billion.

THE FEDERAL PROGRAM BY FUNCTION

The estimated strength and composition of the active forces at the
end of fiscal year 1965 compared with the 2 preceding years and with
1961 are shown in the accompanying table.
SUMMARY OF ACTIVE FORCES
Actual,
June 30,

Description

1961

Military personnel (in thousands):
Army
Navy
Marine Corps
Air Force
Total, Department of Defense
Selected military forces:
Strategic retaliatory forces:
Intercontinental ballistic missiles (squadrons):
Minuteman
Titan
Atlas
Polaris submarines
Strategic bombers (wings):

B-52
B-58
B-47

___.

Continental air and missile defense forces:
Manned fighter interceptor squadrons
Interceptor missile squadrons (BOMARC)
Army air defense missile battalions A
General purpose forces:
Army divisions (combat ready)
Army surface-to-surface missile battalions
Army air defense missile battalions. ^
Army special forces groups
Warships:
Attack carriers
Antisubmarine warfare carriers
Nuclear attack submarines
Other
Amphibious assault ships
Carrier air groups (attack and ASW)
Marine Corps divisions/aircraft wings
Air Force tactical forces squadrons
Airlift and sealift forces:
Airlift aircraft (squadrons):
C-130 through C-141
C-l 18 through C-l 24

Troopships, cargo ships, and tankers

Actual,
June 30,
1963

Estimated
June 30,
1964

June 30,
1965

858
627
177
820

975
664
190
869

972
670
190
855

974
678
190
839

2,482

2,698

2,687

2,681

4
5

2
7
13
12

12
12
13
22

16
12
9
32

13
1
20

14
2
13

14
2
10

14
2
5

42
7

42
8
31/ 2

40
8
26/2

40
6

16
38
31%
7

16
38
32%
7

26%
3
15
9
13
328
110
28
3
93

15
9
16
326
132
28
3
109

15
9
23
320
133
28
3
110

15
9
27
325
135
28
3
113

16
35
99

26
31
101

34
27
99

38
)7
99

A
Decrease reflects phaseout of Nike-Ajax and transfer of Nike-Hercules battalions to Army
National Guard.

THE BUDGET FOR FISCAL YEAR

1965

The financial requirements of the Department of Defense can best
be described in terms of the total obligational availability proposed
for each of the major military programs. Total obligational availability for any year is the sum of new obligational authority granted
by the Congress for that year plus obligational authority granted in
prior years which is not required to complete prior }^ear programs.
SUMMARY OF THE DEPARTMENT OF DEFENSE BUDGET PROGRAM
[Fiscal years.

In billions]
Total obligational availability

Major military programs

Strategic retaliatory forces
Continental air and missile defense forces
General purpose forces
Airlift and sealift forces
___
Reserve forces
Research and development (not included elsewhere) _
General support
_
_
Retired pay
Civil defense
Military assistance
Proposed legislation

t963

1964

$8.4
1.9
17.9
1.4
1.8
5.1
13.1
1.0
.1
1.6

$7.3
1.9
18.2
1.3
2.0
5.4
13.9
1.2
.1
1.1

$5.3
1.8
18.5
1.4
2.0
5.5
14.8
1.4
.4
1.1
.2

52.2

52.5

52.4

51.1

51.0
1.5

50.9
1.5

Total obligational availability.
Of which:
New obligational authority
Prior year funds

1965

Strategic retaliatory forces.—Our strategic retaliatory forces now
consist of more than 600 operational long-range ballistic missiles—
Atlas, Titan, Minuteman, and the submarine-launched Polaris—
together with a SAC bomber force of about 1,000 aircraft, including
those on air alert training missions and about 500 on quick-reaction
ground alert. The present and planned forces are, and will continue to be, vastly superior to the Soviet nuclear force. Most of the
land-based missile force has been hardened and dispersed so that,
with the highly invulnerable Polaris force at sea and the continuously
alerted strategic aircraft, we are clearly capable of destroying an
aggressor even if forced to absorb a surprise first strike.
Under these conditions, further substantial numerical increases in
our strategic forces above those already planned would soon be of
diminishing value. The 1965 budget provides for another increment
of an improved type of Minuteman missile, bringing to 1,000 the
number of Minutemen approved through fiscal 1965. In addition,
emphasis is being placed on improving the effectiveness of the stra-

THE FEDERAL PROGRAM BY FUNCTION

tegic missile and bomber forces and their responsiveness to command
authority.
The 1965 budget provides for an extensive missile improvement
program, modifications to earlier versions of the Minuteman and
Polaris missiles to increase their range and versatility, and a special modification program for the B-52 manned bomber designed to
ensure the continued effectiveness of this aircraft in future years.
The 1965 budget also provides for further development and procurement of postattack command and control systems, continued research
on advanced ICBM systems, and design studies on intercontinental
strike aircraft.
Total obligational availability for the strategic retaliatory forces
in 1965 is estimated to decline by $2.0 billion from 1964. The reduction is possible mainly because funding for the planned fleet of 41
Polaris submarines is being completed in 1964 and fewer additional
Minuteman missiles are included for 1965. Savings will also result
from the continued phase-out of the B-47 medium bomber force and
of the older, unprotected Atlas missiles, which are particularly expensive to maintain.
Continental air and missile defense forces.—Our continental defense
forces are intended to provide warning of attack, to defend command
centers and retaliatory forces, and to reduce casualties in the population and damage to industry. Total obligational availability for
these forces in 1965 is estimated to decline by $0.1 billion from 1964.
The strategic threat to the United States is shifting from manned
bombers to ballistic missiles. Moreover, a larger portion of the Soviet
missile forces is being deployed in submarines at sea or otherwise
protected. Accordingly, the 1965 program provides for continued
development work on a priority basis for the Nike X antimissile
system along with continued exploration of advanced antiballistic
missile defense concepts. Research will also proceed on various
missile warning and space surveillance systems.
The vulnerability of our defenses against bomber attack will be
reduced by the further dispersal of interceptor aircraft and NikeHercules surface-to-air missile batteries, as well as by the further
progress expected in improving the survivability of control systems
for interceptors. The Ballistic Missile Early Warning System will
continue to provide notice of missile attack.
General purpose forces.—In the past several years there has been
a great improvement in the ground, sea, and air forces designed
principally for limited war, and the Nation now possesses the kinds
of forces needed to deal with such a contingency. These expanded
capabilities have been achieved not only by increases in the size of
our forces, but also by a buildup of combat stocks, increases in mobility

THE BUDGET FOR FISCAL YEAR 1965

and readiness, and by modernization of the weapons inventory. The
gap which once existed between requirements for equipment and
supplies and actual inventory levels has already been significantly
narrowed, and the 1965 budget provides for further gains. Total
obligational availability for the general purpose forces is estimated
at $18.5 billion in 1965, $0.3 billion more than in 1964.
The funds provided in this budget will maintain the present 16
Army divisions and the 3 Marine division/aircraft wings, and will
provide for continued testing of an air assault division concept.
Army and Marine Corps inventories of modern combat weapons and
equipment, including aircraft, missiles, and helicopters, will be further
augmented.
The Navy general purpose force program provides for the construction of 47 new ships, including 6 nuclear attack submarines
and a submarine tender, 16 destroyer escorts for antisubmarine
warfare, 7 fleet support ships, 10 amphibious assault ships, and 1
destroyer tender. Including all major programs, this budget provides for construction of 53 new ships and 7 major conversions.
The 1965 budget also provides for further procurement of both the
fighter and reconnaissance versions of the modern F-4 aircraft for
the Navy and Air Force; development and production of the VAL, a
new Navy light attack aircraft; construction of tactical aircraft
shelters in overseas areas; and procurement of additional conventional
ordnance and equipment. Development of the advanced F - l l l
tactical fighter aircraft for the Navy and Air Force will continue in
1965.
Airlift and sealift forces.—Modernization and expansion of the airlift forces during the past several years have greatly increased our
ability to deploy forces rapidly to trouble spots all over the world.
A dramatic example of this was operation "Big Lift," in which the
personnel of a combat-ready Army division were airlifted from Texas to
West Germany in 63 hours and united with prepositioned equipment.
Total obligational availability of $1.4 billion estimated for this
program in 1965 is $0.1 billion more than in 1964. The 1965 budget
provides for procurement of additional C-141 jet transports, procurement of a cargo ship designed for rapid loading and unloading of
military equipment, and modernization of two tankers. In addition,
funds are provided for a continuation of the program of large-scale
airlift exercises, and for initial design studies on a new jet cargo aircraft.

THE FEDERAL PROGRAM BY FUNCTION

Reserve forces.—To the extent that the reserve components of the
Army, Navy, Marine Corps, and Air Force can respond in a timely
manner, the need for active forces is lessened. The major reorganization of the Army Reserve and Army National Guard instituted last
year has helped to increase the readiness and potential combat
effectiveness of these forces.
In 1965, total obligational availability to support these forces is
estimated at $2.0 billion.
RESERVE AND NATIONAL GUARD PERSONNEL
Actual
Component

Army Reserve
Army National Guard _
Naval Reserve
Marine Corps Reserve
Air Force Reserve
Air National Guard
Total

June 30,
1963
_

Estimated
June 30,
1964

June 30,
1965

236,985
360,714
119,611
46,257
58,607
74,325

264,000
376,000
126,000
45,500
61,000
75,000

285,000
395,000
126,000
45,500
61,000
75,000

896,499

947,500

987,500

The paid drill training strength of the Army reserve components
authorized and programed for the end of fiscal years 1963 through
1965 is 700,000. However, it is estimated that the strengths which
can actually be attained in 1964 and 1965 are below this amount, as
was the case in 1963. The funds provided in this budget would
support the lower levels anticipated.
Research and development.—Total obligational availability proposed
for this program category, which includes all research and development of weapons and other systems not included in the other program
categories, is $5.5 billion, $0.1 billion more than in 1964. Work will
be completed on a number of systems and will be canceled on some
other programs, such as the Dynasoar manned spacecraft project.
The Dynasoar project will be replaced by a broader and more promising program for exploring problems and potentials of manned military operations in space, including development of a manned orbiting
laboratory.

THE BUDGET FOR FISCAL YEAR 1965

General programs of basic research and exploratory development,
which provide the building blocks for future weapons, will continue
to be expanded in 1965. Projects included in the 1965 program range
from weapons for guerrilla warfare to sophisticated space programs.
Examples are: the Titan III, a large booster rocket for the space
program; the Nike X ballistic missile defense system; vertical takeoff
fighter and transport aircraft; penetration aids for our ballistic
missiles; antisubmarine warfare weapons; and the Medium-Range
Ballistic Missile.
General support.—This program includes all costs which cannot be
allocated meaningfully among the other major programs, such as the
financing of individual training and education, communications, the
National Military Command System, logistic support, medical
services, military housing, command operations, and certain other
departmentwide activities. Much of this program is influenced by
other program decisions; for example, the costs of medical care and
recruit training are directly related to the size of the military forces.
Total obligational availability required for this program in 1965 is
$14.8 billion, compared with $13.9 billion in 1964. This increase
results from military and civilian pay increases required by law and
higher costs for such functions as the Defense Atomic Support
Agency and Army communications.
Funds are provided for determining the effects of underground
nuclear weapons tests and for maintaining readiness to test in the
atmosphere in case of violation of the limited nuclear test ban treaty.
Civil defense.—An effective civil defense program is an important
element of our total defense effort. It aims at the achievement of a
nationwide fallout shelter system. The 1965 program is based on
enactment of legislation similar to that proposed last year to provide
Federal assistance for fallout shelters in public buildings, schools,
hospitals, and other nonprofit institutions. Total obligational availability of $0.4 billion is proposed for the civil defense program for 1965,
compared with $0.1 billion in 1964.
The 1965 program also provides for continued work on systems to
warn the population of an attack, equipment for monitoring the level
of radioactivity, construction of protected regional centers for emergency governmental operation, training and education for emergency
preparedness, research and development, financial assistance to States,
and procurement of provisions for fallout shelter spaces. The nationwide shelter survey, under which 104 million spaces have already been
identified, will continue.

THE FEDERAL PROGRAM BY FUNCTION

Military assistance.—The military assistance program is based on
the recognition that the security of the United States is interdependent
with that of the rest of the free world. In the 1965 budget, funds for
military assistance have been included under the Department of
Defense, reflecting a new emphasis on closer coordination between
this program and the Department's other regular missions.
Under the military assistance program, equipment, training, and
related services are provided for the armed forces of more than 60
allied and friendly nations. The program also helps to maintain our
access to overseas bases, which allows optimum deployment of our
own military forces. To replace the forces of our allies with comparable and similarly deployed American troops and facilities would
cost us much more in terms of both manpower and expenditures.
The Western European nations in the North Atlantic Treaty
Organization now supply almost all the financial support for their
own military forces and also provide- military assistance to others.
Continuing military assistance from the United States to these
European countries is limited to the fulfillment of prior commitments
and a modest amount of training, essential to the attainment of U.S.
objectives. Today, in response to the changing nature and direction
of the Communist threat, approximately 70% of the total program
goes to nine key countries on the periphery of the Soviet Union and
Communist China—Greece, Turkey, Iran, India, Pakistan, Thailand,
Vietnam, arid the Republics of China and Korea.
In the less developed nations of Latin America and Africa, our
military assistance is directed primarily toward strengthening internal
security and helping indigenous forces in civic action projects.
Recommended total obligational availability for the military assistance program in 1965 is $1.1 billion, the same as in 1964.
Proposed legislation.—-Further adjustments will be needed in military
compensation rates to keep military pay abreast of changes in pay
scales in the private economy. To cover the costs of these adjustments, the budget includes $143 million of new obligational authority
for 1965, on the assumption that the Congress will enact the necessary
legislation in time for it to become effective on October 1, 1964.
The Congress is again requested to enact legislation to:
• Provide comparable subsistence standards among the military
services by establishing a single, uniform ration.
• Modernize and make more uniform the statutes of military
services governing various aspects of officer career management in
order to aid in attracting and retaining qualified officer personnel.

THE BUDGET FOR FISCAL YEAR 1965

• Authorize the military departments to offer an elective 2-year
Reserve Officer Training Corps course leading to a commission in
addition to the presently authorized 4-year program.
• Revise the present system for appointments to the Military,
Naval, and Air Academies to provide more equitable opportunities
for those wishing to enter these schools.
• Authorize disposal of the Government-owned communications
facilities in Alaska to private enterprise for operation and development under appropriate regulatory supervision.
Atomic energy activities.—Expenditures by the Atomic Energy
Commission in 1965 are estimated to be $2.7 billion, down $65 million
from 1964. Increases for research and development programs for
peaceful uses of atomic energy will be more than offset by a reduction
of $126 million in the procurement of uranium concentrates and the
production of special nuclear materials. The lower rate of production
of these materials (plutonium and enriched uranium) is consistent
with anticipated military and civilian requirements arrived at following extensive review by the Atomic Energy Commission and the
Department of Defense.
Nuclear weapons.—Expenditures for the development and production of nuclear weapons in 1965 will remain at the levels attained in
1964. Underground testing of nuclear weapons will continue in
1965, along with preparations to achieve and maintain readiness to
resume testing in the atmosphere, in the event that the limited nuclear
test ban treaty is terminated.
Peaceful uses of atomic energy.—Expenditures in 1965 for the development of civilian nuclear power are estimated at $234 million, an
increase of $5 million from 1964. Increased emphasis will be placed
on reactors which produce more fuel than they consume ("breeders"),
and efforts will be continued to develop certain other advanced reactors. However, there will be a decline in Federal expenditures for
established types of light water-cooled reactors which are now coming
into increasing use in private utility systems. Continued emphasis
will be given to the nuclear safety program, including construction
of a third experimental facility.
Programs to develop the use of nuclear energy in space exploration
will be continued in 1965. Work will continue on the SNAP program
to develop compact nuclear electric power units for satellites and space
vehicles, with particular emphasis on units fueled by radioisotopes.

THE FEDERAL PROGRAM BY FUNCTION

The Kover nuclear rocket program will be reoriented to groundbased research and engineering, with deferral of flight objectives.
There will be continued growth in 1965 in basic research in the
physical and biomedical sciences. Particularly noteworthy in the
physical sciences program will be the start of construction of the
world's finest research reactor at Argonne National Laboratory near
Chicago, which will serve many scientific disciplines. Research
activities in the biomedical sciences will grow in several areas, including fallout studies.
Work on the peaceful application of nuclear explosives under
Project Plowshare will be concentrated in 1965 on the development
of suitable devices for excavation purposes.
Defense-related activities.—Expenditures for the various defenserelated activities of agencies other than the Department of Defense
and the Atomic Energy Commission are expected to decline by $153
million in 1965. The decrease is in defense production activities, reflecting proposed legislation to eliminate requirements for further
interest payments on borrowings from the Treasury for certain previous investments in defense production programs.
Expenditures for the Selective Service System are estimated to rise
by $5 million in 1965 due to a more than one-third increase in registration and classification workloads, as larger numbers of young men
reach age 18 and become subject to registration. Special procedures
are planned to provide for examination of 18-year-olds as part of a
national effort to help identify and overcome the disabilities which
result in rejection of so many of our youth for service in the Armed
Forces.
INTERNATIONAL AFFAIRS AND FINANCE
The international activities of the U.S. Government foster understanding by educational, cultural, and economic exchange with other
nations, and by providing information about this country and its
objectives. They also promote world stability by supplying the
critical margin of economic resources and technical knowledge that
will help developing nations to attack poverty and discontent, advance
toward economic independence, and maintain their political integrity.
New obligational authority of $3.6 billion is requested for international affairs and finance activities for 1965, an increase of about
$600 million over 1964. Administrative budget expenditures are
estimated to be $2.2 billion in 1965, about $200 million less than in
1964. This reduction primarily reflects greater anticipated sales of
certificates of participation by the Export-Import Bank.
700-000 <

THE BUDGET FOR FISCAL YEAR 1965
INTERNATIONAL AFFAIRS AND FINANCE
[Fiscal years.

In millions]
Payments to the
public

Program or agency

1963
actual

1964
1965
estimate estimate

Recommended
new obligational
authority
for 1965

Administrative Budget Funds:
Economic and financial programs:

Agency for International Development:
Development loans
Development grants
Alliance for Progress
Supporting assistance
Contingencies and other
Subtotal
International financial institutions
Peace Corps
Export-Import Bank
Food for Peace (Public Law 480, title II)
Other

$760
245
260
494
284

$790
230
325
415
340

$850
225
405
335
335

$925
225
550
335
357

2,043
122
42
-392
216
10

2,100
112
73
-650
246
16

2,150
62
90
-856
244
16

2,392
268
115

155
46

160
74

172
56

176
54

340
2
3
1

282
7
3
23

283
9
3
19

294
11
3
2

2,588

2,447

2,248

13,591

M30

390

-30

2,242

2,452

2,377

264
12

Foreign information and exchange activities:

U.S. Information Agency
Department of State
Conduct of foreign affairs:

Department of State
U.S. Arms Control and Disarmament Agency
Tariff Commission
Foreign Claims Settlement Commission
Subtotal, administrative budget
Trust Funds...

„

Intragovernmental transactions and adjustment for net
cash issuances or withdrawals by international financial
institutions (deduct)

Total
1

Compares with new obligational authority for 1963 and 1964, as follows:
Administrative budget funds: 1963, $5,693 million; 1964, $2,994 million.
Trust funds: 1963, $34 million; 1964. $68 million.

Agency for International Development.—The Agency for International Development administers and coordinates economic assistance programs in less developed countries where political stability,
resistance to aggression, or accelerated economic or social progress is
of importance to the United States. Expenditures for these programs
are estimated to be $2.2 billion in 1965, an increase of $50 million over

THE FEDERAL PROGRAM BY FUNCTION

1964. New obligational authority of $2.4 billion is requested for AID
for 1965. This will make the total 1965 obligational availability
equivalent to the amount provided for 1964 including unobligated
funds carried forward from the prior year.
In determining the allocation of its funds, the Agency for International Development is carefully weighing U.S. objectives and applying increasingly rigorous standards in evaluating recipient country
performance and the availability of funds from other sources. Procurement procedures insure that more than 80% of AID commitments now finance procurement of goods and services produced in
the United States. Improved management will help the Agency to
reduce its employment by 800 during 1965.
Agency (or International Development - Program Trends

|j|l||||||

Loans as a Percent of Total Assistance

11111111

jjjjj|

Percent of Total Goods Financed

llli

and Purchased in U.S.

Development loans and grants.—Increasingly, our commitments for
development assistance are focused in a relatively small number of
countries which are displaying the serious discipline essential to
economic development; in such instances, we are attempting to encourage and sustain the acquired momentum by providing long-term
assistance on favorable terms until alternative sources of financing
become available. Where evidence of the necessary discipline does
not exist, our assistance is being reduced or withheld.
The bulk of our long-term assistance is in the form of loans repayable
in dollars. Expenditures for loans are estimated to rise in 1965 by
$60 million. Complementing these loans is technical assistance financed primarily through development grants. This assistance helps
provide the human skills, education, and institutions that are basic
to social and economic progress. Expenditures for such grants are

THE BUDGET FOR FISCAL YEAR 1965

estimated at $225 million in 1965, approximately the same amount
as estimated for 1964.
Alliance for Progress.—The principles of social and economic reform,
which underlay the creation of the Alliance for Progress less than 3
years ago, are taking root in the countries of Latin America. Though
economic and social change occurs only slowly, these countries are
able to use our development assistance more effectively with each
passing year. To encourage and accelerate passage of these countries
through the crucial early stages of progress, Alliance for Progress
development assistance is being concentrated in those countries
which show evidence of adopting internal policies conducive to
economic development.
This budget includes new obligational authority of $550 million for
the Alliance for 1965. In addition, the lending capacity of the InterAmerican Development Bank will be augmented, and resources will
be provided through the Export-Import Bank, the Food for Peace
program, and the Peace Corps. Together, these funds will enable us
to maintain our current level of contribution and will fulfill our commitment to progress in this hemisphere.
Other AID programs.—Our foreign assistance program provides supporting assistance grants where necessary to maintain political and
economic stability in critical areas of the world, and to meet certain
other security objectives. Expenditures for supporting assistance in
1965 will be $335 million, $80 million less than in 1964, as more countries become able to use development loans instead of grants.
In 1965, the Agency for International Development will continue
to make voluntary contributions for international programs which
complement our long-range bilateral efforts, such as the United Nations Special Fund and Technical Assistance program and the Indus
Basin Development program administered by the International Bank
for Reconstruction and Development.
Other economic and financial programs.—To advance further
the concept of partnership on which the Alliance for Progress is based,
the United States is proposing to strengthen and expand the activities
of the Inter-American Development Bank. Legislation will be proposed for the enlargement of the resources of the Bank used for longterm, low-interest loans, under arrangement subject to negotiations
with the Bank's members.
The new obligational authority recommended for 1965 for international financial institutions includes $206 million as the first install-

THE FEDERAL PROGRAM BY FUNCTION

ment of a $412 million increase in the U.S. subscription to callable
capital stock of the Inter-American Development Bank. No expenditure is contemplated under this increase, but the move will facilitate
the Bank's issuance of its securities in financial markets in the United
States and abroad.
The fifth and final installment of $62 million also requested in this
budget for the International Development Association fulfills our
initial pledge to finance, along with 15 other industrial countries,
the development loans provided on favorable terms by this institution.
An authorization request of $312 million is now pending before the
Congress for U.S. participation in a second round of pledges, recently
negotiated; the first expenditure under the new pledge will not be
required until fiscal year 1966.
Continuing its efforts to increase U.S. exports, the Export-Import
Bank will expand its loans to foreign borrowers for the purchase of
U.S. exports and also its guarantees of the private financing of U.S.
exports. Under the Bank's highly successful arrangement with the
recently formed Foreign Credit Insurance Association, more than 70
private insurance companies participate in insuring a rapidly growing
volume of private U.S. export financing against both commercial and
political risks. In 1965, the Bank is expected to have net receipts
of $856 million, about $200 million more than in 1964, reflecting
primarily an increase in the sale to private buyers of certificates of
participation in its portfolio.
In recognition of the growing overseas demand for the services of
Peace Corps volunteers and the continued increase in applications
for service in the Corps, the number of volunteers is expected to
rise from 10,500 in 1964 to 14,000 in 1965, requiring an estimated
increase in expenditures of $17 million over the current year's level.
Grants of surplus agricultural commodities under the Food for
Peace program are distributed for disaster relief and also made available to support economic development projects. This part of the
program provides milk and other nutritious foods to millions of school
children around the world and makes possible more adequate diets for
workers on development projects. It is expected to continue in
1965 at about the same level as in 1964.
Foreign information and exchange activities.—Primary responsibility for improving mutual understanding with other countries
and for informing them about our aims and attitudes rests with the
Department of State and the. United States Information Agency.
Expenditures for the exchange activities of the Department of
State are estimated to decline by $18 million in 1965, reflecting pri-

THE BUDGET FOR FISCAL YEAR 1965

cnarily a nonrecurring grant of $25 million in the previous year for the
establishment of a Japan-America Foundation. The quality and
impact of educational and cultural exchange activities will be
improved.
The United States Information Agency will carry forward its programs in 1965 with no increase in personnel. Nevertheless, the
Agency will continue to expand and improve its television programing for Latin America, its radio broadcasts to Africa, and its worldwide motion picture activities.
Attention will be devoted to informational materials in support of
counterinsurgency efforts in certain Far East countries. New obligational authority is being requested for 1965 to complete one new Voice
of America radio facility and to modernize another.
Conduct of foreign affairs.—The Department of State continues
to face increasingly complex foreign affairs responsibilities. Four
years ago, diplomatic and consular posts were maintained in 82
countries; today they are maintained in 111 countries. As more new
nations gain their independence, this upward trend will continue.
Other workloads are also expected to rise. For example, in 1965 a
10% increase over 1964 is expected in the number of passports and
nonimmigrant visas issued.
Nevertheless, employment levels and total expenditures for the
Department's conduct of foreign affairs are estimated to be virtually
the same in 1965 as in 1964. While increased expenditures are estimated for support of the Foreign Service, including improved communications and needed office and housing facilities overseas, they
will be offset by a decrease in contributions to international organizations.
The budget includes amounts to pay the costs of U.S. membership
in the United Nations and other international organizations which
are vital elements in the multilateral approach to peace, stability,
and progress. During the past year, new arrangements were approved
by the General Assembly, which reduce the U.S. share of U.N. peace
and security costs; the estimates in this budget are based on those
arrangements.
The U.S. Arms Control and Disarmament Agency, while making
small reductions in its staff, will expand its contract research program
in 1965. Its main work will continue to be the research needed for
the formulation and presentation of U.S. positions at international
disarmament meetings.
Expenditures of the Foreign Claims Settlement Commission are
estimated to be unusually high in fiscal years 1964 and 1965 because

THE

FEDERAL PROGRAM BY

FUNCTION

of special payments of war claims to the Philippines. These payments are scheduled for completion in December 1964.
SPACE RESEARCH AND TECHNOLOGY
The programs of the National Aeronautics and Space Administration are designed to maintain American supremacy in space and to
demonstrate this supremacy by achieving a manned landing on the
moon in this decade. Besides manned space flight these programs
include the exploration of space by unmanned spacecraft; the development of satellite technology for meteorological, communications, and
other applications; and the advancement of basic research and technological development on which both our aeronautical and space efforts
depend.
SPACE RESEARCH AND TECHNOLOGY
[Fiscal years.

In millions]

Program

Administrative Budget Funds:
Manned space Right _ _
Unmanned investigations in space
Meteorology, communications, and other space applications _
_
_
_
Other research, technology, and supporting operations
Subtotal, administrative budget.
Trust Funds
Total .

_ .

1963
actual

Recommended
new obligational
authority
1964
1965
estimate estimate for 1965

$1,533
484

$2,898
645

$3,370
670

105

445

752

853

98
893

2,552

•4,400
*

4,990
2

* 5.304
*

2,552

4,400

4,992

15,304

Payments to the
public

$3,580
733

*Less than one-half million dollars.
Compares with new obligational authority for 1963 and 1964 as follows:
Administrative budget funds: 1963, $3,673 million; 1964, $5,241 million.
Trust funds: 1963, $1 thousand; 1964, $2 million.

A total of $5.3 billion in new obligational authority for 1965 is
recommended to support these programs. In addition, a supplemental appropriation of $141 million is requested for 1964, to regain
in part the slippage in the manned lunar landing program resulting
from reductions in 1964 appropriations below the amount requested
in the budget. The amount requested for 1985 is $63 million more
than the amount now estimated for 1964. This is a smaller increase
than in any year since this Nation launched its space program, made

THE BUDGET FOR FISCAL YEAR 1965

possible by a detailed review of all requirements, careful allocation of
resources, and improved program management over the past year.
Expenditures for the space program in 1965 are estimated at slightly
less than $5.0 billion, which is $590 million more than the estimate
for 1964. The increase is mainly to fulfill obligations already incurred,
as payments are made for equipment, facilities, and services contracted
for in prior years and delivered in 1965.
Manned space flight.—Manned space flight activities, which account
for over two-thirds of the budget of the National Aeronautics and
Space Administration, are focused on the top priority objective of
achieving a manned lunar landing in this decade. The launch vehicle,
spacecraft, and supporting development programs required to meet
this objective will provide the broad technological capability for
engaging in other space activities in the years ahead.
Reductions in the appropriations for 1964 from the amounts requested have delayed initial flight testing in the Saturn and Apollo
programs. These reductions will be partially offset by the proposed
1964 supplemental appropriation. Other steps, such as a cutback
in the number of planned flights and adoption of a new approach of
testing complete space vehicles—instead of testing separate stageswill help to make up the delays in meeting the goal of landing men
on the moon.
The level of activity in support of the 3-man Apollo lunar spacecraft development program will reach its peak during 1965 with 13
flight spacecraft in production by the end of the year. The Saturn V
rocket program will be proceeding rapidly along its development cycle
in preparation for launching the Apollo spacecraft, and will account
for about $850 million of the estimated 1965 expenditures. This
rocket, standing 37 stories high, will be able to place in orbit a payload about 10 times heavier than that of the Saturn I, the largest
rocket known to be in existence today.
The Saturn I first stage has successfully flown four times in four
attempts. With the addition of a high-energy upper stage, large
payloads will be orbited in 1965 to pave the way for manned Apollo
flights. By the end of the year, the Saturn IB rockets, which will
launch the manned Apollo spacecraft for earth orbital flights, will be
undergoing acceptance testing in preparation for delivery to the John
F. Kennedy Space Center for initial flight tests.
Manned flights of the 2-man Gemini spacecraft will be conducted
during 1965 to add to the Nation's store of spaceflight experience and
to continue the training and preparation of astronauts for flights to
the moon.

THE FEDERAL PROGRAM BY FUNCTION

Unmanned investigations in space.—Unmanned investigations in
space will continue in 1965 by means of large observatory satellites
able to conduct a variety of experiments. These satellites are the
most economical for the amount of scientific data collected in relation
to the number of spacecraft launched. As further economy measures,
the number of observatory satellites ordered has been trimmed to
meet optimum production schedules, and incentive contracting has
been instituted.
Unmanned explorations of the moon preparatory to manned landings will be continued with additional flights of the Ranger spacecraft,
which will televise the moon's surface as it approaches. Emphasis
will be placed on the development of the more advanced Surveyor
spacecraft, which can "soft land" instruments on the moon, now
that the liquid hydrogen fueled Centaur upper stage rocket has undergone a successful flight test. The first Surveyor flights are scheduled
for 1965. Development of the Lunar Orbiter Spacecraft, which will
examine the surface of the moon from lunar orbit, will also move
forward.
Mariner space flights, one of which was so successful in exploring
the planet Venus, will be continued for investigations of the planet
Mars, with the next flight scheduled to take place during fiscal 1965.
Meteorology, communications, and other space applications.—Additional research and development flights using the successful Tiros

THE BUDGET FOR FISCAL YEAR 1965

spacecraft will be conducted in 1965 in support of the operational
meteorological satellite system of the Weather Bureau. Experiments
with the larger Nimbus satellite will be continued.
In the communications field, Relay and Syncom satellites will be
in orbit during the coming year for civil and military experiments.
The Relay low-altitude satellite can receive and retransmit television
and telephone signals from one ground station to another as it moves
around the earth. The Syncom high-altitude satellite is placed in
orbit above the earth so that it is synchronized with the earth's
speed and stays directly over the same spot on the earth's surface.
Development of a new advanced satellite for experiments in space
technology related to a variety of space applications, such as communications, meteorology, and space science, will be continued in 1965.
Other research, technology, and supporting operations.—The supporting programs on which space operations and long-term improvements
in the space program depend will continue in 1965. These programs
include the NASA worldwide tracking system, research and development in aeronautics and space technology, and support of college
and university programs in the space sciences, including the training
of candidates for advanced degrees.
AGRICULTURE AND AGRICULTURAL RESOURCES
Agricultural productivity continues to increase. Total farm output
in calendar year 1963 was 12% above the 1957-59 average and represented a new record high for the sixth consecutive year. Although
the rise in crop output since 1960 has been limited by acreage reductions under the feed grain and wheat programs, rising yields for these
and other crops have accompanied such reductions. Crop harvests
in 1963 were greater than in 1960, despite the 5% decline in the acreage
used for crops and an 11% reduction in total agricultural man-hours.
Nonetheless, during the past 2 years the carryover of wheat has been
cut from a high of 1.4 billion to 1.2 billion bushels and the carryover
of feed grains from 85 million to 62 million tons.
The longrun upward trend, in agricultural productivity has contributed heavily to the Nation's economic growth. But it is also a
factor contributing to the current unsatisfactory incomes of many
of our farmers and the continued high budgetary costs of our farm
programs. While too large a part of our productive resources is still
devoted to agriculture, we have derived important advantages from the
resulting excess farm production by using agricultural commodities to
raise the level of living of low-income people in our own Nation and to
provide needed food assistance to people of other nations. Farm

THE FEDERAL PROGRAM BY FUNCTION
AGRICULTURE AND AGRICULTURAL RESOURCES
[Fiscal years.

In millions]

Program or agency

Payments to the
public
1963
actual

Administrative Budget Funds:
Farm income stabilization and Food for Peace:
Price support, supply, and purchase programs:
$2,857
Present programs
Proposed legislation
63
National Wool Act
Food for Peace (Public Law 480, titles I, III, and IV).. 1,824
74
International Wheat Agreement.
100
Transfer of commodities to supplemental stockpile
112
Removal of surplus agricultural commodities
Conservation reserve and cropland conversion:
309
Present programs
Proposed legislation
77
Sugar Act
102
Other
.'
Subtotal
Financing rural electrification and rural telephones:
Present programs
Proposed legislation
Financing farming and rural housing:
Farmers Home Administration:
Present programs
Proposed legislation
Farm Credit Administration
Agricultural land and water resources:
Soil Conservation Service
Agricultural conservation program payments (including CCC loan)
Other
__.
Research and other agricultural services:
Present programs.,
Proposed legislation for inspection fees

Recommended
new obligational
authority
for 1965

1964

1965

$1,480

$1,540
-230

$1,124

2,168
101
86
271

1,676

1,951

81
174

32
120
174

314
33
93

120

210
42
88
114

208
40
88
122

5,517

4,746

3,750

3,938

342

388
-169

394
-178

440
-347

296

280

86
43

103

-1

182

192

198

219
3

221
5

220
5

225

391

409

433
-45

443
-49

6,954

6,070

4,907

Trust Funds (mainly federally sponsored farm credit institutions)

507

475

442

Intragovernmental transactions and other adjustments
(deduct)

194

205

283

7,266

6,340

5,065

Subtotal, administrative budget

Total

'"Less than one-half million dollars.
Compares with new obligational authority for 1963 and 1964, as follows:
Administrative budget funds: 1963, $7,070 million; 1964, $6,385 million.
Trust funds: 1963, $25 million; 1964, $28 million.

3
204

5,014
128

THE BUDGET FOR FISCAL YEAR 1965

legislation designed to improve our present farm programs and promote more effective use of present rural resources will be proposed to
the Congress early in this session.
Payments to the public for agricultural programs in 1965 are estimated at $5.1 billion, down $1.3 billion from 1964. The reduction
reflects mainly substantial declines in anticipated expenditures for
(1) farm price support and Food for Peace programs financed by the
Commodity Credit Corporation, (2) the rural housing loan program
of the Farmers Home Administration, and (3) the meat, poultry, and
grain inspection programs. Part of the reduction is also the result
of increased efficiency and reduced personnel requirements. Department of Agriculture employment is estimated to decline from 116,800
at the end of 1964 to 115,376 by the end of the fiscal year 1965.
Farm income stabilization and Food for Peace.—Expenditures for
farm income stabilization and Food for Peace, accounting for 74%
of total payments for agriculture and agricultural resources, are
estimated to be $996 million less in fiscal year 1965 than in 196 4.
Most of the decrease results from (1) estimated lower unit costs of
agricultural commodities, primarily wheat, shipped under the Food
for Peace program and the International Wheat Agreement, and (2)
anticipated budgetary savings from proposed legislation for cotton and
dairy products.
Legislative proposals designed to make cotton available at lower
prices to domestic users, while still providing essential income support
to cotton producers, are now pending before the Congress. The
Administration has supported the objectives of this legislation. It is,
however, possible to accomplish these goals at a reduced budgetary
cost, and proposals to this effect will be transmitted to the Congress
shortly. There are several pending legislative proposals before the
Congress, supported by the Administration, which would improve
the dairy program. The combined effect of the legislative proposals
for cotton and dairy products would reduce the 1965 net budget
expenditures of the Commodity Credit Corporation by $230 million.
Titles I and II of Public Law 480 (Agricultural Trade Development
and Assistance Act) expire on December 31, 1964, and extension is
recommended. Title I, under which sales of agricultural commodities
are made for foreign currencies, is the principal authority for and
accounts for most of the expenditures for the Food for Peace program.

THE FEDERAL PROGRAM BY FUNCTION
Agriculture and Agricultural Resources Administrative Budget

Farm Income Stabilization and Food for Peace

Titles I, I I I , and IV of Public Law 480 are classified in the budget
under agriculture and agricultural resources. Title II, under which
grants of food and other agricultural commodities are made to needypeople abroad, is classified under international affairs and finance.
The following table brings together the total expenditures under
Public Law 480 and shows the amount for each title separately:
FOOD FOR PEACE EXPENDITURES
[Fiscal years. In millions]
Public Law 480
Title I (sales for foreign currencies)
Title II (grants abroad, primarily for emergency famine relief) __
Title 111 (grants through private welfare agencies)
Title IV (long-term credit sales)
Total, Public Law 480

1963
actual

1964
estimate

1965
estimate

$1,483
216
261
80

$1,609
246
334
225

$1,081
244
298
297

2,040

2,414

1,920

Note.—The decline from 1964 to 1965 reflects principally lower unit costs of wheat shipped under
the program. The volume of commodities shipped is expected to remain at the same level as in 1964.

THE BUDGET FOR FISCAL YEAR 1965

Rental contracts will expire during 1964 on 7.4 million acres of
cropland that was placed in the conservation reserve between 1956
and 1960 and during the 1-year extension in 1963. Under this program, farmers contracted to retire cropland from production for
specified periods. Legislation is being proposed to establish an
expanded cropland conversion program under which the emphasis is
on permanent rather than temporary shifts of cropland to less intensive uses. This approach would provide a lasting contribution to
adjustment of agricultural production to available markets. The
budget includes new obligational authority of $50 million for this
program in 1964 and $50 million to continue the program in 1965;
of these requests, $40 million is under the proposed expanded program
for these years and $10 million is under existing legislative authority.
Financing rural electrification and rural telephones.—Funds recommended for the Rural Electrification Administration will permit
electrification loan commitments of $300 million in 1965, the same
level as in 1964. Loan commitments of $85 million are estimated in
1965 for the telephone program. In addition, a contingency reserve
of $65 million is included to be available for both loan programs, to
be used to the extent necessary. Under new procedures now being
developed by the Rural Electrification Administration for review of
loans for generation and transmission of electricity, it is expected that
local cooperatives and commercial power suppliers will be able to
reach agreement more frequently. As a consequence, the volume of
Federal generation and transmission loans in 1964 and 1965 is estimated to be lower than in 1963.
New obligational authority recommended for the electrification
and telephone programs in 1965 reflects anticipated early enactment
of proposed legislation to authorize use of collections on outstandingelectrification and telephone loans to help finance new loans. Under
this legislation, estimated collections of $169 million in 1964 and $178
million in 1965 will be available to help finance the 1965 loan programs,
thereby reducing the amount of new obligational authority required.
Financing farming and rural housing.—The Farmers Home Administration deals with unsatisfactory farming, housing, and other
rural conditions that can be improved through the use of direct Federal
loans and insurance of private credit. The substantial reduction of

THE FEDERAL PROGRAM BY FUNCTION

$152 million in estimated budget expenditures for these programs from
1964 to 1965 reflects mainly proposed legislation which would largely
replace direct Federal loans with insured private credit in the financing
of the rural housing program. This action is part of a Governmentwide policy of using private rather than public funds in credit programs
to the maximum extent feasible. The 1965 estimates for the Farmers
Home Administration provide for an enlarged program to finance
rural housing for the elderly and for continuation of the pilot rural
renewal program.
Agricultural land and water resources,—Expenditures for these programs are estimated to increase moderately in 1965. The estimates
provide for continuing a new pilot program, started in 1964, under
which loans and grants are made to rural communities to promote
conservation and development of land and water resources on an
areawide basis. Funds recommended for the upstream watershed
protection program will permit about 36 new starts in 1965, as well as
continuation of work on projects already underway; a small expansion
is provided for the Great Plains conservation program.
Expenditures in 1965 under the agricultural conservation program
are estimated at $220 million, excluding administrative expenses, based
on the $220 million advance authorization by the Congress for the 1964
program year. An advance authorization of $120 million is proposed
for the 1965 program year. This amount will be adequate to permit the
Government to share with farmers the cost of high priority conservation practices.
Research and other agricultural services.—Control of pesticides will
be an important part of the research program in both 14)64 and 1965.
Ways will be sought to avoid pesticide hazards, the side effects of disease and pest control will be evaluated, and pesticide regulation
will be improved. In addition, construction at Beltsville, Md., of a
long needed National Agricultural Library is expected to begin in 1965.
Greater workloads in inspection activities will result from continued
increases in the production of meat and poultry products. The
number of establishments in which Federal meat inspection is performed is expected to rise from 1,696 in 1964 to 1,760 in 1965. To
further the general policy that beneficiaries of special Government
services should be charged for such services, legislation will be pro-

THE BUDGET FOR FISCAL YEAR 1965

posed to finance directly the full cost of meat, poultry, and grain
inspection activities through a system of fees. Collections from these
fees are estimated at $49 million in 1965.
NATURAL RESOURCES
The United States is fortunate in having abundant natural resources. These resources must be wisely managed and developed to
meet the needs of a growing population and an expanding economy.
Estimated payments to the public of $2.7 billion in 1965 for natural
resources will provide for continued investments in resource conservation and development—investments which will contribute to our
future economic growth.
Land and water resources.—A large part of the $1.8 billion of estimated 1965 expenditures for land and water resources will advance
projects started in prior years to supply water to our cities, industries,
and farms; abate water pollution; prevent the ravages of floods;
generate electric power; improve navigation; and increase recreational
opportunities. In addition, the budget provides for an orderly program of new construction starts.
The new obligational authority proposed for 1965 for the Corps of
Engineers includes appropriations of $16 million to start construction
of 34 projects with an estimated total Federal cost of $378 million.
The program for the Bureau of Reclamation provides for 10 new
starts (including 3 small project loans) estimated to cost a total
of $134 million, and requiring appropriations of $7 million for 1965.
Enactment of pending legislation is recommended to provide uniform
standards and- obtain appropriate cost sharing for the recreation and
fish and wildlife aspects of water resources projects of these two
agencies.
Coordinated planning for the orderly and progressive development
of water and related land resources in a number of river basins will be
continued in 1965 by the Departments of the Army, Interior, Agriculture, and Health, Education, and Welfare. The Senate recently
approved legislation which would further promote the coordination of
planning between Federal and State agencies and authorize limited
Federal grants to assist State planning. Early enactment of this
legislation is recommended.
The Department of the Interior will continue its research program
to find ways of reducing the cost of converting saline water to fresh
water. Legislation has been recommended to provide a new program

THE FEDERAL PROGRAM BY FUNCTION
NATURAL RESOURCES
[Fiscal years.

In millions]

Program or agency

Payments to the
public
1963
actual

Recommended
new obligational
authority
1965
1964
estimate estimate for 1965

$1,072

$1,075

$1,133

$1,152

344
37
109
50
9
53

335
50
109
55
11
57
12

324
60
110
56
12
68
13

324
69
116
61
13
51
13

1,699

1,720

287
16

338
15

321
18

338
19

112

122

104

123
15
110

118
40
114

47
24
73

48
60
76

49
64

49
60
82

2,352

2,483

2,588

i 2,637

67
55

69
69

54
53

44
55

122

138

107

MOO

2,456

2,611

Administrative Budget Funds:
Land and water resources:

Corps of Engineers.
Department of the Interior:
Bureau of Reclamation
Power marketing agencies
Bureau of Indian Affairs
Bureau of Land Management
Office of Saline Water
Tennessee Valley Authority
Federal Power Commission
International Boundary and Water Commission and
other
Subtotal

1,817

Forest resources:

Forest Service
Bureau of Land Management
Recreational resources:

Present programs
Proposed legislation
Fish and wildlife resources
Mineral resources:

Bureau of Land Management
Bureau of Mines and other
General resource surveys and administration_

Subtotal, administrative budget
Trust

Funds:

Indian tribal funds.
Other
Subtotal, trust funds.
Intragovernmental transactions and other adjustments
(deduct)
TotaL

2,688

Compares with new obligational authority for 1963 and 1964, as follows:
Administrative budget funds: 1963, $2,447 million; 1964. $2,588 million.
Trust funds: 1963. $134 million; 1964. $109 million.

700-000 0—64

THE BUDGET FOR FISCAL YEAR 1965

of grants to States to stimulate further research to help us make the
most effective use of our water resources.
Funds appropriated for 1964 are available to begin construction of
the interconnection between the electric power systems of the Pacific
Northwest and Pacific Southwest after enactment of Pacific Northwest
marketing area legislation and after the Secretary of the Interior has
negotiated with non-Federal interests. Federal power marketing
systems will be strengthened in 1965 to meet increased requirements in
areas served by Federal hydroelectric projects, including the provision
of a high-voltage power distribution system for the Bonneville Power
Administration.
Funds are included in the budget to enable the Federal Power
Commission to step up its examination of interstate wholesale electric
power rates. Substantial progress has been made by the Commission
in reducing its backlog of natural gas cases, involving the ordering of
over $500 million in refunds of excess charges.
The Tennessee Valley Authority will carry forward the development
of natural resources in the valley in cooperation with State, local, and
private groups. Development of the Land Between the Lakes
recreation demonstration area will proceed. In 1965 TVA will
proceed with the construction of steam-electric power units started in
prior years to meet the growing demand for power in its marketing
area. These power facilities are financed with revenues from sales of
power and with borrowings from the public.
The budget includes funds for the management and development of
477 million acres of public domain lands and the administration of
mineral leasing on the submerged lands of the Outer Continental
Shelf. It provides additional funds to rehabilitate burned-over lands
and to improve the maintenance of roads and buildings.
Indian affairs.—Since 1961, economic development programs for
Indians have resulted in the establishment of 25 industrial plants on or
near Indian reservations. These will provide about 4,000 additional
jobs. To help Indian people achieve further economic and social
development, the 1965 budget continues emphasis on elementary,
secondary, and adult education, and adult vocational and on-the-job
training. Educational assistance will be provided for 57,000 children
and 12,000 adults in 1965, compared with assistance to 48,000 children
and 8,000 adults in 1963.
To help meet the growing need for credit to develop Indian resources, legislation will be proposed to authorize Federal guarantees
of loans by private lenders and to increase the authorization for the
existing direct loan program.

THE FEDERAL PROGRAM BY FUNCTION

Forest resources.—Expenditures for forest resources, estimated at
$339 million iri 1965, will provide for construction of access roads,
reforestation, and development of recreation areas on the 186 million
acres of the national forest system; these activities will provide substantial employment opportunities in rural areas. Access roads are
needed to allow an increase in the amount of timber cut; over 11
billion board feet of timber are expected to be harvested in national
forests in 1965, compared with 10 billion board feet in 1963. Similarly,
more recreation facilities are essential for the expected 155 million
visits to national forests in calendar year 1965, compared with 125
million in calendar year 1963.
An addition to the Forest Products Laboratory in Madison, Wis.,
will be constructed in 1965. This will permit expanded research on
wood utilization techniques and standards, resulting in benefits to the
lumber industry, landowners, and consumers.
Recreational resources.—Expenditures for recreational resources
under existing legislation are estimated to remain at about the current
year's level in 1965. Most of these expenditures are for the management and development of our 26-million-acre national park system.
A total of 102 million visits to the parks is expected in calendar year
1965, an increase of 9% over 1963.
A rapidly growing population, increased urbanization, and added
leisure time emphasize the importance of preserving additional seashore and other areas with important recreation potential. Accordingly, legislation already recommended should be enacted to authorize
further Federal acquisition of several such areas, as well as to protect
our remaining wilderness areas.
Legislation is also needed to authorize Federal grants to States for
planning, land acquisition, and development of recreation facilities.
This legislation would provide for user charges so that direct beneficiaries of Federal recreation areas will help defray the costs.
Fish and wildlife resources.—The estimated expenditures of $110
million in 1965 for these activities include amounts for accelerating
research on the effects of pesticides, for supporting the national
oceanographic research effort, and for other studies to aid the fishing
industry. The budget also provides for the development and operation of 100 fish hatcheries and 298 wildlife refuges and for the acquisition of wetlands for migratory waterfowl; these activities benefit 25
million sport fishermen and 15 million hunters.
Mineral resources and general resource surveys.—Efforts

will con-

tinue in 1965 to find ways of increasing the utilization of the Nation's

100

THE BUDGET FOR FISCAL YEAR 1965

coal supply, including the conversion of coal to gaseous and liquid
forms that may economically be used to satisfy our growing energy
requirements. Added efforts will also be made to find methods of
reducing health and safety hazards in mining operations.
Topographic surveys and mapping, basic to many private and
public development programs, will be extended. By the end of 1964,
69% of the United States will have been surveyed for topographic
maps at a standard scale of 1 mile to the inch or larger; an additional
2.5% will be surveyed during 1965. The budget also provides for
increased studies on the composition of the upper mantle of the earth's
crust. These studies will add to our knowledge of the formation of
mineral deposits and contribute to the development of techniques for
locating deep-lying mineral bodies.
Helium is important to our defense and space programs and for
scientific, industrial, and medical uses. The Federal Government
operates five plants and contracts with four private firms for the purchase of helium extracted from natural gases for future sale and use.
If not extracted, this limited and nonreplaceable resource is wasted
as a noncombustible part of natural gas used for fuel. About 787
million cubic feet of helium are expected to be produced by Government plants in 1965, and 3.7 billion cubic feet will be produced for the
Government by private contractors. Of this total, about 3.9 billion
cubic feet will be conserved for the Nation's future needs. COMMERCE AND TRANSPORTATION
The Federal Government provides a wide range of financial, technical, and other aids to private business, particularly to small enterprises and those in areas of persistent unemployment. It also helps
strengthen our economy by improving transportation and communication facilities, regulating certain types of business activity, and encouraging competition where necessary to protect the public interest.
In 1965, payments to the public for these purposes will total an
estimated $6.6 billion. Over half of this total represents trust fund
expenditures for Federal-aid highways, which are estimated to increase
by $99 million over the 1964 level.
Administrative budget expenditures of $3.1 billion are estimated to
be $82 million below the estimate for 1964. Federal loans and grants
to aid redevelopment of depressed areas will increase because of
previous commitments, and minimum essential expansions are
proposed for Federal aviation, weather activities, and certain other
programs. However, these increases will be more than offset by reductions in outlays for the temporary public works acceleration program begun in fiscal 1963, for the postal service, and for various other
programs.

101

THE FEDERAL PROGRAM BY FUNCTION
COMMERCE AND TRANSPORTATION
[Fiscal years.

In millions]
Payments to the
public
1964
estimate

1965
estimate

Recommended
new obligational
authority
for 1965

$85
41
98
142
1

$92
63
129
141

$101
65
148
141

$103
46
150
7

39
62

98
365

130
245

222
5

726
82

790
85

829
83

751
84

364
297

350
351

336
380

357
423

-1

1
41
770

1
45
546

2
42
475

36
551

Subtotal, administrative budget

2,843

3,151

3,069

12,833

Trust Funds:
Department of Commerce:
Highway trust fund
_
Other
Federal Deposit Insurance Corporation.

3,017
21
-161

3,551
22
-180

3,650
18
-202

3,805
6

2,877

3,394

3,466

13,811

-57

-54

5,777

6,601

6,588

Program or agency

1963
actual

Administrative Budget Funds:
Advancement of business:
Department of Commerce:
Weather Bureau
.
National Bureau of Standards
_
_ __
Other aids to business
Small Business Administration
Other agencies
Area redevelopment:
Department of Commerce
Public works acceleration program
Aviation:
Federal Aviation Agency
Civil Aeronautics Board—subsidies
Water transportation:
Department of Commerce
Coast Guard
_
Panama Canal Co
St. Lawrence Seaway
_ __
Highways (mainly on national forests and public lands) __
Postal service
Regulation of business

Subtotal, trust funds
(ntragovernmental transactions and other adjustments
(deduct)
_
Total

•

'"Less
than one-half million dollars.
1
Compares with new obligational authority for 1963 and 1964, as follows:
Administrative budget funds: 1963. $4,020 million; 1964, $2,926 million.
Trust funds: 1963. $3,605 million; 1964. $3,731 million.

Advancement of business.—Responsibilities of the Department
of Commerce and the Small Business Administration for advancing
business enterprise include export promotion, aids to civilian research

102

THE BUDGET FOR FISCAL YEAR 1965

and technology, weather and census information, and loans and
special services to small businesses.
To foster the expansion of U.S. exports, the 1965 budget provides
$22 million in new obligational authority, $4 million more than in
1964, to strengthen the export promotion program of the Department
of Commerce. These funds will be used to encourage private firms
to increase their exports, expand the number of exporting firms,
provide more trade centers in foreign countries, and enlarge the
number of American firms exhibiting their products at commercial
trade fairs overseas.
Maintenance of the traditional U.S. leadership in technology is
vital both to economic growth at home and effective competition in
world markets. Increases of $9 million in new obligational authority
are requested in this budget to expand the activities of the Bureau
of Standards, the Patent Office, and the Office of Technical Services
so that better services can be provided to business and industry.
The rapid growth of Government-sponsored research has increased
the importance of making the results of this research available to the
interested public. Accordingly, the Commerce Department's role
as a clearinghouse for a great variety of technical information is
being strengthened. For example, funds are provided for the Office
of Technical Services to assume responsibility for distribution of all
unclassified research reports by the Department of Defense—a step
which is expected to bring economies as well as improve service. In
addition, the Bureau of Standards is establishing a National Standard
Reference Data System to make verified data in the physical sciences
conveniently available to science and industry. By accomplishing
the time-consuming evaluation of information at a central point, research and engineering work should be made more efficient throughout
American industry. In a few years, savings by Government contractors alone should exceed the additional budgetary costs.
During the past year, the responsibility for planning and coordinating the Government's extensive meteorological activities has been
centralized in the Department of Commerce in order to avoid duplicating expenditures for weather operations, supporting research, and
equipment. A review of the meteorological satellite programs of the
Weather Bureau and the National Aeronautics and Space Administration has disclosed that during the next few years operating requirements can be met satisfactorily with a less sophisticated system than
had previously been planned. By terminating the plan to launch a
number of Nimbus satellites, in their present design, for use in routine
weather operations, and using instead a simplified spacecraft similar
to the successful NASA Tiros, the Weather Bureau will be able to
hold annual costs over the next several years roughly $20 million
below the level previously estimated.

THE FEDERAL PROGRAM BY FUNCTION

103

Provision is made in the budget for continued improvement in
1965 of the statistics used by both Government and private groups
to measure our economic and social development, as discussed in
Special Analysis J. Work on the 5-year economic censuses covering
manufacturing, mineral industries, transportation, and the distribution and service trades will be almost completed in 1965. Enumeration of the Census of Agriculture will occur early in the fiscal year,
requiring a temporary net increase of $5 million in expenditures by the
Bureau of the Census to $36 million. This latter census has been
taken regularly since 1840 and provides valuable benchmark data
needed to understand changes occurring in agriculture.
Although net expenditures of the Small Business Administration
are estimated to remain level in 1965, the agency will continue to
expand the financial and other assistance it provides the small business community. This will be accomplished by using funds already
available and funds which will become available from repayments
and sales of earlier loans. The level of new commitments for small
business loans will be increased to $258 million in 1965, $31 million
more than in 1964. Commitments to small business investment
companies and State and local development companies are estimated
at $126 million in 1965, an increase of $20 million over 1964. At the
same time, measures to simplify administrative procedures are encouraging increased participation by private lenders, thus reducing
the need for Federal assistance.
Area redevelopment.—The Department of Commerce, with the
assistance of other major departments and agencies, provides a broad
range of Government aids to help depressed areas rebuild their economic base and thus create additional permanent employment.
Expenditures for the area redevelopment program enacted in May
1961 will increase from $98 million in 1964 to $130 million in 1965,
primarily for loans to finance construction of industrial and commercial facilities. The loans, grants, and technical assistance financed
from prior authority and from the new obligational authority of $222
million recommended for 1965 will help provide 150,000 workers with
permanent employment in these economically depressed areas. The
1965 budget assumes enactment of legislation currently pending in
the Congress to increase the maximum authorization on the various
types of Federal assistance; these additional authorizations are required to carry out the program planned in 1965.
No provision is made in the budget for extension of the temporary
accelerated public works piogram initiated in fiscal year 1963. However, an appropriation of $5 million remaining under the legislative
authority is requested for contingencies and to administer ongoing
projects. Expenditures for projects already approved are estimated

104

THE BUDGET FOR FISCAL YEAR 1 9 6 5

at $245 million in 1965, down $120 million from 1964. These include
over 2,400 waste treatment plants and water supply facilities, more
than 1,000 street construction and repair projects, 281 hospitals and
health facilities, and other useful public works.
Transportation policies.—Major steps have been taken to improve and coordinate the planning of Federal transportation programs which should pay dividends in better transportation and reduced costs to carriers, transportation users, and taxpayers. Several major legislative revisions of national transportation policy and
programs which are pending before the Congress would further these
objectives. They include: (1) amendments to exempt from minimum rate control carriers of bulk commodities, agriculture and fishery products, and intercity passengers; (2) various proposals to protect shippers, encourage rate and service experiments, foster throughroutes and joint rates, and improve the effectiveness of regulation;
and (3) Federal assistance for rehabilitation and expansion of mass
transportation systems in urban communities, discussed under
Housing and Community Development.
In fairness to the taxpayers and to encourage efficient use of Government-financed transportation facilities, the substantial special
benefits received by travelers and shippers from Federal expenditures
on aviation and inland waterways should be paid for at least in part
by the users of these facilities. Accordingly, recommendations have
been made for increased transportation user charges; these recommendations are discussed in Part 3 of this budget.
Aviation.—The Federal Aviation Agency is continuing to expand
and modernize the national system of air traffic control and navigation
aids. The use of manpower is being improved and obsolete or unnecessary facilities and services are being eliminated. Partly as a result
of these economies, the recommendation for $751 million in new
obligational authority for 1965 is below the 1964 appropriation for
the Agency's regular programs.
The joint industry-Government program to develop a civil supersonic transport aircraft for which $60 million was appropriated in
1964, is proceeding on schedule. Design proposals have been received
from prospective manufacturers and will shortly be evaluated for
technical and economic feasibility. Expenditures for this program
are estimated to increase in 1965 by $42 million. All other expenditures of the FAA, taken together, are estimated to decline slightly
from 1964 to 1965, despite increases in air traffic and the related
workloads.

THE FEDERAL PROGRAM BY FUNCTION

105

Water transportation.—Expenditures by the Department of Commerce for ocean shipping will decrease by an estimated $15 million in
1965, primarily because operating subsidy payments in 1964 completed
liquidation of an accumulation of prior year obligations which will
not recur. However, the new obligational authority recommended
is up by $12 million over 1964, principally for the ship replacement
program, including increased provision of automated equipment
designed to reduce operating subsidies in future years. Starts on
17 new ships will be made as part of the continuing program to replace obsolete vessels in the subsidized fleet. Efforts to revitalize
the U.S. merchant marine will continue, with particular attention to
labor-management relations and application of new technology, in
order to improve the competitive position of the U.S. fleet and thus
reduce over the long run the need for Government subsidies.
Expenditures by the Coast Guard will rise by an estimated $29
million in 1965, primarily because of fixed commitments for increased
military pay and related personnel costs and larger outlays necessary
for maintenance of vessels. New obligational authority of $90 million,
an increase of $39 million over 1964, is requested for acquisition, construction, and improvement of Coast Guard facilities; the request
represents the 1965 installment of a long-range program to accelerate
replacement of obsolete vessels and expand air rescue facilities.
Highways.—Federal highway expenditures are financed almost entirely from taxes on highway users which are deposited in the highway
trust fund. They are financed on a pay-as-you-build basis with the
level of revenues controlling expenditures. Trust fund expenditures
will increase by $99 million in 1965 to an estimated $3,650 million.
About three-quarters of this total is for the Interstate Highway System,
which is scheduled for completion in 1972. Over 15,400 miles of this
41,000-mile system are now open to traffic and another 16,600 miles
are in various stages of development. Almost all remaining trust
fund expenditures are for the primary and secondary Federal-aid
highway systems. The budget assumes enactment of legislation
extending these latter programs for two years at the present annual
level of $975 million.
Postal service.—Expenditures of the postal service in 1965 will
exceed postal revenues by an estimated $475 million. This compares
with $770 million in 1963 and an estimated $546 million in 1964. The
decreases from 1963 result from the postal rate increases which
became effective in January 1963, an increase in parcel post rates
expected to go into effect April 1, 1964, and provision of better

106

THE BUDGET FOR FISCAL YEAR 1 9 6 5

Commerce and Transportation - Program Trends

n-~:
$6-

-40

Number Granted

[

j j

1 1 1

L-.

-1.

Landings and Takeoffs
FAA Controlled

-;J*

Miles Added

•^AV-:^^§^;^T\

service at less cost. The 1965 postal deficit, the amount by which
postal revenues fail to cover postal costs after deducting public service
costs, is estimated at $89 million.
Current programs to improve the efficiency of postal operations
are expected to accomplish substantial results in the years ahead.
The cooperation of large mailers in converting their mailing lists to
the new ZIP Code will reduce mail processing costs by increasing the
amount of presorted mail presented to post offices. An automatic
address reader and a computer-controlled letter sorter to process ZIPcoded mail are being developed and are expected to be ready for
installation in 1967. Establishment of new centers for the receipt
and dispatch of mail, and the consolidation of the mail processing
functions of small post offices into large central processing facilities
are continuing—with further savings anticipated in transportation
and mail processing costs as well as better service to the public.
Regulation of business.—Pending legislation should be enacted to
help protect millions of small investors by extending the present dis-

THE FEDERAL PROGRAM BY FUNCTION

107

closure safeguards to all companies whose securities are widely
owned, and by otherwise strengthening the securities laws.
Additional funds are requested for the Federal Maritime Commission to meet increased workloads and to permit the agency to
pursue actively its effort to assure that fair and reasonable rates
govern the movement of commodities in our waterborne foreign commerce in support of our export expansion program.
HOUSING AND COMMUNITY DEVELOPMENT
Since the enactment of the Housing Act of 1949, our national housing policy has been directed toward the long-run goal, set in that act,
of "a decent home and a suitable living environment for every
American family." Through grants, direct loans and mortgage
purchases, and especially through insurance of private credit, Federal
programs have stimulated widespread investment by private individuals and groups, as well as by local communities, in housing construction and community development. As a result, repayments and
sales of mortgages and other assets acquired in earlier years, together
with other receipts, are now exceeding the amount required to finance
necessary increases in Federal housing activities. Net receipts of
$317 million are estimated in the administrative budget for housing
and community development programs in 1965, compared with estimated net receipts of $191 million in 1964. Total Federal receipts
from the public for these programs are expected to exceed payments
to the public in 1965 by $40 million.
Urban renewal and community facilities.—All the authority
available for urban renewal capital grants provided by the Housing
Act of 1961 will have been earmarked for specific projects by the close
of the current fiscal year. Accordingly, legislation to authorize an
additional $1.4 billion in grants is recommended for prompt enactment. This will permit reservations of funds for projects to continue
for 2 additional years at about the current level, and will provide for
proposed increases in payments to families and small businesses
displaced by urban renewal.
Meanwhile, urban renewal projects financed in earlier years continue to advance toward completion. The number of older projects
completed during the year will rise from 51 to 65. Specific plans will
be submitted and approved for an estimated 200 projects in 1965,
compared to 165 in the current year. This increased activity and
the proposed higher relocation payments will result in an increase of
$75 million in expenditures for capital grants from 1964.
The rise in expenditures in 1965 for loans to assist smaller communities in financing essential public facilities will be more than offset
by higher receipts from sales of loans made in earlier years. The
successful sale of such loans, which were originally made by the Gov

108

THE BUDGET FOR FISCAL YEAR 1965
HOUSING AND COMMUNITY DEVELOPMENT
[Fiscal years.

In millions]

Program or agency

Payments to the
public
1963
actual

Recommended
new obligational
1965
1964
authority
estimate estimate for 1965

Administrative Budget Funds:
Urban renewal and community facilities:

Housing and Home Finance Agency:
Urban renewal:
Capital grants
Loans
Public facility loans (excluding transportation loans).
Urban mass transportation:
Present programs
Proposed legislation
Other
Public housing programs
Aids to private housing:

Housing and Home Finance Agency:
Federal Housing Administration
Federal National Mortgage Association:
Special assistance functions
Management and liquidating programs
Secondary market operations, preferred stock repurchase
Proposed legislation for pool participation sales..
Housing for the elderly—direct loans
Other
Federal Savings and Loan Insurance Corporation

$186
-13
27

$225
18
34

$300
18
32

10
17
178

29
146

12
10
39
222

135

-173

-277
-162

-365
-113

-313
-74

*
$75
50

231

-101
-200
49
19
-349

19
13
-264

33
16
-250

66
4

66
3

-67

-191

-317

523

-730
334
363
-2

30
396

147
419

1,200
2

138
417
-100
1

-36

1,628

456

1566

105
60

115
43

156
23

-268

1,279

-40

75
18

National Capital Region:

District of Columbia
Other

Subtotal, administrative budget.
Trust

72
1

Funds:

Federal National Mortgage Association, secondary market
operations, net
District of Columbia municipal government
Federal home loan banks, net
Other
Subtotal, trust funds.
Intragovernmental transactions and other adjustments
(deduct):
District of Columbia
Other
Total.

*Less than one-half million dollars.
1 Compares with hew obligational authority for 1963 and 1964, as follows:
Administrative budget funds: 1963. $559 million: 1964, $1,965 million.
TrustJunds: 1963. $554 million; 1964. $449 million.

THE FEDERAL PROGRAM BY FUNCTION

109

ernment because they were unacceptable to private investors, is a
small but significant part of the Government-wide efforts to substitute
private for public credit wherever possible.
Pending legislation to assist urban mass transportation systems
would authorize Federal grants, direct loans, and loan guarantees involving new obligational authority totaling $375 million over a 3-year
period. The 1965 budget includes $75 million in new obligational
authority and $10 million in expenditures for the first year of operation under the new program.
New obligational authority of $25 million is needed to continue the
urban planning assistance program. This program, while small in
terms of expenditures, offers potential savings by assuring that Federal
aids to community development are put to the most effective use,
particularly in our growing metropolitan areas.
Public housing programs.—The authority provided in the Housing
Act of 1961 to make contracts for annual contributions to local housing authorities to support construction of additional low-rent public
housing units will be exhausted by the end of the current fiscal year.
Legislation is being requested to authorize contracts for an additional
200,000 units over the next 4 years, together with amendments to
improve the flexibility and effectiveness of the present program.
Expenditures under present programs will rise to $222 million
in 1965, as additional units built under prior authorizations are completed and become eligible for annual contributions, and as more units
occupied by elderly persons become eligible for the special additional
contributions authorized in 1961. Estimated net expenditures in
1964 are unusually low because of nonrecurring receipts from private
refinancing of the last $53 million of local housing authority bonds
owned by the Public Housing Administration.
Aids to private housing.—Federal assistance to private housing has
generally been accomplished by encouraging private credit markets to
supply more adequate financing. The Housing and Home Finance
Agency provides such assistance primarily by insuring loans made by
private institutions and by maintaining secondary market facilities
to improve the marketability of such loans. The Federal Savings and
Loan Insurance Corporation, through insurance of savings and loan
accounts, encourages small savers to pool their funds for home mortgage lending. The Federal home loan banks supplement such funds
by lending to member savings and loan associations which experience
loan demands temporarily greater than they can meet.
It is expected that private funds will continue to be available in
1965 for a considerable volume of investment in federally insured

110

THE BUDGET FOR FISCAL YEAR 1965

mortgages. As a result, sales of mortgages previously acquired by
the Government, together with repayments, will exceed the purchases
of new types of insured mortgages, even though an increase in such
purchases is anticipated—especially for housing of moderate income
families. The turnover of a limited Federal investment thus will
permit maximum support of new housing construction with minimum
burden on the Federal budget.
The Federal Housing Administration will continue to make substantial expenditures for mortgage and property acquisitions arising
from defaults on insured mortgages. However, these and other
expenditures will be more than offset by receipts from (1) privately
financed sales of properties, and (2) transfers of mortgages acquired
on previous sales of properties to the Federal National Mortgage
Association for management and sale through its unified mortgage
administration system. As a result, the FHA will have net receipts
estimated at $173 million in 1965, compared to estimated net expenditures of $57 million in the current year.
The Federal National Mortgage Association will continue its successful marketing policies under which all three of its programs last
year were able not only to finance current operations from receipts, but
also to reduce substantially previous borrowings. Although some
increase is expected in mortgage purchases by the secondary market
trust fund in 1965, this trust fund is buying back this year a substantial part of its preferred stock now held by the Treasury, since it
does not currently need these funds to finance its operations. This
repurchase will reduce administrative budget expenditures by $101
million in 1964, but will not affect payments to the public.
To broaden further the range of private investment in federally
insured and guaranteed mortgage loans, legislation is being proposed
to authorize FNMA to issue and sell participations in pools of FHAinsured and VA-guaranteed loans. Enactment of this legislation
would permit sales of such participations in these loans owned by the
Association amounting to an estimated $200 million in 1965 over and
above sales of individual mortgages under present sales procedures.
Sales of similar participations in loans owned by the Veterans Administration are discussed under Veterans Benefits and Services.
The direct loan program for moderate-income rental and cooperative
housing for the elderly is expected to provide for commitments of
$100 million in 1965, but expenditures are estimated at only about
half this amount because of the lower commitment levels of prior
years. Legislation will be proposed to remove the limit on appropriations for this program, and an appropriation of $75 million is
included in this budget for 1965.

THE FEDERAL PROGRAM BY FUNCTION

111

The continuing rapid growth of savings and loan associations insured
by the Federal Savings and Loan Insurance Corporation is producing
a corresponding increase in receipts from insurance premiums, especially from prepayments of premiums required under the 1961 legislation to strengthen the reserves of the Corporation. These increases
in receipts, together with a reduction of outlays required to protect
insured accounts, will reduce net administrative budget expenditures
by about $100 million from 1964.
During fiscal year 1964, the Federal home loan banks are expected
to increase their outstanding advances to member savings and loan
associations by $1.2 billion. The banks now anticipate that in 1965
receipts from repayments of such advances will exceed new advances
by $100 million. Transactions of these banks are not included in the
administrative budget, but are recorded as trust fund expenditures.
National Capital Region.—The District of Columbia government
provides both State and local government services for the industries
and residents of the National Capital city. As the predominant
industry, the Federal Government recognizes a special responsibility
to bear its proper share of the costs.of such services, as well as to
provide long-term loans needed to carry out an orderly program of
capital improvements. Legislation enacted in 1963 increased the
authorizations for both types of Federal assistance. Additional
legislative authority is needed to provide further increases in these
authorizations and to base them on appropriate measures of the
Federal impact on the community and of the District's ability to repay
borrowings.
The specific programs and fiscal requirements of the District of
Columbia government are discussed more fully in the separate
District of Columbia budget.
The Federal Government has a unique interest in assuring a
balanced transportation system for the National Capital Area.
Legislation to authorize rapid rail transit and express bus systems
was transmitted to the Congress in May 1963. Early action to
permit a beginning on an acceptable program is essential for the
orderly development of the Nation's Capital.

HEALTH, LABOR, AND WELFARE
In 1965 Federal payments to the public for health, labor, and
welfare programs, largely from trust funds financed by special taxes,
are estimated to total $28.6 billion, an increase of $1.3 billion over
the estimate for 1964. Most of this increase reflects the built-in
growth of trust fund programs such as old-age and survivors insurance.

112

THE BUDGET FOR FISCAL YEAR 1965
HEALTH, LABOR, AND WELFARE
[Fiscal years.

In millions]
Payments to the
public

Program or agency

1963

1964

1965

Recommended
new obligational
authority
for 1965

Administrative Budget Funds:
Health services and research:

National Institutes of Health...
Community and environmental health:
Construction of health facilities:
Present programs
Proposed legislation (Hill-Burton)
Health professions education assistance
Proposed legislation for nurse education
Environmental and other community health. __
Other.
_
_

$724

$826

$850

189

200

202
5

19
11
291

$1,050
23
270
86
19
328
378

192
249

280
326

153
52

116
325
96
-4
118

126
411
160

-85
104

140
136
10
-8
112

2,730

2,948

2,781
35
53

2,980
50
54

98
263
20

123
280

125

146

293

292

355

Labor and manpower:

Unemployment compensation for Federal employees
and ex-servicemen
Manpower development and training
Proposed legislation for youth opportunities
Repayable advances to unemployment trust fund
Other.
Public assistance:
Grants to States.
.
Proposed legislation for community work-training
Assistance to Cuban refugees and other

119

Other welfare services:

Vocational rehabilitation
School lunch and special milk programs
Food stamp program
_
Proposed legislation for military service credits
Other.
Subtotal, administrative budget.
Trust

60
44

4,789

5,533

5,832

16,647

15,789
3,815
1,176
1,112
-37

16,704
3,555
1,337
1,129

17,518
3,443

17,499
3,933

1,490

-56

-46

2,391
1,279
10

21,855

22,669

23,549

946

937

786

25.698

27,265

28,595

Funds:

Old-age, survivors, and disability insuranceUnemployment insurance
Civil service retirement and disability
Railroad retirement
Other
Subtotal, trust funds. _
Intragovernmental transactions and other adjustments
(deduct)
,._.
Total.
1

Compares with new obligational authority for 1963 and 1964, as follows:
Administrative budget funds: 1963, $5,382 million; 1964, $5,765 million,
Trust funds: 1963. $22,621 million; 1964, $24,874 million.

1,144

THE FEDERAL PROGRAM BY FUNCTION

113

Administrative budget expenditures in 1965 are estimated to increase
by $299 million for new and urgently needed programs such as manpower development and training, improved youth employment
opportunities, and medical education.
More than nine-tenths of the estimated payments for health, labor,
and welfare in 1965 will be made through the social insurance trust
funds and through grants for public assistance. These payments
provide income support for the unemployed, retired, disabled, and
other recipients. An estimated 32 million people will receive $30
billion of Federal income maintenance payments in 1965, including
veterans payments, military retired pay, and other programs classified
elsewhere in the budget. Of this amount, $17 billion will be paid to
16 million aged persons. Other services and programs costing nearly
$2 billion will also be provided for the aged, including the grants for
community services and work opportunities proposed in the Senior
Citizens Community Planning and Services Act pending in the
Congress.

Health services and research.—The Department of Health,
Education, and Welfare will spend an estimated $1,733 million in
1965 for health research and training and for public health services,
including related consumer protection activities.
Health research.—Annual Federal expenditures in this field exceed
$1 billion, of which about three-fifths represents outlays by the
National Institutes of Health. Federal funds support nearly twothirds of total national expenditures for health research and about
one-half of such funds go to universities. In addition to providing
support for specific research projects and for research facilities, the
budget includes funds for general research and training grants. These
expenditures make a significant contribution toward maintaining our
leadership in combating disease and in providing trained health
personnel.
Health manpower and facilities.—The Enactment of the Health
Professions Education Assistance Act of 1963 launched a much needed
program to increase the capacity of medical and dental schools.
Construction grants and student loans are designed to increase the
number of medical school graduates by 50% and to double the number
of dental graduates by 1970. The budget includes a supplemental
appropriation of $30 million for 1964 and recommends $86 million of
new obligational authority for the second-year cost of this program.
To meet the urgent need for more and better qualified professional
nurses, we must by 1970 increase the number of practicing professional
nurses by 25%. Legislation is therefore being proposed to extend
and expand the current graduate nurse traineeship program, to au700-000 O—64

114

THE BUDGET FOR FISCAL YEAR 1965

thorize the construction of facilities for teaching nurses, and to provide
financial aid for nursing students. Extension and expansion of programs for training professional public health personnel are also
recommended.
The authorization for the highly successful Hill-Burton Act to aid
the construction of medical facilities expires June 30, 1964, and legislation is recommended to extend this program. During the past 17
years the Federal Government has contributed $2 billion under this
act toward the construction of medical facilities costing $6 billion.
The program has concentrated on the construction of general community hospitals in rural areas, and has eliminated much of the backlog of need. The proposed legislation would shift the emphasis of
the program toward modernizing the older general hospitals, largely
centered in urban areas, and toward stimulating construction of
long-term care facilities for the chronically ill and aged. Almost half
of all hospitals require some form of modernization; loan guarantees
would be used to achieve greater results than are possible with Federal
grants alone. These proposals will provide expanded assistance to
communities for meeting needs for health facilities.
Mental health.—In recognition of the need for energetic action to
combat mental illness, legislation was enacted in 1963 authorizing a
3-year program totaling $150 million for construction of community
mental health centers. The budget includes an appropriation of $35
million for 1965. This represents a vital first step in making adequate
care available in the patients' own communities, rather than sending
them away to distant large mental institutions. Starting in 1964,
project grants of $9 million are being made to State mental institutions
for demonstrations in intensive therapy and training of personnel;
these grants will be increased to $18 million in 1965. Including these
programs, new obligational authority requested for 1965 for the
National Institute of Mental Health and for construction of mental
health centers totals $224 million, $48 million more than for 1964.
Mental retardation.—Legislation enacted during 1963, pursuant to
the recommendations of the President's Panel on Mental Retardation,
provides a firm basis for a concerted national effort to combat mental
retardation on all fronts.
This legislation augments existing grant programs for services to
mentally retarded children, and authorizes a new project grant program to help reduce the incidence of retardation by comprehensive
maternity care to 300,000 mothers who otherwise could not afford it.
Additional programs authorized to combat retardation include educational research, teacher training, and community- and university-

THE FEDERAL PROGRAM BY FUNCTION

115

based clinics and research centers. The budget provides for a 1964
supplemental appropriation of $36 million to start these programs, and
appropriations of $72 million are requested for 1965. Including these
new programs, a total of $243 million in new obligational authority
is recommended for 1965 for services and benefits to the retarded
by the Department of Health, Education, and Welfare. This request,
including both administrative budget and trust funds, is nearly twice
the amount enacted 2 years earlier.
Public health services and health protection,—In 1965, the Public
Health Service and the Food and Drug Administration will spend
$333 million to improve community health services, combat environmental health hazards, and provide greater protection for" the health
and safety of consumers.
Control of environmental health hazards depends largely on increased research and the availability of specialized manpower. The
budget includes $32 million of new obligational authority for research,
training, and fellowship grants to stimulate further work in this field
and funds for planning additional Federal research facilities.
This budget provides for a substantial strengthening of activities
designed to increase our knowledge of the long-range effects of pesticides on man and other biological systems. Appropriations of $13
million are requested for 1965 for the Department of Health, Education, and Welfare which, together with funds requested for the
Departments of Agriculture and Interior (under other functional
categories), bring the total requested for this purpose to $56 million
for 1965, $10 million more than for 1964.
The Clean Air Act of 1963 provides for major new Federal responsibilities in controlling and combating air pollution. A supplemental
appropriation is proposed for 1964 to initiate activities under this act
promptly. Expenditures of $19 million are estimated in 1965 for all
air pollution activities, an increase of $8 million from 1964. Increased
emphasis will also be given to water pollution control, Including
strengthening of enforcement and research. Eight water pollution
laboratories will be under construction in 1965 from funds authorized
in previous years.
The Food and Drug Administration will expand its consumer
protection program to carry out the Drug Amendments of 1962. In
addition, a major reorganization completed in 1963 will enable the
agency to give better health and safety protection to the consumer.
Legislation is recommended to provide more adequate protection
against dangerous cosmetics, harmful and ineffective therapeutic
devices, and to make other needed improvements in the food and
drug laws.

116

THE BUDGET FOR FISCAL YEAR 1 9 6 5

The President's Advisory Commission on Narcotics and Drug Abuse
has completed a study of measures needed to strengthen control over
the distribution and usage of narcotic and psychotoxic drugs and to
improve programs for rehabilitating addicts, and its recommendations
are under review.
Health, Labor, W e l f a r e - Program Trends

'•- **

}

Recipients

Rehabilitations

f*S4
56
FUcal Years

64,

|p^ffi^§ifi:^5 : ; ;/.• "TV.

Labor and manpower.—Administrative budget expenditures in
1965 for labor and manpower programs are expected to increase by
$261 million over 1964, principally to provide training and employment opportunities for unemployed workers and youths.
To help cope with the problem of the more than 900,000 currently
unemployed among our younger people, the Youth Employment
Act was proposed last year and is awaiting final action by the Congress. This act will provide work and training through conservation
work camps and work projects in local communities. The budget
includes new obligational authority of $30 million in 1964 and $160

THE FEDERAL PROGRAM BY FUNCTION

117

million in 1965 under this legislation, which will benefit an estimated
60,000 youths during 1965.
A persistent need exists to train unemployed workers in skills which
will enable them to find productive employment. This budget provides for $165 million of appropriations for 1964, including a supplemental appropriation of $55 million, and a total of $411 million in
appropriations for 1965 to finance the recently broadened and strengthened Manpower Development and Training Act program. The new
amendments to the Act will make it possible to train 135,000 unemployed workers in 1964 and more than 275,000 in 1965, including
many youths found unqualified for military service. The 1965 total
includes an estimated 60,000 workers and youths who will receive
basic literacy training to enable them to go on to regular vocational
training. In addition to the regular flow of workers who seek training, it is anticipated that more than 300,000 18-year-olds, found
unqualified for military service, will be referred to manpower conservation units in the employment service.
The Federal-State employment service—financed through the unemployment trust fund—represents a key element in the total array
of programs to assist unemployed workers in obtaining suitable employment. Between 1961 and 1965 total nonagricultural job placements through this service will increase by 28%. To continue
strengthening the 1,900 local employment offices throughout the
country—including special services for older workers—and to meet
the cost of rising State pay scales, the budget includes an increase of
$30 million in trust fund expenditures to $452 million in 1965.
The newly established Labor-Management Services Administration
in the Department of Labor will expand its efforts to improve labormanagement relations, including general research on collective bargaining. Total outlays in the field of labor-management relations are
estimated at $41 million in 1965; this includes the labor-management
mediation agencies and the National Labor Relations Board. Legislation is being recommended to improve conditions for migrant agricultural workers. Legislation is also recommended to amend the Fair
Labor Standards Act to extend minimum wage and other protection
to more than 2 million additional workers and to authorize higher
penalty pay for overtime in covered industries in which it is found
to be appropriate.
Social insurance and welfare services.—Our economy provides
a higher standard of living to a greater proportion of its people than
any other nation. This result has been achieved principally through
the enterprise and industry of our citizens, but it has been reinforced
by public programs which provide social insurance and other aids or
services to help those families suffering a loss of income because of
unemployment, disability, retirement, or death.

118

THE BUDGET FOR FISCAL YEAR 1965

Social insurance.—Trust fund expenditures under social security,
railroad retirement, ajid retirement programs for Federal civilian employees are estimated to be over $20 billion during 1965, an increase of
$982 million over 1964.
The basic social security system now covers about 90% of our
workers and their families. Legislation is recommended, effective
January 1, 1966, to expand this system to provide protection for the
aged against the disproportionately heavy costs of hospital and nursing
home care. Financing for this hospital insurance would be provided
by raising the combined employer-employee payroll tax by %% and
by increasing the amount of earnings covered by social security. The
increase in the earnings base will also raise benefits in future years
and will help keep the system abreast of the general rise in levels of
earnings. Under the legislation, the cost of hospital benefits for the
currently aged who are not covered by the social security system would
be met from regular appropriations.
Under the unemployment insurance system, $2.9 billion will be paid
in benefits in 1965 (including $116 million from administrative budget
funds for benefits to ex-servicemen and former Federal employees).
These benefits will be paid to an estimated weekly average of 1.7
million claimants. In many States, the coverage and duration of
unemployment insurance benefits are inadequate. Legislation has
therefore been proposed to extend coverage of the system, increase the
duration of benefits, and assure the necessary revenues to finance
these improvements. The expenditure estimate for the unemployment trust fund includes $170 million for this legislation in 1965.
The 1965 budget also includes $60 million under proposed legislation
to start liquidating, on a scheduled basis, the Federal Government's
obligation to the old-age, survivors, and disability insurance system for
credits for past military service.
Public assistance.—Expenditures of $2.9 billion, including $35
million under proposed legislation to augment community worktraining programs, are estimated for public assistance in 1965. These
expenditures are $138 million less than in 1964 because cash balances
held by the States will be drawn down. However, the program will
be expanding to help States and communities provide for the basic
needs of more than 7 million persons, including 523,000 persons estimated to receive medical assistance for the aged under existing law.
Legislation is proposed to improve certain features of the old-age
assistance program.
Other welfare services.—The Federal-State vocational rehabilitation
program which provides coordinated services to the disabled, will
restore an estimated 133,000 individuals to economic independence in

THE FEDERAL PROGRAM BY FUNCTION

119

1965, an increase of 21% over 1963. Federal expenditures for vocational rehabilitation will total $125 million in 1965. New legislation is proposed to expand vocational rehabilitation services, particularly for the mentally retarded.
In the fiscal year 1965, 16.6 million school children are expected to
participate in the school lunch program, 5 percent more than in 1964.
To meet this growth in the number of participating children and to
initiate assistance on a selective basis to needy schools, grants to
States are estimated to rise by $12 million. New obligational authority of $100 million is recommended for 1965 for the special milk program, the same level as in 1964, to be financed by transferring funds
from the permanent appropriation for the removal of surplus agricultural commodities. The pilot food stamp program is financed
from the same permanent appropriation. Legislation has been proposed to provide continuing authority for this program.
Legislation has also been proposed to extend beyond June 30, 1964,
the authorization for Federal grants to support coordinated community
projects combating juvenile delinquency and to train workers in this
field.
EDUCATION
Education is essential to preserving our democratic society and
advancing our national economy. Every individual should have the
opportunity to develop his abilities to the fullest, particularly in an
age of increasing technology and rapidly growing demand for the
highly trained. This can be achieved only through concerted and
cooperative efforts by private individuals and organizations and by all
levels of government. The Federal Government can best play its part
through programs designed to meet selected, critical needs and to
stimulate improvements throughout our educational system.
The 1965 budget provides for an increase of $339 million in expenditures for education programs. Most of this increase is for measures
recommended last year which were recently enacted and for pending
measures on which the Congress has not yet completed consideration.
Other increases are provided for expanding existing programs, mainly
those of the National Science Foundation, and for a substantially
enlarged program to aid individuals who require special education
and related services, particularly as part of the attack on poverty.
The new obligational authority recommended for fiscal 1965 totals
$3.1 billion, an increase of $1.2 billion over 1964.
Proposed education legislation.—The budget includes new obligational authority of $718 million and estimated expenditures of $118
million in 1965 for education programs recommended last year which
are still pending, and for an enlargement of the proposed aid for

120

THE BUDGET FOR FISCAL YEAR 1965
EDUCATION
[Fiscal years.

In millions]
Recommended
new obli
gational
authority
1965
1964
esti mate estimate for 1965

Pay ments to the
public

Program or agency

1963
actual
Administrative Budget Funds:
Assistance for elementary and secondary education:

Assistance to schools in federally impacted areas
Defense education: Science, mathematics, and foreign
language instruction, and guidance and testing

$343

$350

$395

$418

284

3
223

38
208

464
300

116

149

162

165

106
31
51
18

132
37
70
21

148
58
74
22

224
98
137
29

55
20
78
38
27

73
24
84
48
41
3

127
23
92
51
65
118

205
23
97
45
79

1,244

1,348

1,691

13,115

1,214

1,302

1,641

Assistance for higher education:

Construction of academic facilities
College housing loans
Defense education: Student loans, fellowships, and
language and area centers
Assistance for land-grant colleges, Howard University
and Gallaudet College
Assistance to science education and basic research:

National Science Foundation:
Basic research and specialized research facilities
Grants for institutional science programs.
Science education
Other science activities

__.

Other aids to education:

Vocational education
Other defense education assistance
Indian education services
Library of Congress and Smithsonian Institution
Other
Proposed education legislation

Subtotal, administrative budget.

718

Trust Funds

Intragovernmental transactions and other adjustments
(deduct)
_
_
Total.
1

Compares with new obligational authority for 1963 and 1964, as follows:
Administrative budget funds: 1963, $ 1 , 4 2 0 million; 1964, $ 1 , 8 8 8 million.
Trust funds: 1963, $2 million; 1964, $2 million.

elementary and secondary education.
thorize Federal support for—

These proposals would au-

• Strengthening of our elementary and secondary school system
through grants for teachers' salary increases and urgently needed
classroom construction;

THE FEDERAL PROGRAM BY FUNCTION

121

• An enlarged program providing project grants for education
as a major weapon to support broad community action programs
to combat poverty and to provide special educational and related
services for certain groups of children—the handicapped, the
illiterate, the culturally disadvantaged, slow learners, children of
migrant agricultural workers, and the gifted and talented as well;
• Expansion of the National Defense Education Act fellowship
program to help meet the need for highly trained professional
personnel, particularly college teachers and scientists;
• Work-study and student loan insurance programs to help assure
that needy students are not denied a college education;
• Programs to train new teachers and specialists required for our
schools;
• Upgrading and supplementing the training of our present teachers;
• Special assistance to ease desegregation of public schools;
• Construction of public libraries and expansion of public library
services in urban as well as rural areas ;
• Basic adult education; and
• University extension services.
The following discussion relates principally to existing programs.
Assistance for elementary and secondary education.—Expenditures
for assistance to schools in federally impacted areas and for defense
education programs which support science, mathematics, foreign
language instruction, and guidance and counseling programs are
estimated at $471 million in fiscal year 1965. The increase of $45
million over 1964 for schools in federally impacted areas reflects an
increase of 100,000 students whose parents work or reside on Federal
properties, and a 5% increase in the cost of instruction. As an aid to
consideration of the future of this program, a thorough study will be
made of the impact of Federal activities on the fiscal and economic
resources of local communities.
Assistance jor higher education.—A new program to assist in construction of classrooms, libraries and laboratories for graduate and
undergraduate schools, public junior colleges, and technical institutes
was authorized in Public Law 88-204, approved December 16, 1963.
The budget includes a proposed supplemental appropriation to
initiate this program in 1964. About $570 million in grants and loans
will be committed in 1965, with expenditures estimated at $38 million.
New obligational authority of $300 million will be available for
college housing loans in 1965, the same as in 1964. Estimated expenditures in each of these years reflect anticipated sales to private
lenders of $50 million in Government loans previously made. Re-

122

THE BUDGET FOR FISCAL YEAR 1965

E d u c a t i o n - Program Trends

National Science Foundation

Fellowships and
Tramceships

~ 2

-100

64 65
Estimate

payments on outstanding loans and increased private participation
in new loans during 1965 will further reduce net expenditures by
$15 million in 1965 to an estimated $208 million.
Under the National Defense Education Act, the number of student
loans is expected to increase by 45% between 1963 and 1965, when an
estimated 314,000 loans will be made.
Assistance to science education and basic research.—The National
Science Foundation continues to perform a vital role in support of
science education and fundamental research. In keeping with proposals made a year ago as part of the Administration's education
program, substantial increases are again recommended in the scope
of the programs of the Foundation to develop additional academic
institutions of scientific excellence and to strengthen science education.
The need for highly trained manpower for engineering, mathematics,
and the physical sciences—to which these programs would contribute
significantly—was underscored by the President's Science Advisory

THE FEDERAL PROGRAM BY FUNCTION

123

Committee last year. Over 10,000 fellowships will be granted in 1965,
an increase of nearly 80% over 1964. Increases are also provided in
1965 for the support of basic research, including funds to proceed
with major procurement for Project Mohole. Total new obligational
authority for the Foundation will rise from $353 million in 1964 to
$488 million in 1965.
Other aids to education.—Expenditures for vocational education
programs are estimated to increase by $54 million in 1965 to carry out
the provisions of Public Law 88-210, approved December 18, 1963.
The act authorizes grants to States for vocational education and construction of facilities, and provides Federal support for projects which
will meet the vocational needs of youths with special handicaps to
learning. The budget includes a supplemental appropriation of $60
million for 1964 to initiate programs under the new act, and a further
increase of $89 million is recommended for 1965.
Expenditures are also estimated to increase in 1965 for (1) expanded
research supported by the Office of Education to improve course
materials, teaching methods, and knowledge about the processes of
education; (2) increased construction of educational television facilities; and (3) expanded training of teachers for the handicapped, as
authorized in Public Law 88-164.

VETERANS BENEFITS AND SERVICES
Payments to the public in 1965 for veterans programs are estimated
to decrease by $425 million from the current year's level. Major
expenditure decreases include (1) $275 million in the housing loan
programs, largely reflecting continuing high sales of mortgages held
by the Veterans Administration and proposed sales of certificates of
participation in a pool of VA-guaranteed housing loans; (2) $146
million in life insurance payments from trust funds, mainly because
of a speedup of some dividend payments into 1964; and (3) $23 million
in education and training readjustment benefits, principally because
these benefits under the GI bill for veterans of the Korean conflict
are ending.
Service-connected compensation.—Compensation for disability and
death arising from military service is estimated at $2,120 million in
1965. This is a reduction of $6 million from 1964, reflecting a decline
in the number of veterans and their survivors receiving benefits.
It is estimated that beneficiaries will total 2,354,000 in 1965, which is
7,000 less than in 1964. However, average payments per recipient
will increase in 1965, because of a cost-of-living increase in benefits to
certain widows, orphans, and dependent parents provided by legislation enacted last year.

124

THE BUDGET FOR FISCAL YEAR 1965
VETERANS BENEFITS AND SERVICES
[Fiscal years.

In millions]
Payments to the
public

Program or agency

Administrative Budget Funds:
Service-connected compensation
Non-service-connected pensions
Readjustment benefits:

Education and training
Direct housing loans:
Present programs
Proposed legislation
Housing loan guarantees
___
Proposed legislation for pool participation sales of
housing mortgages
Other

Recommended
new obligational
authority
(or 1965

1963
actual

1964

1965

$2,116
1,698

$2,126
1,743

$2,120
1,777

$2,121
1,778

-86

-69

-171

150
-150

-23

-63
-100
11

Hospitals and medical care:

Medical care and hospital services.__
Construction of hospitals
Medical administration, research, and other

1,036
66
43

1,115
75
50

1,110
85
50

1,116
102
52

14
57

13
60

-4
63

15
63

169

175

169

172

5,186

5,362

5,081

15,460

747
79
9

565
68
9

430
57
9

664
48
9

835

642

495

1721

5,971

5,950

5,525

Other veterans benefits and services:

Insurance and servicemen's indemnities
Burial and other allowances
Veterans Administration general operating expenses
and other
Subtotal, administrative budget.
Trust

Funds:

National service life insurance...
U.S. Government life insurance.
Other
Subtotal, trust funds.
Intragovernmental transactions and other adjustments
(deduct)
Total.
1

Compares with new obligational authority for 1963 and 1964, as follows:
Administrative budget funds: 1963, $5,546 million; 1964, $5,566 million.
Trust funds: 1963, $718 million; 1964, $726 million.

Costs of compensation are expected to decline in future years
because the number of beneficiaries being added to the rolls is less than
the number whose benefits are terminated through death, remarriage,
or recovery from disability.

THE FEDERAL PROGRAM BY FUNCTION

125

Nonser'vice-connected pensions.—Pension expenditures for disability
and death not connected with military service are expected to rise by
$34 million in 1965, as the average number of recipients increases by an
estimated 78,000 to a total of 2,106,000. World War I pensioners
and their surviving beneficiaries constitute 72% of this number.
Pensions for veterans of World War II and the Korean conflict and for
survivors of veterans will continue to rise as increasing numbers of
veterans reach ages at which rates of disability and mortality mount.
Readjustment benefits.—Expenditures for education and training
benefits are estimated to decline in 1965, as these benefits, mainly for
veterans of the Korean conflict, will terminate on January 31, 1965.
The number of war orphans receiving education and training is
expected to level off at an average of 15,000 per year. In the vocational rehabilitation program for the disabled, a decline in wartime
trainees will be offset by the increase in ex-servicemen injured in
peacetime service who are now entitled to vocational rehabilitation
benefits under legislation enacted in fiscal year 1963.
An increase of $102 million in net receipts in 1965 compared with
1964 is expected in the direct housing loan program for veterans in
rural areas and small towns. This change reflects an anticipated
reduction in loans from 15,000 in 1964 to 10,000 in 1965, plus increased
receipts from sales of Veterans Administration-held mortgage loans.
About $635 million of unobligated funds is estimated to be carried
forward into 1965 for the direct loan program, an amount considerably
in excess of the new loans expected to be made in that year. Accordingly, the budget includes a proposal to cancel the $150 million of
new obligational authority which otherwise would become available
for 1965 under present law.
Under the veterans loan guarantee program, 175,000 loans are
estimated to be guaranteed in 1965, 8% fewer than in 1964. Foreclosures of mortgages financed with guaranteed loans are expected
to continue high, resulting in expenditures for the payment of claims
and for property acquisition only slightly less than in 1964. However,
.properties and loans previously acquired by the Veterans Administration will be sold in increasing volume, resulting in net receipts of
$63 million in 1965 compared with net expenditures of $10 million in
1964.
In addition, legislation is recommended under which an estimated
$100 million in certificates of participation in a pool of previously
acquired veterans housing loans will be sold to private lenders in order
to broaden private financing of housing loan programs.

126

THE BUDGET FOR FISCAL YEAR

1965

Veterans Benefits and Services - Prosram Trends

1,5 -

500
Admissions
1.0-400

.5}
1954

I
s*

I
6S

Hospitals and medical care.—The 1965 budget includes expenditures
of $1,160 million for hospital and medical care services, including
administration and medical and prosthetic research. Although the
total is about the same as in 1964, provision is made for continued
improvement in the quality of medical care, expansion of research,
and activation of a new 710-bed hospital in Washington, D.C.
Hospital, domiciliary, and nursing home care will be provided in
1965 for an average of 137,622 beneficiaries per day in Veterans
Administration, contract, and State facilities—approximately the
same total as in 1964. There will also be an estimated 6 million visits
by veterans to outpatient clinics operated by the Veterans Administration or to private physicians at the expense of the Veterans
Administration.
Hospital construction.—Expenditures for hospital construction in
1965 are estimated to be $85 million. New obligational authority of

THE FEDERAL PROGRAM BY FUNCTION

127

$102 million is proposed for the year, representing the fifth step in
carrying out the 15-year $1.2 billion hospital program initiated in 1961
to modernize the 125,000-bed hospital system. Construction of one
new facility of 1,040 beds in Los Angeles, Calif., and replacement of
two hospitals containing 1,940 beds in Hines, 111., and San Juan, P.R.,
will begin in 1965, and planning will be initiated for one other hospital.
Several new modernization projects will also be undertaken, and new
obligational authority of $6 million in 1965 is provided for the construction and planning of new medical research facilities.
Veterans life insurance trust funds.—The National Service and U.S.
Government life insurance trust funds finance over 5 million life
insurance policies, primarily for veterans of World Wars I and II.
Receipts are chiefly from premiums and interest on investments;
expenditures are mainly for death and disability claims and dividends.
Trust fund expenditures are estimated to decline by $146 million in
fiscal year 1965, mainly because $113 million of the $234 million total
regular dividend payments due in that year are being accelerated
into the winter months of fiscal year 1964.
Other veterans benefits and services.—Insurance and indemnity
expenditures made from administrative budget funds are estimated
to decline by $17 million in 1965 because of the completion of payments
of special dividends and the gradual phase-out of the servicemen's
indemnity program as installment payments are completed.
Reductions in workloads and continuing improvements in productivity will result in decreased costs for general administrative operations of the Veterans Administration. These reductions will more
than offset the added cost in 1965 mandatory pay increases as provided
in the Federal Salary Reform Act of 1962.
INTEREST
Interest payments will continue to rise in 1965, reflecting in part the
higher average level of the outstanding public debt. The higher payments also take into account the effect in 1965 of interest rate increases
which have taken place in the last few years to stem the flow of shortterm funds abroad. The impact on the budget is occurring gradually
as individual issues mature and are refunded with securities paying
higher interest.
Payments to the public in 1965 for interest, primarily on the public
debt, will be $2.5 billion less than the estimated administrative
budget expenditures of $11.1 billion. The difference results from
two factors: (1) Interest payments to Federal trust funds and agencies
on their investments in United States Government securities, estimated at $1.9 billion in 1965, are included in administrative budget

128

THE BUDGET FOR FISCAL YEAR

1965

INTEREST
[Fiscal years.

In millions]
Payments to the
public

Item
1963
actual
Administrative

Budget

1965

Funds:

Interest on public debt
Interest on refunds of receipts
Interest on uninvested funds

Subtotal, administrative budget
__
Intragovernmental transactions and other adjustments
(deduct):
Excess of interest accrued over interest paid
Interest paid to trust funds and Government agencies
Total

1964
estimate

Recommended
new obligational
authority
for 1965

$9,895 $10,600 $11,000
74
90
90
11
11
12

$11,000
90
12

10,701

11,101

11,102

881
1,672

772
1,809

603
1,903

7,427

8,120

8,596

9,9

expenditures, but are excluded from cash payments to the public
since they are transactions within the Government; and (2) accruals
of interest on savings bonds—included in administrative budget
expenditures—are estimated to exceed by $603 million the actual
payments of cash to bondholders redeeming bonds during 1965.
Of the $8.6 billion of estimated payments to the public for interest,
over $900 million of the interest paid on securities held by the Federal
Reserve banks will be offset by the customary payments of excess
earnings by the Reserve banks to the Treasury, which are included in .
miscellaneous budget receipts.
GENERAL GOVERNMENT
Expenditures in 1965 for the general administrative and law enforcement activities of the legislative, judicial, and executive branches of
the Federal Government will amount to an estimated $2.2 billion,
the same as in 1964. Increases from the 1964 estimate to improve
revenue collection activities and to build, repair and operate Government buildings will be offset by decreases for other activities.
Central fiscal operations.—Expenditures of the Internal Revenue
Service are estimated at $592 million in fiscal year 1965, an increase
of $28 million over 1964. This increase will provide the resources
necessary to purchase the automatic data processing equipment and
pay the related operating personnel required for the 1965 phase in
the establishment of a nationwide master file record of taxpayers.

129

T H E FEDERAL PROGRAM BY FUNCTION

GENERAL GOVERNMENT
[Fiscal years.

In millions]
Recommended
new obligational
1965
authority
1964
estimate estimate for 1965

Payments to the
public

Program or agency

1963
actual

Administrative Budget Funds:
Legislative functions
Judicial functions
Executive direction and management
Central fiscal operations:

$131
63
21

$141
68
24

$138
72
24

$124
11
25

497
218

564
237

592
246

595
259

120
271
51

141
294
104
1

169

199

315
77

325
90

112

114
-65

311
12

323
14

336
15

361
15

115

138

125

140
47

16
7

1,979

2,238

Trust Funds

Intragovernmental transactions and other adjustments
(deduct)

,983

2,241

2,239

Internal Revenue Service
Other

General property and records management;

General Services Administration:
Public Buildings Service:
Construction
Operation, maintenance, and other _ _
Other
Central Intelligence Agency building
Central personnel management:

Department of Labor
Civil Service Commission:
Present programs
Proposed legislation
Protective services and alien control:
Department of Justice
Other

2
69
73

Other general government:

Territories and possessions
Government Printing Office building
Claims and other
Subtotal, administrative budget.

Total.
1

6
12,368

Compares with new obligational authority for 1963 and 1964, as follows:
Administrative budget funds: 1963, $2,170 million; 1964, $2,297 million.
Trust funds: 1963, $17 million; 1964, $17 million,

Increased appropriations are requested to construct the new U.S.
mint in Philadelphia authorized by legislation enacted last August.
The new facility is necessary to meet the steadily rising demand for
coins. It will permit large-scale production methods which will
reduce coin manufacturing costs substantially.
700-000 0—64

130

THE BUDGET FOR FISCAL YEAR

1965'

General Government - Prosram Trends

Billions' '-;'-,_ vV

Check, and Bonds

****%$;

1—
I

to-

64 65 1954

64 65
Estimate

Legislation is being requested to extend the Renegotiation Act
beyond its present expiration date of June 30, 1964, in order to continue the Renegotiation Board's activities in recovery of excessive
profits on procurement for the national defense program.
General property and records management.—To continue the Government-wide program of providing more modern and efficient facilities for Government operations, new obligational authority of $199
million is requested for fiscal year 1965 for acquisition of sites, planning, and construction of new buildings by the General Services
Administration. This amount is about the same as the appropriations
for 1964 for these purposes. Progress on construction financed in
prior years, however, will cause expenditures for construction to rise
by $28 million. Increases are also estimated for operation, repair,
and maintenance of facilities. These increases for public buildings
activities will be partly offset by a reduction in net expenditures for

THE FEDERAL PROGRAM BY FUNCTION

131

the Federal Supply Service, primarily because larger advances are
expected to be received from agencies ordering supplies.
Central personnel management.—-Present law requires an appropriation from the administrative budget to the civil service retirement
and disability trust fund, largely to pay increased annuities to present
retirees, effective January 1, 1963. Enactment of pending legislation
would permit payment of such benefits directly from the retirement
fund, thus eliminating $65 million from the administrative budget for
1965.
Protective services and alien control.—An increase of $13 million in

expenditures is anticipated in 1965 for the law enforcement and related
activities of the Department of Justice. New obligational authority
recommended for 1965 will increase by $23 million, primarily to complete construction of the psychiatric prison hospital in North Carolina
and to build a new National Training School for Boys in West Virginia
to replace badly deteriorated facilities in Washington, D.C.
Territories and possessions.—In accordance with legislation enacted
last fall to assist in the rehabilitation of Guam, supplemental appropriations of $11 million are recommended for 1964, and an almost equal
amount for 1965, for loans and grants, mainly to replace public facilities destroyed by the typhoon in November 1962.
The programs for the Trust Territory of the Pacific will be expanded
further to improve health, educational, and economic conditions of
this area.

132

THE BUDGET FOR FISCAL YEAR 1965

Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY
FUNCTION AND AGENCY (in millions of dollars)

Description

EXPENDITURES

NEW OBLIGATIONAL
AUTHORITY
1963
actual

1964
1965
stimate estimate

actual

1963

1964
estimate

1965
stimate

12,739
11,496
16,647

13,938
11,709
15.706

14,769
12,396
13,756

13,000
11,874
16,632

14,180
11,870
16,337

14,660
12,278
14.785

6,993
1,204

6,949

6,722
1,168

6,376
1,144

6.943
1.107

6,580
1,056

711
358

427
203

680
150

660
150

ADMINISTRATIVE BUDGET
FUNDS
050 NATIONAL DEFENSE
051 Department of Defense—Military:
Military personnel
Operation and maintenance
Procurement. _.
Research, development, test; and evaluation
Military construction
Familv housing.
Civil defense
_
Military assistance
Revolving and management funds
Total 051
058 Atomic energy:
Atomic Energy Commission

590
126

948
637
112

1,325

1,000

1,721
-1.401

1,400
-367

1,200
-169

51,120

51.000

50,880

49.973

52,300

51,200

3,135

2,743

2,693

2,758

2,800

2,735

5
-57

5
126

8
-38

13
*

20
*
22

059 Defense-related activities:
Executive Office of the President
Funds appropriated to the President
Department of Health, Education, and
Welfare
. _
Treasury Department
General Services Administration _
_
Other independent agencies: Selective
Service System
,

197

54,323

53,837

53,652

52,755

55,297

53.979

339

288

294

340

282

283

74
3

1
3

2
3

1
3

23
3

19
3

422

300

310

346

316

315

4,784
250
12
17

2,208
215
9
11

2,775
264
4
8

2.207
216
3
7

2,285
246
5
11

2.302
244

-392

-650

-856

2.041

1,897

1,705

150 INTERNATIONAL AFFAIRS
AND FINANCE
151 Conduct of foreign affairs:
Department of State
Other independent agencies:
Foreign Claims Settlement Commission
Tariff Commission
United States Arms Control and Disarmament Agency
Total 151
152 Economic and financial programs:
Funds appropriated to the President
Department of Agriculture
Department of Commerce
Department of State
Other independent agencies: ExportImport Bank of Washington
Total 152
See footnotes

Total 059
Total, national defense

*
17

5,063
at end of table, p. 144.

2,443

3,051

7
9

133

THE FEDERAL PROGRAM BY FUNCTION

Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY
FUNCTION AND AGENCY (in millions of dollars)—Continued

Description

NEW OBLIGATIONAL
AUTHORITY
1963
actual

ADMINISTRATIVE BUDGET
FUNDS—Continued
153 Foreign information and exchange
activities:
Department of State
__ _
Other independent agencies: United
States Information Agency

1964

EXPENDITURES
1963

1965

actual

1964

1965

157

166

176

155

160

172

207

251

230

201

234

227

5,693

2,994

3,591

2,588

2,447

2,248

251 Space research and technology:
National Aeronautics and Space Administration

3,673

5,241

5,304

2,552

4,400

4,990

350 AGRICULTURE AND AGRICULTURAL RESOURCES
351 Farm income stabilization and Food
for Peace:
Department of Agriculture

5,677

4,977

3,938

5,517

4,746

3,750

102

157

296

280

129

104

160

300

279

130

353 Financing rural electrification and
rural telephones:
Department of Agriculture

490

506

342

219

216

354 Agricultural land and water resources:
Department of Agriculture

406

417

429

404

417

423

355 Research and other agricultural
services:
Funds appropriated to the President
Department of Agriculture

393

410

394

1
390

2
406

388

393

410

394

391

409

388

7,070

6,385

5,014

6,954

6,070

4,907

Total 153
Total, international affairs and
finance
250

SPACE RESEARCH AND TECHNOLOGY

352 Financing farming and rural housing:
Department of Agriculture
Other independent agencies: Farm
Credit Administration
_Total 352

Total 355
Total, agriculture and agricultural
resources

-1

134

THE BUDGET FOR FISCAL YEAR 1965

Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY
FUNCTION AND AGENCY (in millions of dollars)—Continued
NEW OBLIGATIONAL
AUTHORITY

Description

EXPENDITURES
1963

1964

1,152
582
18

1,072
548
14

1,075
559
16

1,133

13
*
51

11
*
53

12
*
57

13
*
68

1963

1964

1965

1,046
587
14

1,097
616
49

11
*
35

12
*
47

1965

actual

ADMINISTRATIVE BUDGET
FUNDS—Continued
400

NATURAL RESOURCES

401 Land and water resources:
Department of Defense—Civil _ _ _ _
Department of the Interior. _
Department of State
Other independent agencies:
Federal Power Commission
Delaware River Basin Commission
Tennessee Valley Authority
U.S. Study Commission—Southeast
River Basins
U.S. Study Commission—Texas
Total 401
402 Forest resources:
Department of Agriculture
Department of the Interior

Total 402..
403 Mineral resources:
Department of the Interior
404 Fish and wildlife resources:
Department of Defense—Civil
Department of the Interior
Department of State
Total 404

405 Recreational resources:
Department of the Interior
Other independent agencies: Outdoor
Recreation Resources Review Commission
Total 405
409 General resource surveys and administration:
Department of the Interior
Total, natural resources

562
32

1,694

1,821

1,817

1,699

1,720

1,808

332
16

341
16

338
19

287
16

338
15

321
18

348

357

303

354

339

110

107

113

*
104

*
109

*
112

*
92

*
102

*
107

106

112

114

104

110

134

131

158

112

122

138

134

131

158

112

122

138

2,447

2,588

2,637

2,352

2,483

2,588

*
755

813

751

726

*
790

*
829

838

901

835

808

875

912

500 COMMERCE AND TRANSPORTATION
501

Aviation:

Department of Commerce
Federal Aviation Agency. _
Other independent agencies: Civil Aeronautics Board.
__
Total 501
See footnotes at end of table, p. 144.

135

THE FEDERAL PROGRAM BY FUNCTION

Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY
FUNCTION AND AGENCY (in millions of dollars)—Continued
NEW OBLIGATIONAL
AUTHORITY

Description

1963
actual

EXPENDITURES
1964
1965
estimate estimate

1964
1965
estimate estimate

1963
actual

364
10
297

350
6
351

336
-1
380

ADMINISTRATIVE BUDGET
FUNDS—Continued
502

Water transportation:

Department of Commerce
Department of Defense—Civil
Treasury DepartmentOther independent agencies: St. Lawrence Seaway Development Corporation
Total 502
503

Total 506

Total 507

Total 508
Total, commerce and transportation_

551

423

599

710

780

672

708

717

840

654

551

770

546

475

289

247

299

225
1

284
*

314
*

306

*
142

141

595

345

307

366

426

455

850
162

30
153

5
222

62
39

365
98

245
130

1,012

183

228

101

463

375

4
6

4
7

5
7

4
6

4
7

9
15
2
11
24
13

10
16
3
12
25
14

11
17
3
13
26
15

9
14
2
12
24
13

10
16
3
12
24
14

10
16
3
13
25
15

Regulation of business:

Department of Commerce
Department of Justice
Other independent agencies:
Civil Aeronautics Board
Federal Communications CommissionFederal Maritime Commission
Federal Trade Commission
Interstate Commerce Commission
Securities and Exchange Commission. ~

550

365

Area redevelopment:

Funds appropriated to the President
Department of Commerce

508

305

Advancement of business:

Department of Commerce
Department of the Interior
Other independent agencies:
Alaska International Rail and Highway Commission
Small Business Administration.

507

357

Postal service:

Post Office Department. _
506

345

Highways:

Department of Commerce
505

295

4,020

2,926

2,833

2,843

3,151

3,069

247

263

-273

-473

-693

-264

-250

-349

-537

-723

-1,041

HOUSING AND COMMUNITY
DEVELOPMENT
Aids to private housing:

Housing and Home Finance Agency
Other independent agencies: Federal
Home Loan Bank Board

247

Total 551
See footn

at end of table, p. 144.

263

136

THE BUDGET FOR FISCAL YEAR 1965

Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY
FUNCTION AND AGENCY (in millions of dollars)—Continued
NEW OBLIGATIONAL
AUTHORITY

Description

1964

1963

EXPENDITURES

1963

1965

1964

1965

ADMINISTRATIVE BUDGET
FUNDS—Continued
552 Public housing programs:
Housing and Home Finance Agency
Urban renewal and community facilities:
Housing and Home Finance Agency

195

212

231

178

146

222

1,428

125

222

316

411

553

555

National Capital region:

Other independent agencies:
Commission of Fine Arts
National Capital Housing Authority._
National Capital Planning Commission..
National Capital Transportation
Agency
Interstate Commission on the Potomac River Basin
District of Columbia
Total 555
Total, housing and
development..

*
70

*
72

*
66

*
88

559

1,965

523

-67

-191

-317

1,715

1,882

2.154

1,354

1,638

1.733

8
292

9
407

10
773

8
187

8
351

9
609

5
21
2

6
22
2

6
25
2

5
21
2

6
22
2

25
2

329

446

816

224

390

651

2,814

2,946

3,084

2,788

3,007

2,869

community

650

HEALTH, LABOR, AND WELFARE
651 Health services and research:

Department of Health, Education, and
Welfare
_
652

Labor and manpower:

Department of the Interior. _
Department of Labor
Other independent agencies:
Federal Coal Mine Safety Board of
Review
Federal Mediation and Conciliation
Service
National Labor Relations Board
National Mediation Board
President's Advisory Committee on
Labor-Management Policy
Total 652
653

Public assistance:

Department of Health, Education, and
Welfare
See footnotes at end of table, p. 144.

137

THE FEDERAL PROGRAM BY FUNCTION

Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY
FUNCTION AND AGENCY (in millions of dollars)—Continued
NEW OBLIGATIONAL
AUTHORITY

Description

1963

1964

1965

EXPENDITURES
1963

1964

1965

ADMINISTRATIVE BUDGET
FUNDS—Continued
655

Other welfare services:

Funds appropriated to the President
Department of Agriculture
Department of Health, Education, and
Welfare
Other independent agencies: Railroad
Retirement Board

25
382
117

20
327
144

20
344
216

31
284
110

-1

35
325

23
344

139

199
14

524

491

593

423

498

579

5,382

5,765,

6,647

4,789

5,533

5,832

419

446

502

392

411

471

149
300

452
300

658
300

144
284

182
223

234
208

449

752

958

428

404

442

322

353

488

206

260

302

112
83

198
89

308
97

102
78

138
84

216

229

331
5

449

219

269
3

359
118

1,420

1,888

3,115

1,244

1,348

1,691

800 VETERANS BENEFITS AND
SERVICES
801 Veterans service-connected compensation:
Veterans Administration

2,117

2,121

2,116

2,126

2,120

802 Veterans non-service-connected pensions:
Veterans Administration

1,700

1,739

1,778

1,698

1.743

1,777

296

217

-13

-290

Total 655
Total, health, labor, and welfare. __

700 EDUCATION
701

Assistance for elementary
secondary education:

and

Department of Health, Education, and
Welfare
702

Assistance for higher education:

Department of Health, Education, and
Welfare
Housing and Home Finance Agency
Total 702
703

Assistance to science education and
basic research:

Other independent agencies: National
Science Foundation
704

Other aids to education:

Legislative branch
Department of Health, Education, and
Welfare
Department of the Interior
Other independent agencies: Smithsonian Institution
Total 704
Proposed education legislation
Total, education. _

803

718

Veterans readjustment benefits:

Veterans Administration

138

THE BUDGET FOR FISCAL YEAR 1965

Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY
FUNCTION AND AGENCY (in millions of dollars)—Continued

Description

NEW OBLIGATIONAL
AUTHORITY
1963
actual

ADMINISTRATIVE BUDGET
FUNDS—Continued
804 Veterans hospitals and medical care:
Veterans Administration

EXPENDITURES

1964
1965
estimate estimate

1963
actual

1964
1965
estimate estimate

1,170

1,222

1,270

1,145

1,240

1,246

10
1
251

11
1
253

13
1
234

11
1
227

11
1
234

12
1

214

2
*

263

267

250

240

248

229

5,546

5.566

5,460

5,186

5,362

5,081

9,895

10,600

11,000

9,895

10,600

11,000

852 Interest on refunds of receipts:
Treasury Department

853 Interest on uninvested funds:
Treasury Department

9,980

10,701

11,102

9,980

10,701

11,101

129

127

124

131

141

138

805 Other veterans benefits and services:
Department of Defense—Civil
Department of Labor
Veterans Administration
Other independent agencies:
American Battle Monuments Commission
Historical and Memorial CommissionTotal 805
Total, veterans benefits and services
_ _.
850 INTEREST
851 Interest on the public debt:
Treasury Department

Total, interest _
900 GENERAL GOVERNMENT
901 Legislative functions:
Legislative branch
902 Judicial functions:
The Judiciary
Other independent agencies: Indian
Claims Commission
Total 902
903 Executive direction and management:
Executive Office of the President
Funds appropriated to the President
Treasury Department
General Services Administration
Total 903
904 Central fiscal operations:
Treasury Department
Other independent agencies:
General Accounting Office
_
Renegotiation Board
Tax Court of the United States
Total 904

See footnotes at end of table, p. 144.

18
1
2
*

19
1
2
*

21
1
2
*

18
1
2
*

20
1
2

20
1
2
*

681

736

802

669

749

787

44
2
2

46
3
2

47
3
2

42
2
2

46
2
2

729

787

854

715

800

3
2
838

139

THE FEDERAL PROGRAM BY FUNCTION

Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY
FUNCTION AND AGENCY (in millions of dollars)—Continued

Description

NEW OBLIGATIONAL
AUTHORITY
1963

1964

EXPENDITURES
1964

1963

1965

ADMINISTRATIVE BUDGET
FUNDS—Continued
905

General property and records management:

General Services Administration
Other independent agencies: Central
I intelligence Agency.
Total 905
906

Total 906

614

442

539

Total 908

610

614

444

540

561

110

112

142

173

106

142

175

106

312
11

338
12

361
13

311
10

323
12

336
13

1
1
*

*
1
*

1
1
*

325

352

376

323

338

351

11
3
35
37
68

9
3
42
47
57

3
3
50
40
58

18
*

48
44
52

-3
3
35
32
71

*
*

Other general government:

Legislative branch
Funds appropriated to the President
Department of Defense—Civil _
Department of the Interior
Treasury Department
Other independent agencies:
Advisory Commission on Intergovernmental Relations.
_
Historical and memorial commissions. _
Commission on International Rules of
Judicial Procedure
Total 910..

Total, general government
Allowance for attack on poverty
Allowance for civilian pay comparability
Allowance for contingencies
Inter fund transactions

See footnotes at end of table, p. 144.

48
29

52
*
*

156

158

197

139

154

148

2,170

2,297

2,368

1,979

2,238

500

250

544
500

250

544
300

-513

-685

-600

92,642

98,405

97,900

400

Total, administrative budget

561

603

Protective services and alien control:

Department of Justice
__
Treasury Department
Other independent agencies:
Civil Service Commission _
Commission on Civil Rights
Subversive Activities Control Board. _

910

610

Central personnel management:

Department of Labor
Other independent agencies: Civil Service Commission

908

603

102,283 102,554 103,789

140

THE BUDGET FOR FISCAL YEAR 1965

Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY
FUNCTION AND AGENCY (in millions of dollars)—Continued
EXPENDITURES

NEW OBLIGATIONAL
AUTHORITY

Description

1964
1965
estimate estimate

1963
actual

1963

actual

1964
estimate

1965
stimate

TRUST FUNDS
050 NATIONAL DEFENSE
051 Department of Defense—Military:
Department of Defense—Military
Military assistance
._

6
886

5
1,682

5
1,325

5
674

5
860

5
1,225

892

1,687

1,330

679

865

1,230

058 Atomic energy:
Atomic Energy Commission

059 Defense-related activities:
Treasury Department

Total 051

Total, national defense
150

Total 1 5 1 . . _

..._

152 Economic and financial assistance:
Funds appropriated to the President
Department of Commerce
Department of State
Total 152
153 Foreign information and exchange
activities:
Department of State
United States Information Agency
Total 153
Total, international affairs and
finance
_
_

892

1,689

1,331

679

867

1,231

*
*
24

*
8
48

*
2
119

32
*
6
*

52
*
1
22

22
*
1
66

121

4
6
*

3
10
*

3
6
*

1
5
*

3
8
*

3
5
*

*
*

130

SPACE RESEARCH AND TECHNOLOGY

251 Space research and technology:
National Aeronautics and Space Administration
350

INTERNATIONAL AFFAIRS
AND FINANCE

151 Conduct of foreign affairs:
Department of Justice
Department of State
Treasury Department
Foreign Claims Settlement Commission.

250

AGRICULTURE AND
AGRICULTURAL RESOURCES

351 Farm income stabilization and Food
for Peace:
Department of Agriculture

nd of table, p. 144.

141

THE FEDERAL PROGRAM BY FUNCTION

Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY
FUNCTION AND AGENCY (in millions of dollars)—Continued
EXPENDITURES

NEW OBLIGATIONAL
AUTHORITY

Description

1963
actual

1964
1965
estimate estimate

1963
actual

1964
1965
estimate estimate

TRUST FUNDS—Continued
352 Financing farming and rural housing:
Department of Agriculture
Farm Credit Administration

Total 352

483

1
447

1
413

483

448

414

354 Agricultural land and water resources:
Department of Agriculture
__

355 Research and other agricultural
services:
Department of Agriculture

Total, agriculture and agricultural
resources

507

475

442

28
2

21
2

19
1

22
2

34
2

20
2

404 Fish and wildlife resources:
Department of the Interior

405 Recreational resources:
Department of the Interior

134

109

100

122

138

107

400 NATURAL RESOURCES
401 Land and water resources:
Department of Defense—Civil
Department of the Interior
Total 401...
402 Forest resources:
Department of Agriculture
403 Mineral resources:
Department of the Interior.

409 General resource surveys and administration:
Department of the Interior.
Total, natural resources
500 COMMERCE AND TRANSPORTATION
501

Aviation:

Federal Aviation Agency
502

Water transportation:

Department of Commerce
Treasury Department
Total 502

See footnotes at end of table, p. 144.

18
*

22
*

1
*

15
*

16
*

13
*

142

THE BUDGET FOR FISCAL YEAR 1965

Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY
FUNCTION AND AGENCY (in millions of dollars)—Continued

Description

NEW OBLIGATIONAL
AUTHORITY
1964

1965

3,584

3,706

3,806

1963
actual

EXPENDITURES

1963
actual

1964

1965

3,554

3,651

TRUST FUNDS—Continued
503 Highways:
Department of Commerce
506

3,019

Advancement of business:

Department of Commerce
Federal Deposit Insurance Corporation.

Total 506

508 Regulation of business:
Federal Communications Commission...

-161

-180

-202

-157

-176

-198

*
3,605

3,731

3,811

2,877

3,394

3;466

208

100

147

-730
363

30
1,200

138
-100

208

100

147

-367

1,230

*
346

419

-2
*
334

1
1
396

1
348

417

Total 555

346

349

419

332

398

418

Total, housing and community development

554

449

566

-36

1,054

1,113

766

348

422

452

14,989
3,206
8
2,247
1,115

17,072
3,079
9
2,382
1,218

17,499
3,167
9
2,391
1,279

15,789
3,467
7
1,131
1,112

16,704
3,133
8
1,272
1,129

17,518
2,991

Total 654

21,566

23,761

24,346

21,506

22,246

23,097

Total, health, labor, and welfare

22,621

24,874

25,112

21,855

22,669

23,549

Total, commerce and transportation.
550

HOUSING AND COMMUNITY
DEVELOPMENT
551 Aids to private housing:
Housing and Home Finance Agency
Federal Home Loan Bank Board.__ ___

Total 551
555

Aids to National Capital area:

National Capital Housing Agency
National Capital Planning Commission. _
District of Columbia

650

456

1.«8

HEALTH, LABOR, AND .WELFARE
Health services and research:

651

Department of Health, Education, and
Welfare
652

Labor and manpower:

Department of Labor
654

Retirement and social insurance:

The Judiciary
Department of Health, Education, and
Welfare
Department of Labor _ _ _ _
Department of State
__
Civil Service Commission
Railroad Retirement Board _

See footnotes

at end of table, p. 441.

8
1,435
1,144

143

THE FEDERAL PROGRAM BY FUNCTION

Table 14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY
FUNCTION AND AGENCY (in millions of dollars)—Continued
NEW OBLIGATIONAL
AUTHORITY

Description

1963
actual

1964
1965
estimate estimate

EXPENDITURES
1963
actual

1964
1965
estimate estimate

TRUST FUNDS—Continued
700 EDUCATION
703 Assistance to science education and
basic research:
National Science Foundation _ _ _
Smithsonian Institution
__
Total 703

*
*

704 Other aids to education:
Legislative branch

Total, education

6
711

7
719

7
714

7
828

8
634

7
489

718

726

721

835

642

495

16
*
*

\7
*
*

16
*
*

18
*
*

905 General property and records management:
General Services Administration_

906 Central personnel management:
Department of Labor . _

800 VETERANS BENEFITS AND
SERVICES
805 Other veterans benefits and services:
Department of Defense—Civil
Veterans Administration__
American Battle Monuments Commission
Total, veterans benefits and services
___
900 GENERAL GOVERNMENT
904 Central fiscal operations:
Treasury Department
General Accounting Office
Tax Court of the United States
Total 904.

908 Protective services and alien control:
Department of Justice.

910 Other general government:
Historical and memorial commissions _
Total, general government.

_ _

*
17

Deposit funds
Interfund transactions 1
Total, trust funds

_ . . . 28,602

See footnotes at end of table, p. 144.

31,695

31,817

146
-505

-116
-488

-477

26,545

29,315

29,372

-17

144

THE BUDGET FOR FISCAL YEAR 1965

*Less than one-half million dollars.
Interfund transactions shown as deduct lines above are as follows:

1963

Administrative Budget

actual

Interest on loans to Government-owned enterprises:
Commodity Credit Corporation
186
Expansion of Defense Production
6
Export-Import Bank of Washington
51
Housing and Home Finance Agency
160
Panama Canal Company
10
Small Business Administration
20
Veterans Administration
47
St. Lawrence Seaway Development Corporation
2
Other
16
Fees and other charges:
Public enterprise funds
*
Panama Carnal Company for annuity payment and cost of Canal Zone
Government
14
Total, administrative budget

_ 513

1964
estimate
195
154
41
170
11
27
50
3
18

1965
estimate
268

~2l
176

11
32
50
3
23

685

600

7
7

8
8

Trust Funds

Payments to employees' retirement fund receipts:
District of Columbia government
District of Columbia employees' pay deductions
Payments between funds:
FOASI fund from Federal disability insurance fund
Railroad retirement account from:
FOASI trust fund
Unemployment trust fund
Federal disability insurance fund '
Civil service retirement and disability fund to Foreign Service retirement fund.
Unemployment trust fund from railroad retirement account
Total, trust funds

7
7
2

423
9
20

423
10
20

418
13
18

*
38

*
18

*
8

_ 505

488

477

PART 5

THE FEDERAL PROGRAM
BY AGENCY

145

700-000 0—64

EXPLANATION OF MEANS OF FINANCING
AGENCY ACTIVITIES
TYPES OF FUNDS

Agency activities are financed both through administrative budget
funds and through trust funds.
The administrative budget covers Federal (Government-owned)
funds which are of four types. The general fund is credited with
receipts not earmarked by law, and is charged with expenditures
payable from such revenues and from general borrowing. Special
funds account for Federal receipts earmarked for specific purposes,
other than carrying out a cycle of operations. Public enterprise (revolving) funds finance a cycle of operations in which expenditures
generate receipts primarily from the public. Intragovernmental revolving and management funds facilitate financing operations within and
between Government agencies.
Trust funds are established to account for receipts which are held
in a fiduciary capacity by the Government for use in carrying out
specific purposes and programs. Within the category of trust funds
there is a special category of trust revolving funds which carry on a cycle
of business-type operations.
The budget also includes (in association with the trust funds)
deposit funds, which are not used for Government programs but are
essentially suspense or agent accounts, and some transactions of
certain Government-sponsored enterprises. The following discussion
is not generally pertinent to them.
NEW OBLIGATIONAL AUTHORITY AND OBLIGATIONS

New obligational authority.—Government agencies are permitted to
enter into obligations, requiring either immediate or future payment
of money, only when they have been granted authority to do so by
law. The amounts thus authorized by Congress are called new
obligational authority (NOA). Such authority is related to the
obligations expected to be incurred. Some new obligational authority
is granted for 1 fiscal year; some is for a longer period or is provided
without a time limit on its use. In some cases NOA is requested
and granted to finance a project fully (especially construction, research, or procurement) at the time it starts, allowing the obligations
to be spread over 2 or more years.
New obligational authority usually takes the form of appropriations
which permit obligations to be incurred and expenditures to be made.
146

THE FEDERAL PROGRAM BY AGENCY

147

Some is in the form of contract authorizations which permit obligations,
but require an appropriation "to liquidate" in order to permit expenditures in payment of the obligations. Any part of NOA which
is not used for obligations during the period for which it is made
available by the Congress expires, and thus cannot be used at a later
time. However, reappropriations and reauthorizations are congressional actions to continue availability of unused balances which
would otherwise expire. There are also authorizations to expend from
debt receipts; such NOA permits the use of borrowed money to incur
obligations and make expenditures. Authority to use Treasury
borrowing is an authorization to expend from public debt receipts;
authority to borrow directly from private enterprise, granted only to
certain Government corporations, is called an authorization to expend
from corporate debt receipts.
Most new obligational authority of administrative budget funds
is granted year by year (current authorizations). Some new obligational authority in the administrative budget and most NOA in the
trust funds permit additional sums to become available from time to
time without further action by the Congress (permanent authorizations) .

The amount of new obligational authority is usually named specifically in the act of Congress which makes it available (definite authorizations), but in a few cases the amount is left indefinite to be determined by subsequent circumstances (indefinite authorizations); an
example is the appropriation for interest on the public debt.
Obligations incurred.—Following the enactment of new obligational
authority, obligations are incurred by Government agencies. Such
obligations include the currently accruing liabilities for salaries and
wages, certain contractual services, and interest; entering into contracts for equipment, construction, and land; approval of agreements
to make loans; and other commitments requiring the payment of
money.
EXPENDITURES AND BALANCES

Expenditures.—Obligations are liquidated by the issuance of checks,
disbursement of cash, the maturing of interest coupons in the case of
some bonds, and, in a few special cases, by issuance of bonds or notes
(or increases in the redemption value of bonds outstanding) in lieu of
checks. Retirement of debt and purchase of the Government's own
securities are not counted as expenditures (or as obligations incurred).
Expenditures during any fiscal year may be payments of obligations
incurred in prior years or in the same year. The expenditures therefore flow in part from balances of prior year NOA and in part from
NOA provided for the year in which the money is spent.
For three types of funds—public enterprise, intragovernmental, and
trust revolving funds—expenditures are stated net of receipts. If

148

THE BUDGET FOR FISCAL YEAR 1961

receipts exceed expenditures the difference shows as a minus entry in
the expenditure tables. Moneys received from the issuance of debt
instruments or the sale of the Government's own securities are not
counted as receipts or netted against expenditures.
Expenditures of the individual accounts and funds include various
payments to other accounts and funds. For example, a number of
public enterprise funds pay, to the general fund, interest on the capital
they have received from the Government. Interfund transactions of
this type within the administrative budget are deducted at the end of
the expenditure tables (and identical deductions are made at the end
of the receipt tables). Similar interfund deduc:ions are made in the
trust fund tables for those payments made by one trust fund to
•another.
Balances.—Not all of the obligational authority enacted for a fiscal
year is paid out in the same year. In the case of salaries and wages,
only 2 to 3 weeks elapse between the time of obligation and the time
of expenditure. On the other hand, in the case of major procurement and construction, several years may elapse. Amounts which
have been obligated are always carried forward to cover the subsequent
expenditure in payment of such obligations.
Most appropriations for current operations are made available for
obligation only within the year (1-year appropriations). Some are
for a specified longer period (multiple-year appropriations). Some,
including most of those for construction, some for research, and nearly
all trust fund appropriations are made available by Congress until
expended (no-year appropriations), and remain available for obligation
until objectives have been completed.
Therefore, a change in the amount of new obligational authority
for a given year does not necessarily change either the obligations
incurred or the budget expenditures in that same year by an equal
amount. A change in new obligational authority in any one year
may spread its effect over obligations for 2 or more years and over
expenditures for even a longer period.
ESTIMATES FOR 1964 AND 1965

Data for 1964.—Congress has already acted on appropriations and
other new obligational authority for fiscal year 1964, but additional
supplemental amounts are estimated to be required in certain cases.
Where the word "enacted" is used in the budget in reference to 1964,
as in tables 4 and 5, the amounts are those already voted by Congress
(including the amounts likely to be available in the case of appropriations made in an indefinite amount) or the expenditures thereunder, unless otherwise indicated. Where the word "estimate" is
used, the amounts include both those which are enacted and needed
supple mentals, including some pending before the Congress. Certain

THE FEDERAL PROGRAM BY AGENCY

149

standard footnotes are used in the following table to distinguish the
status of pending or proposed items for 1964 in this part of the budget.
Data for 1965.—This budget is complete as to the estimates for
1965 as now foreseen. The budget appendix generally includes the
proposed appropriation language for the various items which are
identified in the budget. However, in some instances—mainly cases
of proposed new legislation—estimates are included in the budget,
but formal transmittal of the proposed text of the appropriation
language (or other proposal) will be made later. In certain tables,
these items for later transmittal and expenditures therefrom are
identified in separate columns, or by special footnotes, as in the following table. In tables where there is no such specific identification, the
estimate for 1965 is comprehensive, whether or not the necessary
appropriation language is formally transmitted at this time.
Changes from 1964 to 1965.—The table which follows gives data for
1963, 1964, and 1965, with figures on increases or decreases of 1965
compared with 1964. These changes include certain mandatory cost
changes as well as proposals of the President with respect to programs.
The 1965 estimates provide the full year's cost of the pay increases
effective in January 1964, under the Federal Salary Reform Act of
1962, for which only a half-year's cost was provided in fiscal year 1964.
Special allowances.—It is certain that additional needs, not now
known, will arise during the remainder of 1964 and 1965, and supplemental proposals will be transmitted to Congress when required to
finance them. Congress will also enact legislation which is not specifically provided for in the budget, either because it is not proposed by
the President, or because its cost in either of the 2 years is relatively
small. Furthermore, some legislative proposals may involve all (as
for civilian comparability pay adjustments), or a number of agencies
(as for the poverty program for 1965). In such cases it is not feasible
to show individual items under the agencies concerned. Lump-sum
allowances are included in the summary tables of the budget to cover
such items.
Annexed budgets.—The expenditures and reveaues of seven selfsupporting Government agencies or programs have heretofore been
omitted from the budget documents, except that partial figures on
three of them have been included in the trust fund and consolidated
cash totals (but with no supporting data in the appendix). Without
making any changes in the totals, a memorandum section now covers
these activities at the end of part 5, and some details on them appear
in the appendix. Like the budgets for the legislative branch and the
judiciary, the annexed budgets have not been reviewed by the President but are included in the amounts submitted by the agencies
(except for two cases, which are noted, where Bureau of the Budget
estimates are used because no agency estimates were submitted).

ANALYSIS O F NEW OBLIGATIONAL AUTHORITY A N D EXPENDITURES BY AGENCY (in thousands of dollars)
This tabulation shows, for each appropriation and fund account, among the administrative budget funds, information on new obligational authority (called NOA herein)
and expenditures. It includes appropriation requests for 1964 based on the amounts recommended cby the President which are pending before the Congress and on
which no or partial congressional action has been taken. Such requests are identified by footnote ( ). Explanatory sentences relate primarily to NOA, and usually
to increases or decreases for 1965. Functional code numbers are cross references to the lines in table 14, (pages 132 to 144) where the figures are summarized. The
NOA in this tabulation takes account of certain transfers between appropriations which are set forth in the Budget Appendix. Congressional action in the appropriation process occasionally is in the form of a limitation on the use of a trust fund or other fund, or an appropriation to liquidate contract authorizations; such items which
do not involve NOA are also included here in parentheses, but are not added into the totals. NOA items in the administrative budget are current authorizations except
where otherwise indicated. A final section of this tabulation shows similar information on the trust funds. Smaller funds are grouped in that section. Accounts appearing there are permanent authorizations unless otherwise noted.
Account and functional code

1963
enacted

1965
estimate

1964
estimate

Increase or
decrease

Explanation of NOA requests

LEGISLATIVE BRANCH
SENATE
General and special funds:
Compensation of the Vice Presi- NOA
dent and Senators
901 Exp.

2,471
2,460

2,471

Mileage of President of the Senate NOA
and of Senators
90 J Exp.

58
53

Expense allowances of the Vice NOA
President, and majority and Exp.
minority leaders
901

14
14

Salaries, officers and employees NOA
901 Exp.

20,041
18,588

20,653

20,720

Office of the Legislative Counsel of NOA
the Senate
901 ExD.

242
233

247

Contingent expenses of the Senate:
Legislative reorganization __ 901 NOA
Exp.

132
102

(For the Legislative Branch, explanations are shown only for those items
for which supporting data submitted to the Bureau of the Budget
indicate the reason for a change from the appropriation for the current
fiscal year.)

I
67

Senate policy committees__-901

NOA
Exp.

Automobiles and maintenance NOA
901 Exp.

344
221
37
32

351

Vice President's automobile_901 Exp.

Automobile for majority and Exp.
minority leaders
901

2
31
44

NOA
Exp.

3,951
3,912

4,026

Folding documents

901 NOA
Exp.

36
27

Mail transportation

901 NOA
Exp.

17
10

Miscellaneous items

901 NOA
Exp.

2,435
2,620

2,864

2,565

Postage stamps

901 NOA
Exp.

56
53

-2

NOA
Exp.

195
200

256

195

-61

901 NOA
Exp.

15
12

Payments to estates and widows of NOA
deceased Members of the Sen- Exp.
ate
901

68
135

Furniture

901 NOA
Exp.

Inquiries and investigations.901

Stationery (revolving fund) _901
Communications

O
O

-299
ttf

-22
Cn

ANALYSIS OF NEW OBUGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued

to
1963
enacted

Account and functional code

1964
estimate

1965

Increase or
decrease

Explanation of NOA requests

LEGISLATIVE BRANCH—Continued

SENATE—Continued
General and special funds—Continued

Senate restaurant fund

901

Exp.

Recording studio revolving fund Exp.
901
Joint items:
Joint Committee on Reduction NOA
of Nonessential Federal Ex- Exp.
penditures
901

-94

d
o
o

15
28
29

Joint Economic Committee_901 NOA
Exp.

261
259

235

Joint Committee on Atomic NOA
Energy
901 Exp.

305
267

311

Joint Committee on Printing. _ NOA
901 Exp.

121
113

124

30,859
29,310

31,863
29,910

31,548
29,825

10,672
10,598

10,622

200
195

200

Total, Senate

NOA
Exp.

HOUSE OF REPRESENTATIVES
Compensation of Members

NOA
Exp.
Mileage of Members and expense NOA
allowance of the Speaker. _ _901 Exp.

901

GO
O
>

-315
-85

Salaries, officers and employees ._ NOA
901 Exp.
Members'clerk hire

901 NOA
Exp.
Contingent expenses of the House:
Furniture
901 NOA
Exp.

8,385

8,541

156

21,300

21,800

500

270
216

270

420

150

3,800

8,149
7,834
21,348
20,425

Miscellaneous items
Reappropr iation

901 NOA
NOA
Exp.

2,827 |
139
2,806

3,725

Reporting hearings

901 NOA
Exp.

175
166

223

225

commit- NOA
901 Exp.

3,059
3,058

3,966

4,000

Office of the Coordinator of In- NOA
formation
901 Exp.

120
119

122

118

-4

1,500
1,480

2,185

2,500

315
-262

Special
tees

and

select

Telegraph and telephone

901 NOA
Exp.

Stationery (revolving fund) .901

NOA
Exp.

788
829

1,308

1,046

Attending physician's office_901

NOA
Exp.

17
16

Postage stamps....

901 NOA
Exp.

184
183

274

229

Folding documents

901 NOA
E.xp.

251
221

251

Revision of laws

901 NOA
Exp.

20
20

O
CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963
enacted

Account and functional code

1964

1965

Increase or
decrease

Explanation of NOA requests

LEGISLATIVE BRANCH—Continued

HOUSE OF REPRESENTATIVES—Con.
General and special funds—Continued

Contingent expenses of the House—Con.
Speaker's automobile
901 NOA
Exp.

Majority leader's automobile. _ NOA
901 Exp.
Minority leader's automobile.. NOA
901 Exp.
Portrait of Speaker

901

w
d
o
o

10
8

i—i

NOA

New edition of the United States NOA
Code
901 Exp.
Payments to widows and heirs NOA
of deceased Members of Con- Exp.
gress
901

150

-68

125
CO

New edition of the District of Co- NOA
lumbia Code
901 Exp.

100
23

House of Representatives restau- Exp.
rant fund
901

House recording studio revolving Exp.
fund
901

-25

100

Joint items:
Joint Committee on Internal NOA
Revenue Taxation
901 Exp.

338
300

344

Joint Committee on Immigra- NOA
tion and Nationality Policy-_ Exp.
901

160

140

Joint Committee on Defense NOA
Production
901 Exp.

68
61

901 NOA
Exp.

37
37

901 NOA
Exp.

136
90

144

Education of Pages

901 NOA
Exp.

73
65

Penalty mail costs

901 NOA
Exp.

3,986
3,986

4,867

4,800

8
8

58,543
57,114

59,742
58,070

Capitol Police:
General expenses
Capitol Police Board

Statements of appropriations _ _ 901 NOA
Exp.
Consolidated working fund

901 Exp.

Total, House of Representa- NOA
tives.
Exp.

O
-67

14
54,324
52,983

1,199
956

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1964

1963

1965
decrease
(-)

Account aod functional code

Explanation of NOA requests

LEGISLATIVE BRANCH—Continued
ARCHITECT OF THE CAPITOL
General and special funds—Continued

Office of the Architect of the
Capitol:
Salaries
901
Contingent expenses

901

Capitol buildings and grounds:
Capitol buildings
901
Reappropriation
901

NOA
Exp.

363

442
442

569

355

569

127
127

Increase is for additional new positions and for positions on full-year
basis presently on a part-year basis.

NOA
Exp.

50
25

50
64

50
50

-14

This item is for unforeseen expenses. About half is usually needed for
snow removal.

NOA
NOA

1,296
337

1,428

1,515

-15

82
20
1,727

1,516

-231

Exp.

1,443

Supplemental in 1964 is for wage board pay increases. The 1965 requirements are reduced mainly because 1964 included a nonrecurring
reappropriation for elimination of fire hazards.

tr1

Extension of the Capitol: Liquidation of contract authori- Exp.
zation
901
Capitol Grounds

901

NOA
Exp.

Senate Office Buildings

901

NOA
Exp.

(800)
1,875

(-700)
-1,055

(700)
1,055

435

476

678

198

449

515

678

159

2,251

2,535

2,402

-164

2,402

-250

2,299

2,621
A 31

Supplemental in 1964 is for wage board pay increases. The 1965 requirements are increased mainly to provide additional personnel and
maintenance for expanded areas, and for resurfacing the Capitol
Plaza and Northeast and Southeast Drives.
Supplemental in 1964 is for wage board pay increases. The 1965 requirements are reduced mainly because 1964 included nonrecurring items
of fire protection improvements.

Restoration
Chamber

of Old Senate NOA
901 Exp.

Legislative garage

901

NOA
Exp.

House Office Buildings

901

NOA
Exp.

Acquisition of property, construction, and equipment,
additional
House
Office
Building:
Contract authorization_901 NOA
Liquidation of contract
authorization.
Exp.
Capitol Power Plant

901

NOA

38
20
63
61

1,722
1,721

18,000
(8,500)
20,470
2,052

-38
-2

50
M
54
M

52
52

-3

1,778
M3
1,804
A
13

3 ,354

1,563

3 ,254

1,437

4,800
(20 ,000)
19 ,873

-4,800
(8 ,000) (-12,000)
14 ,392
-5,481

2 ,706

480

2 ,656

439

1,807

283

Exp.

2,004

2 ,213
A 14
2 ,203
M4

Expansion of facilities, Capitol Exp.
Power Plant
901

827

1,524

Extension of additional Senate Exp.
Office Building site
901

-5

Additional office building for the Exp.
United States Senate
901

178

144

-144

Changes and improvements, Exp.
Capitol Power Plant
901

434

203

-203

Proposed for separate transmitta!.

Supplemental in 1964 is for wage board pay increases.

Supplemental in 1964 is for wage board pay increases. The 1965 requirements are increased mainly to provide additional personnel to staff
the Rayburn House Office Building.

(Appropriations are to liquidate contract authorization already granted.)
Supplemental in 1964 is for wage board pay increases. Principal
increases are to provide for additional electrical energy and additional
fuel required in 1965.

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1963
enacted

1964

1965

Increase or
decrease

Explanation of NOA requests

LEGISLATIVE BRANCH—Continued

w
d
a
o

ARCHITECT OF THE CAPITOL—Con.
General and special funds—Continued

Capitol buildings and grounds—Con.
Furniture and furnishings, addi- Exp.
tional Senate Office Building
.
901

-89

-2

Remodeling, Senate Office Build- Exp.
ing
....901
Library buildings and grounds:
Structural and mechanical NOA
care
901
Reappropr iation
901 NOA
Exp.
Furniture and furnishings.901 NOA
Exp.

844
272
1,202
225
141

Additiona 1 library building. _901 Exp.
Total, Architect of the Capi- NOA
tol.
Exp.

o
3,388
A 13

2,396

-1,005

2,597
A 13
180
242

3,878

1,267

229

49
-23

219

-10

27,911

17,461
A
96

13,951

-3,606

33,516

35,192

31,492

-3,796

A.96

Supplemental in 1964 is for wage board pay increases. The 1965 requirements are reduced mainly because 1964 included a nonrecurring*item
for city water distribution system and sewer and water systems serving
the main library building and grounds.
Increase is primarily for steel trays for Card Division.

BOTANIC GARDEN
Salaries and expenses

901

NOA

452

Reappropr iation

901

NOA

62
412

Exp.
47
Relocation of greenhouses

901

454 1
A
5

528

578 1
A5
10

528

-55

454 1
A
5
588 1
A
5

528

-65

Supplemental in 1964 is for wage board pay increases. Increase in
1965 results mainly from proposed improvements to main conservatory and its mechanical equipment.

-10

Exp.
514

Total, Botanic Garden___901 NOA
459
Exp.
LIBRARY OF CONGRESS
10,074}
67 J
8,933

9,726

10,790

1,064

10,481

10,659

178

Provides for increased activity in acquisition of materials by purchase,
gift, exchange, and other means, in organization of the collections,
and in reader and reference services.

1,674
1,659

1,781
1,781

1,828
1,818

47
37

Increase is needed to pay full year cost of last year's increase in personnel.

Legislative Reference Service: NOA
Salaries and expenses
704 Exp.

1,961
1,944

2,119
2,102

2,308
2,287

189
185

Provides for additional research and analysis, preparation of indexes
and digests and other reference and reader services.

Distribution of catalog cards: NOA
Salaries and expenses
704 Exp.

2,754
2,649

3,042
2,999

3,440
3,392

398
393

Increase in sales activity is expected. Costs are generally recovered
from sales income.

Books for the general collec- NOA
tions
704 Exp.

570
515

670
670

Books for the law library

704 NOA
Exp.

110
91

110
121

110
110

-11

Objective will be to continue to improve the Library's coverage and
to preserve deteriorating material.

Books for the blind: Salaries and NOA
expenses
704 Exp.

1,894
2,150

1,900
2,034

2,446
2,259

546
225

Estimate will allow procurement of braille books, more titles and copies
of talking books and other improvements in service to the blind.

Salaries and expenses
Reappropria tion

704 NOA
704 NOA
Exp.

Objective will be to continue to acquire research materials, foreign
newspapers and periodicals and materials in science and technology.

Proposed for separate transmittal.

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963

1964

1965

Increase or
decrease

Explanation of NOA requests

LEGISLATIVE BRANCH—Continued
LIBRARY OF CONGRESS—Continued
General and special funds—Continued
Organizing and microfilming the NOA
papers of the Presidents: Sal- Exp.
aries and expenses
704

113
114

Preservation of American motion NOA
pictures
704 Exp.

61
42

Revision, of Annotated Constitu- Exp.
tion__."
704

Collection and distribution of NOA
library materials (special for- Exp.
eign currency program)
704

680
634

978
969

Indexing and microfilming the NOA
Russian Orthodox Greek Catho- Exp.
lie Church Records in Alaska. 704

15
1

Oliver Wendell Holmes devise fund NOA
(permanent, indefinite, special Exp.
fund)
704

20
34

8
50

Exp.

-521

294

Total, Library of Congress._. NOA
Exp.

19,993
18,264

20,497
21,728

Intragovernmental funds:
Advances and reimbursements.704

113
131

Estimate continues the program authorized in 1959 to arrange, index
and microfilm papers in the Library's collections.
Q

-32

Estimate will allow continued conversion of paper prints and nitrate
films to safety film.
(Work is now completed.)

1,860
1,850

882
881

Program utilizes surplus foreign currencies to acquire and distribute
foreign library materials.
Work is expected to be completed in 1964.

-14
6
50

-2

-294
23,621
23,276

3,124
1,548

Principal and interest on the fund will be used primarily to continue
preparation of the history of the Supreme Court.

GOVERNMENT PRINTING OFFICE
General and special funds:

15,200

18,200

18,000

15,191

18,074

18,050

-200
-24

Office of Superintendent of Docu- NOA
ments: Salaries and expenses Exp.
910

4,760
4,422

5,242
5,267

5,562
5,597

320
330

Acquisition of site and construe- NOA
tion of annex
910

6,450

Printing and binding

901

NOA
Exp.

Appropriation covers all printing, binding, and distribution for the
Congress, or as otherwise authorized by law.
Estimate covers costs of services and sales functions. Receipts usually
exceed costs of the sales functions and are deposited in the general
fund of the Treasury.
(Funds were transferred to the Government Printing Office revolving
fund in 1964 as part of increase in capital.)

Acquisition of site and construe- NOA
tion of buildings
910 Exp.

46,723
16,478

46,723

Increase is for the construction of an additional building.

16,478

Intragovernmental funds:

Government Printing Office re- NOA
volving fund
910 Exp.

-3,550

-2,138

-4,569

-2,431

26,410

26,992
21,203

70,285
35,556

43,293

12,674

NOA 160,010

155,810
M01

199,674

43,763

165,735
A
101

178,747

12,911

Total, Government Printing NOA
Office.
Exp.
Total, Legislative Branch. _ _ _

3,550

Exp.

-6,939

147,205

14,353

a
A

Proposed for separate transmittal.

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1964

1963

1965

Increase or
Explanation of NOA requests

ictional code
(-)

THE JUDICIARY

w
SUPREME COURT OF THE UNITED
STATES
General and special funds:

1,503
1,492

1,588
1,576

1,613
1,607

138

110

128

902 NOA
Exp.

79
76

85
84

C a r e of t h e b u i l d i n g a n d NOA
grounds
902
Exp.

323

348
A
9
349

Salaries

902 NOA
Exp.

Printing and binding Supreme NOA
Court reports
902 Exp.
Miscellaneous expenses

292

Estimate provides for salaries of the Chief Justice and 8 Associate
Justices and all other officers and employees.

138

Estimate covers costs of printing and binding advance opinions,
preliminary prints and bound reports of the Court.

305

-52

305

-53

Automobile for the Chief Justice NOA
902 Exp.

7
7

8
7

Books for the Supreme Court_902 NOA
Exp.

35
34

35
35

Total, Supreme Court of the NOA
United States.
Exp.

2,085

2,201
A
9
2,179

2,186

-24

2,180

-8

2,012

Estimate allows for expenses as approved by the Chief Justice.
Supplemental for 1964 is for wage board pay increases. Estimate
covers work of the Architect of the Capitol in the care of Court
facilities.
Expenses are estimated to continue at current level.
Expenses are estimated to continue at current level.

GO
O

COURT OF CUSTOMS AND
PATENT APPEALS
370
363

388
387

403
400

15
13

Estimate includes an additional clerical position for the Clerk's
office, and other increased expenses.

931
903

989
987

1,044
1,040

54
53

Estimate includes an additional court reporter, 3 additional bailiffs,
and other increased expenses.

1,034
1.018

1,100
1,104

1,176
1,175

76
71

Increase includes $50 thousand to publish the Court's decisions.

10
9

10
10

1,044
1.026

1,110
1,113

1,186
1,184

10,960
10.881

11,200
11,185

11,200
11,200

Salaries of supporting personnel. _ NOA
902 Exp.

27,988
27.784

30,650
30,548

32,940
32,890

2,290
2,342

Fees of jurors and commissioners. NOA
902 Exp.

5,500
5,437

5,500
5,500

Travel and miscellaneous
penses

4,670
4,668

4,500
4,519

5,065
5,015

Salaries and expenses

902

NOA
Exp.

CUSTOMS COURT
Salaries and expenses

902

NOA
Exp.

COURT OF CLAIMS
Salaries and expenses
Repairs and improvements
Total, Court of Claims
COURTS
OF APPEALS,
COURTS, AND OTHER
SERVICES
Salaries of judges

902

NOA
Exp.
902 NOA
Exp.
NOA
Exp.

76
71

o
o

DISTRICT
JUDICIAL

902

NOA
Exp.

ex902

Proposed for separate transmittal.

Estimate will continue the structural and mechanical maintenance
of buildings.

NOA
Exp.

No increase is requested.

>
o

Provides funds for additional officers and clerk-stenographers for
the probation system and additional deputy clerks.

No increase is requested.

565
496

Includes expenses in support of new personnel and a new requirement for space alterations.

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963

Account and functional code

1964

1965

Increase or
decrease

Explanation of NOA requests

(-)

THE JUDICIARY—Continued
COURTS OF APPEALS, DISTRICT
COURTS, AND OTHER JUDICIAL
SERVICES—Continued
General and special funds—Continued
Administrative office of the United NOA
States courts
902 Exp.

1,530

Salaries of referees (special fund) _ NOA
902 Exp.

2,060
2,054

470
469

Includes $420 thousand to begin a central disbursing program.

1,585
2,552
2,511

2,550
2,533

2,905
2,855

355
322

Provides for additional referees, conversion of part-time referees
to full-time, and some changes in salaries.

(special NOA
902 Exp.

4,898
4,460

5,250
5,335

5,965
5,900

715
565

Includes $289 thousand for additional temporary clerks for
referees.

Total, courts of appeals, dis- NOA
trict courts, and other judi- Exp,
cial services.

58,098
57,243

61,240
61,205

65,634

65,414

4,394
4,209

Subtotal, The Judiciary

NOA

62,528

70,453

4,516

Exp.

61,546

65,928
A
9
65,871

70,218

4,338

Exi
xpenses

referees

fund)_.

1,590

Total, The Judiciary,

GO
O
>

1,584
1,514

1,031
1,377

1,464
1,532

433
155

NOA

64,112

71,917

4,949

Exp.

63,060

66,959
A
9
67,248

71,750

4,493

Add: Court facilities and furnish- NOA
ings items requested in General Exp.
Services Administration chapter
(contra)
902

d
o

EXECUTIVE OFFICE O F T H E P R E S I D E N T
COMPENSATION OF THE PRESIDENT
General and special funds:

150
150

2,545
2,502

2,730
2,720

2,730
2,730

1,500
1,039

1,500
1,500

658
660

671
665

696
696

25
31

These funds provide for care, maintenance, and operation of the Executive Mansion and the surrounding grounds. Increase provides for
quadrennial painting of the Executive Mansion.

903 NOA
Exp.

5,872
5,829

6,500
6,655

6,861
6,819

361
164

The Bureau assists the President in the discharge of his budgetary, management, and other executive responsibilities. Increase reflects
mandatory salary reform costs and slight increase in temporary and
intermittent services.

Advances and reimbursements_903 Exp.

-5

5,872
5,825

6,500
6,734

Compensation of the President NOA
903 Exp.
THE WHITE HOUSE OFFICE
Salaries and expenses

_ _ _903 NOA
Exp.

This office provides the President with staff assistance and administrative services.

SPECIAL PROJECTS
Special projects

_ 903 NOA
Exp.

The President uses this appropriation for staff assistance on special
problems.

EXECUTIVE MANSION AND GROUNDS
Executive Mansion and grounds NOA
903 Exp.

O
O
S3

BUREAU OF THE BUDGET
Salaries and expenses

Total, Bureau of the Budget
A

NOA
Exp.

-79
6,861
6,819

361
85

Proposed for separate transmittal.

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1963
enacted

1964
estimate

1965

Increase or
decreas

Explanation of NOA requests

EXECUTIVE OFFICE OF THE PRESIDENT—Continued

COUNCIL OF ECONOMIC ADVISERS
General and special funds:

Salaries and expenses

903 NOA
Exp.

Intragovernmental funds:

601
604

Advances and reimbursements_903 Exp.

Total, Council of Economic NOA
Advisers.
Exp.

601
675

615
626

645
641

30
15

615
626

645
641

30
15

The Council advises the President on economic programs and policy.
Increase primarily reflects salary reform costs.

NATIONAL AERONAUTICS AND
SPACE COUNCIL

d
a

General and special funds:

Salaries and expenses

903 NOA
Exp.

530
394

525
492

525
513

550
485

575
570

575
575

5,240
5,528

4,695
4,921

5,700
4,731

1,005
-190

The Council advises and assists the President on policies, plans, and
programs in aeronautical and space activities.

NATIONAL SECURITY COUNCIL
CO

Salaries and expenses

903 NOA
Exp.

The Council advises the President regarding national security policies.

OFFICE OF EMERGENCY PLANNING
Salaries and expenses

903 NOA
Exp.

This Office advises and assists the President in determining policy for
and in planning, directing, and coordinating the total nonmilitary defense program. Increase reflects mandatory salary reform costs anc
contract research on problems of telecommunications and economic
and resource management.

State and local preparedness. -059 NOA
Exp.

Emergency preparedness functions NOA
of Federal agencies
059 Exp.

Emergency supplies and equi
uip059
ment
0
Research and development

903

Exp.
Exp.

Total, Office of Emergency NOA
Planning.
Exp.

This appropriation finances the development of State and local plans and
preparations for management of resources in time of war and after attack. This includes the use of resources to meet survival needs and
the role of the States and their political subdivisions as possessors of
resources required for restoration and rehabilitation of the Nation.

1,500

375

1,500
1,500

1,125

5,190
4,792

4,190
4,261

6,500
6,269

2,310
2,008

-7

609

336

-336

10,430
10,942

10,385
9,900

13,700
12,500

3,315
2,600

764
464

880
860

950
940

70
80

This Office advises and assists the President in developing policies and
evaluating programs to assure that science and technology are used
most effectively in the interests of national security and the general
welfare.

465
450

540

517

75
67

This Office is responsible for the administration of the trade agreements
program. It will prepare for and direct U.S. participation in all
trade negotiations under the Trade Expansion Act of 1962, including
the forthcoming major Sixth Round of negotiations under the General
Agreement on Tariffs and Trade.

This appropriation assists other Federal agencies to prepare national
emergency plans and develop preparedness programs under the guidance and review of the Office of Emergency Planning, as directed by
Executive orders.
(This activity was transferred to other agencies by Executive order.)
(Financing is transferred to the "Salaries and expenses" account.)

••3

OFFICE OF SCIENCE AND TECHNOLOGY
Salaries and expenses

903

NOA
Exp.

SPECIAL REPRESENTATIVE FOR TRADE
NEGOTIATIONS
Salaries and expenses

903

NOA
Exp.

MISCELLANEOUS
Intragovernmental funds:

Federal Radiation Council: Ad- Exp.
vances and reimbursements__903
Total, Executive
the President.

Office

of NOA
Exp.

-22

23,601
23,113

24,996
24,677

-10
28,872
27,581

3,876
2,904

(The Council is financed by advances from participating agencies.)

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963

1965

1964

Explanation of NOA requests

(-)
FUNDS APPROPRIATED TO THE PRESIDENT
DISASTER RELIEF
General and special funds:

Disaster relief

655 NOA
Exp.

25,000
30,803

20,000
23,000

20,000
35,000

-12,000

Estimate for 1965 will cover possible disaster needs, based on recent
experience.

ECONOMIC ASSISTANCE
Development grants

152 NOA
Exp.

224,800
244,877

Investment surveys

2,800
1,127

152 NOA
Exp.

225,000
225,000

70,102
-5,000

Estimate reflects continued emphasis on technical assistance programs
particularly in Africa, and expansion of research effort.

Estimate will permit continued U.S. support to American sponsored
schools abroad, primarily in the Near East.

500

12,000
2,550

-2,300
2,050

4,700
812

2,000

-4,700
1,188

D2,100

2,100

100

14,300

American schools and hospitals NOA
abroad
152 Exp.
American schools and hospitals NOA
abroad (special foreign currency Exp.
program)
152

154,898
230,000

(Expenditures cover U.S. contribution to complete U.S.-sponsored
children's hospital in Poland and to support the American University at Cairo.)
Estimate will allow continued encouragement of private investors to
survey investment opportunities in developing areas.

t—i

I
CO

Contributions to international or- NOA
ganizations
152 Exp.

148,900
93,568

116,000
142,000

135,600
125,000

19,600
-17,000

Estimate primarily will meet scheduled requirements for the Indus
Basin Development project and match the contributions of other UN.
members in support of the U.N. Special Fund and Technical Assistance
program.

Supporting assistance

152 NOA
Exp.

404,753
493,693

330,000
415,000

D335,000
335,000

5,000
-80,000

This activity is expected to stabilize, after several consecutive years of
program reductions.

Contingency fund

152 NOA
Exp.

250,000
137,186

50,000
145,000

100,000
10,000

Estimate will provide flexibility to the President for meeting unforeseen
emergencies and opportunities in foreign affairs.

150,000
155,000

85,000
65,000

5,000
-10,000

Estimate will permit keeping pace with Alliance efforts by the countries
of Latin America. Loans appear under "Loan and guarantee programs."

120,000

-135,000
20,000

This program is expected to be part of expanded arrangements to be
proposed for the Inter-American Development Bank. A small part of
1964 appropriation will be used to finance the activities of the Organization of American States related to the Alliance for Progress.

54,500
54,000

4,518
1,400

Estimate reflects pay increases, expanded training programs, and other
items for administration of the program.

2,700
2,700

2,900
2,900

200
200

Provision is made for mandatory cost rises and more adequate provision for nonsalary expenses.

1,174,800
1,168,994

937,580
1,163.662

1,002,100
1,086,550

64,520
-77,112

Loan and guarantee programs:
Alliance for Progress: Develop- NOA
ment loans
152 Exp.

424,700
116,315

375,000
150,000

465,000
220,000

90,000
70,000

Estimate provides for the U.S. share in accelerating joint Alliance for
Progress effort. The U.S. also supports Latin American development
through (a) use of agricultural surplus under the Food for Peace program, (b) Alliance development grants, (c) the facilities of the ExportImport Bank and the Peace Corps, and (d) subscriptions to the InterAmerican Development Bank, all shown elsewhere.

Development loans—revolving NOA
fund
152 Exp.

974,400
401,465

687,300
470.000

925,000
550,000

237,700
80,000

Estimate reflects expanded requirements for overseas loan assistance
mainly in the Near East and South Asia.

Development Loan Fund (liqui- Exp.
dation account)
152

358,436

320,000

300,000

-20,000

(The Fund ceased existence as a corporate entity in 1962, except for
liquidation of loan commitments.)

Foreign investment guarantee NOA
fund
152 Exp

30,000
-2,930

-4,610

-7.500

-2,890

Guarantees totaling $725 million are expected to be issued. Additional
guarantee authorization of $220 million will be requested to cover
future guarantee requirements.

Subtotal, loan and guaran- NOA
tee programs.
Exp.

1,429,100
873.286

1,062,300
935,390

1,390,000
1,062.500

327,700
127,110

Alliance for Progress, grants. _ 152 NOA
Exp.

89,900
94,942

80,000
75,000

152 NOA
Exp.

49,000

135,000
100,000

Administrative expenses, Agency NOA
for International Develop- Exp.
ment
152

50,890
52.542

49,982
52,600

Administrative expenses, StateJ 52 NOA
Exp.

2,757
2.059

Subtotal, grants and other NOA
Exp.
programs.

Social progress trust fund

Ed
>

Public enterprise funds:

To carry out authorizing legislation to be proposed.

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963

1964

1965
Explanation of NOA requests

Account and functional code

FUNDS APPROPRIATED TO THE PRESIDENT—Continued
ECONOMIC ASSISTANCE—Continued

Intragovernmental funds:

Advance acquisition of property— Exp.
revolving fund
152

86?

1,000

Office of Inspector General, For- Exp.
eign Assistance, State
152

-51

-52

-50

Subtotal, intragovernmental Exp.
funds.

811

948

950

Total, economic assistance.-- NOA
Exp.

(The fund finances costs related to acquisition, renovation, and resale
of Government-owned excess property.)

d
a
o

(Advances of $825 thousand from other appropriations willfinancethe
continued review of foreign assistance activities.)
o

2,603 ,900 1,999,880 2,392,100
2,043 ,092 2,100,000 2,150,000

392,220
50,000

EMERGENCY FUND FOR THE
PRESIDENT
General and special funds:

Emergency fund for the President NOA
903 Exp.

1,000
389

1,000
1,000

-57,069

125,939

1,000
1,000

This appropriation enables the President to provide for emergencies
affecting the national interest, security, or defense.

EXPANSION OF DEFENSE
PRODUCTION
Public enterprise funds:

Revolving fund, Defense Produc- Exp.
tion Act
059

-37,845 -163 ,784

(Estimate for 1965 reflects proposed legislation which would eliminate
certain payments of interest to Treasury after 1964.)

EXPENSES OF MANAGEMENT
IMPROVEMENT
General and special funds:

200
127

100
111

300
267

200
-5

This enables the President to improve management, organization, and
operation of the executive branch.

Investment in Inter-American NOA
Development Bank
152 Exp.

60,000
60.000

50,000
50,000

*205,880

155,880
-50,000

NOA in 1965 will provide the first of 2 equal installments for callable
capital stock to be subscribed by December 31, 1964, and December
31,1965.

Subscription to the International NOA
Development Association. _ _ 152 Exp.

61,656
61.656

61,656
61,656

Expenses of management im- NOA
provement
903 Exp.
INTERNATIONAL FINANCIAL
INSTITUTIONS

Loans to the International Mone- NOA
tary Fund
152

2,000,000

Total, international financial NOA
institutions.
Exp.

2,121,656
121,656

This is the fifth andfinalinstallment of the initial subscription to be paid
by members. The total U.S. share is $320.3 million.
NOA is available if needed as part of a multicountry commitment to
forestall or cope with an impairment of the international monetary
system.

267,536
61.656

155,880
-50,000

92,100 | D 115,000
3,864
90,000
73,000

19,036

111,656
111,656

PEACE CORPS
Salaries and expenses
Reappropriation

152 NOA
NOA
Exp.

58,556
42,259

*D To carry out authorizing legislation now pending in the Congress.
To carry out authorizing legislation to be proposed.

17,000

Corps will expand to 14,000, an increase of 3,500 over 1964. Main
expansion will continue to be in Latin America and Africa.

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and, functional code

1963

1964

1965

Increase or

Explanation of NOA requests

(-)

F U N D S APPROPRIATED TO THE PRESIDENT—Continued
PUBLIC WORKS ACCELERATION
General and special funds—Continued
Public works acceleration
507 NOA
Exp.

850,000
62,460

30,000
365.000

5,000 -25,000
245,000 -120,000

Funds are proposed for contingencies and administrative costs of the
$880 million program now underway. A major cost element will be
field inspection prior to making progress payments on projects developed by communities. As of November 1, 1963, 7,021 projects
were approved which will generate over 1,120,000 man-months of
employment. Estimated obligations and expenditures will accelerate
functions covered by regular appropriations as follows (in millions of
dollars):
Estimated
obligations
(allocations)

Housing and community development
(553) 481
Community health facilities and
waste treatment
(651) 231
Land, water, mineral, forest and
wildlife resources.
*(400) 136
Commerce, highways, and other
J
transportation
(500) 20
Federal facilities, post offices, and
J
prisons
(900)
8
Agriculture and agricultural resources
H300)
2
Veterans and all other functions___ 2 0
Unallocated (1965 NOA)
5
Lapsed appropriations
2
Total allocations
1

885

Includes more than one subfunction.
2 Less than $500 thousand.

W
w
d
a
a
H

Expenditures
1963

1964

1965

175

156

1
0
__

1
__.

365

245

SPECIAL FOREIGN CURRENCY
PROGRAMS

663

2.319

NO A
Exp.

3,000
3,110

3,000

Obligations, defense aid, liquidation lend-lease program
152

Exp.

Total, funds appropriated to
the President.

NOA
Exp.

5,663,312
2,247,497

Translation of publications and
scientific cooperation
355

Exp.

- 2 ,319

(Continuation of this program is provided under the National Science
Foundation and the Department of Agriculture.)

- 3 ,000
- 2 ,979

1964 was the last year of a five-year authorized program of grants to
facilitate the transition to statehood.

TRANSITIONAL GRANTS TO ALASKA
Transitional grants to Alaska_910

3.000

MISCELLANEOUS
(Account is used only to pay old obligations.)

2,261,600
2,817.186

2,800,936
539 ,336
2,533,099 - 2 8 4 ,087

t"1

DEPARTMENT OF AGRICULTURE

o
o

AGRICULTURAL RESEARCH SERVICE
General and special funds:

Salaries and expenses
Reappropriation

355

NOA

173,586

195,407 1 - 2 1 , 0 3 4
183,764
A 840 A - 3 0 , 8 3 7
1,000
189,070 1-17,410
177,110
A 800 A -28,570

NOA
Exp.

166,733

Salaries and expenses (special NOA
foreign currency program)..355 Exp.

5,265
4,208

1,250
5,880

146

State experiment stations
A

355

Exp.

1,000

5,000
9,750

3,750
3,870
-4

Supplemental in 1964 is for increased workload and for salary reclassification of meat inspectors. Decreases in 1965 contemplate (a) enactment of legislation to finance meat inspection on a self-supporting fee
basis, (b) closing nonessential research stations, and (c) slowing fire
ant eradication. These are partly offset by increases including staffing
new laboratories, pesticide research and regulation, research construction, pay costs, meat and quarantine inspection.

}

Increase expands use of excess foreign currencies for agricultural and
forestry research in the economic, biological, and physical sciences.
(Activities were transferred to Cooperative State Research Service.)

Proposed for separate transmittai.

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1964

1963

Account and functional code

1965

Increase or
decrease

Explanation of NOA requests

DEPARTMENT OF AGRICULTURE—Continued
AGRICULTURAL RESEARCH SERVICE—
Continued
General and special funds—Continued
Construction of facilities
355 Exp.

3,983

Diseases of animals and poultry Exp.
Animal disease laboratory facili- Exp.
ties
355

157

Intragovernmental funds:
Working capital fund, Agricul- Exp.
tural Research Center
355
Total, Agricultural Research NOA
Service.
Exp.

390

-1,847
-13

149

-149

Research on strategic and critical Exp.
materials
355
Establishment of an entomology Exp.
research laboratory
355

543

2,390

-1

-10

(New construction is funded under Salaries and expenses.)
(Expenditures from the account are expected to be completed in 1964.)
(Construction in 1964 completes this installation/at Ames, Iowa.)

(Expenditures from this account are expected to be completed in 1964.)

137
so
179,851

186,014
A
840

175,755

185,557
A 800

38,262
37,992

41,633

42,460

41,630

42,460

200,407 I - 1 7 , 2 8 4
-30,837
199,363 1—15.564
-28,570

COOPERATIVE STATE RESEARCH
SERVICE
General and special funds:
Payments and expenses

355

NOA

Exp.

827
830

Increase provides payments to State Agricultural Experiment Stations,
partly offset by shift in financing of management to Office of Management Services.

EXTENSION SERVICE
Cooperative extension work, pay- NOA
ments and expenses
355 Exp.

Total, Extension Service

NOA
Exp.

-2,501
-2,302

80,180
80.110

-135

-75

75,343
74,543

80,180
80,035

77,679
77,808

-2,501
-2,227

704
688

1,201
1,141

1,102
1,117

-99
-24

-34

109

Intragovernmental funds:

Advances and reimbursements.355 Exp.

77,679
77,808

75,343
74,678

Estimate provides for payments to States at levd recommended in 1964
budget and for mandatory salary reform costs and retirement costs.

FARMER COOPERATIVE SERVICE
General and special funds:

Salaries and expenses

355

NOA
Exp.

Intragovernmental funds:

Advances and reimbursements.355 Exp.
Total, Farmer
Service.

Cooperative NOA
Exp.

Mandatory salary reform costs are more than offset by the shift in financing of management to Office of Management Services.

-109

704
654

1,201
1,250

1,102
1,117

-99
-133

SOIL CONSERVATION SERVICE

ttf

General and special funds:

Conservation operations

354

NOA
Exp.

93,988
92,997

98,043
97,545

98,750
98,300

707
755

Watershed protection

354

NOA
Exp.

61,357
53,115

63,539
58,000

65,848
62,100

2,309
4,100

Flood prevention

354

NOA
Exp.

25,325
26,493

25,434
24,800

22,656
23,500

-2,778
-1,300

Decrease assumes use of $3,800 thousand of the prior year unobligated
balance to continue work in the 11 authorized watersheds.

Great Plains conservation program
354

NOA
Exp.

12,354
9,746

13,617
10,940

14,744
11,725

1,127
785

Provides for increased cost-share funds for technical services, and for
mandatory salary reform costs.

Proposed for separate transmittal.

Increase provides for soil surveys and mandatory salary reform costs
partly offset by savings due to management improvements.
Estimate will start construction of about 36 watershed projects, continue 260, complete 35, provide advance engineering for 125, and
increase comprehensive river basin surveys.

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1963
enacted

1964
estimate

1965
estimate

Increase o
decrease
)

Explanation of NOA requests

DEPARTMENT OF AGRICULTURE—Continued
SOIL CONSERVATION SERVICE—Con.

General and special funds—Continued

1,500
394

2,044
2,400

544
2,006

193,023
182,351

202,133
191,679

204,042
198,025

1,909
6,346

9,834
9,742

9,909
9,795

9,476
9.511

-433
-284

10,012
10,019

11,272
11,108

11,431
11,402

160
294

Resource conservation and devel- NOA
opment
_ __ _ __354 Exp.
Total, Soil Conservation Serv- NOA
ice.
Exp.

Program includes planning and starting up to 10 pilot projects to maintain and enhance the level of economic activity.

ECONOMIC RESEARCH SERVICE
Salaries and expenses. _

__355 NOA
Exp.

Mandatory salary reform costs are more than offset by the shift in financing of management to Office of Management Services.

STATISTICAL REPORTING SERVICE
Salaries and expenses

_355 NOA
Exp.

Increases for enumerative survey for crop and livestock estimates,
cattle-on-feed reports, and mandatory salary reform costs, more than
offset decreases for consumer surveys and the financing of management
under Office of Management Services.

AGRICULTURAL MARKETING SERVICE
Marketing research and service.._ NOA
355
Exp.
Payments to States and posses- NOA
sions
355 Exp.

41,018
40,615
1,425
1,425

42,476
43,975 1-17,309
A 173 A - 1 8 , 6 3 5
41,242
43,652 1-14,149
M66 A -16,393
1,500
1,500

1,425
1,425

-75
-75

Supplemental in 1964 is for salary reclassification of poultry inspectors.
Net decrease reflects a net reduction in research and legislation to
finance certain marketing services on a fee basis, with increases in
market news and mandatory salary reform costs.
Estimate is reduced to the 1963 level of matching payments to the States
for programs to improve marketing.

Special milk program
Permanent
School lunch program
Permanent

655 NOA
NOA
Exp.

99,997

100,000

95,370

98,500

655 NOA
NOA
Exp.

124,993
45,000
169,596

137,000
45,000
181,500

746
773

832
884

Perishable agricultural commodi- NOA
ties act fund (permanent, in- Exp.
definite, special fund)
355
Removal of surplus agricultural
commodities (permanent, indefinite)
351

-100,000
99,831
1,300

Decrease in the direct appropriation and the increase in the permanent
appropriation (transferred from "Removal of surplus agricultural
commodities"), reflect a shift in financing in 1965.

147,610 1 10,610
45,000
11,500
193,000

Increase provides for growth in the program and includes $2 million for
aid to needy schools.

99,831
99,800

893
908

61
24

An increase in license fee rates effective Jan. 1, 1963, allows improved
administration of the license system.

w
244,611
111,536

271,276
271,276

173,727
173,727

-97,549
-97,549

30% of certain customs receipts is available to finance this and related
Federal programs. Reduction reflects transfer to finance special milk
program in 1965, partly offset by slight increase in receipts.

655 NOA
Exp.

20,248
20,248

44,625
44,625

51,125
51,125

6,500
6,500

These funds available to finance the pilot food stamp program in 1965
provide for some expansion.

Advances and reimbursements_355 Exp.

-5

-7

642,709
M73
639,534
A
166

563,586 |-97,931
A
-18,635
563,637 1-92,456
A
-16,393

17,128
3,117
11,934

18,700
3,117
15,459

20,561 | 1,861
3,117
2,683
18,142

Salaries and expenses (special NOA
foreign currency program) _355 Exp.

4,000
4,628

4,000

3,200

-800

Total, Foreign Agricultural NOA
Service.
Exp.

24,245
16,562

21,817
19,459

23,678
21,342

1,861
1,883

NOA
Exp.

Intragovernmental funds:

Total, Agricultural Market- NOA
ing Service.
Exp.

578,038
439,556

FOREIGN AGRICULTURAL SERVICE

General and special funds:

Salaries and expenses
Permanent, indefinite

355 NOA
NOA
Exp.

Proposed for separate transmittal.

Increase is largely for expanded market development work abroad in both
dollar and soft currency areas, and for mandatory salary reform costs.

There are adequate carryover balances of excess foreign currencies for
this account.

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
00
1963
enacted

Account and functional code

1964
estimate

1965

Increase or
decrease

Explanation of NOA requests

DEPARTMENT OF A G R I C U L T U R E — C o n t i n u e d
COMMODITY EXCHANGE AUTHORITY
General and special funds—Continued

Salaries and expenses

355

NOA
Exp.

1,060
1,048

1,095
1,085

1,119
1,119

24
34

Estimate will continue licensing, auditing, supervisory and investigative
activities, and provide for mandatory salary reform costs.

AGRICULTURAL STABILIZATION AND
CONSERVATION SERVICE

88,484

Sugar Act program

77,650

NOA

95,344

106,550
15,200
100,386
A
15,200

114,562

-7,188

113,562

-2,024

78,000
6,400
86,938
A
6,400

87,500

3,100

87,659

-5,679

225,000
220,090

10,000
-670

Exp.

Agricultural
gram

conservation

pro- NOA
354 Exp.

Cropland conversion program:
Contract authorization
351

NOA

76,929

212,900
210,788
25,000

215,000
220,760

Supplemental in 1964 is to finance the administrative expenses of the
feed grain program enacted after submission of the 1964 budget.
Decrease results from savings to be realized from reducing the percentage of farms measured under wheat and feed-grain programs.

(2,000)
Exp.

3,996

Supplemental in 1964 is for payments resulting from unanticipated increases in production. Increase in 1965 assumes payments to sugar
producers under existing law for increased production.

10,000
10,000
M0,000
40,000
(10,000)
(11,350)
( A 43,000) ( A 47,000)
10,000
11,350
A
A 43,000
41,670

NOA in 1965 is for cost-sharing payments to farmers authorized in 1964;
1965 proposal is $120 million (excluding administration), to be
appropriated in 1966.

Appropriation to liquidate contract authorization.

S
B

Expenses, Agricultural Stabiliza- NOA
tion and Conservation Service.
351 Exp.

351

(2,650) Supplemental in 1964 expands the program to shift cropland to less intensive usage. Proposed legislation would provide for $50 million
-2,680
annually. Supplemental in 1965 would continue program at the new
1964 level.

Conservation reserve program _ 351 NOA
Exp.
Acreage allotments and marketing Exp.
quotas
351

304,000
305,378
78

294,000
293,129
11

meas- Exp.
354

2,701

5,000

Administrative expenses, sec. 392, Exp.
Agricultural Adjustment Act of
1938
355

2,761

Local Administration, sec. 388,
Agricultural Adjustment Act of
1938
355

8,249

Emergency
ures_._

conservation

198,000
200,000

4,936

-96,000
-93,129
-11

Requirements for annual rental payments will decrease in 1965 with
contracts expiring on about 6.7 million acres during 1964.

-64

(Payments are for cost-sharing assistance to farmers to rehabilitate
lands damaged by natural disasters.)

-16

(This account is merged with "Expenses, Agricultural Stabilization and
Conservation Service.")

Intragovernmental funds:

Exp.

Total, Agricultural Stabiliza- NOA
tion and Conservation Service.
Exp.

fel

714,894
699,364

703,550
61,600
717,655
A
64,600

-65

(This account is merged with "Expenses, Agricultural Stabilization and
Conservation Service.")

2
Expenditures for the five following items are the expenditures made
by the Government (through Commodity Credit Corporation) in
each year for the respective program.

Foreign Assistance Programs
General and special funds:

Public Law 480:
1,588,804
Sale of commodities for foreign NOA
currencies
351 Exp. 1,483,030
for NOA
152 Exp.

Losses on long-term sales con- NOA
tracts
351 Exp.
International Wheat Agreement NOA
351 Exp.
A

Proposed for separate transmittal.

J
fel

tr1

635,062 1-90,088
40,000
636,247 1-104,338
A
41,670

FOREIGN ASSISTANCE AND
COMMODITY CREDIT CORPORATION

Grants of commodities
famine relief

1,452,000 1,893,000 441,000
1,609,270 1,081,000 -528,270

Decrease in expenditures results primarily from estimated reduction in
unit costs of .agricultural commodities (principally wheat) sold
abroad for foreign currencies.

250,000
215,593

215,451
245,860

264,000
243,547

48,549
-2,313

Volume of commodities donated is estimated to continue at a slightly
higher level in 1965 with some reduction in ocean transportation costs.

40,000
80,223

52,515
225,305

58,000
297,015

5,485
71,710

It is estimated that long-term sales for dollars will continue to increase
in 1965.

81,218
74,167

86,218
100,603

31,838 -54,380
179 -100,424

It is estimated that domestic wheat prices will not exceed Agreement
prices and subsidies will not be required in 1965.

ftl

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963

1964

1965

Account and functional code

Increase or
decreas

Explanation of NOA requests

DEPARTMENT OF AGRICULTURE—Continued
FOREIGN ASSISTANCE AND COMMODITY CREDIT CORPORATION—Continued
H

Foreign Assistance Programs—Continued
General and special funds—Continued

Bartered materials
mental stockpile

for supple- NOA
351 Exp.

Subtotal

NOA
Exp.

Increase (—) or decrease in
amount owed by general fund to
Commodity Credit Corporation.
Total, foreign
programs.

Exp.

assistance NOA
Exp.

125,000
99,662

82,860
86,338

2,085,022
1,952,675

1,889,044
2,267,376

2,366,838
477,794
1,702.741 -564,635

138,347

-388,347

674,112 1,062,459

2,085,022
2,091,022

1,889,044
1,879,029

120,000
81,000

2,366,838
2,376,853

37,140
-5,338

Estimate is for the value of strategic materials acquired by barter and
transferred to the supplemental stockpile.

Expenditures shown above have been made by the Commodity Credit
Corporation in advance of appropriations in some years. This
adjustment line brings the total of this group to the amounts paid by
the appropriation to the Corporation during each year.

477,794
497,824

Commodity Credit Corporation
Price Support and Related Programs

co
Ox

Public enterprise funds:

Price support and related programs:
351
Contract authorization
NOA
Appropriation to liquidate contract authorization.
Reimbursement for net realized NQA
losses.
Limitation on administrative
expenses.
Exp.

740,513
(315,067)
2,278,455

2,384,333

(599,932) (284,865)
1,124,068 -1,260,265

(43,188)
(37,650)
(41,650)
3,117,377 1,813,227 1,838,717
A
-230,000

(-4,000)
-204,510

Request is for needed capital for the Corporation, reimbursing it for a
portion of its 1963 realized losses.
(Reduction in expenditures of $230 million is based on proposed legislation for new programs for cotton and dairy products.)

Special milk program:
655
Reimbursement for costs for NOA
special milk program.
Exp.
Total, price support and NOA
related programs.
Exp.

92,243
-1.643
3,111,211
3,115,734

(Program is now being financed through an appropriation under the
Agricultural Marketing Service.)

2,384,333
1,813,227

1,124,068 -1,260,265
1,838,717 1-204,510
A-230,000

Special Activities

The facilities of the Commodity Credit Corporation are available by
law for carrying out the various programs listed. Subsequent recovery of costs incurred is made from special revenues, appropriations
or from other agencies.
Intragovernmental funds:

Military housing, barter and exchange
351

Exp.

National Wool Act (permanent, NOA
indefinite)
Migratory waterfowl feed

351

Exp.

351

Exp.

Surplus grain for game birds. _351 Exp.
Loans for conservation
poses

pur354

Exp.

Transfer of long-staple cotton Exp.
from national stockpile for sale
by Commodity Credit Corporation
351

Subtotal
A

NOA
Exp.

Proposed for separate transmittal.

-1,635

-2,416

-2,000

416

69,165
63.165

90,179
79,292

80,500
54.538

-9,679
-24.754

42
36

69,165
69,675

Decrease in 1965 results from non-recurring doubling-up of payments
in 1964 to coincide with marketing year.
(This item now included in Department of Interior.)

(Grain is made available to Department of Interior and to States to feed
starving migratory birds.)

7,900

167

(Receipts are from Department of Defense for housing constructed in
France, using foreign currencies acquired by sale of agricultural
commodities.)

(Corporation funds may be loaned to the Secretary of Agriculture to
carry out the agricultural conservation program. No net borrowings
are expected in 1965.)

305

90,179
77,226

-305

80,500
52.583

-9,679
-24,643

(The Corporation is authorized to sell cotton released from the national
stockpile. Proceeds, less costs incurred, are deposited in the Treasury
as miscellaneous receipts.)

I
00

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963
id fui

1964

1965

code

Explanation of NOA requests

(-)

DEPARTMEN r r OF AGRICULTURE—Continued
FOREIGN ASSISTANCE AND COMMODITY CREDIT CORPORATION—Continued
Commodity Credit Corporation—Continued

Special Activities—Continued
Intragrovernmental funds—Continued
I ncrease or decrease (—) in amount Exp.
owed by general fund for foreign
assistance programs.

d
-138,347

388,347

-674,112 -1,062,459

69,165
-68,672

90,179
465,573

-9,679
80,500
-621,529 -1,087.102

Total, Commodity Credit Cor- NOA
poration price support and Exp.
related programs, and special activities.

3,180,376
3,047.062

2,474,512
2,278,800

1,204,568 -705,865
1,217,188 1-1,291,612
A -230,000

Total, foreign assistance pro- NOA
gram and C o m m o d i t y Exp.
Credit Corporation.

5,265,398
5,138,084

4,363,556
4,157,829

3,571,406
3,594,041
A
-230,000

-792,150
-793,788

6,795

7,058
7,752

6,942
6,799

-116
-953

Total, special activities fi- NOA
nanced by Commodity Exp.
Credit Corporation.

Expenditures made through the Commodity Credit Corporation for
foreign assistance programs are included on the respective lines of
the foreign assistance group. This adjustment brings the total of
this group to the net expenditures for special activities funded by the
Corporation during each year.

I
CO

FEDERAL CROP INSURANCE
CORPORATION
General and special funds:
Operating and administrative ex- NOA
penses
351 Exp.

6,794

Decrease in 1965 is from shift in financing of activities to Office of Inspector General. Program is maintained at the 1964 level.

Public enterprise funds:
Federal Crop Insurance Corporation Fund:
Limitation on administrative
expenses
351 Exp.
Total, Federal Crop Insur- NOA
ance Corporation.
Exp.

(3,265)
7,713

(3,505)
-1,744

(3,649)
-4,096

(144)
-2,352

6,795
14,507

7,058
6,008

6,942
2,703

-116
-3,305

(Increase is for mandatory salary reform costs and expansion of the
crop insurance program in 1964.)

RURAL ELECTRIFICATION ADMINISTRATION
General and special funds:
Loans (authorization to expend NOA
from debt receipts)
353
Exp.

353 NOA
Exp.

10,440
10,396

Total, Rural Electrification NOA
Administration.
Exp.

490,440

Salaries and expenses.

495,000

428,000 1-414,000
-347,000
331,656 A 377,000 A 383,000 1 -3,000
-169,000 -178,000

480,000

1
1

11,518
11,446

11,247
11,056

271
390

NOA of $428 million, plus balance from previous years, will provide
for estimated loan commitments of $300 million for electrification
and $85 million for telephone and for $65 million reserve. Proposed
legislation permits loan receipts to be used to reduce expenditures in
1964, and both NOA and expenditures in 1965.
Increase provides for additional staff and for mandatory salary reform
costs, partly offset by decrease from shift in financing of activities
to the Office of Inspector General.

439,518 1-413,729
-347,000
342,052 A 388,056 A 394,446 1 -2,610
-169,000 -178,000
506,247

FARMERS HOME ADMINISTRATION
Rural housing grants and loans.352 Exp.
Loan authorizations
352
Authorization to expend from NOA
debt receipts
Appropriations
NOA
Exp.
A

Proposed for separate transmittal.

1,006

4,355

2,500

-1,855

50,000
183,197

25,000
135,900

-25,000

20.766 -115,200

(Existing funds are sufficient for enlargement and development loans and
repair and improvement grants through 1965.)
NOA provided in 1963 was for a new program of housing loans to elderly
individuals in rural areas. NOA provided in 1964 is for rural housing
loans to other than the elderly. Expenditures (including use of
balances of prior NOA) will decline in 1965 as the proposed loan insurance program becomes operative.

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963

1964

1965

Account and functional code

Increase or
decreas

Explanation of NOA requests

DEPARTMENT OF AGRICULTURE—Continued

o
a

FARMERS HOME ADMINISTRATION—
Continued
General and special funds—Continued

Salaries and expenses

352 NOA
Exp.

Rural renewal

35,742

38,831

35,690

38,809

352 NOA
Exp.

40,284 1 4,453
3,000
40,800 1 4,841
A
2,850

Increase in 1965 is for administrative costs of expanded programs and
mandatory salary reform costs and is partly offset by decrease from
shift in financing of activities to Office of Inspector General. Supplemental in 1965 is for administrative expenses related to the proposed
insured loan program.

1,200
1,185

2,190
2,185

990
1,000

Estimate provides for 6 projects in a pilot program of technical and loan
assistance to local public bodies for rural economic development.

55,012

77,002

3,431

-73,571

(Receipts and balances will more than cover proposed $325 million loan
program, interest and incidental costs.)

Emergency credit revolving fund Exp.

7,384

13,438

5,865

-7.573

(Receipts and balances will finance estimated $69 million program
including administrative expenses.)

Agricultural credit insurance fund NOA
(indefinite permanent authori- Exp.
zation to expend from debt
receipts)
352

15,071
13,549

3,131
5,063

6,541
5,744

3,410
681

The agency has permanent authority to borrow from Treasury for this
account. Sale of loans will increase in 1965. Contingent liabilities
for insured loans are estimated at $804 million.

1,000

3,500
4,500

5,000
4,525

1,500
25

Estimate in 1965 will increase capital, used for loans to nonprofit institutions to finance rental housing for the elderly in rural areas.

Public enterprise funds:

Direct loan account

352 Exp.

CD
O

Rural housing for the elderly re- NOA
volving fund
352 Exp.

Rural housing insurance
(proposed legislation)

fund NOA
352 Exp.

Total, Farmers Home Admin- NOA
istration.
Exp.

101,813

71,662

295.838

280.252

100,000
A
40,000

100,000
40.000
54,015 | 85,353
A 103,000
85,750 1-151.652
A
42,850

Legislation will be proposed to authorize a revolving fund to finance
insured rural housing loans.

OFFICE OF RURAL AREAS
DEVELOPMENT
General and special funds:

Salaries and expenses

355

120
110

NOA
Exp.

124
124

4
14

Increase is for mandatory salary reform costs.

Intragovernmental funds:

Advances and reimbursements.355 Exp.

-156

367

Total, Office of Rural Areas NOA
Development.
Exp.

-156

120
477

-367
124
124

4
-353

OFFICE OF THE INSPECTOR GENERAL

General and special funds:

Salaries and expenses

355

NOA
Exp.

174
174

9,874
9,850

Provides departmentwide audit and investigation services.
in past years within other accounts.

Financed

OFFICE OF THE GENERAL COUNSEL
Salaries and expenses

355

NOA
Exp.

3,850
3,774

3,967
3,860

3,853
3,-853

-114
-7

Mandatory salary reform costs are more than offset by the shift in
financing of management to Office of Management Services.

1,661
1.577

1,684
1,668

1,648
1,664

-36
-4

Mandatory salary reform costs are more than offset by the shift in
financing of management to Office of Management Services.

OFFICE OF INFORMATION
Salaries and expenses
A

355

NOA
Exp.

Proposed for separate transmittal.

00
Ox

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1963

1964

1965

Increase or
decreas
)

Explanation of NOA requests

DEPARTMENT OF AGRICULTURE—Continued
CENTENNIAL OBSERVANCE OF
AGRICULTURE
General and special funds—Continued

Salaries and expenses. _ __ 355 Exp.

(The purposes of the account have been met.)

NATIONAL AGRICULTURAL LIBRARY
Salaries and expenses
Library facilities

355 NOA
Exp.

1,185
1,154

355 NOA
Exp.

Total, National Agricultural NOA
Library.
Exp.

1,185
1,154

1,426
1,395

1,347
1,254

-79
-141

Mandatory salary reform costs are more than offset by the shift in
financing of management to Office of Management Services.

450
450

7,000
335

6,550
-115

Increase provides for construction of the National Agricultural Library,
Beltsville, Md. Planning funds were provided in 1964.

1,876
1,845

8,347
1,589

6,471
-256

OFFICE OF MANAGEMENT SERVICES
Salaries and expenses. _ _. .355 NOA
Exp.

2,527
2,513

Provides central financing of management services for a number of
smaller Department agencies, previously financed from other accounts.

3,372
3,372

-378
-458

Mandatory salary reform costs and additional assistants in the immediate Office of the Secretary are more than offset by the shift in
financing of management, audit, and investigation to the Office of
Management Services and the Office of the Inspector General.

GENERAL ADMINISTRATION
Salaries and expenses

_ _ 355 NOA
Exp.

3,477
3,250

3,750
3,830

Intragovernmental funds:

W or king capital fund

355 Exp.

Total, general administration. NOA
Exp.

241
3,477
3.491

3,750
3,830

-14

3,372
3.358

-378
-472

FOREST SERVICE
General and special funds:

Forest protection and utilization NOA
402
Cooperative range improvements NOA
(special fund)
402 Exp.
Forest roads and trails
402
Contract authorization:
Current..
NOA
Permanent
NOA
Appropriation to liquidate contract authorization.
Exp.
Access roads

402 NOA
Exp.

Acquisition of lands for national
forests:
Superior National Forest _. _ 402 NOA
Exp.
Special acts (indefinite, special NOA
fund)
402 Exp.
Cache National Forest

402 Exp.

198,392
700
198.238

85,000

Program will construct or reconstruct about 1,900 miles of multipurpose roads mostly to harvest timber. Additions to liquidating
(9,100) cash in 1965 will provide funding for expanded construction program.

(44.500)
39,390

85,000
(63,200)
72,349

2,000
842

2,500

596

-1,904

2,000
785

1,250

650

-600

250
100

150
200

30
3

(72,300)
72.300

-49

F
O
O

Prior balances will acquire interests in roads or rights-of-way; future
activity will be financed in Forest roads and trails.

(Prior balances are used to acquire lands in the Superior National Forest.)

Proposed for separate transmittal.
To carry out authorizing legislation to be proposed.

80,000

Wasatch National Forest.__402 NOA
Exp.
D

189,025 1 197,318 | -4,707 Supplemental in 1964 is for firefighting. Decrease in 1965 results from
13,000
a lower estimate for firefighting offset by increases for forest land
700
700
management, research activities, and mandatory salary reform costs.
192,600 1—17.274
197,874
A
A
12,500
500
A

Certain forest receipts, otherwise payable to counties in Utah, Nevada,
7
and California, are used to acquire lands within national forests.

3
O
•4

(Prior balances are used to acquire lands in the Cache National Forest.)

-100 Completes authorization for purchases of land authorized by Public
Law 87-661.
100
00

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1963
enacted

1964

1965
decrease

Explanation of NOA requests

DEPARTMENT OF AGRICULTURE—Continued

FOREST SERVICE-Continued
General and special funds—Continued

Assistance to States for tree plant- NOA
ing
402 Exp.

1,000
1,201

1,000
1,000

Expenses, brush disposal (perma- NOA
nent, indefinite, special fund) _ _ Exp.
402

8,758
7,642

9,000
8,800

9,200
9,100

200
300

Certain receipts from purchasers of timber are applied to restoration of
timber sale areas.

Roads and trails for States, na- NOA
tional forests fund (permanent, Exp.
indefinite, special fund)
402

10,900
10,900

12,001
12,001

12,400
12,400

399
399

Permanent law makes available 10% of national forest receipts for
construction and maintenance of roads and trails in national forests
within the States from which the receipts were derived.

Forest fire prevention (permanent, NOA
indefinite, special fund)
402 Exp.

28
11

45
29

25
30

-20
1

Fees for use of "Smokey Bear" are available for forest fire prevention
campaign.

Restoration of forest lands and NOA
improvements (permanent, in- Exp
definite, special fund)
402

21
7

100
100

Payments to Minnesota (Cook, NOA
Lake, and St. Louis Counties) Exp.
from the national forest fund
(permanent, indefinite, special
fund)
,
402

125
125

131
131

133
133

Payments to counties, national NOA
grasslands (permanent, indefi- Exp.
nite, special fund)
402

390
394

438
438

450
450

Aid is given, mainly through grants, for reforestation work.

Receipts from claims settlements and forfeitures of deposits are used for
restorations.

2
2

Certain receipts are distributed to three counties in which Superior
National Forest lands are located.

12 Permanent law makes available 25% of national grassland receipts for
payment to counties for schools and roads.
12

d
o
a

Payments to school funds, Arizona NOA
and New Mexico, act of June Exp.
20, 1910 (receipt limitation)
(permanent, indefinite)
402

80
80

100
100

110
110

These States are paid a share of the national forest receipts for school
purposes.

Payments to States, National for- NOA
ests fund (permanent, indefinite, Exp.
special fund) _
_
402

27,235
27.235

29,994
29,994

31,100
31.100

1,106
1,106

With minor exceptions, 25% of the national forest receipts goes to the
States for schools and roads.

-303

607

1 ntragovernmental funds:

Advances and reimbursements.402 Exp.

273

fund,

Forest Exp.
402

-17

-910

Total, Forest Service

NOA

331,659

Exp.

287,116

Total, Department of Agri- NOA
culture.
Exp.

8,031,720

Working capital
Service

-4

327,854 1 337,756
13,000
325,873
320,5861
A
A.500[
12,500
A

7,189,287
A
75,613
7.735,260 7,068,485
A-90,934

-3,098
-17,287
O

6,209,4241 -1,308,948
A -253,472|
6,182,5081 -1,162,986
A
-367,943]

a
to

DEPARTMENT O F C O M M E R C E

GENERAL ADMINISTRATION
General and special funds:

Salaries and expenses

506 NOA
Exp.

3,851
3.864

Participation in Century 21 Ex- Exp.
position
506

1,561

Participation in New York World's Exp.
Fair
506

2,294

Proposed for separate transmittal.

4,000
3,750

4,350
4.100

41
9.232

350
350
-41

2,957

-6.274

Increase is to staff approved positions for the full fiscal year and to meet
mandatory salary reform costs.
(Activity was completed in 1962. Payments are prior obligations.)
(Fair opens Apr. 21, 1964. Government personnel will manage and
maintain exhibits in the Federal pavilion.)

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1963
enacted

1964

1965

Increase or
decrease

Explanation of NOA requests

DEPARTMENT OF COMMERCE—Continued
GENERAL ADMINISTRATION—Con.
Public enterprise funds:

Aviation war risk insurance re- Exp.
volving fund
501
Intragovernmental funds:

Working capital fund _

506 Exp.

Total, general administration. NOA
Exp.

-7

-23

-13

15 (Contingent liability is estimated at $7,312 million.)

w
d

-51
3,851
7,656

4,000
13,000

13,480
13,000

4,350
7,050

350
-5,950

17,500
15,000

4,020
2,000

Technical assistance to disadvantaged areas will be substantially expanded.

35,000
11,000

27,000
1,000

Grants are made to local communities for construction of facilities which
permanently increase employment.

170,000
104,000

38,000
29,400

Cumulative loan reservations at the end of 1965 will total $550 million.
Increase is primarily for urban industrial and public facility loans.

222,500

69,020

130,000

32,400

ECONOMIC DEVELOPMENT
Area Redevelopment Administration
General and special funds:

Operations

507 NOA
Exp.

12,371
11,166

Grants for public facilities

507 NOA
Exp.

35,000
2,853

8,000
10,000

Public enterprise funds:

Area redevelopment fund

507 NOA 115,050
Exp.
24,945

Total, Area Redevelopment NOA
Administration.
Exp.

162,421
38,964

132,000
74,600
145,480 |
8,000
97,600

CO
%

Office of Business Economics
General and special funds:

Salaries and expenses

506 NOA
Exp.

1,875
1,844

Advances and reimbursementS-506 Exp.

Total, Office of Business Eco- NOA
nomics.
Exp.

1,875
1,848

2,000
1,900

2,550
2,400

550
500

2,000
1,900

2,550
2,400

550
500

15,000

1,153

14,590 1
c
20

1,385

Increase is to improve balance of payments computations and selected
portions of the national income accounts. Regional economic work
and the use of automation will be expanded.

Bureau of the Census
General and special funds:

Salaries and expenses

506 NOA
Exp.

12,827
13,813

13,637 j
c
210
13,035
c 190

Supplemental is for special analysis of data on footwear imports. Increase will provide additional population estimates for local areas,
improve construction put-in-place estimates and the quality of export
data, and permit the design of a new retail area sample.

3,071
2,581

8,500
6,900

7,000
5,600

-1,500
-1.300

Major enumeration of the economic censuses will be performed in 1964;
funds in 1965 will provide for processing the data.

506 NOA
Exp.

700
366

1,345
1,300

16,500
14,000

15,155
12,700

Enumeration of the Nation's farms will take place after the fall harvest
of calendar year 1964.

Modernization of automatic data NOA
processing equipment
506 Exp.

4,000
196

4,500
8,000

200
100

-4,300
-7.900

Estimate will permit developmental work in automated document
handling and high-speed input techniques. Decrease reflects computer purchases in 1963 and 1964.

740
600

1,100
800

360
200

Increase will finance a large-scale field test to complete evaluation of
the mail enumeration technique.

1,700
1,100

1,700
1.100

Estimate will provide a current survey of changes in occupancy and
use of various housing units.

1963 censuses of business, trans- NOA
portation, manufactures, and Exp.
mineral industries
506
1964 census of agriculture

Preparation for 19th decennial NOA
census
506 Exp.
National housing inventory. _ _ 506 NOA
Exp.
A
c
D
v
0

Proposed for separate transmittal.
1964 appropriation pending in Congress.
To carry out authorizing legislation to be proposed.
Includes $3,000 thousand to carry out authorizing legislation to be proposed.
Includes $1 10,000 thousand to carry out authorizing legislation to be proposed.

o
o

1
3

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963

1964

1965

Increase or
Explanation of NOA requests

Account and functional code
(-)

DEPARTMENT OF COMMERCE—Continued
ECONOMIC DEVELOPMENT—Continued
Bureau of the Census—Continued
d
1962 census of governments. _-506 NOA
Exp.

1,050
780

350
800

18th decennial census

38
2,840

335

506 NOA
Exp.

1958 censuses of business, manu- Exp.
factures, and mineral industries
506

Final reports and volumes will be printed in 1964.

-350
-780

-315

(Activity was completed in 1963. Expenditures are prior obligations.)
(Activity was completed in prior years.)
U

o
tr1

Advances and reimbursements .506 Exp.
Total, Bureau of the Census. NOA

21,687
-1,205

Exp.

19,393

29,072 j
c
210
30,970
c

190

41,500
36,230 1
c
20

12,218
5,090

CO
OS

Business and Defense Services
Administration
General and special funds:

Salaries and expenses

_ _ 506 NOA
Exp.

3,993
3,993

4,600
4,500

5,000
4,900

400
400

Increased emphasis will be devoted to analyzing commodity data for
use by U.S. exporters and to domestic marketing analysis.

Office of Field Services
Salaries and expenses

506 NOA
Exp.

3,434
3.388

3,725
3,600

4,450
4,300

725
700

Increase provides additional foreign trade staff to stimulate American
firms to seek and expand foreign markets for their products.

7,198
6.299

9,230
8.000

12,600
11,300

3,370
3,300

Increase will further strengthen the export expansion program by
providing additional trade centers and commercial trade fairs which
will enable more American firms to exhibit and develop sales abroad.
Increase will provide for expected rise in number of export licenses issued.

Internationa] Activities
Salaries and expenses

506 NOA
Exp.

Export control

508

NOA
Exp.

3,838
3.727

4,100
4.050

4,625
4,500

525
450

Total, international activities.

NOA
Exp.

11,035
10.026

13,330
12.050

17,225
15,«00

3,895
3.750

Trade adjustment assistance. _506

NOA
Exp.

25
3

100
90

350
150

250
60

Estimate will provide technical assistance to import-injured firms under
the Trade Expansion Act.

Trade adjustment loans and loan
guarantees
506

NOA
Exp.

500
150

Estimate will provide financial assistance to firms that have suffered
because of increased imports.

Total. Office of Trade Adjustment.

NOA
Exp.

25
3

100
90

850
300

750
210

506

NOA
Exp.

3,331
2.902

2,600
2,500

3,950
3,650

1,350
1.150

develop-

NOA

207,801

Exp.

80.518

Office of Trade Adjustment

o
o
S3

U.S. Travel Service
Salaries and expenses
Total, economic
ment.

A
c
|}

Proposed for separate transmittal.
1964 appropriation pending in Congress.
To carry out authorizing legislation to be proposed.

Increase will substantially expand the overseas advertising program.
Visitors from overseas have increased 49% since 1961.

88,908
200,907 1 298,025
8,000
c
210
197,580 1 44.200
153,210
c
c 190
20

A D

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1964

1963

1965

Increase or

Explanation of NOA requests

(-)

DEPARTMENT OF COMMERCE—Continued
SCIENCE AND TECHNOLOGY

General and special funds—Continued

625
3

1,000
100

506 NOA

22,956

Exp.

20,693

24,967
A
55
B
195
23,775
A
55
»170

Construction of surveying ships NOA
506 Exp.

14,400

Civilian industrial technology.506 NOA
Exp.

800

-1,000
700

Contracts for textile research will be executed in 1964 and 1965, and
activity phased out.

29,000

3,783

27,975

4,000

Supplemental ($55 thousand) is for wage board pay increases. Estimate provides funds to operate oceanographic survey ships to be
commissioned in 1965, for workload increases in data processing and
chart production, and for expansion of research and development
activities. A worldwide seismological network, equipped and organized by Department of Defense, will be maintained and operated.

9,000
14,500

-4,000
4,500

The estimate provides for construction of a 2,800-ton semiautomated
oceanographic survey vessel.

600
100

The estimate provides for construction of a magnetic and seismological
observatory.

Coast and Geodetic Survey
Salaries and expenses

Construction and equipment. .506 NOA
Exp.

4,326

Construction and equipment, geo- Exp.
magnetic station
506

Total, Coast and Geodetic NOA
Survey.

37,356

Exp.

25,077

13,000
10,000

(Work is completed. Payments are for prior obligations.)
37,967
A 55
B
195
33,775
A 55
»170

38,600

383

42,575
B25

8,600

Patent Office

Salaries and expenses

506 NOA
Exp.

29,195
28,300

32,000
31,200

2,805
2,900

27,490
26,504

29,195
28,300

32,000
31,200

2,805
2,900

28,165
27,198

28,700
27.914

35,000
32,315

6,300
4,401

500
359

500
513

500
787

274

27,490
26.520

Increase will improve basic examining functions and cover workload
increases. Research and development will be expanded; automation
of the patent copy supply system will be undertaken.

Intragovernmental funds:

Advances and reimbursements306 Exp.
Total, Patent Office

NOA
Exp.

-16

National Bureau of Standards
General and special funds:

Research and technical services.. NOA
506 Exp.

Research and technical services NOA
(special foreign currency pro- Exp.
gram)
506

Estimate will allow development of the National Standard Reference
Data System and increase research by contract, permit initiation of
an engineering standards program of measurement methodologies
of value to industry, and replace research equipment.
Grants are made in "excess currency" countries to support research,
supplementing domestic programs in the physical sciences.

Plant and facilities

506 NOA
Exp.

2,000
1,527

3,000
5,350

3,900
6,800

900
1,450

The estimate will provide for the design and installation of a neutron
physics laboratory, replacement of a standard frequency transmitter,
an isotope separator, and other items.

Construction of facilities

506 NOA
Exp.

30,000
15.833

7,713
29,529

7,000
25,881

-713
-3,648

Estimate will cover the final construction expenses of the new laboratory complex at Gaithersburg, Md.

506 Exp. -3,517

-407

-783

-376

(Estimated Government equity in the fund will be $168 million on June
30. 1965.)

Intragovernmental funds:

Working capital fund
Advances and reimbursements

Exp.
506
Total, National Bureau of NOA
Standards.
Exp.

A
B

60,665
41,405

39,913
62,900

-1
46,400
65,000

Proposed for separate transmittal.
Proposed for separate transmittal. Uniformed Services Pay Act of 1963.

6,487
2,100

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963
enacted

Account and functional code

1964
estimate

1965

Increase or
decrease

Explanation of NOA requests

DEPARTMENT OF COMMERCE—Continued
SCIENCE AND TECHNOLOGY-Con.
Office of Technical Services
General and special funds:
Salaries and expenses.- . _506 NOA
Exp.

1,113
1,099

1,020
950

1,750
1,300

730
350

Increase will strengthen the Office as a clearing house for the acquisition,
indexing, processing, and sale of unclassified Federal research reports
and technical documents.

.506 NOA
Exp.

60,697
60,538

64,498
62,800

68,800
66,150

4,302
3,350

Increase will improve upper air observations, add to centrally produced
forecasts, and disseminate additional data to the field.

Research and development.. .506 NOA
Exp.

11,119
10,818

10,400
9,500

14,100
12,000

3,700
2,500

Increase will finance projects to improve efficiency of Bureau operations,
improve understanding of weather phenomena pertinent to aviation,
develop high altitude sensing equipment, and contribute to atmospheric research and water resources programs.

250

500
250

250
250

Excess currencies will be used to improve foreign observations and to
study problems of climatic and hydrologic cycles in arid regions.

4,800
3,500

1,725
4,000

-3,075
500

Weather Bureau
Salaries and expenses

Research and development (special foreign currency program)
506
Establishment of meteorological
facilities
506

NOA
ExD.
NOA
Exp.

4,325
3.617

Estimate continues the modernization program begun in 1956.

Meteorological
tions

satellite

opera- NOA
506 Exp.

40,000
10,299

16,500

18,000
19,000

18,000
2,500

79,948
92,300

103,125
101,400

23,177
9,100

Estimate includes spacecraft, launches, facilities, and services to obtain
observations of worldwide cloud patterns from satellites.

Intragovernmental funds:

Advances and reimbursements_506 Exp

Total, Weather Bureau.__. NOA
Exp.

116,140
85,294

Total, science and technol- NOA
ogy.

243,389

Exp.

179,382

32,582
189,043 1 221,875
A
55
B
195
242,275 1 23,750
218,325
A
B
55
25
»170

TRANSPORTATION
Inland Waterways Corporation

W
O
O

Public enterprise funds:

Inland Waterways Corporation
Fund_
502
Limitation on administrative
expenses.
Exp.

(2)
-825

(2)
-800

(-2)
800

(On July 19, 1963, Public Law 88-67 repealed the Inland Waterways
Corporation Act. Fund balance has been returned to Treasury.)

12,400

Program includes contracts for 17 ships ($108.6 million), acquisition of
replaced ships ($13.2 million) and administrative expenses.

Maritime Administration
General and special funds:

Ship construction

502 NOA
Exp.

Operating-differential subsidies:
Permanent, indefinite, contract NOA
authorization
502
Liquidation of contract authorization.
Exp.
A
B

64,200
107,912

112,500
103,000

124,900
103.000

200,000

(220,400)
220,677

(216,500)
218,000

(190,000) (-26.500)
208.000 -10.000

Proposed for separate transmittal.
Proposed for separate transmittal, Uniformed Services Pay Act of 1963.

Voyages undertaken under subsidy contracts are estimated to increase
to 1,941 in 1965 from 1,920 in 1964.

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1963
enacted

1964

1965
estimate

Increase or
decrease

Explanation of NOA requests

DEPARTMENT OF COMMERCE—Continued
TRANSPORTATION—Continued

3,550
7,542

7,000
8,000

10,100
9,000

3,100
1.000

Increase is principally assumption of certain costs of experimental
operation of the nuclear ship Savannah previously paid by AEC.

Salaries and expenses

502 NOA
Exp.

15,249
14,738

15,500
15,000

15,750
15,000

250

Estimate provides for continuing of program at substantially the same
level as 1964.

Maritime training

502 NOA
Exp.

3,319
3,284

3,495
3,218

4,484
3,500

989
282

Increase is for improvements to the Federal Maritime Academy and
includes a new library building.

State marine schools
502 NOA
Permanent, indefinite, contract NOA
authorization
.502
Liquidation of contract authorization.
Exp.

250
1,948

250
1,155

550
1,185

300
30

Increase is primarily for preparation of a training ship for Texas academy. Federal aid to State schools will continue at substantially the
same level as 1964.

(1,948)
1,431

(1.155)
1,355

(1.185)
1,857

(30)
502

6,000

5,100

8,100

2,965

-4,288

-7,253

1,392

-390

427

Public enterprise funds:
Federal ship mortgage insurance NOA
fund (permanent, indefinite authorization to expend from pub- Exp.
lie debt receipts)
502
Vessel operations revolving fund__ Exp.
502

W
d
o

Maritime Administration—Continued
General and special funds—Continued
Research and development
502 NOA
Exp.

»3

-5,100

NOA occurs when requirements for payments under guarantees arise.
None are anticipated in 1965. Guarantees involving a contingent
liability of $578 million are estimated to be outstanding at the close
of 1965.
(Fund is substantially self-supporting.)

War risk
fund

insurance

revolving Exp.
502

Intragovernmental fund:
Advances and reimbursements

-361

Exp.

Total, Maritime Administra- NOA
tion.
Exp.

294,516
364,796

-148

-106

42
42

345,000
351.000

356,969
336,000

11,969
-15,000

(Contingent liability in event of war is estimated at $13 billion.)

502

Bureau of Public Roads
Trust funds:
Limitation on general administrative expenses.
Federal-aid highways (liquidation
of contract authorization).
Improvement of the Pentagon
road network.
General and special funds:
Forest highways:
503
Contract authorization:
Current
_.
NQA
Permanent
NOA
Liquidation of contract authorization.
Exp.
Public lands highways:
503
Contract authorization:
Current
NOA
Permanent
NOA
Liquidation of contract authorization
Exp.

W
(4.950) (Increase provides for expanded programs and increased emphasis on
right-of-way investigation, planning, and contract research.)

(3,249,200) (3,249,150) (3,650,000)

(400.850) (Appropriation is to liquidate contract authorization and meet administrative expenses for interstate, primary, secondary, and urban highways. These costs are payable from the highway trust fund.)

(2.000)

(500)

(36,900)
38,794

33,000
(33,000)
34,144

33,000

(33,000)
33,000

15,000
(2,500)
2,136

(-500)

33,000

Control of outdoor advertising.503 NOA
2,000
Exp.
° To carry out authorizing legislation to be proposed.

(43,800)

(48,750)

(38,178)

9.000
(4,000)
7,690
2,000

3,000

(9,000)
9,000

33,000
-33,000

(Financing required to implement a 1961 law has been completed.)

Legislation will be proposed to extend this program at the current level.

-1,144

3,000 Legislation will be proposed to continue this program.
-9,000
(5,000)
1,310

-2,666

(The appropriation is available for incentive payments to States agreeing
to control highway advertising.)

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1964

1963

1965

Increase or

Explanation of NOA requests

(-)

DEPARTMENT OF

COMMERCE—Continued

TRANSPORTATION—Continued
Bureau of Public Roads—Continued
General and special funds—Continued
Inter-American Highway
152 NOA
Contract authorization: Cur- NOA
rent.
Liquidation of contract authorization.
Exp.

The Highway Act of 1962 authorized $32 million to complete the
Inter-American Highway. The 1965 request will permit the
program to proceed on schedule.

9,000

4,000

-5,000

2,961

(6,000)
5,400

7,000

(-6.000)
1,600

Woodrow Wilson Memorial Bridge Exp.
503

241

127

-127

(The bridge was officially opened to traffic in December 1961.)

Access roads (act of Sept. 7, 1950) Exp.
503

130

-130

(The purpose of the appropriation has been met.)

Construction, operation, and Exp.
maintenance of roads, Alaska
503

Study of highway program for NOA
Alaska
503 Exp.

400

Surveys and plans

503 Exp.

Intragovernmental funds:
Advances and reimbursements.503 Exp.
Total, Bureau
Roads.

Public NOA
Exp.

12,000

(The purpose of the appropriation has been met.)

(The 1963 appropriation financed a study authorized in 1962.)

400

-400

95
-206

62,400
44,121

51,000
49,900

-10
40,000
49,000

-11,000
-900

Transportation Research
General and special funds:

Transportation research
Total, transportation

506 NOA
Exp.
NOA
Exp.

Total, Department of Com- NOA
merce.

623
I

2,000
1,000

2,000
1,500

357,539
408,094

398,000
401,100

398,969
386,500

812,580

791,950
A 8,055
B
195

923,219

675,650

785,635
A 55
B
170
c
190

Provides for continuation of program at 1964 level.

500
969
-14,600
122,809

c 210

Exp.

833,405
B
25
C20

47.400

DEPARTMENT OF DEFENSE—MILITARY
MILITARY PERSONNEL
(Functional code 051)
General and special funds:

Military personnel, Army

Military personnel, Navy

A
B
c

NOA

3,612,848

Exp.

3,903,592

_ NOA

2,707,081

Exp.

2,713,509

188,283
3,784,317 1 4,231,000
A 24,400
B
234,000
3,905,000
4.202,600 1 48,000
A
A.700
23,700
B
B
230,300
3,700 J

2,614,683
A
44,000
B
201,000
2,748,000
A 41,400
B
197,600

3,055,000

195,317

3,035,000
A 2,600
B
3,400

54,000

Proposed for separate transmittal.
Proposed for separate transmittal. Uniformed Services Pay Act of 1963.
1964 appropriation pending in Congress.

Supplemental in 1964 is to support an average of 962.995 military
personnel and for part-year costs for military pay increases
effective Oct. 1, 1963. Increase in 1965 is for an increase in
average strength to 974,849, the full year effect of the pay
increase, and lower financing by transfers from revolving funds.
Supplemental in 1964 is to support an average of 666,546 military
personnel and for part-year costs for military pay increases
effective Oct. 1, 1963. Increase in 1965 is for an increase in average strength to 673,657, the full year effect of the pay increase,
and lower financing by transfers from revolving funds.

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963

1964

1965

Increase or

Explanation of NOA requests

(-)

DEPARTMENT OF DEFENSE—MILITARY—Continued

MILITARY PERSONNEL-Continued
(Functional code 051)—Continued
General and special funds—Continued
Military personnel, Marine Corps. NOA

664,951

Exp.

666.468

NOA

4,056,507

Exp.

4,102,712

Military personnel, Air Force

678,600
47,000
678,000
B
47,000

747,000

3,943,000
M46,000
B
286,000
3,973,000

4,389,000

Reserve personnel, Navy_

NOA

222,456

Exp.

186,714

NOA

80,800

Exp.

79,140

10,000
14,000

4,363,000
A 7,800
B
8.200

-10,000

210,100
B
500
209,578
B422

242,900

32,300

235,922
B
78

26,000

92,300
2,800
91,700
B
2,300

99,200

4,100

97,300
B
500

3,800

A.138,200

B277,800
Reserve personnel, Army

735,000

21,400

Supplemental in 1964 is for part-year costs for military pay increases effective Oct. 1, 1963. Increase in 1965 is for the full
year effect of the pay increase.
Supplemental in 1964 is to support an average of 865,089 military
personnel and for part-year costs of military pay increases effective Oct. 1, 1963. Increase in 1965 is for the full year effect of
the pay increase.

Supplemental in 1964 is for part-year costs for military pay increases effective Oct. 1, 1963. Increase in 1965 is for the full
year effect of the pay increase and to provide for an estimated
year-end paid drill strength of 285,000 compared with 264,000 for
1964.
Supplemental in 1964 is for part-year costs for military pay increases effective Oct. 1, 1963. Increase in 1965 is for the full year
effect of the pay increase. The estimate continues a year-end
paid drill strength of 126,000 but provides for an increase in
average strength from 121,200 to 125,300.

Reserve personnel, Marine Corps. NOA

26,800

Exp.

26,504

NOA

48,700

Exp.

48,589

National Guard personnel, Army. NOA

243,474

Exp.

212,242

National Guard personnel. Air NOA
Force.
Exp.

49,300

Reserve personnel, Air Force

28,500 ]
1,400
28,800
B1,200

30,900

1,000

30,800 1
B200

1,000

55,100 1
2,600
53,700
B2.300

59,200

1,500

56,900 |
B300

1,200

242,800 1
B
8,500
239,800
B
7,200

274,500

23,200

264,700 |
B1,300

19,000

69,300

7,800

64,500
B500 1

6,000

Supplemental in 1964 is for part-year costs for military pay increases effective Oct. 1, 1963. Increase in 1965 is for the full year
effect of the pay increase. The estimate continues a year-end
paid drill strength of 45,500.
Supplemental in 1964 is for part-year costs for military pay increases effective Oct. 1,1963. Increase in 1965 is for the full year
effect of the pay increase. The estimate continues a year-end
paid drill strength of 61,000.
Supplemental in 1964 is for part-year costs for military pay increases
effective Oct. 1, 1963. Increase in 1965 is for the full year effect
of the pay increase and to provide for an estimated year-end
paid drill strength of 395,000 compared with 376,000 for 1964.
1

Retired pay. Defense

NOA
Exp.

45,366
1,025,700
1,014,673

58,300 |
3,200
56,300
B 2,700
B

1,143,000 1 1,399,000
A
20,000
B
66,000
1,140,000
1,382,000
A
A
600 1
19,400
B
B
1,400
64,600
A

Increased military compensation NOA
(proposed legislation).
Exp.

A
B

Legislation to be effective Oct. 1, 1964, will be proposed to provide
for increased compensation for military personnel on active duty.

29,000
25,000

Legislation has been proposed to provide a uniform ration for all
services.

14,597,000 1
M72,000

830,900

14,467,722 1
A
172,700
B
19,578

480,000

A
A

NOA

12,738,617

Exp.

12,999,509

12,850,700
A
234,400
B
853,000
13,123,878
A
222,700
B833,422

160,000

Supplemental in 1964 is for an average of 412,446 retired personnel
and for part-year costs for retired pay increases effective Oct. 1,
1963. Increase in 1965 is for an increase in average retired
strength to 466,074 and for the full year effect of the pay increase.

143,000
136,000

Uniform rations (proposed legis- NOA
lation).
Exp.
Total, military personnel

143,000
136,000

170,000

s
3

to
Proposed for separate transmittal.
Proposed for separate transmittal, Uniformed Services Pay Act of 1963.

ANALYSIS OF NEW OBLIGATIONAL

AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued

1963

1964

1965

Increase or

Explanation of NOA requests

(-)

DEPARTMENT OF

DEFENSE—MILITARY—Continued

3,362,554
3,581,763

3,355,902

3,463,000
3,457,000

107,098
42,000

Increase includes expanded testing of air assault concepts, increased
unit training, existence of higher average aircraft inventory, and
mandatory salary reform costs.

2,825,758
2.863,985

2,908,955
2,926,000

3,159,000

250,045
181,000

Increase includes costs of greater numbers of replacement fuel cores
for nuclear-powered ships, improvements in submarine safety,
additional Polaris submarines in the fleet, and higher costs of
operating and maintaining more complex ships and aircraft.

OPERATION AND MAINTENANCE
(Functional code 051)
General and special funds—Continued
Operation and maintenance, NOA
Army.
Exp.
Operation and maintenance,
Navy.

NOA
Exp.

Operation and maintenance, Ma- NOA
rine Corps.
Exp.

188,189
190,743

3,415,000

3,107,000

191,306
189,000

188,000
188,000

-3,306
-1,000

Estimate continues support of 3 divisions and 3 air wings at a high
state of combat readiness.

4,606,000
4,549,000

269,113
135,000

Increase reflects higher operating costs of modern and improved
electronic equipment and aircraft, and an increase in joint
exercises with other services, including airlift of Army troops
and equipment to oversea areas for short periods of field training.

516,986
506,000

39,332
45,000

Increase reflects further consolidation of intelligence activities from
the military departments and the cost of the Defense Communications System.

7,210
8,000

Increase reflects completion of conversion from Nike-Ajax to Hercules air defense units, mandatory salary reform costs, and cost
of maintaining higher equipment levels.

13,300

Increase is mainly to allow additional flying hours and to cover
higher aircraft operating costs and mandatory salary reform
costs.

Operation and maintenance, Air
Force.

NOA
Exp.

4,355,819

4,336,887

4,488,812

4,414,000

Operation and maintenance,
Defense agencies.

NOA
Exp.

356,077

477,654

318,421

461,000

Operation and maintenance, Army
National Guard.

NOA
Exp.

174,379

180,790
179,000

188,000

Operation and maintenance, Air NOA
National Guard.
Exp.

194,400

222,700
221,000

236,000
230,000

174,221

193,301

187,000

9,000

3
w

National Board for the Promotion NOA
of Rifle Practice, Army.
Exp.

622
650

528
500

484
500

-44

Lease costs of the national match site will be lower in 1965.

Claims, Defense

NOA
Exp.

22,300
21,211

19,000
20,000

23,000
21,800

4,000
1,800

Additional lump-sum settlements and higher costs of foreign claims
are expected.

Contingencies, Defense

NOA
Exp.

15,000
10,909

15,000
14,000

15,000
15,000

1,000

This account provides the Secretary of Defense with funds to meet
emergencies and extraordinary expenses.

Court of Military Appeals, De- NOA
Exp.
fense.

472
462

509
500

530
500

Operation
and
maintenance, Exp.
Alaska Communication System,
Army.

688

Miscellaneous expired accounts, Exp.
Department of Defense.

28,451

29,987

16,200

-13,787

Total, operation and main- NOA
tenance.
Exp.

11,495,569
11,873,616

11,709,231
11,870,000

12,396,000
12,278,000

686,769
408,000

Procurement of equipment and NOA
missiles, Army.
Exp.

2,519,186
2,370,713

2,931,094
2,604,000

l,779,000 -1,152,094
2,376,000 -228,000

Program is directed at filling combat essential equipment allowances
for the reorganized Army division (ROAD) active and reserve
force, and providing inventories adequate for sustained combat
operations. Modernization of older materiel is continued. Decrease reflects reduced procurement of materiel as stocks approach
inventory objectives.

Procurement of aircraft and mis- NOA
siles, Navy.
Exp.

3,034,660
2,725,779

2,889,145
2,862,000

-374,145
-222,000

Decrease results mainly from (a) major reprograming of prior year
funds for 1965 needs; (b) decline in aircraft modifications with
completion of the heavy reconnaissance (A-5C) program, and
(c) drop in procurement of Polaris missiles upon attainment of
improved inventory position.

21
-13

Caseload is expected to continue at about the 1963 level of 834.
(Transferred to "Operation and maintenance, Air Force." Expenditures are from 1962 and prior appropriations.)

PROCUREMENT

(Functional code 051)

D
E

To carry out authorizing legislation to be proposed.
Partly to carry out authorizing legislation to be proposed.

2,515,000
2,640,000

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963

Account and funttional code

1964

1965

Increase or

Explanation of NOA request*

(-)

DEPARTMENT OF

DEFENSE—MILITARY—Continued

PROCUREMENT—Continued
(Functional code 051)—Continued
General and special funds—Continued
Shipbuilding and conversion, NOA
Navy.
Exp.

Other procurement, Navy

NOA
Exp.

a
2,919,200
2,550.881

903,600
826,633

2,059,589 D1,966,000
2,120,000
2,290,000

256,000
185,305

201,960
205,000

Aircraft procurement, Air Force. _ NOA
Exp.

3,562,400

3,385,575

3,746,089

4,010,000

Missile procurement, Air Force. __ NOA
Exp.

2,459,000

2,141,990

2,675,807

2,118,000

Modernization of fleet equipment and weapons will continue, with
emphasis on antisubmarine forces. Decrease reflects prior
financing available for 1965.

181,000
188,000

-20,960

The program will continue to improve firepower, mobility, and
communications. Decrease reflects reduced procurement of
ammunition and ordnance, support vehicles, engineer and other
equipment as stocks approach inventory objectives.

3,663,000
3,460,000

277,425
-550,000

Provides for procurement of 889 new aircraft, compared with 840
in 1964. Emphasis continues on tactical and airlift aircraft.
Increase reflects higher procurement of spares and repair parts,
and modification of B-52 strategic bombers, partly offset by
reduced sales and recoupments from prior year programs.

1,730,000
2,050,000

-411,990
-68,000

Program continues procurement of the Minuteman intercontinental
ballistic missile and Bullpup, Sparrow, and Shrike missiles.
Modifications to existing ballistic missiles are also provided for.
Decrease reflects reduction in ballistic missile requirements.

991,000
E

-170,000

Funding includes new construction of 6 nuclear attack submarines,
16 escort ships, 10 amphibious assault ships, 7 ships to replenish
warships at sea, and additional supporting ships, gunboats, and
small craft. Decrease reflects completion of funding for Polaris
submarines in 1964.

-117,231
44,000

1,058,000

1,175,231
947,000

NOA
Exp.

Procurement, Marine Corps

-93,589

-17,000

i
CO

NOA
Exp.

956,162
1,251,222

878,299
1,110,000

802,000
900,000

-76,299
-210,000

The program will continue procurement of conventional ordnance
and intelligence, warning, communications and control systems,
primarily to improve air defense and conventional war capabilities.
Principal decreases are in procurement of electronics, telecommunications, and automatic data processing equipment for
communications and intelligence programs.

Procurement, Defense agencies. __ NOA
Exp.

36,902
6,774

43,164
40,000

62,000
50,000

18,836
10,000

Increase reflects higher procurement of electronic equipment by the
Defense Communication Agency and by other departmentwide
activities.

Aircraft and related procurement, Exp.
Navy.

292,353

151,000

10,000

-141,000

16,647,110
16,631,555

15,706,047
16,337,000

1,329,434
1,354.425

1,386,091
1,373,000

1,540,713
1,487,000

Other procurement, Air Force

Total, procurement

NOA
Exp.

(Program needs are now provided in other appropriations above.)

13,756,000 -1,950,047
14.785.000 -1,552,000

fed

RESEARCH, DEVELOPMENT, TEST,
AND EVALUATION

(Functional code 051)
Research, development, test, and NOA
evaluation, Army.
Exp.
Research, development, test, and NOA
evaluation, Navy.
Exp.

1,510,602
1,429,341

Research, development, test, and NOA
evaluation, Air Force.
Exp.

3,697,592
3,300,374

3,481,434
3,623,000

Research, development, test, and NOA
evaluation, Defense agencies.
Exp.

450,755
291,424

439,942
410,000

D
E

To carry out authorizing legislation to be proposed.
Partly to carry out authorizing legislation to be proposed.

1,397,000
1.365,000

10,909
-8,000

Increase is for additional work in development of advanced antiballistic missile defense, and continued emphasis on improved
weaponry and equipment for limited and remote area warfare.

1,451,000
1,458,000

-89,713
-29,000

Increases for antisubmarine warfare development are more than
offset by phasing down improvement work on the Polaris missile.

3,205,000
3,237,000

-276,434
-386,000

Decrease reflects the phaseout of research and development on
major missile and aircraft programs and the reorientation of the
military space program. These developments more than offset
new programs to be initiated.

79,058
60,000

Increase is primarily to attain readiness posture for nuclear weapons
effects tests and for accelerated development of nuclear test
detection techniques as safeguards under the test ban treaty.

519,000
470,000

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963
enacted

Account and functional code

1964
estimate

1965

8
00

Explanation of NOA requests

decrease

DEPARTMENT OF DEFENSE—MILITARY—Continued
RESEARCH, DEVELOPMENT, TEST,
AND EVALUATION—Continued
W

(Functional code 051)—Continued

General and special funds—Continued
Emergency fund, Defense
NOA
Exp.

4,904

Total, research, development, NOA
test, and evaluation.
Exp.

101,000
50,000

150,000

6,993,287
6.375,564

6,949,180
6,943,000

6,722,000
6,580.000

151,407
145.078

200,646
175,000

49,000

50,000

This appropriation provides funds for transfer to program appropriations for prompt exploitation of research and development
opportunities.

-227,180
-363,000

MILITARY CONSTRUCTION
(Functional code 051)
Military construction, Army

NOA
Exp.

408,000
251,000

207,354
76,000

Increase is largely for construction in relocating Nike-Hercules air
defense units, replacement of World War II troop housing and
bachelor officer quarters, classified facilities, and other essential
projects previously deferred.

NOA
Exp.

161,354
190.186

198,853
202,000

278,000
225,000

79,147
23,000

Increase is for essential projects previously deferred and construction to replace deteriorated hospital facilities.

Military construction, Air Force. _ NOA
Exp.

780,068
715,438

468,275
614.000

406,000
500,000

-62,275
-114.000

Estimate includes construction for an additional hardened Minuteman squadron, improvement of previously authorized Minuteman and Titan missile sites, and new facilities for strategic, tactical, and air defense aircraft forces. Decrease reflects offsetting
reductions in construction of missile facilities.

Military construction, Navy

Military construction,
agencies.

Defense NOA
Exp.

49,777
7,468

24,000
39,000

Military construction, Army Re- NOA
Exp.
serve.

8,000
14,816

Military construction, Naval Re- NOA
ExP.
serve.

34,000
30.000

10,000
-9.000

Increase is for essential projects previously deferred.

4,500
10,500

5,000
8,000

500
-2.500

Estimate will continue construction at about the 1964 level.

7,000
5.598

6,000
8,000

7,000
7,000

1,000
-1,000

Estimate provides for continuation of the 1964 program level. Reprograming in 1964 permitted reduction in funding for that year.

Military construction, Air Force NOA
Exp.
Reserve.

5,000
4.633

4,000
6,000

5,000
5,000

1,000
-1,000

Estimate provides for continuation of the 1964 program level.
Savings in 1963 permitted a reduction in 1964 funding.

Military construction, Army Na- NOA
Exp.
tional Guard.

7,000
18,383

5,700
15.000

6,000
10,000

300
-5,000

Completion of the most urgent requirements allows a declining
level of armory construction in 1964 and 1965.

Military construction, Air Na- NOA
Exp.
tional Guard.

14,000
21.913

16,000
17.000

14,000
15,000

-2,000
-2.000

Decrease reflects a declining level of construction as the most
urgent requirements are completed.

Loran stations, Defense

NOA
Exp.

20,000
20,000

20,500
20.500

5,000
5.000

-15,500
-15.500

Estimate provides for continued expansion of this navigation system.

Construction, Alaska CommunicaExp.
tion System, Army.

4
1,168,000
1.056.000

219,526
-51.000

73,594
-20,000

Total, military construction.

NOA
Exp.

1,203,606
1,143.518

948,474
1,107.000

NOA
ExP.

590,326
426,658

637,406
680.000

o
o

FAMILY HOUSING
(Functional code 051)
Family housing, Defense
D
E

711,000
660,000

Provides the third increment of a construction program for military
housing—12,500 units, or 5,000 more than in 1964.

To carry out authorizing legislation to be proposed.
Partly to carry out authorizing legislation to be proposed.

ANALYSIS OF NEWOBLIGATIONAL AUTHORITY AND EXPENDITURES BY

AGENCY (in thousands of dollars)—Continued

to
1963

1965

1964

Increase or
Explanation of NOA requests

Account and functional code

(-)
DEPARTMENT OF

DEFENSE—MILITARY—Continued

CIVIL DEFENSE
(Functional code 051)
General and special funds—Continued
Operation and maintenance, civil NOA
defense.
Exp.

72,845
34,457

70,312
75,000

Shelter, construction and research NOA
and development, civil defense.
Exp.

53,000
10,070

41,250
47,500

Civil defense, Department of De- Exp.
fense.

156,347

Construction of facilities, Depart- Exp.
ment of Defense.

1,740

Total, civil defense

92,400
80,000

22,088
5,000

Increase reflects improved attack warning, radioactivity detection,
and emergency broadcasting systems; expanded defense training
programs; and additional matching funds to support the expanding civil defense efforts of State and local governments.

265,600
68,000

224,350
20,500

Estimate includes additional public shelters, under proposed legislation, funds to stock available shelters with survival supplies and
equipment and for additional studies on population survival
techniques.

27,003

1,000

-26,000

(Obligations incurred in 1962 and prior years are liquidated under
this account.)

500

1,000

500

(Funds to construct Federal regional operating centers for both dayto-day and emergency operations were used for one facility at
Denton, Tex.; remaining funds will provide a center in Massachusetts and for site surveys and preliminary planning for 6 others.)

358,000
150,000

246,438

NOA
Exp.

125,845
202,614'

111,562
150,000

NOA
Exp.

1,325,000
1,720,755

1,000,000
1,400,000

MILITARY ASSISTANCE
(Functional code 051)
Military assistance, Defense

1,000,000
1,200,000

-200,000

The 1965 program of grant military assistance remains at the 1964
level. Program composition, however, reflects the increased
ability of some countries to finance their own military needs.

d
o
o

REVOLVING AND MANAGEMENT
FUNDS
(Functional code 051)
Public enterprise funds:
Defense production guarantees, Exp.
Army.

-72

-80

-75

5
-2,714

Defense production
Navy.

guarantees, Exp.

-696

3,008

294

Defense production
Air Force.

guarantees, Exp.

4,436

785

-24

-41

100

Laundry service, Naval Academy- Exp.

Civil defense procurement fund. _ _ Exp.
Intragovernmental funds:
Army stock fund

(Estimate contemplates receipts and expenditures of approximately
$725 thousand, the same as the 1964 level.)
(No change is anticipated in the level of equipment procurement
for State and local government emergency centers.)

-60,000

(Sales will exceed purchases in 1965 reflecting the sale of stock not
requiring replacement.)

2,000

-11,000

-13,000

(Sales will exceed purchases in 1965 reflecting the sale of stock not
requiring replacement.)

21,954

-22,000

-4,200

17,800

(Collections will exceed expenditures in 1964 as a result of inventory
reductions and mechanization of fuels billing procedures.)

Exp.

-216,735

-170,000

-150,000

20,000

(Estimate reflects lesser availability of stock for sale without replacement.)

Exp.

-389,847

-72,887

49,000

121,887

(Expenditures will exceed collections in 1965 as work is accomplished on prepaid orders.)

67.459

Marine Corps stock fund (contract NOA
authorization.)
Exp.

889
12.776

Air Force stock fund

Exp.

Defense stock fund

Army industrial fund

To carry out authorizing legislation to be proposed.
Partly to carry out authorizing legislation to be propos

-1

(Estimate reflects lesser availability of stock for sale without replacement.)

Exp.

(No change in the level of purchase of defaulted loans is forecast.)

32,000

-71.421

(A reduction in loan activity is forecast with an accompanying
reduction in revenues.)

-43,800

Exp.

Navy stock fund

(A reduction in loan activity is forecast resulting in reduced revenues.)

-75,800

d
W
O

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963
enacted

Account and functional code

1964
stimate

1965
:stimat<

Increase or
decrease

Explanation of NOA requests

W
DEPARTMENT OF DEFENSE—MILITARY—Continued
REVOLVING AND MANAGEMENT
FUNDS—Continued

d
o

(Functional code 051)—Continued
Navy industrial fund

Exp.

-812,293

-9,684

Air Force industrial fund

Exp.

-4,195

-7,411

Defense industrial fund

Exp.

-2,325

-1,300

Army management fund

Exp.

-4,617

Navy management fund

Exp.

-16,172

Air Force management fund

Exp.

63,787
-794

73,471
6,617

(Collections were very high in 1964 because of improved billing
procedures.)

1,300

(Collections exceed expenditures in 1964 because of customers' prepayments.)

-17,693

-15,000

2,693

190

100

309

209

Defense agencies management Exp.
fund.

5,542

Naval working fund

4,313

2,042

___ Exp.

-61
1,514

(Work performed in 1965 will be partly financed from customers'
prepayments in prior years.)

-528

(Fund will operate at $295 million level in 1965.)
(Total activity of $1.6 billion is forecast for 1965.)
(Expenditures reflect the liquidation of prior year obligations.)
(Fund is not to be used in 1965.)
(Estimate reflects a decrease in activity with the 1965 level at $18
million.)

h-1

o
tr1

1,157

1,753

-1,400,613

-367,000

Total Department of De- NOA 51,120,250
fense—Military.

49,912,600
A
234,400
B 853,000
51,243,878
A
222,700
B833,422

Consolidated working funds, Exp.
Army,
Total, revolving and manage- NOA
funds.
Exp.

Exp.

49,973,176

-1,753

-169,000

(Use of this account has been discontinued.
liquidation of prior year obligations.)

Estimate reflects

198,000

50,708,000 1-120,000
A
172,000
51,007,722
A

-1,100,000

172,700
19,578

DEPARTMENT OF DEFENSE—CIVIL
tr1

DEPARTMENT OF THE ARMY
Cemeterial Expenses

General and special funds:

Salaries and expenses

805

10,800
10,900

NOA
Exp.

13,295
11,865

2,495 Increases of 7% in interments and 5% in headstone applications are
expected, as well as higher maintenance workload. Increase also
965
includes $1.5 million in construction activity.

Corps of Engineers—Civil
General investigations

401

NOA
Exp.

18,100
16,797

19,115
19,300

19,760
19,600

645 Provides funds for 211 flood control, navigation, and beach erosion
300
studies, of which 20 will be initiated in 1965, and maintains progress on
19 comprehensive river basin surveys and 5 special studies. A program
to develop construction uses of nuclear explosives will continue.

Construction, general.

A
B

_401

NOA
Exp.

792,870
813,273

827,146
811,300

880,143
865,800

Proposed for separate transmittal.
Proposed for separate transmittal, Uniformed Services Pay Act of 1963.

52,996 Continues construction on 217 projects. Forty-eight projects, costing

54,500

$526 million, will be completed, and construction on 34 projects,
costing $378 million will be started. Also, provides for preconstruction planning on 105 projects, including 14 on which planning will
start in 1965.

to
CO

ANALYSIS OF NEWOBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1965

1964

1963

Explanation of NOA requests

(-)
DEPARTMENT OF DEFENSE—CIVIL—Continued

DEPARTMENT OF THE ARMY—Con.
Corps of Engineers—Civil—Continued

to
d

General and special funds—Continued

Operation and maintenance, gen- NOA
eral
401
Exp.

145,850
141,200

2,876 A supplemental for 1964 is for increased wage board pay. Workload
154,000 1 158,676
A
in 1965 involves maintenance of 456 projects.
1,800 f
155,400 1 -1,000
154,800
A 100
A.I ,700
4,150
6,000

Flood control, hurricane and shore NOA
protection emergencies
401 Exp.

1 4,150

6,000

a
a

Provides for emergency operations to combat flood disaster situations,
previously funded under "Operation and maintenance, general."
CO

575 Increase provides for management and supervision of greater program
workload.
500

401 NOA
Exp.

14,165
14,268

15,000
15,000

15,575
15,500

Flood control, Mississippi River NOA
and tributaries
401 Exp.

73,504
82,042

77,862
73,600

71,860
72,100

United States section, Saint Law- NOA
rence River Joint Board of Exp.
Engineers
401

10
10

-10

International
gresses

con- Exp.
401

-7

(Final costs will be liquidated in 1964.)

Payments to States, Flood Con- NOA
trol Act of 1954 (permanent, Exp.
indefinite, special fund)
401

1,719
1.614

1,828
1,719

109

Three-fourths of receipts from lease of Federal lands acquired for flood
control, navigation and allied purposes are paid to States in which the
projects are situated.

General expenses

navigation

-6,002
-1,500

Provides for increased operation and maintenance requirements and
continues construction on 12 major project features. Two flood
control studies will be started.
Activities of the Board are expected to terminate in 1964.

-10

1,828
1,828

o
>

Hydraulic mining in California, NOA
debris fund (permanent, indefi- Exp.
nite, special fund)
401

18
17

18
24

18
18

Maintenance and operation of NOA
dams and other improvements Exp.
of navigable waters (permanent, i n d e f i n i t e , special
fund)
401

154
154

Advances and reimbursements, Exp.
Corps of Engineers—Civil __ 401

-10

Revolving fund, Corps of Engi- Exp.
neers—Civil
401

2,552

-2.500

Total, Corps of Engineers— NOA
Civil.
Exp.

1,046,401

-6

Fees paid by mine operators for depositing mine debris in restraining
works are used for their maintenance.
Half of the receipts from licenses issued by the Federal Power Commission for non-Federal projects on navigable waters are used for maintenance and operation of dams and other navigational structures and
for navigation improvements.

Intragovernmental funds:

1,071,923

-28
-3.500

-1,000

1,095,133 11,152,164
A
1,800
1,073,442 1,132.900
A
A 100
1,700

55,230

(The fund provides centralized services and facilities to agency programs. Repayments will rise in 1965 in relation to expenditures.)

57,858

UNITED STATES SOLDIERS' HOME

Trust fund:

Limitation on operation and maintenance and capital outlay.

(146) Increase provides for estimated rise from 1,798 to 1,991 domiciliary
members, and from 423 to 449 hospital patients.

(6,272)

(6.622)
( A 120)

(6,888)

8,954
8,387

10,000
9.600

14,441
12,300

4,441
2,700

7.900

2.200

-5,700

10,000
17,500

14,441
14,500

4,441
-3.000

RYUKYU ISLANDS, ARMY
General and special funds:

Administration

910 NOA
Exp.

Construction of power systems Exp.
910
Total, Ryukyu Islands, Army NOA
Exp.
A

Proposed for separate transmittal.

8,954
8,387

Grants for assistance to the Ryukyuan economy and government will
increase by $4.1 million to a total of $12 million, the full amount
authorized.

(Expenditures are in the form of loans from prior year funds.)

to
Ox

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands cf dollars)—Continued
1963

1964

1965

Increase or
decreas

Account and functional code

Explanation of NOA requests

DEPARTMENT OF DEFENSE—CIVIL—Continued
THE PANAMA CANAL
General and special funds:

Canal Zone Government:
Operating expenses
Capital outlay

28,774

910 NOA
Exp.

23,406
22,645

25,725
26,000

28,549

3,049
2,549

Increase will permit expanded operation of schools and hospitals to accommodate added Zone-based military personnel and dependents.

910 NOA
Exp.

3,120
4,075

6,500
6,000

4,821
5,245

-1,679
-755

Provides $2,842 thousand for needed educational facilities, $795 thousand for health and sanitation, and $ 1,184 thousand for other needs.

1,716

137

P a n a m a C a n a l C o m p a n y : Exp.
Thatcher Ferry Bridge
502

-137

(Thatcher Ferry Bridge went into service on Oct. 12, 1962.)
Xfl

o
>

Public enterprise funds:

Panama Canal Company: Panama
Canal Company fund 502
Limitation on general and
administrative expenses.

(8,058)

(9,285)

(10,639)

Exp.

8,364

5,506

-944

Total, The Panama Canal. NOA
Exp.

26,526
36,800

32,225
37,643

33,595
32,850

-4,793

32
5

80
76

90
90

10
14

(1.354) (Provides for strengthening the direction and management of administrative services.)
-6,450 (Decrease results from a net drop in capital outlay and operating expenses of $1.8 million and an increase in revenues of $4.6 million.)
1,370

MISCELLANEOUS ACCOUNTS
General and special funds:

Wildlife conservation, etc., mili- NOA
tary reservations, Army (per- Exp.
manent,
indefinite,
special
fund)
404

Game permit fees are used to carry out a program of fish and game conservation.

Wildlife conservation, etc., mili- NOA
tary reservations, Navy (per- Exp.
manent,
indefinite,
special
fund)
404

Game permit fees are used to carry out a program of fish and game conservation.

Wildlife conservation, etc., mili- NOA
tary reservations, Air Force Exp.
(permanent, indefinite, special
fund)
404

28
28

30
29

Total, miscellaneous accounts NOA
Exp.

60
33

115

125

124

Total, Department of De- NOA 1,092,274
fense—Civil.
1,128,066
Exp.

1,148,274
A
1,800
1,139,595
A 1,700

1,213,620

63,546

1,192,239 1
A 100

51,044

Game permit fees are used to carry out a program of fish and game
conservation.

DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE
FOOD AND DRUG ADMINISTRATION

o
o

General and special funds:

Salaries and expenses

Buildings and facilities
Pharmacological-animal
tory building

651

NOA
Exp.

labora- Exp.
651

Proposed for separate transmittal.

26,672

NOA
Exp.

Salaries and expenses, certification NOA
and other services (indefinite special fund)
651 Exp.
A

29,062

651
1,890

35,687
33,287

39,500

3,813

38,100

4,813

Consumer protection will be strengthened with emphasis on research
and scientific evaluations required to set tolerances for pesticides,
food and color additives, and drugs.

4,466
852

11,025
4,052

6,559
3,200

Provides new headquarters laboratory, new and improved district
facilities, and preparation of a master plan for Beltsville, Md., site.

1,001

142

-859

(Laboratory will be completed in 1964 from prior year's financing.)

4
>

(Account was converted into a self-sustaining public enterprise fund in
1964.)

1,907
to

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued

to
00

1964

1963

1965

Increase or

Explanation of NOA requests

DEPARTMENT OF HEALTH , EDUCATION, AND WELFARE—Continued
FOOD AND DRUG ADMINISTRATION—
Continued
W

Public enterprise funds:
Certification and other services_651 Exp.
Intragovemmental funds:
Advances and reimbursements _651 Exp.

-4

Total, Food and Drug Ad* NOA
ministration
Exp.

30,951
29,227

-40

506

546

40,153
35,100

50,525
42,800

10,372
7,700

(Industry fees finance the certification of antibiotic drugs, insulin, and
color additives and establishment of tolerances for pesticides.)

OFFICE OF EDUCATION
General and special funds:
Expansion and improvement of NOA
vocational education
704
Exp.

o
34,716
34,330

Higher education facilities con- NOA
struction
702 Exp.

Further endowment of colleges of NOA
agriculture and the mechanic a rts Exp.
702
Grants for library services

704 NOA
Exp.

34,756 1
60,000
34,370
A16.600

A 266,750
A
2,800

183,296
A

88,540

69,900 1 54,330
35,400

464,000
197,250
20,400 1 35,300
A
17,700

Supplemental in 1964 will initiate programs authorized in the Vocational Education Act of 1963. Estimate in 1965 provides for increases
as authorized in the Act and for costs of activities authorized by
earlier legislation.
Supplemental in 1964 will initiate programs authorized in the Higher
Education Facilities Act of 1963. Estimate in 1965 provides for
increases in grants and loans to assist in construction of classroom,
laboratory, and library facilities at colleges and technical institutes.

11,950
11,950

Grants for land-grant colleges will continue at maximum authorized
level.

7,500
7,257

7,500
7,500

Continues support for rural library services at maximum authorized
level.

Payments to school districts _ _ 701 NOA
Exp.
Assistance for school construction NOA
701
Exp.
Defense educational activities:
(Assistance for elementary and NOA
secondary education)
701
Exp.
(Assistance for higher educa- NOA
tion)
702
Exp.
(Other aids to education) _ _704

282,322
276.869

104,466 ) 359,450
38,780 Supplemental in 1964 finances recently enacted legislation extending
authorization for part of program which expired June 30, 1963. Pay216,204
263.796
ments will be made in 1965 on behalf of 100,000 additional children
145,000
A
A
71.204 1 45.000
whose parents work or reside on Federal property.
145,000

63,686
A

66.242

23,740 1 58,400
36,606
41,700
58,200
A
A
18.300
1,800
62,750 1
2,500
58,880 1
A
2,500

72,750

-1,946

-•

84,100

18,850

75,785

14.405

48.690
118,697

13,982
118,650 | 165,390
32,758
160.511 1 12,789
118,280
A
A
1,658
31,100
A

116.476

Supplemental in 1964 finances recently enacted legislation extending
authorization for part of program which expired June 30, 1963.
Grants will be made in 1965 for construction of about 2,700 classrooms
for 80,000 pupils whose parents live or work on Federal property.
The 1964 supplemental will initiate programs authorized in Part B of
the Vocational Education Act of 1963. The Act authorizes an expansion of grants to States for science, mathematics, and foreign
language laboratory equipment and for guidance and counseling
programs. It also authorizes expansion of student loans and refilling
vacated graduate fellowships. Grants for vocational training in the
skilled trades, support for teacher training institutes, and research
programs will continue at about the 1964 level.

NOA
Exp.

38,003
33,169

Total, Defense educational NOA
activities.
Exp.

229,450

Expansion of teaching in education NOA
of the mentally retarded. __704 Exp.

1,000
960

850

-850

(Account is merged with Educational improvement for the handicapped
in 1964.)

Expansion of teaching in education NOA
of the deaf
704 Exp.

1,500
1,383

1,594

-1,594

(Account is merged with Educational improvement for the handicapped
in 1964.)

Educational improvement for the NOA
handicapped
704
Exp.
A
c

Proposed for separate transmittal.
1964 appropriation pending in Congress.

38,220
38,840

38,400
38,346

180
-494

33,012
219,620 1 287,890
35,258
274,642 1 26,700
216,000
A
A
1.658
33,600
A

198,336

2,500 )
11,685
150
c1,930

16,500
C

3.205 1
9,755

2,315
10.880

Supplemental in 1964 will initiate program, authorized in recent legislation, which provides grants for teacher training and for research
relating to the education of handicapped children.

to
I—i
CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963

1964

1965

Increase or

(-)

Explanation of NOA requests

DEPARTMENT OF HEALTH , EDUCATION, AND WELFARE—Continued

H
W

OFFICE OF EDUCATION—Continued
General and special funds—Continued
Cooperative research
704 NOA
Exp.
Educational research (special for- NOA
eign currency program)
704 Exp.

5,015

11,500
8,300

17,000
13,000

5,500
4,700

Increases are to develop course content material, improve teacher training, demonstrate research findings, and identify research gaps.

400
20

500
300

500
400

100

Excess foreign currencies support research in foreign countries, supplementing studies to improve education in the United States.

1,500
300

1,500
1,500

1,200

Grants are awarded for academic year and short-term study abroad to
improve the teaching of modern foreign language and area studies.

14,761 J
M,000

19,699

3,938

6,985

Foreign language training and area NOA
studies
704 Exp.
Salaries and expenses

704 NOA

12,645

Exp.

12,041

18,790 1
MOO

14,000
A
900

d
o

3
w

s
I—(

Supplemental in 1964 will provide for administrative costs of the Higher
Education Facilities and Vocational Education Acts of 1963. Emphasis in 1965 is on data collection, surveys, and consultative services
3,990
to improve the quality of education.
CO

Proposed education program (pro- NOA
posed legislation)
700 Exp.

Colleges of agriculture and the NOA
mechanic arts (permanent) .702 Exp.

5,000
A
3,000

2,550
2,550

718,400
A
118,000

2,550
2,550

713,400

115,000

Pending legislation will increase educational opportunities for individuals
in higher education, upgrade and strengthen training of teachers,
expand library services and facilities, stimulate basic education and extension programs for adults, improve teachers' salaries and public school
classrooms, and facilitate public school desegregation. An enlarged
proposal provides grants to assist in meeting special educational needs
of disadvantaged and other children, particularly to combat poverty.
Annual grants of $50 thousand are made to each State and Puerto Rico.

Promotion of vocational educa- NOA
tion, Act of February 23, 1917 Exp.
(permanent, indefinite)
704

7,161
7,144

7,161
7,150

-392

Intragovernmental funds:

Advances and reimbursements.__ Exp.
704
Total, Office of Education. _ _

NOA

661,865

Grants to States will continue at a maximum authorized level.

-27

442,504 11,437,396 11,080,789
620,818 \ A 718,400
11,685
508,242
736,484 1 294,729
A
203,700 A262,362
c
1,930
C9,755
A

Exp.

623,705

VOCATIONAL REHABILITATION
ADMINISTRATION
General and special funds:

655 NOA
Exp.

72,940
70,652

88,700
86,111

100,100
89,550

11,400
3,439

Permits matching of available State funds to rehabilitate 133,000 handicapped persons—10% over 1964.

655 NOA
Exp.

25,500
24,145

34,810
32,698

40,620
30,900

5,810
-1,798

Provides for 432 research and demonstration projects, 7,849 traineeships, 523 teaching grants, and 8 research and training centers. A
change in scheduling of payments causes expenditures to drop in
1965.

Research and training (special NOA
foreign currency program).655 Exp.

2,000
392

2,000
1,180

2,000
1,200

Excess foreign currencies permit use of overseas facilities for rehabilitation research and interchange of experts.

Salaries and expenses

2,486
2,405

2,897
2,839

3,160
3,100

263
261

Provides for strengthening administration of expanding grant programs
and for additional specialized services to States.

102,926
97,594

128,407
122,828

145,880
124,750

17,473
1,922

33,200
2,224

16,311
14,000

21,512
18,500

5,201
4,500

Grants to States
Research and training

655 NOA
Exp.

Total, Vocational Rehabilita- NOA
tion Administration.
Exp.

PUBLIC HEALTH SERVICE
Buildings and facilities
A
c

651

NOA
Exp.

Proposed for separate transmittal.
1964 appropriation pending in Congress.

Provides $13.3 million for the National Institutes of Health, $3.8 million
for an Arctic Health Research Center, and $1.8 million for environmental health facilities.

to
to

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY
1963

1964

1965

AGENCY (in thousands of dollars)—Continued

to
to
to

Increase or
Explanation of NOA requests

Account and functional code
(-)

D E P A R T M E N T OF HEALTH, EDUCATION, A N D W E L F A R E — C o n t i n u e d
PUBLIC HEALTH SERVICE—Continued
Community Health
d

General and special funds—Continued

Accident prevention

651 NOA
Exp.

Chronic diseases and health of the NOA
aged
651
Exp.

3,664
3,679

22,936

16,303

3,823

-358

3,500

-200

53,769

-2,132

4,163 1
B
18
3,682 1
B
18

f
1

53,372
B
252
c2,277
41,938

47,915 1
1,200

5,848

30,017

1,453

28,300

-900

22,644

-7,028

20,000

-6,200

6,364

-486

5,700

-300

B252

c1,077
Communicable disease activities NOA
651
Exp.

18,892

Community health practice and NOA
research
651
Exp.

26,706

Control of tuberculosis

651 NOA
Exp.

10,750

23,947

6,993
6,819

28,380 1
B
184
29,016
» 184

29,605
B

26,133 1
B

6,828
B

5,978 |

Provides for fewer new research grants than in 1964, and reduces direct
operations relating to research, training, and technical services.

Pending supplemental in 1964 is for comprehensive State planning grants
for a coordinated approach to action on mental retardation. Decrease
in formula grants to States and in research grants in 1965 is partly offset by increases to support new projects for cancer detection, and improved community control and training programs for neurological
and sensory diseases, including mental retardation.
Increase will expand hepatitis research, epidemic and medical training
aids, improvement of State medical laboratories, and will continue
the program to eradicate the yellow fever mosquito.

Estimate reflects deemphasis of general health grants and the expiration of authority for the public health traineeship program, but increases by $1 million for the migrant agricultural workers health
program.
Elimination of the State formula grant will allow concentration of increased project grants in areas of greatest TB prevalence.

651 NOA

8,000

Exp.

7,844

Dental services and resources. _651 NOA

2,999

Control of venereal diseases

Nursing services and resources,651

Exp.

2,603

NOA

8,437

Exp.
Hospital construction activities. __ NOA
651
Exp.

Health professions
assistance

189,117

George Washington University NOA
Hospital construction
651 Exp.

118

8,745

158

6,194
B
60
5,440
B
60

6,671

417

6,000

500

4,062
19,285

12,090

A
A

3,700
11,000

226,219 I 23,346
B
26 [ A 270,000
c
5,049
199,974
201,000
B
A
26
5,000
c1,000
c

educational NOA
651 Exp.

9,725

11,216
B
41
9,859
B
41

8,374

226,214

9,588
B
19
8,568
BJ9

30,390
C
6,000

85,782
15,000
4,100

2,500
625

4,800
62,052
7,000
55,392
13,100

-2,500
1,875

1,250

Estimate continues the renewed effort to eradicate venereal disease.

Increase is for a small expansion of the program to train dental students
in the use of dental assistants.

Legislation is proposed to continue the expiring graduate nurse training
grant program and provide assistance to undergraduates through
student loans and to provide for construction of teaching facilities.
Proposed legislation will continue community hospital grants at a lower
rate; initiate support for modernization of facilities and provide
grants to coordinate area planning of medical facilities. A pending
supplemental will initiate grant assistance for university-based mental
retardation clinics. Estimate in 1965 includes $17.5 million for this
purpose and for construction of community clinics.
Supplemental in 1964 will initiate newly authorized program of support
for medical and dental education. Estimate in 1965 includes $10.2
million for student loans and $75 million for grants for construction of
medical, dental, and allied professional teaching facilities.
The Federal contribution was appropriated in 1964. These funds will
be fully expended by the end of 1965.

Salaries and expenses, hospital Exp.
construction services
651
Construction of mental health Exp.
facilities, Alaska
651
A
B
c

315

191

Proposed for separate transmittal.
Proposed for separate transmittal, Uniformed Services Pay Act of 1963.
1964 appropriation pending in Congress.

-191

to
to
00

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963
enacted

1964

1965

Increase or

(-)

to
to

Explanation of NOA requests

DEPARTMENT OF HEALTH , EDUCATION , AND WELFARE—Continued
3

PUBLIC HEALTH SERVICE—Continued

Community Health—Continued

General and special funds—Continued
Grants to States for poliomyelitis Exp.
vaccination
651
Total, community health

NOA

o
o

-22
324,842

378,065
»689
37,716
331,404
B
689
c
7,077

Exp.

269,733

246,203
289,285

119,018

341,735
16,000

24,865

6,300

Environmental Health

Environmental health sciences

NOA
651

1,200
3,585
B15
ci.OOO

Exp.

Air pollution

651 NOA

4,220
B
15

11,065

12,933
2,200
B
59
11,273
A
200
B
59

10,890

5,455

9,700
C200

5,300

22,030

6,838

17,400
A2.000

7,868

Exp.

10,101

Pending supplemental will initiate studies on pesticides recommended
by the President's Science Advisory Committee. Research will be
expanded in 1965 to determine the health effects of the continued
use of pesticides.

Supplemental in 1964 will initiate the program authorized by the Clean
Air Act. Increases in 1965 are principally for full-year costs of new
grant-in-aid and enforcement programs.

8,530

9,215

Environmental engineering and NOA
sanitation
651
Exp.

8,725

8,626
B74

8,700

Occupational health.._

.651 NOA

4,121

5,215

Exp.

4,059

4,990
B
49
4,451

651 NOA

15,825

Exp.

13,438

Water supply and water pollution NOA
control
651
Exp.

24,668

9,009

132 The program will continue at about the 1964 level except for small increases in training State and local health personnel.

B74

176 Program will be continued at about the 1964 level of operations.

4,500

19,120
B
245
15,755
B
245

19,640

34,420

5,360

22,551

28,930
B
130
25,870
B
130

30,000

4,000

Grants for waste treatment works NOA
construction
651 Exp.

90,000
51,738

90,000
75,000

Environmental health activities Exp.
651

924

168

Total, environmental health. NOA

154,209

Exp.

111,537

169,202
A
2,200
B
572
c
1,200
144,728
A 200
B
572
c

Radiological health

l,000

A
B
c

X-ray control and technical training of State personnel.
16,000

191,410

18,236

161,300

17,000

2,000
^200

Comprehensive river basin planning for pollution abatement, special
pollution studies, enforcement, and research will be expanded.

Program provides for continuation of the 1964 level and will allow 900
new grants.
-168

Proposed for separate transmittal.
Proposed for separate transmittal. Uniformed Services Pay Act of 1963.
1964 appropriation pending in Congress.

275 Grants to States will be expanded and increased emphasis given to

(Activities now appear in other accounts.)

o
©

to
to
ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963

Account and functional code

1964

Increase or
decreas

1965

Explanation of NOA requests

DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE—Continued
W

PUBLIC HEALTH SERVICE-Continued
Medical Services
General and special funds—Continued

Hospitals and medical care.. .651 NOA

48,820

Exp.

50,025

Foreign quarantine activities,.651 NOA

5,910

Exp.

6,317

Indian health activities

651 NOA

Liquidation of contract authorization.
Exp.

56,391
(432)
55,175

52,710

1,422

51,569

1,474

6,893

329

5,999

320

58,961 |
M71
B
566

61,576

1,878

56,178 ]
A
167
B
566

59,318 }
M

49,957 1
A
99
B
1,232
48,768 1
A
97
B
1,232

6,456 1
A
31
B
77
5,573 )
A
30
B
77

1 *•

2,411

Supplemental in 1964 are proposed transfers from National Heart
Institute for wage board and commissioned officers' pay increases.
Increased 1965 costs are due to expected increase of 47,000 outpatient
visits, mandatory salary reform costs, equipment replacement, and
transfer of funding of maintenance and repair costs from the Genera]
Services Administration.
Supplementals in 1964 are proposed transfers from National Heart
Institute for wage board and commissioned officers' pay increases.
Increase in 1965 permits expansion of overseas visa examination
program. These additional costs are offset by examination fees
which are deposited in general funds of the Treasury.
Supplementals in 1964 are proposed transfers from National Heart
Institute for wage board and commissioned officers' pay increases.
Increases in hospital patients, outpatient visits, contract patient care
and extension of field health services to additional Indian communities result in increases in 1965.

Construction of Indian health NO A
facilities
651 Exp.
NOA

120,456

Exp.

118.799

General research and services. _651 NOA
Exp.

159,703
113.618

Total, medical services

Includes planning and construction of 1 hospital, 2 health centers, 5
health stations, 56 quarters, alterations at 12 locations and 38 sanitation projects.

8,643
8,500

3,293
-1,500

120,724 1
A
301
B
1,875
120,519 1
A294
B
1,875

129,822

6,922

2.705

154,206
124,000

163,745
111.840

9,539
-12,160

Estimate will support an increase chiefly in research grants from an
estimated 2,197 projects in 1964 to 2,307 in 1965. A change in
scheduling of payments causes expenditures to drop in 1965.

4,992

175

Increase will permit expansion in testing of new vaccines and in the
inspection of blood banks and blood preservation methods.

4,700

200

43,169
34,200

9,169
4,700

Estimate will expand intramural research and increase research grants
from 820 projects in 1964 to approximately 1,150 in 1965.

140,962
119,540

-2,196
-2.460

Provides chiefly for a small expansion in research grants from 1,950
projects in 1964 to 1,992 in 1965 and an increase in collaborative studies with public and private organizations. Decrease results from
transfers to other accounts.

5,350
10,000

9,335
7.281

125,386 1

National Institutes of Health

Biologies standards

4,787 |
B
30
4.470 |
B
30
34,000
29.500

651 NOA
Exp.

National Institute of Child Health NOA
and Human Development _ _ 651 Exp.
National Cancer Institute

National
Health

Institute of

651 NOA
Exp.

Mental NOA
651 Exp.

155,697
119.223

143,158
122,000

143,578
111,544

176,165
149,000

Construction of community men- NOA
tal health centers
651 Exp.
National Heart Institute

651 NOA

147,374
B

Exp.
A
B

111.127

127,408
A
-301 1
-3,215
106,000

188,917
158,820

12,752
9.820

Increase will allow 2,274 research grants in 1965 compared with 2,097
in 1964 and 1,960 training grants, up from 1,742 in 1964.

35,000
3,000

35,000
3.000

Estimate provides for new program to construct public and other nonprofit community mental health centers.

1,506

Increase will provide for approximately 2,700 research grants in 1965 as
compared with 2,589 in 1964. Supplemental in 1964 are proposed
transfers to other accounts for wage board and Uniformed Services
Pay Act increases.

125,398
106,300

Proposed for separate transmittal.
Proposed for separate transmittal, Uniformed Services Pay Act of 1963.

300

O
O

>
a

to
to

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963

1964

1965

Increase or
Explanation of NOA requests
(-)

DEPARTMENT C)F HEALTH , EDUCATION AND WELFARE—Continued

PUBLIC HEALTH SERVICE—Continued
National Institutes of Health—Continued
General and special funds—Continued

National Institute of Dental Re- NOA
search
651 Exp.

21,199

19,166

17,664

17,300

20,135
19,000

969
1,700

Increase is primarily for 3 new clinical research centers and an increase
in training grants from 89 in 1964 to 93 in 1965.

National Institute of Arthritis and NOA
Metabolic Diseases
651 Exp.

103,388
88,009

107,699
94,500

113,176
102,059

5,477
7,559

Increase is chiefly to provide 3,270 research grants in 1965 as compared
with 3,140 in 1964.

National Institute of Allergy and NOA
Infectious Diseases
651 Exp.

66,137
56,857

67,117
61,500

68,445
63,000

1,328
1,500

Increase will provide primarily for an expansion in training grants from
180 in 1964 to 186 in 1965.

83,472

84,443
74,500

88,428
79,000

3,985
4,500

Increase will provide for continuation of prior year grants and an increase
in research grants from 1,708 in 1964 to 1,713 in 1965.

National Institute of Neurological NOA
Diseases and Blindness
651 Exp.
Grants for construction of health NOA
research facilities
651
Exp.
Grants for cancer research facili- Exp.
ties
651

67,802

36,244

50,000 |
6,000
40,000
c
l,000

1,444

2,000

50,000

CO
OK

2,000

58,000

41,000
4,000

1,441

Pending supplemental in 1964 and increase in 1965 provide funds for
matching grants for mental retardation research facilities.

4,000
-559

(Expenditures are payments of prior obligations.)

Construction of mental health-neu- Exp.
rology research facility
651
Total, National Institutes of NOA
Health.

200

930,547
B

2,100

1,900

(Expenditures are payments of prior obligations.)

79,704
968,149 1,050,367
A
-301
-3,185
c6,000
824,970 1 846,000 1 24,000
B
30 \ c 4,000
c1,000

Exp.

723,596

Scientific activities overseas (spe- NOA
cial foreign currency program) Exp.
651

2,800
1,588

4,000
3,900

1,000
4,500

-3,000
600

The program will continue at about the 1964 level through use of prior
balance of excess foreign currencies.

National health statistics

NOA
Exp.

5,149
5,056

5,949
5,400

6,184
5,900

235
500

Provides for augmentation of the existing programs for the collection
and analysis of health statistics and health survey methods.

NOA
Exp.

3,335
2,347

4,074
3,900

3,633
3,338

-441
-562

Provides for improvements in the acquisition, organization, preservation, and dissemination of literature on research in the biomedical
sciences. The increase is more than offset by a decrease in nonrecurring equipment costs.

Retired pay of commissioned offi- NOA
cers (indefinite)
651 Exp.

5,526
4,581

6,517
5,000

7,272
5,900

755
900

Retired officers will increase from 468 to 521. This account includes
the PHS cost of medical care of dependents of commissioned officers.

Salaries and expenses, Office of the NOA
Surgeon General
651 Exp.

5,661
5,741

6,195
j
B
49
5,734 |
B49

6,033

-211

5,800

651

National Library of Medicine. 651

Emergency health activities. _ .059 NOA
Exp.
Operation of commissaries, nar- Exp.
cotic hospitals
651
A
B
c

27,500
13,000

9,539
15,000

-17,961
2,000

-2

-4

Proposed for separate transmittal.
Proposed for separate transmittal, Uniformed Services Pay Act of 1963.
1964 appropriation pending in Congress.

i
3

7,000
19,998

Public enterprise funds:

Apparent decrease results from transfers to other accounts.

Provides for management of inventory and stockpile; 1964 appropriation
finances procurement of additional medical supplies.

to
to
CO

to
o

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars) —Continued
1963

1964

Increase or

1965

Explanation of NOA requests

<-)

DEPARTMENT OF HEALTH , EDUCATION, AND WELFARE—Continued
PUBLIC HEALTH SERVICE—Continued

Intragovernmental funds:
Bureau of State Services manage- Exp.
ment fund__
651

-276

National Institutes of Health man- Exp.
agement fund
651

-2,191

Service and supply fund

651 Exp.

-264

Working capital fund, narcotic Exp.
hospitals
651

Advances and reimbursements _ 651 Exp.

-241

596

-596

Advances and reimbursements for Exp.
general research
support
grants
651

-7,688

12,678

-12,678

Total, Public Health Service. NOA

1,592,726

Exp.

1,254,604

GO
O

-2

1,706,686 11,672,975 1 208,458
A
2,200 A289,285
c
44,916
1,485,886 1,533,410 1 63,245
A
A 494
18,007
c
B3.215
10,500
c9,077

(Accumulated advances will be paid out in 1964. Advances and payments in 1965 are expected to be equal.)

SAINT ELIZABETHS HOSPITAL
General and special funds:

Salaries and expenses (indefinite) NOA
651
Exp.
Buildings and facilities

651

NOA
Exp.

5.540

7,434 |
M62
8,365
M50

8,095
1.920

627
2,056

2,032
4.697

1,405
2.641

10,493

1,970

6,332

Supplemental in 1964 is for wage board and other pay increases. Estimate in 1965 provides for greater prisoner patient security and im8.374 1 - 4 2 9
provement in quality of patient care.
A12

8,461

565

Provides for air conditioning geriatrics building and other improvements
to existing facilities.

Intragovernmental funds:

Advances and reimbursements. 651

Exp.

Total, Saint Elizabeths Hos- NOA
pital.
Exp.

14,427
7.490

8,061 |
A
462
10,422
A 450

13.074 | 2.214
A
12

SOCIAL SECURITY ADMINISTRATION

Trust funds:

Limitation on salaries and expenses.

(286.398)

(317,900)

(330.370)

(12,470) Estimate provides for 7% increase in beneficiaries, 6.7% increase in
hearings and appeals, and higher costs for disability determinations.

(5.750)

(5.750) Provides for the construction of 25 district offices and the planning of
additional headquarters construction.

Limitation on construction
General and special funds:

92
37

International Social Security Asso- NOA
ciation meeting
655 Exp.

Payments for military service NOA
credits (proposed legislation) 655 Exp.

-92
-15

Prior-year's appropriation provides for planning and conducting 1964
meeting in the United States.

60,000
60,000

Estimate is to meet the first of 50 annual equal installments to OASDI
trust funds under proposed legislation.

133

-102

Public enterprise funds:

Operating fund, Bureau of Federal Exp.
Credit Unions
655
A
B
c

-132

235

Proposed for separate transmittal.
Proposed for separate transmittal, Uniformed Services Pay Act of 1963.
1964 appropriation pending in Congress.

(Program is financed by fees for services performed.)

to
CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued

nd fu

al code

1963
enacted

1964
stimat<

1965
stimate

Increase or
decreas
)

Explanation of NOA requests

DEPARTMENT OF HEALTH, EDUCATION, A N D WELFARE—Continued
SOCIAL SECURITY ADMINISTRATION—
Continued
W

Intragovernmental funds:

Advances and reimbursements.653 Exp.
Total, Social Security Ad- NOA
ministration.
Exp.

d
a
o

32
92
272

-100

60,000
155
A
60,000

59,908
59,883

WELFARE ADMINISTRATION
General and special funds:

Grants to States for public assist- NOA
ance
653
Exp.

2,738,300
2,729,582

2,725,000 2,980,000
95,400
A
159,600
2,788,000 12,781,000 -166,600
A

159,600

Supplemental in 1964 is needed for increase in caseload and payments to
recipients. Increase in 1965 is for expansion of medical assistance for
the aged, aid to dependent children and aid to the permanently and
totally disabled. Reduction in expenditures is from a change in
scheduling of payments.

Assistance for repatriated United NOA
States nationals
653 Exp.

467
412

467
437

310
300

-157
-137

Provides assistance to mentally ill repatriates. Reduction results from
legislation expiring June 30, 1964. Proposed legislation to extend
program is being recommended.

Salaries and expenses, Bureau of NOA
Family Services
653 Exp.

3,760
3,708

4,956
4,995

5,683
5,500

727
505

Increase will strengthen review of State and local operations and help
States improve administration of programs.

82,943
16,500
82,676
c
16,400

131,830

32,387

122,000
c
100

23,024

Supplemental covers funds for grant programs, under recent legislation,
and will provide new and expanded services to prevent mental retardation. Increases are for child welfare services, research and training,
and full-year cost of the new program.

Grants for maternal and child wel- NOA
fare
651
Exp.

76,795
76,058

GO
O

Salaries and expenses, Children's NOA
Bureau
651
Exp.
White House Conference on Chil- Exp.
dren and Youth
651
Juvenile delinquency and youth NOA
offenses
655 Exp.
Salaries and expenses, Office of NOA
Aging
655 Exp.

2,943
2,768

3,401 \ 4,315
C
375 1
4,095
3.204 j
C375

539
516

(Conference costs have been paid in full.)

1
5,810
4,474

Provides staff on a full-year basis for the implementation of the new program to emphasize the prevention of mental retardation.

6,950
6.796

3,905

-6,950
-2,891

Legislation is being proposed to extend program which expires June 30,
1964.

545
505

600
580

55
75

Provides for increased service to State and local community aging
organizations.

Cooperative research or demon- NOA
stration projects
653 Exp.

1,100
953

1,455
1,301

1,800
1,100

345
-201

Provides for 40 comprehensive research and demonstration projects
aimed at reducing dependency.

Research and training (special NOA
foreign currency program) __651 Exp.

117

212

372

160

Studies on social welfare programs will be undertaken using available
excess foreign currencies from a 1962 appropriation.

Salaries and expenses, Office of NOA
the Commissioner
653 Exp.

736
552

1,025

1,072
1,042

47
161

Increase will strengthen regional direction.

Assistance to refugees in the NOA
United States
653
Reappropriation
Exp.

70,110

45,400

-8,400

44,552

-6,812

50,000
35,000

52,902

881
39,717
14,083
51,364

Community work training (pro- NOA
posed legislation)
653 Exp.
I nongovernmental funds:

-24

Total, Welfare Administra- NOA
tion.

2,900,021

Exp.

2.871.502

A
A

Advances and reimbursements.653 Exp.

A
Proposed for separate transmittal.
C 1964 appropriation pending in Congress.

Estimate reflects decline in requirements for financial assistance, education, training, and health services for Cuban refugees.

Legislation will be proposed to authorize training and work experience
for the rehabilitation of welfare recipients.

o
SI

I
a

-16

2,880,542 13,171,010 1 163,993
A
159,600 | A 50,000
c
16,875
2,940.387 2.964,446]
A
A 159,600
35,(KKH -117,216
c16,775
ciOOJ

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963

1964

1965

Inc

Account and functional code

Explanation of NOA requests

DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE—Continued
SPECIAL INSTITUTIONS

American Printing House for the Blind

General and special funds:

Education of the blind

704 NOA
Exp.

739
719

775
775

865
865

90
90

Increase reflects larger school enrollment of blind children and increase
in costs of producing educational material for the blind.

651

NOA
Exp.

3,909
3,740

3,880
3,831

3,873
3,838

-7

Increased reimbursement income from patient fees offsets costs of improvements in both training program and quality of patient care.

Gallaudet College
Salaries and expenses
Construction

t-1
702 NOA
Exp.
702 NOA
Exp.

Total, Gallaudet College. _ . . NOA
Exp.

104 Additional faculty and higher operating costs will accompany the estimated 16% increase in enrollment in 1965.
104

1,479
1,459

1,822
1,807

1,926
1.911

1,065
524

2,919
856

367
2,174

-2,552
1,318

2,544
1,983

4,741
2,663

2,293
4,085

-2,448
1,422

7,935
8,363

8,819
8,600

9,660
9,300

Provides principally for improvement of existing facilities.

Howard University
Salaries and expenses

o
Q

Freedmen's Hospital
Salaries and expenses

702 NOA
Exp.

841 Increase provides principally for a 5% larger enrollment in the liberal
arts and graduate schools and for increased costs of operating newly
700
constructed facilities.

Construction

702 NOA
Exp.

5,617
2,764

6,245
3,800

1,810
5,400

-4,435
1,600

13,552
11,127

15,064
12,400

11,470
14,700

-3,594
2,300

20,744
17,569

24,460
19,669

18,501
23,488

-5,959
3,819

Salaries and expenses, Office of the NOA
Secretary
655
Limitation payable from OASI
trust fund.
Exp.

2,718

2,833

3,185

352

(375)
2,702

(467)
2,760

(479)
3,123

(12)
363

Salaries and expenses, Office of NOA
Field Administration 655
Limitation payable from OASI
trust fund and Bureau of Fed- Exp.
eral Credit Unions operating
fund.

3,418

3,675

3,848

173

(1.538)
3,347

(1,337)
3,600

(1,288)
3,806

Total, Howard University _ _.
Total, special institutions

NOA
Exp.

Provides for construction of graduate social work building, new boiler,
and for planning of student-faculty center.

OFFICE OF THE SECRETARY
General and special funds:

Estimate provides for increased emphasis in analysis, evaluation, and
coordination of the Department's programs.

Estimate provides increase in administrative services to meet increases
in workload.

(-49)
206

IT1

o
a

Surplus property utilization. __ 655 NOA
Exp.

890
880

950
930

970
940

20
10

Estimate anticipates continued allocation to States of about $390 million
of surplus property for education, health, and civil defense.

Salaries and expenses, Office of the NOA
General Counsel
655
L:*mitation payable from OASI
trust fund and Food and Drug Exp.
Administration revolving
fund.

832

970

1,328

358

Increases are to meet additional workload resulting from enactment of
new legislation.

(739)
770

(900)
950

(907)
1,276

(7)
326

to
OO
C

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963
enacted

Account and functional code

Increase or
decrease

1965

1964

Explanation of NOA requests

DEPARTMENT OF HEALTH, EDUCATION, i\ND WELFARE—Continued
OFFICE OF THE SECRETARY—Con.
General and special funds—Continued
Educational television facilities NOA
704 Exp.
[ntragovernmental funds:
Working capital fund
655 Exp.

1,500

Advances and reimbursements.655 Exp.

-36

Total, Office of the Secretary NOA
Exp.

9,358
7,749

14,928
12,231

Total, Department of Health, NOA
Education, and Welfare.

5,333,019

Exp.

4,909,340

5,245,833
A
783,080
c
73,476
5,135,037
A
364,244
»3,215
c27,782

2
84

6,500
4,000

15,300
10,000

8,800
6,000

-29

-6

Provides expansion in grants to public and nonprofit private educational
television agencies for construction of transmission apparatus.

-20
24,631
19,139

9,703
6,908

6,531,411 11,546,707
A
1,117,685
5,457,746
A
375,381
c20,355

323,204

DEPARTMENT OF THE INTERIOR
PUBLIC LAND MANAGEMENT
Bureau of Land Management
General and special funds:
Management of lands and re- NOA
sources
401
Exp.

44,062
40,218

44,066
2,500
40,915
A
2,300

i *

447

42,800 1
200

-1,119
-215

Supplemental in 1964 is for fire suppression. Estimate in 1965 will
accelerate adjudication of grazing privileges and inventories on public
forested lands. Rehabilitation of burned-over lands will receive
additional funds. More adequate provision is made for accomplishing
the maintenance of buildings, sanitation and protection facilities, and
roads on the public domain.

CO
OS

401 NOA
Exp.

1,000
1,260

300
450

1,400
1,000

1,100
550

Provides for construction of facilities to house fire control operations
in Alaska, and for construction of sanitation and protection facilities
on public domain lands in areas of heavy public use.

Oregon and California grant lands NOA
(receipt limitation) (indefi- Exp.
nite)
401

7,703
6,727

9,000
7,700

8,250
7,272

-750
-428

A sum equal to 25% of revenues from these lands is available for road
construction and maintenance, reforestation, protection, and the
development and maintenance of recreational facilities.

Public lands development roads
and trails:
401
Contract authorization:
Current
NOA
Permanent
.__NOA
Appropriation to liquidate contract authorization.
Exp.

2,000

Construction

Range improvements (receipt limi- NOA
tation) (indefinite)
401 Exp.
Permanent appropriations:

2,000
-4,000
(1,240)
1,240

697
846

1,248
925

1,523
1,000

275
75

A sum usually equal to 33% of grazing revenues is used for range improvements. Increase in revenue is expected.

249
1,232
1,266

231
1,658
1,675

233
1,696
1,765

2
38
90

Revenues from mineral leasing, sale of timber, grazing leases and permits,
and other public domain revenue-producing operations are used in
resource programs, or are paid to the States and counties in various
proportions, as specified by law. Permanent appropriation of receipts
from land and water resources are devoted, in general, to such improvements as roads, recreational facilities, and on grazing lands.
Those from forest resources may be used for the costs of timber sales,
or for State or county roads, schools, etc. Minerals revenues are
largely paid to States for educational and other uses.

401
401

Special fund_

402 NOA
Exp.

16,091
16,098

16,008
15,319

18,752
18,052

2,744
2,733

General fund
Special fund

403 NOA
403 NOA
Exp.

6
47,148
47,154

6
47,650
47,656

10
49,301
49,311

4
1,651
1,655

A
B
D

It is anticipated that 1965 NOA will be provided in the Federal-Aid
Highway Act. 184 miles of road construction is programed for J965.

(2,000)
2,000

General fund.
Special fund

NOA
NOA
Exp.

»2,000
4,000
(760)
760

w
o
o

Proposed for separate transmittal.
Proposed for separate transmittal. Uniformed Services Pay Act of 1963.
1964 appropriations pending in Congress.
To carry out authorizing legislation to be proposed.

to
00

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1965

1964

1963

Account and functional code

Increase or
decrease

Explanation of NOA requests

00
00

DEPARTMENT OF T H E INTERIOR—Continued
PUBLIC LAND MANAGEMENT—Con.
Bureau of Land Management—Continued
Intragovernmental funds:
Advances and reimbursements_401 Exp.

Land NOA

120,188

Exp.

113,568

Total, Bureau of
Management.

124,167 1 128,612
A 2,500
123,200 1
115,400
A
200
^2,300

d
o

1,945
5,700

Bureau of Indian Affairs

General and special funds:
Education and welfare services:
Appropriation
704 NOA
Contract authorization (permanent)
704 NOA
Appropriation to liquidate contract authorization.
Exp.
Resources management

Construction

88,446

96,070

7,624

772
(569)
78,490

900
(772)
83,720

900
(900)
91,425

(128)
7,705

401 NOA

35,533

40,728

2,555

Exp.

33,280

37,673 1
A 500
35,984
A400

38,228 1
A 100

1,944

401 NOA
Exp.
401

53,692
46,314

58,238
41,193

51,176
48,322

Road construction:
Contract authorization:
Current
NOA
Permanent
NOA
Appropriation to liquidate contract authorization.
Exp.

81,736

16,000
(17,995)
18,261

18,000
(15,000)
16,273

-7,062
7,129

The increase is primarily to support an additional 2,493 students in
Federal elementary and secondary schools and 1,865 more persons in
the vocational training program.

The 1964 supplemental is for fire fighting. The increase in 1965 is
primarily for maintenance of new schools and school bus roads, and
for economic development on and near reservations.
The program includes construction of new schools, additions to existing
schools, and construction of utility and irrigation systems.

18,000 It is anticipated that 1965 NOA will be provided in the Federal-Aid
Highway Act. The 1965 program includes 482 miles of grading and
-18,000
draining and 556 miles of surfacing.
(17,000)
(2,000)
727
17,000
18,000

General administrative expenses NOA
409 Exp.

4,188
4,006

4,265
4,237

4,331
4,321

66
84

Menominee educational grants-704 NOA
Exp.

176
396

132
132

88
88

-44
-44

Increase is for mandatory salary reform costs.
Estimate provides for the fourth of five decreasing grants for school
costs to lessen the impact of the termination of Federal services to
the Menominee tribe.

409 NOA
Exp.

5,771

5,791

145

Claims and treaty obligations NOA
(permanent, indefinite)
409 Exp.

159
161

161
188

161
161

-27

Payments are authorized to meet treaty obligations with certain Indian
tribes.

Other miscellaneous appropria- NOA
tions (permanent, indefinite, Exp.
special hinds) _
401

6,009
5,793

6,375
6,382

6,529
6,342

154
-40

Revenue from irrigation and electric power projects is used to operate
and maintain the projects.

Other miscellaneous accounts NOA
(permanent, indefinite, special Exp.
funds)
409

10
109

10
10

-99

Revenue from mineral deposits is used for acquisition of lands and for
loans to Indians in Oklahoma.

Miscellaneous accounts

Public enterprise funds:

Revolving fund for loans

401

NOA
Exp.

4,000
4,861

Payments are made to various tribes as authorized by special laws.
-145

2,000 1
A
900
7,385
A
900 1

-2,900

-8,285

}

Liquidation of Hoonah housing Exp.
project revolving fund
409

106

-1,162

2,046

-103

Intergovernmental funds:

Advances and reimbursements.409 Exp.
Total, Bureau of Indian Af- NOA
fairs.
Exp.
A
D

208,040
196,193

Proposed for separate transmittal.
To carry out authorizing legislation to be proposed.

216,201 1 217,993
A
1,400
197,900
205,900 1
A1.300
A 100

-2,046
392
6,800

Supplemental for 1964 is for loans to tribes for hiring expert assistance in
claims cases before the Indian Claims Commission. Legislation will
be recommended to increase the appropriation authorization which
has expired.
(Balances are being used for liquidation.)

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963

Account and functional code

1964

1965

Increase or

Explanation of NOA requests

(-)

DEPARTMENT OF T H E INTERIOR—Continued
PUBLIC LAND MANAGEMENT—Con.

National Park Service
General and special funds:

Exp.

Supplemental in 1964 is for fire suppression. Increase in 1965 is for
operation of 2 new park areas and newly constructed facilities and to
serve the increasing visitation to the 207 areas. Natural science
and wildlife management studies will be initiated and U.S. Park Police
strengthened.

Maintenance and rehabilitation of NOA
physical facilities
405
Exp.

Supplemental in 1964 is for wage board pay increases. The 1965 increase will cover 1 new area and permit more adequate maintenance of
roads and facilities throughout the system.

Construction

The 1964 supplemental is for acquisition of lands at Point Reyes National Seashore, Calif. In 1965, the program is limited to construction of facilities and acquisition of water rights. Land acquisition,
funded in this account in 1964 ($5.3 million), will be financed in the
Land and water conservation fund under proposed legislation.

Management and protection. _405 NOA

405 NOA
Exp.

Contract authorization:
405
Current
NOA
Permanent
NOA
Appropriation to liquidate contract authorization.
Exp.

Work on 7 parkways will continue and road and trail construction will
include work on 119 miles of major roads. It is anticipated that 1965
NOA will be provided in the Federal Aid Highway Act.

General administrative expenses NOA
405 Exp.

Increase provides for strengthening administrative services for the expanding park program.

3
o

Other miscellaneous appropria- NOA
tions (permanent indefinite Exp.
special funds)
405

267
162

148
269

585

178

133
136

-15
-133

Certain revenues from park operations are used for the purposes authorized by law.

ai Tu

Advances

and reimbursements Exp.
405

Total, National Park Service.

NOA

132,610

Exp.

110.543

-178

124,601 1 115,163 -13,813
A
4,375
100
119.555 I
117.170
A
A 1.045
3,330

Bureau of Outdoor Recreation
General and special funds:

Salaries and expenses

405 NOA
Exp.

1,201
969

Land and water conservation fund NOA
(proposed legislation)
405 Exp.
Total, Bureau of Outdoor NOA
Recreation.
Exp.

2,700
2,700

800
800

Increase provides for preparation of nationwide outdoor recreation plan
and coordination of Federal recreation programs.

M0,000
14,800

40,000
14,800

Legislation is recommended to establish a fund to which certain receipts
will be credited. Upon appropriation the receipts will be available for
Federal and State recreational purposes.

2,700 )
40,000
2,700 j
A
14,800

40,800

15,600

18,814

-5,650

1,900
1,900
A

1,201

1,900

969

1,900

W
>

Office of Territories
General and special funds:

Administration of Territories. _910 NOA

13,796

Exp.

13.648

Trust Territory of the Pacific NOA
Islands
910 Exp.
Alaska public works
A
D

15,000
9,703

910 Exp.

Proposed for separate transmittal.
To carry out authorizing legislation to be proposed.

13,000 |
11,464
13,025
A
4,000

15,000
15.502
13

4,617 1 -6.749
5,659

A program to restore and improve public facilities on Guam damaged by
a typhoon will be initiated with the 1964 supplemental. Decrease in
1965 reflects completion of the major part of the Samoan construction
program.

2,500
-3,242

Increase reflects another step in the program to raise the standard of
living of the Micronesians.

17,500
12,260

-13

(Payments are prior obligations. Program was completed in 1962.)

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963

Account and functional code

1964

Increase or
decreas

1965

to
to

Explanation of NOA requests

DEPARTMENT OF T H E INTERIOR—Continued
PUBLIC LAND MANAGEMENT—Con.
Office of Territories—Continued
General and special funds—Continued
Internal revenue collections for NOA
Virgin Islands (permanent, in- Exp.
definite, special fund)
910
Public enterprise funds:
Loans to private trading enter- Exp.
prises, Trust Territory of the
Pacific Islands
910
Total, Office of Territories.910 NOA
Exp.

7,683
7,683

7,042
7,042

8,000
8,000

958
958

44,314

-2,192

36,479
A

31,056

35,042 |
11,464
35,617
A
4,000

Payments are made to the Virgin Islands from taxes collected on island
products sold in the United States.

(Loans made are expected to exceed collections on loans.)

Railroad

24,949 1 -9,009
5,659
CO
OS

revolving Exp.
506

-942

Total, public land manage- NOA
ment.
Exp.

498,518

The Alaska Railroad

Alaska
fund

501,911
19,739
468,021
A
10,930

451,387

-422

-456

508,782 1
40,000
475,882 1
A
21,804

27,132

18,735

(Receipts of $15.1 million are expected to exceed estimated expenditures for railroad operations.)

MINERAL RESOURCES
Geological Survey
General and special funds:

Surveys, investigations, and re- NOA
search
409 Exp.

Payments from proceeds, sale of NOA
water, Mineral Leasing Act of
1920, sec. 40 (d) (permanent,
indefinite, special fund)
401

57,943
56,802

63,700
61,100

69,223
67t200

5,523 Estimate provides increases for work on the National Atlas; major acceleration of studies of the earth's crust and upper mantle; additional
6,100

1 Receipts are appropriated to maintain and develop water wells on the

ground-water studies and stream gaging stations; and extension of
marine geologic and hydrologic studies to the Pacific shelf. A laboratory for research that uses radioactive materials will be built at
Denver.
public domain.

Intragovernmental funds:

Advances and reimbursements.409 Exp.
Total, Geological Survey

NOA
Exp.

-312

300

200

-100

57,944
56,491

63,700
61,400

69,224
67,400

5,524
6,000

27,468
26,985

29,369
28,500

30,377
29,000

1,008
500

Increased emphasis will be on research to eliminate methane outbursts
in mines, and to develop methods for in-place retorting of oil shale.

o
o

Bureau of Mines
General and special funds:

Conservation and development of NOA
mineral resources
403 Exp.
Health and safety

652 NOA
Exp.

8,426
8,201

8,662
8,300

9,530
9,200

868
900

Provides for accelerated research and increased educational effort to
reduce health and safety hazards in mining operations.

Construction

403 NOA
Exp.

425
723

500

351

-149

Funds appropriated in 1963 will be used for advance planning of
research facilities.

General administrative expenses NOA
403 Exp.

1,391
1,376

1,460
1,351

1,425
1,400

-35
49

Savings from reorganization result in decreased requirements for 1965.

Drainage of anthracite mines. 403 Exp.

200

369

169

Proposed for separate transmittal.

(Balance of a 1956 appropriation will be spent in Pennsylvania.)

3
3
o

to
CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousand* of dollars)—Continued
Account and functional code

1963
enacted

1964

1965 r
estimate

Increase or
decrease
)

Explanation of NOA requests

DEPARTMENT OF THE INTERIOR—Continued
MINERAL RESOURCES—Continued
Bureau of Mines—Continued
Public enterprise funds:
Helium fund (authorization to ex- NOA
pend from debt receipts) 403 Exp.

6,000
-9,508

6,000
21,149

20,000
24,480

14,000
3,331

45,491
60,000

61,332
64,800

15,841
4,800

Increase in borrowing from Treasury is for the purchase of helium; it is to
be repaid later as helium is sold.

td
cj

Intragovernmental funds:

Advances and reimbursements_403 Exp.
Total, Bureau of Mines

NOA
Exp.

39
43,710
27,858

i
O
W
GO
O

Office of Coal Research

General and special funds:
Salaries and expenses

403 NOA
Exp.

3,450
1,470

5,075
4,361

6,836
4,790

403 NOA
Exp.

750
569

850
895

900

403 NOA
Exp.

2,450
1,491

1,928

1,650

-278

Total, Office of Minerals NOA
Exploration.
Exp.

3,200
2,060

850
2,823

900
2,550

50
-273

1,761
429

Increase will provide expansion of research by contract tofindnew
markets and to develop new methods of mining, preparing and
utilizing coal.

Office of Minerals Exploration

Salaries and expenses
Lead and zinc programs

50 Increase provides primarily for additional financial assistance to private
5 industry in exploration for minerals.
Program provides stabilization payments to small domestic producers of
lead and zinc. Funds appropriated in 1963 will be used to finance
program in 1965.

Office of Oil and Gas

Salaries and expenses
Total, Mineral Resources

403 NOA
Exp.

558
556

616
616

660
660

NOA
Exp.

108,862
88,435

115,732
129,200

138,952
140,200

374
376

386
380

393
387

7 Estimate continues program at current level and provides for mandatory

20,681

2,757 Supplemental in 1964 is for pesticides studies. In 1965, increased em-

44 Increased emphasis will be placed on coordination of petroleum and gas
matters.
44
23,220
11,000

FISH AND WILDLIFE SERVICE
Office of the Commissioner of Fish and
Wildlife

Salaries and expenses

404 NOA
Exp.

salary reform costs.

Bureau of Commercial Fisheries

Management and investigations of NOA
resources
404
Exp.

15,854

Management and investigations of NOA
resources (special foreign cur- Exp.
rency program)
404

300
100

300
200

200

404 NOA
Exp.

8,473
2,737

4,450
6,210

4,788
8,337

Construction of fishing vessels_404 NOA
Exp.

557

750
250

300

-750 Subsidies are paid for construction of vessels. Authorization for the
program terminated in 1964, but payments continue into 1965.
50

General administrative expenses NOA
440 Exp.

622

653
600

676
600

23 Estimate continues program at current level and provides for mandatory

557

Construction

1964 appropriation pending in Congress.

15,685

17,824
c
100 j
16,900
ciOO

}

17,500
300

500

phasis will be given to pesticides studies and to biological research and
development activities of the national oceanography program.
Biological and technological research is carried on abroad using excess
foreign currencies.

338 Program includes construction of a shellfisheries research center, a biological research laboratory, and a replacement for the exploratory
2,127
vessel Oregon. It also provides for fish production and migration
facilities in the Columbia River system, and equipment for a new
research vessel being constructed in 1964.

750

salary reform costs.

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963

1964

1965

Account and functional code

Increase or
decrease

Explanation of NOA requests

DEPARTMENT OF THE INTERIOR—Continued

FISH AND WILDLIFE SERVICE—Con.
Bureau of Commercial Fisheries—Con.

General and special funds—Continued

-26

Administration of Pribilof Islands NOA
(indefinite, special fund) _ _ _ 404 Exp.

2,017
1,918

2,468
2,200

2,442
2,000

-200

Promote and develop fishery prod- NOA
ucts and research pertaining to Exp.
American fisheries (permanent,
indefinite) .
_.
404

5,071
4,908

5,373
5,000

5,200
4,500

-173
-500

A sum equal to 30% of customs duties on fishery products is appropriated
for biological research, market development, and general administrative services.

Payment to Alaska from Pribilof NOA
Islands fund (permanent, in- Exp.
definite, special fund) _ __ _404

703
703

589
589

1,606
1,606

1,017
1,017

Alaska is paid 70% of net proceeds from sales of wildlife products of the
Pribilof Islands.

-20

-29

-30

-1

Public enterprise funds:

Federal ship mortgage insurance Exp.
fund, fishing vessels.__ ___ 404
Fisheries loan fund
_ 404 Exp.
Limitation on administrative
expenses.
Total, Bureau of Commer- NOA
cial Fisheries.
Exp.

Part of the proceeds from sales, mostly of fur sealskins, is used in administration of the Pribilof Islands.
O

-1,382
(250)
33,790
25,764

-1,000
(270)
32,407 |
c
100
30,920 |
c
100

-1,000
(277)

(7)

35,693

3,186

34,013

2,993

(Premiums and fees are reserved for possible losses. Contingent
liability will be $7 million in 1965.)
(Program of $1.3 million is financed by receipts and fund capital.
Administrative needs increase to cover mandatory salary reform
costs.)

Bureau of Sport Fisheries and Wildlife
General and special funds:

Management and investigations NOA
of resources
404
Exp.

27,695

_404 NOA
Exp.

6,922
6,223

Construction.

26,516

30,560
C300
29,750
c
250

34,419

3,559

33,450 1
c
50

3,500

5,244
7,000

3,593
3,500

-1,651
-3,500

Supplemental in 1964 is for pesticides studies. Increase in 1965 is for
operation of new and expanded fish hatcheries, wildlife refuges, and
research facilities, and further expansion of pesticides research.
Program includes * construction of a fish-pesticide laboratory and a
wildlife-pesticide screening center; plans and specifications for a
National Fisheries Center and Aquarium; replacement of a fish
hatchery water supply line; development at 12 wildlife refuges; and
continued construction of a waterfowl management research center.

General administrative expenses.. NOA
404 Exp.

1,293

1,359

1,314

1,400

1,384
1,300

25
-100

Migratory bird conservation ac- NOA
count
404 Exp.

7,000
5,000

10,000
8,000

8,000
8,000

-2,000

Federal aid in fish restoration and NOA
management (permanent, re- Exp.
ceipt limitation)
404

6,032
5,667

6,358
5,454

6,000
5,700

-358
246

Matching assistance to States is provided by appropriations equal to
10% excise tax on sport fishing equipment.

O
O

Federal aid in wildlife restoration NOA
(permanent, indefinite, special Exp.
fund)
404

14,912
15,526

16,238
13,000

16,000
15,600

-238
2,600

Matching assistance to States is provided by appropriations equal to
11 % excise tax on manufacture of firearms and cartridges.

w
>
o

Migratory bird conservation ac- NOA
count (receipt limitation) (per- Exp.
manent)
404

3,419
3,425

4,000
3,000

Payments to counties, national NOA
grasslands (permanent, indefi- Exp.
nite, special fund)
404
c

1964 appropriation pending in Congress.

2 ..........
2

Estimate continues program at current level and provides for mandatory salary reform costs.
Estimate of $8 million to be advanced from general revenues (to be
repaid later) is for acquisition of migratory waterfowl lands.

Estimated receipts from sale of Federal duck-hunting stamps are used
for the acquisition of migratory waterfowl lands.
The sum of 25% of revenue from submarginal lands goes to counties in
which such lands are located, for schools and roads.

to
00

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963

1964

1965

Increase or
decreas

Account and functional code

Explanation of NOA requests

DEPARTMENT OF THE INTERIOR—Continued

3
td

d
o
o

FISH AND WILDLIFE SERVICE—Con.

Bureau of Sport Fisheries and WildlifeContinued
General and special funds—Continued

Permanent appropriations from NOA
national wildlife refuge receipts Exp.
(indefinite, special funds) __ 404

2,445

Total, Bureau of Sport Fish- NOA
eries and Wildlife.
Exp.

69,720

Total, Fish and Wildlife NOA
Service.
Exp.

2,119

65,79]
103,884
91,930

2,495
2,444

2,416
2,398

-79
-46

75,814

-742

72,950 1
C50

2,700

109,049 1 111,900
c
400
107,350 1
101,350
C350
C50

2,451

76,256 1
C300 f
70,050
C250

Of net proceeds from sales of refuge products, 75% is used for refuge
management and enforcement of game protection laws, and 25% goes
to counties in which such refuges are located for schools and roads.

5,700

WATER AND POWER DEVELOPMENT
Bureau of Reclamation

General investigations

401

NOA
Exp.

8,608
8,329

10,289
10,000

10,500
10,500

211

500

Program includes engineering and economic investigations and research
activities. Increase strengthens river basin surveys.

Construction and rehabilitation. _ NOA
401 Exp.

163,451
167,670

185,387
168,485

182,730
182,650

-2,657
14,165

Construction continues on 23 projects and 18 Missouri River Basin project units estimated to cost $4.3 billion; construction will start on 6
new projects and features estimated to cost $113 million, including
the Riverton, Wyo., project for which authorizing legislation is pending in Congress. Funds for this project will be requested following
enactment of the legislation. Rehabilitation and betterment will be
carried out on 11 projects. Facilities for 134,800 acres of irrigated
land and 100,900 acre-feet of municipal and industrial water supply
will be completed.

Operation and maintenance. __ 401 NOA
Exp.

35,835
32,470

37,781
34,400

40,300
40,000

2,519
5,600

Provides for operation and maintenance of 42 projects and Missouri
River Basin units for irrigation, power, and water use. Increase provides for operation of new projects and expanded channel improvements on the Colorado River.

General administrative expenses. _ NOA
401 Exp.

9,665
9,574

10,000
9,900

10,400
10,400

400
500

Provides overall administration and the technical direction of Bureau
programs.

NOA
Exp.

12,217
14,507

12,367
15,000

13,570
14,600

1,203
-400

Estimate finances loans started in prior years and provides for 3 new
irrigation project loans costing $4.2 million; 6 loan projects will be
completed.

Loan program-

_40l

_401 NOA
Exp.

1,000

Recreational and fish and wildlife NOA
facilities, Colorado River storage Exp.
project
401
Other miscellaneous appropria- NOA
tions (permanent, special funds) _ Exp.
401

Emergency fund.

Public enterprise funds:

Continuing fund for emergency Exp.
expenses, Fort Peck project,
Montana
401
c

This account insures continuing operation of Federal water supply systems and powerplants in emergency situations.

500

1,000

500

3,232
2,390

3,952
3,100

4,500
4,500

548
1,400

Provides for development of recreational and fish and wildlife resources.

3,745
3,704

3,954
4,062

3,812
3,810

-142
-251

Includes appropriations of Colorado River Dam fund revenues for payment of interest to Treasury and other specific items.

-996

-1,188

-1,311

-123

(Receipts from power sales are used for operation and maintenance of
power generation and transmission facilities and for continued operation in emergency situations. Receipts exceed expenditures.)

w
>

1964 appropriation pending in Congress.

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued

Accoun

nd fu

al code

1963

1964

1965

Increase or
decrease

Explanation of NOA requests

DEPARTMENT OF T H E INTERIOR—Continued
WATER AND POWER DEVELOPMENT—Continued
W

Bureau of Reclamation—Continued

Public enterprise funds—Continued
Upper Colorado River Basin fund. NOA
401 Exp.

108,566
106,529

93,991
90,741

57,800
57,501

-36,191
-33,241

Total, Bureau of Reclamation. NOA
Exp.

346,319
344,177

357,721
335,000

323,612
323.650

-34,109
-11,350

Construction continues on 3 storage units and the transmission facilities,
and on 8 participating projects. Crystal Dam will be started in 1965.

Bonneville Power Administration
General and special funds:
Construction

o
401 NOA
Exp.

29,800
16,023

36,174
27,100

43,820
33.720

7,646
6,620

Increase is mainly for construction of 500 kv transmission lines as the
main backbone of the Pacific Northwest power grid, and for a transmission line to southern Idaho.

Operation and maintenance...401 NOA
Exp.

13,121
13,056

13,689
13,700

14,980
14,980

1,291
1,280

Increase will provide for the operation and maintenance of transmission
facilities added to the power system.

Continuing fund for emergency NOA
expenses, Bonneville project, Exp.
Oregon (permanent, indefinite
special)
401

1,140
891

202
200

-202
-200

This account is used to insure continued operation of the power system
in emergencies. Emergency work begun in 1963 to repair damage
caused by severe windstorms will be completed in J964.

Total, Bonneville Power Ad- NOA
ministration.
Exp.

44,062
29,970

50,065
41,000

58,800
48.700

8,735
7,700

Southeastern Power Administration
796
457

999
600

1,000
700

1
100

7,193
1.212

2,999
4,200

2,770
5,850

-229
1,650

1,475
1,464

1,500
1,490

1,680
1.650

180
160

Increase is required to maintain additional power facilities.

Continuing fund (indefinite, spe- NOA
cial fund)
401 Exp.

5,000
3,540

4,500
2,910

4,500
3,500

590

Provides for energy purchases and rental of transmission lines.

Total, Southwestern Power NOA
Administration.
Exp.

13,668
6,216

8,999
8,600

8,950
11,000

-49
2,400

401 NOA
Exp.

7,557
5,843

10,000
8,150

10,650
8,760

650
610

Provides for continuation of the research program to develop low cost
processes for converting saline water to fresh water.

Operation and maintenance. __401 NOA
Exp.

1,985
816

1,850
1,850

2,300
2,300

450
450

Provides for operation of four demonstration plants throughout 1965.

Construction, operation and main- Exp.
tenance
401

2,015

1,000

940

-60

(Financing for construction of scheduled demonstration plants was completed in 1962. Operation and maintenance is now financed above.)

Total. Office of Saline Water. NOA
Exp.

9,542
8,674

11,850
11,000

12,950
12.000

1,100
1.000

Q
H
3
O
}

Total, water and power de- NOA
velopment.
Exp.

414,387
389,494

429,634
396.200

405,312
396,050

-24,322
-150

Operation and maintenance. __401 NOA
Exp.

Provides for continuation of power marketing program.

Southwestern Power Administration
Construction

401 NOA
Exp.
Operation and maintenance-.-401 NOA
Exp.

Construction program provides for approximately 205 miles of transmission lines, additional substation capacity and related facilities.

Office of Saline Water
Salaries and expenses

O
Q
ftJ

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963

Account an d functional code

1965

1964

Increase or

Explanation of NOA requests

to
to

(-)

DEPARTMENT OF THE INTERIOR—Continued
SECRETARIAL OFFICES
Office of the Solicitor

General and special funds—Continued
Salaries and expenses
409 NOA
Exp.

3,851
3,677

3,999
3,850

4,173
4,000

174
150

Increase is primarily for mandatory salary reform costs.

3,480
3,441

3,855
3,686

4,125
4,003

270
317

Departmental direction and management services will be strengthened
with the increase.

Salaries and expenses
Intragrovern mental funds:
Working capital fund

-8

-2

_ .409 NOA
Exp.
409 Exp.

Advances and reimbursements_409 Exp.

-120

-1

-73

Total, Office of the Secretary. NOA
Exp.

3,480
3,322

3,855
3,750

4,125
4,000

270
250

Total, secretarial offices

7,331
6,999

7,854
7,600

8,298
8,000

444
400

NOA
Exp.

VIRGIN ISLANDS CORPORATION
Public enterprise funds:
Operating fund:
Contributions
Revolving fund

910
NOA
NOA

480
200

Loans to operating fund (au- NOA
thorization to expend from
debt receipts).

200

s
9

Office of the Secretary

(Revenues are expected to be sufficient to cover the cost of operations.)

(184)
554

(186)
249

(156)
-1,186

(-30)
-1,435

Total, Virgin Islands Corpora- NOA
tion.
Exp.

880
554

249

-1,186

-1,435

Total, Department of the In- NOA
terior.

1,133,862

1,164,180
A
19,739
c
400

1,173,244
A
40,000

28,925

Exp.

1,028,800

1,102,620
A 10,930

1,126,296

Limitation on administrative expenses.
Exp.

C350

A 21,804
C50

(The anticipated sale of the corporation's power and water desalinization plants in 1964 will permit a reduction in administrative expenses.)

34,250

DEPARTMENT O F JUSTICE
LEGAL ACTIVITIES AND GENERAL
ADMINISTRATION

General and special funds:

Salaries and expenses, general ad- NOA
ministration
908 Exp.

4,428
4,436

4,660
4.550

4,871
4.760

211
210

Salaries and expenses, general legal NOA
activities
___
908 Exp.

17,096
17,047

18,526
18.000

19,590
19.140

1,064
1,140

Increase will finance mandatory salary reform costs.
O

Increase is for full year cost of staff added in 1964, primarily to handle
increasing tax and civil rights caseloads, and for mandatory salary
reform costs, partly offset by reductions from improvements in land
acquisition procedures.

Trust fund:

Limitation on general administrative expenses, alien property
activities.

(690)

(Estimate contemplates that most of the work of the Office of Alien
Property will be completed by June 30, 1965.)

(690)

1
3

General and special funds:

Salaries and expenses, Antitrust NOA
Division
508 Exp.

6,218
6.272

6,599
6.500

6,854
6.700

255
200

Salaries and expenses, U.S. attor- NOA
neys and marshals
908 Exp.

28,162
27,775

29,227
28.352

30,825
30,100

1,598
1,748

Propo:
1964 a ppropriation pending in Congress.

Increase will finance mandatory salary reform costs.
Increase provides for continuation of promotion plan for assistant U.S.
attorneys, increased costs of travel, communications, reporting, and
printing, and mandatory salary reform costs.

Or
00

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963
enacted

Account and functional code

1964
estimate

1965
i

Increase or
decrease

Explanation of NOA requests

DEPARTMENT OF JUSTICE—Continued
LEGAL ACTIVITIES AND GENERAL
ADMINISTRATION—Continued

General and special funds—Continued
Fees and expenses of witnesses NOA

2,500

Exp.

2,492

908

Salaries and expenses, Adminis- NOA
trative Conference of the United Exp.
States
908
Intragovernmental funds:
Advances and reimbursements:
Committee to study the feasi- Exp.
bility of establishing a National Service Corps
908

2,300
A 400
2,250
A 370

3,000

300

2,870 \
A

280

30 \

Supplemental in 1964 and increase in 1965 are to provide for costs
related to increasing caseload.

w
d
a
o

(The Conference completed its work in 1963).

100

127

-25

(The Committee completes its work in 1964,)

President's Committee on Juve- Exp.
nile Delinquency and Youth
Crime
908

-39

-23

(The Committee will continue to operate in 1965 if proposed legislation
to extend grant program under Department of Health, Education,
and Welfare is enacted.)

Total, legal activities and NOA
general administration.
Exp.

58,503

61,312
MOO
59,700
A
370

1 65,140

146,828
142,750

150,445
148,700

58,083

63,570

3,428

3,530

FEDERAL BUREAU OF INVESTIGATION
General and special funds:
Salaries and expenses

908 NOA
Exp.

135,889
135,527

3,617
5,950

Increase in 1965 provides for continuation of promotion plan for special
agents and mandatory salary reform costs.

IMMIGRATION AND NATURALIZATION
SERVICE
Salaries and expenses

908 NOA
Exp.

66,241
66,323

69,000
67.570

71,800
71,000

2,800
3,430

Estimate includes funds for replacement of border inspection and patrol
stations, repair and maintenance of stations, continuation of a records
improvement program, a special analysis of alien registration reports
and mandatory salary reform costs.

50,242

52,996 1
A
201
49,750
A 150

55,141

1,944

51,949 1
A
51

2,100

Supplemental in 1964 is for wage board pay increases. Increase in
1965 provides for full-year cost of employees added in 1964 and for
mandatory salary reform costs.

FEDERAL PRISON SYSTEM
Salaries and expenses, Bureau of NOA
Prisons
908
Exp.

49.586

Buildings and facilities

908 NOA
Exp.

3,545
6.553

9,525
8,950

Support of U.S. prisoners

908 NOA

4,100

Exp.

4.083

4,100 |
A
200
4,050
A 150

Federal Prison Industries. Inc.:
Prison industries fund
908
Limitation on administrative
and vocational training ex- Exp.
penses.

(K774)
-3,121

Intragovernmental funds:

TotaJ, Federal Prison Sys- NOA
tern.
Exp.
Total, Department of Jus- NOA
tice.
Exp.

Proposed for separate transmittal.

57,887
57,102
318,521
317,035

(2,100)
-3,450
66,621 I
A
401
59,300
A
300
343,761 j
A 801
329,320
A
670

21,212
6,845

11,687
-2,105

Estimate includes funds for completion of construction of a psychiatric
institution, construction of a replacement for the National Training
School for Boys, and repairs and improvements at several institutions.

4,400

100

4,350 |
A
50

200

Supplemental is for increased cost of prisoners in local facilities. Estimate in 1965 provides care of prisoners in 749 non-Federal institutions
and anticipates an average of 3,425 prisoners, the same as in 1964,
at a cost of $3.52 per man-day, $0.16 higher than in 1964.

(2,180)
-3,445
80,753
59,699 1
A
101

g
O

(80) (Estimate provides vocational training for 12,150 inmates, employment
of 5,500 inmates full time in various industries, and assistance in job
placement upon release.)
13,731
200

368,138

23,576

342,969 I
A
131

13,110
fcO
Or
C

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
to
1963
enacted

Account and functional code

1964
estimate

Increase or
decrease

1965

Explanation of NOA requests

DEPARTMENT OF LABOR
BUREAU OF LABOR STATISTICS
General and special funds:
Salaries and expenses
_652

14,590
14,484

16,345
16,265

1,364
1,488

IntragoverriVnental funds:
Advances and reimbursements.652 Exp.
Total, Bureau of Labor Sta- NOA
tistics.
Exp.

18,388
18,000

2,043
1,735

1,320
1,377

110

-1,320
-1,267

^r-147

245

214

15,955
15,825

17,665
17,673

18,388
18,355

723
682

779
720

842
818

863
770

21
-48

1 ntragovernmental funds:
Advances and reimbursements. 652 Exp.

143

-102

Total, Bureau of Interna- NOA
tional Labor Affairs.
Exp.

779
791

842
961

863
811

21
-150

NOA
Exp.

Revision of the consumer price NOA
index
__ 652 Exp.

Increase will improve and extend manpower and employment statistics
and will provide additional and improved data in other fields.
Revision of the index will be completed in 1964.

I-H

BUREAU OF INTERNATIONAL
LABOR AFFAIRS
General and special funds:
Salaries and expenses

652

NOA
Exp.

Estimate reflects mandatory salary reform costs.

MANPOWER ADMINISTRATION
General and special funds:
Salaries and expenses, Office of NOA
Manpower, Automation, and Exp.
Training—_
652

781

452

329

w
d

-329

(This account has been merged with "Manpower development and
training activities.")

Manpower development and train- NOA
ing activities
652
Exp.
Area redevelopment activities, sal- NOA
aries and expenses
652 Exp.

411,000

246,023

51,824

109,977
55,000
106,000
A 30,000

300,000
A 25,000

189,000

11,060
6,632

8,500
8,237

9,000
8,343

Trade adjustment activities, sal- NOA
aries and expenses
652 Exp.

100

150
165

345
350

Salaries and expenses, Bureau of NOA
Apprenticeship and Training Exp.
652

5,199
5,291

5,460
5,466

5,541
5,590

69,914

Salaries and expenses, Bureau of Exp.
Employment Security
652
Limitation on salaries and expenses, Unemployment trust
fund.

(11,936)

(12,400)

Unemployment compensation for NOA
Federal employees and ex-servicemen
652 Exp.
A

Proposed for separate transmittal.

and subsistence payments. About 12 thousand unemployed workers
will be retrained.

195
185

Increase will provide support and starling to carry out the Department's responsibilities in tariff negotiations.

81 No change in the level of operation is contemplated. Increase is for
124
mandatory salary reform costs partly offset by productivity gains.
(Program is now financed from trust fund.)

(1,071) (Increase provides for improvement and extension of manpower re-

W
O
O

search and statistics and improved financial management.)

Grants to States for unemploy- Exp.
ment compensation and Employment Service Administration
652
Limitation on grants to States for
unemployment compensation
and Employment Service Administration, Unemployment
trust fund.

500 The program is planned at the same general level as last year—about
$4.5 million for occupational training and $4.1 million for retraining
106

-5
(13,471)

Supplemental in 1964 will provide for retraining of workers under recent
legislation. In 1965 the number of unemployed receiving training in
needed skills will more than double, to about 275 thousand, including
training under the recently authorized basic literacy program.

(400,000)

(425,000)

-13

(455,076)

(Program is now financed from trust fund.)

"4
>
O

(30,076) (Increase is for continued expansion and improvement of the employ-

ment service, improvement in unemployment compensation administration, and increases in State salary rates.)

151,000
152,859

110,000 1
30,000
110,000 1
A
30,000

126,000

-14,000

116,000

-24,000

Supplemental in 1964 is to meet additional claims. Expected improvement in the economy is estimated to result in an average decrease of
8 thousand initial claims per week.

to
C

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963

1964

to
00

1965

Explanation of NOA requests

(-)
DEPARTNIENT OF LABOR—-Continued
MANPOWER ADMINISTRATION—Con.
General and special funds—Continued
Compliance activities, Mexican NOA
farm labor program
652
Exp.

1,369

870 |

870

-430

850

-513

A 430

1,207

933 1

Supplemental in 1964 covers cost of extension of the program after December 1963. Estimate in 1965 provides 6 months financing. Program expires December 31, 1964.

A 430

(1.135) j
( A 165)
916 1
A 165

(850)

(-450)

Salaries and expenses, Mexican
farm labor program
652
Limitation payable from, farm Exp.
labor supply revolving fund
652
Temporary unemployment com- Exp.
pensation
652

(1785)

-7

(This program is no longer in effect.)

Payment to Federal extended com- Exp.
pensation account
652

2,392

(This program is no longer in effect.)

1,815

Public enterprise funds:
Farm labor supply revolving fund Exp.
652

(Limitation is for 6 months. Program expires December 31,1964.)

-241
I—I

A 30,000
A 10,000

Youth employment opportunities NOA
(proposed legislation)
652 Exp.
Intragovernmental funds:
Advances and reimbursements, Exp.
employment security
652
Advances and reimbursements, Exp.
Manpower, Automation, and
Training
652

840

A 160,000
A 96,000

130,000
86,000

-85

-84

-17

-16

-1,226

-1,041

-141

900

Proposed legislation will provide work and training through conservation camps and work projects in local communities for an estimated
60,000 youths in 1965.

(Estimate is for 6 months. Program expires December 31, 1964.)

Advances to Employment Security
Administration account, Unemployment trust fund
652

Exp.

Total, manpower administra- NOA
tion.
Exp.

-7,602

-85,248

-3,500

4,102

135,890

234,957
115,430
223,521
A
70,595

552,756 1 362,369
160,000
428,332 1 255,216
A
121,000

5,884
5,929

465

-465

239,423

(Payments are made to the Unemployment trust fund pending later return of tax receipts. Repayments in excess of current advances are
reflected as minus expenditures.)

LABOR-MANAGEMENT RELATIONS
General and special funds:
Salaries and expenses, Bureau
of Labor-Management Reports
652
Salaries and expenses, LaborManagement Services Administration
652

NOA
Exp.
NOA
Exp.

7,499
7,050

7,736
7,550

237
500

The Bureau of Labor-Management Reports has been merged into the
Labor-Management Services Administration. Estimate reflects additional research and assistance in the field of collective bargaining,
partly offset by increased productivity in the processing of labormanagement and welfare-pension reports.

Estimate reflects phaseout of staff added to handle workloads resulting
from the Berlin callup.

Salaries and expenses, Bureau of NOA
Veterans' Reemployment Rights Exp.
805

652
653

784
765

791
780

7
15

Total, labor-management re- NOA
lations.
Exp.

6,536
6,582

8,283
8,280

8,527
8,330

244
50

Salaries and expenses, Bureau of NOA
Labor Standards
652 Exp.

4,625
4,156

3,470
3,631

3,545
3,650

75
19

Salaries and expenses, Women's NOA
Bureau
652 Exp.

911
898

784
825

772
750

-12
-75

WAGE AND LABOR STANDARDS

Increase relates primarily to mandatory salary reform costs.

Decrease reflects primarily termination of the President's Commission
on the Status of Women upon completion of its report in October 1963.

Proposed for separate transmittal.

Ox
CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1963
enacted

1964
estimate

1965

Increase or
decrease

Explanation of NOA requests

DEPARTMENT OF LABOR—Continued
WAGE AND LABOR STANDARDS—Con.

General and special funds—Continued
Salaries and expenses, Wage and NOA
Hour Division
652 Exp.

Intragovernmental funds:
Advances and reimbursements, Exp.
Women's Bureau
652
Total, wage
standards.

and

labor NOA
Exp.

19,275

20,528
20,500

1,253

19,724

23,625
22,859

23,529
24,180

24,845
24,900

1,316
720

3,982

4,275
4,466

4,401

126

18,089
17,789

776

Increase reflects the addition of work in enforcement of the Equal
Pay Act, which prohibits discrimination in wages paid to women.

Employees compensation claims NOA
and expense
906
Exp.
Total, Employees' compen- NOA
sation.
Exp.

s
50

EMPLOYEES' COMPENSATION
General and special funds:
Salaries and expenses, Bureau of NOA
Employees' Compensation _ 906 Exp.

3,894
65,221
65,263
69,203
69,157

53,838
5,000 1
53,838
A 5,000 |
A

58,113 |
5,000
58,304 |
A
5,000
A

4,400

-66

52,650

-6,188

52,650

-6,188

57,051

-6,062

57,050

-6,254

Estimate reflects mandatory salary reform costs.
Supplemental in 1964 will provide for higher compensation rates resulting
from base wage and salary increases, and higher medical costs.
Decreases in 1964 and 1965 reflect rising reimbursements from agencies
employing workers injured on the job.

OFFICE OF THE SOLICITOR
Salaries and expenses
652 NOA
Limitation payable from Unemployment trust fund.
Exp.

4,298
(125)
4,306

4,420
(127)
4,425

4,857
(132)
4,990

2,093
(136)
2,027

2,219
(138)
2,304

3,223
(139)
3,030

437

Estimate provides for mandatory salary reform costs.

OFFICE OF THE SECRETARY
Salaries and expenses _ _ _652 NOA
Limitation payable from Unemployment trust fund.
Exp.
Working capital fund_

652 Exp.

Advances and reimbursements_652 Exp.
Total, Office of the Secretary.

NOA
Exp.

-54

-103

103'

2,093
1,870

Total, Department of Labor_ NOA

361,911

Exp.

257,279

2,219
2,435
350,028
120,430
339,779
A
75,595

1,004 Increase reflects one-time costs, on a departmentwide basis, for consolidating and improving leased office space and for increased department(1)
wide services and mandatory salary reform costs.
726

-30

-58

-59

3,223
3,044

1,004
609

(Decrease represents excess of advances over expenditures, involving
mostly services which will not be completed at the end of 1965.)

670,510 1,360,052
160,000
545,812 | ?51,438
* 121,000

POST OFFICE DEPARTMENT
Public enterprise funds:

Contribution to the postal fund NOA
(indefinite)
505 Exp.

840,241
770,335

654,399
546,015

550,700
474,700

-103,699
-71,315

Estimated obligations of $5,134 million, less estimated postal fund revenues and reimbursements of $4,583 million, leaves $551 million to be
contributed. This is an increase of $ 132 million in obligations (largely
mail volume) and $233 million in revenues (mail volume and rate increase). Included are estimated net revenues of %77 million from
proposed parcel post rate increases, assumed to be effective April 1,
1964. After deducting costs determined by law to he public services,
the deficit in postal rates and fees is estimated to be $89 million,
compared with $183 million for 1964 and $407 million for 1963.
to

Proposed

for ^separate

transmittal.

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
to
1963

1964

1965

Increase or

Explanation of NOA requests

Accost a,
(-)

P OST OFFICE DEPARTMENT—Continued
Public enterprise funds—Continued
Authorizations and limitations on
use of postal fund:
Administration and regional
operation.
Research, development,
engineering.

and

Operations

(78,517)

(12.115)

(83,007)

(86,455)

(3,448)

(Increase is mainly for strengthening management.)

(11.913)

(13,000)

(1.087)

(Increase provides for additional procurement of experimental mail handling equipment, including an automatic address reader and computer
memory for existing letter sorters to mechanize the processing of ZIPcoded and other typewritten mail.)

(3,701,632) (3,925,000) (4,034,900)

(109,900)

(Increase is due to growth in mail volume (2.8%) and delivery stops
(3.4%), partly offset by savings estimated to result from improved
management and presorting of ZIP-coded mail by large-volume
mailers.)

Transportation

(587,500)

(605,500)

(601,000)

(-4,500)

(Decrease results from savings in transportation costs, partly offset by
increased costs due to growth in mail volume.)

Facilities

(172,504)

(195,904)

(205,069)

(9,165)

(Increase is due principally to added rental costs for additional space to
handle an increasing mail volume.)

(96,584)

(104,075)

(90,276) (-13,799)

(Decrease is due to deferral of building extension and modernization
projects until current backlogs are reduced, partly offset by increases in
procurement of mechanical equipment for new and existing post
offices.)

1
5
CO

Plant and equipment

Total authorizations out of
postal fund.
Total, Post Office Depart- NOA
ment.
Exp.

(4,648,852) (4,925,399) (5,030,700)

840,241
770,335

654,399
546,015

(105,301)

550,700 -103,699
474,700 -71,315

DEPARTMENT O F STATE
ADMINISTRATION OF FOREIGN
AFFAIRS
General and special funds:

Salaries and expenses

151

NOA 147,456
Exp.

151,915

152,953
A
5,000
150,000
A
1,000

950
942

973
950

10,000
11,658

18,125
14,000

Acquisition, operation, and main- NOA
tenance of buildings abroad (spe- Exp.
cial foreign currency program)

2,205
1,769

2,750
2,700

Emergencies in the diplomatic and NOA
consular service
151
Exp.

1,800

Extension and remodeling, State Exp.
Department Building
151

200

Representation allowances

151

NOA
Exp.

Acquisition, operation, and main- NOA
tenance of buildings abroad _ 151 Exp.

Proposed for separate transmittal.

166,000
160,000
A
3,000

Supplemental for 1964 will finance equipment, personnel, and other
expenses for improved communications. Major increases in 1965
are for mandatory cost rises and more adequate provision for nonsalary expenses to increase effectiveness of personnel.

Increase is due to rising costs.
22,257
16,000

Increase is for construction and acquisition of office and housing
facilities.
Increase is to permit a greater portion of the total building program to
be financed from excess foreign currencies.

3
o
o

1,611

1,500
M00
1,600
A 200
300

Provides for relief and repatriation loans to U.S. citizens abroad and
other emergencies. Supplemental for 1964 is for requirements
in excess of earlier estimates.
300

(All funds will be obligated or withdrawn by the end of 1964.)

1
3

to
CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1963
enacted

1964
estimate

1965

Increase or
decrease

Explanation of NOA requests

DEPARTMENT OF STATE—Continued
ADMINISTRATION OF FOREIGN
AFFAIRS—Continued
General and special funds—Continued
Replacement of passenger motor NOA
vehicles sold abroad (perma- Exp.
nent, indefinite, special fund)
151

[ntragovernmental funds:

234
205

Advances and reimbursements. 151 Exp.

-1,450

Total, administration of for- NOA
eign affairs.
Exp.

162,645
166,849

304
300

176,605 1
A
5,400
169,850
A
1,200

272
273

-32

197,297

15,292

184,073 |
A 3,200

16,223

Proceeds available in 1965 will replace 140 vehicles.

-27

CD
O

INTERNATIONAL ORGANIZATIONS
AND CONFERENCES
General and special funds:
Contributions to international or- NOA
ganizations
151 Exp.

69,227
94,554

99,679
99,679

87,617
87,500

-12,062
-12,179

Normal activities of most international organizations will continue to
expand. Decrease reflects expected termination of U.N. peace and security operation in the Congo and that the need for a U.N. working
capital fund advance will not recur.

Missions to international organi- NOA
zations
151 Exp.

2,322
1,953

2,500
2,450

3,238
3,000

738
550

Increase is primarily transfer from salaries and expenses; remainder is
for servicing expanded conference activity in Geneva.

International conferences and con- NOA
tingencies
151 Exp.

3,117
2,267

1,943
2,400

2,778
2,600

835
200

Increase reflects consolidation under Department of State of international conference expenses previously financed by other agencies
and a larger conference program.

International tariff negotiations NOA
151 Exp.

1,500
1.150

1,135
910

365
240

100,000
72,070

4,466

-4,466

United States Citizens Commis- Exp.
siononNATO
151

-10

Total, international organi- NOA
zations and conferences.
Exp.

174,666
170.855

104,487
109,245

95,133
94.250

-9,354
-14,995

692
683

715
720

785
785

70
65

1,972
2.020

2,015
2,000

1,963
1.960

-52
-40

Loan to the United Nations. _ _ 151 NOA
Exp.

Negotiations will begin late in 1964 and continue throughout 1965.
Estimate reflects U.S. matching of currently known pledges by other
countries to purchase U.N. bonds.
(Commission terminated in 1962. Obligations will be paid by 1964.)

INTERNATIONAL COMMISSIONS
International Boundary and Water
Commission, United States
and Mexico:
Salaries and expenses
401 NOA
Exp.
Operation and maintenance _401 NOA
Exp.
Construction

401 NOA
Exp.

10,998
11.003

Six project feasibility studies will be continued.
Equipment acquisition will be reduced and levee rehabilitation work
will decline.

6,497 | 14,623 -31,184 Supplemental in 1964 is needed to make effective the Chamizal
39,310
settlement with Mexico. Estimate for 1965 will continue construction
14.532 1 15.638
12,404
of Amistad Dam and powerplant and the lower Rio Grande flood
A
A 14.160
650
control project, and complete two sanitation proiects.

415
416

430
425

474
450

44
25

Increase will finance additional sanitation and stream flow studies under
joint plans with Canada.

commis- NOA
404 Exp.

1,910
1,873

2,000
1,909

2,189
2.100

189
191

Increase is for lamprey control and restoration of Fraser River salmon
fisheries.

Passamaquoddy tidal power sur- Exp.
vey
401

American sections, international NOA
commissions
401 Exp.
International
sions

fisheries

(Previously appropriated funds may be used for additional review of
the survey.)

Proposed for separate transmittal..

fcO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963

1965

1964

Increase or
Explanation of NOA requests

(-)

DEPARTMENT OF STATE—Continued
INTERNATIONAL COMMISSIONS—
Continued
General and special funds—Continued
Restoration of salmon runs, Fraser Exp.
River system, International Pacific Salmon Fisheries Commission
404
Total, international commis- NOA
sions.
Exp.

-51

(Activities under this account will be completed in 1964.)

d
15,987
15,999

11,657 |
A 39,310
17,509
A.650

20,034
19,827 1
A 14,160

15,828

5,054
8.968

-30,933

EDUCATIONAL EXCHANGE

Mutual educational and cultural NOA
exchange activities
153 Exp.

41,948
26,385

42,625
31,092

47,679
40,060

I nternational educational exchange Exp.
activities (special foreign currency program)
153

10,829

7,500

6,500

Center for Cultural and Technical NOA
Interchange Between East and Exp.
West
153

8,340
7,345

Preservation of ancient Nubian NOA
monuments (special foreign cur- Exp.
rency program)
153

505

Educational and cultural exchange NOA
with Japan
153 Exp.

Increase represents shift in financing from the account immediately
following.
(Expenditures will continue until prior appropriations are exhausted.)

-1,000
CO

5,100
5,600
A

12,000
873
A
3,000
25,000

25,000

Increase is to maintain 1964 program level at slightly higher cost.

5,932
5,600

832

-12,000
-873

Grants were made in 1962 primarily to help UNESCO preserve certain
temples in Egypt and the Sudan. Supplemental in 1964 is for U.S.
contribution to UNESCO to save Abu Simbel monuments.

-25,000
-25,000

Supplemental in 1964 is to establish an educational and cultural foundation in Japan with yen credits which the United States and Japan have
agreed shall be used for educational exchange.

A 3,000

a
ox

Educational, scientific, and cul- Exp.
tural activities
153

Educational exchange fund, pay- NOA
ments by Finland, World War I Exp.
debt (permanent, indefinite,
special fund)
153

396
460

396
450

Educational fund, interest pay- Exp.
ments by the Government of
India
153

Total, educational exchange. NOA

50,684

Exp.

48,121 |
37,000
45,616
A
28,000

396
400

—33
-33

(These funds are expected to be fully expended in 1964.)

-50

Current payments by Finland on World War I debt are used for educational exchanges with Finland.

-68

(Certain interest paid in the past by India is being used for educational
exchanges with India.)

54,007 -31,114

45,580

52,560 1-18.056
3,000

OTHER

Rama Road, Nicaragua
152 NOA
Contract authorization
152 NOA
Liquidation of contract authorization
Exp.

1,500
850

Migration and refugee assistance NOA
152 Exp.

14,947
6,193

10,550
10,000

8,200
8,000

Payment to the Republic of NOA
Panama (permanent)
151 Exp.

1,930
1,930

12,480
12,930

10,130
10,930

NOA
Exp.

19,227
9,211

Total, Department of State__

NOA

423,209

Exp.

408,493

(850)
1,000

1,087

Total, other

Proposed for separate transmittal.

(Contracts to complete the road, being constructed under international
agreement, are expected to be let in 1964.)
1,000
-2,350
-2,000

Decrease reflects a smaller number of refugees to be resettled and more
cost-sharing by other countries.
Annual payment is made, under treaty, for Panama Canal rights.
$430 thousand of this is recovered from the Panama Canal Company.

-2,350
-2,000

353,350 1 376,601 -58,459
81,710
361,640 1 -3,000
355,150
A
A
20,360
29,850
A

o
o

>
2

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
nd fu

1965

1964

1963

al code

Increase or
decreas

Explanation of NOA requests

TREASURY DEPARTMENT
W

OFFICE OF THE SECRETARY
General and special funds:
Salaries and expenses

904 NOA

4,686

Exp.

4,612

5,195 1
A
29 f
5,373
A2

5,580

356 Supplemental is for wage board increases. Increase will strengthen the

5,532 1

184

Expenses of administration of set- NOA
tlement of War Claims Act of Exp.
1928 (permanent, indefinite, special fund)
904

13
13

Federal control of transportation Exp.
systems
904

supervision of bureau operations, and legal and administrative
services.
Funds are appropriated from a receipt account for administrative
expenses of paying awards under the act.

DO
O

(Prior year balance is used to pay compensation to employees injured
during World War I.)
CO

Public enterprise funds:
Liquidation of corporate assets: Exp.
Reconstruction Finance Corporation liquidation fund 904
Civil defense loans: Civil defense Exp.
program fund
059

3,127

-924

-538

386

(Receipts and expenditures will be lower in 1965.)

-135

-58

-61

-3

(Repayments and interest earnings exceed expense.)

Liquidation of Federal Farm Mort- Exp.
gage Corporation
904

-533

-274

-278

—4
-4

5,207 1
A
29
4,131
A2

5,593

357

(Estimate reflects collection of receivables from a Federal land bank.)

I nongovernmental funds:

Advances and reimbursements_904 Exp.
Total, Office of the Secretary. NOA
Exp.

-1
4,697
829

4,669 1
A 27

563

BUREAU OF ACCOUNTS

General and special funds:

904 NOA
Exp.

3,882
3,680

4,055
4,105

33,390
27,125

29,335
23,020

The increase is due to the merger of "Salaries and expenses, Division of
Disbursement." The net overall decrease is due to a nonrecurring
purchase of electronic equipment in 1964.

Salaries and expenses, Division of NOA
Disbursement.
904 Exp.

28,239
28,256

30,557
29,140

5,803

-30,557
-23,337

This appropriation is merged with "Salaries and expenses, Bureau of
Accounts" in 1965.

Claims, judgments, and relief acts: NOA
Current definite
910 Exp.

21,220
21,936

7,249
7,549

-7,249
-7,549

Appropriations are made in individual private relief acts. For certain
claims and for judgments over $100 thousand, the specific items are
presented to Congress.

Salaries and expenses

o
o

Permanent, definite

910 NOA
Exp.

2
2

Awards totaling $1,620 are paid annually to 2 persons as a result of
private relief acts.

Permanent, indefinite

910 NOA
Exp.

4,310
4,310

5,000
5,000

Judgments of $100 thousand or less are paid from this permanent appropriation.

Interest on uninvested funds (per- NOA
manent, indefinite)
853 Exp.

10,917
10,917

11,458
11,458

11,857
11,857

399
399

Interest is paid on open book balances of 8 trust funds.

525
536

550
364

114

-550
-250

69,096
69,637

58,871
57,618

50,249
49,901

-8,622
-7,717

Public enterprise funds:

Fund for payment of Government NOA
losses in shipment
904 Exp.
Total, Bureau of Accounts. __
A

NOA
Exp.

Proposed for separate transmittal.

Fund covers losses in shipment of certain Government property, and
losses in redemption of savings bonds.

to
a*
CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963
enacted

Account and functional code

1964

Increase or
decrease

1965

Explanation of NOA requests

TREASURY DEPARTMENT—Continued
BUREAU OF THE PUBLIC DEBT
General and special funds:
Administering the public debt.904 NOA
Exp.

49,250

47,992
48,527

48,296
48,787

48,650

1,258
123

Increase will provide funds to purchase electronic equipment, reimburse
Federal Reserve banks for increased maintenance, replenish savings
bond stock, and pay increased bond redemption costs.

6,290

-9,235

6,392

-7,477

The substitution of Federal Reserve notes for $1 silver certificates
reduces the procurement of currency. Reduction also occurs from
nonrecurring purchase of electronic equipment in 1964.

-50
-3

OFFICE OF THE TREASURER
Salaries and expenses _ _

_904 NOA

16,450

Exp.

16,111

16,700
-1,175
13,869

Public enterprise funds:
Check forgery insurance fund.904 NOA
Exp.

-2

50
10

Total, Office of the Treasurer. NOA

16,450

Exp.

16,109

904 NOA

67,875

Exp.

67,268

16,750
—1,175
13,879

6,290

9,285

6,399

7,480

72,317
A 115
74,078
A 105

}

78,200

5,768

The fund covers settlements of checks paid on forged endorsements.

BUREAU OF CUSTOMS
General and special funds:
Salaries and expenses

76,265 1
A
10

Supplemental is for wage board pay increases. Increase in 1965 will
add manpower to meet greater work volume and strengthen enforcement.
2,092

INTERNAL REVENUE SERVICE
Salaries and expenses

904 NOA
Exp.

502,170
497,273

549,900
563,500

595,300
592,400

Refunding internal revenue collec- NOA
tions, interest (permanent, in- Exp.
definite)
852

73,931
73,857

89,700
89,625

Internal revenue collections for NOA
Puerto Rico (permanent, in- Exp.
definite special fund)
910

42,465
44,780

45,000
45,076

47,000
47,000

2,000
1,924

Total, Internal Revenue Serv- NOA
ice
Exp.

618,566
615,911

684,600
698,201

732,000
729,025

47,400
30,824

4,767
4,659

5,350
5,448

5,550
5,517

200
69

45,400
28,900

Tax returns filed are expected to increase from 99.3 million to 101.5
million in 1965. Increase will also continue expansion of the data
processing system.
Interest is paid at 6% per annum on internal revenue collections which
must be refunded.
Taxes on articles produced in Puerto Rico are paid to Puerto Rico.

BUREAU OF NARCOTICS
Salaries and expenses

908 NOA
Exp.

Increase provides for the final phase of revised staffing structure and for
added enforcement abroad.

UNITED STATES SECRET SERVICE
Salaries and expenses

5,784
5,389

6,825
7,043

7,550
7,483

725
440

Increase is for added caseloads, increased protective responsibilities, and
additional equipment.

1,524
1,445

1,700
1,705

1,730
1,784

30
79

Increase provides for longevity step increases and additional equipment
and supplies.

Salaries and expenses,
House Police

908 NOA
Exp.
White NOA
903 Exp.

Salaries
force

guard NOA
904 Exp.

383
370

400
404

420
432

20
28

An additional guard post must be covered in 1965.

Contribution for annuity benefits NOA
(permanent, indefinite)
903 Exp.

336
336

380
380

400
400

20
20

The District of Columbia is reimbursed for benefit payments made for
Secret Service employees.

Total, U.S. Secret Service, _. NOA
Exp.

8,028
7,540

9,305
9,532

10,100
10,099

795
567

A
c

and

expenses,

Proposed for separate transmittal.
1964 appropriation pending in Congress.

I
3

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963

1964

1965

Increase or

Explanation of NOA requests

tsD

(-)

fREASUR Y DEPARTMENT—Continued

•

BUREAU OF THE MINT
Qeneral and special funds—Continued
Salaries and expenses
904 NOA

7,025

Exp.

6,552

7,500 1
C
675
7,707
c
650

Construction of mint facilities . 904 NOA
Exp.

9,980

1,805

9,778 |
C
25

1.446

Supplemental provides for the production of 50 million silver dollars.
The 1965 increase will allow production of an additional 100 million
silver dollars and 450 million other coins and will finance the 3d year
increment of the equipment replacement program.

c
500
C500

16,000
8,000

15,500
7,500

Supplemental provides planning funds for a new mint in Philadelphia.
Increase in 1965 will cover site, construction, and equipment costs.

Minor coinage profits, etc. (perma- NOA
nent,
indefinite,
special Exp.
fund)
904

523
448

496
538

605
605

109
67

Increase in appropriation of seigniorage is for transportation and other
costs related to production of additional minor coins.

Silver profit fund (permanent, in- NOA
definite, special fund)
904 Exp.

661
534

548
614

1,175
1,175

627
561

Increase in appropriation of seigniorage is for transportation and other
costs related to production of additional silver coins.

Total, Bureau of the Mint. _ NOA

8,209

8,544 1
l,175

27,760

18,041

Exp.

7,534

8,859
l,150

19,558 1
C25

9,574
CO
Of

BUREAU OF ENGRAVING AND
PRINTING
Emergency repairs to Bureau of Exp.
Engraving and Printing Annex
Building
904

Air-conditioning the Bureau of NOA
Engraving and Printing (build- Exp.
ings)
904

300

(Repairs to the Annex Building were completed in 1963.)

300

5,750
2,500

5,750
2,200

The installation of air-conditioning will be complete in 1967.

Intragovernmental funds:

Bureau of Engraving and Print- Exp.
ing fund
904
§
©

Total, Bureau of Engraving NOA
and Printing.
Exp.

—2,272

886

2,477

1,591

300
—2,229

1,186

5,750
4,977

3,971

274,400

14,608

270,700

13,308

(Increase provides for purchase of equipment.)

5,750

COAST GUARD

3? General and special funds:

Operating expenses.

502 NOA
Exp.

222,531
216,240

Acquisition, construction, and im- NOA
provements
502 Exp.

33,330
34,571

Retired pay

32,350

502 NOA
Exp.

Reserve training

502 NOA
Exp.

248,992
10,800
246,592
B
10,800
B

16,117

Intragovernmental funds:

502 Exp.

—513

Coast Guard yard fund

502 Exp.

-1,682

NOA

304,708

Exp.

296,582

Total, Coast Guard

B
c
H

33,600
1,125

37,900

3,175

33,604
1,125

37,900

3,171

18,800
B
960
18,800
B
960

21,000

1,240

21,000

1,240

16,498

Coast Guard supply fund

39,000

31,850

90,000
50,490

51,000
38,339

352,392 |
12,885
338,383 1
B
12,885

A net average increase of 659 persons on the retired rolls is expected.

Increase will provide for 1,040 additional reservists in the 6-month training program and operate a newly activated training vessel.

(Receipts will equal expenditures in 1965 with sales of $18.8 million.)

-25

-173

(Receipts will exceed expenditures slightly in a $15.3 million program.)

423,300

58,023

380,065

28,797

Proposed for separate transmittal, Uniformed Services Pay Act of 1963.
1964 appropriation pending in Congress.
Includes $71,799 thousand to carry out authorizing legislation to be proposed.

Includes construction of 15 replacement and 9 additional vessels and 2
off-shore structures to replace lightships, the acquisition of 9 replacement and 8 additional helicopters and other increases to improve existing facilities.

-900

900
148

12,151

Supplemental will cover the costs of military pay legislation. Increase
in 1965 will operate new vessels, aircraft, and shore establishments,
extend loran navigational service, expand efforts in oceanography,
and improve military readiness.

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963

Accounl.,

1964

1965

Increase or

Explanation of NOA requests

TREASURY DEPARTMENT—Continued
INTEREST ON THE PUBLIC DEBT
General and special funds:
Interest on the public debt (per- NOA
manent, indefinite)
851 Exp.

The increase reflects a higher average level of outstanding debt, and at a
higher average rate of interest.

9,895,304 10,600,000
9,895,304 10.600,000

Total, Treasury Department. NOA

11,861,328
M44
B
12,885
11,859,842
A 107
B12,885
c1,150

Exp.

s
3

ATOMIC ENERGY COMMISSION
General and special funds:
Operating expenses

058 NOA
Exp.

2,872,031
2,507,296

Plant and capital equipment. _058 NOA
Exp.

262,745
250,648

Intragovernmental funds:
Advances and reimbursements_058 Exp.

-68

Total, Atomic Energy Com- NOA
mission.
Exp.

3,134,776
2,757,876

2,342,669
2,365,000

400,000
435,000

2,742,669
2,800,000

1
2,323,000
2,300,000

-19,669
-65,000

370,000
435,000

-30,000

2,693,000
2.735,000

-49,669
-65,000

Estimate provides increases for basic research in the physical and biomedical sciences, and for civilian applications of radioisotopes. These
will be more than offset by decreases in procurement of uranium concentrates and production of special nuclear materials.
Estimate provides for procurement of equipment and for construction
of production, research and development facilities, including reactors
and particle accelerators, in support of all operating programs.

FEDERAL AVIATION AGENCY
General and special funds:

Operations

501

NOA 488,187
472,691
Exp.

527,864
517,000

549,000
539,000

Facilities and equipment

501

NOA 125,000
Exp.
113,183

100,250
112,000

75,000
95,000

Air navigation aids, instrument landing systems, traffic control display
devices and other equipment will be procured and installed to improve and expand the Federal airways system.

75,000

Legislation is pending to continue the program at an annual level of
$75 million for the years 1965, 1966, and 1967. Budget proposes that
appropriations be made for both 1965 and 1966.

Grants-in-aid for airports
501 NOA
75,000
Permanent
NOA
(20,000)
Liquidation of contract authorization
501 Exp. 51,002

75,000
(20,000)
75,000

Increase is chiefly for operating newly commissioned air navigation and
traffic control facilities and mandatory salary reform costs.

(7,000)
70,500
5,000

NOA
Exp.

35,000
54,953

40,000
47,000

42.000
46.000

Work on improved air traffic control, air navigation, and related systems
will be continued at approximately the 1964 level.

Operation and maintenance, Wash- NOA
ington National Airport
501 Exp.

3,475
3,491

3,582
3,600

3.631
3,600

Services at the airport will be provided at approximately their present
level. Receipts to the general fund recover the costs.

Operation and maintenance. NOA
Dulles International Airport Exp.
501

3.277
3,631

3,985
3,800

4,619
4,400

Increase is chiefly to handle expected traffic growth and to cover higher
utilities and maintenance costs associated with new tenants.

Construction, Washington
tional Airport

2,000
1,124

2,075
3,300

1,800
3.600

Estimate is for replacement of an obsolete hangar.

450
200

200
200

9,800

1,500

Research and development

501

Na- NOA
501 Exp.

Construction, Dulles International NOA
Airport
501 Exp.
Construction and development, NOA
additional Washington airport Exp.
501
A
B
c
1
J

3,200
18,931

Proposed for separate transmittal.
Proposed for separate transmittal, Uniformed Services Pay Act of 1963.
1964 appropriation pending in Congress.
Includes $2,3 10,432 thousand to carry out authorizing legislation to be proposed.
Includes $34 1, 1 10 thousand to carry out authorizing legislation to be proposed.

Estimate provides for construction of interior service roads.

-8,300

(Expenditures decline with completion of construction of Dulles Airport.)

to
Or

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963

1964

1965

Account an d functional code

Explanation of NOA requests

(-)
FEDERAL AVIATION AGENCY—Continued

General and special funds—Continued

Civil supersonic aircraft develop- NOA
ment__
501 Exp.
Grants-in-aid for airports, Federal Exp.
Airport Act
501
Claims, Federal Airport Act _ .501 Exp.

20,000
6,792
491

60,000

42,000

297

200

-97

Funds appropriated in 1964 are to finance a detailed design competition
for development of a supersonic transport.

Construction of public airports in Exp.
Alaska
501
Total, Federal
Agency.

-60.000

60,000
18,000

Aviation NOA

755,139

813,206

Exp.

726,311

790,000

-3
676.250 1-61,956
75.000
824.000 1 39,000
A
5,000

GENERAL SERVICES ADMINISTRATION
CO

Real Property Activities
General and special funds:

219,122
A 3,350
213,500
A 3,350

Operating expenses, Public Build- NOA
ings Service
905
Exp.
Repair and improvement of public NOA
buildings
905 Exp.

65,000

75,000

62,502

68,000

224,895

2,423

224,320

7,470

Supplemental in 1964 is for wage board increases. Increase in 1965 is
primarily for operation of new Federal buildings being acquired in 1964
and 1965.

90,000
75,000

15,000
7,000

Increase provides for maintenance of new Federal buildings and continuation of long-range program of general repairs and improvements.

Construction,
projects

public

buildings NOA
905 Exp.

180,956
91,779

157,601
115,000

169,613
131.500

12,012 Estimate includes 151 new projects and an increase in one other, partly
offset by savings from 3 projects which have been otherwise provided
16,500
for or abandoned.

Sites and expenses, public build- NOA
ings projects
905 Exp.

30,500
27,700

40,000
25.000

29,500
28,000

-10,500 Estimate provides for design and site acquisition where necessary, for 41
projects.
3,000

Payments, public buildings pur- NOA
chase contracts
905 Exp.

5,150
5,035

5,200
5,200

10,350
10,350

5,150
5,150

Request provides for payment on 7 projects and prepayments on 13
projects constructed through lease-purchase contracts.

1,031
928

1,464
1,400

433
472

Request provides for space expansion and for furniture and furnishings
of U.S. courts.
(Appropriations in prior years will complete facilities for 73 additional
judges.)

Expenses, U.S. court facilities.905 NOA
Exp.
905 NOA
Exp.

8,500
2,722

5,000

4,000

-1,000

Construction, Federal Office Build- Exp.
ing Numbered 7, Washington,
D.C
905

544

1,000

9,000

8,000

Hospital facilities in the District NOA
of Columbia
905 Exp.

375
75

1.522

2,038

516

Improvements, national industrial NOA
reserve plant No. 485
905 Exp.

1,100
58

850

792

Acquisition of land and building, Exp.
Chicago, 111
905

2,921

Additional court facilities

-15

Construction, public buildings_905 Exp.

193

117

-117

Construction, U.S. Mission Build- Exp.
ing. New York, N.Y
905

-12

(Acquisition completed in 1963.)

Proposed for separate transmittal.

The 1963 amount provided for costs over original estimates for a Federal
grant for construction of a new hospital in southeast Washington.
This appropriation provided improvements essential to national defense.

Construction, Federal Office Build- Exp.
ing Numbered 6, Washington,
D.C
905

(Construction isfinancedby 1962 appropriation.)

(Expenditures are payments of prior obligations.)

(Construction of the last of 5 border stations was completed in October
1963.)
(Expenditures are payments of prior obligations.)
to

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued

to
00

1965

1964

1963
enacted

Account and functional code

decrease

Explanation of NOA requests

GENERAL SERVICES ADMINISTRATION—Continued

Real Property Activities—Continued
General and special funds—Continued

Defense public works, community Exp.
facilities
905

(Expenditures are payments of prior obligations.)
14

Sites and planning, public build- Exp.
ings outside the District of
Columbia
905

-14

(Expenditures are payments of prior obligations.)

w
o

[ntragovernmental funds:

Buildings management fund _ _ _ 905 Exp.

5,991

-2,817

Construction
buildings

public Exp.
905

-256

194

Advances and reimbursements_905 Exp.

-28

Total, real property activities. NOA

485,367

Exp.

392,408

services,

-1,154

1,663

(Operating costs are estimated at $379.8 million. Increase is mainly
modernization work for the Post Office Department.)

-194

(Operating costs are estimated at $15.6 million, an increase of $1.7
million, mainly in repair and improvement work and projects assigned
to GSA by other agencies.)

497,954 |
A 3,350
432,743 |
A 3,350

525,822

24,518

485,304

49,211

41,522
37,721

48,280
47,200

54,800
52,800

6,520
5,600

2,369

PERSONAL PROPERTY ACTIVITIES
General and special funds:

Operating expenses, Federal Sup- NOA
ply Service
_ _ 905 Exp.
Expenses, supply distribution 905 Exp.

-37

Increase is primarily for further increased supply support to the Department of Defense.

Intragovernmental funds:

General supply fund

905 NOA 38,500
-18,531
Exp.

Advances and reimbursements_905 Exp.

637

Total, personal property ac- NOA
tivities.
Exp.

80,022
22,196

30,000
25,335

-8,595

-30,000
-33,930

78,280
72,572

54,800
44,205

-23,480
-28,367

The 1965 program will continue increases in sales to the military with
a slight increase in sales to other agencies. Additional interagency
motor pools are also estimated. Additional capital is unnecessary in
1965 with substantial increases in customers' advances.

UTILIZATION AND DISPOSAL
ACTIVITIES
General and special funds:

762
1,184

Operating expenses, Utilization NOA
and Disposal Service
905 Exp.

9,126
8,604

9,388
8,866

10,150
10,050

Expenses, disposal of surplus real NOA
and related personal property Exp.
(permanent, indefinite, special
fund)
905

1,047
1,095

1,200
1,200

Total, utilization and disposal NOA
activities.
Exp.

10,173
9,699

10,588
10,066

11,350
11,250

762
1,184

14,416
14,389

14,730
14,400

15,500
15,400

770
1,000

Increase is primarily for records management assistance and records
center activities. Records in custody will total 8.9 million cubic feet;
5.4 million reference services will be performed.

4,607
4,652

4,950
4,700

6,000
5,600

1,050
900

Increase is primarily for continued development and management of the
Federal Telecommunications System.

Estimate provides for further emphasis on reuse or prompt disposal of
property.
Proceeds of sales are appropriated for certain expenses of disposals.

o
o

RECORDS ACTIVITIES
Operating expenses, National NOA
Archives and Records Service Exp.
905
TRANSPORTATION AND COMMUNICATIONS ACTIVITIES
Operating expenses, Transporta- NOA
tation and Communications Exp.
Service
- 905
A

Proposed for separate transmittal.

fcO
CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued

Account and functional code

1963
enacted

1964
estimate

1965

Increase or
decrease

Explanation of NOA requests

GENERAL SERVICES ADMINISTRATION—Continued
H3

TRANSPORTATION AND COMMUNICATIONS ACTIVITIES—Con.

w
H

Intragovernmental funds:

Federal telecommunications fund NOA
905 Exp.

9,000

Total, transportation and com- NOA
munications activities.
Exp.

13,607
4,652

1,404

-502

-1,906

4,950
6,104

6,000
5,098

1,050
-1,006

(The 1963 amount was for initial capital for the fund established by
Public Law 87-847.)

DEFENSE MATERIALS ACTIVITIES

General and special funds:

Strategic and critical materials _059 NOA
Exp.

18,095
22,671

23,925
17,000

18,230
17,600

Advances and reimbursements_059 Exp.

-859

-1,000

18,095
21,812

23,925
16,000

18,230
16,600

-5,695
600

Salaries and expenses, Office of NOA
Administrator.
905 Exp.

1,405
1,347

1,438
1,438

1,550
1,550

112
112

Allowances and office facilities for NOA
former Presidents _.. __ __903 Exp.

310
261

300
300

310
310

10
10

Total, defense materials NOA
activities.
Exp.

-5,695
600

Provides $13.8 million, mainly for inventory management, including
storage and disposal of material excess to stockpile needs; $1.4 million
for national industrial equipment reserve activities and $3 million
for operating expenses.

CO
OS

GENERAL ACTIVITIES
General and special funds:

d
o

Increase is for additional activity in business service centers.

Account provides for 3 former Presidents and the widow of a former
President.

Office of Mrs. Jacqueline Bouvier NOA
Kennedy
903 Exp.

65
43

Refunds under Renegotiation Act Exp.
(interest)
905

-65
-21

Funds appropriated in 1964 will remain available in 1965 for payment of
obligations authorized by recent legislation.

-25

(Interest on remaining refunds is covered by balances of prior appropriations.)

Public enterprise funds:

Reconstruction Finance Corporation liquidation fund
905
Limitation on administrative
expense.
Exp.

(25)
-168

-147

-89

(Volume of activity declines as liquidation continues.)

Intragovernmental funds:

Administrative operations fund_905
Limitation on use of fund.
Exp.
Working capital fund
Total, general activities

905 NOA
Exp.
NOA
Exp.

Subtotal

NOA
Exp.

(11,911)
-656

200
88

200
230

1,715
740

1,803
1,117

2,060
1,381

257
264

632,230 1 633,762
A
3,350
553,002 1 579,238
A
3,350

-1,818

1,464
1,532

433
155

631,199 \ 632,298
A
3,350
551,625 [ 577,706
A
3,350

-2,251

623,396
465,896

Total, General Services Ad- NOA
ministration.
Exp.

621,812

(3,690) (Increase in financing is to provide necessary staff services for GSA
-100
programs and programs of other agencies.)

-142

1,584
1,514

Proposed for separate transmittal.

(21,840)
-500

-44

Less: Court facilities and furnish- NOA
ings items transferred to The Exp.
Judiciary Chapter (contra) _905

(18,150)
-400

464,382

1,031
1,377

Request would provide additional capital mainly for replacement of
obsolete printing and reproduction equipment.
O

22,886

22,731

to
00

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued

fcO

to
1963

1965

1964

Account and functional code

Increase or
decrease

Explanation of NOA requests

HOUSING AND HOME FINANCE AGENCY
OFFICE OF THE ADMINISTRATOR
General and special funds:
Salaries and expenses
551 NOA
Limitation on nonadministraExp.
tive expenses.

16,915
(3,700)
16,500

1,593 Increase provides additional staff in supervision and coordination
activities and in the planning advances and urban renewal pro(450)
grams. The appropriation will be consolidated with $14 million
1,400
in administrative funds from other accounts. Nonadministrative
expenses (recovered through fees) provide inspection and audit of
certain projects and loans.

25,000
20,000

3,850
2,000

Increase will provide expansion in comprehensive planning assistance to States, small cities, and metropolitan and regional areas.

387
400

1,500
1,200

1,113
800

Increase will provide for expansion of statistical series on housing
markets to cover rental and existing housing, and special analytical surveys and studies on housing and urban problems.

195
195

200
200

5
5

Estimate provides administrative costs of the existing programs of
mass transportation loans and demonstration grants.

75,000

10,000

75,000
10,000

Authorization is proposed to finance direct Federal assistance for
construction, improvement, and modernization of mass transportation systems. Expenditures under the current transportation program are included under "Public facility loans" and
"Urban renewal fund."

12,694
(17,306)
15,000

12,432 Previous authorization for grants will be used up in 1965, requiring
new appropriations. Increase in number of grants is reflected
(2,568)
in higher liquidating appropriation.
6,000

14,565
(3.250)
14,210

15,322
(3,250)
15,100

553 NOA
Exp.

18,000
\2,389

21,150
18,000

Urban studies and housing re- NOA
search __
551 Exp.

375
243

Administrative expenses, mass NOA
transportation demonstrations Exp.
553

200
190

Urban planning grants

d
a
a

Urban transportation assistance NOA
(proposed legislation)
553 Exp.

Open-space land grants
553 NOA
Liquidation of contract authorExp.
ization.

o
>

250
(14,750)
265

262
(14,738)
9,000

Low-income housing demonstra- NOA
tion programs
551
Contract authorization
NOA
Liquidation of contract authorization.
Ex p.
Farm housing research

551 Exp.

Public enterprise funds:
College housing loans (permanent NOA
authorization to expend from
public debt receipts) __ _ _ -702
Limitation on administrative
expenses.
Exp.

43
A

(2,960)
146

5,000
(1,157)
2,000

(5,666)

-5,000
(3,843)
1,100

3,100

2
300,000

300,000

(1,848)
283,574

(1,903)
222,635

(1,900)
208,028

(-3)
-14,607

Public facility loans______.___553 NOA
Limitation on administrative
expenses.
Exp.

12,534
(1,188)
30,048

(1.220)
33,915

(1,300)
31,274

(80)
-2,641

Public works planning.

12,000

_553 NOA
Exp.

Revolving fund (liquidating programs) : Limitation on adminis- Exp.
trative expenses
551
Urban renewal fund (contract NOA
authorization)
553
Liquidation of contract authorization.
Exp.
Community

A
D
K
L
M

disposal

operations Exp.
552

5,864

2,000
A 4,000
3,528

(145)
-2,014

(135)
-1,931
A

The Housing Act of 1961 authorized $300 million each in 1962-65 for
loans financing student housing and related facilities.

Appropriations in 1963 were for mass transportation loans. Expenditures include substantial loans for other facilities, financed
from 1961 NOA. Increased administrative costs result from
higher levels of activity.

12,000

6,000

5,170

1,642

Proposed 1964 supplemental is to provide funds for interest-free
advances totaling $15 million, financed in part by repayments and
other available funds. In 1965, approvals total $24 million.

(110)
-1,919

(-25)
12

(Decreased administrative costs result from reduced size of investments to be managed and liquidated.)

—1,400,000

New legislative authority in 1964 will provide funds for 1965 and
1966. Accelerating progress under existing contracts requires
higher payments and higher liquidating appropriation.

1,400,000

(319,766)
173,208

(104,805)
251,567

(265,000)
329,700

-^-1,160

-2,153

-417

Proposed for separate trans mittal.
To carry out authorizing legislation to be proposed.
Includes $22,650 thousand to carry out authorizing legislation to be proposed.
Includes $12,294 thousand to carry out authorizing legislation to be proposed.
Includes $4,957 thousand to carry out authorizing legislation to be proposed.

Estimate provides for administrative costs of the low-income housing
demonstration program. Additional contract authorization is
proposed in 1964 to continue grants for testing and demonstration
of new and improved methods of housing low-income families.

(160,195)
78,133
1,736

(Repayments and sales of mortgages will continue to exceed rising
expenses of advance preparations to sell properties at Los
Alamos, N . Mex.)

to
ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963

1964

1965

Increase or

Account an d functional code

Explanation of NOA requests
(-)

HOUSING AND HOME FINANCE AGENCY—Continued

d
o

OFFICE OF THE ADMINISTRATOR—
Continued
Public enterprise funds—Continued

Housing for the elderly fund. _551

NOA

Limitation on administrative
and nonadministrative ex- Exp.
penses.
Total, Office of the Adminis- NOA
trator.
Exp.

100,000

70,000

(744)
18,856

(885)
33,246

75,000

(U50)
49,181

Appropriations in 1965 and balances brought forward from 1964
will allow funds to be reserved for loans amounting to $100
million in 1965, compared to $75 million in 1964. Increased
(265)
1965 administrative costs result from higher program level.
15,935

-25,000

a
427,965
A

535,821

439,359
1,409,000

585,502

443,384
A
75,000
677,017
A
10,000

-1,329,975

101,515

FEDERAL NATIONAL MORTGAGE
ASSOCIATION

Loans to secondary market opera- Exp.
tions
551

-100,820

Special assistance functions

-364,513

551

o
w

Exp. -277,044

100,820
-313,000

51,513

(The trust fund will purchase from Treasury in 1964 the holdings
of preferred stock not currently needed as the basis for financing
new mortgage purchases.)
(Expenditures will rise in 1965 primarily because of increasing
purchases of below-market-interest-rate mortgages on rental
housing for moderate-income families. New commitments for
mortgage purchases will increase by $155 million to $500 million.
Mortgage sales are estimated at $350 million (par) in both
1964 and 1965.)

Management and liquidating func- Exp.
tions
551

-162,265

-112,782

Sale of participations in mortgage Exp.
pools (proposed legislation) __ .551
Limitation on administrative expenses.
Total, Federal National Mort- Exp.
gage Association.

(8,392)
-439,309

(8,750)
-578,115

-74,500

38,282

(Acquisitions of mortgages from the FHA for administration and
liquidation will increase by $155 million (par), but sales of $170
million (par) and mortgage repayments will continue to produce
net receipts for the fund.)

-200,000

(Legislation is proposed to authorize the sale of participations in
pools of mortgages held by FNMA.)

(8,800)
-387,500 1

(50)
-9,385

A-200,000

FEDERAL HOUSING
ADMINISTRATION
Federal Housing Administration NOA
fund (permanent indefinite authorization to expend from corporate debt receipts)
551
Limitation on administrative expenses.
Limitation on nonadministrative
expenses.
Exp.
A
N

162,413

142,395

(10,732)

(9,500)

(69,305)
134,951

(76,565)
56,511

Decrease results from increased use of private rather than FHA
financing of resales of properties acquired as a result of defaults
on insured mortgages, and from transfer of $250 million (par) in
mortgages to FNMA for consolidated administration and liquidation. Property acquisitions will continue to rise but are expected
(10,375)
(875)
to be matched by resales in 1965. Mortgage insurance outstanding is estimated at $48.4 billion by the end of 1965. Increased
(79,750)
(3,185)
application levels, insurance-in-force, and claims activities will
-173,180 -229,691
require increased administrative support and operating expenses.
-142,395

Proposed for separate transmittal.
Includes $50 million to carry out authorizing legislation to be proposed.

to
oo

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
nd fu

al code

1963

1964

1965

Increase or
decrease

00
O

Explanation of NOA requests

HOUSING AND HOME FINANCE AGENCY—Continued
PUBLIC HOUSING
ADMINISTRATION
Low-rent public housing program:
Annual contributions
552 NOA

180,000

197,000

214,000

17,000

14,882

Increase primarily reflects approximately 27,000 additional units
receiving contributions for the first time under contracts previously executed.

Administrative expenses
552 NOA
Limitation on administrative
expenses.
Limitation on nonadministrative expenses.
Exp.

(14,882)

15,484
(15,484)

16,670
(16,670)

1,186 Administrative expenses rise with the heavier management workload.
(U86)

(1,224)
178,867

(1,420)
148,441

(1.605)
222.713

Total, Public Housing Ad- NOA
ministration.
Exp.

194,882
178,867

212,484

230,670
222,713

(185) (Increase will cover inspection of increased construction activity
74,272
and permit acceleration of repair and maintenance at 3 federally
owned and operated projects.)
18,186
74,272

Total, Housing and Home NOA
Finance Agency.
Exp.

785,259

Proposed for separate transmittal.

410,330

148,441
A

794,238
1,409,000
212,339

674,054
75,000
339,050
-190,000
A

( i

-1,454,184
-63,289

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
General and special funds:

Research and development

251

NOA 2,929,407
Exp.

Construction of facilities

Administrative operations
Salaries and expenses

251

251
251

NOA
Exp.

Exp.

The 1964 supplemental is to regain in part the slippage in schedules
in the manned lunar landing program resulting from reductions
in the 1964 appropriations. The increase in 1965 is for continuing manned space flight programs required for achieving a manned
lunar landing by the end of the decade. Effort on meteorological
and communications satellites will continue at a slightly lower
level than in 1964. Effort will continue on unmanned investigations of the lunar andfplanetary environments. Aeronautics
research will continue in support of civil and military requirements with increased emphasis in the supersonic transport program. Funding is also included for supporting research and for
the operation of worldwide tracking and data acquisition networks to meet increased flight program requirements.

4,382,000

331,385

3,805,000
A
100,000

385,000

281,000
520,000

-392,500
45,000

Facilities required for the manned lunar landing program have been
largely funded in prior years. The major portion of the 1965
funds is to provide further facilities for the manned space flight
program, including the Saturn V launch complex and supporting
facilities.

o
o

641,000
565,000

124,149

Additional amount provides for heavier workload at NASA installations to support manned space flight and other programs.

5,099,966 | 5,304,000

63,034

673,500
475,000

743,634
225,267

516,851
405,000

NOA
Exp.

Total, National Aeronautics NOA
and Space Administration.
Exp.

2,308,384

3,909,615
A
141,000
3,495,000
A
25,000

160,000

18,695
3,673,041
2,552,347

141,000

4,375,000
A
25,000

4,890,000
A
100,000

590,000

Proposed for separate transmittal.
To carry out authorizing legislation to be proposed.

to
00

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963
enacted

Account and functional code

1964
estimate

1965

to
00
00

Increase or
decrease

Explanation of NOA requests

VETERANS ADMINISTRATION
General and special funds:

-3,186
-7,000

Reduction reflects declining workloads, increased productivity and
transfers of costs of tort claim settlements and burial flags to the Compensation and pensions appropriation. Decreases are offset in part by
mandatory salary reform costs.

General operating expenses. __805 NOA
Exp.

161,245
158,443

159,710
162,000

156,524
155,000

Medical administration and mis- NOA
cellaneous operating expenses
804 Exp.

13,982

14,800

14,915

16,576

15,076

14,000

-1,076

Medical and prosthetic research NOA

30,500

804 Exp.

33,742
34,300

36,987
35,905

3,245
1,605

Increase provides for program growth consistent with 10-year planned
objective.

26,534

1,081,170
A
10,579
1,105,299
A
9,865

1,115,935

24,186

Supplemental in 1964 is for wage board increases. The 1965 estimate
provides for mandatory salary reform costs; activation of 2,000 nursing home beds; activation of the new Washington, D.C., hospital;
completing activation of a new restoration center at East Orange,
N.J.; increased maintenance and repair requirements; establishing 5
new day care centers; increased utilization of utilities, drugs and
medical supplies; and increases in medical and dental fees for hometown care.

Medical care

804 NOA 1,048,142
Exp.

1,035,762

Compensation and pensions:
(Veterans service-connected NOA 2,117,179
compensation)
801 Exp. 2,116,179

(Veterans non-service-connected NOA 1,699,952
pensions)
802 Exp. 1,698,390

115 Increase provides for mandatory salary reform costs.
i

o
w
GO

1.109,571 1 -4,879
A714

2,121,381
2,126,000

1,738,585
1,743,000

2,121,488
2,120,000

107
-6,000

Increases include new cost-of-living increases in dependency and indemnity payments to widows, parents, and children, offset mainly by
decreases due to deaths of World War I and World War II veterans
and transfers to pension rolls.

1,778,160
1,777,000

39,575
34,000

Increase arises mainly in caseloads among World War II and Korean
conflict veterans and among survivors of veterans of World War I and
World War II.

56,869
56,869

61,034
60,000

63,352
63,000

2,318
3.000

Increase includes tort claims and burial flags (previously programed
under "General operating expenses") and subsistence allowance to
disabled peacetime ex-servicemen undergoing vocational rehabilitation.

803 NOA
Exp.

95,800
95,600

67,000
64,600

39,600
43.600

-27,400
-21,000

Reduced requirements result primarily from the phasing out of Korean
conflict readjustment trainees by Jan. 31, 1965, as provided by law.

Veterans insurance and indemni- NOA
ties
805
Permanent, indefinite, special NOA
fund.
Exp.

32,000

30,200

13,700

-16,500

682
33.987

800
28,600

800
21,700

-6,900

Decreases result principally from phaseout of indemnities paid to survivors of veterans and servicemen deceased during the Korean conflict.
Permanent NOA is premium receipts on policies issued to certain disabled veterans of World War II.

Grants to the Republic of the NOA
Philippines
804 Exp.

350
301

310
310

Construction of hospital and domi- NOA
ciliary facilities
804
Exp.

77,000

(Other veterans benefits and NOA
services)
805 Exp.

Readjustment benefits

65.752

76,796 1 102,000
5,000
80,500 |
74,500
A
A 4.500
500

Construction—Corregidor-Bataan NOA
Memorial
805 Exp.

1,500
A 150

Direct loan to veterans and reserves (authorization to expend
from debt receipts):
803
Permanent
NOA
Current
NOA
Exp.
Loan guaranty revolving fund_803 Exp.
Sale of participations in mortgage Exp.
pools (proposedlegislation).803
A

Proposed for separate transmittal.

-751

167

200,000

150,000

-86,187
-22,922

-69,000

20,204
10,000
-1,500

Supplemental in 1964 is for alterations of existing hospitals to provide
2,000 nursing home beds. Proposal for 1965 is the fifth-year increment of a 15-year $1,200 million modernization program. Includes
$6.4 million for construction and planning research facilities.
Supplemental in 1964 is for construction of a recently authorized memorial on Corregidor to those who fought in the Pacific area in World
War II.

500

350

304

137

(Receipts of $49 million from canteen sales to hospital patients and
staff approximately offset expenses.)

150,000 1-150,000
-150,000
-171,000 -102,000

Loans decrease as World War II veterans entitlement runs out. Sale
of loans and other unobligated balances eliminate need for borrowings from the Treasury. Permanent NOA of $150 million which
would otherwise become available for 1965 is proposed for cancellation.

Public enterprise funds:

Canteen service revolving fund Exp.
805

Estimate is for medical care and treatment of daily average of 180
Philippine Commonwealth Army veterans.

-63,000

10,000
A

-73,000

(Receipts, primarily from planned sale of mortgage notes, are expected
to more than offset expenditures.)

-100,000 -100,000

(Legislation is proposed to authorize the sale of participations in pooled
mortgage loans.)

O
O

oo
CD

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1963

1964

Increase or

1965

Explanation of NOA requests

(-)

VETERANS ADMINISTRATION—Continued
Public enterprise funds—Continued
Rental, maintenance and repair of Exp.
quarters
805

(Receipts from rental housing offset maintenance costs.)

Service-disabled veterans insur- Exp.
ance fund
805

-102

-34

Soldiers' and sailors' civil relief_803 Exp.

-21

Veterans special term insurance Exp.
fund _ _
_ 805

-19.840

-15.739

-25,406

-9,667

Vocational rehabilitation revolving Exp.
fund
805

-8

(Receipts from premiums and the insurance and indemnities appropriation approximately cover expenditures of $9.3 million, mainly death
claims.)
O

(Increased net receipts result primarily from the completion of payment
in 1964 of the special dividend authorized by Public Law 87—223.)
(Repayment of loans to trainees are expected to cover new loans.)

805 Exp.

-1.784

Total, Veterans Administra- NOA
tion.
Exp.

5,533,700

Supply fund

-2

(A small volume of claims will be partly offset by repayments.)

5,172,823

-815

-901

-86

(Fund is estimated to net near zero on a volume of $183.7 million.)

5,535,528 15,443,771 -108,836
A 17,079
5,338,303 5,160,626 j-282,478
A 10.515 A-94,286

OTHER INDEPENDENT AGENCIES
ADVISORY COMMISSION ON
INTERGOVERNMENTAL RELATIONS
General and special funds:
Salaries and expenses

910 NOA
Exp.

375

412

385
380

395
393

This Commission brings together representatives of Federal, State, and
local Governments for studies of intergovernmental cooperation.

ALASKA INTERNATIONAL RAIL AND
HIGHWAY COMMISSION
Salaries an d expenses

506 Exp.

-1

(The Commission made its final report to the Congress in 1961.)

AMERICAN BATTLE MONUMENTS
COMMISSION
805 NOA
Exp.

1,580
1,473

1,800
1,817

Construction of memorials and Exp.
cemeteries
805

353

183

Total, American Battle Mon- NOA
uments Commission.
Exp.

1,580
1,826

1,800
2,000

1,722

922

9,425

10,240
9,522

Salaries and expenses

1,800
1,900

Level of maintenance is expected to remain at about the 1964 level.
83
-183

1,800
1,900

(Account is available only to pay old obligations.)

-100

CENTRAL INTELLIGENCE AGENCY
Construction

905 Exp.

-922

(Construction will be completed with use of unexpended balances.)

CIVIL AERONAUTICS BOARD
Salaries and expenses

508 NOA
Exp.

Payments to air carriers:
Contract authorization (perma- NOA
nent, indefinite)
501
Liquidation of contract authorization.
Exp.
Total, Civil
Board.
A

Aeronautics NOA
Exp.

Proposed for separate transmittal.

9,374
82,740
(82,864)
81,857
92,165
91,231

87,656
(79,000)
( A 5,000) 1
80,478
A 5,000 |
97,896
90,000 |
A 5,000

10,800

560

10,000

478

84,024

-3,632

(82,824) (-U76)
82,824

-2,654

94,824
92,824

-3,072
-2,176

O
O

Increases are primarily to strengthen the aircraft accident investigation
program.
<

Airline subsidy obligations are expected to decline in 1965.
(Supplemental in 1964 is for funds to meet additional authorized contractual payments. Appropriation for 1965 liquidates that part of
subsidy contract obligations for which payments are due during the
year.)

to
CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued

to
CO

1963

1964

1965

Account and functional code

Increase or
decreas

Explanation of NOA requests

OTHER INDEPENDENT AGENCIES—Continued
CIVIL SERVICE COMMISSION
General and special funds—Continued

22,141
22,071

21,805
22,784

22,187
21,992

382
-792

Mandatory salary reform costs are partly offset by decreases resulting
from productivity improvement. Provision is also made for purchase
of a computer in lieu of rental.

600
459

600
579

634
633

34
54

Increase in 1965 results from expanded workload and mandatory salary
reform costs.

Annuities under special acts. _906 NOA
Exp.

2,000
1,862

1,800
1,837

1,700
1,714

-100
-123

Panama Canal construction annuitants are estimated to drop from
1,518 to 1,347; Lighthouse Service widows from 425 to 423.

Government payment for annui- NOA
tants, employees health benefits Exp.
fund
906

5,166
6,789

9,500
9,500

10,664
10,664

1,164
1,164

On June 30, 1963, 116 thousand eligibles were enrolled; increases to 157
thousand in 1964 and to 201 thousand in 1965 are expected.

(1,099)

(1.125)

(1.151)

Salaries and expenses

906 NOA
Exp.

Investigation of United States NOA
citizens for employment by in- Exp.
ternational organizations. _ _908

3
w.
o

Trust fund:

Limitation on administrative expenses, employees health benefits fund.

(26) (Increase will provide for additional eligibility determinations and mandatory salary reform costs.)

General and special funds:

Government contribution, retired NOA
employees health benefits fund
906
Reappropriation
NOA
Exp.

8,000

14,800

14,840

5,200
13,200

14,800

14,840

Increase includes amount to pay mandatory contributions unpaid in
1964.

Trust fund:

Limitation on administrative expenses, retired employees health
benefits fund.

(388)

(348)

(392)

General and special funds:

Payment to civil service retirement NOA
and disability fund
906
Exp.
Trust fund:

Limitation on administrative expenses, employees life insurance
fund.

30,000

62,000

30,000

62,000

(264)

A
A

(-44)

65,000 1-62,000
-65,000
65,000 1-62,000
-65,000

(270)

(277)

(Administrative expense will decrease with drop in number of estimated
participants from 236 to 232 thousand.)

Estimate is to pay costs of additional benefits granted in 1963. Pending
legislation to provide permanent financing would eliminate the need
for an appropriation in 1965.

(7) (Increased participation under regular insurance program is partly
offset by decrease in beneficial association members.)

Intragovernmental funds:

Investigations (revolving fund) Exp.
906

-699

632

Total, Civil Service Commis- NOA
sion.
Exp.

73,107

110,505

73,683

-343

-975

(Decrease in expenditures reflects decreases in investigations in process
that will rot be completed by the end of 1965.)

115,025 1-60,480
A -65,000
114,500 1-62,632
112,132
A -65,000

COMMISSION OF FINE ARTS
General and special funds:

Salaries and expenses

555 NOA
Exp.

83
82

91
91

161
161

960
1,046

985
970

°985

70
70

Estimate provides for mandatory salary reform costs, increased travel
costs, consultant services, and equipment.

COMMISSION ON CIVIL RIGHTS
Salaries and expenses

908 NOA
Exp.

A
Proposed for separate transmittal.
° Includes $555 thousand to carry out legislation pending in Congress.

965

Estimate will continue program at about 1964 level.

-5

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1963

1965

1964

Explanation of NOA requests

(-)
OTHER INDEPENDENT

AGENCIES—Continued

COMMISSION ON INTERNATIONAL
RULES OF JUDICIAL PROCEDURE
General and special funds—Continued
Salaries and expenses
910 NOA
Exp.

10
3

-7

(This Commission expired on Dec. 31, 1963.)

EXPORT-IMPORT BANK OF
WASHINGTON
Public enterprise funds:
Export-Import Bank of Washington fund
152.
Limitation on operating expenses.
Limitation on administrative
expenses.
Exp.

(1,295,000) (1,314,366)
(3,123)
-391,547

(-1,314,366)

(3,500)
(3,825)
(325)
-648,981 -855,914 -206,933 (Disbursements will be exceeded by loan repayments, sales of certificates
and individual loan maturities with recourse, and other receipts.)

Liquidation of certain Reconstruction Finance Corporation assets Exp.
152

-3

-1,250

1,250

Total, Export-Import Bank of Exp.
Washington.

-391,550

-650,231

-855,914 -205,683

2,564

2,785

2,876

(2,632)
2,567

(2,785)
2,785

(2,876)
2,876

(Completion of liquidation is anticipated in 1964.)

FARM CREDIT ADMINISTRATION
General and special funds:
Administrative expenses (perma- NOA
nent,
indefinite,
special
fund)
352
Limitation on administrative expenses.
Exp.

Activity is financed by assessments collected from the banks in the farm
credit system. No significant change in administrative services is
contemplated. The increase in 1965 is for mandatory salary reform
costs.
(91)
91
91

Public enterprise funds:

13,310

9,920

9,900

-20

(Expenditures represent Government investment in Federal intermediate
credit banks and production credit associations.)

Banks for cooperatives investment Exp.
fund
352

-11,980

-13,927

-11,750

2,177

(Negative expenditures represent a return of capital previously invested
in banks for cooperatives.)

Total, Farm Credit Admin- NOA
istration.
Exp.

2,564
3,898

2,785
-1,222

2,876
1,026

91
2,248

Short-term credit investment fund Exp.
352

FEDERAL COAL MINE SAFETY
BOARD OF REVIEW
General and special funds:

Salaries and expenses

652 NOA
Exp.

H
5 Increase is primarily for mandatory salary reform costs.
5

70
59

65
65

70
70

14,951
14,088

15,584
16,000

16,610
16,400

1,026

(13,619)
-119

(15,230)

(17,333)

(2,103)

FEDERAL COMMUNICATIONS
COMMISSION
Salaries and expenses

508 NOA
Exp.

400

Increase provides for more intensive enforcement activities in the field
and regulation of common carriers in greater depth.

FEDERAL HOME LOAN BANK BOARD
Public enterprise funds:

Federal Home Loan Bank Board
revolving fund
551
Limitation on administrative
and nonadministrative ex- Exp.
penses.
Federal Savings and Loan Insurance Corporation fund 551
Limitation on administrative exExp.
penses.

-67

-28

(225) (-1,090)
(1,315)
(1.161)
—
-263,543 -250,151 -348,838 -98,687

(Expenses are paid from fees, charges, and assessments—primarily by
member institutions and the Federal home loan banks. Limitation
increases in 1965 primarily because of mandatory salary reform costs
and transfer of certain functions from the Corporation.)
(Premiums and other receipts will continue to increase, while acquisition
of assets from insured institutions will decrease, causing a rise in net
revenues. Administrative expenses decrease because of transfer of
certain functions to Federal Home Loan Bank Board revolving fund.)
Ox

fcO
CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963
enacted

Account and functional code

1964

Increase or
decreas

1965

Explanation of NOA requests

OTHER INDEPENDENT AGENCIES—Continued
FEDERAL HOME LOAN BANK BOARD—
Continued
Public enterprise funds—Continued
Home Owners' Loan Corporation Exp.
fund
551
Total, Federal Home Loan Exp.
Bank Board.

s
1
-263,661

1
-250,217

1
-348,865

(Only expenditures are for interest on matured bonds.)

-98,648
CO

o
FEDERAL MARITIME COMMISSION
General and special funds:
Salaries and expenses

508 NOA
Exp.

2,267
2,142

2,575
2,586

3,300
3,100

725
514

Increase is to provide for expanding caseload and for development of
economic data for evaluating shipping rates and practices.
CO
O5

FEDERAL MEDIATION AND
CONCILIATION SERVICE
Salaries and expenses

652 NOA
Exp.

5,189
5,052

5,687
5,650

6,100
6,050

413
400

Increase will permit greater efforts to avoid disputes through preventive mediation.

11,007
10,653

11,850
12,171

13,335
13,310

1,485
1,139

Backlog of natural gas producer rate cases will be reduced as first area
rate case is completed. Regulation of interstate electric power rates
will be strengthened.

FEDERAL POWER COMMISSION
Salaries and expenses

401 NOA
Exp.

Payments to States under Federal NOA
Power Act (permanent, indefi- Exp.
nite, special fund)
401

89
98

89
89

-9

Total, Federal Power Com- NOA
mission.
Exp.

11,105
10,712

11,939
12,269

13,424
13,399

1,485
1,130

11,472
11,515

12,215
11,900

13,270
12,900

1,055
1,000

738

States receive 37.5% of license receipts from hydroelectric projects in
national forests and public lands.

FEDERAL TRADE COMMISSION
Salaries and expenses

508 NOA
Exp.

Increase provides for compliance investigations, expanded enforcement
activity under textile and fur statutes, greater emphasis on industry
guidance, and mandatory salary reform costs.

FOREIGN CLAIMS SETTLEMENT
COMMISSION
151 NOA
Exp.

514

1,414
1,468

1,700
1,728

Payment of Philippine war dam- NOA
age claims
151 Exp.

73,000
290

21,832

17,505

-4,327

Total, Foreign Claims Settle- NOA
ment Commission.
Exp.

73,738
804

1,414
23,300

1,700
19,233

286
-4,067

43,898
42,294

45,691
46,294

47,200
47,035

100
97

100

100
100

Salaries and expenses

286 Increase results from rise in General War Claims workload from 3 thou-

260

sand in 1964 to 8.5 thousand in 1965.
Transfer of $20 million of unobligated balance will be made for the
Philippine education program in 1965. Expenditures in 1965 will
complete the claims program.

GENERAL ACCOUNTING OFFICE
Salaries and expenses

904 NOA
Exp.

O
O

1,509 Increase is primarily for mandatory salary reform costs and extended
741
audit coverage.

HISTORICAL AND MEMORIAL
COMMISSIONS
Civil War Centennial Commis- NOA
sion
910 Exp.
Corregidor-Bataan
Commission
A

Memorial NOA
805 Exp.

Proposed for separate transmittal.

103

Ml
Ml

25
25

-3

(Expenditure activity will decline slightly.)

14 Supplemental in 1964 is for planning for the memorial Estimate in
14
1965 will continue the work of the Commission.

O
CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1963
enacted

1964

1965

Explanation of NOA requests

decrease

OTHER INDEPENDENT AGENCIES—Continued
HISTORICAL AND MEMORIAL
COMMISSIONS—Continued
General and special funds—Continued
Franklin Delano Roosevelt Me- NOA
morial Commission.
910 Exp.

25
2

.25

-25

-4

(The Commission is concerned with the Jefferson National Expansion
Memorial, St. Louis, Mo.)

10
10
135
100

-10

100 \
Ml
142
All

125

r2!

(The Commission is expected to complete its work under the 1963
authorization.)

14
-28
CO

INDIAN CLAIMS COMMISSION
Salaries and expenses

902 NOA
Exp.

297
269

297
290

313
305

16
15

23,500
23,519

24,669
24,000

25,850
25,000

1,181
1,000

Increase is primarily for mandatory salary reform costs.

INTERSTATE COMMERCE
COMMISSION
Salaries and expenses

__508 NOA
Exp.

3
GO

Woodrow Wilson Memorial Com- NOA
mission
__
910 Exp.
Total, historical and memorial NOA
commissions.
Exp.

w
a
a

(No activity is expected in 1965.)

James Madison Memorial Com- Exp.
mission
910
United States Territorial Expan- Exp.
sion Memorial Commission. _910

(The Commission is expected to complete its work under the 1963
NOA.)

Increases are for additional workload arising from growth of the regulated motor carrier industry.

NATIONAL CAPITAL HOUSING
AUTHORITY

37
37

555 NOA
Exp.

632

650

774

586

725

774

Land acquisition, National Capital NOA
park, parkway, and playground Exp.
system
555

100
1,296

1,615

500

-1.115

Total, National Capital Plan- NOA
ning Commission.
Exp.

732
1,882

650
2,340

774
1,274

124
-1,066

Operation and maintenance of NOA
properties
555 Exp.

-6 Decrease results from demolition in 1964 of 23 existing low-rent
housing units. Receipts ($39 thousand in 1965) are deposited in the
-6
general fund.

NATIONAL CAPITAL PLANNING
COMMISSION

Salaries and expenses

124 Estimate provides for staff to deal with increased workload, publication
of comprehensive plans, increased travel and communication costs,
and mandatory salary reform costs.

NATIONAL CAPITAL TRANSPORTATION AGENCY

1,000
900

555 NOA
Exp.

2,893
2,290

Land acquisition and construe- NOA
tion
555 Exp.

400
33

Total, National Capital NOA
Transportation Agency.
Exp.

3,293
2,323

1,000
900

500
500

20,966
20,945

22,422
22,435

25,250
24,962

Salaries and expenses

500
500

-500
-400

Employment will be reduced pending enactment of legislation providing
for rapid transit for the National Capital region.

(Funds have been appropriated for advance acquisition of rights-of-way
for rapid transit facilities.)

-500
-400

NATIONAL LABOR RELATIONS
BOARD

Salaries and expenses
A

652 NOA
Exp.

Proposed for separate transmittal.

2,828 Estimate reflects continuing increases in unfair labor practices caseload
2,527
and in representation petitions.
fcO
CO
CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1963
enacted

1964

Increase or
decrease

1965

OTHER INDEPENDENT

Explanation of NOA requests

AGENCIES—Continued

NATIONAL MEDIATION BOARD
General and special funds—Continued
Salaries and expenses
652 NOA
Exp.

1,939
1,812

1,950
1,948

1,970
1,968

20
20

Increase is primarily for mandatory salary reform costs.
d

NATIONAL SCIENCE FOUNDATION
703 NOA
Exp.

322,476
206,858

353,000
259,953

International Geophysical Year_ _ Exp.

-5

Intragovernmental funds:
Advances and reimbursements_703 Exp.

-480

Total, National Science Foun- NOA
dation.
Exp.

322,476
206,372

353,000
260,000

34
30

38
38

Salaries and expenses

7fi3

487,700
301,700

134 ,700
41 ,747

-47

Includes increase to emphasize science education (by 32%), institutional development and improvement (by 88%), and basic research
(by 18%).
(Expenditures under prior obligations will be complete in 1964.)

I
487,700
301,700

134 ,700
41 ,700

OUTDOOR RECREATION RESOURCES
REVIEW COMMISSION
General and special funds:
Salaries and expenses

405 Exp.

-13

(The Commission's work has been completed.)

PARTICIPATION IN INTERSTATEFEDERAL COMMISSIONS
Delaware River Basin Commission:
Salaries and expenses
401 NOA
Exp.

39
39

1 This appropriation provides for the expenses of the U.S. Commissioner,
his alternate, and their staff.
1

Contribution to the Delaware NOA
River Basin Commission _ 401 Exp.
Total, Delaware River NOA
Basin Commission.
Exp.
Interstate Commission on the Po- NOA
tomac River Basin: Contribu- Exp.
tion
555
Total, participation in inter- NOA
state-Federal commissions. Exp.

92 I
92

80
100
114
130

117
117
155
155

131
131

5
5

119
135

160
160

136
136

300
120

200
120

-25
-25
-24
-24

The amount recommended is the Federal share (24.2%) of the net annual expense budget as adopted for 1965 by the Commission.

The United States contributes $5 thousand annually for the Commission's efforts to reduce pollution.

-24
-24

PRESIDENT'S ADVISORY COMMITTEE
ON LABOR-MANAGEMENT POLICY

President's Advisory Committee NOA
on Labor-Management Policy Exp.
652

No change in the level of activities is anticipated.

RAILROAD RETIREMENT BOARD

Payment
credits

for military

13,834
13.834

service NOA
655 Exp.

Payment to railroad unemploy- Exp.
ment insurance account 652

-601

13,834 Estimate is first of proposed 10 annual installments to pay amount due
the account for military service of railroad workers.
13.834
(Program of temporary extended benefits has expired.)

Trust fund:

Limitation on salaries and expenses.

(9,906)

(11,065)

(10.560)

(-505) (Claims from railroad workers and numbers of beneficiaries are expected to increase. Increases in productivity and decline in the
number of industry workers result in a decrease.)

RENEGOTIATION BOARD
General and special funds:

Salaries and expenses

904 NOA
Exp.

2,446
2,325

2,550
2,500

2,600
2.625

50 Provides for mandatory salary reform costs. The Renegotiation Act
expires on June 30, 1964, but this will have no effect on the work of
125

the Board until later years. Legislation to extend will be proposed.

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands cf dollars)—Continued

1963

Account and functional code

1964

1965

Increase or
decreas

Explanation of NOA requests

OTHER INDEPENDENT AGENCIES—Continued
ST. LAWRENCE SEAWAY
DEVELOPMENT CORPORATION
Public enterprise funds:
St. Lawrence Seaway Development Corporation fund 502
Limitation on administrative
expenses.
Exp.

(424)
1.437

(429)
1,000

(450)
1,500

(21)
500

(Operating costs, interest, and some additional construction will be
financed from revenues of $4.5 million and borrowing of $1.5 million
from the Treasury.)

SECURITIES AND EXCHANGE
COMMISSION
General and special funds:
Salaries and expenses

508 NOA
Exp.

55
13,219
13,207

13,933
14,200

15,225
15,100

1,292
900

Increases emphasis on investigations and enforcement; provides more
frequent inspections of investment companies and investment advisers; and includes mandatory salary reform costs.

37,569
34,489

37,705
37,230

43,020
42,350

5,315
5,120

Increase reflects mandatory salary reform costs and higher workloads.
Registrations will increase 38% from 1,526 to 2,110 thousand.

5,879

6,972

7,476

504

Increase provides for mandatory salary reform cost and for full-year cost
of personnel added during 1964.

(27,500)

(27,800)

(29,193)

(1,393)

(Increase provides for mandatory salary reform cost and for full year
cost of personnel added during 1964.)

SELECTIVE SERVICE SYSTEM
Salaries and expenses

059 NOA
Exp.

SMALL BUSINESS ADMINISTRATION
Salaries and expenses

506 NOA

Limitation to be derived from
revolving fund.

Limitation to be derived from
trade adjustment loan assist- Exp.
ance.
Trade adjustment
ance

4.849

loan assist- NOA
506 Exp.

Grants for research and manage- Exp.
ment counseling
506

(30)
7.144

(100)
7,313

1,500
25

500

161

341

300,000
137,368

90,000
133,649

(70) (Administrative costs of trade adjustment loan program rise as program
169
activity grows.)
-1,500
475
-341

Program will be funded from available balances of 1964 appropriation.

(Old obligations are expected to be fully liquidated in 1964.)

Public enterprise funds:

Revolving fund

506 NOA
Exp.

Reconstruction Finance Corpora- Exp.
tion liquidation fund
506
Intragovernmental funds:

133,676

-90,000
27

Advances and reimbursements_506 Exp.

-11

Total, Small Business Admin- NOA
istration.
Exp.

305,879
142,407

Higher program level in 1965 will be financed entirely by repayments,
sales, and available balances.
(Balance has been transferred to preceding fund.)

98,472
141,159

7,476
141,489

-90,996
330

SMITHSONIAN INSTITUTION

General and special funds:

Salaries and expenses

704 NOA
Exp.

Remodeling of Civil Service Com- NOA
mission Building
704 Exp.
Construction and improvements, NOA
National Zoological Park___704 Exp.
A

Proposed for separate transmittal.

11,000
10,509

13,124 1
A 112
13.035
A110

14,794

1,558

Supplemental in 1964 is for wage board pay increases. Estimate in
1965 provides for mandatory salary reform costs, staffing of the new
14,501 1 1,358
Museum of History and Technology and the east wing of the Natural
History Building, and broadened scientific effort.
A2

169

5,465
1.404

1,000
2.246

-4,465
842

1,275
90

1,275
1.500

1,776
2.200

501
700

Provides for remodeling of the building as an art gallery.
Provides for replacement of exhibits, additional parking, extension of
utilities, modernization of sewage system, and planning.
00

o
00

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963

1964

1965

Increase or
decreas

Account and functional code

Explanation of NOA requests

OTHER INDEPENDENT AGENCIES—Continued
SMITHSONIAN INSTITUTION—Con.
3

General and special funds—Continued

National Air Museum

511
425

704 NOA
Exp.

Salaries and expenses, National NOA
Gallery of Art
704
Exp.

2,114
2,006

2,138
A
38 1
2,140
A 38 1

Additions to the Natural History Exp.
Building
704

1,949

Museum of History and Technol- Exp.
ogy
704

5,509

1,364
1.411
2,147

853
986

The Institution will complete planning for a National Air Museum Building.

-29

The estimate provides for workload increases, maintenance of building
and equipment, and mandatory salary reform costs. Repairs to glass
roof, from prior years' NOA, will be completed in 1965.

2,284

106

3,358

5,085

1,727

4,108

324

-3,784

W
w

a
a

(Construction of the east wing was completed in 1963. Construction of
the west wing, with balances of prior NOA, is scheduled for 1964.)
(The building will be completed in 1964.)

o
t1

Intragovernmental funds:

Advances and reimbursements, Exp.
Smithsonian Institution 704

-27

Total, Smithsonian Institu- NOA
tion.
Exp.

14,389
20,204

22,513 |
A 150
26,011
A
148

28,092 |
A2

425
444

475
475

21,081

-1,582

1,935

SUBVERSIVE ACTIVITIES CONTROL
BOARD
General and special funds:

Salaries and expenses

908 NOA
Exp.

395
338

50
31

Increase will finance mandatory salary reform costs.

TARIFF COMMISSION
Salaries and expenses.

_ 151

NOA

Exp.

2,950
2.767

3,145
3,104

3,324
3.310

206

1,803
1.770

1,890
1,870

1,960
2.004

134

14.943

10,000

17,500

7.500

(Power revenues of $295 million, together with $75 million from revenue
bonds will be used to finance power operations and a $137 million
investment in power system facilities, including construction on
a 900,000-kilowatt power unit. Payment to the general fund will
include $10 million for reduction of investment and a dividend of
$42.2 million. Returns to the general fund and revenue bond
proceeds do not effect net expenditures.)

35,071
38,506

47,142
47,000

50,915
50.000

3,773
3.000

An appropriation of $50.9 million and $25.0 million of other receipts will
finance all operating costs except power operations and provide
$36.0 million for construction of navigation, chemical, and other nonpower facilities. Increases are principally for added capital outlay,
including second year construction on Nickajack dam and lock.

179

Increase anticipates larger number of public investigations, and work on
Summaries of Tariff Information.

TAX COURT OF THE
UNITED STATES
Salaries and expenses

904 NOA
Exp.

Increase is primarily for mandatory salary reform costs.

TENNESSEE VALLEY AUTHORITY
Public enterprise funds:

Tennessee Valley Authority fund:
Power proceeds and borrow- Exp.
ings
401

Appropriations and nonpower NOA
proceeds
401 Exp.

Total, Tennessee Valley NOA
Authority.
Exp.

35,071
53,449

47,142
57,000

50,915
67.500

3,773
10.500

6,500
2.333

7,500
7,410

11,000
9.200

3,500
1,790

u
ft)
>

UNITED STATES ARMS CONTROL
AND DISARMAMENT AGENCY
General and special funds:

Arms control and disarmament NOA
activities
151 Exp.
A

Proposed for separate transmittal.

Increase will provide for additional contractual research.

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1963

1964

1965

Increase or

Explanation of NOA requests

(-)

OTHER INDEPENDENT AGENCIES—Continued
UNITED STATES INFORMATION
AGENCY
General and special funds—Continued
Salaries and expenses
153 NOA
Exp.

123,090
121,465

133,882
125,500

143,800
136,800

9,918
11,300

Increase will provide $4.9 million for expansion of oversea programs
and $3.1 million for support of worldwide television, motion picture,
radio, press and publications, and information center activities.

-3,550
200

Currencies excess to U.S. needs supplement the appropriation immediately above and are used to pay local expenses.

7,200
6,715

-617

Estimate covers exhibits at international fairs, trade missions to promote
Amercian exports, labor missions, and special exhibits in the Soviet
Union, East Europe, Sao Paulo, and Venice.

450
485

-33

Currencies excess to U.S. needs supplement the appropriation immediately above and are used to pay local expenses.

Salaries and expenses (special for- NOA
eign currency program)
153 Exp.

8,500
10,099

11,750
11,000

8,200
11,200

Special international exhibitions NOA
153 Exp.

7,600
6,770

7,200
7,332

Special international exhibitions NOA
(special foreign currency pro- Exp.
gram
153

375
524

450
518

Acquisition and construction of NOA
radio facilities
153 Exp.

16,150
14,756

12,070
14,150

15,116
15,250

3,046
1,100

Estimate for 1965 is largely to complete new transmitting facility in
Greece.

media guarantee NOA
153 Exp.

1,000
1,850

750
1,781

1,000
1,077

250
-704

Estimate will maintain the program at about the 1964 level of guarantees.

Total, United States Informa- NOA
tion Agency.
Exp.

156,715
155,463

166,102
160,281

175,766
171,527

9,664
11,246

Pd
I-*
CD

Public enterprise funds:
Informational
fund

U.S. STUDY COMMISSIONSOUTHEAST RIVER BASINS
General and special funds:

552
669

167

Salaries and expenses: Reappro- NOA
priation
__401 Exp.

237
106

Total, other independent NOA
agencies.
Exp.

1,285,054

Salaries and expenses. _

__401 NOA
Exp.

-167

(Final report was submitted to the President on Sept. 24, 1963. The
Commission ceased to exist on Dec. 23, 1963.)

-7

(Final report was submitted to the President on May 28, 1962. The
Commission ceased to exist on Aug. 28, 1962.)

U.S. STUDY COMMISSION—TEXAS

293,322

1,115,485 1,207,2711
26,625
A 161 A -65,000|
187,670
— 19,6901 -277,517
A5J59 A—64,998]

DISTRICT OF COLUMBIA

General and special funds:

53,220 1 17,652
4,800
53,220 1 17,652
M,800

Federal payment to District of NOA
Columbia (proposed legislation)
555 Exp.

32,899

40,368

32,899

40,368

Loans to District of Columbia for NOA
capital outlay, general fund_555 Exp.

18,700

11,300

8,600

15,000

Loans to District of Columbia for NOA
capital outlay, highway fund Exp.

1,600
7,500

1,938

800
6,000

4,062

Loans are 30-year-interest-bearing, to assist highway construction.

Loans to District of Columbia for NOA
capital outlay, water fund. _555 Exp.

850

3,900

3,000

-900

Loans are 30-year-interest-bearing, to assist water system construction.
No new loans are contemplated in 1965.

Proposed for separate trans mittal.

-2,700

800

Amount of $50 million is to help defray expenses of the government of
the District and $3.2 million is for water and sewer services to the
Federal Government. Supplemental in 1965 will be authorized by
legislation to base the payment on a formula reflecting impact of the
Federal Government on the District.
Loans are 30-year-interest-bearing, to assist in constructing facilities.

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
CO

1964

1963

Account and functional code

1965

Explanation of NOA requests

DISTRICT OF COLUMBIA—Continued
General and special funds—Continued
Loans to District of Columbia for NOA
capital outlay, sanitary sewage Exp.
works fund
555

3,242
2,400

Federal contributions and loans to NOA
the Metropolitan area sanitary Exp.
sewage works fund
555
Repayable advances to the District NOA
of Columbia general fund (per- Exp.
manent, indefinite)
555
Advances to stadium sinking fund, NOA
Armory Board (permanent, in- Exp.
definite authorization to expend
from debt receipts)
555

8,000
9,000

5,000
3,500

3,000
5,500

Loans are 30-year-interest-bearing, to assist construction of separate
storm drainage and sanitary sewers.

14,500

6,000

3,550

-2,450

No appropriation is requested in 1965. Previously authorized contribution ($3 million) and loans ($25 million) will complete work in 1964.

10,000
7,000

-10,000

10,000

Temporary advances are made to avoid sale of investments, with later
repayments. No advance is contemplated in 1965.

-656
-480

Advances are made to meet interest payments on bonds which cannot
be met from receipts.

2,800

416

656
-176

Total, District of Columbia.. NOA

69,657

60,324

Exp.

65,565

66,030

416

-656

67,620
4,800
83,614
A 4,800

A 250,000

500,000
250,000

Legislation will be proposed to launch a coordinated Federal, State,
and local attack on poverty by providing funds to supplement existing and initiate new activities, under comprehensive local community programs.

Allowance for civilian pay compara- NOA
bility.
Exp.

A 544,000
A 544,000

544,000
544,000

Proposed legislation would provide for civilian pay scales more nearly
comparable with those in private employment.

22,384

NOA
Exp.

500,000

12,096

SPECIAL ALLOWANCES
Allowance for attack on poverty

Allowance for contingencies.

Total allowances.

NOA
Exp.

A
400,000
A 250,000

NOA
Exp.

400,000
A 250,000

A
500,000
A 300,000

100,000

50,000

The allowance for contingencies is to cover unforeseen needs and smaller
items of proposed legislation. Specific supplemental estimates will
be transmitted as the need arises.

A
1,544.000 1,144,000
844,000
A 1,094,000

GRAND TOTALS—ADMINISTRATIVE BUDGET
102,283,356

Total new obligational authority _

Expenditures:
Subtotal

93,155,196

I nterfund transactions
Total expenditures

98,316,970
A 3,296,472
B
866,080
c
74,086

100,918,572 11,234,977
A 2,870,013

97,301,169 97,261,645
A 909,051 A 1,198,086
B
B
849,692
19,603
c
c
29,472
20,450

-589,600

>t1

-513,397

-684,565

-599,519

85,046

92,641,799

98,404,819

97,900,265

-504,554

T R U S T FUNDS
LEGISLATIVE BRANCH
Library of Congress: Gift and trust
fund income accounts
704

NOA
Exp.

1 ,630
1,723

1,627
1,707

1,667
1,789

40
82

Income of the gift fund and other gifts and receipts are devoted to advancing the work of the Library.

NOA
Exp.

658
416

680
440

690
440

Pays annuities to dependents of deceased judges, refunds to former
judges and claims of survivors in certain cases.

THE JUDICIARY
Judicial survivors annuity fund __ 654
A
B
c

Proposed for separate transmittal.
Proposed for separate transmittal, Uniformed Services Pay Act of 1963.
1964 appropriation pending in Congress.

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
CO
Account and functional code

1963

1965

1964

Increase or
decreas

Explanation of NOA requests

TRUST FUNDS-Continued
FUNDS APPROPRIATED TO THE
PRESIDENT
Agency for International Develop- NOA
ment trust funds
152 Exp.

3,624
1.015

3,000
3,120

3,000
3,110

-10

Peace Corps gifts and donations. 152 NOA
Exp.

127
70

153
206

215
210

62
4

Total, funds appropriated to NOA
the President.
Exp.

3,751
1,085

3,153
3,326

3,215
3,320

62
-6

These funds are advances by foreign governments to pay for local costs
of development grant and other mutually agreed upon programs.
The activity level is expected to remain about the same as in 1964.
Gifts and advances from foreign governments are used in the program.

W
Q

DEPARTMENT OF AGRICULTURE

Miscellaneous contributed funds. 351 Exp.

-45

(Receipts, mostly from States and local organizations, are used in work
under cooperative agreements with ASCS.)

354 NOA
Exp.

479
533

636
591

700
660

64
69

Receipts, mostly from States and local organizations, are used in work
under cooperative agreements with SCS.

355 NOA
Exp.

24,919
24,226

26,967
26,831

27,207
27,280

240
449

Fees are used for inspection and grading services of AMS and ARS.
Other receipts are used under cooperative agreements.

Farmers Home Administration (trust Exp.
revolving fund)
352

-518

1,056

577

-479

(Funds, of 39 States are administered in insured loan programs within
those States.)

Forest Service: Cooperative work__ NOA
402 Exp.

25,635
21,016

27,175
23,200

26,910
23,000

-265
-200

Advances from others are used in cooperative work, such as reforestation,
in forests and on land adjacent to forests.

Total, Department of Agri- NOA
culture.
Exp.

51,035
45.258

54,778
51,723

54,817
51,517

39
-206

DEPARTMENT OF COMMERCE
Bureau of Public Roads highway
trust fund:
503
Contract authorization
NOA
Current appropriation
NOA
Receipts to liquidate contract authorization and finance current appropriation:
(Excise taxes)
(Interest on investments)
Exp.

3,580,019
2,000

3,705,000
500

3,805,000

(3,278,698) (3,478,000) (3,553,000)
(14.268)
(6,000)
(6,000)
3.016.701 3,551,000 3,650,000

100,000
-500

Contract authorization granted by Congress is explained in non-add
entry under Administrative Budget items for Commerce above.
Receipts of the fund liquidate portions of the contract authorization.
Proposed legislation will shift aviation and motorboat gas tax
revenues to General Fund. Expenditures are mainly in the form
(75,000)
of grants to States, but also include outlays for administration and
research ($48.8 million in 1965).
99,000

Bureau of Public Roads international
trust funds:
152
Contract authorization
NOA
Current appropriation
NOA
Receipts to liquidate contract authorization and finance current Exp.
appropriation.

5,639
282
(4.714)
4,802

Miscellaneous trust funds, Bureau of
Public Roads:
503
Contract authorization
NOA
Current appropriation
NOA
Receipts to liquidate contract authorization and finance current Exp.
appropriation.

1,630
331
(1.567)
2,021

(1.360)
2,776

1,200

1,200
(-1.360)
-1,576

Other miscellaneous trust funds.506 NOA
Exp.
502 NOA
Exp.

3,534
3,713
17,789
15.322

4,240
4,196
21,714
15,512

3,871
3,906
1,349
12,564

-369
-290
-20,365
-2,948

Total, Department of Com- NOA
merce.
Exp.

3,611,224
3.042.560

3,741,015
3,581,018

3,817,008
3,673,064

75,993
92,046

9,561
(6,040)
7,534

4,958
630
(7,078)
5.394

1,200

-4,603 Advances from other countries are used for cooperative work and
630
technical assistance.
(1.038)
-2J40

Advances from other Federal agencies, States, local governments, and
nongovernmental interests are used for special services requested by
those who pay.

Gifts, donations, advances from individuals and firms, proceeds from
sale of documents, and bond sale receipts held in escrow are used to
finance projects and activities to which the receipts are dedicated.

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued

to
Account and functional code

1963

1964

1965

Increase or
decrease

Explanation of NOA requests

TRUST FUNDS—Continued
3

DEPARTMENT OF D E F E N S E MILITARY

Miscellaneous trust funds

051 NOA
Exp.

Military assistance advances
051
Contract authorization
NOA
Receipts to liquidate contract
authorization.
Exp.

M
5,549
5,116

5,091

5,131

5,090
5,081

Receipts include gifts, donations and bequests used for specified purposes. Funds also include ships' stores profits used for benefit of
naval personnel, and the USS Arizona memorial fund.

886,187 1,682,300 1,324,800 -357,500 Contract authorizations based on agreements with foreign governments
for the sale of military materiel are lower in 1965 because of con(838,306) (990,500) (1,290,000) (299,500)
365,000
860,000 1,225,000
clusion in 1964 of agreements with certain countries covering 2 years'
673,736
sales.
1,329,890 -357,501
1,230,081
364,950

891,736
678,852

1,687,391
865,131

Corps of Engineers advances and NOA
contributed funds
401 Exp.

27,566
22,171

20,956
34,000

18,844
19,975

U.S. Soldiers Home, receipts appropriated:
Current appropriation
805 NOA
Permanent appropriation
NOA
Exp.

6,272
3
6,990

6,742
3
7,505

6,888
3
6,853

Total, Department of De- NOA
fense—Military.
Exp.

-1
-50

DEPARTMENT OF DEFENSE—CIVIL

-2,112
-14,025

Advances and contributions from local interests are used in construction
and maintenance work. Unused balances are returned.

146 Receipts include fines, forfeitures and pay stoppages of Army and Air
-652

Force enlisted personnel. Current appropriations are for maintenance and capital outlay. Receipts unappropriated are (in thousands): 1963, $3,880; 1964, $3,180; 1965, $3,034. Refunds are
permanently authorized.

V.S. Soldiers Home, trust revolving Exp.
fund
805

Total, Department of De- NOA
fense—Civil.
Exp.

33,841
29,171

(Fund finances certain supply inventories of the Home.)
27,701
41,505

25,735
26,828

-1,966
-14,677

DEPARTMENT OF HEALTH,
EDUCATION, AND WELFARE

Federal old-age and survivors insur- NOA (13,842,660) (15,873,553) (16,271,163)
ance trust fund
654
Receipts appropriated:
12,338,191 14,242,000 14,531,000
(Employment taxes)
989,571 1,100,000 1,128,000
(Deposits by States)
514,822
556,085
531,476
(Interest on investments)
A
56,000
(Payments for military service
credits.)
77
76
(Other)
76
Expenditures:
Exp. (14,529,710) (15,358,634) (16,090,671)
(Benefit payments)
13,844,584 14,629,000 15,376,000
306,634
262,603
296,171
(Administrative expenses and
construction.)
423,000
418,500
(Payment to Railroad Retire422,523
ment Board.)

(397,610) The Social Security program provides insurance against the loss of income due to death, retirement, or disability. Receipts are primarily
from taxes on employers, employees, and self-employed. Receipts
not immediately needed are invested at interest in U.S. securities
289,000
until payments exceed receipts. In addition to receipts shown in
28,000
1963, $28,000 thousand received in taxes were unappropriated at
24,609
year end, but required no congressional action.
56,000
The number receiving monthly benefits at the end of each fiscal year
are as follows (in thousands):
1
1963
1964
1965
(732,037)
actual
estimate
estimate
747,000
Retired individuals!
12,600
13,372
13,991
-10,463
Disabled dependents
151
172
* 192
2
Survivors
4,475
4,744
4,966
-4,500
1
2

Disability insurance trust fund_ 654 NOA
Receipts appropriated:
(Employment taxes)
(Deposits by States)
(Interest on investments)
(Payment for military service
credits.)
Expenditures
Exp.
(Benefit payments)
(Administrative expenses)
(Payment to Railroad Retirement Account.)
A

Proposed for separate transmittal.

(1,146,256) (1,198,387) (1,227,622)
994,763
81,858
69,635

1,050,000
81,000
67,387

1,076,000
83,000
64,622
A
4,000

(1,259,214) (1,345,179) (1,427,794)
,255,000 1,324,000
1,170,678
85,294
70,179
68,927
18,500
20,000
19,609

o
o

Includes wives under retirement age who have children in
their care.
Includes children of retired workers.

(29,235) The disability insurance provisions of the Social Security Act are administered largely under this separate fund. Receipts are mainly
from taxes on employment. Funds not immediately needed are in26,000
vested in U.S. securities until required.
2,000
-2,765
4,000
(82,615) The number receiving monthly benefits at the end of each fiscal year is
69,000
as follows (in thousands):
1963
1964
1965
15,115
actual
-1,500
1,404
1,564
1,729
Disabled, and their dependents.

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963

1964

1965

Account and functional code

Increase or
decrease
(-)

Explanation of NOA requests

TRUST FUNDS^-Continued
DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE—Continued
Miscellaneous trust funds

651 NOA
Exp.

541

556

872
748

228
447

-644
-301

Gifts and contributions are expended for specified purposes, or are used
to further the work of the Public Health Service.

d
o

655 Exp.
Total, Department of Health, NOA
Education, and Welfare.
Exp.

14,989,458 17,072,812 17,439,013 I 396,966
A
60,000 }
15,789,473 16,704,561 17,518,912
814,351

DEPARTMENT OF THE INTERIOR
Indian tribal funds
Miscellaneous trust funds

. _409 NOA
Exp.

69,711
66,871

50,911
69,250

44,293
54,183

-6,618
-15,067

Certain funds of Indian tribes are maintained in trust and administered
by the Secretary for their benefit.

401 NOA
Exp.

2,106
2,179

1,765
1,798

1,450
1,576

-315
-222

Non-Federal advances are deposited for shared land management
activities and for construction of power and reclamation facilities.

403 NOA
Exp.

1,617
,245

1,374
1,300

1,386
1.300

States, counties, municipalities and private sources contribute funds
for minerals and mining research.

404 NOA
Exp.

,360
,310

1,429
1,470

1,474
1,470

Contributions and receipts are used for fishery products inspection, sea
lamprey control and other work of the Fish and Wildlife Service.

405 NOA
Exp.

1,211
,986

1,011
2,143

511

855

-500
-1,288

Donations are mainly used for specified purposes of the National Park
Service.

409 NOA
Exp.

4,643
4,831

4,587
4,686

4,784
4,801

197
115

Total, Department of the NOA
Interior.
Exp.

80,648
78,419

61,077
80,647

53,898
64,185

-7,179
-16,462

Alien property trust revolving funds Exp.
151

31,688

51,867

22,290

-29,577

Federal prison system trust revolv- Exp.
ing fund
908

Total, Department of Justice. Exp.

31,706

Certain revenues from Indian reservations, agencies, and schools are used
for support of schools and agency functions.

DEPARTMENT OF JUSTICE
(Seized property of enemy nations of World War II or their nationals
is being liquidated and used for payment of claims and settlements.)
(Profits from sales of sundries in prison commissaries are used for the
benefit of prison inmates.)
51,867

22,290

-29,577

DEPARTMENT OF LABOR
Unemployment Trust Fund
654 NOA
Receipts appropriated:
(Deposits by States)
654
(Federal unemployment taxes):
652
654
(Railroad unemployment insurance taxes)
654
(Railroad unemployment insurance—other)
654
(Advance from revolving fund)
652
(Interest on investments) . _652
(Advances for temporary unemployment compensation)
654
A

(4,260,542) (4,191,829) (3,932,809) (-259,020) The fund combinesfinancialactivities of the Federal-State and railroad
unemployment systems. Payroll taxes of employers are the principal
76,090
source of receipts. States and the Railroad Retirement Board draw
3,008,934 2,901,090 2,825,000
upon the funds to pay weekly benefits to unemployed eligibles. Re537,000 -359,482
cently enacted legislation will increase employer contributions for
945,242
896,482
170,000
170,000
railroad unemployment to fully fund requirements, and other pro153,800
147,000
6,800
posed legislation will improve benefits under the Federal-State
149,798
system. In addition to receipts shown, $126 thousand were un18,200 -12,800
31,000
44,982
appropriated at year end, but required no congressional action. Receipts in 1963 and 1964 included repayments of advances to States
-81,912
for temporary extended unemployment benefits. Decrease in 1965
receipts reflects the completion of repayments in 1964.
228,809
216,257
12,552
191,107
2,392

Proposed for separate transmittal.

CO
I—*•

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Co
1963
enacted

Account and functional code

1964

Increase or
decreas

1965

Explanation of NOA requests

TRUST F U N D S — C o n t i n u e d
DEPARTMENT OF LABOR—Continued
Unemployment Trust Fund—Continued
Expend itures:
Exp.
(Withdrawals by States) _ _ .654
(Railroad unemployment benefits)
654
(Federal extended benefits) _ 654
(Administrative expenses):
652
654
(Temporary extended unemployment compensation benefits)
654
(Repayment of advances for
temporary extended benefits)
654
(Repayment of adyances for
temporary unemployment
compensation)
654
(Other)
654

(3,815,459) (3,555,408) (3,442,561)
2,812,637 2,550,000 2,450,000
166,744
152,210
150,000

347,972
8,840

422,400
9,300

(-112,847)
-100,000
-2,210

A 170,000

170,000

452,000
8,600

29,600
-700

(The average rate of insured unemployment during 1963 was 4.4 percent;
the estimate for 1964 is 3.8 percent, and for 1965, 3.7 percent.)
d
a

-14,873

466,327

-302,500

302,500
93,381

190,000

96,619

27,812

25,617

21,961

-3,656

160

121

39
98

-23

3,932,848
3,272,6691
A
170,000]

-259,020
-112,866

Bureau of Employees' Compensation NOA
trust funds
906 Exp.
Miscellaneous trust funds

652 Exp.

Total, Department of Labor.

NOA
Exp.

4,260,581
3,815,624

4,191,868
3,555,535

Receipts are from employers on the deaths of employees without eligible
survivors, and from fines and penalties. Payments include certain
permanent disability cases and rehabilitation maintenance benefits.
(Includes advances from others for labor statistics.)

DEPARTMENT OF STATE
Foreign Service retirement and disability fund____
654
Receipts appropriated:
(Employing agency contribution.)
(Deduction from salaries)
(Interest on investments)
Miscellaneous trust funds

NOA

(8,232)

(8,550)

(8,903)

(353) A retirement and disability system for Foreign Service officers and most

NOA

3,136

3,370

3,519

149

NOA
NOA
Exp.

3,635
1,461
7.085

3,630
1,550
7,580

3,784
1,600
8,413

154
50
833

151 NOA

Exp.

7
8

44
40

2
11

-42
-29

153 NOA

Exp.

10
8

10
9

152 NOA

100
184

198
250

189
300

8,342
7.278

8,802
7,878

9,104
8,733

Exp.
Total, Department of State. _ NOA

Exp.

Foreign Service staff officers and employees is maintained. Employing agencies match employee payments of 6%% of basic salaries.
Approximately 1,261 annuitants will be receiving benefits at the end
of 1965. Fund balances are invested in interest-bearing U.S. securities.

Ford Foundation contribution increases 1964 receipts above normal
level.
These funds, mainly from gifts, are for educational exchange.

- 9 Advances from foreign governments for training and other services will
continue in 1965 at about the 1964 level.
50
302
855

TREASURY DEPARTMENT
National defense conditional gift NOA
fund
059 Exp.

5
-5,700 Decrease represents change in receipts for Polish claims fund from
$7,600 thousand in 1964 to $1,900 thousand in 1965.
152

151 NOA
Exp.

61
6,445

7,600
1,053

1,900
1,205

Coast Guard general gift fund, __502 NOA
Exp.

6
3

30
35

6
6

-24
-29

Decrease results from nonrecurring expenditure for a swimming pool
given to the Coast Guard Yard, Curtis Bay, Md.

16,244
16.224 .

16,836
17,752

17,533
17,603

697
-149

Increase is principally estimated work volume and increased salary costs
for Customs activities in Puerto Rico and the Virgin1 Islands.

16,315
22,677

24,466
18,840

19,439
18,814

-5,027
-26

Foreign claims fund

Miscellaneous trust fund___,

904 NOA
Exp.

Total, Treasury Department,
A

NOA
Exp.

Proposed for separate transmittal.

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
Account and functional code

1963

1964

Increase or
decreas
)

1965

Explanation of N0A requests

TRUST FUNDS—Continued

d
o

ATOMIC ENERGY COMMISSION

Advances for non-Federal projects. _ NOA
058 Exp.

274
125

2,074
2,223

1,328
1,328

-746
-895

Advances from the Washington Public Power Supply System are for
work related to construction of electric facilities at Richland, Wash.

I—I

FEDERAL AVIATION AGENCY

4
19

National Archives trust revolving Exp.
fund
905

-69

-60

Miscellaneous trust funds
905 NOA
Liquidation of contract authorization
___ _
Exp.

259
(1.742)
2,168

(254)
431

Total, General Services Ad- NOA
ministration.
Exp.

259
2,173

30
362

30
17

Miscellaneous trust funds. __ 501 NOA
Exp.

-36

(State, local, and private advances for air navigation facilities, in prior
years, are used as intended.)

(Microfilm and reproduction service and admission fees to 3 Presidential
libraries are used for operations.)

GENERAL SERVICES ADMINISTRATION

(-254)

-345

Receipts from the FDIC liquidate authority for GSA to construct a $7
million building in Washington. The substantially completed building was occupied in May 1963. Grants from foundations are used
for historical research.

HOUSING AND HOME FINANCE
AGENCY
Federal National Mortgage Association, secondary market operations, trust revolving fund
(authorization to expend corporate debt receipts)
551

NOA
Exp.

207,840
-730,222

100,000
29,872

147,000
138,000

47,000
108,128

Mortgage purchases of $490 million will include $40 million acquired in
exchange for U.S. securities; receipts will include sales of $150 million
(par) of mortgages. Private equity of $128 million will exceed Government equity of $106.8 million at year end, primarily because of
trust fund purchase of Treasury preferred stock in 1964.

2,000
500

1,500

-2,000
1,000

No new receipts are expected,
equipment purchases.

NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
I nternational cooperation

251

NOA
Exp.

251

NOA
Exp.

Total, National Aeronautics
and Space Administration.

NOA
Exp.

2,001
500

1
1,500

Gifts and donations

NOA in 1964 is advance from Italy for

No increase is expected.

-2,000
1,000

o
a

VETERANS ADMINISTRATION
NOA

(709,548)

(717,169)

NOA

493,659

501,236

498,754

-2,482

NOA

5,753

7,089

5,838

-1,251

NOA
Exp.

210,136
826,226

208,844
632,701

805

NOA
Exp.

1,889
1,661

1,895
1,703

Total, Veterans Administration.

NOA
Exp.

711,438
827,887

719,064
634,404

Life insurance funds
805
Receipts appropriated:
(Premiums and other operating
receipts.)
(Payments from general and
special funds.)
(Interest on investments)

Miscellaneous trust funds

(711,983) (-5,186)

207,391
-1,453
486,819 -145,882
1,905
1,715

10
12

The National Service (World War II) and U.S. Government (World
War I) Life Insurance funds will cover 5,072,000 policies, $32.5
billion of insurance in force at end of 1965. Premium receipts and
interest earned thereon are available for the payment of liabilities.
The decrease in expenditures results from the acceleration of dividends into 1963 and 1964. Fund balances are in U.S. securities;
assets exceeded actuarial liabilities by $79 million at June 30, 1963.

>
o

Gifts and other receipts are used for welfare of veterans at homes and
hospitals.

713,888 -5,176
488,534 -145,870
CO
CO

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1964

1963

1965

stimate

Account and functional code

Increase or
decreas

Explanation of NOA requests

TRUST FUNDS—Continued
OTHER INDEPENDENT AGENCIES
American Battle Monuments Com- NOA
mission contributed fund
805 Exp.
Civil Service Commission: Civil
service retirement and disability
fund
654
Receipts appropriated:
(Employing agency contributions.)
(Deductions from salaries)
(Voluntary contributions, etc.)
(Interest on investments)

NOA

7
5

4
6

3
3

(2,247,055) (2,382,000) (2,391,000)

-1
-3

(9,000) Most civilian workers are covered by this fund. Employees and employing agencies each pay 6}i% of basic salaries. About 725 thousand
persons are expected to be on annuity rolls by June 1965. Fund
balances are invested in U.S. securities. Receipts under Contributions include $30 million in 1963 and $62 million in 1964 from general
13,000
funds under Public Law 87-793. Pending legislation would eliminate
the need for an appropriation of $65 million in 1965.
13,000
-62,000
45,000
153,638

920,853

945,000

958,000

NOA
NOA
NOA
Exp.

920,752
43,191
362,259
1,175,887

945,000
75,000
417,000
1,336,582

958,000
13,000
462,000
1,490,220

Employees health benefits fund Exp.
(trust revolving fund).
Employees life insurance fund Exp.
(trust revolving fund).
Retired employees health benefits Exp.
fund (trust revolving fund).

-12,326

-14,665

-2,728

11,937

-32,239

-50,265

-52,088

-1,823

-187

-353

Federal Communications Commis- Exp.
sion trust revolving fund
508

Foreign Claims Settlement Commis- NOA
sion war claims fund
151 Exp.

24,250
128

NOA

-143

166

Contributions for flowers and for repair of non-Federal war memorials
are used as intended.

tr1

(Employees health benefits fund will have 2,100,000 participants; employees life insurance fund 2,525,000, and retired employees health
benefits fund, 231,600.)
CO

(Fund is used as clearinghouse for settlements with foreign governments on radiotelephone and radiotelegraph messages.)
47,500
22,000

118,750
66,000

71,250
44,000

Alien property fund receipts are appropriated for claims under the
General War Damage Claims Act.

General Accounting Office trust fund
904
Historical and Memorial Commissions:
Civil War Centennial Commission, donations
910

NOA
Exp.

4
5

6
8

Exp.
NOA
Exp.

National Capital Housing Authority
trust revolving fund
555

Exp.

-2,437

1,459

National Capital Planning Commission contributed fund
555

NOA
Exp.

75
202

602
804

National Science Foundation donations
703

NOA
Exp.

Railroad Retirement Board: Railroad retirement account
654
Receipts appropriated:
(Employment taxes)
(Interest on investments)
(Payment from OASI trust
fund.)
(Payment from Federal disability insurance trust fund.)
(Payment for military service
credits.)
(Other)
Expenditures:
(Benefit payments)
(Administrative expenses)
(Advances for unemployment
insurance.)

NOA

Estates are held in trust for legal claimants.

-2

1
-1
-1

Battle of Lake Erie Sesquicentennial Celebration Commission, donations
910

1
856

2
2
2
2
(1,115,341) (1,218,324) (1,279,134)

(Activity of $18.6 million involves 11,000 housing units.)

-602
-804

One-half the cost of land for the George Washington Memorial Parkway
is contributed by Maryland and Virginia.

2
2

Donations received are used in furtherance of general purposes of the
Foundation.

(60,810)

559,049
105,214
422,523

633,724
131,900
423,000

682,000
133,700
418,500

48,276
1,800
-4,500

NOA

19,609

20,000

18,500

-1,500

13,834

NOA
Exp.
Exp.
Exp.
Exp.

Donations are used under the terms received.

-603

NOA
NOA
NOA

NOA

(Donations are used under the terms received.)

12,600
2,900
9,700
8,946
(1.111.533) (1,128,950) (1,143,500) (14,550)
25,000
1,064,001 1,100,000 1,125,000
10,950
10,500
-450
9,833
18,000
8,000 -10,000
37,699

The Railroad Retirement system serves as a combined social insurance
and staff retirement system for workers in the railroad industry.
Recent legislation, increasing contributions by railroad employees and
employers, results in an increase in receipts. Funds are recommended
to fulfill the Government's obligation for time spent in military
service. Trust fund balances are invested in interest-bearing U.S.
securities. The number receiving monthly benefits at the end of each
fiscal year is as follows (in thousands):

o
o

>
o
o
i

Retired individuals. _
Disabled, and their dependents
Survivors

1963 1964
1965
actual estimate estimate
489
504
517
101
101
102
277
286
294
CO

3
ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars)—Continued
1963

Account and functional code

1964

1965

Increase or

Explanation of NOA requests

TRUST FUNDS—Continued

d
o

OTHER INDEPENDENT AGENCIESContinued
Smithsonian Institution trust fund.. NOA
704 Exp.

10
10

19
19

15
16

Tax Court of the United States trust NOA
fund
904 Exp.

26
4

26
12

United States Information Agency NOA
trust funds
153 Exp.

26
6

46
58

50
54

4
-4

3,386,796
2,240,648

3,648,530
2,425,137

3,788,986
2,645,667

140,456
220,530

Total, other independent
agencies.

NOA
Exp.

-4
-3

Donations, subscriptions, and fees are used for part of cost of the Canal
Zone Biological Area.
Judges pay 3% (currently $6 thousand) and the Government pays the
remainder ($20 thousand) to finance survivors annuity system.
Business concerns contribute toward exhibits. Donations are received
to acquire and ship books abroad. Sale of films is also financed here.

2
GO

DISTRICT OF COLUMBIA
CO

District of Columbia receipts appropriated:
Current appropriations
555 NOA
Permanent appropriations
55 5 NOA
Exp.

344,184
1,646

346,797
1,608

333,546

395,613

145,667

-115,855

416,951 1 70,144
1,598 }
417,055
21,443

Funds of the municipal government are accounted for through U.S.
Treasury as trust funds. Congressional appropriations of municipal
funds are required currently for most municipal activities.

DEPOSIT FUNDS
Federal agencies

Exp.

-16,892

98,963

(Net change in suspense account balance is reported here.)

GOVERNMENT-SPONSORED
ENTERPRISES
Farm Credit Administration:
Banks for Cooperatives

352 Exp.

29,289

40,000

Federal Intermediate Credit Exp.
Banks
352

276,889

226,645

233,000

Federal Land Banks

176,418

180,000

140,000 -40,000

352 Exp.

Federal Home Loan Bank Board:
Home loan banks
551 Exp.
Federal Deposit Insurance Corpora- Exp.
tion
506
Total, Government-sponsored Exp.
enterprises.

(Bank operations are financed by $80.9 million of Government capital
and $80.1 million of private capital as of June 1963.)

6,355

363,215 1,200,000 -100,000 -1,300,000
-160,546 -180,000 -202,000
685,266 1,466,645

-22,000

(Bank operations are financed by $115.0 million of Government capital
and $49.9 million of private capital as of June 1963.)
(Bank operations are wholly privately owned enterprise.)
(Bank operations are wholly privately owned enterprise.)
(Premium receipts and interest on investments in U.S. securities exceed
current claims and expenses; corporation has no capital stock.)

111,000 -1,355,645

o
o
GRAND TOTALS—TRUST FUNDS

Total new obligational authority

28,601,661 31,695,474 31,757,106
A
60,000

121,632

27.050,078 29,803,115 29,678,851
A
170,000
-504,847 -487,960 -476,949

-45,736

26,545,231 29,315,155 29,371,902

-56,747

Expenditures:
Subtotal
Interfund transactions
Total expenditures
A

11,011

Proposed for separate transmittal.

ANALYSIS OF NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES BY AGENCY (in thousands of dollars) — C o n t i n u e d
1963

Account and functional code

1964

1965

Increase or

Explanat ion of NAO requests

(-)

MEMORANDUM—ANNEXED BUDGETS
Department of Agriculture:
Milk Marketing Administration:
Not included above
Treasury Department:
Comptroller of the Currency:
Included under "Deposit funds"
above.*
Exchange Stabilization Fund:
Included under "Deposit funds"
above.
Operating expenditures
Other Independent Agencies:
Board of Governors of Federal Reserve System:
Not included above*

w
Exp.

-41

-6

Exp.

-1.267

-506

Exp.

-3.706

Exp.

(3,068)

Exp.

Farm Credit Administration:
Banks for Cooperatives:
Included under Government- Exp.
sponsored enterprises above.
Included under "Deposit Exp.
funds" above.
Not included above
Exp.
Exp.

Total.

(2.990)

-112

-500

(2,997)

152

(Operations are financed by assessments on regulated milk handlers.)

(Operations are financed primarily by assessments from national banks.)

(The fund is financed by $200 million of Government capital and by
earnings. Operating expenditures for 1964 and 1965 have been
estimated by the Bureau of the Budget.)
(7)

264

s
w
a

(Operations are financed by levies upon the Federal Reserve Banks, in
proportion to their capital and surplus.)
to

29,289

40.000

304

150

-27.190

16.725

-16,150

-32,875

2.403

56,875

23,850

-33,025

40,000
-150

(Loan program is estimated to continue at slightly over $1 billion a
year. Repayments of loans and other income will be supplemented
by borrowing from the public of $56.7 million in 1964 and $23.8
million in 1965. Government capital is being retired by nearly $12
million in each of these 2 years. See further explanation under
Government-sponsored enterprises, above.)

Federal intermediate credit
banks:
Included under Government- Exp.
sponsored enterprises above.
Included under "Deposit Exp.
funds" above.
Not included above
Exp,
Total
Federal Deposit Insurance Corporation:
Included under Government- Exp.
sponsored enterprises above.
Included under "Deposit funds" Exp.
above.

Total
Total:
Included under Government- Exp.
sponsored enterprises above.
Included under "Deposit funds" Exp.
above.
Not included above
Exp.
Total, annexed budgets
:

Exp.

276,889

226,645

233,000

6,355

-1,218

-1,382

-1,950

-568

-7,950

10,550

267,720

235,813

231,050

-4,763

-160,546

-180,000

-202,000

-22,000

1,615

1,000

-1,000

-2,000

-158,931

-179,000

-203,000

-24,000

145,632

86,645

71,000

-15,645

-4,272

-738

-3.450

-2,712

-35,176

27,157

-15,998

-43,155

106,183

113,064

51,552

-61,512

-10,550

(Loan program is estimated at $5 billion for 1965, which is approximately $300 million more than the estimated loans for 1964. Repayments of loans and other income will be supplemented by borrowing
from the public of $237 million in 1964 and $235 million in 1965.
Government ownership of capital stock is being increased by $9
million in 1964 and $8.4 million in 1965. See further explanation
under Government-sponsored enterprises, above.)

(Approximately $179 billion of deposits in 13,455 banks were insured as
of Dec. 31, 1962, and this amount continues to grow with expansion
of the population and the economy. The cumulative net income,
which is being retained as a reserve, is estimated to be approximately
$2.8 billion by June 1964 and $3.0 billion by June 1965. The principal
revenues are from insurance assessments (approximately $100 million
for 1964 and $117 million for 1965) and interest on investments ($97
million and $103 million for the same 2 years). The estimates for
these years are the Bureau of the Budget's. See further explanation
under Government-sponsored enterprises, above.)

Amounts reported are on a calendar year basis.

GO
Or

PART 6

SPECIAL ANALYSES
327

SPECIAL ANALYSIS

THREE MEASURES OF FEDERAL FINANCIAL TRANSACTIONS

Data on Government financial transactions are used for many
purposes. No single set of accounts can serve all purposes equally
well. As a result, various budget concepts and forms have been developed to meet different needs. The three measures of Federal
receipts and expenditures most commonly used are: (1) the administrative budget, (2) the consolidated cash statement of Federal transactions, and (3) the Federal sector of the national income accounts.
A reconciliation of these three measures is presented in table A-l.
ADMINISTRATIVE BUDGET

The administrative budget covers receipts and expenditures of
funds owned by the Federal Government—the general fund, special
funds, public enterprise funds, and intragovernmental revolving and
management funds. Although budget documents placed before the
Congress have regularly included both federally owned funds and
funds held in trust by the Government, only the former have been
traditionally used to calculate budget totals.
For many years, the administrative budget served as the principal
financial plan for conducting the affairs of Government. It represented a focal point for management and decisionmaking with respect
to Government activities. As long as almost all Federal financial
transactions were carried out with federally owned funds, the administrative budget provided adequate coverage.
In recent years, however, trust fund operations have grown rapidly.
Several major parts of the Government's program are now carried
out through trust funds, particularly those for labor, welfare, and
highway activities. This means that the flow of financial transactions
between the Federal Government and the public is considerably
larger than is indicated by the administrative budget.
CONSOLIDATED CASH STATEMENT

The consolidated cash statement of Federal receipts and payments
is designed to show the total flow of financial transactions (excluding
borrowing) between the Federal Government and the public. It is
more comprehensive and complete than the administrative budget
in that it includes the receipts and expenditures of trust funds as
well as funds wholly owned by the Federal Government. Since the
consolidated cash statement measures the Government's flow of
cash to and from the public, intragovernmental transactions (transactions between budget and trust fund accounts) are excluded and
payments are put on a checks-paid basis. The consolidated cash
statement is useful for determining Government financing and net
borrowing requirements and for analyzing the financial impact of the
Government's overall activities.
328

329

SPECIAL ANALYSES

Table A-1. RELATION OF FEDERAL RECEIPTS AND EXPENDITURES IN
THE ADMINISTRATIVE BUDGET, CONSOLIDATED CASH STATEMENT,
AND NATIONAL INCOME ACCOUNTS, 1963-65
[In billions of dollars]
1963
actual

1964
estimate

1965
estimate

RECEIPTS
Administrative budget receipts
Plus: Trust fund receipts
Less: Intragovernmental transactions
Receipts from exercise of monetary authority
Equals: Federal receipts from the public
Adjustments for agency coverage:
Less: District of Columbia revenues
Adjustments for netting and consolidation:
Plus: Contributions to Federal employees' retirement
funds, etc
Less: Interest, dividends, and other earnings
Adjustments for timing:
Plus: Excess of corporate tax accruals over collections,
personal taxes, social insurance contributions,
etc
Adjustments for capital transactions:
Less: Realization upon loans and investments, sale of
Government property, etc
Equals: Receipts—national-income accounts

86.4
27.7
4.3
*
109.7
.3
1.9
1.1

93.0
30.9

88.4
30.2
4.1
.1
114.4

4.1
.1
119.7

1.9
1.2

1.9
1.3

-.2

1.5
109.3

1.1
113.6

1.0
118.8

92.6

98.4

97.9

26.5
4.3

29.3
4.1

29.4
4.1

1.1
113.8

.9
122.7

122.7

1.9
.6

1.9
.9

EXPENDITURES
Administrative budget expenditures
Plus: Trust fund expenditures (including Governmentsponsored enterprise expenditures, net)
Less: Intragovernmental transactions
Debt issuance in lieu of checks and other adjustments
Equals: Federal payments to the public
Adjustments for agency coverage:
Less: District of Columbia expenditures
Adjustments for netting and consolidation:
Plus: Contributions to Federal employees' retirement
funds, etc
Less: Interest received and proceeds of Government sales_
Adjustments for timing:
Plus: Excess of interest accruals over interest payments..
Excess of deliveries over expenditures and other
items
Less: Commodity Credit Corporation foreign currency
exchanges
Adjustments for capital transactions:
Less: Loans—Federal National Mortgage Association
secondary market mortgage purchases, redemption of International Monetary Fund notes, etc_.
Trust funds (including Government-sponsored enterprise expenditures, net) and deposit fund items
Purchase of land and existing assets and other
items
Equals: Expenditures—national-income accounts
*Less than $50 million.

.9
-.4

1.1

1.9

3.4

2.6

.1
112.6

.1
119.1

.1
121.5

330

THE BUDGET FOR FISCAL YEAR 1965
FEDERAL SECTOR OF THE NATIONAL INCOME ACCOUNTS

The Federal sector of the national income and product accounts is
designed to provide a measure of the direct impact of Federal fiscal
activity on the Nation's current flow of income and output.
Like the consolidated cash statement, the Federal sector account is
more comprehensive than the administrative budget in that it includes most trust fund transactions. However, in contrast both to
the consolidated cash statement and the administrative budget, only
those receipts and expenditures which directly affect the current flow
of income and output are recorded. Therefore, the Federal sector of
the income and product accounts excludes transactions involving
purely financial claims and exchanges of secondhand or existing
assets; such transactions represent neither the production of current
output nor incomes earned in production, even though they have indirect effects on the level or composition of economic activity.
Further, both the administrative budget and consolidated cash
statement count business tax receipts, like other receipts, as they
are collected. In contrast, the Federal sector account records some
business tax receipts, particularly corporate income taxes, as they
accrue, on the grounds that the main economic impact of these taxes
is more closely associated with the accrual of liabilities than with
actual cash collections. Also, the Federal sector records most purchases of goods and services when delivery is made, while the administrative budget and consolidated cash statement count expenditures
at the time of payment.
RELATIONSHIP OF CONSOLIDATED CASH STATEMENT TO THE
ADMINISTRATIVE BUDGET

Certain adjustments are needed to derive the consolidated cash
statement from administrative budget totals, as summarized in
table A-l.
1. Trust funds.—In addition to administrative budget receipts and
expenditures, the consolidated cash statement covers the financial
transactions of Federal trust funds (including Government-sponsored
enterprises). Accordingly, excise taxes that support the highway trust
fund, employment taxes, deposits by States for unemployment insurance, veterans life insurance premiums, and other trust fund receipts
are included along with the corresponding trust fund disbursements.
2. Intragovernmental transactions.—Administrative budget receipts
include amounts paid into the Treasury by trust funds. (These
amounts are also reported as trust fund expenditures.) Similarly,
there are trust fund receipts, such as interest on trust fund holdings
of U.S. securities, which are also reported as administrative budget
expenditures. In consolidating the transactions of budget and trust
funds, these intragovernmental transactions are eliminated from the
combined receipts and expenditures since no exchange of cash with
the public is involved in these operations.

331

SPECIAL ANALYSES

Table A-2. INTRAGOVERNMENTAL TRANSACTIONS EXCLUDED FROM
THE CONSOLIDATED CASH STATEMENT
[In millions of dollars]
Description

Administrative budget receipts which are trust fund expenditures:
Franchise taxes from Government-sponsored enterprises._ ___
Dividends, interest, etc., from Federal National Mortgage
Association
Reimbursements for expenses and services
Repayment of advances from unemployment trust fund and
other
_
.

1963
actual

1964
estimate

1965
estimate

27
62

31
65

21
67

816

403

190

909

504

282

1,477

1,589

1,669
74

88
947
15
-80
6
1

95
1,003
7

134
953
3

7
1

6
1

Total, trust fund receipt items
Deductions from employees' salaries for retirement

2,454
917

2,702
941

2,839
954

Total, intragovernmental transactions _

4,281

4,147

4,075

Total, administrative budget receipt items
Trust fund receipts which are administrative budget expenditures:

Interest on trust funds
Contributions for military service credits
Payments to District of Columbia (including Federal grantsin-aid)
Employing agencies' payments to employees' retirement funds. _
Awards to Indian tribal funds
Advances to unemployment trust fund
Contributions to veterans' life insurance funds._ _
Other

3. Exercise oj monetary authority.—These receipts are now mostly
from seigniorage; that is, they represent the difference between the
cost of the metal and minting of coins, on the one hand, and the actual
value of the coins as money on the other. Seigniorage is included in
administrative budget receipts, but is not a cash receipt from the
public.
4. Debt issuance in lieu oj checks.—In a few cases, Government
expenditures are made by issuing bonds or notes, or increasing the
value of bonds outstanding in lieu of issuing checks. Such transactions are recorded in the administrative budget as expenditures
when the debt is thus increased, even though no cash outflow takes
place until the debt instrument is redeemed.
For example, the administrative budget records interest on savings
bonds when it accrues (and is added to the redemption value currently
payable) rather than when it is actually paid. In computing cash
payments to the public, interest payments are included only when the
bonds are cashed. Therefore, an adjustment is made for the difference
between the amount of interest accrued and the amount paid.

332

THE BUDGET FOR FISCAL YEAR 1 9 6 5

Table A-3. DEBT ISSUANCE IN LIEU OF CHECKS, NET (in millions of dollars)
Description

Accrued interest added to value of debt (savings bonds,
etc.)
Treasury notes issued for:
International Monetary Fund
International Development Association
Inter-American Development Bank
Armed Forces leave bonds issued l
Adjusted-service bonds issued
Excess profits tax refund bonds issued 2
Total, debt issuance in lieu of checks, net

1963
actual

1964

1965
estimate

End 1965
outstanding

11,891

696

772

603

255
14
70
-1
*

14
25
-1
*

-52

1,033

810

550

2,922
91
150
6
1
1
15,062

*Less than one-half million dollars.
Negative figures represent net redemption.
2
Reported as refunds of receipts.
1

A second example involves transactions in special notes used to pay
certain U.S. Government obligations. The Government has paid a
portion of its subscriptions to the International Monetary Fund, the
International Development Association, and the Inter-American Development Bank in non-interest-bearing notes. The notes are considered administrative budget expenditures and become part of the
public debt when they are issued. However, they are not counted as
a payment to the public until they are redeemed for cash, at which
time they cease to be part of the public debt. Conversely, when the
institutions return cash to the Treasury in exchange for notes, payments to the public are reduced by the amount of the cash receipts
and a corresponding increase in the public debt takes place.
5. Changes in outstanding checks.—Administrative budget and trust
fund expenditures are recorded at the time checks are issued. To
reflect more accurately the point in time at which cash is actually in
the hands of the public, an adjustment is made to place expenditures
on a checks-paid basis.
FEDERAL SECTOR ACCOUNTS—DEFINITIONS
OTHER MEASURES

AND RELATIONSHIP TO

The national income accounts, as developed and prepared by the
Department of Commerce's Office of Business Economics, is a dualentry accounting system for making
estimates of the current productive activity of U.S. residents.1 The term "residents" is defined
to include the Federal Government as well as State and local governments, corporations incorporated under U.S. laws (but not their
foreign branches or subsidiaries) ? individuals employed in the United
States proper, and U.S. citizens employed by the Federal Government abroad (civilian as well as military). "Nonresidents" include
governments, individuals (other than employees of the Federal Government), and businesses in foreign countries, as well as in Puerto
Rico, the Virgin Islands, and other U.S. possessions.
1 The accounts are discussed in detail in the Department of Commerce's National Income, 1954
edition, pp. 143-149, and U.S. Income and Output, 1958 edition, pp. 53-57, and 99-101. Each is a
"Supplement to the Survey of Current Business." Current estimates on a quarterly and an annual
basis are provided in the Survey of Current Business and in the Economic Indicators.

SPECIAL ANALYSES

333

The output side of the national income accounts depicts the total
market value of the currently produced output of goods and services,
classified by type of expenditures: consumer expenditures; gross
private domestic investment in new construction, equipment, and
inventories; Federal, State, and local government purchases of goods
and services; and net exports. The total, obtained by summing these
items, is called the gross national product (GNP).
The total value of the gross national product is balanced by an equal
amount of gross income earned in producing the output.2 The income
side of the accounts portrays this total, classified by type of income; for
example, wages and salaries, proprietors' income, corporate profits,
rent, and net interest and certain other costs of production, such as
depreciation and indirect business taxes. The income accounts also
provide additional data showing various transfers of income from one
sector to another, such as business gifts to nonprofit institutions and
social security benefits from the Government.
It should be pointed out that national income data, although based
on accounting statements of economic units, are statistical aggregates
rather than accounting totals in the ordinary sense.
Federal receipts.—Federal receipts on a national income basis are
classified into the following four categories: (1) personal tax and nontax
receipts, (2) corporate profits tax accruals, (3) indirect business tax
and nontax accruals, and (4) receipts from contributions for social
insurance. Personal tax and nontax receipts consist mostly of individual income taxes, estate and gift taxes, fines, penalties, and charges
for Government services. Corporate profits tax accruals represent
the Federal tax liability incurred and accrued by resident corporations
on their corporate earnings during the specified year or period.
Federal corporation income tax collections do not necessarily concide
with—and usually lag—accruals. Indirect business tax and nontax
accruals consist primarily of excise taxes, customs duties, Federal
receipts from rent and royalties, and other charges to business.
Receipts from contributions for social insurance are composed chiefly
of employment taxes, contributions to the retirement funds for
Government employees, and deposits by the States to the unemployment trust fund.
Federal expenditures.—Federal expenditures on a national income
basis are classified in the following categories: (1) Purchases of goods
and services, (2) transfer payments, (3) grants-in-aid to State and
local governments, (4) net interest paid, and (5) subsidies less current
surplus of Government enterprises. The definitions of the categories
have been developed by the Department of Commerce consistent
with the framework of accounts covering the Nation's total economic
activity.
1. Purchase of goods and services.—These purchases represent the
value of the Nation's currently produced output bought directly by
the Federal Government. They are reported in the national income
accounts net of Government sales.
Purchases include the pay of active military and civilian employees
of the Federal Government, employer contributions to retirement,
insurance and other benefits for Federal employees, outlays on new
2

"Gross income" includes capital consumption allowances and certain charges against production.

334

THE BUDGET FOR FISCAL YEAR 1965

equipment and supplies for defense and other programs, new construction, research and development contracts with corporations organized
for profit, expenditures for the purchase of commodities (even if the
commodities are then donated or transferred, domestically or abroad),
and generally, the administrative expenses of Government programs.
2. Transfer payments.—Transfer payments consist of expenditures
by the Federal Government for which no current output or services
have been rendered; in other words, they are payments to certain
recipients for which no contribution to national production is made
during the time period under consideration. There are two important
criteria which must be met by an expenditure classified as a transfer
payment: (a) the recipient must be an individual, an institution not
organized for profitmaking purposes (a "not-for-profit" institution)
or a nonresident (for example, a foreign government), and (b) the
expenditure must also be in monetary form and not in commodities.
Examples of transfer payments are: veterans compensation, pensions, and benefits; retired pay to Federal civilian or military personnel; unemployment benefits; and old-age, survivors, and disability
insurance; cash gifts and contributions to nonresidents; nonrepayable
outlays for scholarships and fellowships; and research and development expenditures for contracts let to private individuals. Although
such transfer payments do not directly enter GNP calculations, they
do enter into the income stream and have an impact on national output; they are reflected in the GNP in another sector of the accounts
when respent by the recipients.
For national income purposes, net interest paid to nonresidents is
considered a transfer payment. All other transactions involving interest expenditures and receipts (that is, to and from residents) are
reported in the net interest paid category.
3. Grants-in-aid to State and local governments.—Grants, for purposes of the national income accounts, are Federal payments to State
and local governments (other than for interest on the public debt),
including State and local educational institutions. Included in grants
are almost all of the grants-in-aid and the shared revenues in Special
Analysis I of the budget, except (a) outlays to nonprofit and privately
owned hospitals, (b) outlays-in-kind such as commodities distributed
to State and local governments, and (c) payments to Puerto Rico, the
Virgin Islands, and other possessions. In addition, the national income accounts record as grants research and development outlays for
contracts to public educational institutions. Like transfer payments
and net interest paid, Federal grants-in-aid are counted in the GNP
when respent by recipients—in this case, as purchases by State and
local governments.
4. Net interest paid.—Net interest paid consists of the interest
outlays to residents minus the interest received from this source.
5. Subsidies less current surplus of Government enterprises.—This
category consists of two elements which are consolidated for analytical
and statistical reasons: (a) subsidy payments to (resident) businesses,
and (b) the "current surplus" (or deficit as the case may be) of Government enterprises.
(a) In principle a Government expenditure becomes a subsidy when
it enables a producer to sell goods and services below the cost-price

SPECIAL ANALYSES

335

relationship determined by market forces or when it is a payment
made to curtail production. By definition, therefore, subsidies are
made only to businesses organized for profitmaking purposes (including farms). Examples of subsidies are Government payments
to farmers for land retirement, certain outlays for the export of surplus
agricultural commodities by business, payments to air carriers, and
the operating differential subsidy of the Maritime Administration.
(b) Government enterprise is the term applied to those functions
of the Government (usually appearing in the budget as public enterprise revolving funds) whose operating costs are to a great extent
covered by the sale of goods and services to the public, as opposed
to being financed by tax receipts. In short, Government enterprises
conduct operations which are of a commercial nature. Because of
this, part of their operations are reported in the business sector of
the national income accounts and part in the Federal sector. The
Federal sector covers the difference between sales and operating
costs, interest expenses, and capital formation.
Relationship to the consolidated cash statement.—There are

a number of important differences between the Federal sector account
and the consolidated cash statement. These are set forth in table A-l.
1. Coverage.—With respect to coverage, the Federal Government
part of the income and product accounts excludes the revenues and
expenditures of the District of Columbia, which are classified by the
Department of Commerce in the State and local government sector.
2. Netting and consolidation.—The Federal sector account records
both interest paid by the Government and Government purchases on
a net basis. Accordingly, interest received by the Government is
excluded from receipts and subtracted from Federal interest payments. Similarly, receipts from sales of Government products are
subtracted from Government purchases. Neither adjustment influences the surplus or deficit, for in effect, both receipts and expenditures
are decreased by the same amount.
Adjustments for consolidation are needed to reflect in the income
and product account a few transactions such as employer and employee contributions to Federal employees' retirement funds. Although these contributions are considered to be part of the total
compensation of Government employees in the national income
accounts, they are excluded from the consolidated cash statement as
an intragovernmental transaction. Again, the deficit or surplus is
unaffected by the adjustment, since total receipts and expenditures
are both increased by the same amount.
3. Timing.—Business taxes are recorded in the national income
accounts as they are accrued by the private sector, rather than when
they are collected by the Government. The principal timing adjustments for expenditures are: (a) The Federal sector account records
Federal purchases in terms of the delivery of goods and services to the
Government, whereas cash payments for these deliveries may precede
or follow; (b) the account also records as purchases guarantees of
nonrecourse loans by the Commodity Credit Corporation at the time
the guarantees are made, rather than when the collateral is surrendered; (c) interest on savings bonds and Treasury bills is treated
as an expenditure in' the Federal sector account when the interest is

336

THE BUDGET FOR FISCAL YEAR 1965

accrued, rather than when it is actually paid out in cash; and (d) certain foreign currency activities of the Commodity Credit Corporation
also require an adjustment—the Corporation facilitates exports of
surplus agricultural commodities by paying dollars to exporters, in
exchange for foreign currencies received for the exports. Expenditures in the Federal sector account are recorded only at the time these
foreign currencies are subsequently used for Government programs.
The consolidated cash statement, on the other hand, includes the
dollar payments to exporters but excludes both the receipt and the
subsequent expenditure of a large part of these foreign currencies.
4. Capital transactions.—Many capital or financial transactions
which are included in the consolidated cash statement are excluded
from the Federal sector account. These items consist primarily of
loans, mortgages, and other financial claims. Also excluded are purchases and sales of existing assets, such as land and secondhand
property.
USES AND LIMITATIONS

Each of the three measures—the administrative budget, consolidated cash statement, and the Federal sector of the income and
product accounts—is useful for specific kinds of analysis, and the
selection of which to use should be determined by the problem at hand.
The administrative budget provides a useful measure of the
Government's operations which are financed by the Government's
own funds.
The Federal sector account is especially suited for an analysis of
fiscal policy. It was specifically designed to complement the data on
private expenditures and incomes contained in the national income
accounts.
The national income accounts, however, exclude a substantial
volume of financial transactions through which the Federal Government significantly affects the capital and credit markets. Moreover,
in financial markets, the flow of cash payments to the Government
may be more significant than the accrual of tax liabilities. As a result, for purposes of analysis of the Federal impact on money and
credit, the consolidated cash statement is generally more useful than
the national income accounts.
For certain types of problems, no overall measure of receipts and
expenditures will serve adequately. Since the various receipt and
expenditure transactions have different economic effects, a given
aggregate will have an economic impact which depends importantly
on the composition of the total.
In addition, many Government transactions besides receipts and
expenditures affect the economy. For example, a rapid expansion in
new appropriations and in Government orders could stimulate a rise
in business activity well before either the delivery of goods, the performance of services, or the payment for them. The management of
public debt is a further factor which has a significant impact in the
money and credit markets of the economy. Consequently, in evaluating the economic impact of Federal Government activities, there
is no substitute for complete and detailed analysis of the Government
program in all its aspects.

SPECIAL A N A L Y S I S B

PUBLIC ENTERPRISES, TRUST FUNDS, AND GROSS EXPENDITURES OF
THE GOVERNMENT

This analysis presents selected information on the public enterprise
funds and the trust funds with special reference to financing. It also
covers certain receipts and reimbursements from outside the Treasury
to general fund appropriations and other accounts which are netted
in the administrative budget expenditures, and it indicates the magnitude of total expenditures if such netting did not occur. Additional
tables in this special analysis relating to borrowing and investments
in U.S. securities are an integral part of the computation of the
changes in public debt in table 11 of part 2 of the budget.
PUBLIC ENTERPRISE FUNDS

The public enterprise funds are federally owned funds which carry
on a cycle of operations, primarily with the public, organized usually
on a business-type basis. Some of them are incorporated enterprises;
others are unincorporated. Their expenditures have been included,
on a net basis, in the administrative budget for many years. The
general fund usually supplies them with capital; the provision of such
capital, its return, and any dividends given to the general fund are
not counted in the budget totals as expenditures or receipts.
Expenditures and receipts.—Expenditures of public enterprise funds
are estimated to be $21.5 billion in 1965, and their receipts will be
$19.9 billion (table B-l), resulting in net expenditures of $1.6 billion
which are included in the administrative budget totals. The Commodity Credit Corporation and the postal fund together account for
somewhat more than half of the transactions. The figures for both
1964 and 1965 take account of the legislative proposal to put the
Rural Electrification Administration loan program on a public enterprise fund basis.
The expenditures in table B - l include certain interfund payments
to the general fund, principally for interest (see note at end of table
14). The receipts shown in table B-l are generally from the public;
but they include some transactions from within the Government—
notably, the sales of Commodity Credit Corporation inventories
and services to appropriations for special activities, accounting
for $2 billion of the Commodity Credit Corporation receipts shown for
1965. The sales of Tennessee Valley Authority power to Government
agencies, payments by all agencies to the Post Office for postal services,
and interest paid to certain funds on their investments are other
examples of such intragovernmental receipts included in table B - l .
337

700-000 O—64

338

THE BUDGET FOR FISCAL YEAR

1965

Table B-1. GROSS EXPENDITURES AND APPLICABLE RECEIPTS OF
PUBLIC ENTERPRISE FUNDS (in millions of dollars)
Gross expenditures
Description

1963
actual

Funds appropriated to the President:
Foreign assistance—Economic
895
Other
34
Department of Agriculture:
Commodity Credit Corporation
10,418
Rural Electrification Administration
(proposed legislation)
Other
624
Department of Commerce
46
Department of Defense:
Military
16
Civil (Panama Canal Company)
112
Department of Health, Education, and
4
Welfare
.
Department of the Interior
148
Department of Labor
176
Post Office Department
4,640
Treasury Department
1
*
General Services Administration
Housing and Home Finance Agency:
339
College housing loans
336
Urban renewal fund
868
Federal National Mortgage Association..
611
Federal Housing Administration
567
Public Housing Administration
69
Other
618
Veterans Administration
Other independent offices:
548
Export-Import Bank of Washington
Federal Savings and Loan Insurance
Corporation
340
Small Business Administration
348
Tennessee Valley Authority
37
Other
Total.
Receipts from the public
Receipts from other accounts.

21,802

1964

Applicable receipts

1965

1963
actual

963
168

1,099
7

22
91

9,574

7,995

17,371

377
676
96

383
862
124

540
13

15
117

4
115

170
259
4,899
1

138
262
5,058

342
402
598
755
594
98
581

1964

1965

12 7,298

i 7,008

12
104

169
577
20
11
112

5
49
262
3,870
4
*

7
52
268
4,353
2
*

178
807
24
3
116
8
60
265
4,583
1
*

340
527
1,014
779
628
131
487

56
162
1,308
476
388
17
748

119
151

708

739

60
363
367
35
22,227

656

132
198
1,602
952
405
48
846

939

1,358

1,595

-1
386
388
39

271
203

295
33

310
230
310
36

348
252
321
38

21,512

17,237

18,460

19,869

1,176

698
446
31

(14,209) (15,737) (16,468)
(3,028) (2,723) (3,401)

*Less
than one-half million dollars.
1
Includes advances from foreign assistance programs of $2,091 million in 1963, $1,879 million in
1964.
and
$2,377 million in 1965.
2
Excludes adjustment of $2 million for "Cropland conversion program."

Treasury financing.—Capital requirements of the public enterprise
funds are usually supplied through new obligational authority (either
appropriations or some other form of NOA) from the general fund.
While most public enterprise funds are operated to be self-sustaining
over a period of years, the largest—the Commodity Credit Corporation—has incurred substantial losses in most years. Appropriations
have been made regularly to make up for the loss in this fund, the
postal deficit, and other losses in a few smaller funds. Contract
authorizations have also been provided for the Commodity Credit
Corporation and for the Urban Renewal Fund of the Housing and
Home Finance Agency.

339

SPECIAL ANALYSES

Table B-2 reflects all such new obligational authority, except for
the authority to borrow directly from the public. The latter counts
as new obligational authority, but is reflected in table B-10 instead of
here.
Writeoffs shown here are primarily the return of capital or transfer
of dividends to the general fund of the Treasury; they include a few
cases of transfers to other accounts or lapses of obligational authority.
Table B-2. NEW OBLIGATIONAL AUTHORITY AND WRITEOFFS OF
PUBLIC ENTERPRISE FUNDS (in millions of dollars)

Description

Funds appropriated to the President: Foreign assistance—Economic
Department of Agriculture:
Commodity Credit Corporation
Rural Electrification Administration
(proposed legislation)
Other
Department of Commerce
Department of Defense—Military
Department of Health, Education, and
Welfare
Department of the Interior
Department of Labor
Post Office Department
Treasury Department
General Services Administration
Housing and Home Finance Agency:
College housing loans
Urban renewal fund
Federal National Mortgage Association _
Public Housing Administration
Other
Veterans Administration
Other independent offices:
Export-Import Bank of Washington
Small Business Administration
Tennessee Valley Authority
Other
Total.

New obligational
authority l

Writeoffs (including
capital transfers) 1

1963
actual

1964
estimate

429

1,062

1,390

180

2,475

1,205

16
121

M95
7
137

81
112
170

119

)
103

840
1

654

551

300

300
1,400

300

195
95
200

212
106
150

231
87

300
35
1

90
47
1

6,832

7,240

4,255

1965

1963
actual

1964

1965
estimate

150

29
•102
7
2
26
4
6

1
M
10
1
1

255
4
22
21

175
*
6
187

185
*
3
150

35
1
49
*

50
*

563

685

532

*Less
than one-half million dollars.
1
Excludes NOA in form of indefinite authorization for Federal Housing Administration to expend
from corporate debt receipts of $162 million in 1963, and $142 million in 1964, and reductions in such
borrowings
of $44 million in 1965.
2
Excludes transfers received upon initiation of new funds: For Rural Electrification Administration, Department of Agriculture, $1,062 million in 1964; for Food and Drug Administration, Department
of Health, Education, and Welfare, $1 million in 1964.
3
Represents balances transferred to "Family housing, Defense."
4
Unobligated balance transferred to "Salaries and expenses, Mexican farm program."

Balances available.—The balances of public enterprise funds are
shown in table B-3. They are there divided between the balances
which are accounted for as assets of the funds (cash in banks, fund
balances with the Treasury, and U.S. securities), and the undrawn
authorizations to obtain capital from the Treasury, to borrow, or
(in two cases) to contract in excess of their cash availability.

340

THE BUDGET FOR FISCAL YEAR 1965

Table B-3. BALANCES OF PUBLIC ENTERPRISE FUNDS (in millions of dollars)

Description

Cash balances in Treasury
and U.S. securities as of
June 30
1963
actual

Funds appropriated to the President:
Foreign assistance—Economic
Other
Department of Agriculture:
Commodity Credit Corporation
Rural Electrification Administration
(proposed legislation)
Other
:
Department of Commerce
Department of Defense—Military
Department of Defense—Civil (Panama
Canal Company)
Department of Health, Education, and
Welfare
Department of the Interior
Department of Labor
Post Office Department
Treasury Department
General Services Administration
Housing and Home Finance Agency:
College housing loans
Urban renewal fund
Federal National Mortgage Association..
Federal Housing Administration
Public Housing Administration
Other
Veterans Administration
Other independent offices:
Export-Import Bank of Washington
Small Business Administration
Tennessee Valley Authority
Loans to Federal Deposit Insurance
Corporation
Loans to Federal home loan banks
Federal Savings and Loan Insurance
Corporation
Other
Total _

Undrawn authorizations
as of June 30

1963
actual

1964

1965

2,728
19

2,812
2

3,118
34

284
106
21

193
159
17

199

177

1965
estimate

1964

199
69

22 12,298 12,504

199
74
12,727

249
229
16

1
300

300

1,008
300

250

743
2 3,656
4,310

823
2 4,951
4,772

24,686
5,183

1,475
1,037
281

1,500
1,002

249

967
99

4,524

5,127

5,933

3,000
1,000

1
60
294
420
*

3
52
302
519

69
420
97
842
64
166
609

66
273
38
928
103
234
677

73
208
30
1,057
111
271
1,036

5
393
24

349
39

215
45

2
57
304
595
*

908

1,500

868
116

1,118
120

1,467
122

750
24

750
23

750
21

7,653

8,036

9,268 24,050

26,536

28,616

*Less
than one-half million dollars.
1
Includes unfunded balance of contract authority of $1,402 million in 1963, $1,087 million in
and $487 million in 1965.
Includes unfunded balance of contract authority of $3,016 million in 1963, $4,311 million in
1964,
and $3,045 million in 1965.
3
Excludes undrawn corporate debt authority of $555 million in 1963, $480 million in 1964, and
$405 million in 1965.
1964,
2

In most cases, a large part of the balances are obligated or reserved—to pay loan commitments, purchase and construction contracts, or other obligations entered into but on which the other party
has not yet required or earned the money. The balances include
inactive "standby" authority for loans to the Federal Deposit Insurance Corporation, the home loan banks, and the Federal Savings
and Loan Insurance Corporation. Also included is an unused balance
for the never-activated Federal Flood Indemnity Administration
(HHFA).

341

SPECIAL ANALYSES
TRUST FUNDS

The trust funds are administered in a fiduciary capacity by the
Government. They are not included in the administrative budget
totals, and transactions between the general fund and the trust funds
are conducted "at arm's length"—that is, payments between them are
reported as expenditures and receipts of the funds involved.
Expenditures and receipts.—Trust fund expenditures are estimated
to be $29.4 billion in 1965, with receipts of $30.9 billion, as shown in
table B-4. The transactions of the Federal old-age and survivors
insurance fund are slightly more than half of the totals.
Table B-4. EXPENDITURES AND RECEIPTS OF TRUST FUNDS
(In millions of dollars)
Expenditures
Description

Federal old-age and survivors insurance
trust fund_
Federal disability insurance trust fund
Unemployment trust fund
Railroad retirement account
Federal employees' funds __
_ __
Highway trust fund _
Veterans life insurance funds
Federal National Mortgage Association
trust funds
Other trust funds
__ _
Deposit funds
Interfund transactions (table 14, note)
Subtotal
Government-sponsored enterprises.
Total

Receipts

1963
actual

1964

1965

1963

1964

1965

14,530
1,259
3,815
1,112
1,138
3,017
826

15,359
1,345
3,555
1,129
1,279
3,551
633

16,091
1,428
3,443
1,144
1,444
3,650
487

13,856
1,145
4,261
1,128
2,255
3,293
710

15,846
1,198
4,191
1,202
2,391
3,484
717

16,271
1,228
3,933
1,279
2,400
3,510

-730
1,252
146
-505

30
1,571
-116
-488

138
1,932
-17
-Ml

1,546

1,623

2,017

-505

-488

-477

25,860

27,849
1,467

29,261

27,689

30,163

30,872

685
26,545

29,315

29,372

27,689

30,163

30,872

712

111

The trust funds include a small group of trust revolving funds (see
table B-5) which, like the public enterprise funds, are stated on a net
expenditure basis in figures used elsewhere in the budget.
Table B-5. TRANSACTIONS OF TRUST REVOLVING FUNDS (in millions of dollars)
Applicable receipts

Gross expenditures
Description

1963
actual

1964
1965
estimate estimate

1963
actual

1964
1965
estimate estimate

Civil Service Commission (Employees' life
insurance and health benefits) _ _ _
Federal National Mortgage Association
All other trust revolving funds.
_ __

501
393
62

520
479
100

581
595
159

546
1,124
33

585
449
45

636
457
135

Total, trust revolving funds

956

1,099

1,335

1,703

1,079

1,228

Receipts from the public
Receipts from other accounts

(1,489)
(214)

(857)
(222)

(998)
(230)

342

THE BUDGET FOR FISCAL YEAR 1965

Treasury financing.—The principal financing provided by the
general fund to the trust funds is interest paid on public debt investments of the trust funds. The Government also contributes, as
employer, to the employee retirement funds.
Balances available.—Trust fund balances with the Treasury and
U.S. securities are shown in table B-6. These balances are reserved to
carry out the purposes of the trust.
Table B-6. TRUST FUND BALANCES (in millions of dollars)
As of June 30
Description

1962
actual

Federal old-age and survivors insurance trust fund___
Federal disability insurance trust fund
Unemployment trust fund
Railroad retirement account
Federal employees' funds
Highway trust fund
Veterans life insurance funds
Federal National Mortgage Association trust fund___
All other trust funds
Deposit funds
Total

1963

1964

19,641
2,508
5,832
3,789
12,524
471
6,843
104
842
1,913

18,967
2,394
6,277
3,805
13,641
747
6,726
237
1,136
1,767

19,454
2,247
6,912
3,878
14,752
680
6,811
25
1,188
1,883

19,634
2,047
7,402
4,014
15,708
540
7,036
22
1,273
1,900

54,467

55,698

57,830

59,577

1965
stimate

Note.— Excludes Government-sponsored enterprises.
The figures shown above differ somewhat from those on an authorization basis shown in table 10.
The reconciliation is as follows:
As of June 30
Balances available on an authorization basis
(table 10)
Unappropriated receipts:
Available as needed on an indefinite basis
Available for appropriation by Congress:
District of Columbia
U.S. Soldiers* Home
Highway trust fund
Unfinanced contract authorization
Undrawn authorizations to borrow
Balances available on a cash basis

1962

1963

1964

1965

64,136

66,341

69,774

71,827

-114
98
106
-8,929
—882

-114
102
148
-9,167
—1,687

-96
105
382
-10,290
—2,071

-89
108
242
-10,453
—2,083

54,467

55,698

57,830

59,577

GOVERNMENT-SPONSORED ENTERPRISES AND ANNEXED BUDGETS

This budget continues the practice adopted a year ago of including
with the trust fund expenditures certain transactions of five Government-sponsored enterprises, stated on a net basis. The transactions
thus reported relate to investments in U.S. securities and debt issuance
for which the Treasury acts as fiscal agent; amounts equal to the net
debt issuance or net disinvestments of such enterprises are used as
an estimate of net expenditures.
The budget appendix includes for the first time this year detailed
budget statements with respect to seven self-supporting activities,
including three of the Government-sponsored enterprises just mentioned, and four other activities. (In the case of one of the latter,
the Exchange stabilization fund, estimates for the years 1964 and
1965 are incomplete.)
Table B-7 summarizes the expenditures and receipts of the annexed
budgets.

343

SPECIAL ANALYSES

Table B-7. EXPENDITURES AND APPLICABLE RECEIPTS OF ACTIVITIES
COVERED BY ANNEXED BUDGETS (in millions of dollars)
Gross expenditures
Description

1963
actual

Milk Marketing Administration
__
Comptroller of the Currency. _ _ _
Exchange Stabilization Fund
Board of Governors of Federal Reserve
System
Banks for Cooperatives
_
Federal Intermediate Credit Banks. __ _
Federal Deposit Insurance Corporation. __
Total

12
14
4

Applicable receipts

1964
1965
estimate estimate

13
16

1963
actual

13
18

12
15
8

1964
1965
estimate estimate

13
17

13
18

7
1,070
4,595
6

8
1,132
4,881
20

8
1,129
5,201
19

7
1,067
4,327
165

8
1,075
4,645
199

8
1,105
4,970
222

5,708

6,070

6,388

5,602

5,957

6,336

1 Not available.

OTHER EXCLUSIONS FROM ADMINISTRATIVE BUDGET RECEIPTS

The law permits certain collections to be credited as reimbursements
to general fund appropriations. Such collections from outside the administrative budget accounts are identified in the detailed schedules
of the budget appendix as reimbursements from "non-Federal sources,"
distinguishing them from reimbursements within the administrative
budget sector. The intragovernmental revolving and management
funds also have some receipts from outside the Government. Table
B-8 reflects the estimated amount of such collections which are
credited to appropriations or to intragovernmental funds.
Table B-8. REIMBURSEMENTS FROM NON-FEDERAL SOURCES TO
APPROPRIATIONS AND INTRAGOVERNMENTAL FUNDS (in millions of dollars)
Description

Funds appropriated to the President
Department of Agriculture
Department of Commerce
Department of Defense:
Military
Civil

Department of Health, Education, and Welfare..
Department of the Interior
Department of Justice
Department of Labor
Department of State
Treasury Department
Atomic Energy Commission
Federal Aviation Agency
National Aeronautics and Space Administration.
Veterans Administration
Other independent agencies
Total.
From trust funds.
From the public.
*Less than one-half million dollars.

1963

1965

1964

*
13
4

*
14
5

1,989
2
32
38
3
*

1,949
2
33

7
12
57
2

2
13
52
2
*

2,162

2,142

2,118

(694)
(1,468)

(880)
(1.262)

(1.244)
(874)

64
3
*

14
4
,887
2
34
78
3
*
1

14
75
3
*
1
*

344

THE BUDGET FOR FISCAL YEAR 1965
GROSS EXPENDITURES OF THE GOVERNMENT

Table B-9 gives gross expenditures, on a checks-issued basis for
all Government-administered funds, except deposit funds; the latter
are excluded since they are for the most part suspense accounts.
Table B-9. GROSS EXPENDITURES OF GOVERNMENT-ADMINISTERED
FUNDS (in millions of dollars)
Function

National defense
International affairs and finance
Space research and technology
Agriculture and agricultural resources.
Natural resources
Commerce and transportation
Housing and community development.
Health, labor, and welfare
Education
Veterans benefits and services
Interest
General government
Undistributed—special allowances

Total.
The total is derived as follows:
Administrative budget expenditures (table 14)
Trust fund expenditures (table 14 and B-4) :
Total of such transactions
Elimination of deposit funds included in total
Intragovernmental transactions (table A-2) :
Total of such transactions
Employees' contributions included in total
Other adjustments included in total
Receipts from the public netted in conventional totals:
Receipts of public enterprise funds (table B-1)
Receipts of trust revolving funds (table B-5)
Reimbursements to administrative budget funds (table B-8) _ _
Substitution of annexed budgets:
Gross expenditures of annexed budgets (table B-7)
Elimination of net expenditures of Government-sponsored
enterprises (included in table B-4)

TotaL

1963
actual

1964
estimate

1965
estimate

54,902
3,564
2,552
18,268
2,716
9,432
3,105

57,209
3,888
4,401

56,000
4,070
4,992

18,064
2,912
10,935
3,333
26,908
1,429
6,601
8,892
2,268
250

16,590
3,035
28,328
1,781
6,364
9,199
2,264
1,094

138,205

147,090

148,785

92,642

98,405

97,900

26,545
-146

29,315
116

29,372
U

-4,281
917
340

-4,147
941

-4,075
954

14,209
1,489
1,468

15,737

16,468
998
874

25,355
1,276
6,715
8,308
2,010

857

11,027
4,040

1,262

5,708
-685
138,205

6,388

6,070
-111

-1,467
147,090

148,785

BORROWING OTHER THAN FROM THE GENERAL FUND

The Tennessee Valley Authority has authority to borrow $750
million from the public. The Federal Housing Administration has
an indefinite authorization to issue short-term debentures in connection with its settlements. The Federal National Mortgage Association trust revolving fund has authority to issue its own debt instruments in an amount equal to 10 times the aggregate of its capital
and retained earnings. The District of Columbia Armory Board
was authorized to issue bonds for the financing of the stadium completed in 1961. A few funds in liquidation are retiring earlier debt is-

345

SPECIAL ANALYSES

suances. Government-sponsored enterprises also have their own
borrowing authority. Some Government enterprise debt is guaranteed by the Treasury; some is not formally guaranteed. Borrowing
and repayments pursuant to these authorities are shown in table B-10.
A small portion of such borrowing is from other funds; the larger
part is from the public and in effect reduces the Treasury borrowing
from the public (see table 11 of part 2).
Table B-10. DEBT ISSUANCES BY GOVERNMENT ENTERPRISES (OTHER
THAN BORROWING FROM THE GENERAL FUND) (in millions of dollars)

Description

Borrowing from the public:
By public enterprise funds:
Federal Housing Administration __
Federal National Mortgage Association _ _
Federal Farm Mortgage Corporation _ _ _ _ _
Home Owners Loan Corporation
_
Tennessee Valley Authority
By trust funds:
D.C. Armory Board
Federal National Mortgage Association
By Government-sponsored enterprises:
Banks for cooperatives
_
__ _
Federal intermediate credit banks _ __ _ _ _
Federal land banks
Federal home loan banks _ __ _
_ __

1963

164
*
*
*

189

-87

522

*
*
75

*
*
295

-597

-183

135

20
1,913

29
243
176
946

40
261
180
1,225

40
235
140

537
2,594
3,043
3,967

961

1,787

538

12,892

-1

-46

163

Total, borrowing from the public. __
Borrowing from other funds:
By public enterprise funds:
Federal Housing Administration _
_ _
By Government-sponsored enterprise funds:
Banks for cooperatives
_ _
Federal intermediate credit banks
Federal land banks
_
_ _
Federal home loan banks _

1
35
-1
29

Total, borrowing from other funds. _ __ __
Total, debt issuances by Government enterprises

End 1965,
estimate
outstanding

1965

1964

61
1,022

2
1
*
4

-34
-25
-106

170

1,681

581

13,063

Note.— Negative figures represent net retirement of debt.
*Less than one-half million dollars.
INVESTMENTS IN U.S. SECURITIES

A few public enterprise funds, a substantial number of trust funds,
and the Government-sponsored enterprises may purchase Treasury
bonds or notes for investments. In addition, the Federal National
Mortgage Association acquires some of the debentures issued by the
Federal Housing Administration, and the Federal Housing Administration acquires some of its own debentures as investments. These
investment transactions in securities issued by the Government or its
agencies are shown in table B - l l .

346

THE BUDGET FOR FISCAL YEAR 1965

The public debt bought by the various funds enters into the computation of the debt as shown in table 11 of part 2.
Table B-11. INVESTMENTS IN U.S. SECURITIES BY GOVERNMENTADMINISTERED FUNDS (in millions of dollars)
Transactions
Description

1963

1964

End 1965.
estimate
outstanding

1965

Investments in Treasury issuances (public debt):

By public enterprise funds:
Federal Housing Administration
Federal Savings and Loan Insurance Corporation.
Tennessee Valley Authority
Veterans' Administration
Maritime Administration
By trust funds:
Federal old-age and survivors insurance trust
fund
Federal disability insurance trust fund
Unemployment trust fund
Railroad retirement account
Federal employees' funds.
Federal National Mortgage Association
Highway trust fund
Veterans life insurance funds
District of Columbia municipal government
funds
All other
By Government-sponsored enterprises:
Federal Deposit Insurance Corporation
Banks for cooperatives
Federal intermediate credit banks
Federal land banks
Federal home loan banks
By Exchange stabilization fund
Total, investments in Treasury issuances

-5
269
-10
13
7

57
250

75
349

852
1,460

16
-3

25
4

142
8

-821
-129
456
1
1,144
92
242
-114

487
-147
629
85
1,095
-92
-68
83

125
-204
475
136
940

18,225
1,927
7,349
3,918
15,569

-140
226

470
7,025

5
8

-26
4

-9
-12

24
19

161

180

202

3,136
43
113
102
2,044
M53

1
-2
612
81

100

2.007

2,552

2,294

62,580

41
-27

26
-59

52
-8

126
27

-73

Investments in issuances of other funds:

By public enterprise funds:
Federal Housing Administration
Federal National Mortgage Association
By trust funds:
Federal National Mortgage Association. _"
District of Columbia municipal government
funds
_ _ _
Total, investments in issuances of other funds.
Total, investments in U.S. securities

-106

170

2,069

2,446

2,338

62,751

Note.— Negative figures represent net reduction of investments.
"'Less than one-half million dollars.
1
As of end of fiscal year 1963; estimates for 1964 and 1965 are not available.

SPECIAL ANALYSIS

CIVILIAN EMPLOYMENT IN THE EXECUTIVE BRANCH

This analysis summarizes actual and estimated employment in the
executive branch for fiscal years 1963, 1964, and 1965.
EMPLOYMENT TOTALS

The 1965 budget projects a decrease of 1,200 in civilian employment
in the executive branch—it is the first budget to call for a reduction
in total civilian employment since the practice of making total employment estimates for the budget proposals began 9 years ago.
Regular employees will total 2,511,200 at the end of fiscal 1965, as.
compared with 2,512,400 at the same time in 1964.
Table C-l SUMMARY OF CIVILIAN EMPLOYMENT IN THE EXECUTIVE
BRANCH
As of June
1965

1963
actual

Department of Defense—Military and military
assistance 1
1,017,117
Post Office Department
587,161
Veterans Administration
172,864
Department of Agriculture
112,488
81,062
Department of Health, Education, and Welfare. _
86,579
Treasury Department
433,017
All others
Total
1
2

22,490,288

1964
estimate

Estimate

Percent

1,007,000
593,100
173,021
116,800
86,000
88,433
448,046

989,920
597,900
173,754
115,376
90,730
90,427
453,093

39.4
23.8
6.9
4.6
3.6
3.6
18.0

2,512,400

2,511,200

100.0

Consists of civilian employment for military functions and military assistance.
Excludes 7,411 project employees for the public works acceleration program.

About 70% of all Federal civilian employees work in three agencies,
the Department of Defense, Post Office, and the Veterans Administration. The Departments of Agriculture, Health, Education, and
Welfare, and Treasury account for another 12%. AH the remaining
50-odd agencies of the Government account for only 18% of the
employment. The totals for the major agencies are shown on table 12
in part 2.
TYPES OF POSITIONS

Employees appointed to four major types of positions make up the
Federal work force. They are designated "permanent," "temporary,"
"part-time," and "intermittent," respectively.
Most employees occupy positions called "permanent," though these
positions can usually be abolished by the head of the employing agency
if he decides to discontinue a function or to reorganize staffing arrangements so as to improve efficiency, or if funds are not available to

347

348

THE BUDGET FOR FISCAL YEAR 1 9 6 5

support the agency*s full authorized strength. Most of these employees are not office workers, but are to be found on postal routes,
in hospitals, shipyards and research laboratories, in national forests
and parks, as teachers in Indian schools, airway control experts,
highway construction engineers, border patrol inspectors, and in
many other places and jobs.
Most short-term fluctuations in total Federal employment reflect
changes in the number of "temporary," "part-time," and "intermittent" employees in service. "Temporary" positions are predominantly of a seasonal character and usually vary in number by at least
30,000 between peak employment during the summer months and the
midwinter nadir. "Part-time" employees are found principally in
the Post Office and the Veterans Administration, and are used to meet
workloads that regularly require less than a full week's work. "InterTable C-2. EMPLOYMENT BY TYPE OF POSITION OCCUPIED
(As of June 1963)
Description

Executive Office of the President. __
Department of Agriculture
Department of Commerce
Department of Defense:
Military and military assistance l.

Civil2

Department of Health, Education,
and Welfare
Department of the Interior
Department of Justice
Department of Labor
Post Office Department
Department of State
Agency for International Development
Peace Corps
Treasury Department
Atomic Energy Commission
Federal Aviation Agency
General Services Administration
Housing and Home Finance Agency _
National Aeronautics and Space
Administration
Veterans Administration
Other:
Civil Service Commission
Selective Service System
Small Business Administration. __
Tennessee Valley Authority
The Panama Canal
United
States
Information
Agency
'_.
Miscellaneous
independent
agencies and other
Total*

Intermittent

Full-time
permanent

Full-time
temporary

1,324
78,898
28,466

184
16,762
2,250
14,648
2,322

14
3,182
442
1,626
15

77,155
54,696
31,421
9,193
449,666
23,880

2,299
9,514
323
78
377

500
503
37
51
72,540
205

1,108
4,845
300
323
64,877
57

81,062
69,558
32,081
9,567
587,161
24,519

16,491
872
82,576
6,977
45,213
31,656
13,927

221
183
3,382
55
176
616
51

19
16
541
15
121
273
40

51
39
80
73
803
105
142

16,782
1,110
86,579
7,120
46,313
32,650
14,160

27,904
150,871

1,905
3,120

10
5,428

115
13,445

29,934
172,864

3,985
5,130
3,328
11,382
13,990

20
1,276

59
6,298
315

216
341

55
510
21
320

4,085
6,916
3,387
17,917
14,966

11,485

276

11,793

22,429

545

449

23,513

2,231,519

65,737

87,797

998,585
30,019

Parttime

Total

1,660
138
112,488
13,646
32,338
1,180
2,258 1.017,117
32,648
292

105,235 2,490,288

1
Consists of civilian employment for military functions and military assistance.
2 Employment of the Panama Canal and the United States Soldiers Home is included under
"Other"
below.
8
Excludes 7,411 project employees for the public works acceleration program.

SPECIAL ANALYSES

349

mittent employees" include leave replacements for rural mail carriers,
consultants, members of advisory committees, and others who may
work for the Government for as little as 1 day a month, and in some
months not at all.
As the fiscal year ends on June 30, the end-of-year employment
figure includes most of the seasonal employees likely to be on board
at any one time of the year and is, therefore, higher than the average
number of employees for the year. Table C-2 shows the composition
of Federal employment by type of position and major agency at the
end of fiscal 1963.
EMPLOYMENT CHANGES IN PARTICULAR AGENCIES

The President has directed each agency to institute programs to
improve management and employee productivity, and to continuously
reassess its employment needs in the light of advances made through
these efforts. Many agencies have achieved outstanding results, of
which the following are a few recent examples:
• The Department of Defense, the Government's largest employer,
has identified economies which will allow a drop of 10,000 in employment in 1964, and a further reduction of 17,000 in 1965.
• The Post Office Department, despite an uncontrollable workload
and the necessity to extend service to rapidly growing suburban
areas, has held staff increases to 1.8% between 1963 and 1965, as
compared with an increase of 6.4% in mail volume.
• The Agency for International Development has made management improvements in Washington and in its foreign posts which,
together with program adjustments, will result in a decrease in
overall employment of about 800 in 1965.
• The Department of Agriculture will employ about 1,400 fewer
people at the end of 1965 than at the same time in 1964, due principally to improvements in management and organization, as well
as elimination of lower priority projects.
Savings achieved through economies of management and operations
contribute to the Government's ability to meet new and growing
needs. Employment growth in such agencies as the Department of
Health, Education, and Welfare corresponds to the initiation of new
programs, usually requiring new legislation, to accomplish objectives
urgent to the national interest such as the eradication of poverty.
Increases in such agencies as the Treasury Department and the General Services Administration reflect the necessity of coping with
expanding workloads which require more people with even the most
efficient procedures. In 1965, savings accomplished through improved
management will more than offset both of these kinds of increases,
however.

350

THE BUDGET FOR FISCAL YEAR 1965
EMPLOYMENT COMPARED WITH OTHER FACTORS

Federal employment has grown more slowly than population or
other types of employment.
Between 1955 and 1965, the U.S. population will have risen at an
average annual rate of 1.7%. The average yearly growth of Federal
employment over the same period has been 0.6%. Though not
every agency's workload is directly affected by population increases,
most of them are, and have been further increased by changes in the
nature and composition of the population, (e.g., increases in the
numbers of very old and very young persons). Despite this, however, Federal employment has grown more slowly than the population—in 1955, each Federal employee in the executive branch served
70 Americans; it is expected that in 1965 each employee will be
serving 77 Americans (see table C-3). There are now approximately
13 U.S. workers serving each 1,000 of the population, of which 5 are
employed by Defense, 3 by the Post Office, 1 by the Veterans Administration, and 4 by all the rest of the Government.
Federal employment has also grown less than non-Federal, nonagricultural employment over the same period of time, as indicated in
table C-3. In 1955, there were 20 non-Federal, nonagricultural
employees for each Federal employee; but in 1965, there are expected to be 24.
Table C-3. EXECUTIVE BRANCH EMPLOYMENT, POPULATION,
AND OTHER EMPLOYMENT

Executive
branch
employment as
of June
(thousands)

1942
1945
1948
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964(estimated)_
1965 (estimated).
1
3
3

2,272
3,787
2.044
1
1,934
2,456
2,574
2,532
2,382
2,371
2,372
2,391
2,355
2,355
12,371
2,407
2,485
2 2,490
2,512
2,511

Number
(thousands)

135 ,'361
140,468
147,208
152,271
154,878
157,553
160,184
163,026
165,931
168,903
171,984
174,882
177,830
180,676
183,742
186,591
189,278

State and local
government
employment

Non-Federal
nonagricultural
employment

U.S. population

Number
per
executive
branch
employee

60
37
72
79
63
61
63
68
70
71
72
74
76
76
76
75
76
76
77

Number
(thousands)

37,912
37,586
43,028
43,294
45,547
46,405
47,927
46,834
48,488
50,199
50,687
49,232
51.171
52,100
51,945
53,501
54,807

Number
per
executive
branch
employee

Number
(thousands)

17
10
21
22
19
18
19
20
20
21
21
21
22
22
22
22
22
23
24

Includes piece-rate census workers employed for the decennial census.
Excludes 7,411 project employees for the public works acceleration program.
Not available.

3.310
3,104
3,776
4,078
4,031
4,134
4,282
4,552
4,728
5,064
5,387
5,681
5,907
6,233
6,520
6,823
7,141

Number
per
executive
branch
employee

1.5
.8
1.8
2.1
1.6
1.6
1.9
2.0
2.1
2.3
2.4
2.5
2.6
2.7
2.7
2.9
3.0
3.1

SPECIAL ANALYSES

351

State and local government employment will have increased by
64% since 1955 while Federal civilian employment will rise less than
6%.
It is also important to note that personnel compensation is a relatively small portion of the Federal budget. In the administrative
budget for 1965 these costs amount to only 12.5%, and they are only
slightly more than 10% of consolidated cash expenditures. The adequacy of pay rates have significant monetary effects throughout the
budget, however, as they affect the quality of personnel charged with
maximizing efficiency and economy.

SPECIAL A N A L Y S I S

INVESTMENT, OPERATING, AND OTHER EXPENDITURES

This analysis is designed to contribute to a greater understanding of
Government activities by dividing Federal administrative budget and
trust fund expenditures into several categories: (1) additions to
Federal assets; (2) additions to State, local, and private assets; (3)
developmental expenditures; (4) current expenses for aids and special
services; (5) retirement and social insurance benefits (trust funds
only); (6) other services and current operating expenses; and (7) unclassified (trust fund expenditures which do not properly belong in any
of the other categories). In each category where applicable, national
defense expenditures are reported separately from those for all other
(civil) programs.
Basically, this analysis distinguishes between two types of expenditures: Those yielding benefits primarily in the future and those providing benefits largely in the year in which they are made. The
former are essentially outlays of an investment nature while the latter
are principally current expenses for aids, special services, and social
insurance benefits. Expenditures yielding benefits over a period of
years are shown in the first three classes, while outlays providing
mainly current benefits are grouped in the remaining categories.
Expenditures from administrative budget funds are shown separately from trust funds in tables D-l and D-2. The sum of the budget
and trust fund totals is greater than the total of cash payments to
the public primarily because there are intragovernmental transactions.
1. Additions to Federal assets.—This category includes administrative budget expenditures for direct loans, such as loans to finance
private housing construction and encourage home ownership, to help
small businesses, to finance college dormitory construction, to aid farm
ownership and operation, to finance rural electric and telephone
systems, and to promote economic development abroad. (Most of
these programs are included in the budget total on a net basis; that is,
gross disbursements less receipts.) It also includes financial investments in certain international organizations and mixed-ownership
enterprises, and expenditures for public works, for changes in major
commodity inventories, for major equipment (including military
equipment), and for the acquisition and improvement of real property
and other physical assets.
Trust fund expenditures in this category consist primarily of mortgage purchases (net of sales) by the Federal National Mortgage
Association in support of its secondary mortgage market operations,
and net loans by two Government-sponsored enterprises—banks for
cooperatives and the Federal intermediate credit banks.
2. Additions to State, local, and private assets.—Federal outlays
under this heading add to State, local, and private assets. Grant352

SPECIAL

353

ANALYSES

Table D-l. SUMMARY OF INVESTMENT, OPERATING, AND OTHER
EXPENDITURES (in millions of dollars)

Description

Additions to Federal assets:
Civil
National defense
Additions to State, local, and private
assets:
Civil
National defense
Developmental expenditures:
Civil
National defense
__
Subtotal, investment and developmental type expenditures:
Civil
National defense
Current expenses for aids and special
services:
Civil
National defense
Retirement and social insurance benefits—
civil
Other services and current operating expenses:
Civil:
Interest
Other
National defense
District of Columbia, deposit funds, and
other unclassified items
Allowances and contingencies
Interfund transactions
Grand total

Trust funds

Administrative 1 >udget
funds
1963

1964

1965

1963

5,060
17,947

3,555
18,734

3,090
17,239

-250

1,312

1,686

1,683

3,481

4,772
7,886

6,840
8,597

7,837
8,252

11,144
25,861

12,082
27,359

16,109
1,751

17,311
1,617

9,980
3,167
25,142

-513
92,642

1965
estimate

1964

362

576

4,833

3,582

12,610
25,513

3,285

5,263

4,232

16,354
1,265

661
674

816
860

1,225

20,814

21,409

22,330

151
5

153
5

104
5

792

10,701
3,449
26,323

11,101
3,360
27,201

1,461

1,294

1,160

250
-685

1,094
-600

-505

-488

-477

98,405

97,900

26,545

29,315

29,372

*Less than one-half million dollars.

in-aid expenditures which augment the physical assets of State and
local governments are primarily for the construction of highways
(mainly through the Highway trust fund), hospitals, airports, wastetreatment works, watershed protection projects, schools in federally
affected areas, and public facilities under the area redevelopment
program and the temporary accelerated public works program.
Federal expenditures which increase the value of privately owned
assets are largely for the conservation and improvement of private
farm land and water, for grants to States for the building of private
hospitals and other health facilities, and for construction subsidies to
the merchant fleet. Trust fund expenditures in this category, in
addition to the highway program, include the net loans made by the
Federal land banks and the Federal home loan banks (Governmentsponsored enterprises in which the Federal Government no longer
holds any capital stock); these loans strengthen lending institutions
which promote farming and individual home ownership.
700-000(

354

THE BUDGET FOR TISCAL YEAR 196 5

3. Developmental expenditures.—Federal expenditures of this type
include outlays principally for research and development, education
and health, and other programs which increase the Nation's fund of
knowledge and technical skills and improve the physical vigor of the
population. The total of Federal spending shown in this category
does not fully reflect the Government's contribution to the productivity of the economy, since it excludes additions to physical assets, as
well as certain other programs which further this end. The latter
are classified in accordance with their principal purpose; thus, veterans
educational benefits are listed as veterans aids rather than as developmental outlays. Similarly, the training of military personnel or other
Government personnel is treated as an operating expense and not as
part of the Government's education and training programs.
4. Current expenses jor aids and special services.—Expenditures
classified under this heading provide aids or special services to certain
groups—mainly in the year in which the outlays are made. In addition to such items as realized losses of the Commodity Credit Corporation on its farm programs, maritime operating subsidies, veterans
pensions, and grants to foreign nations for economic and military
assistance, this category includes (a) administrative and other operating expenses attributable to investment-type programs which benefit
specific groups, and (b) the costs of maintaining the physical assets
related to those programs.
Only part of the Federal Government's aid to special groups is
reflected in this classification, which is limited by definition to current
expenses. For example, subsidies for the construction of private
merchant ships are classified as additions to private assets. Similarly,
outlays for which the Federal Government receives assets or collateral
(as the acquisition of farm commodities by the Commodity Credit
Corporation) are treated as additions to Federal assets. Many
indirect Government aids are excluded from this classification either
because they are not reflected in expenditures or cannot be readily
measured. Examples of such indirect benefits include low interest
rates on some loans and certain preferential tax treatments.
Although expenditures in this category essentially provide a direct
aid or special service yielding immediate benefits, some of the outlays
included contribute indirectly to the Nation's future development.
Among these are grants for slum clearance and urban renewal.
5. Retirement and social insurance benefits.—This category applies
only to trust funds. It covers benefit programs which (a) are financed from special taxes or contributions and (b) provide insurance
against the loss of income due to unemployment, retirement, disability,
or death. It does not include Government employees' health and
life insurance expenditures, which are in the form of subscription and
premium payments to approved private companies. It also excludes
such noncontributory programs as public assistance grants, military
retired pay, and veterans disability and death compensation and
pensions which are financed through the administrative budget.
6. Other services and current operating expenses.—The outlays reported under this heading support a wide range of activities. They

SPECIAL ANALYSES

355

consist mainly of current expenditures for: Pay and subsistence of
military personnel; repair, maintenance, and operation of physical
assets of the national military establishment and general purpose
public buildings; conduct of foreign affairs; tax collection; payment of
interest on the national debt; and operation and administration of
other direct Federal programs not elsewhere classified.
7. Unclassified.—Certain trust fund expenditures represent financial transfers to other trust or budget accounts and cannot be properly
classified into any of the categories described above. Advances and
repayments between the Railroad retirement account and the Unemployment trust fund (for railroad unemployment benefits) are
examples of such transactions. This grouping also includes the
expenditures of the District of Columbia which are for the most part
locally financed, but are accounted for as a Federal trust fund.
Deposit fund transactions (net) are also included here.
Recoverability of expenditures.—In general, Government expenditures for assets are not expected to be recovered by specific revenues.
However, most loans, investment in commodity inventories, the construction of powerplants, and outlays for range and forest improvements on public domain and national forest lands are offset in whole
or in part by receipts to the Treasury through repayments and sales,
specific charges, or recoveries. Where such activities are carried on
through revolving funds, as in most loan programs, receipts are
credited directly against the expenditures and only the difference is
included in the expenditure total in the budget and in this analysis.
In other cases, the returns are included as miscellaneous receipts to the
Treasury rather than as offsets to expenditures.
Whether recovered by specific revenues or not, investment and
developmental expenditures in both physical and human capital add
to the wealth and income of the Nation and, by helping to expand the
tax base, augment the Government's potential future revenues.
However, this analysis does not attempt to measure the degree of
recoverability of these outlays, the potential gain in public revenues
which will be forthcoming from them, nor the duration of future
benefits and their discounted present value.
Comparison with capital accounting, budgeting, and funding.—The
purpose of this analysis is to provide a broad framework for understanding Federal expenditures, recognizing not only outlays to increase
physical capital and financial assets, but also developmental expenditures which represent an investment in human capital. It does not
distinguish precisely between capital and current items, although it
does provide useful general magnitudes. Moreover, it does not make
any allowance for depreciation and obsolescence on existing physical
assets, anticipated losses on loan programs, or profit or loss on sales of
assets at figures different from their book value. Agencies record such
allowances only for transactions where the data will serve program
and management needs, as in the case of the public enterprise funds.
As a result, it is not possible to determine directly from this analysis
the net addition to the value of federally owned assets.

356

THE BUDGET FOR FISCAL YEAR 1965

This analysis is not a capital budget in the sense of a long-range
program for the acquisition of assets, or a plan for separate financing
of capital expenditures. Some foreign governments and some State
and local governments fund a portion of their capital expenditures by
separate borrowing and exclude most or all such expenditures from
their computation of budget totals, except for annual charges to
amortize these capital outlays over a number of years. The U.S.
budget, on the other hand, treats outlays for investment items and
for other purposes alike in computing the budget surplus or deficit.
Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES
(in millions of dollars)

Description

1963
actual

1964

1965

Administrative Budget Funds

ADDITIONS TO FEDERAL ASSETS
Loans:

Civil:
To domestic private borrowers:
Department of Agriculture:
Commodity Credit Corporation: Price support and
grain storage loans
Rural Electrification Administration
Farmers Home Administration
._ __ _
Department of Commerce:
Area redevelopment fund and other
Department of Health, Education, and Welfare: Defense
educational activities and other _
Housing and Home Finance Agency:
Federal National Mortgage Association _ _
College housing loans
Housing for the elderly
Federal Housing Administration_
__
Other
Veterans Administration:
Housing loans:
Veterans direct loans _ _ _ _
Loan guarantee revolving fund
Utner
FederalBusiness
Home Loan
Bank Board
Small
Administration
Other agencies
_
_
_
Total, to domestic private borrowers, civil
To State and local governments:
Housing and Home Finance Agency:
College housing loans
Public facility loans
Low rent public housing
Other
District of Columbia
__ _
Other agencies
Total, to State and local governments, civil
"Less than one-half million dollars.

433

-25

332
289

218
263

-420
218
106

131

152

-440
173
18
-98
*

-459
154
33
-100
-2

-591
145
51
-191
-1

-65

-58
13

-157
-136

127
1

44
124
8

-7
123
*

781

405

-623

115
30
-3
-9

74
34
-56
21

68
31

32
19

26
43

*
22
30
51

184

141

203

-106
L

357

SPECIAL ANALYSES

Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES
(in millions of dollars)—Continued
Description

1964
estimate

1963
actual

1965
estimate

Administrative Budget Funds—Continued
ADDITIONS TO FEDERAL ASSETS—Continued

Loans—Continued
Civil—Continued
To foreign borrowers:
Funds appropriated to the President: Foreign assistance—
economic
Department of State: Loan to the United Nations
Export-Import Bank of Washington
___ ____

1,020
11
-111

1,057
4
-522

-732

820

539

401

1,785

1,085

-19

National defense:
To domestic private borrowers:
Funds appropriated to the President: Expansion of defense
production
Other agencies

-68
4

-4
5

-4
2

Total, to domestic private borrowers, national defense.._

-64

-2

To foreign borrowers: Department of Defense—Military
assistance
..

-46

-75

-78

-110
1,675

-75
1,010

-80
-98

49
60
62

100
50
62

120

-85

-8

-4

-101
-5

-2

176

104

62
6

92
5

89
5

14
3

27
13

22
4

853
16

852
15

902
10
1

Total, to foreign borrowers, civil
Total, loans, civil

Total, loans, national defense
Total, loans
_ _ _
Other financial investments:
Civil:
Investments in quasi-public institutions, trust funds and international institutions:
Funds appropriated to the President:
Foreign assistance—economic,
Inter-American Development Bank _
International Development Association
Department of Labor: Advances to unemployment trust
fund
Housing and Home Finance Agency: Federal National
Mortgage Association
_
Other agencies. _
Total, investment in quasi-public institutions, trust
funds and international financial institutions

1,133

Public works—sites and direct construction:

Civil:
Legislative branch
Funds appropriated to the President: Public works acceleration
_.
Department of Agriculture:
Forest Service
Other
Department of Commerce:
National Bureau of Standards
Other
Department of Defense—Civil:
Corps of Engineers
The Panama Canal
Other

358

THE BUDGET FOR FISCAL YEAR 1965

Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES
(in millions of dollars)—Continued
Description

1964

1963

1965

Administrative Budget Funds—Continued
ADDITIONS TO FEDERAL ASSETS-Continued
Public works—sites and direct construction—Continued

Civil—Continued
Department of Health, Education, and Welfare:
Public health service
Other
Department of the Interior:
Bureau of Reclamation
Bureau of Indian Affairs
National Park Service
_
_
Bonneville Power Administration
_ __
Other
Post Office Department _ .
Department of State _ _ _
_
Treasury Department
_
Federal Aviation Agency
General Services Administration: Public buildings
National Aeronautics and Space Administration
Veterans Administration: Hospitals and other
Tennessee Valley Authority
Other agencies
___

_ .

Total, public works, civil
National defense:
Department of Defense—Military:
Military construction (excluding infrastructure)
Family housing. _
,
Other
Atomic Energy Commission
Other agencies
_
Total, public works, national defense

Total, public works, sites and direct construction

9
15

24
14

29
16

270
65
59
15
25

255
57
59
25
28

239
65
61
33
27

34
13
5
129
156
225
66
135
40

33
18
17
107
185
475
75
172
45

46
35
31
99
217
520
86
172
11

2,289

2,720

2,815

1,124
8

1,092
185

1,046
190

249
1

243
1

8
260
1

1,383

1.522

1,504

3,672

4,242

4,319

251
4

-918
36

-328

256

-882

-286

Major commodity inventories:

Civil:
Department of Agriculture: Commodity Credit Corporation:
Agricultural commodities
Other agencies
Total, major commodity inventories, civil

National defense:
Funds appropriated to the President: Expansion of defense
production
Department of Defense—Military: Civil defense.._
_
Department of Health, Education, and Welfare: Emergency
health activities
_
___

-21

-30

Total, major commodity inventories, national defense

-5

293

-861

-291

Total, major commodity inventories

359

SPECIAL ANALYSES

Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES
(in millions of dollars) —Continued
Description

1964

1963

1965

Administrative Budget Funds—Continued
ADDITIONS TO FEDERAL ASSETS—Continued
Major equipment:

Civil:
Department of Commerce
Post Office Department
Treasury Department: Coast Guard
Other agencies

33
39
30
20

45
52
21
32

48
52
29
15

Total, major equipment, civil

122

150

145

15,147
157

15,895
192

14,538
\75

Total, major equipment, national defense

15,303

16,087

14,713

Total, major equipment

15,426

16,236

14,858

22
30

24
44

28
44

399
56
13

345
-37
9

222
-50
15

521

385

259

157
1,177

160
1,017

165
942

1,334

1,177

1,107

1,855

1,562

1,366

23,007

22,288

20,330

National defense:
Department of Defense—Military
Atomic Energy Commission

Other physical assets—acquisition and improvement:
Civil:
Department of Agriculture
Department of the Interior
Housing and Home Finance Agency—Federal Housing Administration and other
Veterans Administration
Other agencies
..1
Total, other physcial assets, civil
National defense:
Department of Defense—Military
Atomic Energy Commission
Total, other physical assets, national defense
Total, other physical assets—acquisition and improvementTotal, additions to Federal assets
ADDITIONS TO STATE, LOCAL, AND PRIVATE
ASSETS

State and local assets:
Civil:
Funds appropriated to the President: Public works acceleration
Department of Agriculture: Flood prevention and watershed protection
Department of Commerce:
Area Redevelopment Administration
Bureau of Public Roads—Forest highways and other
Department of Health, Education, and Welfare:
School construction in federally affected areas
Hospital construction activities
Waste treatment works construction
_
Other
.
Federal Aviation Agency: Grants-in-aid for airports
Housing and Home Finance Agency
•Leas than one-half million dollars.

111

214

3
39

10
42

11
40

53
69
52
3
51
*

49
76
75
5
75
9

52
79

30
76
24

360

THE BUDGET FOR FISCAL YEAR 1965

Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES
(in millions of dollars)—Continued
Description

1963
actual

1964
estimate

1965
estimate

Administrative Budget Funds—Continued
ADDITIONS TO STATE, LOCAL, AND PRIVATE
ASSETS—Continued

State and local assets—Continued
Civil—Continued
District of Columbia
Other agencies___
_
Total, State and local assets, civil
National defense: Department of Defense—Military.
Total, State and local assets

5
29

12
24

30
26

376

662

715

404

690

737

523

573
117
1
94

477
119
1

114
38
10
40
2

119
42
37
53
2

936

1,024

968

1,340

1,714

,706

277
102
34

290
119
51
3
49
106

335
135
104
106
69
106

175
69
32
11

57
216
111
33
16

59
209
113
38
16

76
13
11

99
15
12

122
15
13

22.

Private assets—civil:

Funds appropriated to the President:
Public works acceleration
Department of Agriculture:
Agricultural stabilization and conservation
Soil conservation
Other
_
Department of Commerce: Merchant ships
Department of Health, Education, and Welfare:
Private hospital construction
Health research facilities
Other
National Science Foundation
Other agencies
Total, private assets—
Total, additions to State, local, and private assets.

112
9

103

113
34
4
36

DEVELOPMENTAL EXPENDITURES
Education, training, and health:

Civil:
Department of Agriculture: Extension Service
Department of Health, Education, and Welfare:
Office of Education:
Payments to school districts
Defense educational activities
Vocational education
Proposed education legislation
Other
Vocational rehabilitation administration
Public Health Service:
Indian health activities
National Institutes of Health
Community health
Environmental health.
Other
_
Welfare Administration:
Grants, maternal and child welfare
Other
Other
.
.
...
Department of the Interior: Bureau of Indian Affairs:
Education and welfare
_

42
85

361

SPECIAL ANALYSES

Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES
(in millions of dollars) —Continued
1963
actual

Description

1964
estimate

1965
estimate

Administrative Budget Funds—Continued
DEVELOPMENTAL EXPENDITURES—Continued

Education, training, and health—Continued
Civil—Continued
Department of Labor:
Youth employment opportunities
Other
National Science Foundation.
Other agencies
Total, education, training, and health, civil

National defense: Atomic Energy Commission
Total, education, training, and health

Research and development:
Civil:
Department of Agriculture:
Agricultural Research Service
Cooperative State Experiment Station Service.
Forest Service
Other
.
Department of Commerce:
National Bureau of Standards
Other
.
_
Department of Health, Education, and Welfare:
Public Health Service:
National Institutes of Health
Other
_
_
Office of Education and other
Department of the Interior:
Geological Survey
Bureau of Mines
Fish and Wildlife Service
Other
Federal Aviation Agency
National Aeronautics and Space Administration
Veterans Administration
National Science Foundation
. .
Other agencies
Total, research and development, civil
National defense:
Department of Defense—Military:
Military personnel: Research and development
Procurement: Test and evaluation support
Research, development, test, and evaluation
Operation and maintenance
Other
Atomic Energy Commission
Other agencies.
Total, research and development, national defense
Total, research and development
"Less than one-half million dollars.

c
D

1,214

1,453

1,790

1,229

1,469

1,809

86
38
22
18

97
42
37
20

102

23
23

25
25

29
32

511
40
29

563
87
42

586
88
51

27
29
11
10
63
2,327
30
100

30
30
29
18
69
3,925
34
127

33
31
33
19
109

143
57

3,439

5,253

5,906

239
90
6,376
72
15
1,078
3

248
85
6,943
48
20
1,237

259
90
6,580
42

7,871

8,581

8,233

11,310

13,834

14,140

42
26

4,470
36

20
1,242

362

THE BUDGET FOR FISCAL YEAR 196 5

Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES
(in millions of dollars) —Continued
Description

1964
stimate

1963
actual

1965
stimate

Administrative Budget Funds—Continued
DEVELOPMENTAL EXPENDITURES—Continued
Engineering and natural resource surveys—civil:
Department of the Interior:
Geological survey
Other
Other agencies
Total, engineering and natural resource surveys
Total, developmental expenditures

30
25

31
30

34
30
78

119

134

141

12,658

15,436

16,090

112
7

271
5

174
7

88
77
11

116
93

114
88

1,483
74
100
63
2,433
79
59
«?

1,609
101
86
79
2,757
223
59
£0

1,081

2,357
295
94
92

4,675

5,488

4,458

226
51

226
58

214
69

11;

126
-11

691
210
431
82
22

127
__(
452
257
472
85
28

1,845

1,722

1,668

-3

CURRENT EXPENSES FOR AIDS AND SPECIAL
SERVICES
Agriculture—civil :

Department of Agriculture:
Agricultural Marketing Service:
Removal of surplus agricultural commodities
__
Other
_ _
Agricultural Stabilization and Conservation Service:
Expenses
Sugar Act
- Other
Commodity Credit Corporation and special export programs:
Sales for foreign currencies
_
International Wheat Agreement
Transfer to supplemental stockpile
National Wool Act
Price support, supply, and related programs
Losses on long-term sales contracts
Agricultural Research Service. _
Other
Other agencies
Total, agriculture
Business:
Civil:
Department of Commerce:
Patent Office
Maritime Administration: Ship operating subsidies and
other
'
_____
-_
Other
-__
Department of Defense—Civil:
Corps of Engineers: Operation and maintenance
Other
__
Post Office Department
Treasury Department: Coast Guard: Navigation aids
Federal Aviation Acencv
Civil Aeronautics Board: Payments to air carriers
Other agencies
Total, business, civilNational defense: Funds appropriated to the President: Ex
pansion of Defense production
._
Total, business
'Less than one-half million dollars.

_
1,84

1,87

*
81
55

368
267
494
83
28

1,664

363

SPECIAL ANALYSES

Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES
(in millions of dollars) —Continued
Description

1964
estimate

1963
actual

1965
estimate

Administrative Budget Funds—Continued
CURRENT EXPENSES FOR AIDS AND SPECIAL
SERVICES—Continued
Labor—civil:

Department of Labor:
Manpower development and training activities
Other. .
__
Other agencies
Total, labor
Homeowners and tenants—civil:
Housing and Home Finance Agency:
Urban renewal
Federal Housing Administration
Public Housing
Other_
Federal Home Loan Bank Board
Other agencies __
Total, homeowners and tenants
Veterans—civil:
Department of Health, Education, and Welfare: Military
service credits
Veterans Administration:
HosDitals and medical care
Condensation and Densions
Readjustment benefits
Direct housing loans: Operating expenses
Loan guarantee revolving fund: Operating expenses
General operating expenses and other
Other agencies
Total, veterans
International aids:
Civil:
Funds appropriated to the President:
Foreign assistance—economic
Peace Corps
- Department of Agriculture: Commodity Credit Corporation
and special export programs: Emergency famine relief to
friendly peoples
-- -Export-Import Bank of Washington
Other agencies
Total, international aids, civil
National defense: Department of Defense—Military assistance.
Total, international aids

Other aids and special services—civil:
Funds appropriated to the President: Disaster relief
Department of Agriculture:
School lunch program
Special milk program
Food stamp plan
_ __.
*Less than one-half million dollars.

_ _. _

50
19

133
19

322
20

158

347

186

234

312

-167
182
11
-266

-189
205
-6
-294

-204
223
18
-342

-53

-50

60
1,047
3,871
96
-23
29
169
10

1,129
3,929
65
-11
35
173
11

1,123
3,960
44

5,200

5,331

5,373

967
42

934
73

885
90

216
-120
21

246
-127
28

-124

1,126

1.1.54

1,123

1,754

1,466

1,268

2,880

2,620

2,391

170
94
20

182
98
45

193

-15

24
150
26

244
30

100
51

364

THE BUDGET FOR FISCAL YEAR 1965

Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES
(in millions of dollars) —Continued
Description

1963
actual

1964

1965

Administrative Budget Funds—Continued

CURRENT EXPENSES FOR AIDS AND SPECIAL
SERVICES-Continued
Other aids and special services—civil—Continued

Department of Health, Education, and Welfare:
Hospitals and medical care
_
Public assistance
Assistance for Cuban refugees
_._
Other
Department of the Interior: Bureau of Indian Affairs
Other agencies
_
__

50
,730
42
30
51
24

50
2,948
39
38
51
24

51
2,816
33
35
51
25

3,241

3,508

3,378

17,861

18,929

17,618

133
48

135
49

125
54

25
44
44
14
226
-100
41

25
46
47

-137
45

49
53
16
254
-128
53

477

469

502

11,802
95
82
-1

11,822
175
95
-1

12,236
145
97
-1

Total, repair, maintenance, and operation, national defense
_

11,978

12,091

12,477

Total, repair, maintenance, and operation of physical assets.

12,455

12,560

12,979

26
29

27
31
1
34

-29
17
1
38

Total, other aids and special services
Total, current expenses for aids and special services

OTHER SERVICES AND CURRENT OPERATING
EXPENSES
Repair, maintenance, and operation of physical assets (excluding
special services):

Civil:
Department of Agriculture: Forest Service
Department of Defense—Civil: Corps of Engineers
Department of the Interior:
Bureau of Land Management
National Park Service
___
Bureau of Reclamation
Other.
_
General Services Administration: Real property activities. _
Tennessee Valley Authority
Other agencies
__
__
Total, repair, maintenance, and operation, civil
National defense:
Department of Defense—Military:
Operation and maintenance
Family housing
Atomic Energy Commission
Other agencies

16
243

Regulation and control:

The Judiciary
Department of Agriculture:
Agricultural Research Service
Agricultural Marketing Service
Agricultural Stabilization and Conservation Service
Department of Health, Education, and Welfare

1
25

365

SPECIAL ANALYSES

Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES
(in millions of dollars) —Continued
Description

1963
actual

1964
estimate

1965
estimate

Administrative Budget Funds—Continued
OTHER SERVICES AND CURRENT OPERATING
EXPENSES—Continued
Regulation and control—Continued

Department of Justice:
Legal activities and general administration
Federal Bureau of Investigation
Immigration and Naturalization Service
Federal prison system
Department of Labor
Treasury Department:
Bureau of Customs
Other .
Federal Aviation Agency
Interstate Commerce Commission
National Labor Relations Board.
Other agencies

.
_ _
_

Total, regulation and control

136
66
48
24

143
67
48
28

149
70
50
29

31
33
24

35
36
24

21
77

22
85

37
36
25
25
90

730

781

750

164
99
38

166
105
68

178

Other operation and administration:

Civil:
International activities:
Department of State:
Foreign affairs administration
_
International organizations and conferences
__
Educational exchange
____
Other
___
_.
_
United States Information Agency
Other agencies __ _ __
_______
_____
Total, international activities
Federal financial activities:
Treasury Department:
Bureau of Accounts
Bureau of the Public Debt
Internal Revenue Service
Other
General Accounting Office
Other agencies
__
Total, Federal financial activities

_ _

___

Other direct Federal programs:
Legislative branch
_ _
Department of Commerce:
Weather Bureau
Other
Department of Defense—Civil
Treasury Department: Claims, judgments, and private
relief acts
General Services Administration
_ _
Other agencies.__ _
__
Total, other direct Federal programs

94
50
'y

140
3

145
11

156
23

445

512

503

32
49
497
26

34
49
564
29

33
49
592
26

42
4

46
4

47
5

651

726

751

110

127

61
-1
37

63
2
41

67
2
44

26
52
60

13
104
67

77
65

345

417

387

366

THE BUDGET FOR FISCAL YEAR 1965

Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES
(in millions of dollars)—Continued
1963
actual

Description

1964
estimate

1965
estimate

Administrative Budget Funds—Continued
OTHER SERVICES AND CURRENT OPERATING
EXPENSES—Continued
Other operation and administration—Continued

Civil—Continued
Retirement, unemployment, and accident compensation
for Federal employees:
Department of Labor:
Unemployment compensation for Federal employees
Employees' compensation claims and expenses
Treasury Department: Coast Guard retired pay and
Secret Service annuities
Civil Service Commission: Special payments and annuities
-Other agencies
_
Total, retirement, unemployment, and accident compensation for Federal employees
Shared revenues and grants-in-aid:
Department of Agriculture: Forest Service._.
Department of the Interior:
Bureau of Land Management
Qther
Treasury Department
District of Columbia: Federal payment
Other agencies
__. _

153
65

140
59

116
53

52
5

88
5

27
6

307

327

240

68
VI

45
25
17

45
25
18

47
25
16

214

216

226

1,960

2,199

2,108

12,761
166
187

13,932
160
97

14.401
160
110

-10

-15

-14

34
26

37
20

42
25

Total, other operation and administration, national defense-

13,164

14,232

14,724

Total, other operation and administration

15,124

16,430

16,832

9,895

10,600

11,000

74
11

90
11

90
12

101

9,980

10,701

11,101

38,289

40,473

41,663

—

Total, shared revenues and grants-in-aid
Total, other operation and administration, civil
National defense:
Department of Defense—Military:
Military personnel (excluding'research and development).
Family housing
Civil defense
-Other
__
Selective Service System
_
Other agencies
--

Interest:

On the public debt

Other interest:
On refunds: Treasury Department
On uninvested funds: Treasury Department
Total, other interest
Total, interest

Total, other services and current operating expenses

367

SPECIAL ANALYSES

Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES
(in millions of dollars)—Continued
Description

1964

1963

1965

Administrative Budget Funds—Continued
Allowance for attack on poverty
Allowance for civilian pay comparability
Allowance for contingencies
Subtotal
Interfund transactions
Total, administrative budget funds

250

250
544
300

93,155
-513

99,089
-685

98,500
-600

92,642

98,405

97,900

-702
113

-73
123

156
120

29
111
-1

40
111
1

40
233
1

-283

317

550

23
9

35
9

20
5

Trust Funds
(Includes deposit funds and Government-sponsored enterprises)
ADDITIONS TO FEDERAL ASSETS
Loans—civil:
To domestic private borrowers:
Housing and Home Finance Agency: Federal National
Mortgage Association: Secondary market operations
Veterans Administration: Life insurance funds
Farm Credit Administration:
Banks for cooperatives
Federal intermediate credit banks
Other agencies
Total, loans to domestic private borrowers, civil
Public works—sites and direct construction—civil:
Department of Defense—Civil: Corps of Engineers and other_
Other agencies
Total, public works, sites and direct construction
Major equipment—civil

Other physical assets—acquisition and improvement—civil
Total, additions to Federal assets

-250

362

576

ADDITIONS TO STATE, LOCAL, AND PRIVATE
ASSETS
State and local'assets—civil:
Department of Commerce: Highway trust fund and other
Private assets:
Civil:
Farm Credit Administration: Federal land banks
Federal home loan banks
Total, private assets, civil
*Less thai one-half million dollars.

2,941

3,453

3,541

176
363

180
1,200

140
-100

540

1,380

368

THE BUDGET FOR FISCAL YEAR 1965

Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES
(in millions of dollars)—Continued
1964

1963

Description

1965

Trust Funds—Continued
ADDITIONS TO STATE, LOCAL, AND PRIVATE
ASSETS—Continued
Private assets—Continued
National Defense: Atomic Energy Commission

540

1,382

3,481

4,835

3,583

Research and development—civil:
Department of Commerce: Bureau of Public Roads and other.
Other agencies
_

48
5

62
6

68
6

29
19

39
20

42
16

Total, private assets
Total, additions to State, local, and private assets
DEVELOPMENTAL EXPENDITURES

Total, research and development

Total, developmental expenditures
CURRENT EXPENSES FOR AIDS AND SPECIAL
SERVICES
Business—civil:
Department of Commerce:
Bureau of Public Roads
Other
Federal Deposit Insurance Corporation
Total, business.

-161

-180

-202

-112

-121

-144

Labor—civil:

Department of Labor: Unemployment trust fund: Grants for
administration and other

375

450

483

Homeowners and tenants—civil:
Housing and Home Finance Agency: Federal National Mortgage Association: Secondary market operations
National Capital Housing Authority
4

-29
-2

2
1

-18
1

-31

-17

674

860

1,225

680

871

1,234

Total, homeowners and tenants
Veterans—civil
International aids:
Civil
1
National defense: Department of Defense—Military assistance
advances
Total, international aids
•Less than one-half million dollars.

369

SPECIAL ANALYSES

Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES
(in millions of dollars)—Continued
1963
actual

Description

1964

1965

Trust Funds—Continued
CURRENT EXPENSES FOR AIDS AND SPECIAL
SERVICES—Continued
Other aids and special services—civil:

Department of Health, Education, and Welfare:
Federal old-age and survivors insurance: Operating expenses.
Federal disability insurance: Operating expenses
Department of the Interior:
Indian tribal funds
Other . .
_ .
Other agencies
__
_
Total, other aids and special services
Total, current expenses for aids and special services

261
69

304
70

295
85

3
10

3
11

410

457

447

1,335

1,676

2,017

13,845
1.171

14,629
1,255

15,376
1,324

15,015

15,884

16,700

2,965

2,702

2,770

RETIREMENT AND SOCIAL INSURANCE BENEFITS
Social security benefits—civil:

Department of Health, Education, and Welfare:
Federal old-age and survivors insurance
Federal disability insurance
Total, social security benefits

Unemployment benefits—civil: Department of Labor: Unem-

ployment trust fund
Other retirement and social insurance benefits—civil:
Veterans Administration:
National service life insurance
U.S. Government life insurance
Civil Service Commission: Civil Service retirement and disability
__- _-Railroad Retirement Board: Railroad retirement account
Other agencies

642
66

447
56

314
47

1,055
1,064
8

1,212
1,100
8

1,365
1,125
9

Total, other retirement and social insurance benefits

2,834

2,822

2,860

20,814

21,409

22,330

24
3

26
4

17
4

Total, retirement and social insurance benefits

OTHER SERVICES AND CURRENT OPERATING
EXPENSES
Repair, maintenance, and operation of physical assets—civil
Regulation and control:

Department of Agriculture: Inspection, grading, and other—
Other agencies
Total, regulation and control

700-000 O — m

2)4

370

THE BUDGET FOR FISCAL YEAR 1965

Table D-2. INVESTMENT, OPERATING, AND OTHER EXPENDITURES
(in millions of dollars)—Continued
Description

1964

1963
actual

1965

Trust Funds—Continued
OTHER SERVICES AND CURRENT OPERATING
EXPENSES—Continued
Other operation and administration:
Civil:
International activities:
Department of Justice:
Alien property fund, World War II

-103

22
1

66
1

-35

121
-45
2

125
-65
2

125
-55
2

104

102

Total, other operation and administration

109

107

Total, other services and current operating expenses

156~

158

109

423
20
26
38
476
334

423
20
50
18
403
396

418
18

146

101
-116

-17

1,461

1,294

1,160

27,050
-505

29,803
-488

29,849
-477

26,545

29,315

29,372

Foreign Claims Settlement Commission: War claims fund.
Other agencies
Total, international activities
Federal financial activities
Other direct Federal programs:
Civil Service Commission:
Civil Service retirement and disability fund: Refunds
Health benefits and life insurance
Other agencies
Total, other direct Federal programs
Shared revenues and grant-in-aid
Total, other operation and administration, civil
National defense: Department of Defense —Military

i
*

UNCLASSIFIED
Payments to other trust funds:
Federal old-age and survivors insurance
Federal disability insurance
Alien property fund
Railroad retirement account __
Payments to general fund: Unemployment trust fund
District of Columbia _
__
Federal National Mortgage Association—secondary market
operations
Deposit funds. _
.
Total, unclassified
Subtotal
Inter fund transactions
Total, trust funds
*Less than one-half million dollars.

. _

125
8
190
417

SPECIAL ANALYSIS E

FEDERAL CREDIT PROGRAMS
INTRODUCTION

Federal credit aids help achieve basic objectives of Government
programs in six major areas. Most important are the loan, loan
insurance, and loan guarantee programs for: (a) improvement of private housing and encouragement 01 home ownership; (b) development
of agricultural and other natural resources; and (c) promotion of
economic development abroad. In addition, Federal credit programs
provide significant assistance for: (d) domestic business, e.g., small
business generally, transportation, and commercial fisheries; (e)
community development and public housing; and (f) higher education.
Federal Credit Programs
New Commitments

These programs are intended to supplement, rather than to substitute for private credit. In some cases, they fill gaps by providing
or stimulating a type of credit not otherwise generally available to
important groups of borrowers. Often they assume or share in risks
which private lenders, at least initially, cannot reasonably be expected
to undertake. Similarly, the terms on which the assistance is provided
often are more liberal, with longer maturities, smaller downpayments,
371

372

THE BUDGET FOR FISCAL YEAR 1965

or lower interest rates than are generally available otherwise. In
several programs the loans are part of a package of Federal assistance,
which may include, for example, research grants to help identify
promising new industries for depressed areas, or technical aids to help
underdeveloped countries plan and construct basic transportation
systems.
Unlike almost all other Government programs, the initial expenditures involved for credit programs are largely or wholly repayable,
so that the ultimate net cost is normally low. Some programs are
fully self-supporting; in most others, the income from interest payments or insurance and guarantee fees covers most of the current
expenses and/or provides reserves for future losses. Customarily,
administrative expenses are paid from income, but occasionally
separate appropriations are made to finance them. Thus, these
programs are mainly methods of helping borrowers to help themselves.
REPORT OF COMMITTEE ON FEDERAL CREDIT PROGRAMS

In February 1963, President Kennedy released the report of the
Committee on Federal Credit Programs.1 The Committee, chaired
by the Secretary of the Treasury, reviewed legislation and administrative policies governing present Federal credit programs and their
effectiveness in helping to meet national goals. It recommended a set
of guidelines to serve as "a framework for the further evolution of
these programs to meet the changing requirements of an expanding
American economy."
In transmitting the report to the departments and other agencies
administering the various credit programs, the President suggested
that they be "guided by the principles outlined in the report in administering their present programs and especially in proposing any
new or expanded credit authority." Specific assignments were also
made to the Director of the Bureau of the Budget, the Chairman of the
Council of Economic Advisers and the Secretary of the Treasury to
take the lead in assuring effective and equitable application of these
guidelines, in reviewing special economic problems and in assuring
that borrowing arrangements are consistent with overall monetary
and debt management policy.
COVERAGE OF SPECIAL ANALYSIS

The number of types of assistance and the overall level of activity
in Federal credit programs have been gradually rising—as new programs are authorized by the Congress and existing programs broadened. At the same time, important changes in emphasis are occurring,
and programs established for temporary reasons in earlier years are
liquidating their operations as outstanding loans are repaid or privately
refinanced.
The analysis this year presents separate information on major credit
programs administered by seven cabinet departments and five other
agencies. Separate information is presented for the first time on the
military assistance credits of the Department of Defense. In addition, the 1965 estimates reflect: (a) enactment of legislation broadening credit aids for education by the Department of Health, Educa1
Report of the Committee on Federal Credit Programs to the President of the United States (Washington:
1963).

SPECIAL ANALYSES

373

tion, and Welfare and authorizing two new types of credit extension
by the Department of the Interior; (b) proposed legislation to authorize Federal insurance or guarantees of private credit to aid rural
housing, urban mass transportation, college students, and hospital
modernization; and (c) proposed legislation to authorize sales of
participations in pools of housing loans by the Housing and Home
Finance Agency and the Veterans Administration.
The analysis includes (in tables E-2 and E-3) the total amounts,
but no detailed information, on outstanding loans and guarantees
and on net expenditures for numerous smaller or relatively inactive
credit programs administered by seven departments and five other
agencies; these account for about 0.4% of outstanding direct and guaranteed loans. Loan programs of important quasi-public agencies are
excluded from tables E-l to E-5, but their outstanding loans are
shown in table E-6. The analysis excludes borrowing from the
Treasury 2by other Federal agencies, whether for loans or other
programs.
NEW COMMITMENTS

New commitments are the best single measure of the trends in most
Federal credit programs. They also give the best advance indication
of trends in the economic impact of these programs, since changes in
the level of new commitments usually precede corresponding changes
in the volume of loans disbursed by either public agencies or private
lenders and in the purchase of goods and services by the ultimate
borrowers.
In this analysis, commitments are defined as approvals by Federal
agencies of direct loans or of insurance or guarantees of private loans.
They are shown on a gross basis, including administrative reserva7
tions or other commitments which do not later result in actual credit
extensions, as well as the unguaranteed portions of loans partially
covered by Federal guarantees.
Direct loans.—New commitments of $7.9 billion estimated for
direct loans in 1965 are $1.1 billion higher than the actual commitments made in 1963. The largest increases expected are for loans to
foreign borrowers by the Export-Import Bank and for mortgage
purchases by the Federal National Mortgage Association. The
newly enacted legislation for college academic facility loans and other
increased educational loans by the Department of Health, Education,
and Welfare will cause commitments for these programs to more than
triple the actual 1963 level. The two most active international lending programs, the Export-Import Bank and the Agency for International Development, together will account for almost 40% of new
direct loan commitments in 1965.
Guarantees and insurance.—New commitments for guarantees and
insurance of private loans will continue to rise to an estimated $21.4
billion in 1965. About two-thirds of the total new commitments
and of the rise during the 2-year period will be in housing loans
insured by the Federal Housing Administration. The largest other increases are expected in guarantees of loans to foreign borrowers by
2
Supplementary material containing brief summaries of each of the major programs (including
the major quasi-public credit programs) with emphasis on current developments is available on
request from the Bureau of the Budget.

374

THE BUDGET FOR FISCAL YEAR 1965

Table E-l. NEW COMMITMENTS FOR MAJOR FEDERAL CREDIT PROGRAMS CLASSIFIED BY TYPE OF ASSISTANCE, MAJOR AGENCY OR
PROGRAM (in millions of dollars)
1963 actual
Agency or program

Guaranteed
and
insured
loans

Direct
loans

Department of Agriculture:
Commodity Credit Corporation
Rural Electrification Administration
Farmers Home Administration
Department of Commerce:
Area Redevelopment Administration
Maritime Administration
Department of Defense:
Defense production guarantees
Military assistance credits
Department of Health, Education, and
Welfare: Office of Education
Department of the Interior
Department of State:
Loans to United Nations
Agency for International Development..
Treasury Department: Loans to District
of Columbia
Housing and Home Finance Agency:
Office of the Administrator
Community Facilities Administration__
Urban Renewal Administration
Federal National Mortgage Association.
Federal Housing Administration
Public Housing Administration
Veterans Administration
Export-Import Bank of Washington
Interstate Commerce Commission
Small Business Administration
Total by type of assistance.
Grand total

1964 estimate

2,497

572
427
592

Direct
loans

"266

524
390
562

243
7

225
12

Guaranteed
and
insured
loans

2,285

208

1965 estimate

Direct
loans

436
385
456

Guaranteed
and
insured
loans

1,908

516

282
95

105

138

87
12

133
12

306
13

100
1,780

,740

1,889

225

702
124
177
292
131
417
680

668
170
400
247
110
427
1,119

742
200
710
222
120
371
1,228

13,206

368

280
11,930

648

325

2,879
850
53
57

6,747

19,475

26,222

110

565
12,511
804
2,666

1,010
18

324

7,201

20,341

27,542

7,8

75
678
852
2,450

1,324

21,432

29,312

I
the Export-Import Bank and of loans to finance the expanding urban
renewal program, and in insured loans by the Farmers Home Administration, largely because of the proposed new program to help finance
rural housing.
Overlapping commitments.—The total estimated commitments of
$29.3 billion include several cases where two or more types of Federal
assistance are provided for the same borrower, or on the same property a different stages in the financing process. For example,
all of tne $0.7 billion of commitments for mortgage purchases by the
Federal National Mortgage Association are for mortgages covered
by insurance or guarantees made by other Federal agencies. Commitments by the Public Housing Administration are likewise made
at more than one stage of the financing of local low-rent public
housing.

SPECIAL

OUTSTANDING

375

ANALYSES

DIRECT AND GUARANTEED

LOANS

The best index of the level of Federal credit programs over a period
of years is provided by the total outstanding direct and guaranteed
loans. By the close of 1965, these will total $121.7 billion for major
programs, and with numerous smaller programs, $122.1 billion.
Table E-2. OUTSTANDING DIRECT LOANS, AND GUARANTEED AND INSURED LOANS FOR MAJOR FEDERAL CREDIT PROGRAMS CLASSIFIED BY AGENCY OR PROGRAM (in millions of dollars)
1964 estimate

1963 actual
Agency or program
Direct

Guar-

Direct

insured
loans
Department of Agriculture:
Commodity Credit Corporation
Rural Electrification Administration
Farmers Home Administration._ _ __
Department of Commerce:
Area Redevelopment Administration
Maritime Administration
Department of Defense:
Defense production guarantees
Military assistance credits
Department of Health, Education, and
Welfare: Office of Education______ _ __
Department of the Interior: Reclamation
loans
Department of State:
Loans to United Nations _ _
Agency for International Development
_
_______
Treasury Department:
Loans to District of Columbia
Foreign loans
Housing and Home Finance Agency:
Community Facilities Administration
Urban Renewal Administration
Federal National Mortgage Association
Federal Housing Administration _ __
Public Housing Administration _ _ _ _
Veterans Administration
Export-Import Bank of Washington _ _ _
Interstate Commerce Commission.
Small Business Administration.
Total by type of assistance:
Major agencies or programs
Other agencies or programs
All agencies

1,768
3,694
1,551
25
126
12
185

834

Direct

insured
loans

474

1,730
3,911
1,775

419

100
108

139

Guar-

1965 estimate

16
214

905
653

1,309
4,129
1,833

484

201
90

128

113

112

107

105
3,873

130
3,784

42,447
4,387
30,055
1,336
161
89

1,974
147
2,421
634
37
1,583
2,773
15
941

29,113
346

81,435
26

29,459

81,461

1,680
129
2,883
633
94
1,630
3,296
15
817

166

1,038

558

563

7,469

1,114

107

419

1,062

18
272

296

6,121

Guaranteed
and
insured
loans

8,944

381

159
3,694

45,754
4,828
28,000
2,245
169
106

2,270
165
1,829
540
38
1,288
2,042
15
1,064

49,624
5,299
27,600
3,339
170
130

30,374
400

84,725
28

30,666
407

91,041
42

30,774

84,753

31,073

91,083

1,287

1,632

Outstanding direct loans will rise by more than $1.3 billion
during 1964 and another $0.3 billion during 1965. Loans to foreign
borrowers held by the Agency for International Development, the
Treasury Department and the Export-Import Bank, estimated at

376

THE BUDGET FOR FISCAL YEAR 1965

$14.7 billion on June 30, 1965, will account for 45% of all direct loans
of Federal agencies at that time. While the Treasury Department
and the Bank will reduce their portfolios during the 2-year period by
$1.4 billion, AID expects to have a $2.8 billion increase.
During the same 2 years increases in outstanding loans by the
Rural Electrification Administration and the Farmers Home Administration will be partly offset by the anticipated $459 million
reduction in the Commodity Credit Corporation portfolio. For
all other credit programs, the net reduction of $1.5 billion in loans
held by the Federal National Mortgage Association, the Veterans
Administration and the Federal Housing Administration—primarily
resulting from increased sales to private lenders—will roughly balance
the continuing expansion in the outstanding loans of the Community
Facilities Administration, the Department of Health, Education, and
Welfare, the Small Business Administration, the Area Redevelopment
Administration and other credit programs.
Guaranteed and insured loans outstanding are expected to go up
by $9.6 billion over the 2-year period. Mortgage and property
improvement loans insured by the Federal Housing Administration
will account for more than half of the total in 1965 and for two-ithirds
of the net; increase during the period. Other substantial increases
are estimated for the Export-Import Bank, the Agency for International Development, the Public Housing Administration, the Urban
Renewal Administration and the Farmers Home Administration. Outstanding guaranteed loans of the Veterans Administration will decline
by $2.5 billion, as more loans mature, or are prepaid, and fewer new
loans are made as veterans exhaust their eligibility for this type of
credit assistance.
The amounts shown include both the guaranteed and unguaranteed
portion of outstanding loans in order to give a clearer picture of the
economic impact of these programs and to tie in better with bankingstatistics. Thus, they do not indicate the estimated contingent
liability of the Federal Government. The major program for which
the contingent liability differs materially from the principal amount
of the loans is the veterans loan guarantee program; by the end of
1965, the Government's liability will be about $12.5 billion lower than
the outstanding amount of such guaranteed loans.
DISBURSEMENTS AND REPAYMENTS

Direct loans can have a major budgetary impact, since the difference
between disbursements and repayments represents net expenditures
or receipts. Federal guarantees and insurance of private loans, on
the other hand, ordinarily have only a minor effect on Federal expenditures, since they result primarily in expenditures by private financial
institutions. Net expenditures for Federal credit assistance, therefore, give only a partial picture of the economic impact of most of
these programs.
Net expenditures of all Government lending programs (with the
exception of loans from trust funds or by quasi-public agencies) are
included in the administrative budget totals. In most currently
active loan programs, collections are offset directly against expenditures. In the case of the Rural Electrification Administration,
collections on loans are deposited to miscellaneous receipts, but

377

SPECIAL ANALYSES

legislation is proposed to put this program on a revolving fund basis
beginning in 1964. In the case of foreign loans, disbursements and
repayments in foreign currencies are included in the analysis, though
they are not included in budget expenditures and receipts. Also
included is sales credit extended to buyers of federally owned assets,
even when no budget expenditures are involved.
Table E-3. DISBURSEMENTS AND REPAYMENTS FOR MAJOR FEDERAL
CREDIT PROGRAMS CLASSIFIED BY AGENCY OR PROGRAM
(In millions of dollars)
1963 actual
Agency or program

Department of Agriculture:
Commodity Credit Corporation
Rural Electrification Administration
Farmers Home Administration
Department of Commerce:
Area Redevelopment Administration
Maritime Administration
Department of Defense:
Defense production guarantees
Military assistance credits
Department of Health, Education, and
Welfare: Office of Education
Department of the Interio r
Department of State:
Loans to United Nations
Agency for International DevelopmentTreasury Department:
Loans to District of Columbia
Foreign loans
Housing and Home Finance Agency:
Community Facilities Administration
Urban Renewal Administration
Federal National Mortgage Association.
Federal Housing Administration
Public Housing Administration
Veterans Administration
Export-Import Bank of Washington
Small Business Administration
Total.
Net addition to loans:
Major agencies or programs
Other agencies or programs
Adjustment for repayments going directly
into miscellaneous receipts
Adjustment for net extensions of sales
credit, deduct
Adjustment for net expenditures in foreign
currencies, deduct-

1964 estimate

1965 estimate

Disbursements

Repayments

Disbursements

Repayments

Disbursements

Repayments

3,137
332
760

2,704
162
495

2,738
377
762

2,764
160
533

2,187
383
826

2,607
165
761

24
12

76
7

2
25

107

6
18

15
56

11
52

14
105

9
77

3
138

123
15

1
*

144
15

1
*

91
14
72
1,438

2
482

4
1,507

2
159

1,600

2
125

3
84

2
91

369
143
137
292
379
405
508
293

28
156
576
187
382
576
780
166

387
161
125
247
384
434
668
310

94
143
584
197
441
479
1,191
186

412
207
305
222
399
377
720
326

114
189
896
271
399
670
,452
203

8,513

6,862

,480

7,147

8,404

8,052

1,651
-68

1,333
60

623

259

280

262

251

380

352
4
200
264
390

Total administrative budget expenditures l
"'Less than one-half million dollars.
See special analysis D, p. 359.

1,675

1,010

378

THE BUDGET FOR FISCAL YEAR

1965

Gross loan disbursements of major credit programs are expected
to decline slightly from the 1963 level in both 1964 and 1965. However, repayments will rise sharply in both years from $6.9 billion in
1963 to an estimated $8.1 billion in 1965. As a result, the net expenditures of over $1.6 billion in 1963 will be reduced to less than
$0.4 billion in 1965. After adding in net expenditures for other
credit programs and adjusting for repayments going directly to
miscellaneous receipts, for loans in foreign currencies and for sales
credit extensions involving no budget expenditures, receipts will
exceed budget expenditures for loans in 1965 by an estimated $98
million.
The sharply reduced net impact on the budget anticipated in 1965
arises mainly from the considerable fall now expected in disbursements
on Commodity Credit Corporation loans from the unusually high
1963 levels, together with increased substitution of private for public
credit, primarily by the Export-Import Bank, the Federal National
Mortgage Association and the Farmers Home Administration.
PRIVATE PARTICIPATION IN CREDIT PROGRAMS

The relative importance of public and private credit varies greatly,
for different types of credit. Direct loans outstanding to domestic
private borrowers amounted to 2.2% of the estimated private debt
of $716 billion outstanding on June 30, 1963. Private loans partly
or wholly guaranteed by Federal agencies comprised 11.2% of the
total private debt on that date. Federal participation was much
higher in agricultural and housing credit; on the other hand, direct or
guaranteed loans provided only a fraction of 1% of the total credit
otherwise used by private businesses.
As a general rule, Federal credit programs endeavor to maximize
private participation. Federal guarantees and insurance of private
credit account for almost three-quarters of all new commitments of
Federal credit programs and for about the same proportion of outstanding Federal credit assistance. Excluding loans to foreign
borrowers, the predominance of guaranteed and insured loans is even
greater.
Emphasis upon private participation is reflected both in the basic
statutes and in the administrative policies of the major credit programs. Often direct loans are prohibited except when the borrower
cannot otherwise obtain the funds from other sources on reasonable
terms. In two major programs (the Public Housing Administration
and the Urban Renewal Administration) the direct loans made are
customarily refinanced in whole or in part by private loans guaranteed
by the Federal agency. In four other programs (college housing and
public facility loans made by the Community Facilities Administration, business loans by the Small Business Administration, and foreign
loans by the Export-Import Bank), administrative policies emphasize
joint participations between private lenders and the Government
lending agencies. In the first two programs, the borrowers are required to advertise all offerings of their obligations publicly and the
Community Facilities Administration purchases only those which
private lenders are unwilling to buy at predetermined interest rates.

379

SPECIAL ANALYSES

Table E-4. SALES OF LOANS TO NONFEDERAL BUYERS AND OTHER
REPAYMENTS FOR MAJOR FEDERAL CREDIT PROGRAMS CLASSIFIED BY AGENCY OR PROGRAM (in millions of dollars)
1964 estimate

1963 actual
Agency or program

Housing and Home Finance Agency:
Community Facilities Administration:
College housing loans
_
Public facility loans
Other
Federal National Mortgage Association:
Special assistance functions
Management and liquidating functions
Proposed pool participations
Federal Housing Administration
Public Housing Administration
Veterans Administration:
Direct loans
Loan guarantee revolving fund
Proposed pool participations
Export-Import Bank of Washington
Small Business Administration
All other major credit programs
^
Total

1965 estimate

Other

merits

ments

18
1
7

50
10

22
1
10

50
25

26
2
10

293

129

348

141

119

167
200

119

155
382

197
388

181
279

80
35

150
222

70
37

336
5

444
161
4,167

703
7

488
179
3,976

1,142

5,720

1,593

5,554

271
399
200
263
100
909
12
2,274

67
40
543
191
4,048
5,778

In the past year, a Government-wide effort has been made to sell
existing loans from the portfolios of Federal agencies to private
lenders and to encourage private refinancing. During fiscal 1963
over $1.1 billion of such sales were consummated, considerably above
sales in any previous year. In 1964 and 1965, these sales are estimated to increase to $1.6 billion and $2.3 billion respectively. These
figures exclude not only regular amortization and prepayments of
principal, but also sales made as part of the usual process of guaranteeing or insuring loans and sales from one Government agency to
another agency.
The salable portions of the loan portfolios are concentrated
mainly in the Export-Import Bank and in the various mortgage and
other housing loans. Most of the loans held by other Federal credit
programs have interest rates, maturities, or other terms which make
them currently unattractive to private lenders except at sacrifice
prices. Legislation is being proposed to authorize sales of certificates
of participations in pools of loans owned by the Federal National
Mortgage Association and the Veterans Administration.

380

THE BUDGET FOR FISCAL YEAR

1965

INTEREST RATES AND MATURITIES

Two of the major ways in which Federal credit programs help
achieve program objectives are by providing more favorable interest
rates or maturities than many borrowers can obtain from other
sources. Table E-5 summarizes the current range of interest rates
charged by the various major credit programs on direct loans (or prevailing on insured or guaranteed loans) and the customary maturities
for both direct and insured and guaranteed loans. These terms are
on newly committed loans by currently active programs, and do not
necessarily correspond to those on previously outstanding loans, or on
loans covered by commitments made in earlier years.
Table E-5. INTEREST RATES AND MATURITIES FOR MAJOR ACTIVE
CREDIT PROGRAMS CLASSIFIED BY AGENCY OR PROGRAM,
DECEMBER 1963
Direct loans
Agency or program
Interest
rate
(percent)

Department of Agriculture:
Commodity Credit Corporation
Rural Electrification Administration
Farmers Home Administration
Department of Commerce:
Area Redevelopment Administration
Maritime Administration
Department of Defense:
Defense production guarantees
Military assistance credits
Department of Health, Education, and Welfare: Office of
Education
Department of the Interior: Bureau of Reclamation
Department of State:
Loans to United Nations
Agency for International Development
Treasury Department: Loans to District of Columbia
Housing and Home Finance Agency:
Community Facilities Administration
Urban Renewal Administration
Federal National Mortgage. Association
Federal Housing Administration
Public Housing Administration
_.
Veterans Administration
Export-Import Bank of Washington
Interstate Commerce Commission
Small Business Administration
1
2

insured loans

Maturity
(years)

2
3-5

/ 2 -4
5-35
1-50

3/8-4
6

10-40
17-20

0-4

3-10

Interest

Maturity
(years)

(percent)

33-50
4.15-5

17-20

/ 2 -2

3-4H 2 11-50
20-50
0-4
2
4

0-3/ 8
3/8-6
4

5/!-6
3-5/

25
3-40
30
1-50
Demand
10-40
30-35
4

30
1/2-20
3-25

/ 2 -36

W2-W4
3

3/8-6
2-3.2
5M
5/2-^
/2

5-8 2

5-40
/ 4 -40
30
/ 2 -5
1-15
3-25

When commodity loan is repaid by forfeiting collateral, no interest is charged.
On student loans, maturities begin when student leaves school and exclude periods of military
or 3 Peace Corps service.
In addition, property improvement loans are insured for $4 to $5 discount per year (equivalent
to over 8% simple interest), and with maturities of 6 months to 7 years.

SPECIAL ANALYSES

381

Interest rates charged on direct loans vary greatly both among
the various Federal credit agencies and sometimes among the various
types of loans made by a single agency. Many of the differences in
rates reflect mainly differences in the cost of providing the loan,
including the cost of borrowing the necessary funds, of administering
the varying types of loans and of incurring the varying degrees of
risk of probable loss. In many cases, the rate charged is governed
by statutory limits or formulas. These sometimes are intended to
assure loans at rates below those prevailing in the private market or
below the cost to the Government, in order to provide special assistance to particular groups of borrowers as a method of accomplishing
Federal program objectives. In some cases, the rates charged reflect
mainly Government borrowing costs in earlier periods, rather than
current market yields of Government obligations.
Interest rates charged on insured and guaranteed loans tend to
correspond more closely to market rates of interest on comparable
loans by private lenders—allowing for the reduction or removal of
the normal private credit risk. In a few cases, interest rates on insured
loans are deliberately set below the market rate and a secondary
market provided to assure the willingness of the private lender to
make the initial loans; for example, the Federal Housing Administration was authorized in the Housing Act of 1961 to insure certain
types of loans to finance moderate-income housing at rates well below
those prevailing in the private market and the Federal National
Mortgage Association purchases all of such mortgages.
Maturities, both on direct and on insured or guaranteed loans, often
are substantially more liberal than on private loans of similar types.
Private lenders are often limited by law or supervisory policy to
shorter maturities. When a Federal agency insures or guarantees the
loans, however, these limitations customarily do not apply. When
borrowers are acquiring assets yielding income or tangible benefits over
a long period of years, long-term loans reduce periodic installments
and make it possible for borrowers to undertake such acquisitions with
reasonable assurance of repayment.
QUASI-PUBLIC CREDIT PROGRAMS

The Federal Government also has certain responsibilities for the
credit programs of mixed-ownership corporations and other public
agencies operating in whole or in part with private funds. Table E-6
summarizes the outstanding loans for eight institutions or groups of
institutions of this type which have important lending operations.
Outstanding loans of the five groups of mixed-ownership enterprises
and trust funds for which estimates of future fiscal years as well as
actual data on the past years are available will increase from a total
of $5.7 billion in 1963 to an estimated $6.4 billion by the end of the
fiscal year 1965. Most of the anticipated increase is in the operations
of the Federal intermediate credit banks.

382

THE BUDGET FOR FISCAL YEAR 1965

Table E-6. OUTSTANDING LOANS FOR MAJOR QUASI-PUBLIC CREDIT
PROGRAMS CLASSIFIED BY AGENCY AND PROGRAM (in millions of dollars)
d

Agency

f fi

1962
actual

1963
actual

1964
estimate

1965
estimate

692
1,998

701
2,293

761
2,300

790
2,800

2,871

2,138

2,058

2,213

418
102

463
98

508
94

548
91

6,081

5,693

5,721

6,442

2,968
2,767

3,198
3,270

4,500

136

139

5,871

6,607

11,952

12,300

Mixed ownership enterprises and trust funds:

Farm Credit Administration:
Banks for cooperatives
_
Federal intermediate credit banks
__ __
Housing and Home Finance Agency: Federal National
Mortgage Association (Secondary market operations
trust fund)
Veterans Administration:
National service life insurance fund. _
U.S. Government life insurance fund
__
Subtotal, mixed ownership and trust funds
Other quasi-public credit programs:

Farm Credit Administration: Federal land banks
Federal Home Loan Bank Board: Federal home loan banks.
Federal Reserve, Board of Governors: Federal Reserve
banks
Subtotal, other quasi-public credit programs
Total

0)
0)

4,400

i Estimates are not available (or 1964 and 1965.

The three other groups of institutions, which are privately owned,
increased their outstanding loans from $5.9 billion at the end of 1962
to $6.6 billion on June 30, 1963, primarily because of the $0.5 billion
increase in advances by the Federal home loan banks during 1963.
This increase has accelerated during 1964, but is not expected to
continue in 1965. No data are available on the expected trends in
loans by the Federal land banks or in discounts and advances by the
Federal Reserve banks.

SPECIAL ANALYSIS F

FEDERAL ACTIVITIES IN PUBLIC WORKS

Many types of public works are needed by the Federal Government
to carry out its program responsibilities. In some cases the structures
are built by the Federal Government, usually under contract with
private enterprise; in other cases, Federal financial assistance in the
form of grants or loans is provided to State and local authorities for
public facilities needed in the national interest.
Construction undertaken directly by the Federal agencies involve?
facilities ranging from large water resources developments, spac(
facilities, office buildings, and defense installations to small recreational facilities, warehouses, and border facilities. Federal grants or
loans are provided for highways, hospitals, waste treatment works,
educational facilities, sewage systems, and many other types of
community facilities.
Direct Federal construction currently constitutes about 22% of
the total public construction in the United States. State and local
public works benefiting from Federal grants represent another 24%,
two-thirds of which is financed from Federal funds. Federal costsharing, which depends upon program objectives and provisions of
law, varies substantially among the grant programs.
In 1965, Federal expenditures for public works are estimated to
reach $8.7 billion, an increase of $228 million over the 1964 level.
This total is more than double the level of 10 years ago. Part
of this dollar increase results from increased construction costs,
which are now about 15% above 1956. The increase in public works
Table F-1. FEDERAL EXPENDITURES FOR PUBLIC WORKS,
FISCAL YEARS 1956-65 (in millions of dollars)
From budget accounts and trust funds

Year

1956
1957
1958
1959
1960
1961
1962
1963
1964 estimate
1965 estimate

Total,
civil and
defense
public
works

4,103
4,492
5,070
6,684
6,846
6,823
6,938
7,196
8,507
8,735

Civil public works

Total

1,784
2,243
3,106
4,535
5,011
4,925
5,310
5,790
6,962
7,213

Federal
construction

869
1,076
1,254
1,521
1,643
1,878
2,085
2,321
2,764
2,840

Grants

889
1,103
1,735
2,871
3,211
2,897
3,018
3,280
4,066
4,188

National
defense
public
works

Loans
(net)

26
65
117
143
156
149
207
190
133
186

2,319
2,249
,964
2,150
1,835
1,898
1,627
1,405
1,545
1,521

Note.—In this and the following tables, nonconstruction costs are excluded; proposed legislation
is included for the years 1964 and 1965. Details may not add because of rounding.

383

384

THE BUDGET FOR FISCAL YEAR

1965

expenditures, however, results mainly from the needs of a growing
population and the investments required for economic growth. In
many cases, these Federal public works will stimulate related private
and State and local developments.
Table F-2. EXPENDITURES AND 1965 NEW AUTHORIZATIONS FOR CIVIL
PUBLIC WORKS, BY AGENCY (in millions of dollars)
From budget accounts and trust funds

IExpenditure*
1963
actual

Federal construction:
Legislative branch
Public works accelerationForest Service
Corps of Engineers—Civil
Bureau of Reclamation
_
_
__
Bureau of Indian Affairs _ _
National Park Service
__
Post Office Department
.__ _._ _ _
Federal Aviation Agency
_
General Services Administration
National Aeronautics and Space Administration
Veterans Administration
__
Tennessee Valley Authority
Other
Total, Federal construction
Grants to State and local governments:
Public works acceleration- _
Soil Conservation Service
Area Redevelopment Administration. _
Bureau of Public Roads
Office of Education.
_____
__
Public Health Service
Federal Aviation Agency
„
Housing and Home Finance Agency
District of Columbia
Other

Total, grants.
Loans to State and local governments, net:
Area Redevelopment Administration
Bureau of Reclamation
Housing and Home Finance Agency
District of Columbia
Other
Total, loans

Civil public works:
Budget accounts __
Trustfunds
Total, civil public works

1964

New
authorizations
1965

1965

24
47
64
875
271
65
61
34
129
158
225
66
135
165

23
104
94
886
256
57
61
33
107
185
475
75
172
233

33
2
91
922
239
65
62
46
99
217
520
86
172
286

934
245
69
59
10
74
258
281
102
35
334

2,321

2,764

2,840

2,556

107

227

214

20
3
2,980
53
124
51

19
10
3,494
50
154
75

18
11
3,581

5
29

12
24

158
76
10
30
18

69
35
3,725
350
279
75
75
30
22

3,280

4,066

4,188

4,665

3
14
146
25
2

11
15
54
36
17

16
14
103
31
21

34
13
147
14
117

190

133

186

326

2,817
2,973

3,466
3,496

3,647
3,566

3,829
3,718

5,790

6,962

7,213

7,547

SPECIAL ANALYSES

385

Approximately four-fifths of the $8.7 billion to be spent in 1965 will
be for civil public works; the remainder will be for military public
works and atomic energy facilities.
Direct Federal public works activities, which are scattered throughout the States and territories, are roughly estimated to provide 457,000
man-years of employment, onsite and offsite, in 1965. Construction
aided by Federal grants, including the State or local share of the
costs, will provide an estimated additional 653,000 man-years of labor.
The Federal Government also provides financial assistance for nonprofit and private capital facilities through loans, loan guarantees,
tax concessions and lease contracts, and indirectly supports through
procurement contracts the provision of some private facilities which
produce only materials to meet Government requirements, such as
missiles, space components, and helium conservation. These activities, however, are not within the scope of this analysis.
CIVIL PUBLIC WOKKS

Civil public works expenditures of $7.2 billion in 1965 are estimated
to be $251 million above the 1964 estimate. Expenditures for direct
Federal public works in 1965, estimated at $2.8 billion, make up
39% of this total. The largest increases in direct Federal construction for 1965 include $45 million by the National Aeronautics and
Space Administration, $36 million by the Corps of Engineers—Civil,
and $32 million by the General Services Administration. Under the
public works acceleration program, initiated in 1963 to relieve unemployment, expenditures for direct Federal work will decrease by $103
million between 1964 and 1965.
The $4.2 billion of grants for State and local public works make
up 58% of total civil works expenditures. Slightly more than $3.5
billion of this total consists of grants for the Federal-aid highway
programs financed from the Highway trust fund. Federal aid for the
primary, secondary, and urban highways is on a 50-50 matching basis ;
for the National System of Interstate and Defense Highways it is 90%.
Significant amounts of local public construction receive Federal
financial assistance through loans. The $103 million of expenditures
for loans by the Housing and Home Finance Agency make up 56% of
the total loan expenditures. Since expenditures on the various loan
programs are included in the budget totals on a net basis (i.e., expenditures for new loans are generally offset by repayments of loans
made in prior years), the totals do not reflect the amount of construction aid provided from loans. New loans by the Housing and Home
Finance Agency are estimated at $322 million in 1965.
New and continuing work.—About $2.6 billion of the $2.8 billion of
expenditures for direct Federal civil public works in 1965 will be to
continue or complete construction of projects started prior to 1965.
Completion of these projects is estimated to require expenditures of
$9.3 billion after 1965.
New Federal projects to be started with funds'recommended in the
budget will require an estimated $191 million of expenditures in
1965, and will commit the Government to additional expenditures after
1965 of an estimated $1.8 billion. In the water resources field, the
700-000 0—64

<25

386

THE BUDGET FOR FISCAL YEAR 196 5

Table F-3. ESTIMATED COST OF 1965 DIRECT FEDERAL CIVIL PUBLIC
WORKS BY CONTINUING AND NEW WORK (in millions of dollars)
From budget accounts and trust funds
Agency or program

Continuing work:
Corps of Engineers—Civil. _
National Aeronautics and Space Administration. __
Bureau of Reclamation
_
General Services Administration
Tennessee Valley Authority
Veterans Administration
Forest Service
Federal Aviation Agency
National Park Service
Bureau of Indian Affairs..
Post Office Department
Bonneville Power Administration
Public Health Service
_.
Public works acceleration
Trust funds
Other
Total, continuing work
New projects and features in 1965:
Federal Aviation Agency
Corps of Engineers—Civil
Government Printing Office
Tennessee Valley Authority
__
National Aeronautics and Space Administration
General Services Administration
Veterans Administration
Bonneville Power Administration
_
Bureau of Indian Affairs
Bureau of Reclamation
Other
Total, new projects and features
Advance planning:
General Services Administration *
Corps of Engineers—Civil
-- National Aeronautics and Space Administration. __
Tennessee Valley Authority
.
Bureau of Reclamation
National Park Service
Other
Total, advance planning
Total, direct civil public works

Required
to complete

Total
estimated
Federal
cost

Cumulative to
June 30,
1964

1965
estimated
expenditures

13,849
2,006
5,041
786
897
347

8,884
903
2,866
248
475
154

866
493
232
183
154
78

606

514

372
1,155
676
168
199
99
153
25
1,128

108
376
111
10
30
15
151

73
60
60
45
11
21
2
25

191
719
339
113

631

179

318

27,507

15,642

2,572

9,293

75
378
47
39
266
589

69
188
43
120
207

26
16
16
14
12
8

4,099
610
1,943
355
268
115

142
63

49
354
31

25
254
581

6
5
5
4
79

63
183
38
116
125

2,021

191

1,819

191

63
27
19
35

23
5
1
27

20
15
4
2

86
20

22
21

9
4

1
9

6
12
8

378

148

153

29,906

15,801

2,840

11,265

7
14

*$500 thousand or less.
Includes some sites as well as planning costs.

Corps of Engineers will start 34 new projects and the Bureau of Reclamation will start 7 new projects. The 1965 budget includes appropriations of $266 million to finance new facilities to be constructed

SPECIAL ANALYSES

387

by the National Aeronautical and Space Administration, ranging from
research and plant-support facilities to large launch and test facilities.
Among the other new starts are public buildings by the General Services
Administration, hospitals by the Veterans Administration, a U.S.
mint in Philadelphia by the Treasury Department, the National
Agricultural Library by the Department of Agriculture, and environmental health facilities by the Public Health Service. Table F-3
shows the total costs of new Federal project starts, as well as the
estimated expenditures in 1965 and later years.
In addition to the new direct Federal works to be started, several
new programs have been authorized recently or are recommended for
which Federal grants, and in some cases Federal loans, will be made
to State and local groups to meet the Nation's needs for higher education facilities; vocational, research, and training facilities; classrooms
for elementary and secondary schools; libraries; community health
centers; and research facilities on mental retardation. Also, the
Soil Conservation Service will aid in the construction of 36 new
watershed projects, and the Bureau of Reclamation will make loans
to local groups for 3 small reclamation projects.
Public works planning and surveys.—The 1965 budget includes
expenditures of $77 million for advance planning of new Federal
projects, including acquisition of sites by the General Services Administration for public buildings. To encourage preparation and maintenance of a current and adequate reserve of local public works and to
promote economy and efficiency in building such works, the Housing
and Home Finance Agency will make planning advances of $14
million in 1965 to States, municipalities, and other public agencies.
Significant amounts will also be spent for preliminary surveys and
general investigations to assure economic design and construction of
new Federal projects. The 1965 budget recommendations for water
resource activities continue on a coordinated basis the comprehensive
river basin planning by the major Federal agencies concerned. These
studies provide long-range economic, hydrologic, and land-use projections for the various river basins, and serve as a basis for planning
individual water resource projects to be undertaken in later years.
Expenditures of about $8 million will be made for this purpose in
1965 by the Departments of the Army, Interior, Agriculture, and
Health, Education, and Welfare. Expenditures for these activities
are not included in the public works expenditures in this analysis.
Authorized reserve of direct Federal public works.—Table F-4 summarizes the $13 billion reserve of Federal projects which have been
authorized by substantive legislation. Such projects require only
financing and planning for starting. This reserve provides a basis
for a wise selection of projects for advance planning and for starting
in accordance with program needs and budgetary policy.

388

THE BUDGET FOR FISCAL YEAR

1965

Table F-4. RESERVE OF PRESENTLY AUTHORIZED PROJECTS AND
PROGRAMS FOR UNDERTAKING AFTER 1965 (in billions of dollars)
Cost of authorized reserve

Agency

Corps of Engineers—Civil
Bureau of Reclamation
Forest Service
Tennessee Valley Authority
Bureau of Land Management
Federal Aviation Agency
General Services Administration.
Other agencies
Total

Estimated
total
Federal
cost

5.1
2.7
1.7

Status of plans as of
June 30, 1964
Contract
could
be let

1.1
.6
.2

0)
0)
()

0)
13.2

2.2

In
process

Not
started

2.4
.7
1.4
.7

1.6
1.4

Status of plans as of
June 30. 1965
Contract
could
be let

1.9
.7
.2
.2

2.0
.6

Not

1.3
1.4

1.4
1.0

.1
.6
.1

0)
'.3
.1

5.9

'.2
.1

5.1

3.5

)
.4

5.8

3.9

i $50 million or less.

Civil public works by function.—Federal programs are classified in
the budget by major functional categories. Table F-7 groups the
public works activities according to these functions. Some of these
functional areas require very large investments in public works; others
require few public works.
About 57% of the $7.2 billion of civil public works expenditures in
1965 will be spent for public works under the commerce and transportation function. Major expenditures include the grants for highways, airports, and public works acceleration, and direct Federal
expenditures for air navigation facilities and modernization of post
offices.
The public works acceleration program was enacted in September
1962 to accelerate Federal, State, and local public works, both to
provide immediate employment opportunities and to meet longstanding needs for such facilities. Only projects located in redevelopment
areas or in areas suffering from substantial unemployment which are
capable of substantial completion within a year after initiation are
eligible for aid. Appropriations for the program are allocated by
the President upon recommendation of the Secretary of Commerce.
Like the activities of the Area Kedevelopment Administration, the
program is classified in the commerce and transportation function.
However, funds are allocated, to various Federal agencies, whose
regular activities are classified in other functions. Table F-5 provides information on the agencies participating in the program. As
of November 1, 1963, 7,021 projects had been approved. These
projects will generate an estimated 1,120,000 man-months of onsite
employment.

389

SPECIAL ANALYSES

Table F-5. PUBLIC WORKS ACCELERATION PROGRAM (in millions of dollars)

Agency

Housing and Home Finance Agency (grants)
Public Health Service (grants) 1
Department of Agriculture
Corps of Engineers—Civil
Department of the Interior
Department of Commerce
Department of Justice
Post Office Department
General Services Administration
Other agencies
Unallocated (1965)
Lapsed appropriations
Total

Estimated
)bligaticns
(allocations)

481.0
231.0
62.8

10.5
64.2

19.6
1.8
2.9
2.7
1.5

Expenditures
1963
actual

13.0
1.0
23.6
4.4
17.7
1.6
.2
.2
.3
.5

5.0
2.0
885.0

62.5

1964

1965

173.6
81.0
38.2
6.1
42.4
16.0
1.6
2.7
2.4
1.0

156.0
77.0
1.0

365.0

245.0

4.0
2.0

5.0

i Includes grants of $0.9, $33.8, and $29.5 million in 1963, 1964, and 1965, respectively, for nonprofit private hospitals which are not classified as public works.

The largest share of the direct Federal civil construction expenditures in 1965 will be for development of natural resources. Of the
$1.7 billion of expenditures for the natural resources programs in
1965, $1.4 billion will be water resources and related power development. In addition, there will be expenditures for the construction of roads, recreational facilities, facilities for fish and. wildlife
programs, and other facilities including an estimated $40 million for
construction of school facilities for Indian children.
Table F-6 brings together the total budget expenditures for all
water resources development, including programs carried on under the
agriculture and health, labor, and welfare functions as well as the
natural resources function.
To implement the new education programs recently enacted or
recommended, the budget includes new obligational authority $146
million in 1964 and $402 million in 1965 for assistance to State and
local governments in the construction of higher education facilities
(including public community colleges and technical institutes), residential schools for vocational education, school classrooms, and public
libraries. Also, new programs for health, labor, and welfare will result
in construction of additional facilities. Expenditures by the Department of Labor under proposed youth employment legislation are
estimated at $31 million in 1965 for renovating existing facilities and
constructing new camps for youth in the conservation corps.

390

T H E BUDGET FOR FISCAL YEAR

1965

Table F-6. BUDGET EXPENDITURES FOR WATER RESOURCES AND
RELATED DEVELOPMENTS (in millions of dollars)
1963
actual

Type

Flood control works:
Corps of Engineers—Civil
Grants
Bureau of Reclamation
_
_
Soil Conservation Service (mostly grants)
International Boundary and Water Commission
Tennessee Valley Authority

1964

1965

351.3
17.0
1.2
54.0
.7
2.6

370.2
8.4
5.1
51.5
2.1
4.1

393.0
12.4
9.6
52.1
1.9
4.6

426.8

441.4

473.6

1.3

2.1

71.7
14.4
3.5
4.0

61.3
14.9
4.5
5.8

59.7
14.5
5.8
7.8

93.6

86.5

87.8

227.4
1.4
7.6

234.6
1.0
9.6

261.2
1.5
6.4

236.4

245.2

269.1

Multiple-purpose dams and reservoirs with hydroelectric power
facilities:
Bureau of Reclamation
Corps of Engineers—Civil
__ __
International Boundary and Water Commission
Tennessee Valley Authority
_

150.4
272.9
10.3
13.0

132.8
246.8
10.5
7.5

131.3
246.0
12.8
9.8

Total, multiple-purpose facilities
Steam-electric powerplants: Tennessee Valley Authority

446.6
74.8

397.6
91.9

399.9
69.0

Power transmission facilities:
Tennessee Valley Authority
Bureau of Reclamation
Bonneville Power Administration
Southwestern Power Administration

30.2
47.2
15.2
1.2

43.4
56.2
24.7
4.2

65.1
38.2
32.7
5.9

Total, power transmission facilities
Waste treatment facilities: Public Health Service, grants

93.8
51.7

128.5
75.0

141.9
75.0

1,425.0

1,466.9

1,518.4

Total, flood control works
Beach erosion control: Corps of Engineers—Civil
Irrigation and water conservation works:
Bureau of Reclamation
Loan and grant program __
_
Soil Conservation Service (mostly grants)
Bureau of Indian Affairs
Total, irrigation works

Navigation facilities:
Corps of Engineers—Civil
Saint Lawrence Seaway Development Corporation
Tennessee Valley Authority
Total, navigation facilities

Total, water resources and related developments

NATIONAL DEFENSE PUBLIC WORKS

Department of Defense—Military.—The military public works program includes overseas and domestic construction to support Army,
Navy, Air Force, Reserve, and National Guard activities. The proposed projects are part of the 5-year force structure and financial plan
to strengthen and modernize the Armed Forces of the United States.
The construction projects include operational and training facilities,
maintenance facilities, research and development facilities, logistic

391

SPECIAL ANALYSES

facilities, medical facilities, troop housing and other personnel facilities, utilities and ground improvements, and land acquisitions.
Facilities are to be constructed for one additional hardened Minuteman squadron, and funds are included for improvements to previously
authorized Minuteman and Titan missile sites. Projects for the
Polaris missile system will contribute to the operational readiness of
the system and the proficiency of its crews. Relocation of a portion
of the Nike-Hercules air defense missile system is proposed as well as
additional work to provide the system with protection against radiation fallout. About 22% of the direct military construction program
is related to the general purpose or tactical forces of the Army, Navy,
Marine Corps, and Air Force. Approximately 10% of the* program is
to provide facilities in support of research and development.
The family housing program for 1965 proposes the construction of
an additional 12,500 units as well as numerous improvements to existing units.
Atomic Energy Commission.—Public works expenditures during
1965 by the Atomic Energy Commission are primarily for continuation of work on major production plants and on research and development installations previously authorized. New projects proposed
for 1965 include modifications and additions to existing production
plants, and additional facilities for weapons production and development, reactor development, and research in the physical and biomedical sciences.
Table F-7. FEDERAL ACTIVITIES IN PUBLIC WORKS (in millions of dollars)
By major function and agency
NEW AUTHORIZATIONS

EXPENDITURES

1963
1964
1965
enacted estimate estimate

CIVIL PUBLIC WORKS
International Affairs and Finance

Department of State:
State Department and Foreign Service
buildings.
Cultural and Technical Interchange
Center, Hawaii (grant)
United States Information Agency: Radio
facilities

14.7

10.6

Total, international affairs and
finance

17.3

743.6

1.1

2.3

4.4

2.7

1.1

13.1

13.7

12.6

13.2

17.3

24.9

18.7

18.1

19.2

673.5

281.0

225.3

475.0

520.0

6.7

11.7

1.5

6.0

Space Research and Technology

National Aeronautics and Space Administration:
Research and space flight facilities

392

THE BUDGET FOR FISCAL YEAR 1965
Table F-7. FEDERAL ACTIVITIES IN PUBLIC WORKS
(in millions of dollars)—Continued
By major function and agency

EXPENDITURES

NEW AUTHORIZATIONS
1963
enacted

1964

1963

1965

1964

1965

CIVIL PUBLIC WORKS—Continued
Agriculture and Agricultural
Resources
Department of Agriculture:
Laboratories, research facilities, and
library
Soil Conservation Service: Flood prevention, watershed protection, and
other:
Direct work
_ __
Grants
_
Loans
_
Farmers Home Administration: Rural
renewal loans
Total, agriculture and agricultural
resources.-

2.8

9.4

5.0

3.9

.8
68.5
4.0

.8
71.0
4.7

.8
69.3
6.2

1.0
19.9
1.9

1.0
18.8
6.1

.9
17.6
7.6

1.0

1.8

1.0

1.8

77.9

87.5

27.9

30.7

31.9

102.1
2.0

105.0
2.0

61.8
2.0

91.8
2.0

88.9
2.0

873.0
21.0
8.4

915.4
18.8
12.4

852.9
22.2
17.0

852.4
34.0
8.4

902.2
20.0
12.4

3.3

1.7

1.4

34.2
3.0

43.1
2.8

15.8
1.2

25.2
4.2

33.2
5.8

U.4

9.2

6.9

7.0

7.8

76.2

69.2

64.6

57.5

65.3

283.5
12.

245.1
13.4

255.8
14.7

?.o

271.0
14.3
.1
.1

238.8
14.5
(2)
1.0

4.4
(2)
8.0

2.3
10.6

2.4
.4
7.3

58.9
1.8

58.8
2.

61.4
.4

76.1

Natural Resources

Department of Agriculture:
Forest Service:
Roads and research, recreational and
protective facilities
102.7
Trust funds
_
2.0
Department of Defense—Civil:
Corps of Engineers—Civil: Flood control, navigation, and multiple829.2
purpose projects with power _
27.6
Trust funds
17.0
Grants
Department of the Interior:
Office of Saline Water: Demonstration
plants
Power transmission facilities:
29.4
Bonneville Power Administration 1
7.2
Southwestern Power Administration..
Bureau of Land Management: Roads
9.4
and other facilities
Bureau of Indian Affairs: Irrigation
69.7
works, roads, and schools
Bureau of Reclamation:
Irrigation and multiple-purpose proj. 275.9
ects with power l
_
12.0
Loans, small irrigation projects
Grants, small irrigation projects
Geological Survey: Laboratories
-_
Bureau of Mines:
Laboratories and other structures
Anthracite mine drainage grants

Fish and Wildlife Service: Facilities. _ __
National Park Service: Parkways,
roads, buildings, and utilities
Trust funds
See footnotes at end of table.

(

12.

6.6

6.7

75.

68.4

59.4

393

SPECIAL ANALYSES
Table F-7. FEDERAL ACTIVITIES IN PUBLIC WORKS
(in millions of dollars) —Continued
By major function and agency
NEW AUTHORIZATIONS
1963

1964

1965

EXPENDITURES

1963

1964

1965

CIVIL PUBLIC WORKS—Continued
Natural Resources—Continued

Department
of State: International
Boundary and Water Commission:
Water resources projects
Restoration of salmon runs, Fraser River
system
Tennessee Valley Authority: Power, water
resources, and chemical facilities
Total, natural resources

11.0

45.8

14.6

11.0

13.1

28.7

.1
135.0
171.6
171.8
35.3
24.0
32.2
1,506.5 1,580.9 1,553.9 1,552.4 1,614.1 1,665.7

Commerce and Transportation
Funds appropriated to the President:
Public works acceleration program:
14.2
214.0
227.0
Grants
___
4.5
632.0
26.8
1.5
47.3
104.2
Direct Federal work. _
152.0
1.0
Department of Commerce:
Maritime Administration: Library and
other improvements
.1
.8
Bureau of Public Roads:
Highway and other trust funds:
3,493.9 3,600.5 3,691.2 2,941.0 3,452.8 3,541.2
Grants
Woodrow Wilson Bridge and other
.3
.3
work
Forest and public lands highways,
38.6
39.9
39.6
33.9
46.0
39.9
grants
..
Control of outdoor advertising, grants.
2.0
2.0
Coast and Geodetic Survey: Observato.5
.4
.3
ries and facilities
.6
2.8
.6
4.1
.5
Weather Bureau: Facilities. _
6.6
.5
8.2
.6
2.0
New York World's Fair: BuildingsNational Bureau of Standards: Labora21.6
27.5
13.7
28.4
8.8
7.6
tories
_
Area Redevelopment Administration:
10.0
2.9
11.0
35.0
Grants for public facilities.
35.0
8.0
15.6
29.3
11.2
2.5
Loans for public facilities — _ _
34.5
15.0
Department of Defense—Civil: Panama
Canal Company: Canal and harbor im9.4
5.1
12.6
provements and bridge
Department of the Interior: Office of
.9
1.1
.9
Territories* Alaska Railroad
Post Office Department: Improvements
46.2
33.7
32.7
55.7
10.1
43.3
and alterations __
...
Treasury Department: Coast Guard:
24.9
36.9
24.9
14.4
22.0
16.0
Lifeboat stations and other aids
_.
-5.0
-20.0 -20.5
Department of Defense transfer
Federal Aviation Agency:
Air traffic control, navigation and
93.3
93.9
109.3
72.0
110.0
95.2
research facilities
5.3
13.3
20.1
2.0
5.2
2.5
Washington, D.C., and Alaska airports.
75.7
75.3
51.5
75.0
75.0
75.0
Federal-aid airport program: Grants
Saint Lawrence Seaway Development
1.5
1.4
1.0
Corporation
Total, commerce and transportation 4,685.5 3,931.4 3.990,9 3,297.7 4,130.2 4,096.7
See footnotes at end of table.

394

THE BUDGET FOR FISCAL YEAR

1965

Table F-7. FEDERAL ACTIVITIES IN PUBLIC WORKS
(in millions of dollars) —Continued
By major function and agency
NEW AUTHORIZATIONS
1963

1964

EXPENDITURES

1965

1963

1964

1965
s

CIVIL PUBLIC WORKS—Continued
Housing1 and Community
Development
Housing and Home Finance Agency:
Office of the Administrator:
Urban transportation grants
Public facility loans _ _
_
Advance planning, non-Federal public
works: Loans
Liquidating programs: Community
facilities: Loans _
Public Housing
Administration:
Low-rent public housing loans ___
National Capital Transportation Agency:
Land acquisition and construction
District of Columbia:
Loans for highway, sewage and water
systems and other structures
Grants for sewage works
Federal payment to District: Grant
Total, housing and community development _ _ _ _ _ _ _ _ _ __

75.0
12.5
12.0

6.0

12.0

29.8

33.7

9.6
31.1

5.9

3.5

5.2

-1.3

-1.0

-1.4

-3.4

-56.3

(2)

26.0
.3
5.0

19.3

14.4

25.0
.3

35.8

31.0

12.5

29.8

5.0

12.5

29.8

56.3

37.8

131.2

61.2

28.3

105.6

4.5

11.0

1.0

1.9

4.2

33.2
9.6
88.0
50.0
90.0

16.3
6.0
88.0
56.0
90.0

21.5
8.8
116.0
58.0
90.0
15.0

2.3
7.4
69.7
2.2
51.7

14.2
10.5
76.0
3.0
75.0

20.6
8.8
79.0
3.0
75.0
1.5

8.1

2.0

.3
1.9

.2
2.1

4.7

5.8

1.7

2.8

1.7

Health, Labor, and Welfare
Department of Health, Education, and
Welfare:
Food and Drug Administration: Buildings
Public Health Service:
Federal research facilities and National
Library of Medicine
Indian health facilities 1
Grants for public hospitals
_ _
Grants for health research facilities
Grants for waste treatment works
Grants for mental health centers
Mental health facilities, Alaska
(grant)
__ _____
Saint Elizabeths Hospital: Buildings
Social Security Administration: Buildings and district offices (trust fund)
Department of Labor: Youth camps, proposed legislation, _ _
Total, health, labor, and welfare
See footnotes at end of table.

279.2

10.0

70.0

271.4

398.1

31.0
138.1

185.6

229.5

395

SPECIAL ANALYSES
Table F-7. FEDERAL ACTIVITIES IN PUBLIC WORKS
(in millions of dollars)—Continued
By major function and agency

Function, organization unit, and program

EXPENDITURES

NEWf AUTHORISATIONS
1963

1964

1965

1963

1964

1965

CIVIL PUBLIC WORKS—Continued
Education

Department of Health, Education, and
Welfare: Office of Education:
Schools in federally affected areas:
At Federal installations
Grants
Higher education facilities:
Loans
Grants
Residential vocational schools (grants)
Proposed education legislation:
Libraries and classrooms (grants)
Housing and Home Finance Agency: College housing loans
Mational Science Foundation: Research
facilities
Smithsonian Institution: Museums.
Total, education. _
Veterans Benefits and Services
Department of Defense—Civil:
Army: Cemeteries
__
__
United States Soldiers' Home (trust
fund)
Veterans Administration:
Hospital and domiciliary facilities
Corregidor-Bataan memorial
American Battle Monuments Commission: Memorials and cemeteries...
Total, veterans benefits and services.
General Government
Legislative branch:
Architect of the Capitol: Buildings and
library
Botanic Garden: Greenhouses
Government Printing Office: Annex
Department of Defense—Civil:
Army: Power and water systems in the
Ryukyu Islands: Loans
Canal Zone Government: Improvements.
Department of the Interior:
Office of Territories: Public facilities in
Samoa, Guam, and the Pacific
Trust Islands:
Grants
Loans
Alaska public works: Grants
Virgin Islands Corporation: Water and
power facilities
Department of Justice:
Federal Prison System: Prison facilities. _
Immigration and Naturalization Service: Border facilities
See footnotes at end of table.

10.4
52.5

7.5

52.0

50.1

6.0

102.0
140.0
25.0

140.0

12.2
53.2

51.7

.3
.3

13.1

135.0

8.1

9.8

6.6
1.2
7.0

135.0
135.0

7.5

10.0
49.2

115.0

74.0

68.3

7.8

7.5

6.3

1.7

7.7

4.6

8.3

8.0
11.3

11.6

207.6

358.1

606.6

195.1

153.1

174.8

2.0

1.2

77.0

81.8
1.5

102.0

65.8

75.0
.2

85.0
.5

.4
77.7

83.7

104.0

68.0

.2
76.6

86.1

18.0

4.8

23.8

22.8

16.2

6.4

-6.4

46.7

7.9

2.2

2.6

6.0

4.1

3.9

5.3

4.5

14.6

17.8

10.0

9.3

14.3

4.8

5.9

6.5

2.0

2.9

16.5

3.5

9.5

21.2

8.0

10.8

8.4

396

THE BUDGET FOR FISCAL YEAR 1965
Table F-7. FEDERAL ACTIVITIES IN PUBLIC WORKS
(in millions of dollars)—Continued
By major function and agency

Function, organization unit, and program

EXPENDITURES

NEW AUTHORIZATIONS
1963

1964

1965

1963

1964

1965

CIVIL PUBLIC WORKS—Continued
General Government—Continued
Treasury Department:
Bureau of Customs: Border facilities
Bureau of the Mint: U.S. mint
Bureau of Engraving and Printing: Airconditioning
__
General Services Administration:
Construction of public buildings, sites
and planning
Trust funds
Central Intelligence Agency: Headquarters.
Total, general government
Total, civil public works
Budget accounts
Trust funds

.2
.5

.3
256.7

.2
16.0

.2
.5

.2
8.0

2.5

156.4
2.1

184.7
.3

217.2

1.7

5.8
243.3

258.3

303.1

281.9

369.4

206.1

250.7

284.0

,952.9

,313.9

,547.4

,790.4

,962.5

,213.5

,428.1
,524.9

,689.1
,624.8

,829.1
,718.3

,817.2
,973.2

,466.4
,496.1

,647.3
,566.2

149.8
20.0
148.7

24.0
20.5
138.6

34.0
5.0
224.0

2o!o
8.3

39.0
20.5
185.0

130.0
5.0
190.0

7.0

10.0

10.0
20.0

3.0

8.0

7.0
7.5

151.4
8.0

200.6
4.5

408.0
5.0

145.1
14.0

175.0
10.5

251.0
8.0

7.0

5.7

6.0

19.2

15.0

10.0

161.4
7.0

198.9
6.0

278.0
7.0

190.2
5.6

202.0
8.0

225.0
7.0

780.1
5.0
14.0

468.3
4.0
16.0

406.0
5.0
14.0

715.4
4.6
21.9

614.0
6.0
17.0

500.0
5.0
15.0

NATIONAL DEFENSE PUBLIC
WORKS
Department of Defense—Military:
Interservice activities:
Construction, defense agencies
Loran stations
Family housing
_
Civil Defense:
Grants for shelter
Emergency centers and shelters
Army:
Construction
Construction, Army Reserve
Construction, Army National Guard
(grants)
_
Navy:
Construction. __ _
Construction, Naval Reserve
Air Force:
Construction
Construction, Air Force Reserve
Construction, Air National Guard

Total, Department of Defense—
1,359.3 1,097.1 1,422.0 1,154.9 1,300.0 1,260.5
Military
243.3
249.5
260.0
180.2
245.3
262.7
Atomic Energy Commission: Facilities.__
General Services Administration: N.I.R.
1.2
1.1
.6
.7
1.5
1.2
facility
__
Total, national defense public works:
Budget accounts
Trust funds

1,623.3 1,343.9 1,602.9 1,405.5 1,544.5 1,521.1

Total, civil and defense public works

9,576.3 8,657.8 9,150.4 7,195.9 8,507.0 8,734.6

1
3

Includes small amounts from trust funds.
$50 thousand or less.

SPECIAL ANALYSIS G

FEDERAL HEALTH PROGRAMS

This is the first comprehensive analysis of Federal health activities
to be included in the budget document. It presents information on all
the medical and health-related activities of the Federal Government,
regardless of where they may otherwise be classified in the budget.
On this broad basis, the Government will spend an estimated
$5.4 billion in 1965 for all health activities—for hospital care and
medical treatment in Federal and non-Federal facilities, for construction of health facilities, for health research and training, and for a
multitude of preventive and community health and health-related
programs. Almost all of these health expenditures will be from
administrative budget funds—more than 5% of the administrative
budget total. In addition, trust fund expenditures of $469 million
will be made, mainly for health benefits for Federal employees, but
this will be nearly entirely offset by receipts from contributions by
employees and Federal agencies.
Compared to the total net expenditures of $5.4 billion from budget
accounts, new obligational authority in 1965 will be $6.0 billion.
The development

oj Federal health-related

expenditures.—Health

programs are among the oldest activities of the Federal Government.
The origins of the Army Medical Service predate the Constitution,
and the Public Health Service was established in 1798 to provide
hospital care for merchant seamen. Medical and hospital care was
provided for veterans residing in the National Homes for Disabled
Volunteer Soldiers established after the Civil War. Such care for
all service-disabled veterans was provided by an amendment to the
War Risk Insurance Act of 1917, and in 1923 and 1924 inpatient
benefits were authorized for non-service-connected disability. Experiments in 1900 by Walter Reed, an Army doctor, proving that
mosquitoes carry yellow fever, indicate the longstanding Federal
interest in health research. In the last 15 or 20 years, many new
health programs have been enacted, particularly programs which
authorize grants to State-local agencies and to private organizations
and individuals for health research, training, facilities, and for support
of health activities and services.
Although historical figures on the comprehensive basis used in this
analysis are not available, the directly operated hospital and medical
activities of the Veterans Administration and the agencies now comprising the Department of Defense were by far the largest Federal
health programs in the decade following World War II. In recent
years, however, expenditures for care of military personnel have been
fairly level while outlays for the care of veterans have increased at a
steady pace. In contrast, programs of other agencies, notably of the
Department of Health, Education, and Welfare, with its many
grants for nonfederally operated health activities, have expanded
rapidly. This can be roughly illustrated by a comparison of the pro397

398

THE BUDGET FOR FISCAL YEAR 1965

posed appropriations for 1965 with the figures for obligations for 1958
which were published in 1961 on a reasonably comparable basis in
Senate Report No. 142, 87th Congress, 1st session, prepared by a
subcommittee of the Senate Committee on Government Operations.
Health programs in 1958, according to this report, totaled about
$3 billion compared to the proposed new obligational authorizations of
$6.0 billion for 1965. While the total doubles during this 8-year
period, Department of Defense programs rise from less than $1
billion to over $1.1 billion and Veterans Administration programs
rise from $0.9 billion to $1.3 billion, an increase of about two-fifths.
The programs of the Department of Health, Education, and Welfare,
however, increase almost fourfold, rising from $0.8 billion to $3
billion. Funds for all other agencies combined rise from about $0.3
billion in 1958 to $0.6 billion in 1965.
Distribution of Federal health programs by agency.—Seven Cabinet
departments and more than a dozen other agencies conduct or support
health programs, in addition to those for Federal employees which
are financed by every agency. Many of the health activities of these
agencies are not classified in the "health, labor, and welfare" function
but are carried on as part of broader programs and are classified in
the functional categories according to the basic purpose served,
such as "national defense," "veterans benefits and services," etc.
Because these activities contribute to advancing the Nation's health,
they are included in this analysis. Thus while the regular functional
classification shows expenditures of $1.7 billion in 1965 for "health
services and research"—all by the Department of Health, Education,
and Welfare—the amounts included in this analysis are more than
three times as large and cover many agencies. Table G-l shows the
expenditures for each agency.
Of the $5.4 billion in budget and trust fund expenditures estimated
for health in 1965 on this broad basis, $4.8 billion, or 89%, will be
made by three agencies, including 46% by the Department of Health,
Education, and Welfare, 23% by the Veterans Administration, and
20% by the Department of Defense. The bulk of the health expenditures by the Department of Defense and the Veterans Administration
are for the provision of direct care and treatment, most of which is
provided in their own hospitals and clinics. These two agencies also
have sizable expenditures for health facilities, for training, and for
support of health research.
The Department of Health, Education, and Welfare, on the other
hand, spends only a comparatively small portion of its health funds for
direct medical care, principally for merchant seamen and Indians in
Public Health Service hospitals. The bulk of the Department's health
care outlays is for medical research and training and for grants to
States and localities to cover medical expenses of public assistance
recipients and medical care of the aged. The Department also spends
substantial amounts through the Public Health Service for grants for
construction of health facilities, for support of local and State community health, and for environmental health activities.
The remaining 11%, or $0.6 billion, of the estimated expenditures
in 1965 will be made by more than 15 other departments and agencies.
Among these are the Agency for International Development and the
Department of State which support health activities in other coun-

SPECIAL

Table G-1.

399

ANALYSES

FEDERAL EXPENDITURES FOR MEDICAL A N D H E A L T H RELATED PROGRAMS BY AGENCY (in millions of dollars)
Agency

1963

1964

1965

ADMINISTRATIVE BUDGET
Department of Health, Education, and Welfare:
Public Health Service:
National Institutes of Health
Other
Welfare Administration
Other
Total, Department of Health, Education, and Welfare. __
Veterans Administration
Department of Defense:
Army
Navy
Air Force
Other
Total, Department of Defense
Agency for International Development
Atomic Energy Commission
Department of Agriculture
National Aeronautics and Space Administration
National Science Foundation
Housing and Home Finance Agency
Civil Service Commission
Department of State
Department of Labor
Department of Justice
Panama Canal
Department of the Interior
Peace Corps
Small Business Administration
General Services Administration
United States Information Agency
Contributions by Federal agencies to Federal employees' health
benefits fund not included above
Total net budget expenditures for health

723.6
540.2
678.5
85.7

825.0
655.3
765.7
103.7

850.0
708.5
803.0
107.8

2,028.0

2,349.6

2,469.3

1,144.9

1,239.9

1,245.5

440.6
190.6
340.6
15.6

469.3
196.6
356.7
9.6

486.1
211.6
380.4
18.9

987.3

1,032.3

1,097.0

76.5
77.3
92.8
15.6
26.5
28.6
20.0
13.3
15.6
3.4

98.6
86.4
97.4
44.4

107.5
93.1
59.7
54.0
35.0
29.2
25.5
17.2
16.8
12.4

6.9
1.8
2.0
2.8
.1

31.0

30.5
24.3
16.0
16.2
8.8
7.7
2.6
4.2
2.8
1.5
.1

6.5
5.4
4.8
2.8
2.0

120.0

120.3

124.5

4,663.5

5,214.7

5,408.3

-12.5
7.0

-14.5
7.5

-2.9
6.9

-5.5

-7.0

4.0

TRUST FUNDS
Civil Service Commission
United States Soldiers' Home
Total trust fund expenditures for health
4,658.0

5,207.7

5,412.3

Total budget and trust fund expenditures for health

tries, the Atomic Energy Commission with its substantial biomedical
research activities in the radiological field, the National Aeronautics
and Space Administration with its rapidly growing research activities
in space medicine, the Housing and Home Finance Agency which
makes advances and loans for water and sewer facilities, and the National Science Foundation which underwrites basic research in
biosciences.

400

THE BUDGET FOR FISCAL YEAR

1965

Federal health programs are developing on many fronts. Of the
estimated increase of $754 million in total expenditures from 1963 to
1965 more than half, $441 million, is in the Department of Health,
Education, and Welfare—a growth of about 22% in 2 years for that
agency. The Department of Defense and the Veterans Administration each increase by more than $100 million, with increases of
11% and 9%, respectively. All other agencies show a net growth
of $103 million or 21%, with the largest increases in the National
Aeronautics and Space Administration, and the Agency for International Development. The decrease which occurs in Department
of Agriculture expenditures results because legislation is proposed to
finance meat and poultry inspections on a self-supporting fee basis.
There will be no reduction in the amount of service.
Distribution

oj Federal health expenditures by category and by bene-

ficiary group.—Table G-2 shows the distribution of the total Federal
medical and health-related expenditures for the 3 fiscal years, 1963-65,
by six categories. The accompanying chart on estimated expenditures for 1965 depicts the distribution of the outlays in each category
between the Department of Health, Education, and Welfare and all
other agencies.
Table G-2. FEDERAL EXPENDITURES FOR MEDICAL AND HEALTHRELATED ACTIVITIES BY CATEGORY (in millions of dollars)
Category

1. Hospital and medical care in Federal facilities
2. Federal grants and payments for hospital and health care in
non-Federal facilities
3. Medical research, total
(a) Conduct of research
(b) Research facilities
4. Training, including training research
5. Preventive and community services
6. Construction of hospitals and health facilities
Total health expenditures from administrative budget
and trust accounts

1963

1,877.3
905.7
892.1
(832.8)
(59.3)
256.5
346.1
380.3
4,658.0

1964

1,982.3

1965
stimate

2,006.5

991.8 1,029.4
1,047.2 1,124.8
(966.6) (1,031.3)
(93.4)
(80.6)
332.9
324.4
390.2
396.0
528.5
466.1
5,207.7

5,412.3

Of the total expenditures of $5.4 billion in 1965 for medical and
health-related purposes, $3.0 billion or about 56% will be for provision
of health care either directly in Federal facilities or financed by Federal
grants or payments for services by non-Federal facilities. This is an
increase of $253 million from 1963.
The direct care expenditures amount to just over $2 billion, or
37%, of total expenditures. Most of this service is provided in hospitals of the Department of Defense, Veterans' Administration, and
the Department of Health, Education, and Welfare, which, in all,
comprise almost 10% of all hospital beds in the United States.
Table G-3 shows the number of hospital beds and the average daily
number of patients during the 3 years 1963-65. The number of
individual patients during any year is, of course, many times the daily
census because hospital stays average 7 to 75 days for most agencies.

SPECIAL

ANALYSES

401

Federal Expenditures for Medical and Health-Related Activities by Category

In addition to this large number of inpatients, several million individuals each year receive outpatient care or treatment in the Federal
facilities.
Approximately one-sixth of the population in the United States is
actually or potentially eligible for direct hospital care or medical
treatment in Federal facilities based on estimates available at the end
of calendar year 1963. Approximately 22.1 million living war veterans, including some 3 million with service-connected disabilities,
comprise the largest single group of eligibles, although for ailments
not related to service hospital care is provided only to the extent that
Veterans Administration hospital facilities are available. Under the
basic policy of limiting its hospital system to 125,000 beds, the Veterans Administration meets approximately half of the hospital care
requirements of veterans with non-service-connected ailments.
Active duty and retired uniformed service personnel numbering 3.1
million and their 4 million dependents are also covered. Approximately 2.5 million Federal employees are entitled to treatment for
in-line-of-duty disabilities, although such injuries are comparatively
infrequent. Other eligible groups include 385,000 American Indians
and natives of Alaska, 120,000 American seamen, some 73,000 civilians
in the Panama Canal Zone, an estimated 60,000 narcotic addicts,
24,000 inmates of Federal prisons, and 1,500 patients with leprosy.
With allowance for duplications in the above categories, an estimated
30 million Americans are eligible for all or part of their health care
from Federal facilities.
The third largest category of expenditures—$1 billion or 19% of
the total—is for grants and payments for hospital and health care in
non-Federal facilities. Grants for public assistance and for medical
care for the aged by the Department of Health, Education, and Welfare account for three-fourths of this total. During 1965, nearly 3
million individuals are estimated to receive such aid. The Civil
Service Commission provides health benefits to about 81% of the 2.5
million Federal civilian employees and an estimated 4.1 million of
their dependents under the Federal Employees' Health Benefits Act.
700-000 0—64

402

THE BUDGET FOR FISCAL YEAR 1965

Table G-3. FEDERAL HOSPITALS, OPERATING BEDS, AND PATIENT LOADS
By agency

1963
ac a

Number of hospitals:
Defense
Health, Education, and Welfare
Veterans Administration
Other

Number of operating beds:
Defense
Health, Education, and Welfare
Veterans Administration
_
Other
_
Total.._.
Average daily patient load:
Defense
Health, Education, and Welfare
Veterans Administration
Other
Total

__ _

1965

234
67

169
36

168
36

232
67
168
36

507

505

503

43,190
16,857
120,304
3,245

43,000
16,654
120,371
3,261

43,400
16,654
120,249
3,294

183,596

183,286

183,597

30,624
14,080
110,194
2,152

30,413
13,954
110,269
2,191

30,754
13,772
110,318
2,254

157,050

156,827

157,098

235

Total

1964

A similar program provides benefits for 241,000 retired Federal
employees and their dependents. These payments are made from
trust revolving funds into which are deposited both agency and employee contributions. Since the health benefits funds are revolving
funds, with receipts offsetting expenditures, only the net effect of
these transactions in the trust funds is included in the expenditures
for this category. The Government's contributions amounting to
$151 million in 1963, $156 -million in 1964, and $161 million in 1965,
are included in the administrative budget figures and are mostly classified in this category. The bulk of the remainder represents payments
for care of Federal beneficiaries, principally by the Veterans Administration and the Department of Defense in those cases where Federal facilities are not available.
Every citizen is benefited in one way or another by the health
research, training, preventive and community services, and hospital
construction activities of the Federal Government. Expenditures
for these activities will total $2.4 billion in 1965, an increase of $501
million from 1963. These categories comprise only 44% of the total
health expenditures, but they account for 66% of the increase over
1963 in health outlays. The amount of increase over 1963 is greatest
for health research and facilities ($233 million and 26%), but the
highest rates of increase will be for construction of health facilities
($148 million and 39%) and training ($76 million and 30%). Preventive and community service activities show the largest dollar and
percentage increases ($44 million and 13%). Legislation passed in
1963 provides for increased Federal efforts for air pollution control,
for assista$ce to schools and to students in medicine and dentistry,

SPECIAL ANALYSES

403

and for programs to combat mental retardation and promote mental
health. Other expanding areas include activities relating t6 water
pollution, pesticides, community health, and food and drugs. The
next several paragraphs discuss the four categories separately.
About two-thirds of the $1.1 billion in Federal expenditures for
health related research and research facilities are by the Department
of Health, Education, and Welfare, particularly the National Institutes of Health, which alone account for $631 million. The Department of Defense, the Atomic Energy Commission, the National
Science Foundation, and the National Aeronautics and Space Administration also make sizable outlays for health research.
Training, including training for research, accounts for $333 million
in 1965 expenditures. Again, the Public Health Service, and especially the National Institutes of Health, are the major sources,
although the Department of Defense also spends significant amounts.
Of the $390 million for preventive and community health services,
$269 million will be spent by the Public Health Service, the Food and
Drug Administration, and the Welfare Administration. The Federal
Government's programs of assistance to underdeveloped countries are
also responsible for about $75 million of the outlays and the Department of Agriculture programs account for most of the remainder.
The Hill-Burton hospital construction program accounts for $204
million out of $528 million to be spent in 1965 for construction of
facilities other than for research. The Veterans Administration's
expenditures of $82 million represent the fifth year of that agency's
15-year hospital replacement and modernization program. The
Department of Defense will also spend $58 million for construction.
Proposed legislation.—Significant health legislation is proposed in
the 1965 budget. New obligational authority of $270 million is
requested to extend the Hill-Burton health facilities construction
program, with increased emphasis on modernization of urban hospitals,
construction of long-term care facilities for the aged, and improved
planning of community health facilities. It is expected that $5
million of this will be spent in 1965. The 1965 budget includes
$11 million of expenditures for extension and improvement of nurse
education activities. Proposed legislation in the Department of
Agriculture to place meat and poultry inspection on a self-supporting
fee basis will reduce Federal expenditures nearly $44 million in 1965,
although inspections are expected to increase. Because of this latter
item, expenditures under proposed legislation for 1965 will show a net
reduction of $28 million. Proposed appropriations of $295 million
under new legislation are offset in part by the $47 million reduction
in appropriation for the Agriculture program.
Other health proposals, which are covered by the general allowance
for contingencies because the costs would not be large, would extend
and broaden the public health training programs, authorize group
practice facility loans and provide grants for sanitation facilities for
migrant agricultural laborers. A proposal to provide hospital insurance for persons over 65 through the social security system is also
pending in Congress, but this does not affect the 1965 budget since
the program will not begin until January 1, 1966.

404

THE BUDGET FOR FISCAL YEAR 1 9 6 5

Table G-4. FEDERAL EXPENDITURES FOR MEDICAL AND HEALTHRELATED PROGRAMS (in millions of dollars)
Agency and program

F'unct ional
code

1964
estimate

1963
actual

1965
stimate

ADMINISTRATIVE BUDGET FUNDS
National defense:
Department of Defense:
Hospital and medical care of military personnel and
their dependents, retired personnel and their families on a space available basis, and civilian employees
and their dependents overseas
Research in preventive medicine, improved methods
of caring for and rehabilitating the sick and injured,
and studies relating to medical problems of military
science
_ __
Professional and technical training of personnel
Procurement, distribution, and installation of medical
supplies in civil defense shelters
_.Construction of civil defense shelters in medical facilities
_
Department of Health, Education, and Welfare: Stockpiling of medical supplies
-Atomic Energy Commission: Research on the effects
and use of radiation

051

832.2

867.1

911.0

051
051

101.2
44.0

115.4
47.7

125.1
49.5

051

10.0

2.1

3.0

051
059
058

Agriculture and agricultural resources:
Department of Agriculture:
Plant and animal research; meat and poultry inspections
Proposed legislation: Finance meat and poultry
inspection on a self-supporting fee basis
Total, agriculture and agricultural resources..-

13.0

15.0

77.3

86.4

93.1

1,131.6

1,205.1

152

2.0

4.2

4.8

153

152
152

20.8
12.5

36.1
12.5

34.3
12.5

152

43.2

50.0

60.7

151

11.6

14.1

152
153

.8
.9

.8
1.1

15.7
.4
1.1

91.9

119.0

129.6

15.6

44.4

54.0

92.8

97.

103.2

97.

—43.6
59.7

Total, international affairs and finance
Space research and technology:
National Aeronautics and Space Administration: Research on health factors and human capabilities in
advanced aerospace systems
---

20.0

1,084.7

Total, national defense
International affairs and finance:
Peace Corps: Assistance to underdeveloped countries
particularly for nursing and malaria eradication
projects
-- United States Information Agency: Medical care of
Foreign Service officers who become ill abroad
Agency for International Development:
Alliance for Progress: Grants and loans for community
health services and construction of health facilities..
Contributions to international organizations
__
Grants, loans, and other assistance to underdeveloped
countries in meeting their most pressing health
problems
..
Department of State:
Contributions to international organizations, conferences, and medical and hospital care of Foreign
Service personnel and their dependents
Assistance to refugees from Communist countries, except Cuba
Mutual educational and cultural exchange activities..

8.4

92.8

405

SPECIAL ANALYSES

Table G-4. FEDERAL EXPENDITURES FOR MEDICAL AND HEALTHRELATED PROGRAMS (in millions of dollars)—Continued
Agency and program

unc
onal
:od

1965

1964

1963

Natural resources:

Department of Interior:
Research on toxicological effects of pesticides on fish
and wildlife
___
_
404
Care of 600 Aleut Indians in Pribilof Islands, Alaska.. 404

1.2
.1

2.2

5.1
.1

1.3

2.2

5.1

506

2.8

553

28.6

30.5

29.2

651

3.7

3.8

651

7.5

10.9

13.1

651

62.5

66.9

67.8

651
651

50.0
6.3

50.1
5.7

51.6
6.0

651

240.9

275.6

278.9
5.0
28.8

Total, natural resources
Commerce and transportation:

Small Business Administration: Loans for construction
and operation of nursing homes and other healthrelated facilities
Housing and community development:

Housing and Home Finance Agency: Advances and
loans to local communities for construction of sewer,
water, and other health-related facilities
Health, labor, and welfare:

Department of Health, Education, and Welfare:
Freedmen's Hospital: Operation of a community
teaching hospital serving Howard University Medical School
_
Saint Elizabeths Hospital: Hospital care for the
mentally ill in the District of Columbia
Public Health Service:
Health services for Indians
Medical care of merchant seamen, narcotic addicts,
and other Public Health Service beneficiaries
Quarantine activities
_
Grants and loans for construction of hospital and
health facilities
Proposed legislation: Hill-Burton amendments...
Education and training for public health.
_
Proposed legislation: Nursing education and
training
.Accident and disease prevention and control
Scientific activities overseas
Construction of health facilities (other than research)
_
Environmental health activities
National Institutes of Health (research) _
Welfare Administration:
Grants for maternal and child welfare
Assistance to Cuban refugees and repatriated U.S.
nationals
Public assistance grants for hospital and health care.
Vocational Rehabilitation Administration: Rehabilitation grants and research and training in problems
of handicapped individuals.
Food and Drug Administration: Enforcement of the
pure food and drug laws
Department of Labor: Accident prevention and vocational rehabilitation for disabled longshoremen
Department of Interior: Health research related to mine
operations
Total, health, labor, and welfare.

651

")V.9

11.0
133.0

651
651

85.0
1.6

133.1
3.9

651
651
651

2.2
59.8
723.6

14.0
71.5
825.0

18.5
88.5
850.0

651

50.5

62.5

85.0

653
653

3.0
625.0

3.2
700.0

3.0
715.0

655

39.0

47.2

41.0

651

29.2

35.1

42.8

652

2.0

2.2

652

2,004.2

2,332.5

2,449.7

4.5

406

THE BUDGET FOR FISCAL YEAR 1965

Table G-4. FEDERAL EXPENDITURES FOR MEDICAL AND HEALTHRELATED PROGRAMS (in millions of dollars)—Continued
Agency and program

7
unctional
code

1963
actual

1964
estimate

1965
estimate

Education:

Department of Health, Education, and Welfare:
Practical nurse training
Defense educational activities _
_
National Science Foundation: Support of basic research in health-related fields. _

704
702

4.7
1.6

4.9
1.8

5.0
2.1

703

26.5

31.0

35.0

32.8

37.7

42.1

804

1,144.9

1,239.9

1,245.5

906
908

13.6
3.4

14.0
8.8

14.6
12.4

20.0

24.3

25.5

905

1.5

2.0

910

6.9

7.7

6.5

43.9

56.4

61.1

120.0

120.3

124.5

4,663.5

5,214.7

5,408.3

385.1
-397.6

403.4
-417.9

461.8
-464.7

-12.5

-14.5

-2.9

7.0

7.5

6.9

-5.5

-7.0

4.0

4,658.0

5,207.7

5,412.3

Total, education
Veterans benefits and services:
Veterans Administration: Hospital, domiciliary, and outpatient care of veterans including medical research and
construction and modernization of facilities
General government:

Department of Labor: Hospital and medical care for
Federal employees injured in line of duty. _
Department of Justice: Medical care of prisoners
Civil Service Commission:
Government contribution to Federal employees'
health benefit funds for retired employees and annuitants
General Services Administration: Matching grant for a
hospital in Southeast Washington, D.C
Panama Canal: Medical and hospital care for civilian
and military personnel, sanitation and quarantine
Total, general government
Contributions by Federal agencies to employees' health
benefits fund not included above
___
Total net administrative budget expenditures for
health
TRUST FUNDS
Civil Service Commission:
Expenditures for employee health benefits
Receipts from employee and Government contributions
Net expenditures from trusts revolving funds.
United States Soldiers Home: Hospital and domiciliary
care of retired and disabled enlisted personnel of the
Regular Army and Air Force
Total net trust fund expenditures for health
Total budget and trust fund expenditures for health.

654

805

SPECIAL ANALYSIS

FEDERAL RESEARCH, DEVELOPMENT, AND RELATED PROGRAMS

This analysis summarizes Federal administrative budget expenditures for research and development.1 The chart below illustrates
how most of the growth in recent years has resulted from the decisions
to undertake a vigorous space program and to maintain a strong
national defense which utilizes the latest products of science and
technology. In other areas of research and development there has
been a slower but steady growth since 1954. Total Federal expenditures for research and development will increase from $14.9 billion in
1964 to $15.3 billion in 1965, a rise of 3 % as compared with 24%
between 1963 and 1964. (See table H-l.) The 1965 increase is
primarily attributable to the space programs of NASA.
Estimated Administrative

Budget Expenditures for Research and

Development

407

408

T H E BUDGET FOR FISCAL YEAR

196 5

Table H-l. BUDGET EXPENDITURES FOR RESEARCH AND DEVELOPMENT, 1954-65 (in millions of dollars)

Fiscal year

1954
1955
1956
1957
1958
1959
I960
1961
1962
1963
1964
1965

_._

Department of NASA 2
Defense1

2.487
2,630
2.639
3,371
3,664
4,183
5,654
6,618
6,812
6,849
7,450
7,107

90
74
71
76
89
145
401
744
1,257
2,552
4,400
4,990

AEC

D/HEW

383
385
474
657
804
877
986
1,111
1,283
1,335
1,543
1,557

63
70
86
144
180
253
324
374
512
621
754
796

NSF

4
9
15
31
33
51
58
11
105
142
175
204

Other

121
140
161
183
220
293
315
356
409
483
561
633

Total

3,148
3,308
3,446
4,462
4,990
5,803
7,738
9,278
10,373
11,983
14,883
15,287

Note.— Totals in text tables may not add due to rounding.
Includes civil functions.
2
National Advisory Committee for Aeronautics prior to 1958.

This year, for the first time, a summary is included showing separately the totals for research and development (table H-2) and for
basic research (table H-3). These tables illustrate the relatively
small proportion of funds—less than 30%—spent for research compared with the amounts for development, consisting primarily of
engineering and fabrication of launch vehicles and spacecraft for
space exploration and of military hardware for test and evaluation.
Decreases in expenditures for development in the Department of
Defense explain the marked slowdown in the growth of Federal funds
for research and development.
Since science and technology represent such a large proportion of
total Federal expenditures, it is important to understand the wide
range of research and development activities conducted in the advancement of agency missions. Explanations of the contents and
trends of the programs of the agencies with major research and development activities are provided in the following sections of this
analysis.
There are also included at the end of this analysis summary data
by agency on total Federal support for several selected scientific and
technical activities of the Federal Government—such as oceanography
and meteorology—which, because of their broad national importance,
are coordinated on a governmentwide basis. These activities illustrate the fact that many agencies need to undertake research in the
same general area if they are to utilize science and technology effectively in the achievement of their basic missions. Research on the
use and control of water, as an example, is particularly important to
the missions of the Departments of Agriculture; Commerce; Health,
Education, and Welfare; and Interior. No one agency can be expected
to understand or provide for the research required to meet the needs—
often the urgent operational demands—of all interested agencies.

SPECIAL

409

ANALYSES

Table H-2. EXPENDITURES FOR RESEARCH, DEVELOPMENT, AND
FACILITIES (in millions of dollars)
1963
actual

Purpose

Conduct of research:
Department of Defense
National Aeronautics and Space Administration. __
Atomic Energy Commission
Department of Health, Education, and Welfare
National Science Foundation
Other
Subtotal, conduct of research
Conduct of development:
Department of Defense
National Aeronautics and Space Administration _ _ _ _
Atomic Energy Commission
__ __
_ _
Department of Health, Education, and Welfare
Other
Subtotal, conduct of development
Research and development facilities:
Department of Defense
National Aeronautics and Space Administration
Atomic Energy Commission
Department of Health, Education, and Welfare
National Science Foundation. _ _
Other

___ __.

Subtotal, research and development facilities__ .__
Total

1964

-1965

1,491.6
739.8
247.9
577.5
99.6
322.6

1,621.0
1,054.2
268.7
691.5
126.8
368.6

1,635.1
1,142.4
302.0
723.6
143.0
391.9

3,479.0

4,130.9

4,338.0

5,302.0
1,587.3
829.8
3.6
110.4

5,727.0
2,870.8
968.0
4.1
122.9

5,360.7
3,327.6
940.1
4.4
168.5

7,833.3

9,692.9

9,801.3

55.2
225.3
257.6
40.1
42.5
50.4

101.8
475.0
306.4
58.0
48.3
69.7

111.3
520.0
314.8
67.9
61.0
72.8

671.1

1,059.2

1,147.8

11,983.4

14,883.0

15,287.1

Table H-3. E X P E N D I T U R E S FOR CONDUCT OF BASIC RESEARCH
(In millions of dollars)
Agency

Department of Defense
National Aeronautics and Space Administration
Atomic Energy Commission
Department of Health, Education, and Welfare.
National Science Foundation
Other
Total

1963
actual

1964
estimate

1965
estimate

193.0
525.1
218.9
195.1
99.6
118.2

204.5
727.0
238.9
223.1
126.8
136.5

219.9
790.2
268.3
237.2
143.0
150.2

1,349.9

1,656.8

1,808.8

Note.— Basic research is directed toward increase of knowledge in science where the primary
aim is fuller understanding of a subject rather than practical application.
1
Amounts are included in conduct of research, table H-2.

410

THE BUDGET FOR FISCAL YEAR

1965

In these formally coordinated research programs, as well as many
other scientific activities of the Federal Government, steps are being
taken to improve coordination among the agencies concerned so that
the research efforts of the scientific community are mutually reinforcing. The growth of research and development activities in recent
years has created a tremendous problem of communicating scientific
results among scientists and to the agencies which wish to use the
results in some applied form. A major effort is underway to improve
such communications and to strengthen the means of handling and
disseminating scientific information.
Through its many research and development programs the Federal
Government now supports more than two-thirds of the total national
expenditures for this purpose. Almost two-thirds of Federal funds
for research and development are expended through contracts with
private industry. A little over 20 percent are expended for direct
research and development by Federal scientists and engineers in
agency laboratories. Only about 13 percent of Federal funds are
spent through contracts with and grants to universities and other
nonprofit institutions.
In connection with that portion of research and development conducted in universities, it is important to recognize the dual impact
of research carried out by faculty members assisted by graduate
students. The interaction of education and research in the university
environment contributes materially not only to the advancement of
research but also to the training of the scientific and technical manpower needed for the future.
DEPARTMENT OF DEFENSE—MILITARY

The research and development programs of the Department of
Defense include basic and applied research; exploratory, advanced,
and engineering development of new components and systems with
possible military applications; and development of weapons systems
approved for introduction into the operational forces. The principal
amounts for these purposes and for the operation of research and
testing facilities of the Department are carried in the budget in the
research, development, test, and evaluation appropriations. As indicated in table H-4, certain supporting amounts are provided in the
military personnel, procurement, operations and maintenance, and
military construction appropriations. Research and development
related to civil defense and military assistance are financed under
those headings.
Of the totals shown in table H-4 for 1965, 3 % is for basic scientific
research with about 23% providing for all research including experiments with extensive equipment requirements. Approximately 77%
is for development, test, and evaluation of new military weapons and
equipments.

411

SPECIAL ANALYSES

Table H-4. EXPENDITURES OF THE DEPARTMENT OF DEFENSEMILITARY—RESEARCH AND DEVELOPMENT (in millions of dollars)
1963
actual

Purpose and budget title

Conduct of research and development:
Research, development, test, and evaluation
Military personnel
Procurement
Operations and maintenance
Civil Defense
Military assistance

Total, expenditures for the conduct of research
and development
Research and development facilities: Military constructionTotal, expenditures for research and development--

1965
estimate

9.6

6,580.0
259.4
90.0
42.0
10.0
10.0

6,791.0
55.2

7,344.0
101.8

6,991.4
111.3

6,846.2

7,445.8

7,102.7

6,375.6
238.8

1964
estimate

90.0
72.0
1.4
13.2

6,943.0
248.4
85.0
48.0
10.0

Research and development activities decline slightly in 1965, as
development of several major strategic systems nears completion.
This reduction is shown in table H-4 above in terms of expenditures.
Obligations for research and development activities will also be
slightly lower in 1965 than in 1964 as indicated in table H-5 which
also shows the composition of the programs of the Department by
major fields of effort.
Amounts for basic and applied research increase slightly in 1965.
Development of components, subsystems and weapons including
weapons for conventional and limited war is also expected to increase
as major strategic weapon system development programs like Atlas,
Titan, Polaris, and Minuteman decline.
The new tactical fighter aircraft for use by both the Navy and the
Air Force as well as smaller aircraft to increase the mobility of the
ground forces will continue development in 1965. Missile developments include the Army's project for an improved antiballistic missile
known as Nike-X, the Navy's Polaris program, and the Air Force
programs for an improved version of Minuteman and a new mobile
midrange ballistic missile.
Included in military astronautics are such spacecraft programs as
the manned orbiting laboratory (MOL) as well as basic engine and
vehicle development efforts, such as the Titan III multipurpose
space booster program. Totals for the military space program are
given in table H-14. The research and development totals also include substantial and increased effort in the various aspects of antisubmarine warfare research and development and in the development
of improved combat vehicles for use by our land forces. Provision
is also made for support of Government-owned laboratories and test
installations such as the Atlantic and Pacific missile ranges.

412

THE BUDGET FOR FISCAL YEAR

1965

Table H-5. OBLIGATIONS OF THE DEPARTMENT OF D E F E N S E MILITARY—RESEARCH AND DEVELOPMENT (in millions of dollars)
Purpose and budget title
Conduct of research and development:
Research, development, test, and evaluation:
Military sciences
Aircraft and related equipment
Missiles and related equipment
Military astronautics and related equipment
Ships, small craft, and related equipment
Ordnance, combat vehicles, and related equipment. _
Other equipment
Programwide management and support
Emergency fund
Total, direct obligations, research, development,
test, and evaluation
Military personnel
Procurement
Operations and maintenance
Civil defense
Military assistance
Total, direct obligations for the conduct of research
and development
Research and development facilities: Military construction
Total, direct obligations, for research and development

1963
actual

1964
estimate

1965
estimate

971.3
959.8
1,883.3
1,037.5
302.4
348.4
606.5
533.8
150.0

925.7
724.1
2,525.4
1,234.8
223.9
249.0
513.7
490.2

888.2
967.9
,140.0
,263.9

,886.8
238.8
72.7
73.3
11.0
.1

7,130.0
248.4
87.3
44.9
10.0
1.2

6,793.0
259.4
108.1
42.7
15.0

7,282.7

7,521.8

7,218.2

87.2

133.6

118.4

7,369.9

7,655.4

7,336.6

265.1

329.3

638.1
536.5
101.0

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

All the activities of the National Aeronautics and Space Administration are classified as research and development for purposes of this
special analysis. The National Aeronautics and Space Administration is responsible for the development, test, and operation of spacecraft and vehicles for manned and unmanned exploration of space and
other nonmilitary applications, and for conducting the broad programs
of supporting research and development required for these purposes.
In addition, NASA is responsible for conducting research to advance
aircraft technology in support of both military and civilian interests.
The nature and estimated composition of the research and development programs of NASA are shown on table H-6. The increases in
1965 in almost all categories result primarily from the successive large
increases in NASA appropriations provided in 1963 and 1964 to carry
out the expanded space program, principally to provide the facilities
and initiate the vast new development programs required for the top
priority program to achieve a manned lunar landing by the end of the
decade. A further substantial increase in total NASA appropriations
is not required in 1965, so expenditures are not expected to continue
to increase in future years at the high rate shown in 1965 and preceding years.
The programs of scientific research in space include unmanned investigations in space with sounding rockets, satellites, and deep space

SPECIAL

413

ANALYSES

Table H—6. EXPENDITURES OF THE NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION FOR RESEARCH AND DEVELOPMENT
(In millions of dollars)
Program and type of activity

Conduct of research:
Basic scientific research in space:
Development and fabrication of spacecraft and
instruments
Procurement of launch vehicles and launching costs __
Conduct of experiments, data reduction, and supporting costs
Development of launch vehicles and equipment for
research purposes
_
Other basic research in space science and technology
Subtotal, basic research
Other research:
Space technology
Aircraft technology
Total, conduct of research..
Conduct of development:
Manned space flight and supporting development
Space applications development
Other space technology development
Total, conduct of development
Research and development facilities:
Basic scientific research in space
Other basic research
.
._
Other research:
Space technology
Aircraft technology
_
. . .
Development and support:
Manned space flight and supporting development
All other
.
Total, research and development facilities
Total, National Aeronautics and Space Administration __

1963
actual

1964

1965

199.7
75.2

267.6
90.6

257.4
127.9

106.6

174.9

202.8

88.0
55.6

110.9
83.0

109.3
92.8

525.1

727.0

790.2

177.7
37r0

282.4
44.8

302.4
49.8

739.8

1,054.2

1,142.4

1,383.1
87.8
116.4

2,608.2
106.0
156.6

3,052.5
92.8
182.3

1,587.3

2,870.8

3,327.6

33.0
10.0

55.9
15.0

43.7
15.0

12.6

43.7
.4

22.2
1.1

163.7
6.0

343.3
16.7

418.9
19.1

225.3

475.0

520.0

2,552.3

4,400.0

4,990.0

probes. Major emphasis in 1965 will be on the investigations to be
conducted with the large orbiting solar, geophysical, and astronomical
observatories and on the investigation of Mars with Mariner spacecraft. NASA also supports basic research in space sciences at universities and both basic and applied research in fields applicable to
space and aircraft technology at NASA research centers and through
grants and contracts with universities and industry. NASA's activities classified as development are currently devoted primarily to the
development of spacecraft and launch vehicles required for the manned
lunar landing program. Development is also continuing of satellites
and technology for communications, meteorology, and other space
applications, and of nuclear propulsion and other engineering developments to advance space technology.

414

THE

BUDGET FOR FISCAL YEAR

1965

ATOMIC ENERGY COMMISSION

The Atomic Energy Commission's program in research and development accounts for more than half of AEC's annual expenditures.
Research programs, which in 1965 constitute approximately 25%
of the total conduct of research and development, are conducted in the
physical and biomedical sciences to secure a better understanding of
nuclear structure, nuclear processes, and the effects of nuclear radiation on living organisms and systems. Of the total funds programed
for research, about 90% is considered to be basic or fundamental
research. The development programs include efforts to improve the
processes used in the production of special nuclear materials, to develop improved types of nuclear weapons, and to improve the means
of obtaining useful power from nuclear reactions.
These programs are carried on in AEC's contractor-operated
laboratories, in universities, in other private research institutions, and
by private industry. In support of its activities for the conduct of
research and development, AEC provides laboratory facilities, research equipment, and large research machines, such as nuclear
reactors and particle accelerators. In 1965 more than one-third of
AEC's expenditures of this sort will be in support of research in contrast to development.
Table H-7. EXPENDITURES OF T H E ATOMIC ENERGY COMMISSION FOR
RESEARCH AND DEVELOPMENT (in millions of dollars)

Program

Conduct of research
and development
1963
actual

Research and development facilities
1963
actual

1965

437.9
508.3
197.3
71.3
21.9

420.9
497.9
222.0
80.0
21.3

54.6
107.5
85.5
7.9
2.1

83.6
120.5
89.7
9.5
3.1

70.3
126.9
106.7
8.6
2.4

Total, Atomic Energy Commission. 1,077.8 1,236.7 1,242.1

257.6

306.4

314.8

Special nuclear materials and weapons
Reactor development
Physical research
Biology and medicine
Other research and development

351.7
462.4
182.8
65.1
15.7

1964

1965
estimate

1964

AEC's reactor development program includes efforts to develop
economic nuclear power reactors, to develop nuclear propulsion for
rockets (Project Rover), to develop compact nuclear electric power
sources for space and other remote applications, to develop military
power and propulsion reactors, and to broaden the base of reactor
technology. In 1965 particular emphasis will be given to "breeder"
power reactors, which would produce more fissionable material than
they consume, and to the area of nuclear safety.
The physical research program, which increases in 1965, comprises
research in high and low energy physics and in those aspects of
chemistry, materials, and mathematics of particular importance to
nuclear science and technology. In addition, there is a continuing
program to achieve a controlled thermonuclear reaction for possible
generation of power. Of special interest in 1965 is AEC's plan to
construct in the Midwest the world's finest nuclear research reactor.

SPECIAL ANALYSES

415

In addition, AEC conducts programs for research in the biomedical
sciences and for the peaceful uses of isotopes and nuclear explosives.
DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE

The expenditures for research and development by the Department
will increase $42.3 million* in 1965 over an estimated $753.6 million
in 1964. This increase is primarily to strengthen the programs of the
Public Health Service and reflects the additional emphasis being placed
on prevention and treatment of mental illness and mental retardation.
In addition to the $38 million spent in 1964, $6 million is included
to expand environmental health activities, primarily to study the longterm effects of pollution on human health.
Expenditures for the National Institutes of Health include increases for the new Institutes of Child Health and Human Development and the Institute of General Medical Sciences.
The Office of Education is expanding its support for research to
improve course materials, strengthen teacher training programs, improve teaching of the arts, to help smaller universities and colleges
develop educational research programs, and to demonstrate research
findings to school personnel. Expenditures for these programs will
total $23.8 million in 1965, an increase of $5.6 million over 1964.
NATIONAL SCIENCE FOUNDATION

The total expenditures of the National Science Foundation for
research and research facilities are estimated at $204.0 million in 1965
as compared with $175.1 million in 1964 and $142.1 million in 1963.
The 1965 budget will provide increased support for basic research
project grants; for the Antarctic research program; and for Project
Mohole, a program of research in the geology and geophysics of the
deeper layers of the earth. Support will be continued for U.S. participation in the Indian Ocean Expedition and in the International
Year of the Quiet Sun. Additional funds are estimated in 1965 for
university nuclear research facilities, university computing facilities,
and specialized biological facilities. Support of the National Center
for Atmospheric Research and of two astronomy observatories will
continue, with provision in 1965 for the start of construction of a 150inch optical telescope at Kitt Peak, Ariz. In addition, the Foundation is planning a substantial increase in its program of matching
grants for facilities related to research and science training.
DEPARTMENT OF AGRICULTURE

Expenditures of the Department for the conduct of research and
development are estimated at $187.2 million in 1965 as compared with
$181.4 million in 1964 and $162.4 million in 1963. The net increase of
$5.8 million in expenditures is composed of a number of expanded
research activities partly offset by the closing of several low priority
research locations. Funds will be available for staffing and operating
soil and water, entomology, poultry, and other laboratories recently
authorized by Congress. Research will be expanded on biological
controls, on nonchemical control methods, on the effects of pesticides
on animals, on pesticide residues in soils, on forest tree genetics, and
on other measures to avoid or minimize pesticide hazards.

416

THE BUDGET FOR FISCAL YEAR

1965

Additional funds will be available to continue the forest survey
and research on forest land management, including watershed studies.
Wood products research will be expanded and an addition to the
Forest Products Laboratory in Madison, Wis., will be started. Steps
will be taken to implement the Department's program in food and
nutrition research. Construction funds will be available to modernize
and rehabilitate portions of the National Agricultural Research Center
at Beltsville, Md., and to construct a new facility at Fort Collins,
Colo., to replace temporary buildings; $1.4 million additional will be
available for institutional-type grants to the agricultural experiment
stations at the land-grant universities.
Funds are being requested for the construction of the National
Agricultural Library at Beltsville, Md. Planning money was made
available in 1964.
Research projects overseas financed in excess currency countries
under Public Law 480 will be expanded to include basic studies of
value to agriculture.
DEPARTMENT OF THE INTERIOR

Expenditures of the Department of the Interior for research and
development are estimated at $130.8 million, compared with $116.1
million in 1964 and $100.4 million in 1963. About 22% of the 1965
amount will be spent on development programs including the construction of research facilities; 47% on applied research; and the
remainder on basic research. Programs of the Bureau of Mines,
Fish and Wildlife Service, Geological Survey, Office of Coal Research,
and the Office of Saline Water make a significant contribution to the
research and development activities of the Department.
The 1965 budget provides for continuing research directed primarily
at improving the conservation and use of water, parks and monuments, fish and wildlife, minerals, and other natural resources. Increased emphasis will be given to the study of the toxicological effects
of pesticides on fish and wildlife; and to the biological aspects of the
national oceanographic program. Geophysical and geochemical
studies of the upper mantle of the earth's crust that may ultimately
improve the technology of locating deep-lying mineral deposits are
scheduled for major expansion. Programs to increase the use of and
expand the markets'for coal and coal products will increase. Basic
studies and investigations of groundwater and groundwater characteristics will be expanded; major efforts to discover low cost means of
converting saline to fresh water will be continued.
DEPARTMENT OF COMMERCE

Total expenditures for research and development are estimated at
$95 million in 1965, an increase of $9.3 million over 1964 and $28.5
million over 1963. Expenditures for research facilities decrease by
$1.7 million since construction of the new National Bureau of Standards laboratory complex will be substantially completed by the end of
the year. The $11 million net expenditure increase for the conduct
of research will provide modest strengthening of various programs for
transportation, business, and industry. Among these programs are

SPECIAL ANALYSES

417

weather prediction and forecasting, experimental nuclear ship operations, textile research, analysis of business conditions, and research
into transportation planning problems. Improvements are also forecast in oceanography and geodesy, Federal research report distribution and reference services, patent classification and search, and statistical measurement of economic and social characteristics.
Two new programs will be undertaken by the National Bureau of
Standards. Approximately half of the $4.2 million expenditure increase for these programs will be associated with contractual or
collaborative work. The National Standard Reference Data System
will constitute a comprehensive system for the identification, collection and verification of data on the properties and behavior of physical
materials. A program of engineering measurements and standards,
of principal benefit to consumer-oriented industry, will provide a basis
for collaboration with standardizing bodies and societies in the development of codes, standards, and methodologies of testing. Expansion
is planned particularly for the development of criteria for evaluating
the performance of industrial products and processes.
FEDERAL AVIATION AGENCY

The Federal Aviation Agency will continue its efforts to develop
improved devices for air navigation and air traffic control. In addition funds were appropriated in 1964 to finance a design competition
for the construction of a civil supersonic transport aircraft.
SELECTED SCIENTIFIC AND TECHNICAL ACTIVITIES OF THE FEDERAL
GOVERNMENT

The following section presents six scientific and technical activities
of the Federal Government on a Government-wide basis. In these
fields, and in many other fields, the Office of Science and Technology
in cooperation with the President's Science Advisory Committee and
the Federal Council for Science and Technology is active in improving
the planning, coordination, and review of Federal research and development programs. Expenditures for these scientific and technical
activities are included in the agency expenditures shown elsewhere in
this analysis.
MEDICAL RESEARCH

Federal expenditures for medical and health-related research
activities are estimated at $1.3 billion in 1965. Nearly two-thirds of
this amount is expended by the National Institutes of Health, a
component of the Public Health Service, Department of Health,
Education, and Welfare. The seven disease-centered institutes
were augumented in 1963 by two new institutes more oriented toward
basic research and the total human life cycle. The increases in 1965
support growth for these two institutes and provide for training of
additional research personnel, particularly in mental health. Over
$30 million of NIH funds will go to industrial firms for testing and
evaluation of new chemicals and drugs for the treatment of cancer,
cardiovascular diseases and mental illness. Other bureaus of the
Department of Health, Education, and Welfare are also expanding
700-000 0—64

418

THE BUDGET FOR FISCAL YEAR

1965

Table H-«. OBLIGATIONS OF FEDERAL AGENCIES FOR MEDICAL AND
HEALTH RELATED RESEARCH (in millions of dollars)
Agency

Department of Health, Education, and Welfare:
Public Health Service.
(National Institutes of Health)
Other
Total, Department of Health, Education, and
Welfare
Department of Defense
Atomic Energy Commission
National Aeronautics and Space Administration
Veterans Administration
Department of Agriculture
National Science Foundation
_
Other
Total, medical and health related research
Total, conduct of research....
Total, research facilities

1963
actual

1964
estimate

1965
estimate

686.6
(623.9)
19.9

825.6
(727.8)
29.4

905.7

706.5
92.5
77.9
34.7
34.0
25.1
28.8
6.0

855.0
107.8
82.8
50.3
38.0
24.6
29.2
7.6

943.1
108.8
94.9
66.2
47.1
25.5
32.2
7.6

1,005.5
923.4
82.1

1,195.4
1,084.7
110.7

1,325.5
1,185.4
140.1

Note.—Figures include obligations for research with other than medical or health objectives but
related to health in terms of substance or probable applications as follows in millions of dollars:
1963, $169.8; 1964. $198.3; 1965, $225.9.

their programs. The Food and Drug Administration is strengthening
its program of testing and evaluating new drugs, food and color
additives, and pesticides.
The National Library of Medicine will expand its Medical Literature
Analysis and Retrieval System (MEDLARS), which began operations
in 1963. This system will speed production of Index Medicus, the
monthly bibliography of medical research papers published throughout the world. It is also intended to make special bibliographic compilations.
The Atomic Energy Commission conducts and supports medical
research related to the effects of radiation and its beneficial application. Medical research supported by the Department of Defense is
focused on preventive medicine and the medical problems of military
operations. Over one-third of the National Science Foundation expenditures in this area, and all of the increases in 1965, are for research
facilities.
METEOROLOGICAL ACTIVITIES

The atmospheric science and weather service programs of Federal
agencies include both operational and research and development
activities.
Comprehensive arrangements have been established to coordinate
atmospheric science and weather programs. Operational activities
and research and development directed toward improvement of
operational weather services (other than the development of meteorological satellites and activities involving special military security
considerations) are coordinated by the Department of Commerce.

419

SPECIAL ANALYSES

That Department has also recently been made responsible for developing a plan to achieve the maximum integration of both weather
services and supporting research, consistent with the effective and
economical accomplishment of agency mission requirements. In
addition, the Federal Council for Science and Technology, through
its Interdepartmental Committee for Atmospheric Sciences, reviews
and evaluates all research and development in the field of atmospheric
sciences, including research supporting weather systems. Further
advice regarding these research and development activities is obtained
from a panel on atmospheric sciences of the President's Science
Advisory Committee.
The introduction of computers, radar, rockets, and satellites have
greatly enhanced capabilities for observing the atmosphere. Problems associated with air pollution, fallout of atomic debris, supersonic and space flight, and the possibility of weather control have
caused increasing emphasis to be given to the atmospheric sciences.
In 1965, funds programed for research and development in this broad
field (which includes studies of the upper atmosphere and the atmospheres of other planets as well as more conventional weather phenomena) are estimated to total $227 million, an increase of $26 million
over 1963. Of this total, $119 million is for aeronomy—the science
of the upper atmosphere. Meteorological programs, which are concerned with the behavior of the lower atmosphere (generally within
100 kilometers of the earth's surface) are described in detail below.
Table H-9. OBLIGATIONS FOR FEDERAL PROGRAMS IN METEOROLOGY
(In millions of dollars)
Summary Table
Research and
development

Operations
Agency

Department of Agriculture
Atomic Energy Commission _
Department of Commerce:
Bureau of Standards
Weather Bureau 1
Department of Defense:
Army
__
Navy
Air Force
Federal Aviation Agency
Department of Health, Education, and
Welfare
Department of the Interior
National Aeronautics and Space Administration. _ __ ______ __ _
National Science Foundation
Treasury Department: Coast Guard
Total

1963

1964

1965

mate

72.2

105.3

106.8

3.4
29.7
88.9
16.9

3.7
29.0
85.3
18.2

3.8
28.1
84.5
18.4

5.0

5.1

211.4

246.5

246.7

1965
Total

1964

1965

mate

1.2
4.0

1.3
4.3

1.3
6.3

.6
11.5

.9
11.2

1.1
14.4

1.1
121.2

11.2
4.9
11.3

10.4
5.7
11.5

11.2
5.8
12.4

4.3

1.4

1.5

15.0
33.9
96.9
19.9

1963

1.4

1.6

1.9

2.2

2.5

2.9

55.5
9.4

66.4
10.2

39.0
10.2

39.0
10.2
5.1

117.5

127.4

108.0

354.7

1 Includes $11.6 million in 1963, $38.4 million in 1964, and $35.3 million in 1965 for operational
satellite program.

420

THE

BUDGET FOR FISCAL YEAR

1965

The increase in obligations in 1964 over 1963 for both operations
and research results chiefly from acceleration of meteorological satellite
activities. In 1965 Weather Bureau obligations for satellite operations
will decrease $3.1 million and NASA obligations for development of
meteorological satellites by $27 million as its work on the TIROS and
NIMBUS spacecraft approaches completion. Exclusive of these
changes, civil programs show modest growth. Funds for military
meteorology remain at about $146 million through 1965.
Table H-10. OBLIGATIONS FOR FEDERAL METEOROLOGICAL
TIONS, 1965 (in millions of dollars)
Agency

Department of Commerce,
Weather Bureau
Department of Defense:
Army
Navy
_ _ __
Air Force
Federal Aviation Agency
Treasury Department: Coast
Guard
Total
1

73.0

23.6

OPERA-

Com muni-

Climatology

6.8

3.4

106.8

3.8
28.1
84.5
18.4

2.7
14.9
29.9
.9

7.2

5.9

33.4
.4

18.3
17.1

4.7

126.1

65.1

48.5

(i)

2.8
0
0

6.9

Total

5.1
246.7

Less than $50 thousand.

Weather service operations.—The Weather Bureau will place principal emphasis in 1965 on increasing its production of centrally prepared
computer products to provide field forecast and service units a
maximum amount of reliable guidance material on which to base
advisory services to specific user groups. Concurrently with the
expansion of central data processing facilities there will be a small
reduction in the number of local forecast and briefing outlets maintained by the Weather Bureau and the Federal Aviation Agency.
The military weather services utilize products of the national
meteorological system in order to provide direct support to field forces
throughout the world. The Air Force and the Navy also perform
aircraft weather reconnaissance at a cost of approximately $14 million
annually. The amounts reported include the estimated costs of
maintaining military personnel performing weather activities and
funds for procurement of equipment, estimated to increase slightly
in 1965.
The weather service activities of the Coast Guard and Federal
Aviation Agency support the national meteorological system. The
Coast Guard finances the operation of multipurpose ocean station
vessels. About 25% of this cost is ascribed to meteorology. The
Federal Aviation Agency provides teletype communications for both
Weather Bureau and military use. In 1965, it will achieve a $0.5
million reduction in these costs by leasing teletype lines through joint
procurement contracts with the Department of Defense.
A significant development in the usefulness of satellite observations
results from the procurement of equipment capable of receiving cloud
cover TV pictures directly from an overflying spacecraft. These

421

SPECIAL ANALYSES

equipments both reduce the need for expensive ground communications and speed up receipt of data. In excess of 20 such equipments
are now operating in the United States; an additional 20 sets have
been obtained by the military services for use overseas; and 8 more
have been purchased or constructed by foreign governments.
Table H I 1. OBLIGATIONS FOR FEDERAL METEOROLOGICAL RESEARCH
AND DEVELOPMENT PROGRAMS, 1965 (in millions of dollars)

Physics Motions Weather
and
service
of the
phere

Department of Agriculture
Atomic Energy Commission
Department of Commerce:
Bureau of Standards
Weather Bureau
Department of Defense:
Army
Navy
Air Force
Federal Aviation Agency
Department of Health, Education, and Welfare
Department of the Interior
National Aeronautics and Space
Administration
National Science Foundation
Total.

Clima-

opment

Satellite
and
other

Facilities,
net-

ment
devel-

and
support

1.3
6.3

2.9

1.3
3.4

1.1
1.9

5.3

4.7

1.0

1.2
2.9
5.0

3.9
.9
2.0

1.5
.5
3.9
1.5

.4
.1
.5

1.4
1.4
1.1

2.7
.1

.7
.2

1.1
1.4

.1
.5

3.9

5.4
24.7

.4
12.8

2.2

11.2
5.8
12.4
1.5
1.9
2.9

39.0
19.8

1.1
14.4

39.0
10.2
108.0

Research and development.—Activities reported in the table above
are directed to increasing understanding of the physical and chemical
properties, composition, behavior and processes of the lower atmosphere and to improving the weather service system. Expenditures
for a number of closely related activities concerned with the effects of
the atmosphere on plants and animals are excluded, as are engineering
projects to apply meteorological science 1to specific problems such as
ballistics and the control of air pollution.
A $2 million expansion of the atomic energy program is planned in
1965 in order to improve understanding of transport and fallout of
radioactive materials. The $3.2 million increase projected in the
Weather Bureau research and development program will be directed
principally to operations research designed to improve the efficiency
of that Bureau's operations. In addition, the Weather Bureau plans
to participate in international efforts to improve the observation and
exchange of weather data.
In 1964 financing will be completed for the initial construction
planned at the National Center for Atmospheric Research, financed
by the National Science Foundation. The Center's program will be
1
Re-examination of the HEW program in reference to this definition has caused a large proportion of amounts previously reported by this agency to be excluded from its 1965 report of
meteorological research and development obligations.

422

THE BUDGET FOR FISCAL YEAR 1965

expanded in 1965 to provide more funds for study of basic atmospheric
problems and to provide facilities not elsewhere available for use by
the scientific community.
OCEANOGRAPHY

The National Oceanographic Program of the Federal Government
for 1965 will total $138.1 million. This program is reviewed and coordinated on a Government-wide basis by the Interagency Committee
on Oceanography of the Federal Council for Science and Technology.
This committee appraises various agency programs to direct effort
toward long-range goals, avoid overlapping work, and support new
and priority projects.
Table H-12. OBLIGATIONS OF FEDERAL AGENCIES FOR OCEANOGRAPHY
(In millions of dollars)
Agency

1963
actual

Departments of:
Commerce
Defense
_
Health, Education, and Welfare
Interior
•____
Treasury
r__
Atomic Energy Commission
National Science Foundation
Smithsonian Institution

1964
estimate

1965
estimate

23.7
54.6
2.9
16.5
1.2
4.2
20.2
.6

20.5
66.6
3.3
19.7
1.8
4.7
20.6
.9

123.7

123.9

138.1

23.7
55.5
4.1
16.1
.5
3.5

19.7

Total

The 1965 effort in oceanography is $14 million larger than the 1964
program with continued growth in research partially offset by a
reduced level of ship construction. Research in the ocean environment is particularly important to provide the United States a scientific
and technological base for future exploitation of the oceans for fish
protein and minerals and to provide needed environmental information
for weather prediction, assessment of ocean pollution, and antisubmarine warfare.
Table H-13. OBLIGATIONS FOR OCEANOGRAPHY BY FUNCTIONAL AREA
(In millions of dollars)
1963

Ship construction __
Surveys and data collection in support of research and agency
missions
Research, instrumentation, and facilities (Navy)
Research, instrumentation, and facilities (Civil)
Total- -

1964

1965
e»t ate

37.3

27.4

21.4

18.7
26.7
41.0

22.9
31.9
41.7

26.1
41.2
49.4

123.7

123.9

138.1

423

SPECIAL ANALYSES

As shown in table H-13 the oceanographic program includes research, development of instrumentation-and facilities (66%), ocean
surveys and data collection (19%) and ship construction (15%). The
research program is directed to the description and understanding of
the physical and chemical properties of the "world ocean"; the effect
of the interrelationship of the ocean and the atmosphere; the distribution of marine organisms; the present structure of the ocean floor
and its history; and the modification of the ocean by human activities.
The survey program provides basic data to support the research
program.
SPACE PROGRAMS

As shown on table H-14, expenditures for the total Federal space
programs are estimated at $6.7 billion in 1965, a $555 million increase
over 1964. New obligational authority decreases $97 million from the
high level of $7 billion reached in 1964. Virtually all of the amounts
for the space programs are classified as research and development and
are included in the totals in this special analysis.
Table H-14. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES FOR
FEDERAL SPACE PROGRAMS (in millions of dollars)
NEW OBLIGATIONAL
AUTHORITY

Agency

National Aeronautics and
Space Administration 1
Department of Defense
Atomic Energy Commission.
Department of Commerce:
Weather Bureau
National Science FoundationTotal
1

EXPENDITURES

1963

1964

1965

1963

1964

3,626.0
1,579.3
213.9

5,189.5
1,615.8
227.6

5,230.8
1,474.1
212.7

2,515.3
1,367.5
181.0

4,354.8
1,583.0
217.7

4,939.1
1,548.0
220.4

43.2
1.5

2.7
2.4

20.8
2.9

12.2
1.1

19.0
1.5

21.7
1.8

5,463.9

7,038.0

6,941.3

4,077.1

6,176.0

6,731.0

1965

Excludes aircraft technology.

The amounts shown for the National Aeronautics and Space Administration coyer all activities of that agency except those specifically
identified with aircraft technology. The estimates for the Department of Defense include the projects in the Department's astronautics
budget activity and certain amounts in other budget programs which
contribute to the space effort, such as missile development, range
operations, and various other supporting research, development, and
operating costs. The decrease in the Defense new obligational authority request in 1965 is largely due to the cancellation of Dynasoar
and the lower funding for the development of Titan III, which will
be nearing completion at the end of 1965. For the Atomic Energy
Commission, the table includes the amounts associated with the
development of nuclear rocket propulsion and nuclear power sources

424

THE BUDGET FOR FISCAL YEAR

1965

for space applications and amounts for aerospace safety and reactor
research. The Weather Bureau amounts are primarily those related
to the establishment of an operational meteorological satellite system
which, therefore, are not included in the totals for research and development in this special analysis. The amounts for the National Science
Foundation are for research in astronomy using rockets and satelliteborne observation instruments.
WATER RESEARCH

The Federal program for water resources research will total an
estimated $73 million in 1965.
TableH-15. OBLIGATIONS OF FEDERAL AGENCIES FOR WATER
RESEARCH AND SURVEYS (in millions of dollars)
Agency

Departments of:
Agriculture.
Commerce
Defense
Health, Education, and Welfare
Interior
Atomic Energy Commission
National Science Foundation
Tennessee Valley Authority..
Total
1

__._

1963
actual

1964

1965

12.1
1.7
2.4
18.2
24.5
3.9
1.9
.8

11.7
2.0
3.4
16.6
31.0
3.3
2.0
.9

12.8
2.6
3.4
M2.1
36.0
3.0
2.2
1.0

65.5

70.9

73.1

Reduction reflects nonrecurring construction costs of research laboratory facilities.

The Committee on Water Resources Research of the Federal Council
for Science and Technology coordinates the activities of the eight
major Federal agencies whose missions require the conduct of research
relating to water. The Committee was organized in September 1963
and provided a broad review of proposed agency programs for 1965
to assure that they were mutually complementary and to avoid
unwarranted duplication. r
The major portion of the increase in the Department of the Interior
is for water quality research related to pesticides and ground water
research. The Department of Agriculture is expanding its program
of research in water and land management.
The decrease for the Department of Health, Education, and Welfare reflects the completion of construction of new laboratory facilities.
Other agency programs include modest increases in the conduct of
water resources research to meet growing national needs.

SPECIAL ANALYSES

425

SCIENCE INFORMATION

Under the impetus of the Committee on Scientific Information of the
Federal Council for Science and Technology, individual agencies are
improving their scientific and technical information programs. Examples of such activity include the recent reorganization of the Armed
Services Technical Information Agency, redesignated the Defense
Documentation Center, to cope with the increasing demands for its
services; the establishment by the National Library of Medicine of
MEDLARS, a computerized system designed to speed the access to
medical research literature; the standardization of microforms for
Government research and development documents; and the establishment of a standard descriptive cataloging system for the Federal
Government. Further, the agencies continue their efforts to obtain
more reliable cost data on science information activities to assist them
in formulating more comprehensive program objectives and in developing measures for management improvement.
The budgetary data available for 1965 reflect a recognition that
the timely flow of scientific and technical information is essential
to the prudent management of the Nation's research and development
programs. Increased research and development is planned for scientific communication and documentation particularly in the area of
advanced mechanization techniques. Increases are also programed
for the publication and distribution of documents to coincide with the
anticipated growth of published scientific materials and for bibliographic and reference services to reflect agency expansion of these
services and the establishment of new specialized information and
evaluation centers. Also reflected in the 1965 budget are certain
recent Federal policy decisions designed to improve the handling of
scientific and technical information. These include the establishment
of a National Standard Reference Data System at the National
Bureau of Standards to provide scientists and engineers with critically
evaluated numerical data in the physical and engineering sciences
necessary for the research and development process and the transfer
to the National Science Foundation of fiscal and managerial responsibility for the Science Information Exchange. Budgetary increases
are also programed for the SIE to permit continuation of its expanded
coverage of the physical sciences and for the Office of Technical
Services of the Department of Commerce to reflect its growing clearinghouse function for Government research and development
documents.

426

THE BUDGET FOR FISCAL YEAR 1965

Table H-16. ADMINISTRATIVE BUDGET EXPENDITURES FOR FEDERAL
RESEARCH AND DEVELOPMENT PROGRAMS (in millions of dollars)
Based on existing and proposed legislation
Conduct of research and
development
Description

1963
actual

Department of Agriculture:
Agricultural Research Service _ _
Cooperative State Research Service
Economic Research Service
Agricultural Marketing Service
Forest Service
Other _
Total, Department of Agriculture..
Department of Commerce:
Civilian industrial technology.
National Bureau of Standards
Weather Bureau
Maritime Administration
Transportation research
Other
.

Department of Defense:
Military
w
Civil

Total, Department of Defense
Department of Health, Education, and
Welfare:
Food and Drug Administration
_
Office of Education
L
Office of Vocational Rehabilitation
Public Health Service
Welfare Administration

1965
mate

1963

1964

1965

mate

85.9
38.0
9.7
4.5
22.3
1.9

97.0
41.6
9.8
5.7
24.8
2.5

102.2
42.5
9.5
4.6
25.9
2.5

5.0

3.4

3.5

3.4

.5
.4

2.6
.3

162.4

181.4

187.2

8.4

4.2

6.4

.1
25.2

19.0

35.2

33.5

5.4

8.0
1.0
6.7

.8
29.5
12.2
9.0
1.5
8.5

45.9

50.5

61.5

20.6

35.2

33.5

6.791.0 7,344.0 6,991.4
2.7
4.4
4.1

55.2

101.8

111.3

6.793.6 7,348.1 6,995.8

55.2

101.8

111.3

1.1

.7
.5

39.5

56.8

66.8

23.3
9.2
8.0

Total, Department of Commerce. __

1964
mate

Research and development
Facilities

3.6

9.5

1.6

11.5
12.1
550.6

4.4
18.2
16.8
649.9

5.2
23.8
18.5
673.4

3.3

6.2

6.9

581.1

695.6

728.0

40.1

58.0

67.9

26.7
28.9

29.8
30.4

32.7
31.5

.1
.4

.2
.5

1.0
.4

3.9

2.5
3.3
1.6

6.4
1.7
.5

9.2
1.4
2.7

116.1

7.9

9.3

14.7

1,077.8 1,236.7 1,242.1
Atomic Energy Commission
63.3
69.1
109.3
Federal Aviation Agency
National Aeronautics and Space Administration
2,327.1 3,925.0 4,470.0
143.0
126.8
National Science Foundation
99.6
35.9
29.9
Veterans Administration
34.3
39.1
50.4
Other
49.4

257.6
9.2

306.4
16.3

314.8
12.4

225.3
42.5

475.0
48.3

520.0
61.0

3.2
1.1

3.1
1.6

3.0
2.8

Total, Department of Health, Education, and Welfare
Department of the Interior:
Geological Survey
Bureau of Mines
Office of Coal Research
Fish and Wildlife Service
Office of Saline Water
Other
_

...

Total, Department of the Interior. _

1.5

4.4

4.8

26.8

28.8

5.4
3.2

9.3
4.1

32.6
10.6

92.5

106.3

Total, research and development . . . 11,312.3 13.823.8 14.139.3

671.1 1.059.2 1.147.8

SPECIAL A N A L Y S I S

FEDERAL AID TO STATE AND LOCAL GOVERNMENTS

Federal aid to State and local governments in recent decades has
become a major factor in the cooperative financing of essential government functions. The rudiments of the present system date back
about 100 years to the enactment in 1862 of the Morrill Act, which
established land-grant colleges and instituted certain federally required minimum standards characteristic of the present grant-in-aid
system. Federal aid was later initiated for agriculture, highways,
vocational education and rehabilitation, forestry, and public health.
In the depression years, Federal aid was extended to meet economic
security and other social welfare needs.
In 1965 Federal financial assistance to State and local governments
under existing or proposed programs will total an estimated $10.6
billion, including net expenditures of $6.5 billion from regular budget
accounts and $4 billion from the Highway and Unemployment trust
funds. The total includes $188 million under proposed legislation,
of which $70 million is for education, $55 million is for youth employment programs, and the remaining $63 million is for community worktraining, increased contributions to the District of Columbia, urban
transportation assistance, recreation planning and land acquisition,
and hospital construction.
Federal Aid to State and Local Governments
Budget and Trust Fund Expenditures

428

THE BUDGET FOR FISCAL YEAR 1965

The growth of Federal aid programs.—In 10 years, total Federal aid
to State and local governments will have more than tripled, rising
from $3.1 billion in 1955 to an estimated $10.6 billion in 1965. In the
same period, expenditures by State and local governments from
their own funds will have more than doubled. Although the number
and variety of Federal aid programs have increased markedly in the
last several decades, more than 60% of total expenditures in 1965 for
assistance to State and local governments will be for highway construction and public assistance grants. In the decade ending in
1965, highway construction grants will have increased more than
sixfold, rising from $586 million in 1955 to an estimated $3.6 billion
in 1965, the largest increase in Federal aid for any purpose during this
period. Grants for public assistance will have doubled since 1955,
increasing from $1.4 billion to an estimated $2.8 billion in 1965.
Increasing population and rapid urbanization have led to greater
responsibility, particularly at the State and local level, for providing
essential public services in education, health, housing, urban renewal,
highways and public transportation. Continuing economic change
has stimulated programs for safeguarding the economic security of
individuals. While the major burden of such public services rests
with the approximately 90,000 State and local governmental jurisdictions, the Federal Government plays a vital role, both through direct
operation of programs and by providing financial assistance to State
and local governments.
The provision of public services can be facilitated through improved
intergovernmental cooperation and coordination concerning revenue
sources and expenditure programs. The Advisory Commission on
Intergovernmental Relations, established in 1959 for this and other
purposes, is continuing to make valuable contributions in identifying
areas in which interlevel action could improve the efficiency of the
several levels of government in our Federal system.
Major program changes for 1965.—For 1965, the total of budget
and trust fund expenditures under existing and proposed programs
for financial assistance to other levels of government is expected to be
$391 million more than in 1964 and $1.8 billion more than the actual
total for 1963. This change reflects both significant increases and
decreases in several of the grant-in-aid programs. The major increases over the 1964 estimate are expected to be in the educational
assistance programs which are estimated to rise by $213 million to a
total of $798 million reflecting recently enacted higher and vocational
education bills and proposed new legislation; in the housing and
community development programs which will rise by $190 million to a
total of $705 million; and in total Federal aid to highway construction
which is estimated to increase by $94 million to $3.6 billion. Smaller
increases will occur in other programs including employment service,
school lunch, environmental health, and maternal and child welfare
programs.
Significant decreases in 1965 are expected to occur (1) in the distribution of surplus food commodities which will decline by $75 million
(2) in accelerated public works which will decline by $17 million and
(3) in public assistance, where a decline in expenditures of $132
million will be offset by a drawing down of cash balances held by the
States, so that obligations in 1965 will continue to increase. Smaller

429

SPECIAL ANALYSES

decreases occur in national defense, disaster relief, and community
health programs, and in special grants to Alaska.
New legislation proposed for 1965.—Federal aid to State and local
governments will be affected by several of the recommendations for
legislative change which are provided for in the 1965 budget. A
large part of the $718 million in total new obligational authority
requested for education legislation will be for aid to State and local
governments. Because expenditures lag behind authorizations, however, it is expected that there will be only $70 million in expenditures
for grants-in-aid in 1965. Grants under the Youth Employment
Act, pending in Congress, are estimated to be $55 million in 1965.
Among the other recommendations for legislative change for which
specific amounts are included in this analysis are: (1) recreation
planning and land acquisition, $9 million; (2) urban transportation
assistance grants, $10 million; (3) increased Federal payments to the
District of Columbia, $5 million; (4) hospital construction activities,
$5 million; and (5) community work-training programs, $35 million.
Federal aid programs by Junction and agency.—In 1965, Federal aid
for health, labor, and welfare activities will amount to $4.2 billion,
40% of the total. Of this amount $3.4 billion, including $2.8 billion
for public assistance grants, will be for programs administered by the
Department of Health, Education, and Welfare. About 38% of
total Federal aid, or $4 billion, will be spent for commerce and transportation activities of which highway construction under the Department of Commerce will account for $3.6 billion. Most of the
remaining 22% will be distributed among education (8%), housing
and community development (7%), and agriculture and agricultural
resources (5%). The detailed table at the end of this analysis lists
the various programs of Federal aid to State and local governments
by function, type of aid, agency, and major program groups.
Table 1-1. FEDERAL-AID BUDGET AND TRUST FUND
BY AGENCY (in millions of dollars)
Agency

Executive Office of the President
Funds appropriated to the President
Department of Agriculture
Department of Commerce
Department of Defense—Military
Department of Defense—Civil
Department of Health, Education, and WelfareDepartment of the Interior
Department of Labor
.
Department of State
Treasury Department
Federal Aviation Agency
General Services Administration
Housing and Home Finance Agency
Veterans Administration
Other independent offices
District of Columbia 1
Total, budget and trust fund expenditures for Federal aid_

EXPENDITURES

1963
actual

1964
estimate

48.7
848.3
3,028.3
40.5
18.6
3,628.9
138.8
330.4
7.3
58.1
51.5

.4
298.3
979.0
3,570.4
42.5
18.0
3,967.0
145.8
408.5
5.6
58.7
75.3

502.6
8.2
7.7
62.7

525.7
8.3
8.6
63.2

1.5
266.0
916.2
3,668.1
37.0
16.5
4,086.7
154.0
487.0
5.6
61.0
75.7
2.0
688.5
7.9
8.9
85.2

8,780.7

10,177.0

10,567.7

1.5

1965
estimate

1
Represents Federal payments, contributions, and loans to the District of Columbia for operations
and capital improvements.

430

THE

BUDGET FOR FISCAL YEAR

1965

In 1965, Federal-aid budget and trust fund expenditures will be
incurred primarily under programs administered by the Department
of Health, Education, and Welfare (39%) and the Department of
Commerce (35%). Federal-aid expenditures by other agencies
will make up the remaining 26% of the total, with the largest amounts
by the Department of Agriculture, 9%; the Housing and Home
Finance Agency, 7%; and the Department of Labor, 5%.
Federal aid in relation to total Federal and State-local

outlays.—

Estimated Federal aid in 1965 to State and local governments from
budget accounts alone of $6.5 billion will represent approximately
7% of total Federal budget expenditures. Total financial aid from
budget and trust accounts of $10.6 billion will represent about 9% of
estimated total Federal cash payments to the public. As a source of
State and local revenue, Federal-aid payments from both trust fund
and budget accounts in 1963 was about one-seventh of all general
revenue available to/ these jurisdictions.
Table 1-2. F E D E R A L - A I D E X P E N D I T U R E S I N R E L A T I O N T O T O T A L
FEDERAL EXPENDITURES A N D T O STATE-LOCAL REVENUE
Net budget expenditures
-»

^faf«

Amount
(millions)

1954
1955
1956
.
1957
1958 . . .
1959
1960 __
.
1961
1962
_
1963
1964 estimate
1965 estimate

__. - .

...

_ _

$2,657
3,124
3,753
3,159
3,576
4,012
4,259
4,326
4,966
5,453
6,252
6,520

Total expenditures for aid to State

on/]

trust accounts

local governments
As a percent of total
Federal
administrative budget
expenditures
4
5
6
5
5
5
6
5
6
6
6
7

Amount
(millions)

$2,657
3,124
3,753
4.111
5,072
6,813
7,174
7,283
8,167
8,781
10,177
10,568

As a percent of total
cash payments to
the public

As a percent of
Statelocal
revenue l

4
4
5
5
6
7
8
7
8
8
8
9

10
11
12
11
12
15
14
13
14
14
(2)

1
Based on compilations published by Governments Division, Bureau of the Census. Excludes
State-local
revenue from publicly operated utilities, liquor stores, and insurance trust systems.
3
Not available.

Types of Federal aid.—Federal financial assistance to State and local
governments takes the form of direct grants-in-aid, shared revenue,
and net loans and repayable advances. Grants to States and localities
are the most significant type of Federal aid. In 1965, it is estimated
that $10.2 billion or 96% of total expenditures for all three types of
aid will take the form of grants-in-aid. Shared revenue will account
for $183 million, or 1.7%, and net loans and repayable advances,
$203 million, or 1.9% of the grand total. Apart from these types of
Federal aid, many other Federal expenditures which are not included
in this analysis, such as contractual payments or grants to public
institutions for research and training in special fields, affect the
finances of State and local governments.

431

SPECIAL ANALYSES

Table 1-3. FEDERAL AID TO STATE AND LOCAL GOVERNMENTS
(In millions of dollars)
Agency and program

Func-

1963

1965
stimate

1964

code

BUDGET ACCOUNTS *
Grants-in-aid
National defense:
Executive Office of the President:
Office of Emergency Planning: Federal contributions
and State and local planning
Department of Defense—Military: Civil defense shelters
and financial assistance
Construction of Army National Guard centers

059

1.5

21.3
19.2

27.5
15.0

27.0
10.0

40.4

42.9

38.5

153

7.3

5.6

351

353.5

416.2

340.8

354
355
355

57.5
72.0
37.0

57.4
77.4
40.2

59.6
75.1
41.2

355

1.4

1.5

1.4

521.4

592.7

518.2

402

16.0

28.5

17.6

401

17.0

8.4

12.4

401
401
403
404

.1
.7

.8
.4

20.0

.2
.8
.2
17.2

53.9

55.2

507

15.1

260.8

243.5

502
503
503
507
501

.4
38.6

.4
39.6
2.0
10.0
75.3

.4
39.9

051
051

Total, national defense.
International affairs and finance:
Department of State: East-West Cultural and Technical Interchange Center
Agriculture and agricultural resources:
Department of Agriculture:
Commodity Credit Corporation and Agricultural
Marketing Service: Removal of surplus agricultural
commodities and value of commodities donated
Watershed protection, flood prevention, and resource
conservation and development
Cooperative agricultural extension work
Agricultural experiment stations
Payments to States, territories, and possessions, Agricultural Marketing Service
Total, agriculture and agricultural resources.
Natural resources:
Department of Agriculture: Forest protection and utilization
Department of Defense-Civil: Corps of Engineers:
Payment to California, flood control__
Department of the Interior:
Bureau of Reclamation: Disposal of Boulder City and
Coulee Dam communities
Bureau of Indian Affairs: Resources management
Drainage of anthracite mines
Federal aid for fish and wildlife restoration
,..
Proposed legislation: Land and water conservation
fund: Recreation planning and land acquisition

405

Total, natural resources.
Commerce and transportation:
Funds appropriated to the President: Public works
acceleration
Department of Commerce:
State marine schools
Forest and public lands highways
Control of outdoor advertising
Area redevelopment assistance
Federal Aviation Agency: Federal-aid airport program.
See footnotes at end of ^able, p. 435.

20.0

8.8

2.9
51.5

60.0

11.0
75.7

432

T H E BUDGET FOR FISCAL YEAR

1965

Table 1-3. FEDERAL AID TO STATE AND LOCAL GOVERNMENTS
(In millions of dollars)—Continued
Agency and program

1963

1964

1965

code

BUDGET ACCOUNTS i—Continued
Grants-in-aid—Continued
Commerce and transportation—Continued
Small Business Administration: Research and management counseling
-.

506

Total, commerce and transportation.
Housing and community development:
Housing and Home Finance Agency:
Low-income housing demonstration program
Low-rent public housing program
Urban renewal and planning
Proposed legislation: Urban transportation assistOpen space program
_
National Capital Planning Commission: Acquisition of
lands in Maryland
District of Columbia:
Federal payment and contribution
Proposed legislation: Increased payments

551
552
553

108.6

388.4

370.5

.1
170.3
199.3

2.0
191.0
252.0

3.0
208.2
331.6

8.7

9.6
14.6

555

555
555

30.3

37.5

50.0
4.8

400.2

491.3

621.9

30.5

34.5

22.4

281.1

320.1

339.2

182.5

190.1

192.0
5.0

(113.0)
51.7
34.5
5.8

(114.0)
75.0
50.2
6.3

(119.0)
75.0
41.4
13.0

18.7

10.0

73.4
.3
1.5
.3

94.0
.2

10.0
3.0
116.0

1.2

2,729.6

2,947.6

73.2

""89~5

2,781.0
35.0
93.2

5.0

55.0

3,483.0

3,823.5

3,782.5

701

330.0

339.1

386.6

701
704

48.1
14.9

60.6
16.9

74.8
17.0

Health, labor, and welfare:
655
Funds appropriated to the President: Disaster relief
Department of Agriculture: School lunch, special milk,
655
and food stamp programs
Department of Health, Education, and Welfare:
651
Hospital construction activities.
Proposed legislation: Hospital construction activities. 651
2
651
Portion to private, nonprofit institutions
651
Construction of waste treatment facilities
Community health activities
651
Environmental health grants
651
National Institutes of Health:
651
Operating grants
651
Mental health facilities
651
Maternal and child welfare
651
Mental health facilities, Alaska
651
Hospital and medical care, Hawaii
651
Indian health facilities. *
653
Public assistance
__
653
Proposed legislation for community work-training
655
Vocational rehabilitation
Department of Labor: Proposed legislation for youth employment opportunities
652
Total, health, labor, and welfare.

553
553

Total, housing and community development.

Education:
Department of Health, Education, and Welfare:
Assistance to schools in federally affected areas
Defense educational activities:
Assistance for elementary and secondary education.
Other aid to education
_
See footnotes at end of table, p. 435.

433

SPECIAL ANALYSES
Table 1-3. FEDERAL AID TO STATE AND LOCAL GOVERNMENTS
(In millions of dollars)—Continued
1964

1963

Agency and program

1965

code

BUDGET ACCOUNTS i—Continued
Grant s-in-aid— Cont in ue d
Education—Continued
Department of Health, Education, and Welfare—Con.
Higher education construction
Assistance to land-grant colleges
Vocational education
Grants for library services. _
Teaching of the blind
Training teachers of the handicapped
Educational television facilities
Proposed education legislation
Department of the Interior: Bureau of Indian Affairs:
Education and welfare services

702
704
704
704
704
704
700

14.5
41.5
7*3
.7
.5

2.0
14.5
57.1
7.5
.7
.9
1.9
1.5

26.1
14.5
108.4
7.5
.8
3.8
4.8
69.9

704

7.7

8.6

9.1

465.2

511.3

723.3

7.4
.9

7.5
.8

7.5
.5

8.2

8.3
—

7.9

910

3.1

3.0

910

22.3

29.3

18.4

905

1.5

2.0

25.5

33.8

20.5

5,113.8

5,953.0

6,148.9

402

27.8

30.7

31.8

401

1.6

1.7

1.8

401

1.0

1.1

401
402
402
403

.6
15.4
.7
47.1

.6
15.0
.3
47.6

.6
18.0
49.3

404

1.3

1.2

2.2

Total, educationVeterans benefits and services:

Veterans Administration:
804
Aid to State homes _
State supervision of schools and training establishments- 805
Total, veterans benefits and services
General government:

Funds appropriated to the President: Transitional grants
to Alaska
.._.
Department of the Interior: Grants to territories and
Alaska public works
General Services Administration: Hospital facilities in
the District of Columbia. _
Total, general governmentTotal, grants-in-aid
Shared revenue
Natural resources:

Department of Agriculture: National forest and grassland funds, payments to States and counties
Department of Defense—Civil: Corps of Engineers:
Flood Control Act of 1954 payments. _
Department of the Interior:
Payments to States and counties from grazing receipts,
sales of public lands and proceeds, and national
grasslands
Boulder Canyon project, payments to Arizona and
Nevada
Oregon and California land-grant fund payments
Payments to Coos and Douglas Counties, Oregon
Mineral Leasing Act payments
Payments to counties, Migratory Bird Conservation
Act and national grasslands, and payments to
Alaska, Alaska Game Law and Pribilof Islands fund.
See footnotes at end of table, p. 435.

700-000 O—64

434

THE

BUDGET FOR FISCAL YEAR

19 6 5

Table 1-3. FEDERAL AID TO STATE AND LOCAL GOVERNMENTS
(In millions of dollars)—Continued
r

Agency and program

unc-

1963

1964

1965

code
BUDGET ACCOUNTS '—Continued
Shared revenue—Continued
Natural resources—Continued

Tennessee Valley Authority: Payments in lieu of taxes. _ 401
Miscellaneous shared revenue
400
Total, natural resources

7.3
.1

8.2
.1

8.8
.1

102.7

106.5

113.7

General government:

Department of the Interior: Internal revenue collections,
Virgin Islands
910
Treasury Department: Tax collections for Puerto Rico.. 910
Total, general government
Total, shared revenue

7.7

7.0

8.0

44.8

45.1

47.0

52.5

52.1

55.0

155.2

158.6

168.7

1.0

1.8

1.9

6.1

7.6

1.9

7.0

9.4

Loans and repayable advances (net)
Agriculture and agricultural resources:

Department of Agriculture:
Rural renewal
Watershed protection, flood prevention and resource
conservation and development

V>7
354

Total, agriculture and agricultural resources
Natural resources:

Department of the Interior: Irrigation projects

401

14.3

14.7

14.5

Commerce and transportation:
Department of Commerce: Area redevelopment

507

2.5

11.2

15.6

551
552
553
553

-1.3
-3.4
29.8
5.9
-13.2
32.4

-1.0
-56.3
33.7
3.5
18.0
25.7

-1.4
.2
31.15.2
18.0
30.4

50.1

23.6

83.5

115.0

74.0

68.3

6.6

74.3

74.9

Housing and community development:

Housing and Home Finance Agency:
Liquidating programs: Community facilities loans
Low rent public housing program
Public facilities
Public works planning
Urban renewal fund
District of Columbia: Capital outlays and operations

555

Total, housing and community development
Education:

Housing and Home Finance Agency: College housing. _.
Department of Health, Education, and Welfare:
Higher education construction
__
__
Total, education
See footi

nd of table, p. 435.

._.

702
700

115.0

435

SPECIAL ANALYSES
Table 1-3. FEDERAL AID TO STATE AND LOCAL GOVERNMENTS
(In millions of dollars)—Continued
Functional
code

1963
actual

1964
estimate

1965
estimate

BUDGET ACCOUNTS i—Continued
Loans and repayable advances (net)—Continued
General government:

Department of Defense—Civil: Corps of Engineers: Construction of power systems, Ryukyu Islands _
Department of the Interior: Alaska public works

7.9
2.0

2.2
2.9

9.9

5.1

184.0

140.8

202.9

5,453.0

6,252.4

6,520.5

503

2.984.0

3,507.2

3,601.2

652

330.4

403.5

432.0

3,314.4

3,910.7

4,033.2

13.3

13.6

14.0

13.3

13.6

14.0

Total trust fund

3.327.7

3,924.3

4.047.2

Total, budget and trust fund expenditures for Federal aid 3

8,780.6

10,176.7

10,567.7

910
910

Total, general government
Total, loans and repayable advances
Total, net budget expenditures

_ __

TRUST FUNDS
Grants-in-aid
Commerce and transportation:

Department of Commerce: Highway trust fund: Federal-aid highway program
Health, labor and welfare:

Department of Labor: Unemployment trust fund: Administration of employment security programs
Total, grants-in-aid
Shared revenue
General government:

Treasury Department: Bureau of Customs: refunds,
transfers, and expenses of operation, Puerto Rico and
the Virgin Islands
_ _ _ 904
Total, shared revenue

Note.— Detail will not necessarily add to totals because of rounding.
* Less than $0.05 million.
Many expenditures listed under budget accounts and trust funds are part of larger appropriation
ounts.
accounts
or trust accounts.
2
l
In
1965 $3.0 million
off this amount is contained under proposed legislation above.
3
The amount in 1963 for grants-in-aid and shared revenue from budget and trust accounts in
this analysis is identical with the $8,596.7 million distributed by States in the 1963 Annual Report
of the Secretary of the Treasury, table 95, part A, "Federal Aid Payments to State and Local Units."
1

SPECIAL ANALYSIS J

PRINCIPAL FEDERAL STATISTICAL PROGRAMS

This analysis summarizes the principal statistical programs of the
Federal Government in the 1965 budget which provide general-purpose
statistical information for the use of the Government and the public.
The programs are presented in two categories: current and periodic.
Fiscal 1965 recommendations for current programs, reflecting continuing year-to-year statistical activity in the various agencies, provide for a total of $94.3 million, an increase of $9.1 million over the
amount available for 1964. Recommendations for periodic programs—the large scale census-type surveys characteristically taken
once or twice a decade—amount to $26.5 million in obligations
for 1965.
The continuing objectives of the Federal statistical system are to
provide accurate, comprehensive, and timely data needed for the
operations of the Government, to furnish the public with information
about the functioning of the economy and the welfare of the people, and
to insure efficient utilization of Government resources and minimum
burden on respondents. The attainment of these objectives requires
continuous evaluation of the needs for statistical information. The
programs included in this budget reflect the most urgent of the specific
needs for data identified by Government agencies and emphasized
in appraisals of the adequacy of existing economic and social statistics
by the Joint Economic Committee of the Congress, the Subcommittee
on Census and Government Statistics of the House Committee on
Post Office and Civil Service, the President's Committee To Appraise
Employment and Unemployment Statistics and other groups representing business, labor, and research organizations.
The functions of collection, processing, and analysis of current general-purpose statistical information are often closely related to other
agency objectives. To indicate the interrelationships of the statistical
programs carried out by different agencies and to aid in evaluating the
Government's overall statistical system, the significant components of
current Federal statistical activity are brought together and classified
by broad subject areas in this special analysis. These areas and the
amounts involved are summarized in table J - l .
The current statistical programs included in this analysis represent
the entire programs of some agencies but only that portion of the
programs of other agencies constituting general purpose statistical
activity. Some statistical activity is not included.
The periodic statistical programs for which funds are provided in
1965 to the Bureau of the Census include the 1963 economic censuses,
the 1964 Census of Agriculture, initial phases of the national housing
inventory and preparatory work on the 1970 censuses. In addition,
modest provision is made for the Census Bureau's program to develop
and modernize automatic data handling equipment.
The agencies and amounts involved in botn the current and periodic
statistical programs included in this analysis are shown in table J-2.
436

437

SPECIAL ANALYSES

Table J-l. OBLIGATIONS FOR PRINCIPAL CURRENT STATISTICAL
PROGRAMS, BY BROAD SUBJECT AREAS (in millions of dollars)
Program

Labor statistics (Departments of Agriculture, Interior, and
Labor; National Science Foundation) _
Demographic and social statistics (Departments of Agriculture,
Commerce, and HEW; National Science Foundation)
Prices and price indexes (Departments of Agriculture, Commerce,
and Labor)
Production and distribution statistics (Departments of Agriculture, Commerce, Defense, and Interior; Civil Aeronautics
Board; Interstate Commerce Commission)
Construction and housing statistics (Department of Commerce;
Federal Home Loan Bank Board, Housing and Home Finance
Agency)
__
National income and business financial accounts (Departments
of Agriculture, Commerce, and Treasury; Securities and Exchange Commission, Federal Trade Commission)
Total, principal current programs _

1963
actual

1964
estimate

1965
estimate

17.8

21.1

23.8

14.3

16.5

18.3

4.6

5.1

5.7

29.5

31.6

33.7

2.3

2.7

4.0

7.5

8.2

8.8

76.0

85.2

94.3

CURRENT PROGRAMS

Labor statistics.—Expansion of statistical investigation in the field
of manpower and employment statistics was started last year in
response to the recommendations of the President's Committee To
Appraise Employment and Unemployment Statistics. In 1965, provision is made to expand the work on sharpening labor force concepts
initiated in 1964 with the establishment of a special sample of households; to study factors affecting labor force participation; to investigate
methods of strengthening State and area manpower estimates; and to
expand statistics on hours and earnings by industry and area. Funds
are also provided for enlarging and improving the sample for the
national professional, administrative and technical salary survey.
An increase for the National Science Foundation will allow additional scientific manpower studies to be undertaken, with particular
emphasis on estimating the demand for scientists of various types.
Demographic and social statistics.—Increases are recommended in
this area to enable the Bureau of the Census to expand its program
of current population estimates for metropolitan areas started last
year and to conduct basic work on the methodology of population
estimates. Funds are provided for the National Center for Health
Statistics to enable the agency to continue its development of health
record surveys and to initiate improvements in the collection of vital
statistics. Funds are also recommended to permit a substantial improvement of the basic statistical program of the Office of Education
including provision for pilot projects to develop a system for obtaining
uniform or compatible basic records from local areas to allow direct
computer processing and for strengthening the staff for planning,
research, and training.

438

THE BUDGET FOR FISCAL YEAR 1965

Table J-2. OBLIGATIONS FOR PRINCIPAL STATISTICAL PROGRAMS, BY
AGENCY (in millions of dollars)
Agency

1964
estimate

1963
actual

1965
estimate

CURRENT PROGRAMS
Department of Agriculture:
Economic Research Service.
Statistical Reporting Service
Department of Commerce:
Bureau of the Census
Office of Business Economics
Department of Defense: Corps of Engineers: Commercial statistics
Department of Health, Education, and Welfare:
Office of Education: Educational statistics
National Center for Health Statistics
Social Security Administration: Statistical and research activities
Welfare Administration: Statistical and research activities
Department of the Interior: Bureau of Mines: Mineral statistics.
Department of Labor:
Bureau of Employment Security: Statistical activities
Bureau of Labor Statistics
Office of Manpower, Automation and Training: Statistical
activities
Treasury Department: Internal Revenue Service: Statistical
reporting
Civil Aeronautics Board: Statistical and research activities
Federal Home Loan Bank Board: Statistical activities
Federal Trade Commission: Financial statistics
Housing and Home Finance Agency: Urban studies and housing
research
Interstate Commerce Commission: Transport economics and
statistics
National Science Foundation: Statistics and research
Securities and Exchange Commission: Operational and business
statistics-. _
Total, current programs

8.8
9.3

9.2
10.6

11.4

9.5

12.8
2.0

13.7
2.1

15.3
2.6

1.0

1.3
5.1

1.5
5.9

2.0
6.2

4.1
1.0
2.2

4.5
1.6
2.4

4.6
1.7
2.4

1.7
14.6

1.7
16.4

18.5

2.2

3.8

4.3
.4
.4
.3

4.5
.5
.4
.3

4.6
.5
.4
.3

1.5

1.3
2.6

1.4
2.9

1.5
3.5

76.0

85.2

94.3

2.5

PERIODIC PROGRAMS
Department of Commerce: Bureau of the Census:
Eighteenth Decennial Census
_
1962 Census of Governments
1963 economic censuses
1964 Census of Agriculture
Preparation for Nineteenth Decennial Census
Modernization of data processing equipment
National Housing Inventory
Department of Labor: Bureau of Labor Statistics: Revision of
Consumer Price Index
Total, periodic programs
Total, principal statistical programs _

2.8
.8
2.9
.5
4.0

.8
8.7
1.6
.7
4.5

1.4

12.3

U.7

26.5

8.3

102.9

120.8

7.0
16.5
1.1
.2
1.7

Prices and price indexes.—Additional funds for this area are requested to provide for collection of data on prices paid by consumers
for an improved sample of items and to extend the Consumer Price

SPECIAL ANALYSES

439

Index to the remaining 6 of the 22 Standard Metropolitan Statistical
Areas with 1960 population over a million persons. Funds are also
provided for the construction of wholesale price indexes for selected
industries on a basis comparable with that on which other major
economic measures are presented.
Production and distribution statistics,—A substantial part of the
increase for this activity supports the program to improve the crop
and livestock estimates initiated in 1961, and for continuation of the
program of expanded cattle-on-feed statistics started in 1964. Increases are provided to the Bureau of the Census to update the sample
of stores reporting retail trade statistics, to initiate a series on retail
inventories, and to improve export statistics.
Construction and housing statistics.—Most of the increase recommended in this area is for the Housing and Home Finance Agency to
strengthen and expand its statistical and research programs, primarily
in the field of basic housing market data. Additional funds are
provided for the Census Bureau to permit direct measurement of
construction projects in the western States.
National income and business financial accounts.—A major part of
the increase in this area is for the Department of Commerce to extend
and improve the basic information and estimates of the national
economic accounts. Particular emphasis is placed on the need to
meet an intensified demand for new information on the U.S. balance
of payments. Projects include the strengthening of the data and
analysis on international investments and transactions, improved estimates for the trade and service industries, extension of the detail for
income size distributions, and improvement in statistical techniques
for analysis of economic trends. Funds are also provided to the
Internal Revenue Service to permit greater utilization in tax administration and other uses of statistics developed from tax returns and
to the Securities and Exchange Commission for improvement of statistics on securities markets operations.
PERIODIC PROGRAMS

Major censuses for which funds are included in this budget are the
1963 economic censuses and the 1964 Census of Agriculture. In 1965,
work on the economic censuses covering manufacturing and mineral
industries, retail, wholesale and service trades, and selected areas of
transportation activity will consist primarily of the tabulation and
preparation of data for publication. The field enumeration of the
Census of Agriculture, which will occur in the fall of 1964 after completion of the 1964 harvest, represents the major portion of the
expenditure in the taking of this census. Provision is also made for
the initial phases of a National Housing Inventory to be taken in fiscal
1966 and on continuation of preparatory work on procedures for use in
taking the 1970 population and housing censuses. In addition, funds
are recommended to carry on the Census Bureau's program to develop
and modernize automatic data handling equipment.

SPECIAL ANALYSIS

FOREIGN CURRENCY AVAILABILITIES AND USES

Many agencies of the Government are engaged in activities throughout the world which involve payments in foreign currencies. From
some governmental activities, particularly the sale on concessional
terms of surplus agricultural commodities, foreign currencies accrue
to the Government without purchase with dollars. This analysis
presents in summary form data on foreign currency availabilities and
uses.
Most currencies accrue to the credit of the United States because
of past or current international agreements authorized under several
laws. In most cases, these international agreements deal (1) with
sales arrangements, wherein commodities (usually surplus agricultural commodities) are sold to foreign purchasers for local currencies, or (2) with loans, wherein dollars or foreign currencies themselves
are lent to foreign borrowers and may be repaid in the currency of
the borrower. Currencies also become available in much smaller
amounts under other kinds of international agreements and from the
normal operations of the U.S. Government abroad.
Table K-l. CASH AVAILABILITY OF FOREIGN CURRENCIES
(In millions of dollar equivalents)
1963
actual

For U.S. uses:
Excess currencies
Nonexcess currencies:
Restricted..
_
Unrestricted
Subtotal, for U.S. uses
For country uses
Total

_ _

1964
estimate

1965
estimate

1,142

1,315

1,520

237
203

175
i 339

38
306

1,582
2,658

1,728
2,742

1,864
2,758

4,240

4,470

4,622

1
Reflects transfer of $112 million of currencies previously restricted by administrative action
which became available for unrestricted use pursuant to Public Law 88-257.

Foreign currency availabilities are divided in table K - l between
those available for U.S. uses and those available for country uses. In
both cases the currencies belong to this Government and are kept in
Treasury accounts or those of other Government agencies. The
country use currencies, however, are committed by the terms of the
international agreements under which they are received to be used
on a loan or grant basis for mutually beneficial purposes in the country
by agreement with its government. U.S. use currencies, on the other
hand, are available for the purposes of U.S. agencies.
440

SPECIAL ANALYSES

441

U.S. use currencies are further divided between those which are
excess and those which are nonexcess. The excess currencies are
those of which the Treasury has found (after reviewing the amounts
of currency on hand, prospective receipts for U.S. uses, and prospective requirements) the supply to be great enough to more than
cover the demand for the next 2 or 3 years. For 1965, a prospective
excess condition is anticipated in Burma, India, Israel, Pakistan,
Poland, United Arab Republic (Egypt), and Yugoslavia. In addition
to these countries, Indonesia and Syria were designated as excess
currency countries during 1963, and Indonesia during 1964.
Some nonexcess U.S. use currencies are restricted by conditions
which have been placed on their use by international agreement.
Although the policy in recent years has been to avoid such restrictions,
some restricted currencies under old agreements are still on hand.
Up until December 31, 1963, some U.S. use currencies on hand were
also restricted by administrative action, authorized by law, reserving
currencies for use by specific programs. Section 508 of Public Law
88-257 authorizes the Treasury to maintain currencies reserved by
administrative action in "unfunded accounts." The equivalent of
approximately $112 million of previously reserved currencies was
made available for current unrestricted use, to be replaced when
needed for the purpose for which they were reserved. Estimates
for 1965 assume that this provision will be continued.
Limits on uses of foreign currencies.—International agreements, and
in many cases the nature of the economy on which they are a claim,
still restrict the use of the greater part of currencies accruing to the
credit of the United States.
First, sales of agricultural commodities, through which most of the
currencies are acquired, are often largely concessional. In these
transactions the international financial position of the purchasing
country is usually such that it must minimize the real cost of the sales
to itself in terms of export of its resources. As a result, large amounts
of currencies acquired by the United States from the sale of farm
commodities are restricted by the sales agreement so they can only
be loaned or granted back to the buying country.
Second, virtually all of the> currencies are inconvertible under the
laws and regulations of the purchasing countries. This means they
cannot be freely used to buy goods in third countries. Neither can
they be exchanged for another currency which we may be able to use.
Need for foreign currencies.—Many agencies of the U.S. Government carry on activities overseas in which foreign currencies are
needed. As indicated in table K-2, the need for foreign currencies
in U.S. operations often does not correspond to their availability on
a country-by-country basis. A strong effort is made at the time that
commodity sales agreements are negotiated to obtain the maximum
amount for U.S. uses to which the other government will agree, in
those countries in which we have an insufficient supply of currencies.
Despite this, in the normal course of its worldwide operations the
Government must purchase large amounts of the currencies of many
countries while at the same time it is accumulating large inconvertible
balances of others.

442

THE BUDGET FOR FISCAL YEAR 1965

Procedure for use of foreign currencies.—Normally, when an agency
requires foreign currencies to carry out its activities, the disbursing
officer must, by Treasury regulation, use currencies owned by the
U.S. Government if they are available. If the particular foreign
currencies required are not available, they must be purchased through
banking channels. Expenditures of U.S. owned currencies are
ordinarily charged to appropriations at the rate at which currencies
could be obtained for official U.S. disbursements. Thus foreign
currency expenditures are reported on a comparable basis whether
they are owned by the United States or obtained from commercial
sources.
U.S. use currencies expended for agency programs are generally
reflected in Treasury and agency accounts and in the budget as dollar
expenditures as they are used, with a corresponding credit to miscellaneous receipts or to the fund (e.g., Commodity Credit Corporation) which financed the transaction from which the currency derived.
Table K-2. FOREIGN CURRENCIES AVAILABLE TO MEET U . S .
REQUIREMENTS, 1965 (in millions of dollar equivalents)
Requirements
(expenditures)
Supply

Country

Other
than

Amounts
available
for use
after 1965

Special

programs

Excess currencies:
Burma
_
India
Israel
Pakistan . .
Poland
United Arab Republic (Egypt)
Yugoslavia

Total excess currencies
Nonexcess currencies:
Canada
France
Germany, Federal Republic of
Italy
iwuy

f*
Japan..
Korea _
Philippines
Spain
United Kingdom
Other countries

__ _

Total nonexcess currencies
Total
*Less than one-half million dollars.

__-

14
532
53

2
6
5

1
15
5

175
523

8
1

5
5

108
115

*
5

1.520

Requirements
for commercial
purchase
in 1965

11
511
43

162
518

7
2

101
108

1,455

1
3

110
179

11
12
4
14
3
15
10

1,068
47
252
56
33
65
91

*
1
*
*

271

299

4
151

344

2,200

165

2,028

2,226~

1,620

2,028

1,864

1
1

1
8
1

109
177
1,058
44
250
42
30
51
86

181

443

SPECIAL ANALYSES

U.S. uses of foreign currencies.—Table K-3 summarizes foreign
currency transactions of U.S. use currencies as they are reflected in
the budget.
Table K-3. SUMMARY OF FOREIGN CURRENCY TRANSACTIONS, U.S. USES
(In millions of dollar equivalents)
1964
estimate

1963
actual

Cash balances brought forward:
Excess currencies ___
Nonexcess currencies:
Restricted
Nonrestricted
Subtotal, cash balances brought forward

Collections:
Public Law 480 sales
„__
Foreign assistance programs
Other nonloan collections:
Sale of military supplies and equipment. _
Contributions for support of U.S. forces abroad
Surplus property and lend-lease
_
Informational media guarantees
Interest on public deposits
Miscellaneous
Loan repayments (principal and interest):
Public Law 480 loans
Foreign assistance loans (including Development Loan
Fund)
Subtotal, collections
_
Transfer of U.S. use currencies to country use _
Total availabilities

Expenditures:
Without dollar control
With dollar credits to^Miscellaneous receipts of the general fund
Commodity Credit Corporation, Agriculture
Informational media guarantee fund, USIA
Foreign buildings program, State.
Military assistance program, Defense.__
Subtotal, expenditures
_
Adjustments due to changes in exchange rates
Cash balances carried forward

_ _
_ __

1965
estimate

871

1,036

1,234

114
79

163
47

25
110

1,064

1,246

1,369

213
18

192
16

163
8

33
10
14
3
25
37

13
2
10
3
24
27

2
9
3
25
27

128

169

518

485
-3

495

1,582

1,728

1,864

90
159
3
3
32

109
226
3

82
153
2

295
-40

359

244

1,246

1,369

1,620

444

THE BUDGET FOR FISCAL YEAR 1965

Recommendations for special uses, 1965.—Most U.S. uses of foreign
currencies are covered by unrestricted dollar appropriations. For
those situations where currencies are available in the Treasury in
excess of amounts needed for regular appropriations, separate appropriations are proposed for special foreign currency programs. These
appropriations are summarized in table K-4.
Table K-4. SPECIAL FOREIGN CURRENCY PROGRAM APPROPRIATIONSNEW OBLIGATIONAL AUTHORITY (in thousands of dollar equivalents)
1963

Library of Congress: Collection and distribution of library
materials.-.
Funds appropriated to the President: Agency for International Development: American schools and hospitals
abroad
_
__
Department of Agriculture:
Agricultural Research Service: Salaries and expenses
Foreign Agricultural Service: Salaries and expenses
Department of Commerce:
National Bureau of Standards: Research and technical
services
Weather Bureau: Research and development
Department of Health, Education, and Welfare:
Office of Education: Educational research
Office of Vocational Rehabilitation: Research and training
Public Health Service: Scientific activities overseas
Department of Interior: Bureau of Commercial Fisheries:
Management and investigations of resources
Department of State:
Acquisition, operation, and maintenance of buildings
abroad
Preservation of ancient Nubian monuments
United States Information Agency:
Salaries and expenses
Special international exhibitions
Total

1964

1965

630

898

2.800

4,700

5,265
4,000

1,250

5,000

500

500
250

500
500

400

500

2,000
2,800

2,000
4,000

2,000
1,000

300

2,205

2,750
12,000

6,143

8,500
375

11,750
450

8,200
450

29,775

41,348

26,310

1,717

U.S. uses without dollar controls.—Unexpended balances remain for
Defense family housing and for exports to third countries from allocations given to agencies prior to 1961, when these uses were generally
made subject to appropriation requirements. A new authorization,
with the appropriation requirement waived, was made in 1963 to the
Agency for International Development, to permit the use of Indian
rupees in Nepal. These uses are summarized in table K-5.

SPECIAL

445

ANALYSES

Table K-5. S U M M A R Y OF U . S . USES WITHOUT DOLLAR CONTROLS
(In thousands of dollar equivalents)
1964
estimate

1963
actual
New authorizations to expend foreign currency receipts:
Agency for International Development
Department of State
Total authorizations

1965
estimate

15,013
488
15,501

Expenditures:
Agency for I nternational Development
Department of Defense
_
_
Department of State
__ _
United States Information Agency. _____
__
Total expenditures

5,760
2,184
385
5

4,700
4,810

3,000
3,115

8,334

9,510

6,115

Country uses.—A far- larger amount of foreign currencies are used
outside of the appropriations process for loans and grants in the host
country. These are country use currencies which are committed by
the terms of the sales agreements of surplus agricultural commodities
to be used for programs of mutual benefit in agreement with the host
country. These purposes include the common defense, economic
development, and loans to American and certain foreign private
enterprise. These uses are summarized in table K-6.
Table K-6, S U M M A R Y OF FOREIGN CURRENCY T R A N S A C T I O N S COUNTRY USES (in millions of dollar equivalents)
1963
actual
Cash balances brought forward
Collections:
Public Law 480 sales.__
Foreign assistance program

..
_ __ _ ___

Subtotal, collections
Transfer of currencies from U.S. uses

___

Expenditures:
Public Law 480 country loans and grants
Public Law 480 loans to private enterprise
Other foreign assistance programs _
Subtotal, expenditures
Adjustments due to changes in exchange rates.
Cash balances carried forward _ _

___ ___
,

1965
estimate

1,655

1,652

1,867

989
13

1,082
5

887
3

1,003

1,087
3

890

2,658

2,742

2,758

779
20
58

810
26
38

831
32
23

858
-148

875

886

1,652

1,867

1,872

Total availabilities

1964
estimate

SPECIAL A N A L Y S I S

INTERNATIONAL TRANSACTIONS OF THE FEDERAL GOVERNMENT

As part of a wide range of efforts to reduce the continuing deficits in
the U.S. balance of international payments, the Federal Government
has instituted a special program to minimize the adverse effects of its
activities on the balance of payments. Starting in August 1962, the
Bureau of the Budget established a system to review periodically the
international transactions of Federal agencies. Under this system,
agencies with substantial receipts or payments abroad prepare statistical estimates of their international transactions twice each year.
These estimates are evaluated to determine whether all possible
actions are being taken to reduce payments and increase receipts.
Since emphasis is placed on using this system as a management tool,
forward estimates do not merely project current trends or programs,
but rather reflect all possible efforts, consistent .with the national
interest, to minimize payments and to maximize receipts from other
countries.
This special analysis presents a summary of the international transactions of the Federal Government for 1963-65 based on estimates
made in September 1963 revised where necessary for comparability
with the 1965 budget.
Major trends.—Estimated Federal payments abroad are expected
to decline from the 1963 level of about $5 billion to $4.4 billion in
1965.
Receipts from abroad from regular transactions are expected to
remain at about the 1963 level of $2.2 billion in 1964, but to increase to
$2.4 billion in 1965. (These receipts figures do not include special
transactions—prepayments of loans, certain sales of securities and
advances for military sales.)
These payments and receipts produce an estimated decline in the
net Federal payments abroad of about $800 million between 1963 and
1965, excluding special transactions.
Table L-1. SUMMARY OF INTERNATIONAL TRANSACTIONS OF THE
FEDERAL GOVERNMENT (in millions of dollars)
1963
estimate
Payments
Receipts
Excess of payments

446

4,997
2,171

-2,826

1964
estimate
4,713*
2,109

-2,604

1965
estimate
4,428
2,414
-2,014

447

SPECIAL ANALYSES

Trends by agency.—Table L-2 provides a breakdown of total current receipts and payments figures, identifying separately those
agencies which account for the bulk of the Federal Government's
international transactions.
Table L-2. INTERNATIONAL TRANSACTIONS OF THE FEDERAL
GOVERNMENT—BY MAJOR AGENCY (in millions of dollars)
Description

Payments:

Department of Defense
Agency for International Development
Treasury Department
Department of State
Atomic Energy Commission
Department of Health, Education, and Welfare
Veterans Administration
Other
Total

1963

1965
stimate

2,763
788
555
280
245
123
69
174

2,708
595
595
247
135
132
71
230

2,506
500
669
225
91
148
67
222

4,997

4,713

4,428

989
354
446
168
90
124

750
370
541
214
95
139

950
287
662
277
95
143

2,109

2,414

250

Receipts:

Department of Defense
Treasury Department
Export-Import Bank
Agency for International Development
Department of Agriculture
Other
Total

1964

2,171

Receipts from special transactions (not included in receipts
above):

Advances on military exports (Department of Defense)
Sales of medium-term, nonmarketable securities and participation certificates
Nonscheduled receipts on loans

Total

345
J

806
672

1,823

1
These sales are distributed as follows: Treasury Department securities, $787 million; ExportImport
Bank certificates, $19 million.
2
Not available. Forward estimates are not made for receipts from nonscheduled loan payments
and sales of medium-term, nonmarketable securities.

Payments.—The largest reductions in payments over the 2-year
period are estimated for the Department of Defense, the Agency for
International Development, and the Atomic Energy Commission.
The Department of Defense estimates reflect the Department's
efforts to achieve savings—without reductions in our military capabilities overseas—through a broad range of measures including: (1) a
voluntary savings program for personnel overseas; (2) a program increasingly to replace procurement overseas with procurement in the
United States; (3) reductions in overseas construction programs and
contractual services; (4) reduction in employment of foreign nationals
at overseas installations; and (5) reduction in the number of supply
installations in Western Europe.

448

THE BUDGET FOH FISCAL YEAR 1965

The Department of Defense will also continue its intensive worldwide effort to encourage other countries to purchase a portion of their
military equipment in the United States to help offset our defense
expenditures abroad.
The reduction in payments estimated for the Agency for International Development results from the Agency's efforts to insure that,
wherever possible, funds loaned or granted abroad are tied directly to
procurement in the United States. Except for limited procurement
in developing countries, it is now the Agency's general policy to prohibit the purchase abroad of any goods with foreign economic assistance funds.
The major reason for the estimated decline in Atomic Energy
Commission payments is a drop in overseas procurement of uranium
concentrates.
A substantial decrease is also estimated for the Department of
State, primarily reflecting decreased purchases of U.N. bonds. Veterans Administration payments abroad, mostly for compensation and
pensions, are expected to decline slightly.
Both the Treasury Department and the Department of Health,
Education, and Welfare are estimated to make increased payments
overseas between 1963 and 1965. In both cases, these anticipated
increases result from obligations not readily subject to administrative
controls. Estimated increases for the Department of Health, Education, and Welfare, for example, result from increased social security
benefit payments being made to recipients residing overseas. In the
case of the Treasury, the increases are largely accounted for by interest
payments on the public debt and encashments of non-interest-bearing
notes representing parts of past contributions to international lending
organizations. (Contributions to these organizations often consist
of non-interest-bearing notes which are not included as international
transactions until they are cashed.)
Receipts.—The estimated increase in receipts over the 1963-65
period is largely accounted for by transactions of the Export-Import
Bank and the Agency for International Development.
Special transactions—which are not included in the totals just discussed—were the source of large additional receipts in 1963. These
receipts result from transactions, involving advances or loans, and generally with foreign governments or official monetary authorities, which
would not occur as part of ihe regular operations of U.S. Government
agencies. They include: (1) advance payments by foreign governments for military exports; (2) sales of nonmarketable, medium-term
securities by the Treasury Department to foreign central banks;
(3) sales of certain participation certificates by the Export-Import
Bank; and (4) repayments by foreign governments of loans before
they are due. Except for advances on military exports, they are not
estimated for future years.
Geographical distribution.—Table L-3 shows a distribution of
receipts and payments by major geographic area. Approximately
17% of the decline estimated in total payments between 1963 and
1965 is accounted for by transactions with Western Europe.
Receipts from Western Europe (excluding special transactions, most
of which are with Western Europe) are estimated to remain at approximately the same level from 1963 to 1965.

449

SPECIAL ANALYSES

Table L-3. DISTRIBUTION OF INTERNATIONAL TRANSACTIONS OF THE
FEDERAL GOVERNMENT, BY GEOGRAPHIC AREA (in millions of dollars)
1963

Payments:
Western Europe (including international organizations located
there) _
_ _
_
_ _
_ __ _
Other countries
__
_
Other international organizations and undistributed
_ .
Total
Receipts:
Western Europe (including international organizations located
there) _ _
_
__
_ _ _
Other countries
___
_
_
____
Other international organizations and undistributed. _ __ _

Total

1964

1965

2,027
2,526
444

2,088
2.225
401

1,932
1.974
522

4,997

4.713

4,428

1,308
816
47

1,148
920
42

1,297
1,062
55

2.171

2,109

2,414

Payments by type of transaction.—An analysis of payments by
type of transactions indicates that between 1963 and 1965 the reductions in Federal payments abroad are expected to be primarily in grants,
loans, and purchases of goods and services. For the most part,
the procurement reductions reflect the substitution of purchases in
the United States for those overseas.
Table L-4. DISTRIBUTION OF FEDERAL PAYMENTS ABROAD BY TYPE OF
TRANSACTION (in millions of dollars)
Description

1.
2.
3.
4.
5.
6.
7.
8.

U.S. personnel—Amount estimated to be spent abroad
Construction
Goods and services purchased abroad for use abroad !_
Other purchases of goods and services.
Grants (amounts for use abroad) 2
.
Pensions and similar transfer payments
2
Loans (amounts for use abroad)
Other

Subtotal _
Less payments in excess foreign currencies 3
Total, payments affecting the balance of payments
1
2

1963

1964

1965

847
105
2,058
292
598
190
547
409

872
116
1,991
191
544
228
303
526

850
112
1,836
146
407
235
443
463

5,047
50

4,771
58

4,493
65

4,997

4,713

4,428

Includes all Defense procurement, including military assistance.
Excludes funds tied to procurement in the United States or which are otherwise not currently
available
for use abroad.
3
Excess foreign currencies are those which the United States owns in quantities excess to its
needs (see Special Analysis K). Since use of these currencies does not increase the flow of dollars
abroad, they are deducted in calculating the effect of the Federal Government on the balance of
payments.

70O-000 O—64

450

THE BUDGET FOR FISCAL YEAR 1965

Relation to the budget.—Reports on international transactions
do not flow directly from the accounting system used for the administrative budget or trust funds. They are estimated separately to
show all Government receipts or payments which enter the balance
of payments. The major differences between data on international
transactions and administrative budget and trust totals are:
1. Coverage.—Data on international transactions exclude all budget
and trust transactions that are within the United States; they include
debt transactions entering the balance of payments which are excluded
from budget and trust figures. For example, the budget includes
all expenditures for foreign assistance and Department of Defense
procurement, while such payments are included as international
transactions only to the extent that the procurement is estimated to
take place abroad.
2. Estimated basis of international transactions.—No separate detailed accounting system has been established for international transactions comparable to that which supports administrative budget
and trust fund totals. In many cases it is necessary to estimate the
overseas components of transactions, since these components are not
shown directly by accounting data. For example, budget accounts
provide precise data on the gross amount of salaries paid in a given
overseas area, but do not identify the amount actually spent overseas
by employees—which is the relevant statistic for balance of payments
purposes. Thus, for past years, international transactions are a
combination of actual accounting reports and estimates.
3. Timing.—International transactions are recorded at the time
when they are known or estimated to affect the balance of payments.
The time at which a given international transaction is counted may,
therefore, vary considerably from the time at which it is shown in the
budget and trust fund accounts. For example, in some cases the U.S.
Government makes contributions to international organizations in the
form of non-interest-bearing notes. These notes are shown as budget
expenditures when issued, but as international payments only when
they are cashed.

Relationship to balance of payments statistics.—Data on

Federal receipts and payments abroad are also reflected in the balance
of payments statistics published by the Department of Commerce.
However, as with the administrative budget, the balance of payments
statistics are designed for purposes which are different from those for
which the Government agency estimates and reports on international
transactions have been established. Balance of payments data
meet the needs of economic analysis and for the measurement of
international flows of real resources and money, while agency reports
on international transactions serve as both a means of estimating
and a management tool for decreasing the balance of payments
costs of Federal Government programs. Reflecting the different uses
of these two bodies of data, there are the following differences between
balance of payments statistics and the reports on Federal transactions
covered in this analysis:
1. Classification.—The reports use classifications by agency and
by types of expenditures which are quite different from the broad
functional classifications used for the balance of payments statistics.
2. Attribution.—Transactions conducted by private businesses, in
which the Federal Government is involved, are treated as private in

SPECIAL ANALYSES

451

the balance of payments statistics. In order to emphasize management decisions, agency reports permit the attribution of some such
transactions to the Federal Government. For example, military goods
may be sold to foreign governments directly by private companies,
although the sales are encouraged and sponsored by the Department of Defense. In the balance of payments, such sales would
be reported as private receipts for exports. However, for the purpose of the Defense Department's estimates on international transactions, some of them are considered Government receipts.
3. Other.—Further differences between the two sets of data involve
the timing of certain transactions, the reporting of foreign currencies,
and minor differences in coverage of transactions which are considered "foreign."
The balance of payments statistics do not include a separate identifiable category on total Federal receipts or payments. However,
because of the recent interest in the relationship between U.S. Government grants and loans abroad and the balance of payments, the
Department of Commerce has included estimates indicating the
amount of Government loans and grants which involve direct payments to foreign accounts, as distinguished from those which involve
no direct dollar outflow from the United States. Agencies report
similar data for their estimates on international transactions. A
reconciliation between the two sets of data, shown in table L-5,
illustrates the kinds of differences which exist between the agency
reports and estimates on international transactions and the Department of Commerce balance of payments statistics.
Table L-5. GOVERNMENT GRANTS AND CREDITS—RECONCILIATION
BETWEEN BALANCE OF PAYMENTS AND AGENCY ESTIMATES OF
INTERNATIONAL TRANSACTIONS
[In millions of dollars]
Description

Government grants and credits, as shown in agency reports on international transactions
(lines 5 and 7, table L-4)
.
Difference in definitions of grants and credits:
Add:
Agency for International Development administrative expenses
Peace Corps expenditures
Other
Deduct:
Certain contributions to international organizations
_.
Netting of certain receipts
_
_
Other..
Differences in coverage and reporting:
Add:
Inclusion of Trust Territory payments
Foreign currency transactions (net).
___
Payments to foreign flag carriers
^
Payments for expenditures in the United States but entering foreign dollar accounts
in U.S. banks
Other (net)
_
_
Deduct other (net)
_
Transactions involving direct dollar payments to foreign accounts as shown in
balance of payments statistics
_
_

1963

1,145
30
11
8
102
90
23
10
3
17
43
10
2
1.061

PART 7

HISTORICAL TABLES
453

Table 15. ADMINISTRATIVE BUDGET TOTALS AND PUBLIC D E B T ,
1789-1965 (in millions of dollars)
ADMINISTRATIVE
BUDGET
Fiscal year
Receipts

1789-1849.
1850-1899.

Ex-

penditures

Surplus

( + ) or

ADMINISTRATIVE
BUDGET
Public
debt at
end of
year

Fiscal year
Receipts

deficit
(-)

1,160
1,090
4-70
13,895 14,932 - 1 , 0 3 7

63
1,437

1900
1901
1902
1903
1904

567
588
562
562
541

521
525
485
517
584

+46
+63
+77
+45
-43

,263
,222
,178
,159
,136

1905
1906
1907
1908
1909

544
595
666
602
604

567
570
579
659
694

-23
+25
+87
-57
-89

,132
,143
,147
,178
,148

1910
1911
1912
1913
1914

676
702
693
714
725

694
691
690
715
725

-18
+11

+3
*
*

,147
,154
,194
,193
,188

1915
1916
1917
1918
1919

683
746
-63
762
713
+48
1,100
1,954
-853
3,630 12,662 - 9 , 0 3 2
5,085 18,448 -13,363

,191
,225
2,976
12,455
25,485

1920
1921
1922
1923
1924

6,649
5,567
4,021
3,849
3.853

6,357
5,058
3,285
3,137
2,890

+291
+509
+736
+713
+963

24,299
23,977
22,963
22,350
21,251

1925
1926
1927
1928
1929

3.598
3,753
3,992
3,872
3,861

2,881
+717
2,888
+865
2.837 +1,155
2,933
+939
3,127
+734

20.516
19,643
18,512
17,604
16,931

1930
1931

4.058
3,116

3,320
3,577

16,185
16,801

+738
-462

Expenditures

urplus
+) or
deficit

Public
debt at
end of
year

1932....
1933....
1934....

1,924
1,997
3,015

4,659 -2,735
4,598 -2,602
6,645 - 3 , 6 3 0

19,487
22,539
27,053

1935
1936
1937
1938....
1939.-.

3.706
3,997
4,956
5,588
4,979

6,497
8,422
7,733
6,765
8,841

28,701
33,779
36.425
37,165
40,440

194O.._.
1941....
1942.-.
1943
1944

5,137
7,096
12,547
21,947
43,563

42,968
9,055 - 3 , 9 1 8
13,255 - 6 , 1 5 9 48,961
34,037 -21,490 72,422
79,368 -57,420 136,696
94,986 -51,423 201,003

1945
1946
1947
1948
1949

44,362
39,650
39,677
41,375
37,663

98,303 -53,941
60,326 -20,676
38,923
+754
32,955 +8,419
39,474 - 1 , 8 1 1

258,682
269,422
258,286
252,292
252,770

1950
1951
1952.-.
1953
1954

36,422
47,480
61,287
64,671
64,420

39,544
43,970
65,303
74,120
67,537

-3,122
+3,510
-4,017
-9,449
-3,117

257,357
255,222
259,105
266,071
271,260

1955
1956
1957
1958
1959....

60,209
67,850
70,562
68,550
67,915

64,389 - 4 , 1 8 0
66,224 +1,626
68,966 +1,596
71,369 - 2 , 8 1 9
80,342 -12,427

274,374
272,751
270,527
276,343
284,706

I960.-.
1961
1962
1963
1964 est_-

77,763
77,659
81,409
86,376
88,400

76,539 +1,224
81,515 - 3 , 8 5 6
87,787 - 6 , 3 7 8
92,642 - 6 , 2 6 6
98,405 -10,005

286,331
288.971
298,201
305,860
311,800

-2,791
-4,425
-2,777
-1,177
-3,862

1965 est___ 93,000 97,900 -4,900 317,000

'"Less than one-half million dollars.
Note.—A classification of administrative budget receipts and expenditures for the period 1954 to
1965, inclusive, is found in table 17 (page 456) and table 18 (page 457), respectively. The change in
the public debt from year to year is not necessarily the same as the administrative budget surplus
or deficit. It reflects also changes in the Government's cash on hand, and the use of corporate debt
and investment transactions by certain Government enterprises.
Certain interfund transactions are excluded from administrative budget receipts and expenditures
starting in 1932. For years prior to 1932 the amounts of such transactions are not significant.
Refunds of receipts are excluded from administrative budget receipts and expenditures starting
in 1913; comparable data are not available for prior years.
454

455

HISTORICAL TABLES

Table 16. CONSOLIDATED CASH TOTALS AND FEDERAL SECTOR OF
THE NATIONAL INCOME ACCOUNTS, 1940-65 (in billions of dollars)
Consolidated cash statement
Fiscal year
Receipts

Payments

Surplus

(deficit
+ > ?'

Federal sector of the national
income accounts

Receipts

Expenditures

Surplus

(+)
?r
deficit
)

1940
1941
1942
1943
1944

6.9
9.2
15.1
25.1
47.8

9.6
14.0
34.5
78.9
94.0

1945
1946
1947
1948
1949

50.2
43.5
43.5
45.4
41.6

95.2
61.7
36.9
36.5
40.6

1950...
1951
1952
1953
1954

40.9
53.4
68.0
71.5
71.6

43.1
45.8
68.0
76.8
71.9

1955
1956
1957
1958..
1959

67.8
77.1
82.1
81.9
81.7

70.5
72.5
80.0
83.5
94.8

+4.5
+2.1
-1.6
-13.1

1960
1961
1962
1963
1964 (estimated)

95.1
97.2
101.9
109.7
114.4

94.3
99.5
107.7
113.8
122.7

1965 (estimated)

119.7

122.7

7.6
11.9
19.5
29.6
43.4

9.0
13.5
33.5
76.7
91.3

-1.4
-1.6
-14.0
-47.1

43.9
37.3
42.9
43.7
40.1

97.1
56.6
31.7
32.3
40.0

-53.2
-19.3

-2.2
+7.6
*
-5.3
-.2

42.0
61.7
65.5
69.9
65.9

42.2
45.3
66.6
76.2
74.5

-.2
+16.3

-2.7

67.0
76.3
80.9
77.8
85.9

68.1
69.5
76.5
82.8
90.3

-1.1
+6.8
+4.4
-4.9
-4.4

-2.3
-5.8
-4.0
-8.3

+.8

94.5
95.2
103.6
109.3
113.6

92.1
97.8
106.4
112.6
119.1

+2.4
-2.7
-2.7
-3.3
-5.5

-2.9

118.8

121.5

-2.8

-2.7
-4.8
-19.4
-53.8
-46.1

-45.0
-18.2

+6.6

+8.9
+1.0

-47.9

+11.2
+11.4
+.2

-1.1
-6.3
-8.6

*Less than $50 million.
Note.— For an explanation of the consolidated cash statement and Federal sector of the national
income accounts, see special analysis A (pages 328 to 336). Classifications of receipts and expenditures on both the consolidated cash and national income bases, for fiscal years 1954—65, are shown
in table 19 (page 462). and table 20 (page 463). respectively.

Table 17. ADMINISTRATIVE BUDGET AND TRUST FUND RECEIPTS, 1954-65 (in millions of dollars)
Actual

Description

Estimate

1954

1955

1956

1957

1958

1959

1960

1961

1962

1963

1964

29,542

28,747
17,861
9,131
579
924
585
2,562

35,620
21,167
9,055
328
1,365
735
2,760
-467

34,724
20,074
8,612
333

36,719
17,309
8,504

40,715
21,494

41,338

9,137

20,954
9,063

45,571
20,523
9,585

47,588
21,579
9,915

47,500
23,700
10,221

48.500
25.800
10,987

321
1,333

339
1,606
1.105
4,062
-694

1,896
982
4,080
-654

2,016
1,142
3,206
-633

2,167
1,205
4,435
-513

2,335
1,275
4,053
-685

2,740
1.460
4.113
-600

77,763

77,659

81,409

86,376

88,400

93.000

10,728 12,404 12,561 14,862 16,777
2,167 2,398 2,729 3,009 2,900
2.539 2,798 2,949 3,279 3,478

16,996
2,825
3,504

1965

ADMINISTRATIVE BUDGET FUNDS

Individual income taxes._.
Corporation income taxes.
Excise taxes (net)
Employment taxes
Estate and gift taxes
Customs
Miscellaneous receipts.
Interfund transactions
Total administrative budget.

-181

32,188
20,880
9,929
322
1,161
682
3,003
-315

-567

925
3.160
-355

64,420

60,209

67,850

70,562

68,550

67,915

5,100
1.246

5,587
1,146

6,905
1,330

7,192
1,542
1,479

8,233
1,501
2,026

8,446
1,701
2,074

465

-18

473
1,178
441
660
-16

813
1,212
441
918
-12

1,175
1,324
452
1,146
-10

1,252
1,350
485
1,317
-11

1,507
1,323
478
1,375
-135

1.504
1.337
482
2,494
-908

1,740
1.414
504
2,840
-515

1,756
1,433
501
2,889
-528

1,878
1,477
494
3,195
-505

1,959
1,589
501
3.446
-488

1,923
1,669
499
3,934
-477

9,097

9.470

11,607

14,301

16,153

16,769

20,342

23.582

24.290

27.689

30.163

30,872

21,101

9,945
283
934
542
2,309
-235

1,393
782
3,200

TRUST FUNDS

Employment taxes
Unemployment tax deposits by States
Excise taxes
Federal employee and agency payments for retirement
Interest on trust fund investments
Veterans life insurance premiums
Miscellaneous trust receipts
Interfund transactions
Total trust funds_

1,193

426
685

*Less than one-half million dollars.
Note.—Figures shown in this table are net of refunds, but correspond to the net figures used in the same classifications for fiscal years 1963 to 1965 in table 13 (pages
62 to 67).

Table 18. ADMINISTRATIVE BUDGET AND T R U S T EXPENDITURES BY FUNCTION, 1954-65 (in millions of dollars)
Actual

Description

Estimate

1954

1955

1956

1957

1958

1959

I960

1961

1962

1963

1964

11,643
9,162
15,957

11. 403
7 931
12 838

11, 582
8, 400
12, 227

11,409
9,487
13,488

11,611
9,761
14,083

11. 801
10 378
14, 409

11,738
10,223
13,334

12,085
10,611
13,095

13,032
11,594
14,532

13, 000
11 874
16 632

14,180
11,870
16,337

14, 660
17 778
14 785

2,187
1,744

7 761

7, 101

2,406
1,968

2,504
1,753

7 866

4,710
1,626

6,131
1,605

6,319
1,347

2,611
-598

2,352
-323

2,187
-643

1,609
-416

1,449
-300

427
703
90
1 721
1,390
- 9 9 - 1 401

6,943
1,107
680
150
1,400
-367

6 580

I 079

37 823 38, 403 40,788

41,258

43 563 42,824

44,676

48,205

49 973 52,300

51 200

2,623

2,713

2,806

104

7 758
24

2,800

244

197

2 735
44

46 483 45,691

47,494

51,103

52 ,755

55,297

53 979

216
2,126
158

249
2,372
197

346

2 ,041
201

316
1,897
234

315
1,705
227

1965

ADMINISTRATIVE BUDGET FUNDS

050 National defense:
1
051 Department of Defense—Military:
Military personnel
Operation and maintenance
Procurement
_ _
Research, development, test, and evaluation
Military construction
Family housing
Civil defense
Military assistance
Revolving and management funds

3,629
-367

Total, Department of Defense—Military. 43,955

1 715
2,292
-617

1 651
669

058 Atomic energy
059 Defense-related activities

1,895
1,136

1 857
1,015

Total,, national defense

46,986

40,695

130
1,511
91

121

129

1,960

1 613

100

1,732

150 International affairs and finance:
151 Conduct of foreign affairs _ _
152 Economic and financial programs
153 Foreign information and exchange activities. _
Total, international affairs and finance

250 Space research and technology:
251 Space research and technology
See footnotes at end of table, p. 461.

1,990

2,268

590

709

40 723 43,368

44,234

1 948

2,340
-179

7 541
379

1 144

1 056
660
150
1,200
-169

173
1,910
149

3 403

111

157
1,683
133

139

217
1,477
137

2 181

1, 853

1,973

2,231

3 780

1,832

2,500

2,817

2,588

2,447

2 ,248

145

401

744

1,257

2 ,552

4,400

4 ,990

237

w
I—I

1
w
i—i

Table 18. ADMINISTRATIVE BUDGET AND TRUST EXPENDITURES BY FUNCTION, 1954-65 (in millions of dollars)—Continued
Actual

Estimate

Description
1954

1955

1956

1957

1958

1959

I960

1961

1962

1963

1964

1,689
272

3,486
236

3,900
232

3,430
248

3,284
269

5,297
311

3,602
289

3,800
349

4.576
234

5,517
300

4.746
279

3,750
130

217
252
142

204
290
173

217
305
215

267
374
227

297
315
255

315
376
291

330
368
293

301
397
324

303
426
341

342
404
391

219
417
409

216
423

* 2,573

4,388

4,868

4,546

4,419

6,590

4,882

5.172

5,881

6,954

6,070

4.907

935
119

804
139

925
163

1,139

1,184

1,235

1,394

1,564

1,699

1,720

1,808

117

174

201

220

331

280

303

354

37
38
33

37
43
35

38
45
44

62
51
59

59
60
69

71
68
85

65
68
74

61
73
91

68
81
94

71
94
112

107
104
122

339
113
110
138
80

1965

ADMINISTRATIVE BUDGET F U N D S - C o n .

350 Agriculture and agricultural resources:
351 Farm income stabilization and Food for
Peace 2 3
352 Financing farming and rural housing
353 Financing rural electrification and rural
telephones
_ __
354 Agricultural land and water resources
355 Research and other agricultural services
Total, agriculture and agricultural resources
400

a
o

388

Natural resources:

401
402
403
404
405
409

Land and water resources
Forest resources
Mineral resources.
Fish and wildlife resources
Recreational resources
General resource surveys and administration-

1,056

Total, natural resources
500 Commerce and transportation:
501 Aviation
502 Water transportation
503 Highways
505 Postal service
506 Advancement of business
507 Area redevelopment4

1,317

1,203

1,105

1,298

1,544

1,670

1,714

2.006

2,147

2,352

2,483

2,588

186
370

179
349

180
420

219
365

315
392

494
436

568
508

716
569

781
654

808
672

875
708

586
312
-281

647
356
-343

783
463
5

40
518
119

31
674
170
*

30
774
234

38
525
265

36
914
271

33
797
427
7

41
770
366
101

45
546
426
463

912
717
42
475
455
375

508 Regulation of business
Total, commerce and transportation
550 Housing and community development:
551 Aids to private housing
552 Public housing programs
553 Urban renewal and community facilities
555 National Capital region
Total, housing and community development __ _
650 Health, labor, and welfare:
651 Health services and research
652 Labor and manpower
653 Public assistance
655 Other welfare services 3
Total, health, labor, and welfare
700 Education:
701 Assistance for elementary and secondary
education
702 Assistance for higher education
703 Assistance to science education and basic
research._
__
704 Other aids to education
5
Proposed education legislation
Total, education
800 Veterans benefits and services:
801 Veterans service-connected compensation
802 Veterans non-service-connected pensions
803 Veterans readjustment benefits
804 Veterans hospitals and medical care
805 Other veterans benefits and services
Total, veterans benefits and services
See footnotes at end of table, p. 461.

1.219

1.225

1,892

1,305

1,632

2,025

1,963

2,573

2.774

2,843

3,151

3,069

-277
-401
37
14

174
-116
56
22

-67
31
4
23

-254
60
49
27

-126
51
78
26

732
97
108
33

-172
134
130
30

-44
150
162
51

-149
163
261
74

-537
178
222
70

-723
146
316
69

-1,041
111
411
90

-628

136

-10

-118

970

122

320

349

-67

-191

-317

188
247
1.439
148

271
321
1.428
145

342
479
1.457
184

461
397
1,558
216

540
488
1,797
234

700
924
1,969
284

815
510
2,061
304

938
809
2,170
327

1.128
591
2,437
382

1,354
224
2,788
423

1,638
390
3,007
498

1,733
651
2,869
579

2,122

2.165

2,462

2,632

3,059

3,877

3,690

4,244

4,538

4,789

5,533

5,832

184
44

215
43

181
44

174
110

189
178

259
225

327
261

332
286

337
350

392
428

411
404

471
442

6
91

11
109

20
98

46
108

50
124

106
141

120
156

143
181

183
207

206
219

260
269
3

302
359
118

326

377

343

437

541

732

866

943

1,076

1,244

1,348

1.691

1.731
700
789
782
339

1.829
801
879
727
286

1,864
884
943
788
331

1,876
950
977
801
266

2,024
1,037
1,025
856
242

2,071
1,152
864
921
280

2,049
1,265
725
961
266

2,034
1,532
559
1,030
259

2,017
1,635
388
1,084
279

2,116
1,698
-13
1,145
240

2,126
1,743
6
1,240
248

2,120
1,777
-290
1.246
229

4.341

4,522

4,810

4,870

5,184

5,287

5,266

5.414

5,403

5,186

5,362

5.081

w
\

i
I
5
CO

Or
CO

o
Table 18. ADMINISTRATIVE BUDGET AND TRUST EXPENDITURES BY FUNCTION, 1954-65 (in millions of dollars)—Continued
Actual

Description

Estimate

1954

1955

1956

1957

1958

1959

I960

1961

1962

1963

1964

6,382
83
5

6,370
62
5

6,787
54
6

7,244
57
6

7,607
74
8

7.593
69
9

9.180
76
10

8,957
83
10

9.120
68
10

9.895
74
11

10,600
90
11

11,000
90
12

6,470

6,438

6,846

7,307

7,689

7,671

9,266

9,050

9,198

9.980

10,701

11,101

49
29
11
449
157
93
186
253

60
31
12
431
168
96
185
183

76
38
12
475
173
304
220
278

90
40
12
476
201
602
219
100

89
44
19
502
245
84
233
69

102
47
21
566
295
95
255
86

109
49
20
558
372
84
263
88

118
52
22
607
372
140
289
109

135
57
22
653
419
153
300
136

131
63
21
715
444
142
323
139

141
68
24
800
540
175
338
154

138
72
24
838
561
106
351
148

1,226

1,166

1.576

1,738

1,284

1,466

1,542

1,709

1,875

1,979

2,238

1965

ADMINISTRATIVE BUDGET FUNDS—Con.
850 Interest:

851 Interest on the public debt
852 Interest on refunds of receipts
853 Interest on uninvested funds.
Total) interest
900

General government:

901
902
903
904
905
906
908
910

Legislative functions
Judicial functions
__
Executive direction and management
Central fiscal operations
General property and records management- _
Central personnel management
Protective services and alien control
Other general government.
Total, general government

Allowance for attack on poverty
Allowance for civilian pay comparability
Allowance for contingencies ___
Interfund transactions
Total, administrative budget funds

-235

-181

-315

-467

-567

-355

-694

-654

-633

-513

250
-685

250
544
300
-600

67,537

64,389

66,224

68,966

71,369

80.342

76.539

81,515

87.787

92,642

98,405

97,900

I
1

TRUST FUNDS
050 National defense
150 International affairs and finance
250 Space research and technology.
350 Agriculture and agricultural resources..
400 Natural resources
500 Commerce and transportation
550 Housing and community development.
650 Health, labor, and welfare
700 Education
800 Veterans benefits and services
90CT General government
Deposit funds
Inter fund transactions
Total, trust funds

146
101

164
45

143
-29

93
13

344
1

229
21

256
48

196
13

366
15

679
44

137
45
-101
-296
6,036
1
779
9
-128
-18

73
61
-97
231
7,423
1
628
6
57
-16

288
79
-101
461
7,999
1
606
8
169
-12

426
85
866
1,044
9,585
1
608
8
217
-10

357
101
1,401
-295
12,775
1
671
10
-29

645
94
2,493
1,263
14,306
1
651
10
-60
-135

458
116
2,831
1,439
16,358
1
673
17
-78
-908

416
183
2,505
-273
19,236
1
811
16
203
-515

398
112
2,662
1,524
20,382
1
733
20
-544
-528

6,711

8,577

9,611

12,938 15,325

19,521

21,212

22,793

25,141

507
122
2,877
-36
21,855
2
835
19
146
-505

867
86
*
475
13b
3,394
1,628
22,669
2
642
18
-116
-488

1,231
99
2
442
107
3,466
456
23,549
2
495
18
-17
-477

26,545

29,315

29,372

*Less than one-half million dollars.
1
Former subfunctions 051, Department of Defense military functions, and 057, Military assistance, have been merged in this subfunction. Amounts shown for
years2 prior to 1964 include estimated comparability adjustments not supportable by accounting records.
This
category was previously titled "Farm income support and production adjustment."
3
The portion of the appropriation for Removal of surplus agricultural commodities. Department of Agriculture, which finances the food stamp program, has been
reclassined
from 351, Farm income stabilization and Food for Peace, to 655, Other welfare services.
4
Amounts shown for 1963 through 1965 include the Public works acceleration program which supplements expenditures in various other categories.
5
The amounts shown for expenditures under proposed legislation will subsequently be charged to subfunctions 701, 702, and 704.

i
3

Xfl

Table 19. RECEIPTS FROM AND PAYMENTS TO THE PUBLIC, ]1954-65

(in millions of dollars)
Estimate

Actual

Description

1954

1955

1956

1957

1958

1959

I960

1961

1962

1963

1964

1965

29.542
21,101
9,945
5,382

28,747
17,861
9,131
6,166

934
542

924
585

32,188
20,880
9,929
7,228
1,161

35,620
21,167
10,534
7,520
1,365

34,724
20,074
10,638
8,565
1,393

36,719
17,309
10,578
8,767
1,333

41,338
20,954
11,860
12,405
1,896

682

735

782

925

1,246
426
2,508

1.146
441
2.834

1,330
441
3,249

1,542
452
3,171

1,501
485
3,730

1,701
478
3.851

40,715
21,494
11,676
11,067
1,606
1,105
2,167
482
4.766

45,571
20,523
12,534
12,561
2,016
1,142
2,729
501
4,288

47,588
21,579
13,194
14,862
2,167
1,205
3,009
494
5,641

47,500
23,700
13,699
16,777
2,335
1,275
2,900
501
5,678

48,500
25,800
14,491
16,996
2,740
1,460
2,825

71,626

67.836

77,087

82,105

81,892

81.660

95.078

97,242 101,865 109,739 114,366 119,742

47,138
1.696

40.852
2.044

40,854
1,624

43.442
2,637

44,552
2,651

46,673
2,398

45,915
1,574

47,685
2,153

RECEIPTS FROM THE PUBLIC

Individual income taxes
Corporation income taxes
Excise taxes
Employment taxes
Estate and gift taxes
Customs
_____
Deposits by States, unemployment insurance
Veterans life insurance premiums
Other budget and trust receipts
Total, receipts from the public

982
2,398
504
4,905

499
6,432

PAYMENTS TO THE PUBLIC

National defense
International affairs and finance
Space research and technology
Agriculture and agricultural resources
Natural resources
Commerce and transportation
Housing and community development
Health, labor, and welfare
Education
Veterans benefits and services
Interest
General government
Deposit funds (net)
Undistributed adjustments
Total, payments to the public
Excess of receipts or payments _

145

401

744

2,617
1,357
1.137
-1,009
8,083

4,399
1,260
1,148
305
9,485

4,977
1,179
1,796
396
10,254

4,627
1,379
2,200
842
12,108

4,347
1,641
3,060
-319
15,757

7,052
1,754
4,545
2,141
18,017

4,877
1,822
4,819
1.440
19,107

5,183
2,101
5,107
-103
22,364

327

378

344

439

542

733

867

945

5,042
4,620
1.235
— 128
-348

5.114
4,664
1,172

5,328
5,115
1,583

5,448
5.266
1,744

5,828
5,884
1,292

5,910
5,350
1.475

5,907
7,233
1,558

6,187
7,257
1.724

169

217

-29

-60

-78

203

71,858

-415 -1,145
70.537 72,546

- 2 3 2 -2,702

4,542

-420 -1,823 -1,382 -1,114 -2.006
80,006

83,472

94,752

2,099 -1,580 -13,092

94,328

99.542

51,462 53,429 56,011 55,211
2,242
2,452
2,492
2,377
4,400
2,552
4,992
1,257
7,266
5,942
6,340
5,065
2,456
2,611
2,688
2,223
5,777
6,601
6,588
5,487
-268
1.279
-40
1,691
23,975 25,698 27.265 28,595
1,641
1,214
1.302
1,052
5,971
6,092
5.950
5,525
8,596
7,427
8.120
6,940
1,983
2,241
2,239
1,882
-116
-194
-17
-544
-770
-2,289 -1,801 -1,753
107,662 113,751 122,704 122,690

750 -2.300 -5,797 -4,012 -8,338 -2,948

Note.—This table shows the flow of money between the Government and the public on a cash (collections and checks paid) basis, which is explained in more detail
in special analysis A, pages 328 to 336.

Table 20. FEDERAL RECEIPTS AND EXPENDITURES IN THE NATIONAL INCOME ACCOUNTS, 1954-65
(Fiscal years. In billions of dollars)
Actual

Description
1954

1955

1956

1957

1958

Estimate
1959

I960

1961

1962

1963

1964

1965

RECEIPTS, NATIONAL INCOME BASIS
Personal tax and nontax
Corporate profits tax accruals
_
Indirect business tax and nontax accruals.
Contributions for social insurance
Total receipts, national income basis

30.4
17.1
10.7
7.7

29.9
18.4
10.4
8.3

33.5
21.0
11.2
10.5

36.7
20.4
12.1
11.7

36.3
17.3
12.0
12.3

38.7
21.1
12.3
13.8

42.3
21.7
13.9
16.7

44.0
19.5
13.6
18.0

47.6
21.3
14.9
19.7

50.1
21.6
15.6
21.9

50.1
23.3
16.5
23.7

52 3
24.9
17.3
24.2

65.9

67.0

76.3

80.9

77.8

85.9

94.5

95.2

103.6

109.3

113.6

118.8

ft)

53.9
11.9
2.8
4.9

45.0
13.8
2.9
4.9

45.2
14.2
3.1
5.0

48.3
16.1
3.6
5.5

50.5
19.4
4.5
5.6

53.9
21.8
6.0
5.8

53.0
22.8
6.7
6.9

54.9
25.9
6.6
7.0

60.1
27.8
7.3
7.0

64.4
29.2
7.9
7.6

67.8
30.5
9.4
8.0

69.1
31.8
9.7
8.5

1.0

1.4

1.9

3.1

2.7

3.4

4.2

3.5

2.5

Total expenditures, national income basis. __

74.5

68.1

69.5

76.5

82.8

90.3

92.1

97.8

106.4

112.6

119.1

121.5

Surplus ( + ) or deficit (—), national income basis..

-8.6

-1.1

+6.8

+4.4

-4.9

-4.4

+2.4

-2.7

-3.3

-5.5

-2.8

Purchases of goods and services
Transfer payments
Grants-in-aid to State and local governments
Net interest paid
Subsidies less current surplus of Government enterprises

Source.—Actual data for 1954—63 are based on the quarterly estimates published by the Department of Commerce.
by the Bureau of the Budget in cooperation with the Department of Commerce.

3
o

EXPENDITURES, NATIONAL INCOME BASIS

Data for 1964 and 1965 are based on estimates

s
5
1
GO

INDEX
Acceleration of public works, agency programs,
table F-5, 389
Accounts, Bureau of, 269
Active military forces, summary of text table, 73
Administrative budget:
Expenditures:
As percent of gross national product,
1942-65, chart, 9
By agency, summary, table 5, 45
By function, summary, table 1, 41
By function, 1954-65, table 18, 457-460
By function, distributed by agency, table
14, 132-139
Investment, operating, and other, table
D-2, 356-370
Investment, operating, and other, summary, table 6, 46
Relation of, to obligational authority, summary, table 8, 48
Research and development, 1954-65,
chart, 407
Research and development, by agency,
table H-16, 426
Explanation of, 328
Grand totals, 309
New obligational authority, by type and
function, summary, table 3, 43
New obligational authority, summary, by
agency, table 4, 44
Obligational authority, balances of, by agency
and type, summary, table 10, 51
Obligations incurred, net, by agency, table 9,
50
Receipts:
1954-65, table 17, 456
By source, table 13, 62-66
Summary, table 1, 41
Text table, 57
Relation of, to consolidated cash statement,
330
Relation of obligational authority to expenditures, 1965 budget, chart, 49
Relationship to consolidated cash statement
and national income accounts, 1963-65,
table A-l, 329
Totals and public debt, 1789-1965, table 15,

454
Advisory Commission on Intergovernmental
Relations. 290
Aeronautics research and technology, 87
Aged, health insurance for, discussion, 25
Agricultural Library, National, 186
Agricultural Marketing Service, 176-177
Agricultural research, 95
Agricultural Research Service, 173

Agricultural resources, see Agriculture
Agricultural Stabilization and Conservation
Service, 178
Agriculture:
Centennial, observance of, 186
Department of, 173-189
Department of, research expenditures analysis, 415
Agriculture and agricultural resources:
1954-65, chart, 93
Analysis of activities, text and table (1963—
65 payments to the public and recommended 1965 NOA by program or agency),
90-96
Discussion, 22-23
NOA and expenditures, 1963-65, distributed
by agency, table 14, 132-144
Aid, foreign, see Foreign aid
Aid to education, see Education
Aid to State and local governments:
Analysis, 427-435
Expenditures:
1954-65, chart, 427
By agency, table 1-1,429
In relation to total Federal expenditures
and to State-local revenue, 1954-64, table
1-2, 430
Summary, by function, agency, and program, table 1-3, 431-435
Airlift and sealift, Defense, 76
Alaska, transitional grants to, 173
Alaska International Rail and Highway Commission, 291
Alaska Railroad, 242
Alien control, 131
Alliance for Progress, 21, 84
American Battle Monuments Commission, 291
American Printing House for the Blind, 234
Annexed budgets:
Expenditures and applicable receipts, table
B-7, 343
Explanation of, 149
Memorandum, 324-325
Appalachian region, development of, discussion,
19
Apprenticeship and Training, Bureau of, 257
Architect of the Capitol, 156-158
Area redevelopment, Commerce, 103-104
Area Redevelopment Administration (Commerce), 190
Arms Control and Disarmament Agency, U.S.,

305
Army—Civil, Department of the, 213-215
Assets, nondefense, additions to, chart, 29
Atomic energy activities, 80-81
Atomic Energy Commission, 274
465

700-000 <

466

THE

BUDGET

FOR

Atomic Energy Commission, research and development, expenditures for, table H-7, 414
Authorizations, credit commitment, see Credit
programs
Authorizations, obligational, see Obligational
authority
Authorizations, permanent, see Permanent
authorizations
Authorization, public works, see Public works
Aviation, user charges on, discussion, 15

B
Balance of payments, discussion, 28
Balance of payments and agency estimates of
international transactions, reconciliation between, table L-5,451
Balances:
Budget, explanation, 147-148
Obligation authority, by agency and type,
table 10,51
Public enterprise funds, table B-3, 340
Trust fund, table B-6, 342
Bonneville Power Administration, 250
Borrowing by Government funds, table B—10,
345
Botanic Garden, 159
Budget:
Bureau of the, 165
Comparison of 1964 with 1965, text table, 17
Explanation of terms, 146-149
Explanation of three types of accounts, 328—
336
Message of the President, 7-37
R6sum6of,41
Business:
Advancement of, 101 -103
Regulation of, 106-107
Small, aid to, 102
Business and Defense Services Administration,
192
Business Economics, Office of, 191

Cash statement, see Consolidated cash statement
Cemeterial expenses, Army—Civil, 213
Census, Bureau of the, 191-192
Central Intelligence Agency, 291
Civil Aeronautics Board, 291
Civil defense, 78, 210
Civil public works, see Public works
Civil Rights, Commission of, 293
Civil Service Commission, 292-293
Civil War Centennial Commission, 297
Civilian employment in the executive branch,
see Employment, Federal civilian
Civilian pay comparability allowance, 308
Coal Research, Office of, 244
Coast and Geodetic Survey, 194
Coast Guard, 273
Commerce, Department of, 189-201
Commerce, Department of, research and development expenditures, 416

FISCAL

YEAR

1965

Commerce, stimulation of, discussion, 23-24
Commerce and transportation:
Discussion, 23-24
Expenditures, 1954-65, chart, 24
NOA and expenditures, 1963-65, distributed
by agency, table 14, 134-135
Program analysis, text and table (1963-65
payments to the public and recommended
1965 NOA by program or agency), 100-101
Program trends, 1954-65, chart, 106
Commercial Fisheries, Bureau of, 245-246
Commodity Credit Corporation, foreign assistance, 179
Commodity Exchange Authority, 178
Communication, space, 89-90
Communications activities, General Services
Administration, 279-280
Community action programs, discussion, 17-18
Community development, see Housing and
community development
Community facilities, 107-109
Consolidated cash statement:
Explanation of, 328
Intragovernmental transactions excluded
from, table A-2, 331
Relationship to administrative budget and
national income accounts, 1963—65, table
A-1, 329
Summary, table 1, 41
Totals and Federal sector of the nationalincome accounts, 1940-65, table 16, 455
Construction, public works, see Public works
Consumer protection, 115
Continental air and missile defense forces, 75
Cooperative State Research Service, 174
Corps of Engineers—Civil, 213-215
Corregidor-Bataan Memorial Commission, 297
Cost reduction in Government, discussion,
34-35
Courts:
Appeals, District courts, and other Judicial
services, 163-164
Claims, 163
Customs, 163
Credit programs, Federal:
Analysis, 371-382
Disbursements and repayments, by agency or
program, table E-3, 377
Interest rates and maturities for major programs, by agency or program, December
1963, table E-5, 380
New commitments, 1954-65, chart, 371
New commitments, by type of assistance,
major agency or program, table E - 1 , 374
Outstanding direct loans, and guaranteed
and insured loans, by agency or program,
table E.-2, 375
Outstanding loans for major quasi-public programs, by agency and program, table E-6,
Private participation in, 378-379
Sales of loans to non-Federal buyers, and other
repayments, classified by agency or program, table E-4, 379
Customs, Bureau of, 270

INDEX

Debt:
Federal, as a percentage of the total economy,
1942-65, chart, 30
Private, sec Private debt
Public, see Public debt
Debt issuances, by Government enterprises,
table B-l 0,345
Debt issuances, in lieu of checks, table A-3, 332
Defense:
CiviUlO
Department of:
Research and development expenditures,
1954-65, table H-1, 408
Department of—Civil, 213-217
Department of—Military, 201-213
Research and development expenditures,
table H-4, 411
Research and development, obligations
for, table H-5, 412
Text and table, 71-80
National:
Discussion, 19-20
NOA and expenditures, 1963-65, distributed by agency, table 14, 132
Program analysis (1963-65 payments to
the public and recommended 1965 NOA,
by program or agency), text and table,
71-81
Public works, new authorizations and
expenditures, by major function, agency,
and program, table F-7, 396
Defense materials activities, General Services
Administration, 280
Defense production, expansion of, 170
Defense public works, see Defense, national,
public works
Defense-related activities, 81
Deficit or surplus:
Administrative budget, 1789-1965, table 15,
455
Consolidated cash statement, and national
income accounts, Federal sector, 1940-65,
table 16, 455
Delaware River Basin Commission, 300
Development loans and grants, 83
Direct loans, see Credit loans
Disarmament, see Arms Control and Disarmament
Disaster relief, 168
District of Columbia, 307-308
Disbursements for major credit programs, by
agency or program, table E-3, 377

Economic Advisers, Council of, 166
Economic assistance, foreign, see Foreign aid
Economic assumptions as base for estimated
receipts, calendar years 1962-64, text and
table, 56
Economic development (Commerce), 190
Economic andfinancialprograms, international,
81-85
Economic Research Service, Agriculture, 176

467

Economy, national:
Effect of expenditures on, discussion, 30-31
Effect of tax reduction on, discussion, 11-15
Federal debt, purchases, and employment as
percentages of, 1942-65, chart, 30
Economy and efficiency in public service, discussion, 33-36
Education:
Analysis of activities, text, and table (1963—
65 payments and recommended 1965 NOA
by program or agency), 119-123
Discussion, 26-27
Elementary and secondary, assistance for, 121
Federal program, 119-123
Higher, assistance for, 121
NOA and expenditures, 1963-65, distributed
by agency, table 14, 137
Education:
Office of, 218-221
Program trends, 1954-65, chart, 122
Science, assistance for, 122
Vocational, discussion, 26
Educational exchange, 266-267
Efficiency and economy in public service, discussion, 33-36
Emergency Planning, Office of, 166
Employees' Compensation, Bureau of, 260
Employment, Federal civilian:
Analysis, 347-351
By agency, summary, table 12, 53
By agency and type of position occupied, as
of June 1963, table C-2, 348
Compared with State and local government,
1942-65, chart, 36
Costs of, in relation to Federal expenditures,
1961-65, table C-4, 351
In relation to population and other employment, 1942-65, table C-3, 350
In relation to the total economy, 1942-65,
chart, 30
Reduction of, discussion, 33-34
Summary as of June 1963-65, table C-l, 347
Employment Security, Bureau of, 259
Engraving and Printing, Bureau of, 272-273
Excise tax proposals, estimated effect of, on
receipts, text and table, 61
Excise taxes, extension of, 14, 61
Executive branch employment, see Employment, Federal civilian
Executive Mansion and Grounds, 165
Executive Office of the President, 165-167
Expenditures:
Administrative budget, see Administrative
budget
Aid to State and local governments:
1954-65, chart, 427
By agency, table 1-1,429
By function, agency, and program, table
1-3, 431-435
In relation to total, and to State-local
revenue, table 1-2, 430
Annexed budgets, table B-7, 343
By agency, for each appropriation and fund
account, analysis, 150—325
By agency, summary, table 5, 45

468

T H E BUDGET FOR FISCAL YEAR

Expenditures—Continued
Commerce and transportation programs,
1954-65, chart, 24
Comparison of 1964 with 1965, text and table,
17
Contribution of, to growth and development
of national resources, discussion, 29
Effect of, on balance of payments, discussion,
28
Effect of, on the economy, discussion, 30-31
Employment costs, in relation to 1961-65,
table C-4, 353
Explanation, 147-148
Government dollar, where it goes, chart, 40
Gross:
Analysis of, 337-346
Of Government-administered funds, table
B-9, 344
Public enterprise,funds, by agency, table
B-1,338
Trust revolving funds, table B-5, 341
Health and Welfare:
1954-65, chart, 26
By agency, table G-1, 399
By category, table G-2, 400
By category, fiscal year 1965, estimated,
chart, 401
By functional program and agency, table
G-4, 404-406
In relation to Government programs, discussion, 16-27
Investment, operating, and other:
Analysis, 352-370
By kind, agency, and program, table D-2,
356-370
Summary, table D-1, 353
Summary, table 6, 46
National income accounts, Federal sector,
1940-65, table 16, 455
National income accounts, Federal sector,
1954-65, table 20, 463
National income basis, summary, table 7, 47
Public works:
1956-65, table F-l, 383
By major function, agency, and program,
table F-7, 391-396
Civil, by agency, table F-2, 384
Water resources and related developments,
table F-6, 390
Reconciliation of, in administrative budget,
consolidated cash statement, and Federal
sector of national income accounts,
1963-65, table A-1, 329
Relation of authorizations to, summary,
table 8, 48
Relation of, to obligational authority, 1965
administrative budget, chart, 49
Research, basic, by agency, table H-3, 409
Research and development:
1954-65, table H-1. 403
AEC, table H-7, 414
By purpose, 1963-65, table H-2, 409
Defense—Military, Department of, table
H-4,411
NASA, table H-6, 413
Space programs, table H-14, 423

1965

Expenditures—Continued
Trust funds:
By function, 1954-65, table 18, 461
By function, distributed by agency, 1963—
65, table 14, 140-144
By function, summary, table 1, 41
By fund, table B-4, 341
Sec also Payments
Explanation of:
Means of financing agency activities, 146-149
NOA requests for each appropriation and
fund account, by agency, 146-147
Export expansion, 85
Export-Import Bank, 294
Export-Import Bank of Washington, 85, 294
Extension Service, 175

Family housing (Defense—Military), 209
Farm Credit Administration, 294-295
Farm financing, 94—95
Farm income stabilization, 92-94
Farm programs, discussion, 22-23
Farmer Cooperative Service, 175
Farmers Home Administration, 183-185
Federal activities, analysis by function, 70-144
Federal aid to State and local governments,
see Aid to State and local government,
Federal
Federal Aviation Agency, 275-276
Federal Bureau of Investigation, 254
Federal civilian employment, see Employment,
Federal
Federal Coal Mine Safety Board of Review, 295
Federal Communications Commission, 295
Federal credit programs, see Credit programs,
Federal
Federal Crop Insurance Corporation, 182
Federal health programs, see Health programs
Federal Home Loan Bank Board, 295-296
Federal Housing Administration, 285
Federal Maritime Commission, 296
Federal Mediation and Conciliation Service, 296
Federal National Mortgage Association, 284285
Federal Power Commission, 296-297
Federal Prison System, 255.
Federal Radiation Council, 167
Federal statistical programs, see Statistical programs, principal Federal
Federal Trade Commission, 297
Field Services Office (Commerce), 193
Finance, international, see International affairs
and finance
Financing agency activities, explanation of
means of, 146-149
Financial assistance, international, 82-85
Fine Arts, Commission of, 293
Fiscal operations, central, 128
Fish and wildlife resources, 99
Fish and Wildlife Service, 245-248
Food and Drug Administration, 217-218
Food for Peace, 22, 92-93
Foreign affairs, conduct of, 86, 263-264
Foreign Agricultural Service, 177

469

INDEX
Foreign aid:
Programs, 82-84
Funds appropriated to the President, 168-170
Discussion, 20-21
Expenditures 1963-65 and recommended
1965 NOA. text table, 72
Foreign Claims Settlement Commission, 297
Foreign currencies:
Availabilities and uses analysis, 440-445
Available to meet U.S. requirements, table
K-2, 442
Cash availability of, table K-1, 440
Special program appropriations—NOA, table
K-4, 445
Summary of transactions—country uses,
table K-6, 445
Summary of transactions, U.S. uses, table
K-3, 443
Summary of U.S. uses without dollar controls, table K-5, 445
Foreign currency programs, special funds appropriated to the President, 173
Foreign economic assistance, see Foreign aid
Foreign information and exchange activities,
85-86
Forest resources, 99
Forest Service, 187-189
Franklin D. Roosevelt Memorial Commission,
298
Freedmen's Hospital, 234
Funds, explanation of kinds of, 146
Funds, public enterprise, see Public enterprise
funds
Funds, trust, see Trust funds

Gallaudet College, 234
General Accounting Office, 297
General Counsel's Office, Agriculture, 185
General government:
Analysis of activities, text and table (1963-65
payments to the public, and 1964 NOA by
program or agency), 128-131
NOA and expenditures, 1963-65, distributed
by agency, table 14, 138-139
Program trends 1954-65, chart, 130
General Services Administration, 276-281
Geological Survey, 243
Government-administered funds, gross expenditures of, table B--9, 344
Government-administered funds, investments
by, in U.S. securities, table B-11, 346
Government civilian employment, Federal,
State, and local, 1942-65, chart, 36
Government dollar: where it comes from;
where it goes, chart, 40
Government enterprises, borrowing by, table
B-10, 345
Government organization, discussion, 35
Government Printing Office, 161
Government programs and expenditures, 16-27
Gross national product:
Administrative budget expenditures as a
percent of, 1942-65, chart, 9

Gross national product—Continued
Federal payments as a percent of, 1942-65,
chart, 6
Public debt as percent of, 1942-65, chart, 31
H
Health, Education, and Welfare, Department
of, 217-236
Health, Education, and Welfare, Department
of, research expenditures analysis, 415
Health insurance for the aged, discussion, 25
Health and welfare programs:
Analysis, 397-406
Discussion, 25-26
Expenditures:
1954-65, chart, 26
By agency, table G-1, 399
By category, table G-2, 400
By category, estimated fiscal year 1965,
chart, 401
By functional program and agency, table
G-4, 404-406
NOA and expenditures, 1963-65, distributed
by agency, table 14, 136-137
Program analysis, text and table (1963-65
payments to the public and recommended
1965 NOA by program or agency) ,111-119
Program trends 1954-65, chart, 116
Public health services, 113, 115
Research, obligations for, text and table
H-8,418
Highways, 105
Historical and memorial commissions, 297-298
Hospital construction, veterans', 126
Hospitals:
Freedmen's Hospital, 234
Operating beds, and patient loads, Federal,
by, agency, table G-3, 402
Saint Elizabeths Hospital, 231
Hospitals and medical care, veterans', 125
House of Representatives, 152-155
Housing:
Private, aids to, 109
Public, 109
Rural, 94
Housing and community development:
Discussion, 24-25
NOA and expenditures, 1963-65, distributed
by agency, table 14, 135-136
Program analysis, text and table (1963-65
expenditures and recommended 1965
NOA, by program or agency), 107-111
Housing and Home Finance Agency, 282-286
Howard University, 234-235
Human resources, investment in, discussion, 29
I
Immigration and Naturalization Service, 255
Income tax proposals, estimated effect of, on
receipts, text and table, 58-61
Income tax revision, discussion, 13-14
Indian Affairs, Bureau of, 238-239
Indian Claims Commission, 298

470

T H E BUDGET FOR FISCAL YEAR

Indians, 98
Information and exchange activities, foreign,
85-86
Information Agency, United States, 306
Information Office, Agriculture, 185
Inland Waterways Corporation, 197
Inland waterways transportation, user charges
on, 15
Inspector General, Office of (Agriculture), 185
Insurance, unemployment, see Unemployment
insurance
Insurance, veterans life, 127
Insurance and welfare, social, 117-119
Inter-American Development Bank, 84
Interest:
Analysis of activities, text and table (1963-65
payments to the public and 1965 recommended NOA), 127-128
NOA and expenditures, 1963-65, distributed
by agency, table 14,138
Interest rates and maturities for major credit
programs, December 1963, table E-5, 380
Interior, Department of the, 236-253
Interior, Department of, research expenditures,
analysis, 416
Internal Revenue Service, 271
International activities (Commerce), 193
International affairs and finance:
Analysis of activities, text and table (1963—
65 payments to the public and 1965 recommended NOA by program or agency), 8187
Discussion, 20-21
NOA and expenditures, 1963-65, distributed
by agency, table 14, 132-133
International Boundary and Water Commission, 265
International commissions, 265-266
International Development, Agency for, 82-84
International Development, Agency for, program trends, 1954-65, chart, 83
International financial institutions, 171
International Labor Affairs, Bureau of, 256
International organizations and conferences,
264-265
International Pacific Salmon Fisheries Com
mission, 266
International Rules of Judicial Procedure, Commission on, 294
International transactions:
Analysis, 446-451
By major agency, table L-2, 447
Distributed by geographic areas, table L-3,
459
Federal payments abroad, by type of transaction, table L-4, 449
Reconciliation of estimates of, with balance
of payments, table L-5, 451
Summary, table L-1, 446
Interstate Commerce Commission, 298
Interstate Commission on the Potomac River
Basin, 301
Interstate-Federal commissions, participation
in, 300-301
Intragovernmental transactions excluded from
consolidated cash statement, table A-2, 331

1965

Investment, operating, and other expenditures:
Analysis, 352-370
By kind, agency, and program, table D-2,

356-370

Summary, table D-1, 353
Summary, table 6, 46
Investments in U.S. securities by Governmentadministered funds, table B-11, 346
j
James Madison Memorial Commission, 298
Judicial Procedure, International Rules of,
Commission on, 294
Judiciary, The, 162-164
Justice, Department of, 253
Juvenile delinquency, 119

Labor, Department of, 256-261
Labor, expenditures for, 1954-65, chart, 26
Labor, see a/50 Health and welfare
Labor-Management Policy, President's Advisory Committee on, 301
Labor-managment relations, 259
Labor-Management Reports, Breau of, 259
Labor-Management Services Administration,
259
Labor and manpower, 116-117
Labor and welfare: program analysis, text and
table (1963-65 payments to the public
and recommended 1965 NOA), by program
or agency, 111-119
Labor programs, discussion, 25-26
Labor Statistics, Bureau of, 256
Land Management, Bureau of, 236-238
Land resources, 96-98
Legal activities and general administration,
Justice, 253-254
Legislation, proposed:
Agricultural programs, 92
Defense—Military, Department of, 79-80
Estimated effect of, on receipts, text and
table, 58-61
Legislative branch, 150-161
Lending, Federal, see Credit programs, Federal
Library of Congress, 159-160
Loan programs, Federal, see Credit programs
M
Management improvement, discussion, 34-35
Management improvement, expenses of, 171
Management services office (Agriculture), 186
Manned space flight, 88
Manpower, Automation and Training, Office of,
256
Manpower Administration (Labor), 256-259
Manpower and labor, 116-117
Mapping and topographic surveys, 100
Maritime Administration, 197-199
Maritime Commission, Federal, 296
Mas* transportation, urban, discussion, 25
Medical and health-related programs, see
Health and welfare programs

471

INDEX
Mental health, 114
Mental illness and retardation, discussion, 25
Mental retardation, 114
Message, Budget, 7
Meteorology, 89-90
Meteorology, research and development, obligations for, 1962, table H-11, 421
Meteorology programs and operations, obligations for, by agency, tables H-9, H-10, 419,
420
Military assistance, 78-79, 210
Military construction, 208-209
Military personnel, 201-203
Military personnel and forces, summary of,
text and table, 73
Mineral resources, 99-100, 243
Minerals Exploration, Office of, 244
Mines, Bureau of, 243-244
Mint, Bureau of, 272
Mixed-ownership enterprises, loans outstanding, table E-6. 382

N
Narcotics, Bureau of, 271
National Aeronautics and Space Administration, 287
National Aeronautics and Space Administration: Research and development, expenditures for, table H-6, 413
National Aeronautics and Space Council, 166
National Capital Housing Authority, 299
National Capital Planning Commission, 299
National Capital Region, 111
National Capital Transportation Agency, 299
National defense, see Defense, national
National Gallery of Art, 304
National Guard and Reserve personnel, text and
table, 76-77
National income accounts:
Federal receipts and expenditures, 1954-65,
table 20, 463
Federal sector:
1940-65, table 16,455
Definitions and relationship to consolidated
cash statement and administrative
budget, 329
Explanation of, 330
Relation of, to receipts from and payments
to the public, summary, table 7, 47
Receipts and expenditures in, summary,
table 7, 47
Relationship to administrative budget and
consolidated cash statement, 1963-65,
table A-1, 329
National Institutes of Health. 227-229
National Labor Relations Board, 299
National Mediation Board, 300
National Park Service, 240-241
National Science Foundation, 300
National Science Foundation, research expenditures, analysis, 415
National Security Council, 166
National Service Corps, discussion, 25

Natural resources:
Analysis of activities, text and table (1963-65
payments to the public and 1965 NOA by
program or agency), 96-100
Discussion, 23
NOA and expenditures, 1963-65, distributed
by agency, table 14, 134
New obligational authority, see Obligational
authority
Nondefense assets, additions to, chart, 29
Nuclear weapons, 80

O
Obligational authority:
Balances of, by agency and type, table 10, 51
New:
Agricultural programs, text table, 91
And writeoffs of public enterprise funds, by
agency, table B-2, 339
By agency, for each appropriation and fund
account, with explanation of requests,
150-325
By agency, table 4, 44
By function, distributed by agency,
1963-65, table 14, 132-144
By type and function, summary, table 3, 43
Comparison of 1964 with 1965, text table,
17
Commerce and transportation, text table,
101
Completeness of estimates for 1964 and
1965,149
Discussion, text table, 15-16
Explanation, 146-147
General government, text table, 129
Health programs, text table, 112
Housing and community development, text
table, 108
Interest, text table, 128
International affairs and finance, text
table, 82
National defense, 72
Natural resources programs, text table, 97
Space programs, by agency, table H-14,423
Special foreign currency programs, table
K-4, 444
Relation of, to expenditures, 1965 administrative budget, chart, 49
Relation of, to expenditures, table 8, 48
Obligations:
Defense—Military, Department of, research
and development, table H-5, 412
Incurred, explanation, 147
Incurred, net, by agency, table 9, 50
Medical and health-related research, by
agency, table H-8, 418
Meteorological research and development,
1965, table H-11,421
Meteorology programs and operations, tables
H-9, H-10, 419-420
Oceanography, by agency, by functional area,
tables H-12, H-13. 422

472

THE

BUDGET

FOR

Obligations—Continued
Statistical programs, by broad subject areas
and by agency, tables J-1 and J-2. 437-438
Water research and surveys, table H-15, 424
Oceanography, obligations for, by agency, by
functional area, tables H-12, H-13, 422
Oil and Gas, Office of, 245
Operating expenditures, see Expenditures:
Investment, operating, and other
Operation and maintenance, Defense—Military,
204-205
Organization, government, discussion, 35
Outdoor Recreation, Bureau of, 241
Outdoor recreation, discussion, 23
Outdoor Recreation Resources Review Commission, 300

Panama Canal, 216
Patent Office, 195
Pay comparability allowance, civilian, 308
Payments, Federal:
Abroad, by type of transaction, table L-4,449
As a percent of gross national product,
1942-65, chart, 6
Composition of, 1942-65, chart, 6
Consolidated cash statement, 1940-65, table
16,455
International transactions, by agency, table
L-2, 447
Summary, text table, 10
Payments to the public:
1954-65, table 19, 462
Agricultural programs, text table, 91
Commerce and transportation, text table, 101
General government, text table, 129
Health programs, table, 112
Housing and community development, text
table, 108
Interest, text table, 128
International affairs and finance, text table,
82
National defense, 72
Natural resources programs, text table, 97
Relation of Federal sector in national income
accounts to, summary, table 7, 47
Summary, by function, 1963-65, table 2, 42
Text table, 18
Payments, see also Expenditures
Peace Corps, 171
Peaceful uses of atomic energy, 80
Pensions, veterans', 125
Permanent authorizations, summary, table 8,
48
Permanent authorizations, summary of new
obligational authority, by type, table 3, 43
Personal property activities, General Services
Administration, 278-279
Personnel management, central, 131
Post Office Department, 261-262
Postal service, 105
Poverty, attack on, discussion, 17-18
Power resources, electric, 98

FISCAL

YEAR

1965

President of the United States:
Compensation of, 165
Funds appropriated to, 168-173
President's Advisory Committee on LaborManagement Policy, 301
Private debt and public debt, net, 1942-65,
chart, 32
Procurement, Defense—Military, 205-207
Productivity in Government, improvement of,
discussion, 33
Program trends, selected, 1954-65, chart, 34
Property management, Federal, 130
Protective services, Department of Justice, 131
Public, receipts from, see Receipts; Payments to
public
Public assistance, 118
Public debt:
As percent of gross national product, 194265, chart, 31
Bureau of the. 270
Compared with statutory limitation, end of
year, table 11,52
Discussion and text table, 31-33
End of year, 1789-1965, table 15, 454
Interest on, 274
Net, and net private debt, 1942-65, chart, 32
Summary, table 11, 52
Public enterprise funds:
Analysis of, 337-346
Balances, table B-3, 340
Gross expenditures and applicable receipts,
by agency, table B-1, 338
NOA and writeoffs by agency, table B-2, 339
Public Health Service. 221-230
Public health services, 113, 115
Public Housing Administration, 286
Public housing programs, 109
Public land management, 236-238
Public Roads, Bureau of, 199-200
Public works:
Acceleration program, by agency, text and
table F-5, 172, 389
Analysis of Federal activities, 383-396
Civil:
Estimated cost of 1965 direct Federal, by
continuing and new work, table F-3, 384
Expenditures and 1965 NOA for, by
agency, table F-2, 386
New authorizations and expenditures, by
major function, agency, and program,
table F-7, 391-396
Defense, new authorizations and expenditures, by major function, agency, and
program, table F-7, 396
Expenditures, Federal, 1956-65, table F - 1 ,
383
Reserve of presently authorized projects and
programs for undertaking after 1965,
table F-4, 388
Water resources and related developments,
expenditures for, table F-6, 390
Purchases, Federal, as a percentage of the total
economy, 1942-65, chart, 30

INDEX
R
Railroad Retirement Board, 301
Readjustment benefits, veterans', 125
Real property activities. General Services
Administration, 276-278
Receipts:
Administrative budget, See Administrative
budget
Annexed budgets, table B-7, 343
By source:
Analysis, 56-67
Detailed list, table 13, 62-67
Summary, table 1, 41
Consolidated cash statement, 1940-65, table
16, 455
Estimated effect of proposed legislation on,
text and table, 58-61
Federal, 1942-65, chart, 14
From the public:
1954-65, table 19, 462
By source, 1963-65, text table, 57
Relation of Federal sector in national
income accounts to, summary, table 7,47
Summary, by source, 1963-65, table 2, 42
Text table, 13
Government dollar, where it comes from
chart, 40
International transactions, by major agency,
table L-2, 447
National income accounts, Federal sector,
1940-65, table 16, 455
National income accounts, Federal sector,
1954-65, table 20, 463
National income basis, summary, table 7, 47
Public enterprise funds, by agency, table

B-1,338
Reconciliation of, in administrative budget,
consolidated cash statement, and Federal
sector of national income, accounts, 1963—
65, table A - l , 329
Summary, text table, 10
Trust funds:
By fund, table B-4, 341
By source, 1954-65, table 17, 456
By source, detailed list, table 13, 67
By source, summary, table 1,41
Trust revolving funds, table B-5, 341
Trust fund, see also Trust funds
Reclamation, Bureau of, 248-250.
Records activities, General Services Administration, 279
Records management, Federal, 130
Recreation, outdoor, discussion, 23
Recreational resources, 99
Rehabilitation, 50
Reimbursements from outside Government,
credited to appropriations and intragovernmental funds, table B-8, 343
Renegotiation Board, 301
Research:
Agricultural, 95
Basic, expenditures for, table H-3, 409
Health, 113
Medical and health-related, obligations for,
text and table H-8, 418

473

Research—Continued
Space programs, new obligational authority
and expenditures, table H-14, 423
Water research and surveys, analysis of
obligations for, table H-15, 424
Research and development:
Administrative budget expenditures, 1954-65,
chart, 407
Agriculture, Department of, expenditures for,
analysis, 19, 415
Analysis, 407-426
Atomic Energy Commission expenditures
for, table H-7, 414
Commerce Department expenditures analysis, 416
Defense—Military, Department of:
Analysis, 207-208, 410
Expenditures, table H-4, 411
Obligations, table H-5, 412
Expenditures:
1954-65, table H-1, 408
1963^5, by purpose, table H-2, 409
Administrative budget, by agency, table
H-16, 426
Health, Education, and Welfare, Department
of, expenditures for, analysis, 415
Interior Department expenditures analysis,
416
Meteorology, obligations for, 1963-65, tables
H-9, H-11,419, 421
National Aeronautics and Space Administration expenditures for, table H-6, 413
National Science Foundation expenditures
for, analysis, 415
Oceanography, obligations for, tables H-12,
H-13, 422-423
Research and technology:
Aeronautics, 87
Space, 21-22, 87-89
Space, 1954-65, chart, 89
Reserve and National Guard personnel, text
table, 76-77
Reserve forces, Defense, 76-77
Resources, agricultural, see Agriculture
Resources, natural, see Natural resources
Resume, budget, table 1, 41
Revenues, estimated changes in, 56-61
Revolving funds, trusts, see Trust funds, revolving
Revolving and management funds, Defense—
Military, 211-213
Rural Areas Development, Office of, 185
Rural electrification, financing of, 94
Rural Electrification Administration, 183
Rural Electrification Administration, proposed
revolving fund, effect of, on receipts, text and
table, 6(^61
Rural housing, 94
Rural telephones, financing of, 94
Ryukyu Islands, Army, 215

Saint Elizabeths Hospital, 231
Saint Lawrence Seaway Development Corporation, 302

474

THE

BUDGET

FOR

Salary reform, Federal, discussion, 35-36
Saline Water, Office of, 251
Saline water conversion, 96
Science education, discussion, 27
Science education and basic research, 122
Science information activities, 425
Science and Technology (Commerce), 194
Science and Technology, Office of, 167
Scientific activities, Federal, see Research and
development
Sealift and airlift, Defense, 76
Secret Service, U.S., 271
Securities and Exchange Commission, 302
Securities, U.S., investments in, by Governmentadministered funds, table B-11, 346
Selective Service System, 302
Senate, 150-152
Small business, aids to, 102
Small Business Administration, 302-303
Smithsonian Institution, 303-304
Social insurance and welfare services, 117-119
Social Security Administration, 231
Soil Conservation Service, 175-176
Soldiers' Home, U.S., 215
Solicitor, Office of (Interior), 252
Solicitor, Office of (Labor), 261
Southeastern Power Administration, 251
Southwestern Power Administration, 251
Space investigations, unmanned, 88
Space flight, manned, 88
Space programs, new obligational authority and
expenditures for, table H-14, 423
Space research and technology:
Analysis of activities, text and table (1963-65
payments to the public and recommended
1965 NOA by program), 87-90
1954-65, chart, 89
Discussion, 21-22
NOA and expenditures, 1963-65, distributed
by agency, table 14, 133
Special projects, White House Office, 165
Sport Fisheries and Wildlife, Bureau of, 247-248
Standards, National Bureau of, 195
State, Department of, 263-267
State and local governments, Federal aid to,
see Aid to State and local governments
Statistical programs:
Analysis, 436-439
Obligations for, by agency, table J-2, 438
Obligations for, by broad subject areas, table

J-1,437
Statistical Reporting Service, Agriculture, 176
Strength and composition of Active Armed
Forces, 73
Study Commissions, U.S.—Southeast River
Basins and Texas, 307
Subversive Activities Control Board, 304
Supreme Court of the United States, 162
Surplus or deficit:
Administrative budget, 1789-1965, table 15,
454

FISCAL YEAR

1965

Surplus or deficit—Continued
Consolidated cash statement, and national
income accounts, Federal sector, 1940-65,
table 16, 455

T
Tariff Commission, 305
Tax Court of the United States, 305
Tax reduction, discussion, 11-15
Technical Services Office (Commerce), 196
Tennessee Valley Authority, 305
Territories, Office of, 241-242
Territories and possessions, 131
Topographic surveys and mapping, 100
Trade Adjustment Office (Commerce), 193
Trade expansion, 102
Trade Negotiations, Special Representative for,
167
Transportation:
Commerce, 197
Inland waterways, user charges on discussion,
15
Mass, urban area, discussion, 25
Tax and user charges on, text and table, 60-61
Transportation, see also Commerce and transportation
Transportation and communications activities,
General Services Administration, 279-280
Transportation policies, 104
Transportation programs:
Aviation, 104
Discussion, 23-24
Expenditures, 1954-65, chart, 24
Water, 105
Travel Service, U.S. (Commerce), 193
Treasurer, Office of the, 270
Treasury Department, 268-274
Trust funds:
Analysis of, 337-346
Balances, table B-6, 342
By agency, grand totals, 309-323
Expenditures:
By agency, summary, table 5, 45
Aid to State and local governments,
1954-65, chart, 427
Aid to State and local governments, by
agency, table 1-1, 429
Aid to State and local governments, by
function, agency, and program, table
H-3, 461
By function, 1954-65, table 18, 463
By function, summary, table 1, 41
By fund, table B-4, 341
Investment, operating, and other, summary, table 6, 46
Investment, operating, and other, table
D-2, 367-370
Relation of, to obligational authority, summary, table 8, 49

475

INDEX
Trust funds—Continued
New obligational authority, by type and
function, and by agency, summary, table 3,
43-44
Obligational authority, balances of, by
agency and type, summary, table 10, 51
Obligations incurred, net, by agency, table 9,
50
Receipts:
By fund, table B-4, 341
By source:
1954-65, table 17, 456
Detailed list, table 13, 67
Summary, table 1, 41
Text table, 57
Revolving, expenditures and applicable receipts, table B-5, 341
Summary, table 1, 41
U
Unemployment insurance revision, discussion
of, 26
United States Arms Control and Disarmament
Agency, 305
United States Information Agency, 306
United States Secret Service, 271
United States Soldiers' Home, 215
United States Territorial Expansion Memorial
Commission, 298
United States Travel Service (Commerce), 193
Urban Renewal, 24, 107-109
User charges, discussion, 15
User charges, proposed, estimated effect of,
on receipts, text and table, 60-61
Utilization and disposal activities, General
Services Administration, 279

Veterans Administration, 288-290
Veterans benefits and services:
Analysis of activities, text and table (1963-65
payments to public and recommended 1965
NOA by program or agency), 123-127
Discussion, 27
NOA and expenditures, 1963-65, distributed
by agency, table 14, 137-138
Program trends 1954-65, chart, 126
Virgin Islands Corporation, 252-253
Vocational education, discussion, 26
Vocational rehabilitation, 50
Vocational Rehabilitation Administration, 221
W
Wage and Hour Division, 260
Wage and Labor Standards, 259-260
Water and power development, 248-251
Water research, obligations for, by agencies text
and table H-l 5, 424
Water resources development, expenditures for,
table F-6, 390
Weather Bureau, 196-197
Weather service, see Meteorology
Welfare, see also Health and welfare
Welfare Administration (DHEW), 232-233
White House Office, 165
Women's Bureau, 259
Woodrow Wilson Memorial Commission, 298
Workload increases for selected programs,
1954-65, chart. 34

Youth training and employment, 26

U. S. GOVERNMENT PRINTING OFFICE : 1964 O - 700-000

EDGE I N D E X
Budget Message
of the President

NASA

Summary Tables

Veterans
Administration

Receipts

Other Independent
Agencies

Analysis of Federal
Activity by Function

District of
Columbia

New Obligational
Authority and
Expenditures by
Function and Agency

Special Allowances
Trust Funds

Legislative
Branch

Memo.-Annexed
Budgets

CCS
Q.

HOW TO USE

Judiciary

3 Measures of Federal
Financial Transactions

Executive Office
of the President

Public Enterprises,
Trust Funds, and
Gross Expenditures
of the Government

Funds Appropriated
to the President
Agriculture

Civilian Employment,
Executive Branch

Commerce

Investment,
Operating, and
Other
Expenditures

UlX

Defense—M i I i tary

<z
Defense—Civil
Health, Education,
and Welfare

•i

Federal Credit Programs
Federal Activities in
Public Works

Federal Health
Programs

Interior
Justice
Labor

z
02

Treasury

ft. 2

Principal Federal
Statistical Programs

QO
LU 00
J

Foreign Currency
Availabilities and Uses

International
Transactions

General Services
Administration

Historical Tables

Housing and Home
Finance Agency

A to Z Index

OPEN THERE.

\IDOE INDEX

Federal Aid to State &
Local Governments

Atomic Energy
Commission
Federal Aviation
Agency

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Full text of Budget of the United States Government : Fiscal Year Ending June 30, 1965

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