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1961 Washington Report 1 (1961)

handle is hein.tera/wingtore0011 and id is 1 raw text is: 920 Washington Building No. 1-1961 Washington 5, D. C. iharch 16, 1961 FEDTI.AL ASSISTANCE TO DEPRESSED AREAS The extent to which the Federal government should assume responsibility for solution of the problem of chronically depresscd areas is the basic point at issue in legislation which has reached the stage of action in Congress. 1passage by the Senate and ap-.roval by a House subcommittee of bills with few differences bring to the point of dtciLi-n a controversy extondin- over several years. The question of whether t *e program provides the tyme of asistance most desirable and gives best assurance of lasting results provokes iuide differences of opinion. The movement for Federal lcgislation appears to have developed new strangth in the present session, for two ma.or reasonis: first, its endorsement by president Kennedy; and second, a worsening of cconomic conditions. Former President Eisenhower, who in his final budget message in January noted that for five years he had advocated more effective Federal assistance without merely substitutin7, temporary Federal aid for indispensable local leadership, vetoed one bill in September 1958 and another in Hay 1960. Kenedy Endorsement President Kennedy, in his special messar~e to Congress on economic recovery and growth on February 2, asserted that 'the distressed areas constitute a national problem that is properly the concern of the Federal government. The subject has been studied by standinp and special corriittees of the Congress, by individual states, by groups of stetes, and private study roups, continued the President. There is veneral erreement that we should enact legislation providing the means for loans for private projects, technical assistance, loans and zrants for public facilities, and programs for training and retraining workers. I urge that any area redevelopment program be flexible enough to benefit urban and rural areas alike and to apply to regions of economic distress which include parts of two or more states. The immediate subsistence needs of the people of these econoically depressed areas must be met, but it is equally important thct these areas be enabled to acquire the basic facilities, physical plant and trained labor force necessary to secure their share of the nation's economiic expansion. Terms of Bills and Actions in Congress The Senate on llarch 15 passed S. 1, introduced by Senator Douglas (f-Ill.), who was chairman of a task force on the problem appointed by Prcsident Kennedy prior to his inauguration. The vote on a roll call was 63 to 27. As passed, the

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