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B-164031(2) 1 (1970-10-21)

handle is hein.gao/gaobabkll0001 and id is 1 raw text is: S RESTRICTED -Not to be released ousiA the Qeneral Accoun FAIT~fic approval by the Office of aS 5rTh,1ON D ol wvhich is kept hy Drr-tl b~t'pro SCtoq rulcatuone Branchr OAS B-164031(2) RELASE 2 1 1970 ~RELEASED Dear Mr. Chairman In response to the request of August 14, 1970, from the Staff Director of the Committee on Public Works, United States Senate, we have examined into the extent to which funds were withheld by the Administration from fiscal year 1970 Federal appropriations for extramural medical and biomedical science research and for financial assistance to health professions schools. We were also requested to determine the reasons that funds were withheld and the disposition of the funds withheld. The Committee received information that the National Institutes of Health were withholding research funds from schools and universi- ties. We examined into the matter and found that about $97 7 million of the fiscal year 1970 appropriations for extramural medical and biomedical science research and for financial assistance to health professions schools had been withheld. This amount is substantially less than the amount said to have been withheld. Our review of budgetary documents and discussions with budget officials at the National Institutes of Health showed that funds had been withheld in two stages. First, funds were withheld as a result of efforts by the Admin- istration to keep 1970 Federal outlays within the budget estimate of $192.9 billion. In carrying out this budgetary objective, the Office of Management and Budget established a specific 1970 outlay ceiling of $50.6 billion for the entire Department of Health, Education, and Welfare. The Department, in turn, established across-the-board- reduction guidelines which resulted in the withholding of approxi- mately $39.5 million of the National Institutes of Health's appropria- tions for extramural medical and biomedical science research and for financial assistance to health professions schools. The reduction guidelines, which were not applied to training and construction grants, provided for. 1. Reducing new and competing research, demonstration, and services project grants by 10 percent. 2. Reducing the funding level of noncompeting continu- ations of research, demonstration, and services project grant programs by 5 percent.

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