September 4, 1963
PAGE 16291
PERIODIC REVIEW OF FEDERAL GRANTS-IN-AID
Mr. MUSKIE. Mr. President, I introduce, for appropriate reference, a bill to Provide for periodic congressional review of future Federal grants-in-aid to the States and to local units of government. Similar legislation has been introduced in the House of Representatives. I am honored that more than a quarter of the Members of the Senate have placed their names on this measure as cosponsors. This distinguished list includes Senators MANSFIELD, BARTLETT, BENNETT, BIBLE, BOGGS, BREWSTER, BYRD of West Virginia, CASE, CLARK, DODD, DOUGLAS, ERVIN, GRUENING, HARTKE, INOUYE, JACKSON, LONG of Missouri, MCCARTHY, MCGEE, MCINTYRE, METCALF, MILLER, MOSS, PEARSON, PELL, RANDOLPH, and RIBICOFF. I ask unanimous consent to have this bill lie on the table for 7 days so that other Senators may join in cosponsoring it.
The proposed legislation would implement a recommendation of the Advisory Commission on Intergovernmental Relations, of which the senior Senator from South Dakota, the senior Senator from North Carolina, and I are members.
The present bill embodies technical improvements over S. 2286, a corresponding measure introduced in the 87th Congress, mainly involving definitions of terms used in the bill.
The objective of this proposed legislation is to establish a uniform policy and procedure for review of new grant-in-aid programs which are designed to assist States or their political subdivisions in meeting recognized national needs. The bill is intended neither to encourage nor discourage the use of the Federal grant-in-aid device, but only to improve it where it is found desirable by the Congress.
The grant-in-aid has been a most useful instrument in furthering Federal-State-local collaboration. Some authorities consider it the most significant manifestation of cooperative federalism. It has been used to encourage concerted State and local action in carrying out governmental functions in the national interest. It has been designed to meet emergency problems of a critical nature, as when as to provide for long-term cooperative programs. Generally speaking, the history of grants-in-aid indicates they have done much to strengthen our Federal system of Government by increasing the effectiveness of State and local governments.
Nevertheless, as all of us know, there is a persistent tendency for such programs, once enacted, to go on and on, no matter how useful they may be, without a meaningful or consistent congressional reexamination of their effectiveness as instruments of intergovernmental cooperation. The record shows that only 14 Federal grant-in-aid programs have ever been terminated, in spite of numerous efforts in Congress to terminate or redirect particular grants. In my judgment, the failure of Congress to give continued and systematic attention to the problem helps to explain why this device is frequently the target of severe criticism. Congress ought to have a uniform policy and procedure for periodic review of grants-in-aid, not only to answer the critics, but to assure ourselves that programs we adopt are either adjusted to meet changing conditions or terminated when their original purposes have been achieved.
Under the bill, any new grant program hereafter enacted by the Congress would automatically expire at the end of 5 years unless an earlier date were specifically provided, or unless application of the act had been specifically waived, in recognition of the intent to provide continuing Federal assistance in a given program. The bill provides that the appropriate legislative committees in the Congress shall, at the end of 4 years, address themselves to the following questions:
First. The extent to which the purposes for which the grants-in-aid are authorized have been met.
Second. The extent to which the states or political subdivisions thereof are able to carry on such programs without further financial assistance from the United States.
Third. Whether or not any changes in the purpose or direction of the original program should be made.
The proposed legislation does not apply to existing grants, but we hope that such programs also will be assessed periodically by Congress and the executive agencies in terms of the same criteria provided in the bill. The importance of Federal grants-in-aid is beyond question. Programs that have almost quadrupled over the past 10 years and will consume over $10 billion of Federal funds during this fiscal year alone demand the continued and effective attention of Congress.
We are aware, of course, that grant programs are presently subject to general legislative oversight by the cognizant legislative committees and to annual review of budget requests by the Appropriations Committees. In addition, the executive agencies give close attention to the operation of programs for which they are held responsible.
Yet, I am certain the proposed legislation would have two salutary effects. It would strengthen the existing review machinery through a systematic and uniform policy and procedure for review and reexamination of new grant programs. It would also encourage the Congress, as well as the executive branch, to make a decision at the time new grant-in-aid programs are considered as to whether such programs should be used merely as devices to stimulate concerted State and local action, or as long-term cooperative ventures. Basically, I believe this proposed legislation would serve to strengthen the grant-in-aid approach to intergovernmental cooperation. Through systematic review and revision procedures, we would be able to strengthen the good points of grant-in-aid programs. We would also be able to redirect them to meet changing conditions and challenging new national problems, avoid disruption of such programs, and prevent the continuation of programs beyond their useful life.
This kind of legislation, in my opinion, can have far-reaching significance in improving our Federal system of government. It is the kind of bill which all Members can conscientiously support, since its basic objective is to strengthen congressional control over Federal aid programs.
I ask unanimous consent that the text of the bill be printed in the RECORD.
The PRESIDENT pro tempore. The bill will be received and appropriately referred; and, without objection, the bill will be printed in the RECORD, and lie on the table, as requested by the Senator from Maine.
The bill (S. 2114) to provide for periodic congressional review of Federal grants-in-aid to States and to local units of government, introduced by Mr. MUSKIE, was received, read twice by its title, referred to the Committee on Government Operations, and ordered to be printed in the RECORD, as follows:
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
STATEMENT OF PURPOSE
SECTION 1. It is the purpose and intent of this Act to establish a uniform policy and procedure whereby programs for grant-in-aid assistance from the Federal Government to the States or to their political subdivisions which may be enacted hereafter by the Congress shall be made the subject of sufficient subsequent review by the Congress to insure that (1) the effectiveness of grants-in-aid as instruments of Federal-State-local cooperation is improved and enhanced; (2) grant programs are revised and redirected as necessary to meet new conditions arising subsequent to their original enactment; and (3) grant programs are terminated when they have substantially achieved their purpose.
EXPIRATION OF GRANT-IN-AID PROGRAMS
SEC. 2. Where any Act of Congress enacted in the Eighty-ninth or any subsequent Congress authorizes the making of grants-in-aid to two or more States or to political subdivisions of two or more States and no expiration date for such authority is specified by law, then the authority to make grants-in-aid by reason of such Act to States, political subdivisions, and other beneficiaries from funds not theretofore obligated will expire on June 30 of the fifth calendar year which begins after the effective date of such Act.
COMMITTEE STUDIES OF GRANT-IN-AID PROGRAMS
SEC. 3. Where any Act of Congress enacted in the Eighty-ninth or any subsequent Congress authorizes the making of grants-in-aid over a period of four or more years to two or more States or to political subdivisions of two or more States, then during the twelvemonth period immediately preceding the date on which such authority is to expire the committees of the House and of the Senate to which legislation extending such authority would be referred shall, separately or jointly, conduct studies of the program under which such grants-in-aid are made with a view to ascertaining, among other matters of concern to the committees, the following:
(1) The extent to which the purposes for which the grants-in-aid are authorized have been met.
(2) The extent to which such programs can be carried on without further financial assistance from the United States.
(3) Whether or not any changes in purpose or direction of the original program should be made.
Each such committee shall report the results of its investigation and study to its respective House not later than ninety days before such authority is due to expire.
DEFINITIONS
SEC. 4. For the purposes of this Act
(1) The term "State" means the government of a State, or any agency or instrumentality of a State.
(2) The term "political subdivision" means a local unit of government, including specifically a county, municipality, city, town, township, or a school or other special district created by or pursuant to State law.
(3) The term "grant-in-aid" means money, or property provided in lieu of money, paid or furnished by the United States under a fixed annual or aggregate authorization
(A) to a State or political subdivision of a State; or
(B) to a beneficiary under a State-administered plan or program which is subject to approval by a Federal agency;
if such authorization either (I) requires that States or political subdivisions expend nonFederal funds as a condition for the receipt of money or property from the United States, or (if) specifies directly, or establishes by means of a formula, the amounts which may be paid or furnished to States or political subdivisions, or the amounts to be allotted for use in each of the States by the State, political subdivisions, or other beneficiaries. The term does not include (1) shared revenues, (2) payments of taxes, (3) payments in lieu of taxes, (4) loans or repayable advances, (5) surplus property or surplus agricultural commodities furnished as such, (6) payments under research and development contracts or grants which are awarded directly and on similar terms to all qualifying organizations, whether public or private, or (7) payments to States or political subdivisions as full reimbursement for the costs incurred in paying benefits or furnishing services to persons entitled thereto under Federal laws.