grant where the other community just adjacent to it is liable for whatever tax may go with the provision of a Federal grant, and at the same time they are not eligible to participate when in their estimation they can see little or no difference.

Mr. BATT. That is true, sir, particularly where it is an isolated instance. The whole northern part of your State of course is eligible for help and some very substantial assistance has been provided in these areas. It has done some good.

Mr. LANGEN. I am aware of this. This is what has caused the confusion.

JUSTIFICATION OF THE ESTIMATES

Mr. BOLAND. Page 18 indicates the necessity for the $500 million requested. This brings it up to $900 million, which is the total authorization under this program and on the $400 million we have discussed you have 3,756 projects. Insert in the record pages 18 through 23.

(The pages follow:)

REQUIREMENTS FOR ADDITIONAL FUNDS

With virtually all of the $400 million appropriation committed, the participating agencies were asked at the end of January to submit additional high priority projects in eligible areas. Agencies responsible for direct Federal projects were permitted to submit projects estimated to cost up to $1 million. Previously they had been limited to projects estimated to cost up to $400,000. Many desirable projects that could be substantially completed within the 12 month statutory limitation had to be eliminated from the program thus far because of the instruction from the conference committee to limit direct Federal projects to $400,000. We do not believe that this limitation should be continued. We do not anticipate that projects exceeding $1 million in cost will be approved except in a relatively few isolated instances.

Agency submissions for direct Federal projects to be financed by this supplemental appropriation total $245 million and involve some 1,217 projects. We anticipate that the agencies will be able to approve projects involving $105 million. Direct Federal projects are selected after the projects submitted from local governments are programed. This is done to assure that legislative criteria on area priority are met and that the prescribed division of funds between urban and nonurban areas is carried out. As a result, the major portion of direct Federal projects will go to economically distressed 5(b) areas that have not submitted projects requiring local matching funds. Direct Federal projects are expected to utilize approximately 20 percent of the $500 million requested.

As of February 8, when we announced that processing would be deferred on any new applications, local and State agencies had submitted for financing by this supplemental appropriation approximately 4,461 project applications involving $1.041 million consisting of 2,800 projects involving $580 million submitted to the Housing and Home Finance Agency, 1,265 projects involving $334 million submitted to the Department of Health, Education, and Welfare, and 396 grant-in-aid projects involving $127 million submitted to other agencies.

Over the past 3 months applications from State and local communities have been coming in at the rate of $300 million per month to HHFA and at the rate of $150 million per month to HEW. We estimate that only $390.5 million will be available to these agencies and a small number of State and local projects in other agencies from the $500 million requested.

The basic authorizing legislation provided the criteria and guidance to facilitate the difficult and time-consuming process of approving projects from the many applications. Depending on the geographical area involved and the applications already submitted from the area, it is possible that some applications received after February 8 will be approved. The process of programing the additional funds will continue to the end of the fiscal year, but practically all

program determinations will be made within 45 days after the appropriation becomes available.

The following table gives our current estimate of the probable allocation of the $500 million appropriation requested and the types of projects involved. Some changes may occur in these proposed allocations by agency as specific projects are fitted in with the limitations described above. The additional program will provide some 750,000 man-months of employment.

SUMMARY OF ALLOCATIONS AND SUPPLEMENTAL REQUESTS

The following table summarizes present allocations, the revised request, and the supplemental requirements by fiscal year:

Mr. BOLAND. What are the number of projects, exclusive of the 3,756, which are taken care of under the $400 million? What is the total number under the $500 million authorization?

Mr. BATT. Well, sir, we have submitted here today a list of projects submitted by the agencies to us containing 6,211 projects worth $1.2 billion. In this bluebook which we have summarized for the help of the committee

Mr. BOLAND. The $500 million you are requesting here you intend to allocate to the various agencies in the manner in which you describe on APW-19 through APW-20, is that right?

Mr. BATT. That is our tentative intention.

ACCEPTANCE OF ADDITIONAL APPLICATIONS

Mr. BOLAND. Are you accepting any more applications under this program?

Mr. BATT. We are accepting them, sir, but we have alerted the country as nearly as we can that, because of the tremendous flood of applications, we are not processing them unless they come from the hardest hit, or over 50-percent areas.

DISTRIBUTION OF PROJECTS APPROVED BY STATE

Mr. BOLAND. Are there many States now that have requested grants under this program which would exceed the 10 percent permissible under the law?

Mr. BATT. Not many, sir; no. I think the principal ones that are far over would be Pennsylvania and Michigan.

Mr. BOLAND. I think it would be interesting to put in the record a list of the States and the amounts that have been allocated under the $400 million program. It will show that States like West Virginia, Kentucky, Tennessee, and areas which have been hard hit by unemployment, have benefited most under the program. I notice West Virginia has received $11,200,000 while the entire State of California runs $10 million. Are those correct figures? This is the Federal contribution to West Virginia under the $400 million program. I take it out of the record you submit here.

Mr. BATT. West Virginia as of the latest date, March 14, has benefited to the extent of $14 million.

Mr. BOLAND. You have the latest figure.

Mr. BATT. That is slightly more than California.

Mr. BOLAND. Will you put in the record the total amounts for the various States? I think it indicates rather emphatically that the problems of unemployment in the most severely affected areas you have tried to meet by the allocations of these funds.

(The information follows:)

Distribution of $400,000,000 appropriation by States, types of areas and estimated on-site employment projects approved as of Mar. 14, 1963

Mr. BOLAND. Mr. Reporter, we will put in this table dated February 15, "Recapitulation of the programs submitted by all participating agencies for consideration under the proposed $500 million supplemental accelerated public works appropriation."

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