[House Report 104-659]
[From the U.S. Government Publishing Office]



104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     104-659
_______________________________________________________________________


 
  DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION, AND 
               RELATED AGENCIES APPROPRIATION BILL, 1997

                                _______
                                

  July 8, 1996.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

_______________________________________________________________________


    Mr. Porter, from the Committee on Appropriations, submitted the 
                               following

                              R E P O R T

                             together with

                    ADDITIONAL AND DISSENTING VIEWS

                        [To accompany H.R. 3755]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making 
appropriations for the Departments of Labor, Health and Human 
Services (except the Food and Drug Administration, Indian 
Health Service, and the Office of Consumer Affairs), and 
Education (except Indian Education), Armed Forces Retirement 
Home, Corporation for National and Community Service, 
Corporation for Public Broadcasting, Federal Mediation and 
Conciliation Service, Federal Mine Safety and Health Review 
Commission, National Commission on Libraries and Information 
Science, National Council on Disability, National Labor 
Relations Board, National Mediation Board, Occupational Safety 
and Health Review Commission, Physician Payment Review 
Commission, Prospective Payment Assessment Commission, Railroad 
Retirement Board, the Social Security Administration, and the 
United States Institute of Peace for the fiscal year ending 
September 30, 1997, and for other purposes.

                        INDEX TO BILL AND REPORT

_______________________________________________________________________


                                                            Page number

                                                            Bill Report
Title I--Department of Labor:
        Employment and Training Administration.............     2
                                                                      9
        Pension and Welfare Benefits Administration........     9
                                                                     17
        Pension Benefit Guaranty Corporation...............     9
                                                                     17
        Employment Standards Administration................     9
                                                                     18
        Occupational Safety and Health Administration......    13
                                                                     20
        Mine Safety and Health Administration..............    16
                                                                     21
        Bureau of Labor Statistics.........................    17
                                                                     21
        Departmental Management............................    17
                                                                     22
        Assistant Secretary for Veterans Employment and 
            Training.......................................    18
                                                                     23
        Office of the Inspector General....................    18
                                                                     24
        General Provisions.................................    19

Title II--Department of Health and Human Services:
        Health Resources and Services Administration.......    22
                                                                     25
        Centers for Disease Control and Prevention.........    25
                                                                     42
        National Institutes of Health......................    26
                                                                     53
        Substance Abuse and Mental Health Services 
            Administration.................................    32
                                                                     92
        Agency for Health Care Policy and Research.........    33
                                                                     97
        Health Care Financing Administration...............    33
                                                                     99
        Administration for Children and Families...........    35
                                                                    103
        Administration on Aging............................    39
                                                                    115
        Office of the Secretary............................    39
                                                                    118
        General Provisions.................................    40

Title III--Department of Education:
        Education Reform...................................    44
                                                                    125
        Education for the Disadvantaged....................    44
                                                                    127
        Impact Aid.........................................    45
                                                                    130
        School Improvement Programs........................    45
                                                                    131
        Bilingual and Immigrant Education..................    46
                                                                    137
        Special Education..................................    46
                                                                    138
        Rehabilitation Services and Disability Research....    47
                                                                    143
        Special Institutions for Persons with Disabilities.    47
                                                                    146
        Vocational and Adult Education.....................    48
                                                                    148
        Student Financial Assistance.......................    48
                                                                    149
        Federal Family Education Loans.....................    49
                                                                    152
        Higher Education...................................    49
                                                                    152
        Howard University..................................    50
                                                                    160
        Higher Education Facilities Loans..................    50

        College Housing and Academic Facilities Loans......    50
                                                                    161
        Historically Black College and University Capital 
            Financing......................................    51
                                                                    162
        Education Research, Statistics, and Improvement....    51
                                                                    162
        Libraries..........................................    52
                                                                    167
        Departmental Management............................    52
                                                                    168
        Office for Civil Rights............................    52
                                                                    169
        Office of the Inspector General....................    53
                                                                    170
        General Provisions.................................    53
                                                                    170
Title IV--Related Agencies:
        Armed Forces Retirement Home.......................    56
                                                                    171
        Corporation for National and Community Service.....    57
                                                                    171
        Corporation for Public Broadcasting................    57
                                                                    172
        Federal Mediation and Conciliation Service.........    57
                                                                    173
        Federal Mine Safety and Health Review Commission...    59
                                                                    173
        National Commission on Libraries and Information 
            Science........................................    59
                                                                    174
        National Council on Disability.....................    59
                                                                    174
        National Education Goals Panel.....................    59
                                                                    174
        National Labor Relations Board.....................    60
                                                                    175
        National Mediation Board...........................    61
                                                                    175
        Occupational Safety and Health Review Commission...    61
                                                                    175
        Physician Payment Review Commission................    61
                                                                    176
        Prospective Payment Assessment Commission..........    61
                                                                    176
        Railroad Retirement Board..........................    65
                                                                    177
        Social Security Administration.....................    62
                                                                    178
        United States Institute of Peace...................    67
                                                                    182
Title V--General Provisions................................    67

        House of Representatives Report Requirements.......
                                                                    182

                Summary of Estimates and Appropriations

    The following table compares on a summary basis the 
appropriation including trust funds for fiscal year 1996, the 
budget estimate for fiscal year 1997, and the Committee 
recommendations for fiscal year 1997 in the accompanying bill.

                                 1997 LABOR, HHS, EDUCATION APPROPRIATIONS BILL                                 
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                             Fiscal year--               1997 committee compared
                                                ---------------------------------------           to--          
                                                                                       -------------------------
                                                     1996     1997 budget      1997         1996                
                                                  comparable                committee    comparable  1997 budget
----------------------------------------------------------------------------------------------------------------
Department of Labor............................      $11,345      $12,721      $11,344           -1      -$1,377
                                                ================================================================
Department of Health and Human Services:                                                                        
    Public Health Service:                                                                                      
        Health Resources and Services                                                                           
         Administration........................        3,257        3,293        3,260           +3          -33
        Centers For Disease Control............        2,112        2,239        2,187          +75          -52
        National Institutes of Health..........       11,928       12,377       12,747         +819         +370
        Substance Abuse and Mental Health                                                                       
         Services Administration...............        1,883        2,098        1,849          -34         -249
        Retirement Pay and Medical Benefits for                                                                 
         Commissioned Officers.................          167          176          176  ...........  ...........
        Health Care Policy and Research........          125          144          125           +0          -19
                                                ----------------------------------------------------------------
          Subtotal, Public Health Service......       19,472       20,327       20,344         +872          +17
                                                ================================================================
    Health Care Financing Administration.......      146,687      165,328      164,858      +18,171         -470
    Administration for Children and Families...       32,367       36,328       34,421       +2,054       -1,907
    Administration on Aging....................          829          828          811          -18          -17
    Office of the Secretary....................          222          219          203          -19          -16
      Total, HHS current year..................      199,577      223,030      220,637      +21,060       -2,393
      Advances.................................       30,955       34,800       33,800       +2,845       -1,000
                                                ================================================================
Department of Education........................       25,230       28,034       25,231           +1       -2,803
Related Agencies...............................       35,468       38,198       37,158       +1,690       -1,040
    Social Security Administration.............       34,399       37,070       36,125       +1,726         -945
      Grand Total, current year................      271,620      301,983      294,370      +22,750       -7,613
      Advances.................................       40,635       44,925       43,900       +3,265       -1,025
                                                ================================================================
Current year total using 602(b) scorekeeping...      264,191      293,570      285,611      +21,420       -7,959
                                                ----------------------------------------------------------------
    Mandatory..................................      200,943      220,068      219,950      +19,007         -118
    Discretionary..............................       63,248       73,502       65,661       +2,413       -7,841
----------------------------------------------------------------------------------------------------------------


                                                  DISCRETIONARY                                                 
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                             Fiscal year--               1997 committee compared
                                                ---------------------------------------           to--          
                                                                                       -------------------------
                                                     1996         1997         1997         1996         1997   
                                                  comparable     budget     committee    comparable     budget  
----------------------------------------------------------------------------------------------------------------
Department of Labor............................       $9,419      $10,802       $9,425          +$6      -$1,377
Department of Health and Human Services........       28,881       31,233       29,837         +956       -1,396
Department of Education........................       21,512       26,820       22,757       +1,245       -4,063
Related Agencies...............................        3,860        4,647        3,910          +50         -737
Scorekeeping Adjustments.......................         -424            0         -269         +155         -269
                                                ----------------------------------------------------------------
      Total discretionary......................       63,248       73,502       65,661       +2,413       -7,841
----------------------------------------------------------------------------------------------------------------

Total Appropriations for Labor, Health and Human Services and Education 
                                Programs

    In addition to the amount included in the bill, very large 
sums are automatically appropriated each year for labor, health 
and human services, social security and education programs 
without consideration by the Congress during the annual 
appropriation process. The principal items in this category are 
the unemployment compensation, social security, Medicare, and 
railroad retirement funds, federal payments for interest 
subsidy, default and servicing costs for the Federal Family 
Assistance Loan program and full cost of loans made under the 
Direct Student Loan Program. The detailed estimates for the 
trust fund and permanent appropriations are reflected in the 
table appearing at the back of this report, a summary of which 
is included in the following table:

        TOTAL INCLUDING PERMANENT APPROPRIATIONS AND TRUST FUNDS        
                        [In millions of dollars]                        
------------------------------------------------------------------------
                                               Fiscal year--            
                                  --------------------------------------
                                       1996         1997        Change  
------------------------------------------------------------------------
Annual appropriation bill,                                              
 current year....................     $271,620     $294,370     +$22,750
Annual appropriation bill,                                              
 advances........................       40,635       43,900       +3,265
Permanent appropriations.........      606,780      644,392      +37,612
Deduct interfund payments........      -79,931      -79,194         +737
                                  --------------------------------------
      Total......................      839,104      903,468      +64,364
------------------------------------------------------------------------

                         Highlights of the Bill

    In reaching the overall ceiling of $287,931,000,000 in 
budget authority and $291,835,000,000 in outlays, and the 
discretionary ceiling of $65,661,000,000 in budget authority 
and $69,480,000,000 in outlays, for activities under the 
jurisdiction of the Subcommittee on the Departments of Labor, 
Health and Human Services and Labor and Related Agencies, the 
Committee reviewed programs and made clear priority decisions. 
These decisions were made appreciably more difficult due to the 
general lack of reliable data as to the effectiveness of 
programs. Throughout the bill, the Committee has decided to 
restrain the growth or eliminate programs which cannot 
demonstrate their effectiveness. Consistent with the intent of 
the Chief Financial Officer's Act, the Government Performance 
and Results Act, and the Administration's many management 
initiatives, the Committee remains committed to supporting 
those programs that are effective and paring back or 
eliminating those that are not.
    The Committee has provided increases for programs such as 
the Job Corps; block grants such as Preventive Health, Maternal 
and Child Health, Social Services, Community Services and Child 
Care and Development; health prevention activities within the 
Centers for Disease Control and Prevention; Ryan White AIDS 
funding; health research and training within the National 
Institutes of Health; health professions training, and broad 
based support for innovation in education. The maximum Pell 
Grant is increased by $30 to $2,500, the highest in history and 
TRIO is increased by $37 million. Work-study programs are 
increased 10% to $685,000,000.
    The bill also continues the Committee's efforts to support 
reform and budget restraint by terminating the funding for 39 
programs with a total fiscal year 1996 funding of $1 billion.
    Bill Total.--The bill appropriates $285,611 million in 
budget authority for the departments of Labor, Health and Human 
Services and Education and Related Agencies and is within the 
Subcommittee's 602(b) allocation.
    Mandatory programs.--The bill provides $219,949 million for 
entitlement programs in fiscal year 1997. 77% of the funding in 
the bill is for these mandatory costs. Between fiscal year 1996 
and 1997 entitlement spending increased by $19 billion while 
the Committee was reducing discretionary accounts by $4.4 
billion from fiscal year 1995 levels. Funding requirements for 
these activities are determined by the basic authorizing laws. 
Mandatory programs include general fund support for the 
Medicare and Medicaid programs, Aid to Families with Dependent 
Children, Supplemental Security Income, Black Lung payments, 
and the Social Services Block Grant. The following chart 
indicates the funding levels for the major mandatory programs 
in fiscal years 1996 and 1997 and the growth in these programs.

----------------------------------------------------------------------------------------------------------------
                                                                   Fiscal year--                                
                     Program                     ------------------------------------------------     Percent   
                                                       1996            1997           +/-1996                   
----------------------------------------------------------------------------------------------------------------
Department of Labor:                                                                                            
    Black Lung Disability Trust Fund............        $996,606      $1,007,644         $11,038               1
Department of Health and Human Services                                                                         
    Health Care Financing Administration:                                                                       
        Medicaid current law benefits...........      91,140,563      98,141,139       7,000,576               8
        Medicare Payments to Health Care Trust                                                                  
         Funds..................................      63,313,000      60,079,000     (3,234,000)              -5
    Administration for Children and Families:                                                                   
        Aid to Families with Dependent Children.      12,999,000      11,713,000     (1,286,000)             -10
        Child Support Enforcement...............       1,068,000       1,225,000         157,000              15
        Social Service Block Grant..............       2,381,000       2,480,000          99,000               4
Department of Education:                                                                                        
    Federal Family Education Loan Program.......       3,279,000       2,322,000       (957,000)             -29
    Federal Direct Student Loan Program.........         706,000         683,000        (23,000)              -3
    Federal Family Education Loan Liquidating                                                                   
     Account....................................         303,000  ..............       (303,000)             n/a
Related Agencies                                                                                                
    Social Security Administration:                                                                             
        Special Benefits for Disabled Coal                                                                      
         Miners.................................         665,396         630,070        (35,326)              -5
        Supplemental Security Income............      25,605,512      28,682,115       3,076,603              12
----------------------------------------------------------------------------------------------------------------

    Discretionary programs are funded at $65,661 million, an 
overall freeze level of funding.
    Department of Labor.--The bill appropriates $11,344 million 
for the Labor Department, a reduction of $1 million below 
fiscal year 1996 and $1,377 million below the amount requested 
by the President. This funding level includes $3,992 million in 
federal funds to carry out the provisions of the Job Training 
Partnership Act. The Committee recommends an increase in 
funding for the Job Corps of $92 million to support the cost of 
operating new centers. The bill funds summer youth employment, 
youth and adult training, and dislocated worker assistance at 
the same level as last year. Funding of $350 million is 
provided for school-to-work activities funded in the 
Departments of Labor and Education.
    Occupational Safety and Health Administration.--The 
Committee recommends funding for OSHA at $298 million, $43 
million below the request and $6 million below last year's 
level. Within OSHA, compliance assistance is funded at last 
year's level while funding for Federal enforcement is reduced 
by 3% . This shift is consistent with the policy adopted by the 
Committee last year. The bill also includes a prohibition 
against the development or issuance of any proposed or final 
standard or guideline on the subject of ergonomic protection.
    Department of Health and Human Services.--The bill 
appropriates $218,067 million which is $1,396 million below the 
President's request and $17,025 million above the fiscal year 
1996 level. Funding for discretionary programs of $29,836 
million is $1,396 million below the President's request and 
$956 million above last year's level.
    Health Resources and Services Administration.--Funding for 
HRSA programs is $3,080 million, $3 million above last year and 
$33 million below the President's request. Within HRSA, the 
consolidated health centers funding is at $802 million, an 
increase of $44 million, health professions training is funded 
at $292 million, an increase of $34 million, Ryan White AIDS 
Care Act programs are funded at $812 million, $55 million above 
last year and $18 million below the President's request.
    National Institutes of Health.--The Committee proposes 
$12,747 million for biomedical research activities at the 
National Institutes of Health. This funding level represents an 
increase of $371 million over the President's request and $820 
million over last year. This funding level indicates the very 
high priority that the Committee places on the activities of 
NIH. The Committee has maintained its policy of resisting 
disease specific earmarks in the bill, believing that decisions 
as to appropriate levels of funding and appropriate avenues of 
research are best left to the scientists. The bill also commits 
the federal government to the construction of a new clinical 
center at NIH with an initial funding level of $90 million.
    Centers for Disease Control and Prevention.--Overall 
funding for CDC is $2,187 million, $75 million above last year 
and $52 million below the President's request. Increases are 
provided for high priority activities including the preventive 
health block grant, AIDS prevention, chronic and environmental 
disease prevention, polio eradication and breast and cervical 
cancer screening. Infectious disease programs receive a 32% 
increase.
    Substance Abuse and Mental Health Services 
Administration.--The bill provides current year funding for the 
mental health block grant and assures current year funding for 
the substance abuse block grant. Children's mental health 
services is level funded
    Agency for Health Care Policy and Research.--The bill 
provides current year funding for the Agency for Health Care 
Policy and Research.
    Medicare and Medicaid.--The bill provides $102,313 million 
for Medicaid and $60,079 million in federal funds for the 
Government's share of payments to Medicare. Funding of $1,207 
million is provided for Medicare contractor payments. Together 
with funds appropriated in the Health Coverage Availability and 
Affordability Act of 1996 (HR 3103) which appropriates 
approximately $435 million to the medicare contractor's account 
for payment safeguards, total funding will be $1,642 million.
    Low Income Home Energy Assistance.--The Committee 
recommends $900 million for the Low Income Home Energy 
Assistance Program for fiscal year 1997. This level is the same 
as fiscal year 1996 and $100 million below the President's 
request. In combination with previously appropriated emergency 
funds, $1,320 million will be available for LIHEAP in fiscal 
year 1997.
    Child Care and Development Block Grant.--The Committee 
recommends $950 million, an increase of $15 million over fiscal 
year 1996.
    Social Services Block Grant (title XX).--The bill includes 
$2,480 million for title XX, an increase of $99 million over 
fiscal year 1996.
    Head Start.--The bill includes $3,600 million for Head 
Start, $31 million above last year's level.
    Community Services Block Grant.--Consistent with the 
Committee's policy of giving high priority to broad based block 
and state grants, the bill provides $490 million for the 
community services block grant, an increase of $100 million 
over fiscal year 1996.
    Violence Against Women.--The bill provides $61 million for 
programs authorized under the Violence Against Women Act, $8 
million over the 1996 level.
    Funding of abortions.--The bill maintains current law 
permitting the Federal funding of abortion only in the cases of 
rape, incest, or endangerment of the life of the mother.
    Human Embryo Research.--The bill contains language included 
in the fiscal year 1996 bill to prohibit the use of funds to 
create embryos for research purposes and to prohibit use of 
funds for research in which human embryos are destroyed or 
discarded.
    Department of Education.--The bill funds programmatic and 
support activities in the Department of Education at $25,230 
million, $4,062 million below the President's request and 
$1,298 million above last year's level. On a comparable basis, 
discretionary funding for programs in the Department of 
Education are funded at $22,757 million, $53 million below 
fiscal year 1996.
    Education Reform.--The bill terminates funding for Goals 
2000.
    Education for the Disadvantaged.--The bill provides level 
funding for grants to state and local education agencies. The 
bill also continues the practice of advance funding $1,298 
million for this account that was established in fiscal year 
1996.
    Impact Aid.--The Committee provides an increase of 
$35,000,000 for impact aid. Within this overall increment is an 
increase for those districts that contain substantial federal 
property, thus removing it from the local tax rolls.
    School Improvement Programs.--The bill funds title VI 
(Chapter 2) Innovative Education Program Strategies at $606 
million, an increase of $331 million over fiscal 1996. The bill 
also provides no funding for the Eisenhower Professional 
Development program. Title VI, innovative education program 
strategies-state grants, is a program that provides great 
flexibility to states and localities and can, at the discretion 
of the state or locality support activities currently funded 
under Goals 2000, Eisenhower Professional Development and many 
of the small programs terminated in the Committee 
recommendation.
    Safe and Drug Free Schools.--Safe and drug free schools is 
funded at $441 million, the same level as last year and $99 
million below the President's request. National programs are, 
however, terminated.
    Special Education.--The Committee recommends overall 
funding for special education programs of $3,246 million, $.9 
million above last year's level and $307 million below the 
President's request.
    Vocational and Adult Education.--Vocational education state 
grants, adult education state grants and tech prep are all 
funded at the fiscal year 1996 level.
    Student Financial Assistance.--The Committee places a high 
priority on direct assistance to students. The bill includes 
funding to allow the maximum Pell grant to rise to $2,500, an 
increase of $30. In addition, federal supplemental educational 
opportunity grants are funded at last year's level and federal 
work-study grants and TRIO are increased.
    Related Agencies.--Funding for the related agencies title 
of the bill is $31,237 million. This level is $2,945 million 
above last year's funding level and $815 million below the 
President's request.
    Social Security Administrative Costs.--Funding for the cost 
of administering the Social Security programs is $6,309 
million, $445 million over last year and $272 million below the 
President's request.
    National Labor Relations Board.--Funding for the National 
Labor Relations Board is $145 million, $25 million below last 
year's level and $36 million below the President's request. The 
bill also includes language increasing the minimum size of a 
business falling under the jurisdiction of the NLRB. Also 
included is language enacted in the fiscal year 1996 bill 
prohibiting the promulgation of regulations on single site 
bargaining.
    Corporation for Public Broadcasting.--CPB is an advance 
funded account with funds already appropriated through FY '98. 
The bill funds CPB at $250 million in FY '99, the same as the 
FY '98 level and $25 million below the President's request.

                      TITLE I--DEPARTMENT OF LABOR

                 Employment and Training Administration

                    training and employment services

    The Committee recommends $4,171,482,000 for this account 
which provides funding authorized primarily by the Job Training 
Partnership Act. This is an increase of $25,204,000 over the 
fiscal year 1996 level and a reduction of $908,578,000 from the 
budget request.
    Training and Employment Services is comprised of programs 
that enhance the employment and earnings of economically 
disadvantaged and dislocated workers, operated through a 
decentralized system of skill training and related services. As 
required by the Job Training Partnership Act, this 
appropriation is forward-funded on a July to June cycle. Funds 
provided for fiscal year 1997 will support the program from 
July 1, 1997 through June 30, 1998.
    The account is comprised of two activities--Grants to 
States and Federally-administered programs. Grants to States 
give Governors the primary responsibility for the operation of 
training programs in their States. In partnership with the 
private sector and all levels of government, training programs 
attempt to emphasize increasing participant skills and private 
sector placement.
    Separate programs designed to meet the training and 
employment needs of specific population segments experiencing 
unique problems account for the bulk of funds provided for 
Federally-administered programs. These include such programs as 
Indians and Native Americans, migrant and seasonal farmworkers, 
veterans in need of training and employment assistance, the Job 
Corps, and a program to provide improved school-to-work 
transition for youth.

Adult training--Title II-A

    For adult training programs under title II-A of the Act, 
the bill provides $850,000,000. This is the same as the fiscal 
year 1996 level and a reduction of $97,000,000 from the budget 
request. This will provide a program level of about 374,000 
adult participants. This program is designed to prepare adults 
for participation in the labor force by increasing their 
occupational and educational skills, resulting in improved 
long-term employability, increased employment and earnings, and 
reduced welfare dependency. It is operated at the local level 
through service delivery areas designated by the Governors. 
Each area has a private industry council to provide guidance 
and oversight with respect to activities under that area's job 
training plan, in partnership with the unit or units of general 
local government in the areas. The private industry council 
includes representatives of the private sector, educational 
agencies, organized labor, and other groups in the area. All 
funds are allocated to the States by statutory formula.

Youth training--Title II-C

    For youth training programs under title II-C of the Act, 
the bill provides $126,672,000. This is the same as the fiscal 
year 1996 level and the budget request. This will provide a 
program level of about 76,000 youth participants. This program 
is intended to improve the long-term employability of youth, 
enhance their educational, occupational, and citizenship 
skills, and encourage their school completion. Like adult 
training, the program is administered by local service delivery 
areas, as directed by private industry councils. Funds are 
allocated to the States by statutory formula.

Summer youth employment--Title II-B

    The bill includes $625,000,000 for the summer youth 
employment and training program for the summer of 1997. This is 
the same amount appropriated for the summer of 1996. The 
President had requested $871,000,000. This will provide an 
estimated 442,000 summer jobs.
    This program offers work experience, supportive services 
and academic enrichment to economically disadvantaged youth, 
ages 14 to 21. Participants receive the minimum wage. Funds are 
allocated to the States by formula based on relative numbers of 
unemployed and economically disadvantaged individuals.

Dislocated workers--Title III

    The bill provides $1,100,000,000 for dislocated worker 
programs. This is the same as the fiscal year 1996 level and a 
reduction of $193,000,000 from the budget request. An estimated 
556,000 participants are expected to be served by this 
appropriation.
    The title III system provides for early identification of 
dislocated workers, the rapid provision of services to such 
workers, and job training. Among the program's components are 
universal rapid response capabilities, early intervention 
activities, the availability of needs-related payments to 
assist workers in training, and substate delivery systems. 
Funds are allocated to the States by statutory formula; 20 
percent is retained by the Secretary for discretionary 
purposes.
    The Committee is concerned that the Department has not 
taken advantage of cost savings and improved services for job 
search assistance that could be provided by the private 
outplacement sector through the title III program. The 
Committee does not believe that this public program should be 
competing with the private sector and taking business away from 
private companies, particularly when the private sector can 
provide the same services at significantly lower cost and more 
effectively. The Department is strongly urged to undertake 
programs and efforts in partnership with the outplacement 
industry to demonstrate how the private sector can serve the 
needs of those dislocated workers who are not being provided 
outplacement assistance by their employers, and specifically, 
to seriously consider a proposal submitted to the Department 
which would provide the Department and State and local program 
administrators with specific ways in which private outplacement 
firms can be utilized as service providers in the title III 
program. In addition, the Department needs to be able to track 
the amount of funds spent for outplacement and job search 
assistance in this program, including the amount per 
participant, and the placement rates for those workers served.

Job Corps--Title IV-B

     For the Job Corps, the bill provides $1,138,685,000 for 
program year 1997. This is an increase of $44,743,000 over the 
fiscal year 1996 level and a reduction of $14,824,000 from the 
budget request. The amount in the bill includes $1,064,824,000, 
an increase of $92,349,000 over fiscal year 1996, for center 
operations to support 68,000 participants at 119 centers. The 
Committee has provided sufficient funding to maintain the 
program and allow the opening of four new centers that are 
currently in the pipeline. No additional new centers beyond the 
ones in the pipeline were requested by the President or 
recommended by the Committee. The bill also includes 
$73,861,000 for facility construction, rehabilitation, and 
acquisition, a reduction of $14,824,000 below the amount 
requested by the President and a reduction of $47,606,000 below 
the fiscal year 1996 amount. The reduction occurs primarily 
because no further construction funding is required for the new 
centers approved in prior years. This amount is primarily for 
repairs and rehabilitation at existing centers. The Committee 
encourages the Department to relocate centers that are in poor 
physical condition, particularly in those cases where the 
physical plant is a major deterrent to the center's 
performance.
    The Department should begin to examine low-cost options for 
serving more at-risk youth through Job Corps, such as expanding 
slots at existing high-performing centers or constructing 
satellite centers in proximity to existing high-performing 
centers.
    The Committee requests the Department to identify emerging 
occupations that are consistent with Job Corps' population and 
upgrade the vocational offerings at centers in order to create 
career opportunities in new and emerging growth industries. The 
Committee also requests the Department to identify major 
regional and national employers and establish effective working 
relationships that will increase students' career 
opportunities. In order to provide cost-effective services, the 
Department should establish greater linkage opportunities and 
interaction with State workforce development systems.
    The Committee urges the Department to continue to crack 
down on poor-performing Job Corps centers. A significant number 
of centers appears to be at the bottom of the performance 
rankings year after year. While recognizing that the Department 
has taken some steps to address this situation, the Committee 
believes that continued close attention is warranted. If 
changing the center operator and other management actions do 
not solve the problems, then the Department should consider 
closing some of the chronic poor-performers.
    The Committee notes again the concerns expressed by the 
General Accounting Office in its June 1995 report on the 
program. GAO is concerned about a number of issues, among them 
the fact that only a little more than a third of students 
complete their vocational training courses, the validity of job 
placement data is questionable, students are not remaining long 
in their initial jobs after placement, and the effectiveness of 
national vocational training contractors. The Committee will 
continue to follow these concerns closely in the coming year 
and wants the Department to take whatever steps are necessary 
to improve the program.

School-to-Work

    The bill includes $175,000,000 for the school-to-work 
opportunities initiative under the School-to-Work Opportunities 
Act. This is an increase of $5,000,000 over the fiscal year 
1996 appropriation and a reduction of $25,000,000 from the 
budget request. This program is designed to provide a national 
framework within which all States can create statewide systems 
to help youth acquire the knowledge, skills, abilities, and 
labor market information they need to make an effective 
transition from school to work, or to further education or 
training. It is jointly administered by the Departments of 
Labor and Education. A like amount is included for the program 
in the Department of Education. Funds support development 
grants to States to plan school-to-work systems to ease the 
transition from school to work and implementation grants 
provided competitively to States and local consortia to begin 
building such systems. Activities can include recruiting 
employers, obtaining in-depth information on local labor 
markets, designing school-based and work-based curricula, and 
training school-based and work-based staff.

Native Americans

    For Native American programs, the bill provides 
$50,000,000. This is the same as the President's budget request 
and a reduction of $2,502,000 below the fiscal year 1996 level. 
These programs are designed to improve the economic well-being 
of disadvantaged Native Americans through vocational training, 
work experience, and other services aimed at getting 
participants into permanent unsubsidized jobs.
    In a recent program year, only 50% of those who completed 
the program were placed into jobs. A lack of private sector 
jobs on reservations is a major problem for reservation 
training programs. There appears to be a high degree of overlap 
and fragmentation among programs in various Federal agencies 
which serve the Indian population.

Migrant and seasonal farmworkers

    For Migrant and Seasonal Farmworker programs, the bill 
provides $65,000,000. This is the same as the President's 
budget request and a reduction of $4,285,000 below the fiscal 
year 1996 level. This program is aimed at alleviating chronic 
unemployment and underemployment being experienced by 
farmworker families. Training and employability development 
services are supposed to prepare farmworkers for stable, year-
round employment, both in and outside the agricultural 
industry. Supportive services such as health care, day care and 
housing are also provided. Over the 9-year period ending on 
June 30, 1992, of the 440,000 participants in the program, only 
27% had been placed into permanent unsubsidized employment.
    The Department is encouraged to continue the farmworker 
housing program at a level proportionate to the current year.

Veterans' employment

    For veterans' employment, the bill provides $7,300,000. 
This is the same as the budget request and the fiscal year 1996 
level. These funds provide special employment and training 
programs designed to meet the unique needs of disabled, 
Vietnam-era, and recently separated veterans.

Other Federally-administered programs

    For other Federally-administered programs, $33,825,000 is 
provided. This is $17,752,000 under the fiscal year 1996 level 
and $332,754,000 under the budget request. The Committee 
allowance includes funding for research and evaluation 
($6,196,000), labor market information ($5,489,000), the 
National Occupational Information Coordinating Committee 
($2,530,000), pilots and demonstrations ($15,000,000), Women in 
Apprenticeship ($610,000), and the National Skills Standards 
Advisory Board ($4,000,000).
    The Committee has provided full funding for the ongoing 
multiyear evaluation of the Job Corps program. This evaluation 
will proceed as planned and on schedule. A number of serious 
questions have been raised about Job Corps in the recent past, 
and the Committee expects this evaluation will provide answers 
for them.
    The Committee has placed the pilots and demonstrations 
activity on a phaseout path. The Department is expected to 
phase down funding of current principal grantees to allow them 
to make the transition to other sources of funding.
    The Committee has provided no funding for new discretionary 
job training initiatives proposed by the President totaling 
$315,000,000. Most of these funds were requested for an out-of-
school youth demonstration program. While the Committee agrees 
that there are serious problems with this segment of the 
population, it does not believe that this additional funding 
should be provided at this time. The discretionary spending 
ceilings are extremely tight again this year, and we simply 
cannot afford large new initiatives. In addition, the 
authorizing committees are nearing completion of a complete 
rewrite of the job training laws. Any new program initiatives 
should await the new law.

            community service employment for older americans

    The bill includes $373,000,000 for community service 
employment for older Americans. This is the same as the fiscal 
year 1996 level and an increase of $23,000,000 over the 
President's budget request. The Committee notes that this 
program again this year lacks an authorization for 
appropriations. The program, under title V of the Older 
Americans Act, provides part-time employment in community 
service activities for unemployed, low-income persons aged 55 
and over. It is forward-funded from July to June, and the 
fiscal year 1997 appropriation will support the effort from 
July 1, 1997 through June 30, 1998. An estimated 86,000 
participants will be supported by the bill.
    The Committee notes that the authorizing committees are 
moving towards shifting this program entirely to the States. In 
the meantime, the Committee recommends in this bill that 65 
percent of the funds go to national sponsors and 35 percent go 
to the States, rather than the current allocation of 78 percent 
for national sponsors and 22 percent for States.
    As requested by the President, the bill essentially 
transfers this program to the Department of Health and Human 
Services by transferring the appropriation. This action is 
contingent upon enactment of the new authorizing legislation 
that is moving through the Congress.

              federal unemployment benefits and allowances

    The bill includes $324,500,000, the same as the budget 
request and a reduction of $21,600,000 below the fiscal year 
1996 comparable level. The fiscal year 1997 allowance provides 
funding for four activities, all entitlements.
    The first activity, trade adjustment assistance benefits, 
provides for special unemployment benefit payments to workers 
as authorized by the Trade Act of 1974, as amended. For this 
activity the bill includes $191,000,000. This is the same as 
the budget request and an increase of $8,000,000 over the 
fiscal year 1996 level. These funds will permit payment of 
benefits, averaging $215 per week, to 35,200 workers for fiscal 
year 1997. Of these workers, 18,900 will participate in 
training programs, receiving benefits for an average of 28 
weeks. The remaining 16,300 workers receiving benefits will 
receive training waivers and collect benefits for an average of 
21 weeks.
    The second activity, trade adjustment assistance training, 
provides training, job search and job relocation allowances to 
workers adversely affected by imports. The funding for this 
activity is also authorized under the Trade Act of 1974, as 
amended. The bill includes $85,100,000 for this activity. This 
is the same as the budget request and a decrease of $11,500,000 
below the fiscal year 1996 level. These funds will provide 
services for an estimated 23,600 workers.
    The third activity, NAFTA transitional adjustment 
assistance benefits, provides for weekly benefit payments to 
workers affected by imports from Mexico and Canada. These 
payments are also authorized by the Trade Act of 1974, as 
amended as a result of the signing of the North American Free 
Trade Agreement (NAFTA). The bill includes $20,000,000 for this 
activity. This is the same as the budget request and a 
reduction of $14,000,000 below the fiscal year 1996 level. 
These funds will provide 3,700 eligible workers an average of 
24 weeks of benefits each, at an average weekly amount of $224.
    The fourth activity, NAFTA transitional adjustment 
assistance training, provides funds for training, job search 
and job relocation to workers affected by imports from Mexico 
and Canada. The funding for this activity is also authorized by 
the amendment to the Trade Act of 1974 resulting from the 
signing of the NAFTA. The bill includes $28,400,000 for this 
activity. This is the same as the budget request and a 
reduction of $4,100,000 below the fiscal year 1996 level. These 
funds will provide training for an estimated 7,400 workers.

     state unemployment insurance and employment service operations

    The bill includes $3,228,390,000 for this account, a 
reduction of $9,132,000 below the fiscal year 1996 level and 
$333,135,000 below the budget request. Included in the total 
availability is $3,096,111,000 authorized to be drawn from the 
Employment Security Administration Account of the Unemployment 
Trust Fund and $132,279,000 to be provided from the general 
fund of the Treasury. The funds in this account are used to 
provide administrative grants and assistance to State agencies 
which administer Federal and State unemployment compensation 
laws and operate the public employment service. In addition, 
funds are provided for the one-stop career center program.
    For Unemployment Insurance Services, the bill provides 
$2,345,808,000. This total includes a regular contingency 
amount of $260,573,000, which may be drawn from the Employment 
Security Administration Account of the Unemployment Trust Fund. 
In addition, the bill further provides for a second contingency 
amount should the unemployment workload exceed an average 
weekly insured claims volume of 2,828,000. This second 
contingency amount would fund the administrative costs of 
unemployment insurance workload over the level of 2,828,000 
insured unemployed per week at a rate of $28,600,000 per 
100,000 insured unemployed, with a pro-rata amount granted for 
amounts of less than 100,000 insured unemployed. The Committee 
wishes to be promptly notified whenever this latter contingency 
mechanism is utilized.
    The Unemployment Insurance Service recommendation is 
$217,539,000 below the budget request and an increase of 
$38,955,000 over the fiscal year 1996 level. The Committee 
recommendation provides an increase of $40,455,000 over the 
fiscal year 1996 level for funds allocated to States. For 
national activities, the bill includes $8,500,000; this is a 
reduction of $1,500,000 below the fiscal year 1996 level. The 
bill includes $3,500,000 to continue the information technology 
support center.
    For the Employment Service, the bill provides $772,582,000 
which includes $22,279,000 in general funds together with an 
authorization to spend $750,303,000 from the Employment 
Security Administration Account of the Unemployment Trust Fund. 
These amounts are $48,087,000 below the fiscal year 1996 level 
and $75,596,000 below the budget request. Included in the bill 
for the Employment Service is $723,648,000 for State grants, 
available for the program year of July 1, 1997 through June 30, 
1998. This is $58,654,000 below the budget request and 
$38,087,000 below the fiscal year 1996 level. This is a 
reduction of 5% from fiscal year 1996. The effectiveness of the 
Employment Service has been in question for some time. Only 14% 
of ES applicants were placed in jobs in a recent year, only 4% 
received counseling and only 2% were referred to training. In 
addition, the new one-stop career center program should lessen 
the need for Employment Service staff. The Committee has 
reduced ES national activities by $10,000,000 below the fiscal 
year 1996 level. Most of these funds are used for the alien 
labor certification program; the Committee notes that the 
Department's Inspector General recently recommended that this 
program be eliminated because it is not doing what it was 
intended to do.
    The Committee is aware that the House has passed 
legislation to establish a Work Opportunities Tax Credit for 
employers. This was included in H.R. 3448, a bill to provide 
tax relief for small businesses and to raise the minimum wage, 
which passed the House on May 22 and is pending in the Senate. 
The Committee supports this new program and intends to provide 
funding for it at a later time after the legislation is enacted 
into law. The program would be administered by the State 
employment security agencies.
    The Committee has provided $110,000,000 for States to 
establish one-stop career centers to integrate the provision of 
labor market and training services to unemployed workers and to 
employers through collaboration of local service providers. 
This is the same as the fiscal year 1996 appropriation and a 
reduction of $40,000,000 below the budget request. Funds 
provided under the one-stop initiative must supplement, not 
supplant, other Federal, State or local funds committed to such 
centers. One-stop centers should provide access to the broadest 
range of workforce development and social support services 
needed to meet client needs, including, at a minimum, the 
unemployment and employment service programs, dislocated 
workers and other JTPA programs and the local Job Opportunities 
and Basic Skills (JOBS) program.

        advances to the unemployment trust fund and other funds

    The bill includes $373,000,000, the same as the budget 
request and an increase of $4,000,000 over the fiscal year 1996 
comparable level. The appropriation is available to provide 
advances to several accounts for purposes authorized under 
various Federal and State unemployment compensation laws and 
the Black Lung Disability Trust Fund, whenever balances in such 
accounts prove insufficient. The bill anticipates that fiscal 
year 1997 advances will be made to the Black Lung Disability 
Trust Fund.
    The separate appropriations provided by the Committee for 
all other accounts eligible to borrow from this account in 
fiscal year 1997 are expected to be sufficient. Should the need 
arise, due to unanticipated changes in the economic situation, 
laws, or for other legitimate reasons, advances will be made to 
the needy accounts to the extent funds are available. Funds 
advanced to the Black Lung Disability Trust Fund are repayable 
with interest to the general fund of the Treasury.

                         program administration

    The bill includes total funding for this account of 
$121,370,000; this is a reduction of 2 percent below the fiscal 
year 1996 level. This is $4,311,000 below the request and 
$2,477,000 below the fiscal year 1996 level. This includes 
$81,393,000 in general funds and authority to expend 
$39,977,000 from the Employment Security Administration Account 
of the Unemployment Trust Fund. General funds in this account 
provide the Federal staff to administer employment and training 
programs under the Job Training Partnership Act, the Older 
Americans Act, the Trade Act of 1974, and the National 
Apprenticeship Act. Trust funds provide for the Federal 
administration of employment security functions under Title III 
of the Social Security Act and the Immigration and Nationality 
Act.

              Pension and Welfare Benefits Administration

                         salaries and expenses

    The bill provides $65,783,000 for this account, a reduction 
of $19,666,000 from the budget request and a reduction of 
$1,343,000 below the fiscal year 1996 comparable level. This is 
a reduction of 2 percent below the fiscal year 1996 amount.
    The Pension and Welfare Benefits Administration (PWBA) is 
responsible for the enforcement of Title I of the Employee 
Retirement Income Security Act of 1974 (ERISA) in both civil 
and criminal areas. This involves ERISA fiduciary and 
reporting/disclosure requirements. PWBA is also responsible for 
enforcement of sections 8477 and 8478 of the Federal Employees' 
Retirement Security Act of 1986 (FERSA).
    Under current law, many women lose their rights to pensions 
after divorce due, in part, to a need for guidance on qualified 
domestic relations orders. The Committee urges the Department 
of Labor to develop, in consultation with the Department of the 
Treasury, guidance under ERISA and the Internal Revenue Code 
including the development of model forms for a qualified 
domestic relations order. The model forms should focus 
attention on the need to address the payment of benefits upon 
the death of either the participant or the ex-spouse, and the 
forms of benefit payment available under the plan including any 
lump sum payment, qualified joint and survivor annuity, or 
qualified preretirement survivor annuity. In addition, the 
Secretary of Labor should undertake outreach efforts, in 
consultation with the Secretary of the Treasury, to disseminate 
the guidance and forms to practitioners and other interested 
parties at the earliest possible date.

                  Pension Benefit Guaranty Corporation

    The Pension Benefit Guaranty Corporation is a wholly-owned 
government corporation established by the Employee Retirement 
Income Security Act of 1974. The law places it within the 
Department of Labor and makes the Secretary of Labor the 
chairman of its board of directors. The Corporation receives 
its income from insurance premiums collected from covered 
pension plans, collections of employer liabilities imposed by 
the Act, and investment earnings. It is also authorized to 
borrow up to $100 million from the Treasury. The primary 
purpose of the Corporation is to guarantee the payment of 
pension plan benefits to participants if covered plans fail or 
go out of existence.
    The Corporation's proposal for fiscal year 1997 includes 
benefit payments of $945,400,000, multi-employer financial 
assistance of $6,120,000, an administrative expenses limitation 
of $12,043,000, and administrative expenses that are exempt 
from limitation of $128,496,000. Only the administrative 
expenses limitation would be subject to the appropriations 
process under the budget request. The Committee is concerned 
that such a large portion of this agency's administrative costs 
is exempted from the scrutiny of the appropriations process. It 
is not convinced that there is any longer a compelling need to 
do this. Therefore, the Committee recommends that all 
administrative expenses of the PBGC be considered in the 
appropriations process. The bill includes an administrative 
expense limitation of $135,720,000 for fiscal year 1997. This 
is a reduction of $2,770,000 below the fiscal year 1996 amount, 
or 2 percent. It is $4,819,000 below the budget request.

                  Employment Standards Administration

                         salaries and expenses

    The total combined general and trust fund amount for this 
agency is $259,405,000. This is a reduction of $46,508,000 
below the budget request and a reduction of $5,293,000 below 
the fiscal year 1996 comparable level. The bill includes 
$258,422,000 in general funds for this account and also 
contains authority to expend $983,000 from the Special Fund 
established by the Longshore and Harbor Workers' Compensation 
Act. The Committee has reduced this account overall by 2 
percent from the fiscal year 1996 comparable level. In 
addition, an amount of $26,071,000 is available by transfer 
from the Black Lung Disability Trust Fund. This is the same as 
the request and $1,122,000 below the fiscal year 1996 level. 
The President's budget requested a staffing increase of 187 
FTE's, or 5 percent, for fiscal year 1997 which the Committee 
does not recommend. This is not the time to be substantially 
increasing Federal staff.
    The Employment Standards Administration is involved in the 
administration of numerous laws, including the Fair Labor 
Standards Act, the Immigration and Nationality Act, the Migrant 
and Seasonal Agricultural Workers' Protection Act, the Davis-
Bacon Act, the Family and Medical Leave Act, the Federal 
Employees' Compensation Act (FECA), the Longshore and Harbor 
Workers' Compensation Act, and the Federal Mine Safety and 
Health Act (black lung). The agency also administers Executive 
Order 11246 related to affirmative action by Federal 
contractors and the Labor-Management Reporting and Disclosure 
Act.
    The Committee is deeply concerned by the revelations in 
recent months concerning the submission of fraudulent wage data 
by certain parties in the Davis-Bacon Act program. These 
problems were originally brought to light through the diligent 
efforts of the Commissioner of Labor for the State of Oklahoma. 
The General Accounting Office has recently completed a report 
on the Davis-Bacon wage survey process that also addressed 
concerns about fraudulent data as well as other serious 
concerns about the process. The Committee knows that the 
Department's Inspector General is also currently looking at 
this matter and that the Oklahoma fraud allegations have been 
submitted to the Justice Department and are under investigation 
there. This is a very serious matter that must not be 
tolerated. The Department is instructed to do whatever it takes 
to assure the validity of data on which prevailing wage 
determinations are based. The Committee is not convinced that 
just appropriating more money will resolve this problem. 
However, if the Department decides that more resources are 
necessary, the Committee would entertain a reprogramming or 
transfer request at the appropriate time.
    The Committee hears reports from time to time of Wage and 
Hour investigations that appear to border on harassment of the 
employer rather than being a legitimate use of the Department's 
investigative authority. A recent situation on the West Coast 
that resulted in the dismissal of a high-ranking Departmental 
regional official appeared to be only an egregious example of a 
more general pattern of the misuse of the Department's 
authority. The Committee believes that the Wage and Hour 
Division must take the necessary steps to put in place 
procedures to ensure that the time and money spent on an 
investigation are fully justified.

                            special benefits

    The bill includes $213,000,000, the same as the budget 
request and a decrease of $5,000,000 below the fiscal year 1996 
comparable level. This appropriation primarily provides 
benefits under the Federal Employees' Compensation Act (FECA). 
The payments are required by law.
    The total amount to be available in fiscal year 1997, 
including anticipated reimbursements from Federal agencies of 
$1,876,000,000 and carryover funds from the prior year, is 
$2,737,054,000, a decrease of $63,000,000 below the fiscal year 
1996 comparable level.
    The Committee recommends continuation of appropriation 
language that provides authority to use the FECA fund to 
reimburse a new employer for a portion of the salary of a newly 
reemployed injured Federal worker. The FECA funds will be used 
to reimburse new employers during the first three years of 
employment not to exceed 75% of salary in the workers' first 
year, 50% in the second year, and 25% in the third year. Costs 
will be charged to the FECA fund.
    The Committee recommends continuation of appropriation 
language to provide authority to deposit into the Special 
Benefits account those funds that the Postal Service, the 
Tennessee Valley Authority, and other entities are required to 
pay to cover their ``fair share'' of the costs of administering 
the claims filed by their employees under FECA. The Committee 
also recommends approval of appropriation language to provide 
that $11,390,000 of the funds transferred from the ``fair 
share'' agencies to pay the costs of administration will be 
available to the Secretary of Labor to finance capital 
improvements relating to upgrading and enhancing the Federal 
Employees' Compensation program computer system hardware and 
software. The remaining balance of the administrative costs 
paid by the ``fair share'' agencies will revert to Treasury as 
miscellaneous receipts.

                    black lung disability trust fund

    The bill includes authority to obligate $1,008,000,000 from 
the Black Lung Disability Trust Fund in fiscal year 1997. This 
is an increase of $10,638,000 above the fiscal year 1996 
comparable level and the same as the budget request.
    The total amount available for fiscal year 1997 will 
provide $496,665,000 for benefit payments, and $45,979,000 and 
$356,000 for administrative expenses for the Departments of 
Labor and Treasury, respectively. Also included is $465,000,000 
for interest payments on advances from the general fund of the 
Treasury. In fiscal year 1996, comparable obligations for 
benefit payments are estimated to be $505,494,000, while 
administrative expenses for the Departments of Labor and 
Treasury respectively are $47,112,000 and $756,000. Interest 
payments on advances are estimated at $444,000,000 for fiscal 
year 1996.
    The Trust Fund pays all black lung compensation/medical and 
survivor benefit expenses when no responsible mine operator can 
be assigned liability for such benefits, or when coal mine 
employment ceased prior to 1970, as well as all administrative 
costs which are incurred in administering the benefits program 
and operating the Trust Fund. -
    It is estimated that 77,000 people will be receiving black 
lung benefits financed from the Trust Fund by the end of fiscal 
year 1997. This compares with an estimated 81,500 receiving 
benefits in fiscal year 1996.
    The basic financing for the Trust Fund comes from a coal 
excise tax for underground and surface-mined coal. Additional 
funds come from reimbursement payments from mine operators for 
benefit payments made by the Trust Fund before the mine 
operator is found liable, and advances from the general fund, 
estimated at $373,000,000 in fiscal year 1997. The advances to 
the Fund assure availability of necessary funds when 
liabilities may exceed other income. The Omnibus Budget 
Reconciliation Act of 1987 continues the current tax structure 
until 2014.

             Occupational Safety and Health Administration

                         salaries and expenses

    The bill includes $297,734,000 for this agency. This is a 
reduction of $6,076,000, or 2 percent, below the fiscal year 
1996 level and a reduction of $43,117,000 from the budget 
request. The President's budget requested a staffing increase 
of 237 FTE's, or 11 percent, for fiscal year 1997 which the 
Committee does not recommend. This is not the time to be 
substantially increasing Federal staff. This agency is 
responsible for enforcing the Occupational Safety and Health 
Act of 1970 in the Nation's workplaces.
    The Committee has reduced the Federal enforcement activity 
by $3,765,000 below the fiscal year 1996 level; this is a 
reduction of about 3 percent. The Committee has reduced other 
activities in this agency, except for compliance assistance, by 
2 percent below the fiscal year 1996 level. With respect to 
compliance assistance, the Committee has provided $67,301,000, 
the same as the fiscal year 1996 amount. Compliance assistance 
activities include on-site consultation programs by designated 
State agencies for which the bill includes $32,479,000; 
training and education grants; fostering and promoting 
voluntary protection programs that give recognition and 
assistance to employers who establish exemplary occupational 
safety and health programs; and the OSHA training institute. 
The agency should continue to shift its emphasis from ``by-the-
book'' enforcement activities toward cooperative compliance 
assistance. The Committee is encouraged by the progress that 
the current head of the agency is making in this regard and 
urges him to continue and intensify the effort.
    The Committee has included language carried in the bill 
since 1976 in one instance and 1979 in the other that restricts 
the use of funds for certain purposes. First, the bill includes 
language that effectively exempts farms employing 10 or fewer 
people from the provisions of the Act except those farms having 
a temporary labor camp. Second, the bill includes language 
exempting businesses employing 10 or fewer in industry 
classifications having a lost workday injury rate less than the 
national average from general schedule safety inspections.
    In addition, the bill includes language passed by the House 
last year prohibiting the development or issuance of any 
proposed or final standard or guideline on the subject of 
ergonomic protection.

                 Mine Safety and Health Administration

                         salaries and expenses

    The bill includes $191,810,000 for this agency. This is 
$12,372,000 below the budget request and $3,914,000 below the 
fiscal year 1996 level. It is a 2 percent reduction below the 
fiscal year 1996 level. This agency enforces the Federal Mine 
Safety and Health Act in underground and surface coal and metal 
and non-metal mines. The Committee notes that the number of 
coal mines is estimated by the agency to drop by 100, or about 
3 percent, in the coming year.
    The Committee has continued language carried in the bill 
since 1979 prohibiting the use of funds to carry out the 
training provisions of the Act with respect to shell dredging 
or with respect to any sand, gravel, surface stone, surface 
clay, colloidal phosphate or surface limestone mine.

                       Bureau of Labor Statistics

                         salaries and expenses

    The total funding recommended by the Committee for the 
Bureau of Labor Statistics is $355,000,000. This is an increase 
of $11,931,000 over the fiscal year 1996 level and a reduction 
of $17,431,000 below the budget request. The bill includes 
$302,947,000 in general funds for this account and authority to 
spend $52,053,000 from the Employment Security Administration 
Account of the Unemployment Trust Fund. The Bureau of Labor 
Statistics is the principal fact-finding agency in the Federal 
Government in the broad field of labor economics. Its principal 
surveys include the Consumer Price Index and the monthly 
unemployment series.
    The Committee has approved $16,145,000, the full amount 
requested by the Administration, for the Consumer Price Index 
revision. This revision is critical to the Nation's economy and 
to the Federal budget. The Committee directs the Bureau to give 
this matter the very highest priority.

                        Departmental Management

                         salaries and expenses

    The bill includes a combined general and trust fund amount 
for Departmental Management activities of $137,801,000. This is 
$8,736,000 below the budget request and a reduction of 
$4,549,000 below the fiscal year 1996 level. The bill includes 
$137,504,000 in general funds for this account along with 
authority to transfer $297,000 from the Employment Security 
Administration account of the Unemployment Trust Fund. In 
addition, an amount of $19,621,000 is available by transfer 
from the Black Lung Disability Trust Fund. This is the same as 
the budget request and the fiscal year 1996 level.
    The Departmental Management appropriation finances staff 
responsible for formulating and overseeing the implementation 
of Departmental policy and management activities. In addition, 
this appropriation includes a variety of operating programs and 
activities that are not involved in Departmental Management 
functions, but for which other salaries and expenses 
appropriations are not suitable.
    The Committee has reduced the base funding for this account 
by 2 percent below the fiscal year 1996 level. In addition, the 
Committee recommends the continued downsizing of the Bureau of 
International Labor Affairs from $9,900,000 in fiscal year 1996 
to $6,000,000 in fiscal year 1997. This action taken by the 
Committee will allow the Bureau to carry out its statutory 
responsibilities under NAFTA and its activities with respect to 
international child labor and worker rights activities, but 
will eliminate all other activities currently conducted. The 
other activities carried out by the Bureau are primarily 
discretionary in nature and seem to be less than critical in 
times of severe fiscal constraints. These include: 
participating in the U.S. labor attache program in embassies 
abroad, overseas technical assistance projects, participating 
in multilateral and bilateral trade negotiations and on 
international bodies such as the ILO and the OECD and other 
U.N. organizations. It would appear that the State Department 
and the Office of the Trade Representative should handle most 
of these activities.
    The bill includes $2,000,000 for the purpose of evaluating 
the practical application of construction regulations under the 
Occupational Safety and Health Act to residential construction. 
The Committee questions whether these regulations are 
appropriate for residential construction.
    The Committee believes that the Office of the Solicitor may 
have too much staff assigned to work related to the Longshore 
and Harbor Workers' Compensation Act. The Committee requests 
that the Department reexamine this matter and submit a report 
to the Committee by December 31, 1996 explaining the role 
played by the Solicitor under the Longshore Act and how the 
staffing levels under the Act are determined. The Solicitor 
should also ensure that the role of departmental attorneys in 
the black lung program is focused on the defense of claims 
chargeable to the Black Lung Disability Trust Fund.
    The Committee urges the Women's Bureau to continue support 
for technical assistance and training on displaced homemaker 
programming. This assistance is critical as State and local 
agencies develop and implement new models for workforce 
development.
    The Department is instructed to include, as a footnote 
within its audited financial statements, information on 
revenues, both to the Department and to the Federal government, 
resulting from the activities of the Department's Inspector 
General and specifically to identify measurable ``funds put to 
better use'' as additional budgetary resources.
    The Committee supports the ongoing efforts of the 
Department of Justice to rid the International Brotherhood of 
Teamsters of organized crime influence. The Committee agrees 
that up to $3,800,000 of the amounts available to the 
Department of Labor for fiscal year 1997 may be allocated to 
the Department of Justice for the supervision of the Teamsters 
election process, subject to the normal reprogramming 
requirements of the Committee.
    The bill includes a general provision that requires that no 
Departmental funds may be disbursed without the approval of the 
Department's Chief Financial Officer. The purpose of this 
provision is to clarify and ensure that the Chief Financial 
Officer has both the responsibility and authority to oversee 
the finances of the Department to ensure fiscal accountability.
    Each of the departments under the Committee's jurisdiction 
is statutorily required to have audited financial statements 
covering all the department's accounts and activities. Congress 
enacted this requirement in the Government Management Reform 
Act of 1994 after having observed the benefits of the pilot 
program of audited financial statements that had been required 
by the Chief Financial Officers (CFO) Act of 1990. An audited 
financial statement is like a ``scorecard'' that reflects a 
department's progress in achieving the significant financial 
management reforms required by the CFO Act, and in providing 
effective stewardship and management of government funds. 
Accordingly, the Committee expects the Department to work 
vigorously towards obtaining a clean opinion on its financial 
statements. The transfer and reprogramming authority the 
Committee has granted provides substantial flexibility to the 
Department and is particularly valuable during periods of 
increasing fiscal constraints. However, the Committee questions 
the extent to which agencies can properly exercise such 
authority and accurately account for affected funds if they 
have not made substantial progress towards achieving the CFO 
Act's financial management reforms. Accordingly, in subsequent 
years, the Committee will consider the Department's progress in 
making such reforms and in obtaining a clean opinion on its 
financial statements when scrutinizing requests for current 
appropriations and in deciding whether to continue, expand or 
limit transfer and reprogramming authority.

        ASSISTANT SECRETARY FOR VETERANS EMPLOYMENT AND TRAINING

    The bill includes $178,149,000 to be expended from the 
Employment Security Administration Account of the Unemployment 
Trust Fund. This is $721,000 below the budget request and 
$7,759,000 above the fiscal year 1996 level.
    For State grants, the bill provides $81,993,000 for the 
Disabled Veterans Outreach program. This amount is sufficient 
to finance about 1,600 State staff. The bill also provides 
$75,125,000 for the Local Veterans Employment Representative 
program. This amount is sufficient to finance about 1,400 State 
staff.
    For Federal administration, the bill provides $19,031,000, 
a reduction of $388,000 from the fiscal year 1996 level. This 
is a reduction of 2 percent. Included here is $2,300,000 for 
the Transition Assistance Program, which, it is estimated, will 
provide reemployment assistance to approximately 164,000 people 
separating from the military.
    The bill provides $2,000,000 for fiscal year 1997 for the 
National Veterans Training Institute (NVTI), a reduction of 
$672,000 from fiscal year 1996. The President proposed to 
eliminate the Institute. Since its beginning in 1986, this 
training institute has trained some 21,000 people in veterans 
employment issues. Attendees at the Institute are primarily 
State employees who provide employment services to veterans. 
The Committee believes that the Department of Defense and other 
Federal agencies should pay the full cost of training for their 
employees that is provided by the NVTI.

                    OFFICE OF THE INSPECTOR GENERAL

    The bill includes a combined general and trust fund amount 
of $46,481,000. This is $1,606,000 below the budget request and 
$1,560,000 below the fiscal year 1996 comparable level. This 
includes $42,938,000 in general funds for this account along 
with authority to transfer $3,543,000 from the Employment 
Security Administration account of the Unemployment Trust Fund. 
In addition, an amount of $287,000 is available by transfer 
from the Black Lung Disability Trust Fund.
    The Office of the Inspector General was created by law to 
protect the integrity of Departmental programs as well as the 
welfare of beneficiaries served by those programs. Through a 
comprehensive program of audits, investigations, inspections, 
and program evaluations, the OIG attempts to reduce the 
incidence of fraud, waste, abuse, and mismanagement, and to 
promote economy, efficiency, and effectiveness throughout the 
Department.
    The Committee believes that all of the Inspectors General 
need to do a better job of accounting for and tracking the 
savings that they claim to generate by their efforts. More 
attention must be paid to how much money is actually collected 
each year and paid back to the Federal government. The 
Committee directs the Inspector General to report to the 
Committee each quarter on:
          (1) the actual payments, as a result of fines, 
        restitutions or forfeitures, made to the United States 
        Government as a result of his activities; and
          (2) how ``funds put to better use'' were used; this 
        report must identify funds made available for use by 
        management and the programs, projects, and activities 
        that were increased as a result of these funds.
    The Committee would like the Inspector General to examine 
how the Wage and Hour Division selects individual employers for 
investigation, particularly under the Fair Labor Standards Act, 
and also how decisions are made concerning the amount of time 
and resources devoted to an individual investigation. The 
Committee has some concerns in this area and believes that this 
would be a useful thing for the Inspector General to examine. 
The IG should submit a report to the Committee on this before 
next year's appropriations hearings.

           TITLE II--DEPARTMENT OF HEALTH AND HUMAN SERVICES

              Health Resources and Services Administration

                     Health Resources and Services-

    The bill includes $3,080,190,000 for health resources and 
services programs. This is $3,450,000 above the comparable 
amount available for these activities in fiscal year 1996 and 
$33,293,000 below the amount requested in the President's 
budget.-
    The Health Resources and Services Administration (HRSA) 
supports programs which provide health services to 
disadvantaged, medically underserved and special populations; 
improve infant mortality rates; direct the education, supply 
and distribution of a wide range of health professionals; and 
provide technical assistance regarding the utilization of 
health resources and facilities. A large number of the programs 
funded in this account are currently unauthorized, including 
all health professions activities and consolidated health 
centers.

Consolidated health centers-

    The Committee has again provided funds for community health 
centers, migrant health centers, health care for the homeless, 
and public housing health service grants in a consolidated line 
rather than through separate activities. Each of these programs 
is being considered for reauthorization and their structure may 
change. Community health centers are often the grantees for the 
other programs as well, and the Administration has already made 
some efforts to consolidate grant applications and reduce 
duplication. The Committee encourages the agency to take 
whatever additional administrative steps it can to build on 
these consolidation efforts.-
    The Committee provides $802,124,000 for this consolidated 
health centers line, which is $43,992,000 above the 1996 level 
and $45,000,000 above the Administration request for this 
grouping of programs.

Community health centers-

    The community health centers program helps support systems 
that provide access to comprehensive, case-managed primary 
health care services for at-risk populations who live in rural 
and urban medically underserved areas.
    The Committee intends that the funding increases allocated 
to community health centers be used both to provide increases 
in grant levels for existing grantees and to provide funding to 
new health centers to establish services in unserved 
communities.-
    The Committee is aware of efforts by local physicians 
organizations to support the needs of community health centers. 
The Committee encourages HRSA to support efforts by local 
physicians organizations to contribute to improving the quality 
of medical care provided at community health centers.-
    Based on the past success of HRSA demonstration projects 
linking community health centers and substance abuse treatment 
centers, the Committee encourages HRSA to enhance grants to 
health centers that coordinate primary care with substance 
abuse treatment centers.

Migrant health centers-

    The program helps provide culturally sensitive 
comprehensive primary health care services to migrant and 
seasonal farmworkers and their families. Over 80 percent of the 
centers also receive funds from the community health centers 
program.

Health care for the homeless-

    The program provides project grants for the delivery of 
primary health care services, substance abuse services, and 
mental health services to homeless adults and children. About 
half of the projects are administered by community health 
centers. The other half are administered by non-profit 
coalitions, inner city hospitals, and local public health 
departments.

Public housing health service grants-

    The program awards grants to community-based organizations 
to provide case-managed ambulatory primary health and social 
services in clinics at or in close proximity to public housing. 
More than 60 percent of the programs are operated by community 
health centers.

National Health Service Corps: Field placements-

    The Committee provides $37,244,000 for field placement 
activities, which is the same as the 1996 level. The 
Administration requested funding in a consolidated workforce 
development cluster. These funds are used to support the 
activities of National Health Service Corps obligors and 
volunteers in the field, including travel and transportation 
costs of assignees, training and education, recruitment of 
volunteers, and retention activities. Salary costs of most new 
assignees are paid by the employing entity.

National Health Service Corps: Recruitment-

    The Committee provides $78,189,000 for recruitment 
activities, which is $3,000,000 above the 1996 level. The 
Administration requested funding in a consolidated workforce 
development cluster. The program awards scholarships to health 
professions students and assists graduates in repaying their 
student loans. In return for every year of support, these 
students are obligated to provide a year of service in health 
professional shortage areas usually located in inner cities or 
rural areas, with a two-year minimum obligation. The Committee 
reiterates its intent that funds provided be used to support 
multi-year, rather than single-year, commitments.
    The Committee is pleased with the progress made through the 
oral health initiative in supporting the provision of dental 
care at 10 centers with significant oral health needs. The 
Committee encourages HRSA to expand this initiative so that 
greater progress can be made in addressing oral diseases. The 
Committee also encourages the NHSC to consider increasing the 
number of dental participants in its scholarship and loan 
repayment programs.

Health professions-

    The Committee provides $292,450,000 for all health 
professions training programs, which is $33,875,000 above the 
1996 level. The Administration requested funding in 
consolidated program clusters including the National Health 
Service Corps. For the most part, each health professions 
training program is provided a proportionate share of the 
increase based on its share of total 1996 funding. --
    Laboratory tests are increasingly available for the 
presence of genetic markers for serious diseases, including 
breast cancer, prostate cancer and Alzheimer's disease. The 
social, legal, psychological, and ethical implications of such 
tests are profound. Individuals must have the opportunity to 
work with professionals trained to provide genetic counseling 
to ensure maximum benefit from the new genetic information. 
Yet, very few health and allied health professionals have such 
training and certified genetic counselors are only numbered at 
1,200. Therefore, the Committee strongly urges HRSA to work 
with the National Center for Human Genome Research and the 
appropriate health and allied health professions to develop a 
plan to incorporate genetic counseling and genetic information 
in health professions training. The Committee requests that 
HRSA be prepared to report on such plans at its fiscal year 
1998 appropriation hearings.
    The Committee encourages collaboration between the 
Substance Abuse and Mental Health Administration and HRSA to 
fund interdisciplinary health professions training projects, 
including training of mental health professionals, for practice 
in managed care settings and other primary care health 
settings. The Committee encourages HRSA to develop technical 
assistance for use in health professions training to assess 
interdisciplinary models of practice that integrate health 
care, mental health and addictions services in primary care.

Grants to communities for scholarships

    The Committee provides $532,000 for grants to communities 
for scholarships, which is $58,000 above the 1996 level. The 
Administration requested funding in a consolidated program 
cluster. The program provides grants to States to provide 
financing for community organizations located in health 
professions shortage areas to make scholarship awards to health 
professions students in exchange for a service obligation in 
the community. Sixty percent of the costs of scholarships are 
paid by the State and sponsoring community organization.

Health professions data systems

    The Committee provides $238,000 for the health professions 
data systems, which is $26,000 above the 1996 level. The 
Administration requested funding in a consolidated program 
cluster. This program supports the collection and analysis of 
data on the labor supply in various health professions and on 
future workforce configurations.

Nurse loan repayment for shortage area service

    The Committee provides $2,197,000 for nurse loan repayment 
for shortage area service, which is $235,000 above the 1996 
level. The Administration requested funding in a consolidated 
program cluster. This program offers student loan repayment to 
nurses in exchange for an agreement to serve not less than two 
years in an Indian Health Service health center, Native 
Hawaiian health center, public hospital, community or migrant 
health center, or rural health clinic.

Centers of excellence

    The Committee provides $24,718,000 for centers of 
excellence, which is $2,646,000 above the 1996 level. The 
Administration requested funding in a consolidated program 
cluster. The program is designed to strengthen the national 
capacity to educate minority students in the health professions 
by offering special support to those institutions which train a 
significant number of minority health professionals, including 
Hispanics and Native Americans. Funds are used for the 
recruitment and retention of students and faculty, information 
resources and curricula, faculty and student research, and the 
development of plans to achieve institutional improvements.
    The Committee is concerned that the focus of the Centers of 
Excellence program may be diluted by the proliferation of 
grants to institutions which have only a short history and 
track record of support of minority students. The Committee 
encourages HRSA to intensify the focus of this program on 
providing support to historically minority health professions 
institutions in a manner consistent with the authorizing 
statute.

Health careers opportunity program

    The Committee provides $26,785,000 for the health careers 
opportunity program, which is $2,867,000 above the 1996 level. 
The Administration requested funding in a consolidated program 
cluster. This program provides funds to medical and other 
health professions schools for recruitment of disadvantaged 
students and pre-professional school preparation.

Exceptional financial need scholarships

    The Committee provides $11,333,000 for exceptional 
financial need scholarships, which is $1,213,000 above the 1996 
level. The Administration requested funding in a consolidated 
program cluster. This program provides scholarship aid to 
exceptionally needy students enrolled in medicine, osteopathic 
medicine, or dentistry who agree to practice primary care for 
five years after completing training.

Faculty loan repayment

    The Committee provides $1,061,000 for faculty loan 
repayment, which is $114,000 above the 1996 level. The 
Administration requested funding in a consolidated program 
cluster. The loan repayment for faculty services program 
provides for the repayment of educational loans for individuals 
from disadvantaged backgrounds who are health professions 
students or graduates, and who have agreed to serve for at 
least two years as a faculty member of a health professions 
school. The school matches the Federal contribution toward loan 
repayment. The program also supports fellowships for minority 
faculty members.

Financial assistance for disadvantaged health professions students

    The Committee provides $6,718,000 for financial assistance 
for disadvantaged health professions, which is $719,000 above 
the 1996 level. The Administration requested funding in a 
consolidated program cluster. This program provides financial 
assistance to disadvantaged students at medical, osteopathic or 
dental schools who agree to practice primary health care for 
five years after completing training.

Scholarships for disadvantaged students

    The Committee provides $18,676,000 for scholarships for 
disadvantaged students, which is $1,999,000 above the 1996 
level. The Administration requested funding in a consolidated 
program cluster. The scholarship program provides grants to 
selected health professions schools to provide scholarships to 
individuals from disadvantaged backgrounds. By statute, 30 
percent of the funds must go to schools of nursing. Up to 25 
percent of a school's grant may be used to provide financial 
assistance to undergraduates. The Committee continues to intend 
that all health professions disciplines made eligible by 
statute be able to participate in the scholarships program.

Family medicine training and departments

    The Committee provides $49,277,000 for family medicine 
training and departments, which is $5,275,000 above the 1996 
level. The Administration requested funding in a consolidated 
program cluster. This program has four components: (1) grants 
to medical schools to promote the predoctoral training of 
medical students; (2) grants to support family medicine 
residency programs and their trainees; (3) grants to programs 
that train physicians who plan to teach in family medicine 
programs; and (4) grants to assist medical schools in 
establishing or improving family medicine academic 
administrative units.

General internal medicine and pediatrics

    The Committee provides $17,628,000 for general internal 
medicine and pediatrics, which is $1,887,000 above the 1996 
level. The Administration requested funding in a consolidated 
program cluster. The program is comprised of three different 
activities: (1) grants to medical schools and hospitals to plan 
and operate residency programs and to provide financial 
assistance for residents; (2) grants to institutions to meet 
the costs of training programs for physicians who plan to teach 
in general internal medicine and pediatrics, as well as to 
support the faculty trainees; and (3) grants to develop 
programs to support predoctoral activities, including 
ambulatory care experiences, curriculum development and student 
assistantships.

Physician assistants

    The Committee provides $6,380,000 for physician assistants, 
which is $683,000 above the 1996 level. The Administration 
requested funding in a consolidated program cluster. The 
program provides grants for the training of physician 
assistants and for the training of faculty who will teach in 
physician assistants programs. By law, no more than 10 percent 
of the funding may be used for faculty development.

Public health and preventive medicine

    The Committee provides $8,005,000 for public health and 
preventive medicine, which is $857,000 above the 1996 level. 
The Administration requested funding in a consolidated program 
cluster. The program is comprised of three elements: public 
health special projects, public health traineeships and 
preventive medicine residencies. Public health special projects 
provide grants to schools of public health for developing 
projects in the areas of preventive medicine, health promotion 
and disease prevention, improving access to and the quality of 
health services in medically underserved communities, and 
reducing the incidence of domestic violence. Public health 
traineeship grants provide graduate training to individuals in 
the fields of epidemiology, environmental health, 
biostatistics, toxicology, and public health nutrition. 
Preventive medicine residency grants assist schools in 
developing new residency training programs or improving 
existing programs and in providing financial assistance to 
residency trainees.

Health administration traineeships and special projects

    The Committee provides $1,095,000 for health administration 
traineeships and special projects, which is $117,000 above the 
1996 level. The Administration requested funding in a 
consolidated program cluster. This program provides grants to 
graduate degree programs in health administration, hospital 
administration and health policy analysis for traineeships for 
students and for special projects to prepare students for 
employment with public or nonprofit private agencies.

Area health education centers-

    The Committee provides $28,495,000 for area health 
education centers, which is $5,372,000 above the 1996 level. 
The Administration requested funding in a consolidated program 
cluster. The area health education centers (AHEC) program links 
university health science centers with community health service 
delivery systems to provide training sites for students, 
faculty and practitioners. The program supports three types of 
projects: core grants to plan and implement programs; special 
initiative funding for schools that have previously received 
AHEC grants; and model programs to extend AHEC grants with 50 
percent Federal funding.-
    Because of the promising biomedical advances made in 
chronic fatigue and immune dysfunction syndrome (CFIDS) 
research, there is a need for clinical care education programs 
for physicians and other health care professionals. The 
Committee encourages HRSA to conduct an inventory of CFIDS-
related resources for its area health education centers and to 
design an appropriate training curriculum.

Border health training centers-

    The Committee provides $3,752,000 for border health 
training centers, which is $402,000 above the 1996 level. The 
Administration requested funding in a consolidated program 
cluster. The program funds schools of medicine and osteopathy 
to support health education and training centers to improve the 
supply, distribution and quality of health personnel along the 
border between the United States and Mexico and in other urban 
and rural areas with populations with serious unmet health care 
needs.

General dentistry residencies-

    The Committee provides $3,786,000 for general dentistry 
residencies, which is $405,000 above the 1996 level. The 
Administration requested funding in a consolidated program 
cluster. The program provides grants to dental schools to 
support residency programs and provide financial assistance to 
their students. In the primary care residency program, dentists 
learn to provide a broad range of services for patients 
requiring complex care, such as the developmentally disabled, 
high risk medical patients and those with infectious diseases. 
All grantees include community-based rotations, where residents 
provide oral health care to underserved populations and 
communities. Graduates of these programs have greater clinical 
expertise and consequently refer fewer patients to specialists.

Allied health special projects-

    The Committee provides $3,834,000 for allied health special 
projects, which is $410,000 above the 1996 level. The 
Administration requested funding in a consolidated program 
cluster. The program provides funding for allied health 
professions schools for establishing community-based programs, 
expanding enrollment, developing curricula in areas such as 
geriatrics, and establishing interdisciplinary training. The 
Committee continues to encourage HRSA to give priority 
consideration to projects for schools training allied health 
professionals experiencing shortages, such as medical 
technologists and cytotechnologists.

Geriatric education centers and training-

    The Committee provides $8,884,000 for geriatric education 
centers and training, which is $951,000 above the 1996 level. 
The Administration requested funding in a consolidated program 
cluster. The program supports grants to health professions 
schools to establish geriatric education centers to provide 
training for faculty who teach geriatrics and health care 
professionals who provide treatment. It also provides grants to 
medical schools and hospitals for geriatric training 
fellowships for physicians and dentists who plan to teach 
geriatrics.

Rural interdisciplinary traineeships-

    The Committee provides $4,154,000 for rural 
interdisciplinary traineeships, which is $445,000 above the 
1996 level. The Administration requested funding in a 
consolidated program cluster. The program provides grants to 
health departments, academic institutions, and health 
professions schools to train practitioners to provide services 
in rural areas, to demonstrate models to improve access to 
health care, to deliver health care services to rural 
residents, and to increase the recruitment and retention of 
health professionals in rural areas.

Podiatric medicine-

    The Committee provides $678,000 for podiatric medicine, 
which is $73,000 above the 1996 level. The Administration 
requested funding in a consolidated program cluster. The 
program supports grants to hospitals and schools of podiatric 
medicine for primary care residency programs that provide 
traineeships to residents.

Chiropractic demonstration grants-

    The Committee provides $1,026,000 for chiropractic 
demonstration grants, which is $110,000 above the 1996 level. 
The Administration requested funding in a consolidated program 
cluster. The program provides grants to colleges and 
universities of chiropractic to carry out demonstration 
projects in which chiropractors and physicians collaborate to 
identify and provide effective treatment of spinal and lower 
back conditions.

Nurse training programs

    The Committee requests that HRSA continue funding all 
advanced practice nurses, including nurse practitioners, nurse-
midwives, clinical nurse specialists, and nurse anesthetists 
consistent with past funding levels. This will allow for a 
continued supply of all advanced practice nurses, especially in 
underserved areas, which meets the health care needs of the 
nation. The Committee recognizes that the trend toward 
community-based health care, an aging population, more people 
living with chronic conditions, and a sicker hospital 
population, all indicate the importance of increasing the 
number of professional nurses, particularly those in advanced 
practice.
    The underrepresentation of African Americans in the nursing 
fields, from nursing faculty, to registered nursing, to 
advanced nurse practitioners, to those receiving baccalaureate, 
masters and doctoral degrees, continues. The Committee 
encourages HRSA to take the steps necessary to increase the 
representation of African Americans in these areas of nursing, 
and requests an update on this effort in the 1998 
appropriations hearings.

Advanced nurse education-

    The Committee provides $12,469,000 for advanced nurse 
education, which is $1,335,000 above the 1996 level. The 
Administration requested funding in a consolidated program 
cluster. The program provides institutional support to nursing 
schools to plan and operate or significantly expand masters or 
doctoral level programs for nurse educators, public health 
nurses, or other clinical nurse specialties.

Nurse practitioners/nurse midwives

    The Committee provides $17,588,000 for nurse practitioners/
nurse midwives, which is $2,128,000 above the 1996 level. The 
Administration requested funding in a consolidated program 
cluster. The program provides grants to public or nonprofit 
hospitals and schools of nursing, public health, and medicine 
to develop or significantly expand programs to train nurse 
practitioners and nurse midwives to provide primary health 
care.

Special projects

    The Committee provides $10,567,000 for special projects, 
which is $1,131,000 above the 1996 level. The Administration 
requested funding in a consolidated program cluster. This 
program provides grants to nursing schools and public and 
nonprofit private entities to expand enrollment in nursing 
programs; to provide nursing practice arrangements in non-
institutional settings; to support continuing education for 
nurses in medically underserved communities; to provide 
fellowships to individuals who are employed in long-term care 
as paraprofessionals; and to demonstrate innovative nursing 
practices.

Nurse disadvantaged assistance

    The Committee provides $3,867,000 for nurse disadvantaged 
assistance, which is $414,000 above the 1996 level. The 
Administration requested funding in a consolidated program 
cluster. The program provides grants to nursing schools and 
other entities to recruit individuals from disadvantaged 
backgrounds, to provide counseling and preliminary education 
for them, to support stipends and to train school faculty.

Professional nurse traineeships

    The Committee provides $15,942,000 for professional nurse 
traineeships, which is $1,707,000 above the 1996 level. The 
Administration requested funding in a consolidated program 
cluster. The nurse traineeships program provides individual 
support to nurses receiving masters and doctoral degrees as 
nurse practitioners, midwives, educators, public health nurses, 
and other clinical nursing specialties.

Nurse anesthetists

    The Committee provides $2,765,000 for nurse anesthetists, 
which is $296,000 above the 1996 level. The Administration 
requested funding in a consolidated program cluster. This 
program funds grants to public or private nonprofit 
institutions to support the costs of traineeships for licensed 
registered nurses to become nurse anesthetists. The program 
also funds grants to institutions to develop or expand programs 
to train nurse anesthetists. In addition, the program supports 
faculty fellowships to permit instructors to obtain relevant 
advanced education.

Hansen's disease services

    The bill includes $17,094,000 to support the operation of 
the Gillis W. Long Hansen's Disease Center in Carville, 
Louisiana, research in Baton Rouge, Louisiana, and the regional 
ambulatory care program for Hansen's disease patients. This is 
$723,000 above the amount requested in the budget and the same 
as the amount provided in fiscal year 1996. The Gillis W. Long 
Center operates as a research and treatment center for persons 
with Hansen's disease (leprosy). The Federal government is 
required to provide care for anyone presenting themselves at 
the facility for care of Hansen's disease. In 1997, the 
facility is expected to have an average inpatient census of 115 
patients. The regional ambulatory care program provides 
secondary and tertiary care in support of direct care at the 
Center and regionalized care of patients on an outpatient 
basis. It is expected to serve 3,000 patients in 11 locations.
    The Committee has included bill language enabling the 
transfer of the Carville facility to the state of Louisiana. 
The transfer and the shift of residents would take place over a 
three-year period. Patients who desired could accept a lifelong 
stipend to live privately in the community; those who wished 
could remain with other patients in a long-term care facility 
in the Baton Rouge area. The Secretary could designate a 
limited number of patients whom it would be impractical to move 
who could continue to reside at Carville. The facility would be 
used for health and education purposes consistent with the 
mission of the Department of Health and Human Services. The 
Department would have authority to approve any change in the 
designated uses of the Carville facility for a period of thirty 
years.

Maternal and child health block grant

    The bill includes $681,061,000 for the Maternal and Child 
Health (MCH) Block Grant. This is $2,857,000 above the amount 
appropriated in fiscal year 1996 and the same as the amount 
requested by the Administration. The block grant provides funds 
to States to meet a broad range of enhanced and wraparound 
health services, including personal health services; general, 
population-wide health services, such as screening; family 
support services; and integrated systems of care. About 16 
million women, infants, children, adolescents and children with 
special health care needs will be served in 1997. The 
authorizing statute provides that, up to a funding level of 
$600,000,000, 85 percent of the funds are distributed to the 
States, with 15 percent of the funds set aside by the Secretary 
for special projects of regional and national significance 
(SPRANS). When the appropriation exceeds $600,000,000, 12.75 
percent of the amount over $600,000,000 is directed to the 
Community Integrated Service Systems set-aside program. The 
remaining 87.25 percent is distributed by the same 85/15 
percent allocation as in the basic block grant formula.
    The Committee is concerned that almost half of the States 
have fluoridation rates below 60%. Fluoridation is one of the 
most cost-effective public health measures that our nation can 
undertake. Currently, it costs between 20 and 50 cents per 
person per year to provide fluoridation. By comparison, the 
National Institute of Dental Research estimates that preventive 
dentistry, including fluoridation, has saved Americans nearly 
$100 billion in potential dental care expenses during the 1979-
1989 period. The Committee requests the MCH Bureau to develop 
an implementation plan for increased fluoridation and urges it 
to allocate SPRANS funds to assist those states with 
fluoridation levels below 25 percent.
    The hemophilia treatment centers program serves as a model 
in the management of chronic diseases, demonstrating remarkable 
cost-effective health outcomes, including substantially reduced 
hospitalization. The Committee expects HRSA to work 
collaboratively with CDC to ensure that the treatment centers 
network is utilized in data collection, surveillance, and 
patient notification and outreach related to blood and blood 
products usage.
    The Committee has been pleased with the MCH Bureau's work 
in responding to the joint effort with the NIH National 
Institute of Child Health and Human Development in the ``Back 
to Sleep Campaign'' for sudden infant death syndrome, and by 
the effort to understand the need for SIDS services through its 
nationwide survey of sudden infant death services. The 
Committee encourages the MCH Bureau to consider establishing a 
SIDS program support center.
    The Committee continues to support the demonstration 
projects for disabled children such as the CHOICES program 
funded through SPRANS set-aside funding.

Healthy Start

    The bill does not include funding for the Healthy Start 
infant mortality initiative, which is $92,816,000 below the 
1996 level and $74,838,000 below the Administration request. 
Healthy Start was intended to be a five-year demonstration 
program to reduce infant mortality in 22 urban and rural 
communities. The President's budget at the time described 
Healthy Start as a ``highly focused effort to dramatically 
reduce the infant mortality rate by 50 percent within five 
years.'' It never was authorized as a separate program and 
operates under section 301 of the Public Health Service Act 
demonstration authority. The demonstration has received $460 
million since 1991, with its fifth year of funding completed in 
fiscal year 1996. It was intended to test new ideas that could 
then be disseminated to other parts of the country and 
supported by State and local governments; it was not intended 
to support on-going services on a permanent basis. To the 
extent that the demonstration has identified useful approaches 
to reduce infant mortality, they can now be replicated with MCH 
block grant or social services block grant funding. The 
Committee encourages HRSA to begin to develop a strategic plan 
that would permit the nation to capitalize on the lessons 
learned from this project, and to report to the Committee on 
the status of the effort during next year's hearings.

Organ transplantation

    The Committee includes $2,400,000 for organ transplantation 
activities in 1997, which is $331,000 above the 1996 
appropriation and $104,000 above the Administration request. 
The program supports a scientific registry of organ transplant 
recipients; the National Organ Procurement and Transplantation 
Network, which matches organ donors with potential recipients; 
and grants and contracts with public and private non-profit 
organizations to promote and improve organ donations. The 
Committee notes that the contractor for the network and the 
registry receives almost $11 million in patient registration 
fees that are financed by Medicare and third party payers. The 
Committee requests HRSA to submit a plan to the Committee prior 
to the 1998 appropriations hearings identifying how the organ 
transplantation program can move toward financial self-
sufficiency within a five-year timeframe.

Health teaching facilities interest subsidies

    The Committee provides $297,000 for facilities interest 
subsidies, which is the same as the Administration request and 
$114,000 below the 1996 appropriation. This program continues 
support of interest subsidies and loan guarantees for three 
loans for construction of health professions teaching 
facilities under a now discontinued Public Health Service Act 
authority. The remaining Federal commitment on these loans will 
expire in the year 2004.

Bone marrow program

    The Committee provides $15,272,000 for the bone marrow 
program, which is $60,000 below the Administration request and 
the same as the 1996 appropriation. In addition to funding from 
HRSA, in 1997, the National Marrow Donor Program is expected to 
receive more than $23 million from the U.S. Navy and almost $44 
million from other sources. Funds are used for donor medical 
costs, donor centers, tissue typing, research, minority 
recruitment, and program administration. The registry is run by 
contract.
    The Committee is pleased that the National Bone Marrow 
Registry is increasingly meeting the needs of a significant 
proportion of those in need of allogenic bone marrow 
transplants. In addition, the bone marrow program is continuing 
to increase the size and diversity of the registry of potential 
donors. Continued progress is critical to improving the chances 
of finding a matched marrow donor for patients of all races and 
ethnic heritage.

Rural outreach grants

    The bill includes $4,000,000 for rural outreach grants, 
which is $23,797,000 below the 1996 appropriation and 
$26,254,000 below the Administration request. The funds 
provided will support the continuation costs of grants funded 
in 1996 and earlier years. The program supports projects that 
provide health services to rural populations not currently 
receiving them and that enhance access to existing services. 
The program has been funded as a demonstration with no specific 
authorization since 1991, with total funding of $146 million 
over that time. States could choose to use funding from the 
large health and social services block grants supported in the 
bill to initiate new demonstration grants.

Emergency medical services for children

    The Committee has provided $12,500,000 for emergency 
medical services for children, which is $1,745,000 above the 
1996 level. The Administration proposed consolidating this 
activity into an emergency medical services cluster. The 
program supports demonstration grants for the delivery of 
emergency medical services to acutely ill and seriously injured 
children.

Black lung clinics

    The bill provides $1,900,000 for black lung clinics, which 
is $1,911,000 below the 1996 appropriation. The Administration 
requested this funding in a consolidated cluster with funding 
reduced below 1996 levels. This program supports 14 grantees 
which treat a declining population of coal miners with 
respiratory and pulmonary impairments. The clinics presently 
receive more than one-third of their funding from other 
sources, such as Medicaid and Medicare. Of the 14 grantees, 
three actually receive community health center funding as well 
as black lung grants.

Alzheimer's demonstration grants

    The Committee provides $6,000,000 for Alzheimer's 
demonstration grants, which is $2,020,000 above the 1996 
appropriation. The Administration requested this funding in a 
consolidated cluster with funding reduced below 1996 levels. 
The program provides grants to States to help them plan and 
establish programs to provide health care services to 
individuals with Alzheimer's disease. Funds are used for 
respite care and supportive services, clearinghouses, training, 
and administrative costs for State offices. By law, States are 
required to match the Federal funding--45 percent of the cost 
of the program by the third year of the grant.
    The Committee is pleased to learn that this program is 
proving to be an effective catalyst by encouraging an estimated 
225 State and local agencies to coordinate and strengthen 
community services for Alzheimer's patients and their families. 
Projects have provided outreach to an estimated 4.5 million 
persons, particularly those living in hard-to-reach rural and 
inner city communities. The Committee provides a significant 
increase for the program and encourages HRSA to focus a portion 
of this effort on testing methods for improving health care 
delivery to Alzheimer patients by linking projects with other 
publicly-supported health systems such as community and migrant 
health centers program.

Payment to Hawaii, treatment of Hansen's Disease

    The bill includes $2,045,000 for the treatment of persons 
with Hansen's Disease in the State of Hawaii, which is the same 
as the 1996 appropriation. The Administration requested this 
funding in a consolidated cluster with funding reduced below 
1996 levels. This program, which provides a partial matching 
payment to the State of Hawaii, dates to the period of Father 
Damien's facility for sufferers of Hansen's disease (leprosy). 
That facility now has only 67 residents who live there by 
choice, and the grounds have been converted to a historical 
site. Most patients diagnosed with Hansen's disease in Hawaii 
are now treated in the same manner as new patients on the 
mainland; their care can be supported through insurance or 
Medicaid if they are income-eligible and is handled on an out-
patient basis. The Committee urges HRSA to develop a plan to 
grant a stipend option for the residential patients to 
encourage them to transition out of the facility.

Pacific Basin initiative

    The Committee does not provide funding for the Pacific 
Basin initiative in 1996, which is $1,200,000 below the 1996 
level. The Administration requested this funding in a 
consolidated cluster with funding reduced below 1996 levels. 
1996 funding for the program was provided only for the 
continuation costs of health professions training grants. No 
further continuation costs are projected for 1997. $16 million 
has been provided for this program since 1989. Pacific Basin 
residents can continue to participate in the regular health 
professions training programs funded by HRSA.

Ryan White AIDS Programs

    The bill includes $812,252,000 Ryan White AIDS programs. 
This is $18,437,000 below the amount requested in the 
President's budget and $54,850,000 above the 1996 
appropriation.

Emergency assistance

    The bill includes $401,700,000 for the Title I emergency 
assistance program, which is $22,243,000 below the 
Administration request and $10,000,000 above the 1996 
appropriation. These funds provide grants to metropolitan areas 
with very high numbers of AIDS cases for outpatient and 
ambulatory health and social support services. Half of the 
amount appropriated is allocated by formula and half is 
allocated to eligible areas demonstrating additional need 
through a competitive grant process. No new areas are expected 
to be eligible for funding under Title I in 1997.

Comprehensive care programs

    The Committee provides $290,847,000 for Title II, 
comprehensive care programs, which is $5,893,000 above the 
Administration request and $30,000,000 above the 1996 
appropriation. The funds provided support formula grants to 
States for the operation of HIV service delivery consortia in 
the localities most heavily affected, for the provision of home 
and community-based care, for continuation of health insurance 
coverage for infected persons, and for purchase of therapeutic 
drugs.
    The Committee is aware of the great promise of protease 
inhibitor drugs in the treatment of AIDS, whose purchase is 
principally financed under Title II, and has included bill 
language identifying $75,000,000 specifically for the purchase 
of AIDS drugs. The 1996 bill designated $52,000,000 for this 
purpose. The Committee hopes that, prior to completing action 
on a conference agreement on this bill, the Administration will 
have completed a consensus conference on revised standards of 
care for HIV disease. It is also the Committee's understanding 
that the Secretary of HHS is considering submitting a 
supplemental budget request to address the potential shortfall 
in the drug assistance program for 1997 prior to Congress 
completing action on this bill.

Early intervention program

    The Committee provides $61,918,000 for Title III-B, the 
early intervention program, which is $5,000,000 above the 1996 
appropriation and $2,650,000 below the Administration request. 
Funds are used for discretionary grants to migrant and 
community health centers, health care for the homeless 
grantees, family planning grantees, hemophilia centers and 
other private non-profit entities that provide comprehensive 
primary care services to populations with or at risk for HIV 
disease. The grantees provide testing, risk reduction 
counseling, transmission prevention, and clinical care; case 
management, outreach, and eligibility assistance are optional 
services. Approximately 125,000 HIV positive persons or persons 
at high risk for HIV infection are expected to be served in 
1996.

Pediatric demonstrations

    The bill includes $34,000,000 for the pediatric AIDS 
demonstrations authorized under Title IV of the Ryan White 
C.A.R.E. Act. This is the same as the Administration request 
and $5,000,000 above the 1996 level. The program supports 
demonstration grants to foster collaboration between clinical 
research institutions and primary community-based medical and 
social service providers for the target population of HIV-
infected children, pregnant women and their families. The 
projects are intended to increase access to comprehensive care, 
as well as to voluntary participation in NIH and other clinical 
trials.

AIDS dental services

    The bill includes $7,500,000 for AIDS dental services, 
which is $563,000 above both the President's request and the 
1996 level. The program provides grants to dental schools and 
postdoctoral dental education programs to assist with the cost 
of providing unreimbursed oral health care to over 73,000 
patients with human immunodeficiency virus disease. 123 schools 
are expected to receive awards in 1996. Dental students and 
residents participating in this program receive extensive 
training in the management of oral care of people living with 
AIDS.

Education and training centers

    The bill provides $16,287,000 for AIDS education and 
training centers, which is $4,287,000 above the 1996 
appropriation and the same as the Administration request. The 
centers train health care personnel who care for AIDS patients 
and develop model education programs. This program was first 
funded in 1987 and has received $137 million since its 
inception.

Family planning

    The bill includes $192,592,000 for the family planning 
program, which is the same as the 1996 appropriation and 
$5,860,000 below the Administration request. The program 
provides grants to public and private non-profit agencies to 
support projects which provide a range of family planning and 
reproductive services, as well as screening for ancillary 
health problems such as hypertension and diabetes. The program 
also supports training for providers, an information and 
education program, and a research program which focuses on 
family planning service delivery improvements. During 1996, 4.3 
million clients were served through a network of over 4,200 
clinics funded in part by the family planning program. Almost 
60 percent of the clinics are operated by State, county and 
local health departments.
    The bill repeats language from the 1996 appropriations bill 
making clear that these funds shall not be expended for 
abortions, that all pregnancy counseling shall be nondirective, 
and that these funds shall not be used to promote public 
opposition to or support of any legislative proposal or 
candidate for public office.
    The bill includes language codifying current regulatory 
requirements pertaining to income guidelines for clients 
receiving family planning services. It also requires the 
Secretary of HHS to submit a report to Congress on the impact 
of the family planning program on a number of health outcome 
measures, as well as Medicaid and welfare program expenditures.

Rural health research

    The Committee has provided $7,884,000 for rural health 
research, which is $1,469,000 below the 1996 appropriation and 
the same as the Administration request. The activity supports 
several rural health research centers, the Office for Rural 
Health Policy's advisory committee, and a telemedicine grant 
program.

Health care facilities

    The Committee has not included funding for health care 
facilities. $20,000,000 was provided for this purpose in 1996, 
and $2,000,000 was included in the President's 1997 request. 
This expired authority provides funds to public and private 
nonprofit entities for construction or modernization of 
outpatient medical facilities. This activity has not been 
funded by the Committee on a regular annual basis. The 
Committee felt that provision of services rather than 
construction was a higher priority in the current stringent 
fiscal environment.

Buildings and facilities

    $2,828,000 is provided for buildings and facilities for 
1996, which is $2,087,000 above the 1996 appropriation and 
$2,000,000 above the Administration request. These funds are 
used to finance the repair and upkeep of buildings at the 
Gillis W. Long Hansen's Disease Center at Carville, Louisiana. 
The increase is intended to finance one-time renovation costs 
due to be completed during fiscal year 1997 as part of the 
agreement to transfer the facility to the State of Louisiana, 
as described in the Hansen's disease services section of the 
report.

National practitioner data bank

    The Committee does not provide funding for the national 
practitioner data bank for fiscal year 1996, which is the same 
as both the 1996 action on appropriations and the 
Administration request. The Administration request and the 
Committee recommendation assume that the data bank will be 
self-supporting, with collections of $6,000,000 in user fees.
    The national data bank receives, stores and disseminates 
information on paid medical malpractice judgments and 
settlements, sanctions taken by professional societies, and 
certain professional review actions. Insurance companies, State 
license boards and professional societies are required to 
report information to the data bank within 30 days of each 
action. The coverage of the data bank includes dentists and 
physicians, and, with respect to malpractice settlements, other 
categories of licensed health professionals. Hospitals are 
required to search the data bank when a health care provider 
applies for employment and once every two years thereafter. 
State licensing boards and other health care entities also have 
access to the data bank. Traditional bill language is included 
to ensure that user fees are collected to cover all costs of 
processing requests and providing such information to data bank 
users.

Program management

    The bill includes $112,058,000 for the cost of Federal 
staff and related activities to coordinate, direct and manage 
the programs of the Health Resources and Services 
Administration. This amount is the same as the President's 
request and $891,000 below the amount provided for fiscal year 
1996.

               Medical Facilities Guarantee and Loan Fund

           Federal Interest Subsidies for Medical Facilities

    The Committee provides $7,000,000 for the Medical 
Facilities Guarantee and Loan Fund, which is the same as the 
budget request and $1,000,000 less than the amount appropriated 
in 1996. Appropriations are used to pay interest subsidies on 
loans made or guaranteed prior to fiscal year 1977 for hospital 
construction. The bill includes language, as in prior years, 
which prohibits commitments for new loans or loan guarantees in 
fiscal year 1997.

               Health Education Assistance Loans Program

    The Health Education Assistance Loans (HEAL) program 
insures loans provided by non-Federal lenders to students in 
health professions schools. Under the accounting rules 
established in the Budget Enforcement Act of 1990, one account 
is maintained to pay the obligations arising from loans 
guaranteed prior to fiscal year 1992. A second account pays 
obligations and collects income from premiums on loans 
guaranteed in fiscal year 1992 and beyond. Each annual cohort 
of loans is independently tracked in this account.
    The Committee provides $14,481,000 to liquidate 1997 
obligations from loans guaranteed prior to 1992, which is the 
same as the Administration request and $14,481,000 above the 
1996 appropriation.
    The Committee provides $477,000 for the payment of claims 
arising from the cohort of loans guaranteed in 1997, which is 
the same as the Administration request and $351,000 above the 
1996 appropriation. The funding provided by the Committee is 
based on a 1996 loan limitation of $140,000,000, which is the 
same as the Administration's proposed level and $70,000,000 
below the 1996 level. The Committee has provided a loan 
limitation level sufficient to support only the continuation 
costs of those students currently receiving HEAL loans and 
intends that the program be phased out as these students 
complete their studies. As the loan limits on guaranteed 
student loans administered by the Department of Education have 
been increased, the need for the HEAL program has declined. In 
addition, the Secretary of Education has discretionary 
authority to further increase annual and aggregate loan limits 
in the unsubsidized Federal Family Education Loan program for 
specialized training with exceptionally high cost. In addition, 
health professions students in some disciplines have access to 
loan funds sponsored by their professional membership 
organizations. Since only 20 percent of allopathic medicine 
students use HEAL loans, while 82 percent borrow funding to 
complete their education, it is clear that HEAL loans are not a 
preferred alternative for these students. Likewise, only 32 
percent of dental students borrow under HEAL, although 94 
percent borrow to finance their education.
    The Committee provides $2,688,000 for HEAL program 
management, which is $7,000 below the Administration request 
and the same as the 1996 appropriation.

             Vaccine Injury Compensation Program Trust Fund

    The Committee makes available the release of $59,721,000 
from the Vaccine Injury Compensation Trust Fund in 1996, which 
is the same as both the Administration request and the total of 
trust fund monies made available in 1996.
    The National Vaccine Injury Compensation Program provides a 
system of compensation for individuals with vaccine-associated 
injuries or deaths. Funds for claims from vaccines administered 
on or after October 1, 1988 are generated by a per-dose excise 
tax on the sale of selected prescribed vaccines. Revenues 
raised by this tax are maintained in a Vaccine Injury 
Compensation Trust Fund.
    Trust funds made available in the bill will support the 
liability costs of vaccines administered after September 30, 
1988. They will also support the $3,000,000 in costs incurred 
by the agency in the operation of the program, which is the 
same as both the 1996 level and the Administration request.

                      Vaccine Injury Compensation

    The bill provides $110,000,000 in general funds for vaccine 
compensation for claims associated with vaccines administered 
prior to October 1, 1988. This is the same as both the 
Administration request and the 1996 appropriation; it is the 
full authorized amount.

               Centers for Disease Control and Prevention

                 Disease Control, Research and Training

    The bill includes $2,187,018,000 for the Centers for 
Disease Control and Prevention, which is $75,102,000 above the 
1996 level and $52,240,000 below the Administration request. 
The Centers for Disease Control and Prevention (CDC) assists 
State and local health authorities and other health-related 
organizations in controlling the spread of infectious diseases, 
reducing chronic diseases, providing protection from 
environmental and workplace hazards, and reducing risk factors, 
such as smoking and high blood pressure.
    Despite fiscal constraints, the Committee made the choices 
necessary throughout the bill to provide increased resources 
for a number of prevention programs, believing investment in 
this area is a high priority. As a result, increases above the 
1996 level are included for the prevention health services 
block grant, AIDS prevention and education, chronic and 
environmental disease prevention, breast and cervical cancer 
screening, infectious disease, lead poisoning prevention, and 
crime bill activities.

Preventive health and health services block grant

    -The Committee recommends $157,000,000 for the preventive 
health and health services block grant, which is $11,771,000 
above both the amount requested and the 1996 level. This 
program provides States with funds for programs addressing any 
of the Healthy People 2000 objectives, rodent control, 
community and school-based fluoridation programs, emergency 
medical services, and prevention of sex offenses. By statute, 
the first $7,000,000 appropriated for the block grant is 
designated for rape prevention and rape services. Because the 
block grant is available to all States and permits them broad 
flexibility to address those health needs they believe are most 
acute in their own communities, the Committee felt it was 
important to restore funding to fiscal year 1995 levels.

Prevention centers

    -The Committee recommends $7,106,000 for prevention 
centers, which is the same as the Administration request and 
$993,000 below the 1996 appropriation. Grants are made to 
academic institutions to operate centers which conduct applied 
research to promote health and disease prevention. These 
centers have been funded since 1986 with a total of $48.6 
million.

Childhood immunization

    -The bill includes $467,890,000 for the childhood 
immunization program, which is the same as the 1996 amount and 
$20,003,000 below the Administration request. In addition, the 
Vaccines for Children (VFC) program funded by Medicaid is 
expected to support $524 million in vaccine purchase and 
distribution in 1997, an increase of $114 million over 1996.
    -Project grants assist State and local agencies in 
planning, developing, and conducting childhood immunization 
programs, including enhancement of the vaccine delivery 
infrastructure, and in delivering vaccines. National activities 
include maintenance of a stockpile of vaccines; the 
consolidated purchase of vaccines for State and local health 
agencies; surveillance and investigations; and research into 
the safety and efficacy of new and presently used vaccines.
    -Within the total provided for immunization activities the 
Committee intends that the full amount of the President's 
request for polio eradication be provided. The Committee 
recognizes the remarkable success that has been made toward 
eradicating polio and the potential for eliminating this 
disease by the year 2000. The Committee commends CDC for its 
active leadership in this effort. Achieving the goal of 
eradication will mean tremendous savings in human and financial 
costs. In the United States alone, savings of $230,000,000 will 
accrue on an annual basis once the disease is eradicated and 
the need for immunization is eliminated. The Committee believes 
that the increased funding for polio eradication can be made 
available through a reduction in the President's request for 
grants to States for infrastructure development and vaccine 
purchase. Funding for these activities has been substantially 
increased in the past few years, and the Committee has been 
disturbed by reports of large amounts of funds from prior years 
remaining unspent at the State level. In addition, States have 
access to the entitlement Vaccines for Children program for the 
purchase of vaccines; estimates of State participation in that 
program have dropped below projected levels for fiscal year 
1996, indicating that perhaps State demand is not as strong in 
that program as well.

Human Immunodeficiency Virus

    -The bill includes $599,080,000 for activities related to 
the human immunodeficiency virus (HIV). This amount is 
$15,000,000 above the 1996 level and $17,901,000 below the 
Administration's request. The CDC HIV programs support 
research, surveillance, epidemiologic and laboratory studies, 
and prevention through information, education, and risk 
reduction. Major information, education and prevention 
activities include counseling, testing, and partner 
notification; HIV prevention among high risk populations, 
including intravenous drug users, women and infants, and 
hemophiliacs; special minority initiatives; programs for school 
and college-aged youth; information campaigns for the general 
public; and tuberculosis control efforts. CDC provides funds to 
State and local health departments to develop and implement 
integrated community prevention plans. The planning process 
assesses unmet needs and sets priorities among them, 
coordinates services among various types of community 
providers, reduces duplication and encourages the conduct of 
program evaluations.
    The Committee encourages CDC to direct additional resources 
to cooperative agreements with State and local health 
departments to meet the gaps identified in community-based HIV 
prevention programs. The Committee commends the CDC for its 
commitment to process evaluation of the implementation of 
community planning for HIV prevention programs and supports 
CDC's plans to move to more outcome evaluation of the programs 
funded at the local level. This effort to improve evaluation 
will require allocation of funds at the State and local level 
for evaluation and training.
    In addition, CDC should work to strengthen the 
effectiveness of community-based HIV prevention interventions 
through stronger collaboration with the prevention research 
activities at the National Institutes of Health (NIH). In 
addition to efforts to enhance capacity and expertise at CDC in 
areas of applied behavioral research and program evaluation, 
CDC is strongly encouraged to work with NIH to develop systems 
to transfer findings regarding effective interventions to 
providers of prevention services.
    -The Committee is concerned by recent reports that CDC may 
be supporting non-health-related activities with its prevention 
funding. The Committee reiterates the concerns it expressed 
last year regarding the use of Federal funds for advocacy 
purposes, whether the advocacy relates to public policy, 
lifestyle choices, Federal funding, or election outcomes.

Tuberculosis

    -The Committee has included $119,303,000 for the 
tuberculosis (TB) program, the same as the 1996 appropriation. 
The Administration proposed to consolidate these activities 
into an STD/TB partnership grant. In addition to funding 
provided in this line item, CDC AIDS activities support HIV-
related tuberculosis control efforts. The tuberculosis program 
supports grants to States and large cities. Funds are used to 
hire outreach workers who provide directly-observed therapy, to 
support local surveillance, and to conduct screening of high-
risk populations. In addition, funds support research to 
develop new prevention, diagnostic, and treatment technologies; 
assistance to upgrade State and local laboratories; 
epidemiological investigations; and educational and training 
activities.
    -The Committee continues to be concerned about the 
resurgence of tuberculosis and the problems related to multi-
drug resistant TB. CDC is encouraged to continue its efforts 
outlined in the National Plan for the Elimination of Multi-Drug 
Resistant Tuberculosis and to continue outreach activities, 
such as directly observed therapy, supported by the 
tuberculosis grant program.
    -The Committee notes the number of TB cases in the U.S. 
among the foreign born and globally. The Committee commends CDC 
for working with the U.S. Agency for International Development 
to develop a joint plan for collaboration that outlines 
specific initiatives that could take place to combat TB 
globally, and further recommends that CDC work with the USAID 
as they expand their effort beyond the three foreign countries 
that contribute most heavily to the cases of foreign born TB in 
the U.S.

Sexually transmitted diseases

    -The Committee recommends $105,299,000 for sexually 
transmitted diseases (STDs), the same as the 1996 
appropriation. The Administration proposed to consolidate these 
activities into an STD/TB partnership grant. The Committee has 
provided full funding for the Tuskegee reimbursement program. 
Grants are awarded to State and local health departments and 
other nonprofit entities to support primary prevention 
activities, surveillance systems, screening programs, partner 
notification and counseling, outbreak control, and clinical 
skills training. Federal activities include technical 
assistance, special investigations, and surveillance and 
epidemiologic research. The infertility program conducts 
chlamydia testing in family planning and STD clinics in an 
effort to prevent STD-related infertility. The Committee 
encourages CDC to target a share of its STD efforts to the band 
of southern States that form what has been called the 
``syphilis belt.''

Chronic and environmental disease prevention

    -The bill includes $155,000,000 for chronic and 
environmental disease prevention, an increase of $11,256,000 
above the 1996 amount. The Administration proposed to 
consolidate these activities into a chronic disease partnership 
grant. The chronic and environmental disease program supports 
surveillance, epidemiology, and laboratory evaluation of 
environmental exposures and resulting illnesses, chronic 
disease, behavioral risk factors, and injuries. It also 
supports applied research to develop control and prevention 
programs; provision of epidemiologic, laboratory, and 
management consultation and training services to State and 
local health professionals; and development of laboratory 
techniques to test for the presence of hazardous substances in 
human tissues and the effects of exposure to environmental 
hazards.
    -Programs supported within this activity include the 
behavioral risk factor surveillance system; cancer registries; 
the community health promotion program; smoking cessation; 
health education for school and college-age youth; and efforts 
against diabetes, cancer, cardiovascular disease, birth 
defects, disabilities, chronic fatigue syndrome, and fetal 
alcohol syndrome.
    -The Committee has provided an increase in this program to 
permit increased funding for a number of initiatives: the 
effort to expand the number of comprehensive State diabetes 
control programs; the colorectal screening program; the cancer 
registries program; and an effort described below to provide 
rehabilitation service information to those who have suffered 
limb loss.
    -The Committee encourages CDC to continue its 
cardiovascular disease prevention and control program. The 
Committee understands this program includes a national 
communications plan to educate the public about cardiovascular 
diseases prevention, tracking and monitoring of disease rates 
and risk factors and assistance to States to implement 
community-based programs promoting physical activity and 
healthy diet.
    The Committee urges CDC to intensify its efforts to prevent 
spina bifida and anencephaly through promotion of increased 
consumption of folic acid among women of reproductive age. CDC 
is encouraged to support research regarding how to increase 
consumption, population-based health communication activities 
and evaluation.
    -The Committee notes the work of the CDC, the National 
Institute of Child Health and Human Development and the Health 
Resources and Services Administration in developing a model 
guideline for death scene protocol for sudden infant death 
syndrome. The Committee encourages continued development and 
publication of these guidelines.
    -The Committee is aware of the success of persons with limb 
loss in returning to the workplace following traumatic 
amputation surgery and acknowledges the important role access 
to rehabilitation information and services play in the 
amputation rehabilitation process. Existing information 
sources, however, are not equipped to handle the increasing 
demand for these services. The Committee encourages CDC to 
support on a competitive basis information dissemination and 
public education activities to provide amputees with improved 
information regarding their rehabilitation services and 
options.
    -The Committee encourages CDC to enhance its chronic 
fatigue and immune dysfunction syndrome (CFIDS) surveillance 
projects to include outreach to populations not formerly 
recognized as being affected by CFIDS, namely minority 
populations and children and adolescents. The Committee 
encourages CDC to consider conducting education programs for 
health care providers and commencing a series of studies on 
rates of CFIDS among health care workers, family members of 
CFIDS patients and pregnant women with CFIDS.
    -CDC has initiated an effort to advance early intervention 
in epilepsy, a chronic neurological condition afflicting 2.5 
million people in the U.S. The Committee understands that CDC, 
working with national physician and patient organizations in 
epilepsy, is planning a consensus conference on effective 
epilepsy treatment and on development of patient-based 
evaluation of treatment. This patient-based approach is vitally 
needed, particularly because this condition, which is often 
misdiagnosed and inappropriately treated, can be effectively 
managed with early and medically appropriate intervention. The 
Committee urges the CDC to continue its efforts in this area.
    -The Committee is aware that the CDC has moved the oral 
health activities from Division status to program status. It is 
the Committee's understanding that this restructuring occurred 
because there were insufficient base resources for oral health 
activities to justify Division status and was not indicative of 
decreased support for oral health activities. The Committee 
recognizes the contribution of oral health to overall health 
status and the significant health care expenditures directed to 
oral conditions that are largely preventable through proven 
prevention practices i.e., water fluoridation and dental 
sealants. The Committee has every expectation that the dental 
program will be reinstated as a Division in fiscal year 1997. 
The Committee expects the Division to focus its efforts on 
decreasing the incidence of dental caries among children and 
adults in targeted populations, educating dentists on critical 
infection control practices to ensure the safety of the public 
and dental personnel, improving surveillance of oral diseases 
and associated expenditures and continuing scientific 
leadership on oral health issues.-

Breast and cervical cancer screening

    -The Committee has included $134,670,000 for the breast and 
cervical cancer screening program, which is $10,000,000 above 
the 1996 level. The Administration proposed to consolidate 
these activities into a chronic disease partnership grant. The 
breast and cervical cancer screening program supports 
screening, education, and followup services for low-income 
women, training for health care providers, quality assurance 
activities, national technical assistance and support, and 
surveillance and program evaluation.
    -The Committee commends the CDC for utilizing funding for 
the breast and cervical cancer prevention program to continue 
to build programs nationwide, and to develop programs 
consistently from State to State that include minimum standards 
for participating States. Continued priority for breast cancer 
screening should be given to postmenopausal, low-income, 
underinsured and uninsured women, and those women at high risk 
of breast cancer.

Infectious diseases

    -The bill includes $82,153,000 for infectious diseases, 
which is $20,000,000 above the 1996 level and $5,667,000 below 
the Administration request. The Committee strongly supports 
this core function of the agency and is aware of the continuing 
threats of new and reemerging infectious diseases. The program 
supports national surveillance of infectious diseases, the 
development of new or improved prevention and control methods 
and techniques, the acceleration of the general application of 
accepted prevention technologies, and strengthening of the 
capability to respond to outbreaks of new and reemerging 
infectious diseases. Some of the disease areas concentrated 
upon include Lyme Disease, drug resistant microorganisms, 
infectious diseases in child care settings, foodborne diseases, 
hospital infections, hantavirus, and pneumococcal disease.
    -Infectious diseases are appearing or reappearing in the 
United States with increasing incidence. The 1992 Institute of 
Medicine (IOM) report made clear that the U.S. is unprepared to 
monitor traditional infectious diseases and new and emerging 
infectious diseases. In response to the IOM report, the CDC has 
developed a strategy which consists of four major goals for 
revitalizing the U.S. ability to identify, contain, and prevent 
emerging diseases: (1) surveillance; (2) applied research; (3) 
prevention and control; and (4) developing infrastructure. The 
Committee encourages CDC to use a portion of the resources 
provided to address the infrastructure component of its plan. 
The deterioration of local, State and Federal health 
laboratories has handicapped effective disease surveillance 
efforts. Diagnostic laboratory capabilities are in need of 
upgrading to meet the challenge of emerging infectious 
diseases.
    The Committee remains committed to ensuring that the Public 
Health Service (PHS) takes all necessary steps to protect the 
safety of the U.S. blood supply and blood products. Within the 
resources provided for infectious diseases, the Committee 
encourages CDC to allocate additional funding for a 
comprehensive blood safety surveillance effort. The Committee 
suggests that the effort include: (a) active surveillance, 
including a serum bank, to detect adverse effects among blood 
product recipients; (b) patient-related outreach activities; 
and (c) collaborative efforts with other PHS agencies and 
private foundations to address continuing concerns about 
possible viral or pathogenic contamination in the blood supply.
    The Committee notes that historically minority health 
professions institutions are developing an emerging capability 
in the area of pharmacological approaches to controlling 
infectious disease and in toxicology. CDC is encouraged to work 
closely with these institutions, which focus on vulnerable 
populations when implementing its plan to address emerging 
infectious disease threats.
    The Committee encourages CDC to support competitively 
awarded demonstration projects to establish models to improve 
surveillance, prevention, and control of hospital acquired 
infections and drug resistance; to assess the efficacy of these 
interventions; and to develop training approaches.
    The Committee encourages CDC to assist States in their 
public health education and surveillance activities to prevent 
the spread of rabies.
    The Committee is aware that last year the CDC increased its 
estimate of the number of people infected with hepatitis C by 
11%, now totaling 3.9 million people, and therefore urges that 
hepatitis C be incorporated into CDC's emerging infectious 
disease efforts. Additionally, since at least one-third of the 
people infected with hepatitis B and C have no known risk 
factors, the Committee encourages CDC to conduct further 
epidemiological studies to better identify the causes of these 
diseases.
    The Committee encourages the CDC to enhance its efforts to 
investigate the outbreak of chronic pulmonary hemorrhage and 
hemosiderosis, and develop a preventative and control 
initiative to address this serious public health problem.-
    The Committee encourages CDC to participate in a trans-
Department public education campaign on H. pylori eradication.

Lead poisoning prevention

    The bill includes an appropriation of $38,188,000 for the 
childhood lead poisoning prevention program. This is $2,000,000 
above both the 1996 level and the Administration request. The 
program supports grants to States and localities for screening, 
followup, and education; laboratory proficiency activities; the 
development of better instruments for blood lead measurement; 
epidemiologic activities; and surveillance.
    The average blood lead level for persons in the U.S. has 
dropped 78 percent from 1976 to 1991. However, about 1.7 
million U.S. children continue to have elevated blood lead 
levels. The prevalence of elevated blood lead levels in black 
children living in large inner cities is around 36 percent. The 
Committee urges CDC to make further efforts to target the 
program to those areas with the greatest level of need.
    The Committee commends CDC for its support of the continued 
development of more effective and portable blood lead hand 
screening tools, and for supporting the development of 
screening kits for professionals to use in the field that will 
allow an almost immediate reading, making possible immediate 
intervention and treatment.

Injury control

    The Committee has included $40,598,000 for the injury 
control program, which is $2,600,000 below both the 1996 level 
and the Administration request. The injury control program 
supports intramural research to identify risk factors and 
interventions to prevent morbidity, mortality, and disability 
resulting from injury and trauma outside the workplace; injury 
control research centers; extramural research project grants; 
and technical assistance to State and local health departments. 
The program focuses on motor vehicle crashes, falls, fires and 
burns, poisoning, drowning, and violence, including homicide, 
suicide and domestic violence.
    The bill contains a limitation to prohibit the National 
Center for Injury Prevention and Control at the Centers for 
Disease for Disease Control from engaging in any activities to 
advocate or promote gun control. The CDC may need to collect 
data on the incidence of gun related violence, but the 
Committee does not believe that it is the role of the CDC to 
advocate or promote policies to advance gun control 
initiatives, or to discourage responsible private gun 
ownership. The Committee expects research in this area to be 
objective and grants to be awarded through an impartial peer 
review process.
    With respect to injury in the U.S., the Committee 
encourages the CDC to work with the Institute of Medicine (IOM) 
to convene a study to (1) reassess and characterize the problem 
of injury in the U.S.; (2) describe, assess, and evaluate the 
response of public and private agencies, especially the CDC 
National Center for Injury Prevention and Control, to the 
recommendations of IOM's Injury in America and subsequent 
reports; and (3) make recommendations intended to further 
develop the field and to reduce the burden of injury in the 
U.S. The Committee encourages IOM to ensure that this review is 
multidisciplinary, comprised of scientists and public 
representatives representing a wide variety of disciplines and 
perspectives. The Committee requests CDC to report on the 
status of this initiative during the 1998 appropriations 
hearings.
    Every year, over 3,500 Americans lose their lives in 
residential fires and another 60,000 are hospitalized for 
burns. Many of these injuries and deaths can be prevented 
through the use of properly placed and functioning smoke 
detectors. For example, a CDC-sponsored smoke detector project 
in a low-income area of Oklahoma City decreased burn-related 
injuries by 83% at a time when the rate in the rest of the city 
rose 33%; at least 32 injuries and deaths were prevented. The 
Committee encourages CDC to enhance its program to reduce 
injuries and deaths from residential fires. CDC's objectives 
are to establish and evaluate projects in States with the 
highest rates of residential fire deaths, to provide technical 
assistance in preventing residential fire deaths, and to 
address questions that will advance our knowledge of how to 
prevent residential fire deaths.
    The Committee recognizes CDC's leadership and important 
work to gather and analyze information on youth violence, to 
develop and test prevention strategies, and to evaluate 
different ways of implementing these interventions. The 
Committee recognizes that suicide and suicidal behavior have 
become a major public health problem in the United States. The 
Committee recommends that CDC extend its youth violence 
prevention efforts to evaluate promising interventions and 
prevention strategies, and disseminate information to 
communities about the magnitude, causes, and prevention of 
injuries resulting from suicide and suicidal behavior.
    The Committee recommends that the CDC consider funding 
domestic violence intervention programs within substance abuse 
treatment centers serving female clients.

Occupational safety and health

    The bill includes $128,623,000 for the National Institute 
for Occupational Safety and Health (NIOSH), which is $7,961,000 
below the Administration request and the same as the 1996 
level. NIOSH conducts applied research, develops criteria for 
occupational safety and health standards, and provides 
technical services to government, labor and industry, including 
training for the prevention of work-related diseases and 
injuries. Activities supported include surveillance, health 
hazard evaluations, intramural and extramural research, 
instrument and methods development, dissemination, and training 
grants.

Mine safety and health

    The Committee does not provide funding for mine safety and 
health, which the Administration proposes to transfer from the 
Department of Energy at a funding level of $32,000,000. When 
the Bureau of Mines was dismantled last year, its mine safety 
research functions were transferred to the Department of 
Energy. Without seeking input from the Appropriations 
Subcommittee having jurisdiction over NIOSH, the conference 
report on the 1996 omnibus spending bill urged the 
Administration to transfer these functions to NIOSH. The 
Committee has heard from parties both opposed to and supportive 
of such a transfer, and makes no judgments on its merits. 
However, the Committee is reluctant at this time to allocate 
scarce resources to this activity. The ultimate source of 1997 
funding for the mine safety research program will need to be 
determined in the context of conference on the two 
appropriations bills involved.

Epidemic services

    The bill provides $67,413,000 for epidemic services, which 
is $3,000 above the 1996 level and the same as the budget 
request. The objectives of the program include the prevention 
and control of epidemics, the maintenance of surveillance 
systems, the training of public health epidemiologists, and the 
operation of the quarantine program. The program supports the 
Epidemic Intelligence Service program, the publication of the 
Morbidity and Mortality Weekly Report, and a variety of infant 
and minority health programs.
    The Committee encourages CDC to support multi-disciplinary, 
collaborative efforts in health sciences and other relevant 
disciplines to examine the various aspects of risk assessment. 
These efforts would identify individuals and groups that are at 
risk for specific adverse conditions, including genetic risks, 
assess the manifestations of the risks, and develop 
interventions to address such risks.

National Center for Health Statistics

    The bill includes $40,063,000 in Federal funds for the 
National Center for Health Statistics (NCHS), which is 
$2,665,000 above the 1996 level and $4,663,000 above the 
request. In addition to the amount appropriated, the bill makes 
available $48,400,000 from the Public Health Service one 
percent evaluation set-aside, which is $4,663,000 below the 
amount requested by the Administration and $8,337,000 above the 
1996 set-aside amount. Taking into account funds from all 
sources, the Committee makes available $88,463,000 for NCHS, 
the same as the budget request and $11,002,000 above the 1996 
level. The Center is responsible for collecting, interpreting, 
and disseminating data on the health status of the U.S. 
population and the use of health services. Among the surveys 
supported are the National Vital Statistics System, the 
National Health Interview Survey, the National Survey of Family 
Growth, the National Health and Nutrition Examination Survey, 
and the National Health Care Survey. The Committee has provided 
a funding increase to NCHS to support the cyclical costs 
associated with the National Health and Nutrition Examination 
Survey, which provides direct standardized measurements of 
physical and nutritional status of a large sample of subjects.
    Because of advances in medical science and rehabilitation 
technology, persons with limb loss are now among the most 
effectively and efficiently mainstreamed of all persons with 
disabilities. One of the major obstacles impeding further 
progress in improving outcomes for persons with limb loss, 
however, is the lack of sound epidemiological studies and 
demographic data. Information on the number of persons who are 
missing limbs is highly unreliable. The Committee encourages 
the NCHS to incorporate into its study designs where possible 
methodologies to determine such issues as the numbers of 
persons with limb loss by anatomic description, cause, and use 
of adaptive and prosthetic devices.
    The Committee also understands that little national data 
exists on the frequency of the practice of electroconvulsive 
therapy, especially among patients involuntarily committed to 
psychiatric facilities. The Committee encourages NCHS to 
incorporate into its study designs where possible methodologies 
to determine such issues as the number of individuals receiving 
electroconvulsive therapy and the number of associated 
mortalities.

Buildings and facilities

    The bill includes $8,353,000 for buildings and facilities, 
which is the same as the Administration request and $4,000,000 
above the 1996 appropriation. Funding supports ongoing 
maintenance projects, as well as safety repairs and equipment 
purchases. The Committee has provided an increase in funding in 
recognition of the fact that CDC faces some acute renovation 
needs, particularly in its laboratory facilities.

Program management

    The bill includes $2,637,000 for program management, which 
is the same as both the budget request and the amount 
appropriated in 1996. This activity supports the overall 
planning, direction, and administration of the programs and 
activities of the Centers for Disease Control and Prevention. 
Only a small portion of the total CDC administrative costs are 
captured in this line item; according to the budget 
justification, agency administrative costs in 1997 will total 
$488.8 million.
    The Committee continues to be pleased with CDC's program 
activity and commitment to improving the health status of 
minority and disadvantaged individuals, and urges continued 
expansion of these efforts.
    The Committee commends the Director's efforts to promote 
behavioral and social sciences research at CDC and for creating 
the position of Assistant Director for Behavioral and Social 
Sciences. The Committee believes that such research is integral 
to the CDC mission and requests the Director to provide a 
status report on CDC's activities relating to behavioral and 
social sciences research during the 1998 appropriations 
hearings.

Crime bill activities

    The bill includes $33,642,000 for crime bill activities, 
which is $2,000,000 above both the President's original request 
and the 1996 level. These activities are funded through the 
Crime Bill trust fund. $28,642,000 is provided for rape 
prevention and services; $5,000,000 is provided for community 
programs to prevent domestic violence. No further funding is 
provided for a study of the incidence of domestic violence, 
since it was a one-time expenditure in 1996.
    The $28,642,000 for rape prevention and services will be 
used by States to support rape crisis hotlines, victim 
counseling, professional training of police officers and 
investigators, educational programs in colleges and secondary 
schools, and offender rehabilitation. The Committee urges CDC 
to ensure that States receiving funds from the grants for 
assistance to victims of sexual assault, as provided by the 
Violence Against Women Act, support State coalitions and 
community-based rape crisis centers whose work is focused on 
ending sexual violence, operating hotlines for victims of 
sexual violence and their families, and those which provide 
crisis intervention, advocacy, and self-help services to 
victims. The Committee also urges that similar non-governmental 
nonprofit agencies show a demonstrated effectiveness in 
carrying out work achieving these goals in order to receive 
funds. In addition, the Committee urges that CDC ensure that 
the States, pursuant to targeting education programs as 
required by the Violence Against Women Act, use at least 25 
percent of the State's allocation for rape prevention and 
education for middle, junior and high school aged youth in both 
school and nonschool based settings.
    The $5,000,000 for community programs on domestic violence 
will provide funding for public and private non-profit 
organizations to coordinate intervention and prevention 
strategies in the area of family violence and to develop an 
integrated community plan of action to prevent family violence.

                     National Institutes of Health

    The bill includes $12,747,203,000 for the 23 appropriations 
which together fund the programs of the National Institutes of 
Health (NIH). These include appropriations for the 17 research 
Institutes, the National Center for Research Resources, the 
National Center for Human Genome Research, the John E. Fogarty 
International Center, the National Library of Medicine, the 
Office of the Director, and Buildings and Facilities. The total 
in the bill is $370,642,000 above the President's budget 
request for 1997 and $819,641,000, or 6.9 percent, above the 
comparable appropriations for fiscal year 1996. This funding 
level provides a 6.5 percent increase in total for the 
components of NIH excluding the buildings and facilities 
account. Buildings and facilities receives a 37 percent 
increase because $90,000,000 is provided for the first year 
costs of constructing the new clinical research center. The 
Committee feels a dual responsibility to support both 
extramural research and the construction of the clinical center 
and anticipates that all the research mechanisms and areas that 
the NIH supports will share in the increases provided. The 
Committee further expects that the increase provided will be 
allocated to science rather than administrative costs.
    Setting priorities.--The Committee views NIH as one of its 
very highest priorities and has made difficult resource 
allocation decisions throughout the bill to preserve what it 
believes is the minimum necessary funding level for NIH. NIH is 
the world's leading biomedical research institution; its 
investments in research save lives and reduce health care costs 
while creating jobs and economic growth in a global economy. In 
recent years, this research has produced major advances in the 
treatment of cancer, heart disease, diabetes, and mental 
illness that have helped thousands of American families. NIH 
supports over 50,000 scientists at 1,700 universities and 
research institutes across the U.S. NIH research has spawned 
the biotechnology revolution, whose products are projected to 
grow into a $50 billion industry by the turn of the century. 
The U.S.'s ability to translate scientific discoveries into new 
product development has resulted in its lead over Europe and 
Japan in pharmaceutical and biotechnology patents. While the 
Committee is firm in its commitment to deficit reduction, it 
believes that funding of biomedical research is an important 
investment in the future health and economic well-being of our 
nation.
    Balance in the research portfolio.--The Committee believes 
that NIH should distribute funding on the basis of scientific 
opportunity. As a result, the Committee has allocated the 
Institute appropriations consistent with the distribution 
recommended by NIH and reflecting the Director's judgment of 
scientific opportunity. If NIH believes that adjustments to 
this allocation are necessary as the 1997 appropriations bill 
moves through the legislative cycle, the Committee would be 
pleased to consider them in later action on the bill.
    To enhance NIH's flexibility to allocate funding based on 
scientific opportunity, the Committee has attempted to minimize 
the amount of direction provided in the report accompanying the 
bill. For example, there are no directives to fund particular 
research mechanisms, such as centers or requests for 
applications.
    In stating that scientific opportunity should be the basis 
for allocating research funding, the Committee understands that 
other factors are also relevant to NIH's decisions, including 
such considerations as the infectious nature of a disease, the 
number of cases and deaths associated with a particular 
disease, the Federal and other costs of treating a disease, the 
years of productive life lost due to a particular disease, and 
the estimated proximity to research breakthroughs. The 
Committee does not presume to judge which criteria should take 
precedence in individual funding decisions, but urges NIH to 
consider the full array of relevant criteria as it constructs 
its research portfolio. Prior to the fiscal year 1998 
appropriations hearings, the Committee requests NIH to report 
in detail the process it uses to distribute funding and the 
rationale for the criteria used in decision-making. The 
Committee also requests NIH to update the report submitted to 
the Senate Appropriations Committee, ``Disease-Specific 
Estimates of Direct and Indirect Costs of Illness and NIH 
Support,'' and submit it to the House Appropriations Committee 
by December 31, 1996.
    AIDS Funding.--Consistent with the philosophy outlined 
above, the Committee has again chosen not to earmark a specific 
dollar amount for AIDS research and has not provided a single 
appropriation for the Office of AIDS Research. In relying on 
NIH's recommendations for the allocation of the total funding 
provided by the Committee, the Committee understands that it 
would be NIH's intent to allocate AIDS funding in the following 
manner:

        Institute                                      1997 AIDS Funding
Cancer Institute........................................    $224,346,000
Heart, Lung and Blood Institute.........................      61,411,000
Institute of Dental Research............................      12,895,000
Institute of Diabetes, Digestive and Kidney Diseases....      12,682,000
Institute of Neurological Disorders and Stroke..........      24,775,000
Institute of Allergy and Infectious Diseases............     646,378,000
Institute of General Medical Sciences...................      27,616,000
Institute of Child Health and Human Development.........      64,186,000
Eye Institute...........................................       9,429,000
Institute on Environmental Health Sciences..............       6,471,000
Institute on Aging......................................       1,849,000
Institute of Arthritis, Musculoskeletal and Skin 
    Diseases............................................       4,261,000
Institute on Deafness and Other Communication Disorders.       1,815,000
Institute of Mental Health..............................      97,176,000
Institute on Drug Abuse.................................     160,900,000
Institute on Alcohol Abuse and Alcoholism...............      11,025,000
Institute of Nursing Research...........................       5,484,000
Center for Research Resources...........................      73,891,000
Center for Human Genome Research........................       2,997,000
Fogarty International Center............................      10,287,000
Library of Medicine.....................................       3,355,000
Office of the Director..................................      34,491,000

    The Committee anticipates that this allocation may change 
as NIH reviews and implements the detailed committee reports 
from the Levine panel review of the NIH AIDS research program.
    The Committee intends that the funds allocated for AIDS 
should be spent in a manner fully consistent with the AIDS 
research plan developed by the Office of AIDS Research and 
expects the Director of NIH to use the full authority of his 
office to ensure that this occurs. The Committee has provided 
the Director of the Office of AIDS Research, jointly with the 
Director of NIH, transfer authority to reallocate up to three 
percent of funds designated for AIDS research among Institutes, 
subject to normal reprogramming procedures. The Committee 
encourages NIH to use this authority whenever it believes that 
an adjustment in the allocation of AIDS funding between 
Institutes is appropriate to achieve scientific objectives or 
to facilitate promising research efforts.
    The Committee wants to make clear that it continues to 
support the Office of AIDS Research (OAR), its leadership, and 
its coordinated budget planning process and that it expects the 
individual institutes, centers and divisions to fully cooperate 
with OAR's work. The Committee has provided funding for the OAR 
within the Office of the Director and intends that the OAR will 
maintain its current structure and responsibilities, including 
the allocation of an emergency discretionary fund.
    Opportunities for new investigators.--The Committee 
understands that NIH would intend to use a portion of the 
funding increase to provide forward funding for a select group 
of first-time applicants for investigator-initiated research 
project grants (R-29s) and first-time RO1 investigators. In the 
case of R-29 awards, the full five years of support would be 
provided; first-time RO1 awards would be provided the 
recommended period of support. The Committee applauds NIH's 
plan, recognizing that it would provide a much-needed boost to 
the next generation of researchers, who face daunting 
competition for research funding. It would also insulate them 
from year-to-year fluctuations in grant support. The Committee 
will watch this experiment with interest to see if it has 
broader applicability for other components of the grant pool.
    Advanced instrumentation.--The Committee understands that 
NIH would intend to use a portion of the increase provided for 
developmental and advanced instrumentation to support research 
grants throughout all grant mechanisms. This initiative would 
include development of and support for the purchase of novel 
imaging technologies for diagnosis, therapy and for the study 
of cell and structural biology; telemedicine and shared 
instrumentation programs; and computerized information systems 
for laboratory and clinical research. The Committee is 
supportive of this NIH initiative and will look forward to 
learning more about the needs in this area in next year's 
appropriations hearings.
    Small Business Innovation Research grants.--The Committee 
has heard testimony from the extramural research community and 
from NIH itself that there are problems with the set-aside for 
Small Business Innovation Research (SBIR) grants mandated in 
the Small Business Act. This set-aside is scheduled to increase 
from 2 to 2.5 percent of extramural grant funding in fiscal 
year 1997. In order to satisfy the statutory mandate, NIH has 
been forced to fund SBIR grants whose quality, as measured by 
peer-reviewed priority scores, is substantially lower than 
regular peer-reviewed investigator-initiated grants. For 
example, in fiscal year 1995, while 74 percent of RO1s received 
a priority score of 149 or less, only 18 percent of SBIR grants 
received comparably low scores (in the NIH peer review system, 
the lower the score, the more highly rated the grant). While 
the Committee is supportive of the SBIR concept and recognizes 
that it is very useful in some contexts, such as biotechnology 
and rehabilitation research, it is concerned that the 
unintended consequence of the statutory set-aside is the 
funding of some grants that do not meet the same quality 
standards as other NIH grant mechanisms. Accordingly, the 
Committee has included general provision bill language 
requiring that the median grant score of the SBIR pool of 
grants funded by NIH in an individual grant cycle be equal to 
or better than the median score of the pool of RO1 grants 
funded in the same cycle. If the median score of the pool of 
SBIR grants is higher than the median for the pool of RO1 
grants, NIH can reconstruct a smaller pool of SBIR grants to be 
funded so that the median matches that of the Ro1 grant pool. 
If NIH cannot fund enough SBIR grants meeting this criterion to 
satisfy the statutory 2.5 percent set-aside, the funding will 
become available for supporting other extramural grants.
    Bridge funding for competitive researchers.--Competition 
for research funding for investigator-initiated research grants 
(R01s) is so acute that many proposals rated as ``Outstanding'' 
do not receive funding upon their first review. Scientists are 
repeatedly forced to submit revised applications until most 
such outstanding applications eventually receive a score that 
will permit funding. The consequence of this time-consuming 
process is that even the best researchers can face a hiatus in 
support and suffer the waste and inefficiency associated with 
closing down a productive research project and then restarting 
it several months later. The Committee encourages the NIH to 
examine the possibility of providing a modest amount of 
``bridge funding'' to grantees to prevent serious disruptions 
of productive research programs during the six to twelve months 
required to revise and resubmit a highly rated but unfunded 
competitive renewal application. The Committee is pleased that 
NIH is gathering data from individual institutes about their 
methods for addressing this need and will host a workshop on 
this subject in the current calendar year. The Committee urges 
NIH to bring together NIH representatives and extramural 
scientists in this workshop to develop a recommendation for 
providing bridge funding to competitive investigators on an 
NIH-wide basis. The Committee requests the NIH to submit a 
report on the workshop's proceedings by January 1, 1997.
    Management improvements.--Despite the Committee's 
wholehearted support of NIH's research efforts, it believes 
that continued improvements can be made to the management of 
its research enterprise, both in the administrative operations 
on the NIH campus and in its funding of extramural grants. The 
Committee believes that increased efficiencies are important to 
expand the share of funding actually going to research rather 
than administration and anticipates that pressures to maximize 
the share of NIH funding going directly to research will be 
even greater in coming years.
    Definition of NIH administrative costs.--The Committee has 
been dissatisfied with the definition of administrative costs 
used by the Department of Health and Human Services for NIH 
because it includes some of the clearly science, as opposed to 
administrative, costs associated with the intramural research 
program. The Committee believes that the definition of 
administrative costs included in P.L. 99-158 and reported to 
the authorizing committees is more appropriate for NIH. This 
definition of administrative expenses ``means expenses incurred 
for the support of activities relevant to the award of grants, 
contracts, and cooperative agreements and expenses incurred for 
general administration of the scientific programs and 
activities of the National Institutes of Health.'' The 
Committee intends that the definition in P.L. 99-158 be 
modified to include in the base comparable expenses for the 
National Institute of Nursing Research, the Fogarty 
International Center, the National Library of Medicine, and the 
clinical center. This new definition should be used as the 
basis for reporting administrative expenses for NIH as a whole 
and the individual institutes in the fiscal year 1998 
congressional budget justifications and for measuring that 
administrative expenses in fiscal year 1997 do not exceed those 
in fiscal year 1996.

                       National Cancer Institute

    The bill includes $2,385,741,000 for the National Cancer 
Institute (NCI), an increase of $104,810,000 over the amount 
requested and $137,741,000 over the comparable 1996 
appropriation.
    Mission.--The NCI conducts and supports basic and applied 
cancer research in early detection, diagnosis, prevention, 
treatment and rehabilitation. NCI provides training support for 
research scientists, clinicians and educators, and maintains a 
national network of cancer centers, clinical cooperative 
groups, and community clinical oncology programs, along with 
cancer prevention and control initiatives and outreach programs 
to rapidly translate basic research findings into clinical 
practice.
    Balanced research agenda.--The Committee commends the NCI 
on its effort to support a balanced cancer research agenda--one 
which includes basic, clinical, and translational research and 
which includes research in cancer prevention, control, and 
survivorship. The Committee also believes that, within this 
balanced approach to cancer research, there should be 
flexibility in the use of these funds to address high priority 
initiatives and to fund quality research programs and their 
applications. For maximal research productivity, funding 
decisions should be based on scientific opportunities to ensure 
that investment in scientific endeavors will provide the 
greatest potential for discovery.
    Grants management.--The Committee is encouraged by the 
Director's decision to increase the number of investigator-
initiated grants in 1996. Investigator-initiated grants and 
other research project grants are at the core of basic research 
efforts and provide optimal opportunities for research 
breakthroughs. The Committee encourages the Institute to 
continue to make these grants a priority in 1997 to exploit 
research opportunities.
    The Committee also commends the Director for his efforts to 
direct special attention to patient-oriented research grants. 
The decision to provide a second review of patient oriented 
grants within 10 points of the payline sends a positive message 
to the research community.
    Under the leadership of its Director, the NCI has made 
significant progress in streamlining its administration, 
reducing administrative costs, and redirecting more than $60 
million within its budget to support extramural research. These 
steps have resulted in a major increase in new, investigator-
initiated project research grants which can receive funding. 
The Committee applauds the Institute and its Director for these 
efforts, and urges the other Institutes to pursue similar 
steps.
    Cancer coordination.--The report of the National Cancer 
Advisory Board entitled ``Cancer at a Crossroads'' outlined 
that the national cancer program suffered from an absence of a 
national coordination of cancer fighting efforts in the public, 
private and voluntary sectors. The Committee concurs with this 
view and recommends that the NCI continue to take the 
leadership working in coordination with the CDC and other 
federal agencies to strengthen coordination of the national 
cancer program. The Committee expects that other agencies will 
work with the NCI to facilitate this recommendation. Before 
hearings on the 1998 budget, the Committee would like a brief 
report outlining the progress made to accomplish this 
recommendation.
    Breast cancer.--The Committee recognizes that breast cancer 
continues to require a significant allocation of NCI resources 
in order to decipher the complex mysteries of this disease. The 
Committee agrees with NCI, which places breast cancer research 
as a high priority within the Institute, and understands that 
significant scientific opportunities exist which are not 
currently being funded. Therefore, the Committee urges NCI to 
continue to strengthen its commitment to breast cancer 
research.
    National Action Plan on Breast Cancer.--The Committee 
encourages the National Cancer Institute to maintain its 
support for the implementation of the National Action Plan on 
Breast Cancer (NAPBC). The implementation of the NAPBC should 
continue to be coordinated by the Office on Women's Health 
within the Office of the Secretary. This Plan, which unites the 
efforts of all HHS and other Federal agencies and private 
sector groups, is an important element in the fight against 
breast cancer. The Committee also encourages NCI to support the 
clinical trials related to the early detection of breast cancer 
initiated in 1996 through the Public Health and Social Services 
Emergency Fund.
    Environmental factors in breast cancer.--Data from the 
International Agency for Research from 1947 through 1992 found 
that women in the San Francisco Bay area had the highest rate 
of breast cancer in the world. The Committee is concerned that 
none of the scientists testifying before the Committee has been 
able to explain whether environmental factors contribute to 
this finding. The Committee urges the NCI in cooperation with 
the National Institute of Environmental Health Sciences to work 
with local researchers and breast cancer groups to find answers 
to these disturbing questions.
    Cancer and minority populations.--While research progress 
has been made, the Committee remains seriously concerned about 
this critical public health problem. African Americans and 
other minorities have a disproportionately higher risk for 
cancer. The Institute is encouraged to strengthen its research, 
research training, and outreach efforts which focus on breast, 
lung, and colorectal cancers, particularly in their impact on 
minority populations. The NCI is also encouraged to continue 
its initiatives to study the relationship between diet and 
cancer in African American women.
    Prostate cancer.--More than 314,000 new cases of prostate 
cancer are expected to be diagnosed in 1996, making it the most 
commonly diagnosed cancer. Over 41,000 men will die from 
prostate cancer this year. In particular, the Committee is 
concerned about prostate cancer among African American males. 
The Committee urges the NCI to intensify its efforts in this 
area. A vigorous research effort should be pursued to ascertain 
why this group is more prone to this type of cancer, and why 
they have an exceedingly high mortality rate from the disease. 
Further, since community-based programs focusing on prevention, 
detection, diagnosis, and treatment have been used successfully 
to decrease incidence and mortality rates for other cancers, 
the Committee encourages the NCI to employ this approach in an 
effort to gain a better understanding of this devastating 
disease and its effect on this segment of the population.
    Gynecologic cancers.--The Committee encourages NCI to 
continue to enhance its efforts in basic and applied 
gynecologic cancer research, specifically the implementation of 
the recommendations from the NIH consensus conference on 
ovarian and cervical cancer. The Committee hopes that the NCI 
will, if the Director believes that the mechanism is 
appropriate, choose to provide funding for gynecologic cancers, 
specifically ovarian, under SPORE, Specialized Projects of 
Research Excellence.
    HPV and cervical cancer.--A recent NIH consensus conference 
documented the link between cervical cancer and the sexually 
transmitted human papillomavirus (HPV). It has been estimated 
that over 90% of cervical cancer cases result from this 
infection. The Committee encourages the National Cancer 
Institute and the National Institute of Allergy and Infectious 
Diseases to collaborate in sponsoring basic and clinical 
research on HPV diagnosis and prevention as a risk for cervical 
cancer, and as applicable, develop screening techniques.
    Leukemia.--The treatment of cancer has seen some of its 
most tangible accomplishments in the treatment of leukemia and 
related diseases. The rate and duration of remission have 
improved dramatically in childhood leukemia, Hodgkin's disease, 
and lymphomas over the last 35 years. This progress is largely 
the result of research supported by NIH. Future development of 
new pharmaceuticals, gene therapy, immunotherapy, and new 
approaches to stem cell replacement could further advance the 
remission and cure rate. In order to make further advances in 
the treatment and cure of these diseases, the Committee urges 
the National Cancer Institute to consider all special 
opportunities and creative partnerships with industry, academic 
institutions and other private health research agencies.
    Clinical research.--The Committee continues to be concerned 
about the status of clinical research coverage in this country. 
The ability of physician-researchers to conduct clinical 
investigations and of patients to have access to treatment in 
the context of clinical trials is threatened by the refusal of 
third-party payers to cover the costs of routine patient care 
in such trials. In this regard, the Director of the National 
Cancer Institute should be commended for negotiating an 
agreement with the Department of Defense (DoD) that provides 
appropriate reimbursement for the care provided to patients 
enrolled in clinical trials. Under the agreement, enrollees in 
the DoD health care programs may participate in Phase II or 
Phase III clinical trials that have been approved by NCI, an 
NCI-funded cancer center or one of NCI's cooperative groups. 
The Committee understands that NCI is also in the process of 
negotiating similar agreements with the Department of Veterans 
Affairs and the Health Care Financing Administration. In 
negotiating these agreements, the Committee notes that there 
are other cancer trials funded outside NCI. For example, a 
number of trials involving leukemia are approved by the Heart, 
Lung and Blood Institute. The Committee believes that these and 
other high quality, peer-reviewed mechanisms should also be 
approved in the VA system and in the Medicare program, as well 
as in private insurance. The Committee would like to be kept 
apprised of the negotiations between NCI and other agencies of 
the Federal government regarding clinical trials coverage and 
to receive notification of any agreement finalized by NCI.
    Neurofibromatosis.--Enormous advances in research on 
neurofibromatosis (NF) have recently occurred, including 
discovery of the NF1 and NF2 genes, developing animal models 
and a diagnostic blood test and pre-natal testing for NF. NF 
also offers the potential for significant advances in broader 
areas, like tumor suppressor genes, and for other disorders, 
such as many of the most common cancers, brain tumors, and 
learning disabilities. Accordingly, the Committee encourages 
the National Cancer Institute to continue to pursue an 
aggressive program in basic and clinical development of NF 
research, including the use of Requests for Applications, the 
National Cooperative Drug Discovery Group program, and Small 
Business Innovation Research grants, as the Institute deems 
appropriate. The Committee requests that the NCI be prepared to 
report on the status of its NF research program at its hearings 
on the fiscal year 1998 budget.-
    Nutrition research.--NCI continues to be a leader in the 
nutrition research area. Diet is second only to smoking in its 
association with cancer. The Committee encourages NCI to 
continue its leadership in nutrition research, particularly 
with regard to women's health issues including breast cancer.
    H. pylori.--The Committee encourages the Institute to join 
in the trans-Institute research effort on H. pylori infection 
initiated by the National Institute on Diabetes and Digestive 
and Kidney Diseases and the Office of Research on Minority 
Health to explore further the connections between this bacteria 
and gastric cancer.
    Environmental justice.--NCI is encouraged to work with 
NIEHS in a collaborative effort in the area of environmental 
hazards and their disproportionate impact on minority 
populations.

               National Heart, Lung, and Blood Institute

    The bill includes $1,438,265,000 for the Heart Lung and 
Blood Institute (NHLBI), an increase of $59,595,000 over the 
amount requested and $83,319,000 over the comparable 1996 
appropriation.
    Mission.--The National Heart, Lung, and Blood Institute 
provides leadership for a national research program in diseases 
of the heart, blood vessels, lungs, and blood, in transfusion 
medicine, and in sleep disorders through support of basic, 
clinical, and population-based and health education research.
    Cardiovascular disease.--The Committee recognizes the 
seriousness of heart attack, stroke and other cardiovascular 
diseases and is concerned that, despite progress, 
cardiovascular diseases have remained America's top killer of 
men and women since 1919 and a major cause of disability. The 
Committee believes that additional cardiovascular research is 
needed and encourages the Institute to enhance its research on 
cardiovascular diseases.
    Heart failure.--Heart failure kills more than 45,000 each 
year and is the leading cause of hospitalization for Americans 
age 65 and older. Because current treatment only slows the 
course of the underlying disease, the Committee encourages the 
Institute to conduct research in cellular and molecular 
techniques that offer promise for new methods to restore heart 
function.
    Nutrient supplements.--Elevated levels of homocysteine, an 
amino acid normally found in the body, appears to increase risk 
of heart attack, stroke, peripheral vascular disease and other 
cardiovascular diseases. The Committee encourages NHLBI to 
support research assessing the effects of folic acid, vitamin 
B6 and vitamin B12 in preventing cardiovascular diseases by 
reducing homocysteine levels.
    Asthma.--Children under the age of 18 and African Americans 
suffer disproportionately from asthma. Children have a 41 
percent higher prevalence of asthma than the general 
population. African Americans up to age four and from ages 15 
to 24 are six times more likely to die from asthma than their 
caucasian counterparts. Intermediate findings of the NHLBI-
sponsored study to develop, implement, and evaluate 
interventions to control asthma morbidity among African 
American and Hispanic children suggest that it is possible to 
develop a pattern of preventive and continuing care for 
populations which have traditionally been difficult to reach 
with preventive public health programs. The Committee urges the 
NHLBI to continue to make minority and children-related asthma 
research a high priority, and requests the Director to be 
prepared to provide an update on these efforts at next year's 
appropriations hearings.
    Asthma prevalence, mortality, and hospitalization rates 
have increased in recent years, and minority populations are 
disproportionately affected. Although the reasons for the 
racial disparity are not fully known, access to health care 
services undoubtedly plays a role. The school setting, 
therefore, offers an opportunity to assist children who are not 
reached though the health care system. The Committee encourages 
the development and evaluation of innovative model school 
programs to increase identification and appropriate referral of 
children with uncontrolled asthma, reduce exposure to known 
allergens and irritants, increase participation of students 
with asthma in all school activities, improve support to 
students for following their asthma management plans, and 
enhance communication between school and home.-
    Hemophilia.--Last year the Committee called upon NHLBI to 
strengthen its hemophilia research efforts in gene therapy and 
in seeking in a cure for this serious bleeding disorder. The 
Committee also called for a study of the scope of hemophilia 
vulnerability to blood contaminants and specifically 
Creuzfeldt-Jakob disease (CDJ). In light of the results of the 
Institute of Medicine study calling attention to the importance 
of research support to ensure a safe blood supply, the 
Committee encourages NHLBI to enhance its hemophilia research 
activities including the CDJ study. The Committee requests that 
NHLBI work collaboratively with CDC and FDA to address all 
hemophilia research, epidemiology, surveillance and patient 
outreach aspects necessary to ensure maximum safety and 
integrity of the U.S. blood supply.
    Transfusion medicine.--The Committee is pleased that NHLBI 
plans to establish a network of umbilical cord blood banks and 
transplant centers. These facilities will provide a resource 
for research designed to determine whether transplants of stem 
and progenitor cells from umbilical cord blood are a clinically 
acceptable alternative therapy for patients suffering from 
leukemia, aplastic anemia, combined immune deficiency and 
inborn errors of metabolism. The Institute has also 
demonstrated its commitment to a safer and more efficacious 
blood supply by funding three specialized centers of research 
in transfusion medicine. The Committee encourages the NHLBI to 
support research initiatives to improve the viability and 
function of transfused platelets. The Committee is pleased that 
the NHLBI is supporting the Viral Activation Transfusion Study 
(VATS) to determine if transfusion hastens the progression of 
HIV disease. The Committee also encourages the NHLBI to fund 
transfusion medicine initiatives to understand the basic 
aspects of immune responses following blood transfusion.
    Cooley's anemia.--The Committee continues to support the 
research efforts of NHLBI in the area of Cooley's anemia. 
Hepatitis is a major concern of Cooley's anemia patients and 
the problem warrants further research into hepatitis C and 
other strains aimed at developing vaccines. The Committee has 
learned that hormonal therapy as a medical treatment is 
becoming increasingly necessary for patients who are now living 
through their teens. The Committee encourages the Institute 
convene a workshop of experts in the field to develop plans for 
research into the long term effects of this therapy.
    -National Center on Sleep Disorders Research.--The 
Committee notes the continued development of the National 
Center on Sleep Disorders Research and the expansion of the 
Center's research portfolio. The Committee is pleased with 
demonstrated progress in the sleep disorders education 
campaign. The Committee recommends continued development of a 
plan for scientific collaboration among the National Center and 
other NIH Institutes through the implementation of the recently 
approved National Sleep Disorders Research Plan. The Committee 
encourages continued development of the National Center's 
research portfolio as outlined in the National Sleep Disorders 
Research Plan.
    Sarcoidosis.--Sarcoidosis is an inflammatory disease that 
can lead to scarring of the lung. Although the disease has been 
recognized for over 100 years, information on its incidence, 
prevalence, risk factors, and natural history remains limited. 
Geographic and racial variations in the occurrence of 
sarcoidosis suggests that it may be caused by environmental 
factors or a combination of environmental factors and 
susceptible host. The Committee, therefore, encourages the 
Institute to explore environmental and genetic causes of 
sarcoidosis as an essential step toward identifying risk 
factors and improving treatment and prevention of the disease.
    -Primary pulmonary hypertension.--Primary pulmonary 
hypertension (PPH) is a progressive, fatal disease affecting 
predominantly women--of all ages and races--and involves deadly 
deterioration of the heart and lungs. The Committee encourages 
NHLBI to enhance its funding of PPH basic research, gene 
therapy, and clinical trials of promising pharmaceuticals.
    -Clinical research.--An impressive array of scientific 
opportunities in the areas of fibrotic lung disease, asthma, 
and lung development can be expected to lead to translation of 
basic science into clinical applications. The Committee 
recognizes the NHLBI has made significant contributions to 
clinical research through its Specialized Centers of Research 
programs. The Committee, therefore, encourages the NHLBI to 
continue its work in these areas.
    -Comprehensive research.--In its report accompanying the 
1995 appropriations bill, the Committee encouraged the Director 
of the NHLBI to consider establishing a comprehensive research 
and demonstration center for heart, blood vessel, lung and 
blood diseases. The Committee requests an update from the 
Director regarding the status of this initiative.
    -Lung reduction surgery.--The Committee is pleased that 
NHLBI, in conjunction with the Health Care Financing 
Administration (HCFA), intends to conduct a clinical trial 
testing the efficacy of various lung reduction surgical 
procedures. The Committee encourages NHLBI to work with HCFA to 
ensure that the trial includes the full array of surgical 
options so that HCFA will have full and complete information on 
which to base its reimbursement decisions. Some of the surgical 
options the Committee urges the NHLBI to consider evaluating in 
the trial include unilateral procedures, bilateral procedures, 
open-chest procedures, and procedures involving video-assisted 
thorascopic and low-energy contact laser technology and other 
laser technologies. The Committee further urges the NHLBI to 
review the number of patients involved in the trial. 
Approximately 5,000 individuals received this surgical 
procedure in 1995, but the trial, as currently designed, 
contemplates this surgery for only 1,500 individuals over a 
period of seven years. Further, the Committee urges NIH to 
consider conducting these trials at sites which have already 
demonstrated considerable expertise in performing lung 
reduction surgery.

                 National Institute of Dental Research

    The bill includes $195,596,000 for the National Institute 
of Dental Research (NIDR), an increase of $8,815,000 over the 
amount requested and $12,673,000 over the comparable 1996 
appropriation.
    -Mission.--The NIDR conducts and supports research and 
research training on the normal development, maintenance, and 
aging of the oral and craniofacial tissues and the disorders 
affecting these tissues, including the effects of systemic 
diseases and disease treatments. Major areas studied include 
craniofacial birth defects, periodontal diseases, dental 
caries, bone and joint diseases, chronic pain conditions, oral 
cancers, autoimmune disorders, infectious diseases, 
epidemiology, and biomaterials research.

    National Institute of Diabetes and Digestive and Kidney Diseases

    The bill includes $819,224,000 for the National Institute 
of Diabetes and Digestive and Kidney Diseases (NIDDK), an 
increase of $34,301,000 over the amount requested and 
$48,642,000 over the comparable FY 1996 appropriation.
    -Mission.--The NIDDK supports research in three major 
disease categories: diabetes, endocrinology, and metabolic 
diseases; digestive diseases and nutrition; and kidney, 
urologic, and hematologic diseases. The NIDDK supports a 
coordinated program of fundamental and clinical research and 
demonstration projects relating to the causes, prevention, 
diagnosis, and treatment of diseases within these categories. 
The Institute also supports efforts to transfer the knowledge 
gained from its research program to health professionals, 
patients, and the general public.
    Diabetes.--Diabetes is a leading cause of death by disease 
in America, contributing to the deaths of more than 160,000 
annually. The number of Americans with diabetes has increased 
by 50 percent since 1983 and has tripled since 1958. The 16 
million Americans with diabetes are at great risk of developing 
devastating complications, including blindness, kidney disease, 
heart disease, and the need for amputations. Diabetes 
disproportionately affects minority populations, especially 
African Americans, Hispanics and Native Americans, who are at 
greater risk for developing this disease and its complications. 
Given the enormous economic and personal costs of diabetes, the 
Committee considers diabetes research a top priority and urges 
the Directors of NIH and NIDDK to review the growth rate in 
diabetes research funding over the past few years to assess 
whether this field has received appropriate support relative to 
other areas in the NIH portfolio. The Directors should be 
prepared to discuss their finding in the fiscal year 1998 
appropriations hearings.
    Since certain preventable risk factors, such as diet and 
obesity, have already been identified for diabetes, the 
Committee encourages NIDDK to focus on prevention through 
education programs, including collaborative efforts with the 
affected Institutes.
    The Committee is also pleased to learn of the progress 
being made in the area of genetic research. The NIDDK is 
encouraged to pursue this area since it holds great promise for 
gaining a better understanding of this disease and its 
complications.
    Prostate cancer.--The Committee is encouraged by the 
NIDDK's prostate cancer activities and encourages the Institute 
to continue and to strengthen its basic and clinical research, 
and outreach and public education in prostate cancer.
    End stage renal disease.--The number of patients in the 
United States with end stage renal disease (ESRD) now exceeds 
300,000, and the number increases by eight percent each year. 
Understanding and preventing ESRD is essential to controlling 
health care costs, particularly in Medicare and Medicaid. 
Recent advances in basic and clinical research have led to 
treatments which slow the progression of kidney disease. 
Therefore, the Committee encourages the NIDDK to continue its 
research programs in clinical and basic sciences to further 
elucidate the mechanisms which cause progressive kidney disease 
and to define new ways to treat or prevent these diseases, 
including the major kidney diseases which begin in, or cause 
kidney failure in, children.
    Polycystic kidney disease.--Polycystic kidney disease (PKD) 
affects some 600,000 Americans and is the third leading cause 
of kidney failure. Great progress has recently been made toward 
an effective treatment and eventual cure of PKD. Investigators 
have identified and cloned the gene responsible for 90 percent 
of PKD cases. The gene has now been fully sequenced, and the 
protein it encodes has been isolated. The Committee encourages 
the Institute to redouble its efforts to support PKD research 
in order to capitalize on these recent scientific advances.
    Urological diseases.--The Committee is pleased with the 
growth of research on urological disease. The Committee 
encourages NIDDK to continue its commitment to research in the 
basic science of the prostate, including growth factors and 
their influence on prostate cancer and benign prostatic 
hypertrophy, and prostatitis. The Committee has heard testimony 
on prostatitis and its resulting disabilities and encourages 
NIDDK to enhance its research in this area.
    Interstitial cystitis.--The Committee has a strong interest 
in research in interstitial cystitis (IC), a very painful and 
disabling bladder disease. It is pleased that in 1996 the NIDDK 
funded individual research grants focusing on IC, and is also 
encouraged that the IC database continues to progress and 
increase the understanding of the disease. The Committee 
supports further IC research as well as further development of 
the National IC Database. The Committee also requests that the 
NIH continue to address and resolve the problem of the lack of 
urological expertise on some of the NIH study sections which 
review urology grants.
    Digestive diseases.--Diseases of the digestive system 
continue to affect more than one-half of all Americans at some 
time in their lives, and account for billions of dollars in 
economic losses, related health care costs, lost wages, and 
reduced productivity. Serious disorders such as colon cancer, 
inflammatory bowel disease, cirrhosis of the liver, irritable 
bowel syndrome, and celiac disease contribute to a significant 
toll in human suffering, chronic illness, and mortality. 
Further progress is being made to enlist liver directed gene 
therapy to treat liver metabolic disease, and identify the 
genes responsible for Wilson's Disease and hemochromatosis. The 
Committee encourages the NIDDK to continue its efforts to 
develop the appropriate balance between conducting basic 
studies on digestive diseases and bringing this critical 
knowledge gained to the bedside to improve patient care.
    The Committee commends the NIDDK for joining in a trans-
institute initiative for further study of H.pylori infection 
and its relationship to peptic ulcer disease and gastric 
cancer. Further research in this area offers exciting 
possibilities to eradicate peptic ulcer disease and improve 
understanding of gastric cancer, particularly in minority 
populations.
    H. pylori eradication.--25 million Americans suffer from 
ulcer disease, requiring more than one million hospitalizations 
and costing our nation more than $2 billion annually. The 
Committee is aware of the 1994 consensus development conference 
which concluded that the bacterium Helobacter Pylori causes 
most ulcers, not stress or diet as previously believed, and 
that most ulcers can be cost-effectively cured by eradicating 
H. pylori. The Committee is concerned, however, about whether 
the H. pylori discovery has been widely disseminated and is 
actually yielding cost-saving changes in medical practice. 
Therefore, the Committee encourages the NIDDK to initiate a 
public education campaign to foster more effective 
communication between consumers and physicians on H. pylori and 
its link to ulcer disease. The NIDDK should collaborate in this 
effort with the NCI, the National Institute on Allergy and 
Infectious Diseases, the National Institute on Child Health and 
Human Development, and the NIH Office of Research on Minority 
Health, as well as the Centers for Disease Control and 
Prevention. In conjunction with these collaborating agencies 
and the extramural digestive diseases community, and taking 
into account the findings of the soon-to-be-released H. pylori 
study of the NIH Office of Medical Applications of Research, 
the NIDDK should determine the appropriate scope, target 
audience, and financing mechanisms for a public education 
campaign. The Committee requests a report within 120 days on 
NIDDK's plans to conduct such an effort and the appropriate 
design of the campaign.
    Cooley's anemia.--The Committee has long supported research 
in the area of Cooley's anemia. Due to the red blood cell 
transfusions that patients must undergo, iron builds up in the 
major organs. The effective removal of this iron by chelating 
drugs requires an assessment of iron levels in the patient, but 
therapy is impeded by the lack of accurate non-invasive tests 
for iron overload. Therefore the Committee encourages NIDDK to 
move forward in an effort to develop an accurate, non-invasive 
test for iron overload that can be utilized for Cooley's anemia 
patients, as well as for patients with conditions such as 
hemachromatosis and iron deficiency anemia. The Committee also 
supports research aimed at developing an oral iron chelator.
    Nutrition research.--The Committee is encouraged by the 
leadership of NIDDK in the nutrition and obesity research areas 
and hopes that the Institute will continue its work on 
pharmacology and obesity management. The Committee was 
encouraged by the NIDDK Co-sponsorship of a research conference 
on nutrition support and encourages NIDDK to take steps to 
implement the research agenda developed by the conference, 
including the use of nutrient pharmacology and the role of 
anabolic treatments for wasting diseases such as AIDS and 
cancer.
    Liver disease.--The Committee received testimony on the 
impact of liver diseases affecting 25 million people resulting 
in over $9 billion in costs to the nation. The Committee is 
aware that last year the CDC increased its estimate of the 
number of people infected with hepatitis C by 11%, now 
estimated to total 3.9 million people, and is therefore pleased 
that the NIDDK and NIAID will sponsor a consensus conference on 
chronic hepatitis C in 1997.
    The Committee urges NIDDK to focus on research to prevent, 
treat and cure liver diseases and suggests that the Institute 
consider convening a meeting to develop a well focused and 
comprehensive research program. The Committee urges NIDDK to 
include in this effort all Institutes now conducting liver 
disease research.
    Cystic fibrosis.--The Committee is encouraged by the 
progress being made to develop gene therapy for cystic fibrosis 
(CF). The knowledge learned from these first studies has 
provided scientists with important information to pave the way 
to curing fatal illnesses. The Committee applauds both the 
NIDDK and the NHLBI for announcing the recent research program 
initiative in CF. The strong response to this initiative 
reflects the wealth of scientific opportunities that are 
available in CF research.

        National Institute of Neurological Disorders and Stroke

    The bill includes $725,478,000 for the National Institute 
of Neurological Disorders and Stroke (NINDS), an increase of 
$30,380,000 over the amount requested and $44,576,000 over the 
comparable 1996 appropriation.
    Mission.--The NINDS supports and conducts basic and 
clinical neurological research and research training to 
increase understanding of the brain and improve the prevention 
and treatment of neurological and neuromuscular disorders. The 
NINDS mission encompasses over 600 disorders, including stroke; 
head and spinal cord injury; epilepsy; multiple sclerosis; and 
neurodegenerative disorders such as Parkinson's disease.
    -Stroke.--Stroke remains the third leading cause of death 
in the U.S., the leading cause of serious disability and a 
major contributor to late-life dementia. Striking about 500,000 
Americans each year, stroke kills about 150,000 of its victims 
and leaves most survivors permanently disabled. The Committee 
encourages the Institute to enhance stroke research activities, 
to strengthen its stroke education program, and to continue 
innovative approaches to improve stroke diagnosis, treatment, 
rehabilitation and prevention identified by the National 
Advisory Neurological Disorders Stroke Council in ``Progress 
and Promises 1992: Status Report of the Decade of the Brain.''
    Parkinson's disease.--The Committee is acutely aware of the 
enormous economic cost and toll in human suffering resulting 
from Parkinson's disease and considers research in this area a 
very high priority. As a result, the Committee was very 
supportive of the NINDS 1995 Parkinson's research planning 
workshop. The Committee now urges the NIH to develop, implement 
and fund the Parkinson's research agenda as recommended in the 
1995 research planning workshop, particularly in the areas of 
neuroprotective strategies, neural transplantation, and neural 
growth factors. While the Committee is aware of the importance 
of basic research in making progress against many of the 
neurodegenerative disorders, the Committee urges NINDS to place 
substantial emphasis on therapeutic research opportunities as 
well.
    Spinal cord injury.--The Committee considers research into 
spinal cord injury a very high priority and urges NINDS to 
strengthen its portfolio in this area, as well as to stimulate 
the field to encourage a broad range of investigators 
interested in pursuing spinal cord injury research. The 
Committee understands that the following research areas are 
promising avenues to pursue: understanding the signals that 
control the survival, development, guidance and differentiation 
of neurons; devising methods to enhance the survival of neurons 
through techniques involving medications, implantation of 
cells, and genetic activity; and developing neuroprosthetic 
devices to assist people with motor and sensory dysfunction.
    Neurofibromatosis.--Important advances in research on 
neurofibromatosis (NF) have recently occurred, including 
discovery of the NF1 and NF2 genes, developing animal models 
and a diagnostic blood test and pre-natal testing for NF. NF 
also offers the potential for significant advances in broader 
areas, like tumor suppressor genes, and for other disorders 
such as many of the most common cancers, brain tumors, and 
learning disabilities. Accordingly, the Committee encourages 
the NINDS to continue to pursue an aggressive program in basic 
and clinical research in NF and to employ novel approaches in 
the clinical development of NF research, including, as the 
Institute determines appropriate, requests for applications; 
the National Cooperative Drug Discovery Group program; and 
Small Business Innovation Research grants. The Committee 
requests that the NINDS be prepared to report on the status of 
its NF research program at its hearings on the fiscal year 1998 
budget.
    Lou Gehrig's disease.--Amytrophic lateral sclerosis (ALS), 
commonly referred to as Lou Gehrig's disease, is a progressive, 
fatal neurological disease for which no cure exists. The first 
real clue to a cause of the disease recently occurred with the 
identification of a gene defect linked to some cases of 
familial ALS. Recent clinical research resulted in the first 
compound to alter the course of the disease. Additional 
research is needed to capitalize on these recent developments, 
which may also lead to breakthroughs in other neurological 
disorders. To sustain this momentum, the Committee encourages 
NINDS to enhance its support of brain research relevant to ALS.
    Multiple sclerosis.--The Committee urges NINDS to continue 
to conduct a vigorous research program to understand and treat 
multiple sclerosis (MS). Research seems particularly promising 
in the areas of basic and clinical studies to examine the 
changes that occur in the brain affected by MS and to evaluate 
immune-modulating approaches to treatment and hormonal 
influences on autoimmune disease.
    Batten's disease.--In the past year, the gene defects for 
the infantile and juvenile forms of Batten's disease have been 
discovered. These findings will lead to new research 
approaches, and the Committee encourages the NINDS to put 
renewed emphasis on Batten's disease research to take advantage 
of these opportunities.
    Gaucher's disease.--The Committee remains interested in 
research pertaining to Gaucher's disease and encourages the 
Institute to continue to place priority on promising research 
opportunities in this area.
    Dystonia.--The Committee continues to be pleased with NINDS 
efforts to encourage extramural initiatives in dystonia 
research, including a recent NINDS sponsored workshop on 
dystonia research opportunities. The Committee encourages NINDS 
to work closely with other organizations having an interest in 
dystonia research to collaborate on joint research programs 
encouraging investigators to study dystonia.
    Behavioral research.--The Committee understands that NINDS 
supports a range of basic and applied behavioral research 
throughout its extramural divisions. The Committee encourages 
the Institute to continue its efforts to better understand the 
role of behavior in preventing and treating diseases and 
injuries of the brain.

         National Institute of Allergy and Infectious Diseases

    The bill includes $1,256,149,000 for the National Institute 
of Allergy and Infectious Diseases (NIAID), an increase of 
$47,419,000 over the amount requested and $87,666,000 over the 
comparable 1996 appropriation.
    Mission.--The NIAID supports and conducts basic and 
clinical research and research training programs in infectious 
diseases, including AIDS, and diseases caused by, or associated 
with, disorders of the immune system. The NIAID develops new 
and improved vaccines and supporting research on acquired 
immunodeficiency syndrome, tuberculosis, sexually transmitted 
diseases, and tropical diseases.
    Asthma.--Asthma continues to take an enormous toll on the 
nation costing an estimated $4.5 billion in direct medical 
costs. Children, African Americans, and Hispanics suffer 
disproportionately from asthma. In fact, the death rate from 
asthma in African Americans between the ages of 15 and 24 
increased 129 percent between 1980 and 1993. The Committee 
urges the NIAID to continue to make minority and children-
related asthma research a high priority, and requests the 
Director to provide an update on these efforts, and the 
Institute's national cooperative inner-city asthma study, at 
next year's appropriations hearings.
    Tuberculosis.--NIAID's support for tuberculosis research is 
essential in developing improved diagnostic tests and 
treatments in response to the reemergence of TB in the United 
States. NIAID supported researchers have begun to understand 
multi-drug resistant tuberculosis and hope to develop methods 
to quickly determine which drug therapy is appropriate for 
multi-drug resistant strains, so a patient can begin an 
appropriate treatment therapy immediately, thus reducing the 
risk of transmitting the disease to others. The Committee 
encourages further work in this area.
    Liver disease.--The Committee received testimony indicating 
that liver diseases affects 25 million Americans and that last 
year the CDC revised its estimate of the number of people 
infected with hepatitis C by 11% or from 3.5 to 3.9 million 
people. The Committee is therefore pleased that the NIAID and 
the NIDDK will sponsor a consensus development conference on 
chronic hepatitis C in 1997 and encourages the involvement of 
other NIH institutes, as appropriate. The Committee encourages 
NIDDK to include in its collaborative liver disease research 
the Office of Alternative Medicine, particularly with regard to 
liver regeneration and return of function.
    Hemophilia.--The Committee is pleased with NIAID efforts to 
maximize funding support of the HIV/AIDS clinical trials for 
persons with hemophilia through the treatment centers network 
and expects that this program will continue to provide access 
to the newly available drugs including protease inhibitors.
    Cervical cancer.--A recent NIH consensus conference 
documented the link between cervical cancer and the sexually 
transmitted human papillomavirus (HPV). It has been estimated 
that over 90% of cervical cancer cases result from this 
infection. The Committee encourages the National Cancer 
Institute and the NIAID to collaborate in sponsoring basic and 
clinical research on human papillomavirus diagnosis, screening 
and prevention, and the identification of women at high risk of 
cervical cancer.
    Microbicides.--The Committee acknowledges the progress that 
NIAID and the National Institute of Child Health and Human 
Development have made in funding research on microbicides for 
STD/HIV prevention. Of note are the program projects for 
topical microbicide research and the research on vaginal 
immunology and physiology. The Committee is pleased that a 
number of clinical trials are in progress or planned to 
evaluate safety and efficacy of existing spermicides and new 
topical microbicides. The Committee encourages NIAID to 
continue its commitment to funding the major areas of 
microbicide research, including basic research, product 
development, clinical evaluation, and behavioral research
    Women's interagency HIV study.--The Committee applauds the 
speed with which this cohort was enrolled and urges sustained 
funding for this study so that women can be followed 
prospectively to obtain the information critical to treatment 
and prevention efforts. The Committee believes that it is 
important to maintain geographical representation and to 
continue the study's broad scope in addressing a variety of 
women's health issues.
    H. pylori.--The Committee commends the Office of Research 
on Minority Health, NIDDK and NIAID for joining in a trans-
institute initiative for further study of H. pylori infection 
and its relationship to peptic ulcer disease and gastric 
cancer. Further research in this area offers exciting 
possibilities to eradicate peptic ulcer disease and improve 
understanding of gastric cancer, particularly in minority 
populations.
    Primary immune deficiency diseases.--The Committee 
recognizes that more than 70 primary immune deficiency diseases 
have been identified to date, with 500,000 cases diagnosed and 
estimates of another 500,000 undiagnosed. These diseases, in 
which the body is unable to fight off infections, strike most 
severely at children, many of whom do not survive beyond their 
teens or early 20s. The Committee is encouraged to learn that 
NIAID has entered into a collaborative agreement with a private 
foundation to support gene-transfer research grants to isolate 
and characterize the defective genes that cause all of these 
diseases and to develop techniques to correct the defects. The 
Committee encourages NIAID to maintain its focus on these 
devastating childhood diseases and supports its innovative 
approach to funding this research.
    Fanconi anemia.--Fanconi anemia is a fatal, inherited 
genetic disorder that impairs the ability of the body's DNA to 
repair itself. The most common and life-threatening 
manifestation of this disease is a failure of the components of 
the blood--the body cannot successfully combat infection, 
fatigue or spontaneous hemorrhage or bleeding. The Committee is 
pleased to hear of the success of umbilical cord transplants in 
helping infants with Fanconi anemia. The Committee encourages 
the Institute to pursue additional research opportunities into 
this disorder.
    Chronic fatigue and immune dysfunction syndrome.--The 
Committee encourages NIAID to support extramural grants focused 
on investigations which seek to identify the etiological 
agent(s) and markers for and the pathophysiology of chronic 
fatigue and immune dysfunction syndrome (CFIDS).

             national institute of general medical sciences

    The bill includes $1,003,722,000 for the National Institute 
of General Medical Sciences (NIGMS), an increase of $40,099,000 
over the amount requested and $56,826,000 over the comparable 
1996 appropriation.
    Mission.--The NIGMS supports research and research training 
in the basic biomedical sciences. Institute grantees, working 
in such fields a cell biology, biophysics, genetics, 
developmental biology, pharmacology, physiology, and biological 
chemistry, study normal biological processes to better 
understand what goes wrong when disease occurs. In this way, 
NIGMS supports the new knowledge, theories, and technologies 
that can then be applied to the disease-targeted studies 
supported by other NIH components. NIGMS-supported basic 
research advances also find applications in the biotechnology 
and pharmaceutical industries. The Institute's training 
programs help provide the scientists needed by industry and 
academia and have a special focus on increasing the number of 
minority scientists through programs such as Minority Access to 
Research Careers (MARC) and Minority Biomedical Research 
Support (MBRS). The Committee expects NIGMS to continue to 
support these training programs.

        national institute of child health and human development

    The bill includes $631,989,000 for the National Institute 
of Child Health and Human Development (NICHD), an increase of 
$28,339,000 over the amount requested and $37,442,000 over the 
comparable 1996 appropriation.
    Mission.--The NICHD conducts and supports laboratory and 
clinical research on the reproductive, developmental, and 
behavioral processes that determine and maintain the health and 
well-being of children, adults, families and populations. In 
addition, research in medical rehabilitation is supported.
    Sudden infant death syndrome.--The NICHD is to be commended 
for its aggressive efforts to reduce sudden infant death 
syndrome (SIDS) deaths through the national ``Back to Sleep'' 
campaign. This education campaign has played a major role in 
the 4 percent decline in infant mortality in 1993-1994, to an 
all-time low of 7.9 per thousand live births. To continue this 
progress, the Committee encourages NICHD to strongly support 
research related to the second SIDS Five Year Research Plan. 
This plan, developed in collaboration with the SIDS scientific 
and advocacy community, has provided guidance, structure, and 
support to the NICHD SIDS research program.
    Microbicides.--The Committee acknowledges the progress that 
NIAID and NICHD have made in funding research on microbicides 
for STD/HIV prevention. Of note are the program projects for 
topical microbicide research and the research on vaginal 
immunology and physiology. The Committee is pleased that a 
number of clinical trials are in progress or planned to 
evaluate safety and efficacy of existing spermicides and new 
topical microbicides. The Committee encourages NICHD to 
continue its commitment to funding the major areas of 
microbicide research, including basic research, product 
development, clinical evaluation, and behavioral research.
    National Center of Medical Rehabilitation Research 
(NCMRR).--NCMRR is taking advantage of remarkable advances in 
bioengineering and applying them to the development of new, 
improved orthotic and prosthetic devices. These and other 
assistive devices enhance the mobility, independence, and 
quality of life of persons with physical disabilities. The 
Committee recognizes the importance of assistive technology 
research and development in the lives of people with physical 
disabilities and encourages the NICHD to enhance its use of the 
small business innovation research (SBIR) grant mechanism in 
this area.
    -Rett syndrome.--The Committee continues to be concerned 
about Rett syndrome, and the lack of a known cause or cure. 
Study of this syndrome may have important applications to 
autism, Alzheimer's and Parkinson's diseases. The Committee 
urges the Institute to continue to support further research on 
the causes of, biological markers for, and cures for Rett 
syndrome.
    -Autism.--Autism affects an estimated 400,000 Americans, 
making it the third most prevalent childhood disorder. The 
Committee is pleased that the NICHD, in cooperation with the 
National Institute of Mental Health, the NINDS, and the 
National Institute on Deafness and other Communication 
Disorders, has sponsored several activities to disseminate the 
findings and recommendations from the 1995 NIH consensus 
conference on autism. The Committee is pleased that NIH has 
chosen to issue an autism Request For Applications (RFA) to 
carry out the research recommendations of the conference, which 
is expected to stimulate a heightened interest in research on 
autism. The Committee looks forward to discussing the RFA 
initiative at next year's hearings.
    -Fanconi anemia.--Fanconi anemia is a fatal, inherited 
genetic disorder in which patients manifest various congenital 
abnormalities and are predisposed to cancer. The most common 
and life-threatening manifestation of this disease is the 
development of a hematological malignancy. The Committee is 
pleased to hear of the success of umbilical cord transplants in 
helping infants with Fanconi anemia. The Committee encourages 
the Institute to pursue additional research opportunities into 
this disorder.
    -Primary immune deficiency diseases.--More than 70 primary 
immune deficiency diseases, in which the body is unable to 
fight off infections, have been identified to date. They strike 
most severely at children, many of whom do not survive beyond 
their teens or early 20s. Researchers believe that one million 
cases, half of which are currently undiagnosed, exist in the 
United States. The Committee is encouraged to learn that NICHD 
has entered into a collaborative effort with a private 
foundation to support a joint research initiative that will 
study the development and the genetic defects of immunity. This 
research into the molecular, biological and genetic mechanisms 
of the disease is intended to result in improved diagnostic, 
therapeutic, and preventive strategies that will benefit 
children suffering from these debilitating diseases. The 
Committee encourages NICHD to continue to move forward with 
this research and supports its innovative approach to funding.
    -H. pylori.--The Committee encourages the Institute to 
consider joining the trans-Institute research effort on H. 
pylori infection initiated by the NIDDK and the Office of 
Research on Minority Health to explore further the transmission 
of H. pylori in childhood and the pathogenesis of H. pylori 
infection in children.
    -Demographic research.--The Committee commends NICHD for 
its demographic research program. Recent initiatives have 
contributed to knowledge about the role of fathers in families, 
the effects of family change on children, the causes of out-of-
wedlock childbearing, and the determinants and consequences of 
immigration. The information derived from these studies and 
supported by NICHD is important to policymakers at all levels. 
The Committee encourages the Institute to continue to support 
demographic research and data.
    -Training.--As part of its effort to ensure the future 
supply of talented research personnel, the Committee encourages 
the NICHD to support an initiative such as B/START (Behavioral 
Science Track Awards for Rapid Transition), aimed at younger 
behavioral science researchers.

                         national eye institute

    The bill includes $333,131,000 for the National Eye 
Institute (NEI), an increase of $13,924,000 over the amount 
requested and $19,198,000 over the comparable 1996 
appropriation.
    -Mission.--The NEI conducts and supports basic and clinical 
research, research training, and other programs with respect to 
blinding eye diseases, visual disorders, mechanisms of visual 
function, preservation of sight, and the special health 
problems and needs of individuals who are visually-impaired or 
blind. In addition, the NEI is responsible for the 
dissemination of information, specifically public and 
professional education programs aimed at the prevention of 
blindness.
    -Macular degeneration.--Age-related macular degeneration is 
the leading cause of severe visual impairment and blindness in 
the U.S. The Institute has made great progress in this area 
through advances in cell and molecular biology. Additionally, 
genetics research and advances in the development of growth 
factors hold great promise for new treatments for this disease. 
The Institute is urged to encourage research in this area, and 
to be prepared to discuss the status of research in age-related 
macular degeneration and prospects for the future in next 
year's appropriations hearings.

          national institute of environmental health sciences

    The bill includes $308,258,000 for the National Institute 
of Environmental Health Science (NIEHS), an increase of 
$13,116,000 over the amount requested and $19,880,000 over the 
comparable 1996 appropriation.
    -Mission.--The NIEHS mission is to reduce the burden of 
environmentally related illness and dysfunction by 
understanding how environmental exposures affect health, how 
individuals differ in their susceptibility to these effects, 
and how these susceptibilities change over time. This mission 
is achieved through multidisciplinary biomedical research 
programs, prevention and intervention efforts, and 
communication strategies that encompass training, education, 
technology transfer, and community outreach.
    -Asthma.--Asthma is one of the most prevalent chronic 
diseases of children, yet neither the cause nor cure for this 
disease is close to discovery. The relationship between asthma 
and environmental factors is beginning to emerge as an 
important link in understanding this complex disorder. The 
Committee encourages the NIEHS to continue its leadership role 
in studying environmental aspects of asthma and to continue to 
forge scientific collaborations with NIAID and NHLBI on this 
important health problem. The Committee is aware of an 
unusually high incidence of asthma and other health problems 
among students of Public School 48 in the Hunts Point area of 
the South Bronx, New York, where there is a concentration of 
waste transfer and sewage treatment facilities. The Committee 
understands that the Director of the National Institute of 
Environmental Health Sciences has visited the area, met with 
members of the affected community, and suggested ways that 
NIEHS might work with state and local public health officials 
and researches to determine what environmental factors might be 
contributing to this asthma cluster. The Committee commends the 
NIEHS for its involvement and encourages the NIEHS to continue 
to support the community's efforts to identify and, if 
possible, mitigate any environmental causes of the Hunts Point 
asthma problem.
    -Parkinson's disease.--The Committee is pleased that the 
September 1995 workshop on the link between Parkinson's and 
other neurodegenerative disorders and the environment was well-
attended and productive. The Committee also notes that the 
report on the August 1995 NIH-wide Parkinson's research 
planning workshop concluded that the environment is likely to 
play a role in the cause of Parkinson's. As a result, the 
Committee encourages the NIEHS to increase its focus on the 
environmental link to Parkinson's, using the findings of its 
September 1995 workshop and the August 1995 research planning 
workshop as a guide.
    -Nanofabrication.--The Committee is interested in the 
promise for improving the detection, prevention and remediation 
of environmentally related illnesses by the incorporation of 
cell and molecular biology into techniques of nanofabrication--
which is the synthetic preparation of materials and devices 
with structural dimensions of approximately one-millionth of an 
inch--and molecular self-assembly. The Committee encourages the 
Institute to continue to advance these technologies, especially 
in partnership with those who have demonstrated an extensive 
record of work with these technologies.
    -Minority populations.--There has been an increased 
recognition in the scientific and public health community that 
minority and disadvantaged populations are disproportionately 
subjected to a variety of health hazards, including air 
pollution. Its relationship to asthma and other pulmonary 
disorders is beginning to be well documented. To help examine 
these problems, the Committee encourages the NIEHS to consider 
convening a national scientific summit on air quality issues 
faced by the nation's urban communities, working closely with 
the public health and scientific community.
    -National Toxicology Program.--The National Toxicology 
Program (NTP) was established to provide information to health, 
regulatory and research agencies, and the general public about 
potentially toxic chemicals, as well as to strengthen the 
science base of toxicology. In recent years, the NTP has made 
great strides toward incorporating more information on dose-
response relationships and mechanisms that are critical for 
improved risk assessment. Risk assessment is the cornerstone of 
environmental decision making and should be firmly based on 
sound science. The Committee encourages the NIEHS to continue 
to pursue research into improved risk assessment methodologies.
    Environmental justice.--The Committee is pleased by the 
progress that the NIH has made with regard to environmental 
justice. There has been an increased recognition in the 
scientific and public health community that minority and 
disadvantaged populations are disproportionately subjected to a 
variety of environmental health hazards. The relationship 
between environmental justice and cancer is beginning to be 
documented. To help examine these problems, and to further 
research advances in this area the NIEHS and NCI are encouraged 
to work in a collaborative effort on this important public 
health problem, in an effort to address environmental justice 
issues faced by the Nation's disadvantaged inner city and rural 
communities. The Committee requests that the NIEHS and NCI be 
prepared to report on the implementation of this collaborative 
initiative at the fiscal year 1998 budget hearings.
    -Synthetic chemicals.--Recent concerns have been raised 
over the effect of synthetic chemicals on human health and 
reproduction. Some research has indicated that man-made 
chemicals mimic human hormones and interfere with the process 
of human development. While most of this research has focused 
on animals, there is emerging evidence suggesting a link to 
humans. The Committee recognizes that this research is still in 
its preliminary stages and encourages the NIEHS to further 
explore this field.
    -Women's health.--The Committee requests the NIEHS to 
submit a report summarizing the body of scientific knowledge on 
the effects that environmental factors have on women's health. 
The report should include descriptions of the known effects of 
environmental factors on diseases such as cancer, on immune, 
reproductive, neurobehavioral, and endocrine system 
dysfunction, on early development, and on target organs. The 
report should also suggest categories of research that should 
receive priority and identify the areas that have received 
insufficient study.
    -Toxic tides.--Toxic red tides produce serious detrimental 
effects in humans, including several different types of seafood 
poisoning, profound respiratory irritation, and general 
prolonged neurological malaise. The Committee encourages the 
NIEHS to support research to characterize the human disease 
states, the molecular mechanisms responsible for intoxication, 
and the therapies and diagnostics needed to cure and ultimately 
prevent such illnesses. The Committee encourages NIEHS to 
cooperate with the National Oceanic and Atmospheric 
Administration in developing a coordinated effort to address 
the red tide problem.

                      national institute on aging

    The bill includes $484,375,000 for the National Institute 
on Aging (NIA), an increase of $21,010,000 over the amount 
requested and $30,834,000 over the comparable 1996 
appropriation.
    -Mission.--The NIA conducts biomedical, behavioral, and 
social research related to the aging process to prevent disease 
and other problems of the aged, and to maintain the health and 
independence of older Americans. Alzheimer's disease is a 
particular focus of the NIA.
    Alzheimer's disease.--Alzheimer's disease will in the next 
century create a devastating public health crisis, in terms of 
burden on family caregivers and the health care system, and the 
overwhelming fiscal demands on State and Federal budgets. The 
disease already afflicts 4 million persons and will claim 14 
million in the next century. As a result, there is an urgent 
need to accelerate research into the molecular basis of 
Alzheimer's, the delay of onset of the disease, and genetically 
targeted therapeutic treatments. The Committee strongly urges 
the Institute to enrich its support of Alzheimer's disease 
research and to utilize a variety of mechanisms, including 
greater reliance on centers as appropriate, to maximize the 
productivity of its research.
    The prevalence of Alzheimer's disease among women is 
roughly twice that of men. The Committee is aware of recent 
research suggesting that estrogen positively impacts 
concentrations of the Alzheimer's amyloid molecule and that 
estrogen replacement therapy may protect against the onset of 
Alzheimer's disease. The Committee strongly encourages the 
Institute to support additional research opportunities in these 
promising areas of research.
    -Cardiovascular aging research.--Heart attack, congestive 
heart failure, stroke, and other cardiovascular diseases remain 
top killers of older men and women and a main cause of 
disability. The number of deaths from cardiovascular diseases 
rises significantly with increasing age--as does the number of 
Americans suffering from these diseases. The Committee 
encourages the Institute to support innovative extramural and 
intramural cardiovascular research.
    -Demography.--The Committee is aware of the NIA's efforts 
in the areas of demography and population epidemiology, 
minority aging, women and aging, and the burden of care of 
Alzheimer's disease. The Committee encourages the NIA to 
continue its research in these areas, as well as providing the 
necessary training to prepare individuals to conduct such 
research.
    -Training.--As part of its effort to ensure the future 
supply of highly trained research personnel, the Committee 
encourages NIA to consider supporting an initiative such as B/
START (Behavioral Science Track Awards for Rapid Transition), 
aimed at younger behavioral science researchers.

 National Institute of Arthritis and Musculoskeletal and Skin Diseases

    The bill includes $257,637,000 for the National Institute 
of Arthritis and Musculoskeletal and Skin Diseases (NIAMS), an 
increase of $10,496,000 over the amount requested and 
$14,982,000 over the comparable 1996 appropriation.
    -Mission.--The NIAMS conducts and supports basic and 
clinical research and research training, and the dissemination 
of health information on the more than 100 forms of arthritis; 
osteoporosis and other bone diseases; muscle biology and muscle 
diseases; orthopaedic disorders, such as back pain and sports 
injuries; and numerous skin diseases.
    -Lupus.--Lupus is a serious autoimmune disease that mainly 
affects young women. African American women are three times 
more likely to have the disease than white women. The Committee 
is encouraged by the NIAMS's research progress in this area, 
and urges the Institute to enhance research aimed at 
identifying the genes and mechanisms which lead to the onset of 
lupus and organ injury associated with this disease, and at 
understanding the factors associated with the high prevalence 
of lupus in minorities. The development of new and innovative 
treatment is also of great interest to the Committee.
    -Fibromyalgia syndrome.--Fibromyalgia syndrome (FMS) is a 
clinically diagnosed disorder which is poorly understood and 
difficult to treat. It is a syndrome of debilitating, chronic, 
widespread pain, fatigue, sleep disturbance and other 
associated disorders. The Committee commends NIAMS for its 
collaborative role in helping to set up the expanded Special 
Emphasis Panel (SEP) for chronic fatigue syndrome (CFS) so that 
it will also include expert reviewers in the overlapping field 
of FMS. The Committee also commends NIAMS for taking the 
initiative to host a second scientific workshop on this 
disorder. Now that an official grant review process is in 
place, the Committee urges NIAMS to aggressively solicit 
researchers in the field of FMS and related pain disorders to 
submit applications to the newly expanded CFS SEP. 
Collaboration with other Institutes is recommended to help fund 
research on FMS and related disorders.
    -Musculoskeletal tumors.--The Institute is encouraged to 
focus research in the area of musculoskeletal tumors, 
particularly in the development of allografts and other tissues 
as substitutes for removed limbs destroyed by tumors or lost as 
a consequence of trauma.
    -Repetitive motion injuries.--The Committee has heard 
testimony that an inadequate science base exists to address the 
problem of treatment of repetitive motion injuries. These types 
of injuries have significantly increased. Therefore, the 
Institute is encouraged to place a high priority on repetitive 
motion injuries research and to move forward with the 
recommendations made at the workshop held in 1994.
    -Trauma.--The Committee has learned that injuries cost our 
nation almost $1.5 billion per year in damage, death, 
disability, and loss of productivity and that musculoskeletal 
trauma is by far the most common type of injury requiring 
treatment. Enhanced research in this area will allow for an 
increased understanding of injuries to muscles, tendons, and 
ligaments and will lead to the development of new methodologies 
to aid in the healing and repair of bone and tissue damaged 
from injury.
    -Alopecia areata.--Alopecia areata is a disease which 
impacts more than four million Americans, many of whom are 
children. The Committee is interested in receiving a report 
from NIAMS about the strategies they are using to find a cure 
for this disease.
    Scleroderma.--An estimated 500,000 Americans are affected 
by scleroderma, a disease that contracts and toughens the skin, 
disfiguring the victim, restricting movement and in some cases 
leading to a fatal hardening of vital organs. The Committee 
encourages NIAMS to accelerate its research into scleroderma. 
The Committee would also like to learn the Institute's views of 
the desirability of (1) establishing a national scleroderma 
patient and tissue registry and (2) conducting an international 
scleroderma research symposium.

   National Institute on Deafness and Other Communication Disorders-

    The bill includes $189,243,000 for the National Institute 
on Deafness and Other Communication Disorders (NIDCD), an 
increase of $8,427,000 over the amount requested and 
$12,860,000 over the comparable 1996 appropriation.-
    Mission.--The NIDCD funds and conducts research in human 
communication. Included in its program areas are research and 
research training in the normal and disordered mechanisms of 
hearing, balance, smell, taste, voice, speech and language. The 
Institute addresses special biomedical and behavioral problems 
associated with people who have communication impairments or 
disorders. In addition, the NIDCD is actively involved in 
health promotion and disease prevention, and supports efforts 
to create devices that substitute for lost and impaired sensory 
and communication functions.-
    Dysphonia.--Spasmodic dysphonia is a voice disorder that 
affects women predominantly and usually renders a person 
difficult to understand because of uncontrolled voice and pitch 
breaks. The Committee is pleased with NIDCD intramural and 
extramural study into spasmodic dysphonia and encourages 
continued aggressive efforts in this promising scientific area.

                 National Institute of Nursing Research

    The bill includes $59,715,000 for the National Institute of 
Nursing Research (NINR), an increase of $2,749,000 over the 
amount requested and $3,901,000 over the comparable 1996 
appropriation.
    Mission.--The NINR supports and conducts scientific 
research and research training to reduce the burden of illness 
and disability; improve health-related quality of life; and 
establish better approaches to promote health and prevent 
disease.

           National Institute on Alcohol Abuse and Alcoholism

    The bill includes $212,079,000 for the National Institute 
on Alcohol Abuse and Alcoholism (NIAAA), an increase of 
$9,465,000 over the amount requested and $13,678,000 over the 
comparable 1996 appropriation.
    Mission.--The NIAAA supports research to generate new 
knowledge to answer crucial questions about why people drink; 
why some individuals are vulnerable to alcohol dependence or 
alcohol-related diseases and others are not; the relationship 
of genetic and environmental factors involved in alcoholism; 
the mechanisms whereby alcohol produces its disabling effects, 
including organ damage; how to prevent alcohol misuse and 
associated damage and how alcoholism treatment can be improved. 
NIAAA addresses these questions through a program of 
biomedical, behavioral, and epidemiologic research on 
alcoholism, alcohol abuse, and related problems. This program 
includes various areas of special emphasis such as medications 
development, fetal alcohol syndrome, genetics, and moderate 
drinking.
    Genetics.--Past studies in genetic epidemiology provide 
compelling evidence for the influence of genetics on the 
predisposition to alcoholism. Recent findings from the 
Cooperative Study on the Genetics of Alcoholism have identified 
several chromosomal regions of importance. NIAAA plans to 
initiate additional research to precisely map the location of 
the genes, isolate them, and identify their protein products. 
The Committee strongly supports the continued funding of this 
important research, which will provide the foundation for the 
development of new methods to prevent and treat alcoholism.
    Molecular and cellular biology.--The Committee is pleased 
that NIAAA has launched an initiative in conjunction with four 
other NIH Institutes to bring cutting edge techniques in 
molecular and cellular neurobiology to alcoholism research. 
Neurobiological research funded by NIAAA showing that alcohol 
may interact directly with neural cell adhesion molecules and 
ion channels may lead to the rational design of drugs that 
block the adverse effects of alcohol. The Committee encourages 
NIAAA to continue research into the basic mechanisms underlying 
alcohol addiction and the medical complications of alcoholism.
    Medications development.--The Committee encourages NIAAA to 
pursue both basic and clinical research to improve the use of 
existing drugs to treat alcoholism, as well as to identify new 
and more effective medications.
    Fetal alcohol syndrome.--Fetal alcohol syndrome is the 
leading preventable cause of mental retardation in the United 
States. Research funded by NIAAA has led to important 
discoveries on the molecular mechanisms underlying alcohol-
induced birth defects, the effects of moderate drinking during 
pregnancy on the intelligence and behavior of children, and 
strategies for the prevention of drinking during pregnancy. The 
Committee encourages the NIAAA to consider the recommendations 
of the Institute of Medicine in its funding of fetal alcohol 
syndrome research.
    Moderate drinking.--The Committee understands that NIAAA 
has received an extensive number of research applications on 
the health effects of moderate drinking to further investigate 
the potential role of beer, wine, and distilled spirits alcohol 
in an optimal diet and lifestyle. Research applications have 
been made on such subjects as the coronary protective effects 
of moderate drinking; the potential disease preventing 
mechanisms of wine antioxidants; alcohol's impact on other 
health parameters such as bone density; and overall mortality 
during different life stages. It is also the Committee's 
understanding that behavioral research submissions have been 
made, including studies investigating the responsible behavior 
of moderate consumers which could be helpful for the 
development of new alcohol education programs. The Committee 
believes that this research is important and encourages the 
NIAAA to continue its efforts in these areas. The Committee 
looks forward to learning in next year's hearing about the 
volume and types of research projects that have been funded.
    Training.--Since behavioral factors are important to 
alcoholism and alcohol abuse, the Committee encourages NIAAA to 
consider an initiative to support junior behavioral 
researchers, such as the B/START (Behavioral Science Track 
Awards for Rapid Transition) program which has been used by 
other Institutes.
    Treatment matching.--The Committee is interested to learn 
that Project MATCH, NIAAA's clinical trial of patient-treatment 
matching and treatment effectiveness, is approaching 
completion, and requests a report on the results of this 
important research as soon as it becomes available.

                    National Institute on Drug Abuse

    The bill includes $487,341,000 for the National Institute 
on Drug Abuse (NIDA), an increase of $21,016,000 over the 
amount requested and $29,229,000 over the comparable 1996 
appropriation.
    Mission.--NIDA's basic research furthers knowledge about 
the ways in which drugs act on the brain to produce drug 
dependence and about how the brain works. In addition, NIDA 
research identifies pharmacological and behavioral drug abuse 
treatments. NIDA conducts research on the nature and extent of 
drug abuse in the U.S. and monitors drug abuse trends 
nationwide to provide information for planning both prevention 
and treatment services. NIDA's mission is also to study the 
outcomes effectiveness and cost benefits of drug abuse services 
delivered in a variety of settings.
    Neuroscience.--The Committee recognizes that neuroscience 
research has fundamentally changed our understanding of 
addiction and that this understanding provides the foundation 
for new kinds of treatments. NIDA has made progress in 
identifying the neurobiological bases of addiction, including 
craving, which is one of the major factors that can precipitate 
relapse. NIDA-supported researchers have also made substantial 
progress in identifying potential anti-cocaine medications. 
NIDA-supported researchers have made great strides in 
understanding the brain's opiate system and its role in 
addiction. The Committee considers neuroscience research a top 
priority and encourages NIDA to continue its research efforts 
in this area.
    Medication development.--Basic research has now progressed 
to the point where at least six molecular targets have been 
identified, allowing researchers to strategically focus 
research on anti-addiction medications. The Committee urges 
NIDA to continue research aimed at developing effective 
medications for the treatment of addictions, particularly for 
cocaine. The Committee is pleased that NIDA has issued a 
program announcement to encourage expedited transition of 
ground-breaking research from advanced preclinical findings to 
applied clinical applications. The Committee recognizes this is 
a valuable tool in advancing the discovery and development of 
medications for cocaine addiction.
    Behavioral science research.--The Committee understands 
that behavioral research is important to solving problems of 
drug abuse and addiction, and that behavioral interventions are 
the most frequently administered treatments for drug addiction 
in some cases, the only available treatment. The Committee 
commends NIDA for its basic and clinical behavioral science 
activities aimed at better identifying those at risk for drug 
abuse and developing effective approaches for breaking the 
cycle of addiction. The Committee also encourages NIDA's HIV/
AIDS initiatives because of the increasing link between HIV 
infection and drug use and related behaviors.
    Social work research.--The Committee supports NIDA's 
research on families and drug abuse, behavioral and 
psychosocial treatment research and health services. The 
Committee also supports NIDA's efforts to increase the number 
of social work researchers conducting drug abuse research.
    Information dissemination.--The Committee believes that 
disseminating research findings in a timely manner is an 
important component of the NIH mission. Therefore, the 
Committee is pleased to learn of NIDA's ``town meetings'' with 
educators, health care providers, State and local anti-drug 
coalitions, and civic organizations to disseminate research 
findings and foster information exchange.

                  National Institute of Mental Health

    The bill includes $701,247,000 for the National Institute 
of Mental Health (NIMH), an increase of $30,042,000 over the 
amount requested and $40,733,000 over the comparable 1996 
appropriation.
    Mission.--The NIMH supports research to identify the causes 
of and the most effective treatments for mental illnesses. NIMH 
research brings a multidisciplinary approach to the human brain 
and behavior in health and in illness, integrating findings 
from the neurosciences, basic behavioral sciences, clinical 
research, epidemiology, prevention research, and mental health 
services research. In addition to research on the causes of and 
treatments for the most severe mental illnesses, the Institute 
supports studies of mood disorders, anxiety disorders, eating 
disorders, Alzheimer's disease, and childhood mental illnesses, 
as well as studies of the mental health needs of special 
populations that include rural communities, racial and ethnic 
minority populations, women, and individuals at risk of 
developing AIDS. The Committee notes that NIMH's new director 
has indicated his intention to conduct a full review of the 
Institute's research portfolio as he considers NIMH's research 
mission and priorities. The Committee strongly supports this 
internal effort, and expects to hear the results at next year's 
hearings.
    Clinical experiences.--The Committee understands that much 
basic behavioral research can be brought to bear on the most 
serious mental disorders and encourages NIMH to develop 
mechanisms to build a generation of basic behavioral 
researchers who are sensitive to clinical issues.
    Social work research.--The Committee is pleased with NIMH's 
funding of social work research development centers. The 
Committee requests that NIMH be prepared to report on the 
implementation of the recommendations of the NIMH task force 
report on social work research at its fiscal year 1998 budget 
hearings.
    Research plans.--The Committee is pleased to learn that 
NIMH supported the development of a behavioral science research 
plan aimed at reducing depression, schizophrenia, and other 
severe mood and anxiety disorders. The Committee encourages 
NIMH to consider the plan in determining its research 
priorities, and looks forward to discussing the use of the plan 
in next year's appropriations hearings.

                 National Center for Research Resources

    The bill includes $416,523,000 for the National Center for 
Research Resources (NCRR), an increase of $38,924,000 over the 
amount requested and $26,225,000 over the comparable 1996 
appropriation.
    Mission.--The NCRR develops and supports critical research 
technologies and shared resources that underpin biomedical 
research. The NCRR programs develop a variety of research 
resources; provide resources for complex biotechnologies, 
clinical research and specialized primate research; develop 
research capacity in minority institutions; and enhance the 
science education of pre-college students and the general 
public. The Committee places a special emphasis on programs 
such as the Research Centers in Minority Institutions and urges 
their continued support at levels commensurate with the 
importance of their mission.
    Extramural facilities.--The Committee has included bill 
language identifying $37,000,000 in extramural biomedical 
facility renovation and construction. These funds are to be 
awarded competitively, consistent with the requirements of 
section 481A of the Public Health Service Act which allocates 
25 percent of total funding to institutions of emerging 
excellence. The Committee urges NCRR to provide technical 
assistance to institutions of emerging excellence so that they 
may compete for these awards on an equal footing with 
institutions that have long histories of competing for Federal 
funding.
    Institutional development awards.--The Institutional 
Development Awards program (IDeA) provides capacity building 
assistance for biomedical research efforts in States which have 
not previously participated fully in the research programs of 
the NIH. The Committee urges the NCRR to enhance its efforts in 
this area so that States can more fully exploit the 
opportunities to develop a competitive biomedical research 
base. The Committee encourages the Director to permit 
applications from all States who can benefit from such 
assistance.
    Primate centers.--The Committee confirms its understanding 
that primate center grants are competitively awarded. The 
Committee urges NCRR to make clear to any institutions not 
currently receiving primate center grants that they are 
permitted and encouraged to apply for center funding as current 
grants expire. The Committee intends that NCRR will announce 
the opportunity to apply for primate center funding in the NIH 
Guide for Grants and Contracts as the current grants come up 
for renewal.
    Advanced instrumentation.--The Committee is familiar with 
the work of the National High Magnetic Field Laboratory that is 
supported by the Department of Energy and the National Science 
Foundation and believes that the technology being developed at 
this laboratory may have great potential for biomedical 
research in fields such as nuclear magnetic resonance imaging 
and cellular and structural biology. The Committee encourages 
NCRR to review the technology available at this facility and to 
consider supporting joint projects that have promising 
biomedical applications.

               National Center for Human Genome Research

    The bill includes $189,267,000 for the National Institute 
for Human Genome Research (NCHGR), an increase of $9,392,000 
over the amount requested and $19,499,000 over the comparable 
1996 appropriation.
    Mission.--The NCHGR coordinates extramural research and 
research training for the NIH component of the Human Genome 
Project, an effort to determine the location and sequence of 
the estimated 100,000 genes which constitute the human genome. 
The Division of Extramural Research supports research in 
genetic and physical mapping, DNA sequencing and technology 
development, database management and analysis, and studies of 
the ethical, legal, and social implications of human genome 
research. The Division of Intramural Research focuses on 
applying the tools and technologies of the Human Genome Project 
to understanding the genetic basis of disease and developing 
DNA-based diagnostics and gene therapies.
    Primary immune deficiency diseases.--More than seventy 
primary immune deficiency diseases have been identified by 
researchers to date. Research into the human genome has 
resulted in the discovery of the genetic defects that result in 
17 of these 70 diseases, in which the body is incapable of 
fighting off infection. Discovering the defective genes that 
cause each disease is a critical step toward early and accurate 
diagnosis and treatment, which can relieve great suffering, and 
eventually toward prevention and cure. The Committee notes the 
advances that have occurred in research into primary immune 
deficiency diseases as a clear example of the prospects that 
result from the research of NCHGR and strongly encourages the 
Center to continue to focus on the identification and 
sequencing of genes that cause genetic-based illnesses.
    Fanconi anemia.--Fanconi anemia is a fatal, inherited, 
genetic disorder in which patients manifest various congenital 
abnormalities and are predisposed to cancer. Recent research 
has indicated that mutations in at least four different genes 
can cause Fanconi anemia. The DNA for one of the genes has been 
cloned and found to encode a novel protein. Even though the 
protein's function is unknown at present, research has now 
reached the point where rapid progress to a detailed 
understanding of this syndrome may be possible. The Committee 
encourages the Center to pursue additional research 
opportunities into this disorder.

 John E. Fogarty International Center for Advanced Study in the Health 
                                Sciences

    The bill includes $26,707,000 for the Fogarty International 
Center (FIC), an increase of $1,160,000 over the amount 
requested and $1,380,000 over the comparable 1996 
appropriation.
    Mission.--The FIC attempts to improve the health of the 
people of the United States and other nations through 
international cooperation in the biomedical sciences. In 
support of this mission, the FIC pursues the following four 
goals: mobilize international research efforts against global 
health threats; advance science through international 
cooperation; develop human resources to meet global research 
challenges; and provide leadership in international science 
policy and research strategies.
    Tuberculosis.--The Committee notes the collaboration of the 
Fogarty International Center with international groups 
organized against tuberculosis and lung diseases. The Committee 
urges enhanced efforts of the Fogarty International Center 
aimed at developing research and training programs in 
collaboration with these groups to combat the growing global 
tuberculosis epidemic.

                      National Library of Medicine

    This bill includes $150,093,000 for the National Library of 
Medicine (NLM), an increase of $3,514,000 over the amount 
requested and $9,157,000 over the comparable 1996 
appropriation.
    Mission.--The mission of the National Library of Medicine 
is to collect, organize, disseminate, and preserve the world's 
output of biomedical literature in all forms. The resulting 
collection can be consulted at the Library's facilities on the 
NIH campus, requested by U.S. health professionals through 
interlibrary loan, or searched via online databases that the 
NLM makes available to health professionals around the world. 
NLM has a program of outreach to the health professions. The 
Library also has statutory responsibility to conduct research 
into biomedical communications and biotechnology; to award 
grants in support of health science libraries and the services 
they provide; and to create specialized information services in 
such areas as health services research, environmental health, 
hazardous substances, and toxicology.
    Outreach.--The Committee encourages NLM to continue its 
special outreach efforts to bring the benefits of its 
information systems to all American health professionals. 
Providing information access to health professionals in remote 
rural and inner city areas is a high priority.
    The Committee supports the NLM's efforts towards improving 
health care information sharing among clinicians, researchers, 
educators, and other health professionals through the 
implementation of the national information superhighway, and 
programs such as Internet. In order to maximize the 
productivity of these activities, the Committee urges that they 
be effectively coordinated through the use of medical 
librarians and other information specialists.
    The Committee believes that an essential key to successful 
outreach is publishing and distributing NLM's planning 
documents and annual reports, thus publicizing the library's 
services and programs. The Committee is pleased that documents 
providing NLM-related information are being made available in 
print as well as electronically over the Internet.

                         Office of the Director

    The bill includes $275,423,000 for the Office of the 
Director (OD), an increase of $23,910,000 over the amount 
requested and $15,351,000 over the comparable 1996 
appropriation. The bill includes language proposed by the 
Administration authorizing the collection of third party 
payments for the cost of clinical services.
    Mission.--The Office of the Director provides leadership to 
the NIH research enterprise and coordinates and directs 
initiatives which cross-cut the NIH. The OD is responsible for 
the development and management of intramural and extramural 
research and research training policy, the review of program 
quality and effectiveness, the coordination of selected NIH-
wide program activities, and the administration of centralized 
support activities essential to operations of the NIH.
    Minority health initiative.--The Minority Health Initiative 
(MHI) is a coordinated set of programs designed to address the 
health needs of minorities across the lifespan and to expand 
the participation of minorities in all phases of biomedical and 
biobehavioral research. The MHI comprises a portfolio of multi-
year research projects as collaborative efforts with NIH 
Institutes, centers and divisions (ICDs) as well as new 
components developed to confront emerging and unaddressed 
health research areas.
    Women's health initiative.--This research is a large cross-
Institute initiative to study prevention of conditions 
responsible for deaths, disability and frailty in older women--
breast and colorectal cancer, heart disease, and osteoporosis. 
There are three components of the study: a randomized clinical 
trial; an observational study; and a community prevention 
study. The clinical trial is being conducted at 40 centers with 
46,000 women participating. It is scheduled for completion in 
2004.
    Office of Research on Minority Health.--The Office of 
Research on Minority Health (ORMH) serves as the coordinating 
office for minority health research and research training 
activities at NIH. Through partnerships with the ICDs, and 
other federal agencies and outside organizations, the ORMH 
strives to improve the health status of all minorities and 
increase the numbers of minority scientists. The ORMH provides 
supplemental support to ICD projects, develops programs to 
increase minority participation in clinical trials, and 
initiates and develops programs to increase the competitiveness 
of grant applications submitted by minority researchers.
    The Committee is pleased with the collaborative efforts 
that the Office of Research on Minority Health has pursued with 
the NIDDK on diabetes research to promote the health of 
minorities, particularly on the understanding, treatment and 
prevention of the disease in minority populations. The 
Committee urges the ORMH to continue these collaborative 
efforts with NIDDK on diabetes.
    The Committee commends the ORMH for its participation in a 
trans-institute initiative for further study of H. pylori 
infection and its relationship to peptic ulcer disease and 
gastric cancer. Further research in this area offers exciting 
possibilities to eradicate peptic ulcer disease and improve 
understanding of gastric cancer, particularly in minority 
populations.
    The Committee encourages ORMH to collaborate with NIEHS in 
its funding of programs to address the issues of environmental 
justice and environmental health effects in underserved and 
minority populations.
    Office of Research on Women's Health.--The Office of 
Research on Women's Health (ORWH) works in collaboration with 
the ICDs of the NIH to promote and foster efforts to address 
gaps in knowledge related to women's health through the 
enhancement and expansion of funded research and/or the 
initiation of new investigative studies. The ORWH is 
responsible for ensuring the inclusion of women in clinical 
research funded by the ICDs, including the development of a 
computerized tracking system and the implementation of new 
guidelines on such inclusion. This Office is also involved in 
promoting programs to increase the number of women in 
biomedical science, and in the development of women's health as 
a focus of medical/scientific research.
    The Committee commends the ORWH for sponsoring the July, 
1996 scientific workshop on fibromyalgia syndrome (FMS) and 
encourages the ORWH to develop a policy to address chronic pain 
syndromes in women that tend to overlap, such as fibromyalgia 
syndrome, chronic fatigue syndrome, irritable bowel syndrome, 
chronic headaches, interstitial cystitis, dysmenorrhea, 
temporomandibular joint dysfunction and others.
    The Committee is pleased with the collaborative efforts 
underway between the ORWH and the NIDDK to jointly fund 
research focusing on cardiovascular disease in women with 
diabetes. Diabetes is one of the leading risk factors for 
coronary artery disease among women between the ages of 30 and 
55 who have Type I diabetes. Women with either Type I or Type 
II diabetes are at close to a two-fold risk of coronary artery 
disease, with potentially devastating effects on their quality 
of life and their lifespan. The Committee encourages the ORWH 
to work with NIDDK to develop and pursue projects that could 
lead to the prevention and control of diabetes and its 
potentially devastating consequences in women.
    Office of AIDS Research.--The Office of AIDS Research (OAR) 
is responsible for coordination of the scientific, budgetary, 
legislative, and policy elements of the NIH AIDS research 
program. The OAR develops a comprehensive plan for NIH AIDS-
related research activities which is updated annually. The plan 
is the basis for the President's budget distribution of AIDS-
related funds to the Institutes, centers and divisions within 
NIH. The Committee expects the Director of NIH to use this plan 
and the budget developed by OAR to guide his decisions on the 
allocation of AIDS funding among the Institutes. The Director 
of NIH should also use the full authority of his office to 
ensure that the ICDs spend their AIDS research dollars in a 
manner consistent with the plan. In addition, the OAR allocates 
an emergency AIDS discretionary fund to support research that 
was not anticipated when budget allocations were made.
    The Committee commends the NIH for its initiation of a 
comprehensive external review and evaluation of the entire NIH 
AIDS research program. The Committee has received the Working 
Group Report, and urges the Director of NIH, in concert with 
the Director of the OAR, to implement these important 
recommendations, which set forth a blueprint for the future of 
AIDS research. The Committee also looks forward to receiving 
the final reports of the panel's review of individual 
scientific areas.
    The Committee has included general provisions bill language 
similar to that contained in the 1996 appropriations bill 
permitting the Director of OAR, jointly with the Director of 
NIH, to transfer between ICDs up to three percent of the 
funding determined by NIH to be related to AIDS research. This 
authority could be exercised throughout the fiscal year subject 
to normal reprogramming procedures, and is intended to give NIH 
flexibility to adjust the AIDS allocations among Institutes if 
research opportunities and needs should change.
    Last year, the number of AIDS cases passed the 500,000 
mark. AIDS is now the leading cause of death for Americans 
between the ages of 25 and 44. The disease is spreading most 
rapidly among African Americans and other at-risk minority 
populations, adolescents, and women. Therefore, the Committee 
urges the OAR to carefully monitor these changes and ensure 
that the research plan includes objectives and strategies to 
respond to demographic changes in a timely fashion. NIH is also 
strongly encouraged to strengthen and to include the direct 
participation of African Americans and other minorities in its 
AIDS/HIV research, research training, and outreach activities. 
The Committee expects the NIH to report on its progress in 
achieving this objective during next year's appropriations 
hearings.
    Office of Alternative Medicine (OAM).--The Office of 
Alternative Medicine (OAM) provides a central NIH focus for a 
research area germane to all NIH components. Alternative 
medicine is becoming increasingly popular in the industrialized 
world and research may help in identifying new effective 
approaches to the prevention and cure of disease. In the U.S., 
one out of every three Americans saw alternative health care 
practitioners in 1990, paying over $13 billion for these 
services. The OAM is charged with evaluating alternative 
medical treatment modalities; investigating and evaluating the 
efficacy of alternative treatments; establishing an information 
clearinghouse for the public; and supporting research training 
in alternative and complementary medical practices. The 
Committee intends that the activities of the OAM be maintained 
at current year levels.
    Office of Behavioral and Social Sciences Research.--The 
OBSSR provides leadership and direction for the development of 
a trans-NIH plan to increase the scope of and support for 
behavioral and social science research and in defining an 
overall strategy for the integration of these disciplines 
across NIH institutes and centers; develops initiatives to 
stimulate research in the behavioral and social sciences arena 
and integrate a biobehavioral perspective across the research 
areas of NIH; and promotes studies to evaluate the 
contributions of behavioral, social and lifestyle determinants 
in the development, course, treatment, and prevention of 
illness and related public health problems.
    The Committee is pleased that the OBSSR has established a 
research training task force. The Committee encourages the 
Office to work with the ICD's to develop small grants programs 
for young investigators such as the B/START program, or other 
mechanisms the OBSSR may determine are appropriate.
    Office of Rare Disease Research.--This office was 
established in recognition of the need to provide a focal point 
of attention and coordination at NIH for research on rare 
diseases. The office works with Federal and non-Federal 
national and international organizations concerned with rare 
disease research and orphan products development; develops a 
centralized database on rare diseases research; and stimulates 
rare diseases research by supporting scientific workshops and 
symposia to identify research opportunities.
    Transfer authority.--The Committee has included traditional 
bill language permitting the Director of NIH to transfer up to 
one percent of one NIH appropriation to another. The Committee 
emphasizes that such transfers are subject to the normal 
reprogramming procedures.
    Biology of brain disorders.--The Committee is pleased the 
NIH has identified the biology of brain disorders as an area of 
scientific emphasis. This area of research extends to studies 
which seek to understand the development of the normal brain 
and the changes in development which may underlie brain 
disorders. Millions of Americans have a permanent, neurological 
disability that limits their daily activities. Many other 
brain-related disorders and ailments, such as pain, addiction, 
neurodegenerative disease, diseases of the aging brain, such as 
Alzheimer's and Parkinson's, inflict untold misery on millions 
of Americans. The Committee urges a continued commitment to 
this promising area of research.
    Pediatric research.--The Committee is encouraged by NIH's 
responsiveness to past suggestions that it recognize the 
importance of a strong commitment to pediatric research across 
institutes and expects the NIH to continue reporting on its 
progress in strengthening its pediatric biomedical research 
portfolio. The Committee recognizes that the opportunity for 
scientific progress in combating and preventing illnesses and 
diseases affecting children has never been greater and that 
pediatric research can also offer significant insight and 
promise for adults. The Committee also recognizes that 
realizing this opportunity will require the NIH to maintain a 
specific focus on pediatric biomedical research, including 
assuring the appropriate participation of children in clinical 
research. The Committee encourages the NIH to initiate a 
coordinated and collaborative pediatric biomedical research 
effort and believes adequate funding is available within the 
Office of the Director for such an effort. The Committee would 
intend that the Director have broad discretion in the 
allocation of funds and encourages the Director to allocate 
funds in consultation with the Institutes involved in pediatric 
research and extramural researchers as he determines 
appropriate.
    Bone diseases.--The Committee is pleased with the growth of 
research on osteoporosis, Paget's disease and osteogenesis 
imperfecta throughout the NIH, particularly at the NIAMS, NIA, 
NIDR, and NIDDK. The Committee encourages these Institutes to 
further intensify their research programs on bone diseases, 
which affect over 30 million women, men and children.
    Sleep disorders.--The Committee is concerned that while the 
NHLBI has proceeded with the establishment of the National 
Center on Sleep Disorders Research, no formal mechanism has 
been established to encourage grant collaboration between the 
National Center and other NIH institutes that have an interest 
in and a portfolio of sleep research activity. The Committee is 
hopeful that the recently approved National Sleep Disorders 
Research Plan will serve as the focal point for this important 
activity, and that the NIH Director's Office will help 
facilitate implementation of this plan.
    Nutrition.--Nutrition research is a trans-NIH activity 
which the Committee continues to highlight. The Committee is 
encouraged by the progress of the obesity research initiative, 
and encourages an enhanced focus throughout the NIH on obesity 
research, particularly on its clinical aspects. The Committee 
also encourages the Office of Dietary Supplements within the 
Office of the Director to support research in the role of 
supplements in parenteral and enteral nutrition.
    Chronic fatigue and immune dysfunction syndrome.--The 
Committee encourages NIH to enhance its research on chronic 
fatigue and immune dysfunction syndrome (CFIDS), particularly 
in seeking to identify the etiological agent. In light of the 
NIAID Advisory Council's recommendation in September 1995 that 
CFIDS research continue in a multidisciplinary manner, the 
Committee encourages the Director of NIH to appoint a CFIDS 
coordinator with cross cutting authority to provide leadership 
on CFIDS and cultivate the interest of institutes not currently 
engaged in the study of CFIDS. The Committee urges the NIH 
CFIDS coordinator to identify appropriate NIH advisory 
committees for CFIDS representation and make recommendations 
for appropriate representatives thereon.
    Child abuse and neglect.--The Committee recognizes the 
magnitude and significance of the problem of child abuse and 
neglect. A 1993 National Research Council report entitled 
Understanding Child Abuse and Neglect examined the current 
state of research in this area and recommended a research 
agenda designed to address the problems and gaps that currently 
exist. In order to facilitate collaborative and cooperative 
efforts in this important area, the Committee encourages NIH to 
convene a working group of its component organizations 
currently supporting research on child abuse and neglect. The 
Committee requests that this working group be prepared to 
report on current NIH research efforts in this area, the 
accomplishments of that research, and on plans for future 
coordination efforts at NIH at the fiscal year 1998 hearings.
    Clinical research.--Last year, the Committee requested a 
report from the NIH on its progress in implementing the 
recommendations of the Institute of Medicine (IOM) report on 
careers in clinical research. The Committee understands that 
the NIH Director's Advisory Panel on Clinical Research is 
continuing its deliberations on these matters, but urges the 
Director to take whatever steps he can to accelerate the work 
of that panel so that NIH can proceed expeditiously to respond 
to the IOM recommendations, as well as those the panel may 
have.
    Training.--The Committee notes that the National Academy of 
Sciences recommended in its most recent assessment of the 
nation's need for biomedical and behavioral researchers that 
NIH increase the number of NRSA awards in behavioral science, 
nursing research, health services research, and oral health 
research, while keeping the number of NRSA awards in the basic 
biomedical sciences at current levels. The Committee requests 
that the Director report to the Committee NIH's progress in 
implementing these recommendations, including a plan and 
timetable to do so.
    Outreach and public education.--The Committee feels that 
outreach and public education are important to the success of 
the NIH and strengthen the agency's research initiatives. The 
Committee commends the NHLBI for its outreach and public 
education activities, and believes that other ICDs could 
benefit from replication of NHLBI approaches to outreach and 
public education. The Committee urges the Director of the NIH 
to assist other institutes to strengthen their outreach and 
public education initiatives. The Committee requests the 
Director of NIH to provide an update of this effort during next 
year's appropriations hearings.
    Minority issues.--The Committee notes that the National 
Institutes of Health has had a continuing discrimination 
problem with regard to minority hiring, promotions, use of 
minority contractors, and the participation of historically 
black colleges and universities in research opportunities. In 
light of this fact, the Committee requests that the NIH provide 
a detailed progress report on this continuing situation prior 
to the fiscal year 1998 appropriations hearings.

                        Buildings and Facilities

    The bill includes $200,000,000 for buildings and 
facilities, a decrease of $190,261,000 below the amount 
requested and $53,849,000 over the comparable 1996 
appropriation. Of the $200,000,000 provided, $90,000,000 is 
designated in bill language for construction of the clinical 
research center.
    Mission.--The Buildings and Facilities appropriation 
provides for the design, construction, improvement, and major 
repair of clinical, laboratory, and office buildings and 
supporting facilities essential to the mission of the National 
Institutes of Health. The funds in this appropriation support 
the 77 buildings on the main NIH campus in Bethesda, Maryland; 
the Animal Center in Poolesville, Maryland; the National 
Institute of Environmental Health Sciences facility in Research 
Triangle Park, North Carolina; and other smaller facilities 
throughout the United States.
    Construction programs.--This account supports continued 
essential safety and health improvements to maintain the 
clinical center; the continuation of the campus infrastructure 
modernization program as well as programs for power plant 
safety, asbestos abatement, fire protection and life safety, 
the elimination of barriers to persons with disabilities, 
safety and reliability upgrades at the Rocky Mountain 
Laboratory, and indoor air quality improvement.
    Repairs and improvements.--Support is also provided for the 
continuing program of repairs and improvements required to 
maintain existing buildings and facilities.
    Clinical research center.--The Committee concurs with the 
judgment of the NIH that construction of a new clinical 
research center to replace the current 43-year-old structure is 
vitally important to the future of clinical research, not only 
that conducted on campus but nationwide. With dramatic changes 
underway in the organization and financing of medical care and 
research supported at the nation's academic health centers, it 
is not clear that resources will continue to be available to 
conduct clinical research at those sites. The network of 
clinical research centers supported by the National Center for 
Research Resources cannot by itself fill this gap. The new 
hospital will have 250 beds, as recommended by the Marks-
Cassell intramural research review panel, and will have 
flexibility to convert space from ambulatory to in-patient care 
and vice versa as clinical research practices change over the 
50 year projected lifespan of the facility.
    The President's budget requested full funding of $310 
million for construction in the first budget year. The 
Committee has instead provided $90 million in fiscal year 1997, 
with every intention of providing the full cost of the project 
over the next few years in a way that does not disrupt its 
construction timetable or unnecessarily add to its total costs. 
The Committee has included bill language permitting NIH to 
contract for the entire scope of the project in the first year, 
subject to the availability of appropriations, so that NIH will 
not incur the delays and added costs associated with the need 
to let separate contracts for each annual appropriation of 
funds.
    While the Committee will incorporate the $310 million cost 
into its outyear budget planning, it understands that precise 
cost estimates will not be available until the detailed design 
and space programming is completed. The Committee expects to be 
promptly notified of any change in cost estimates resulting 
from the completion of the detailed design documents.
    Given the size and complexity of the construction of the 
clinical research center, the Committee requests that NIH 
establish a semi-annual reporting system to notify the 
Committee of its progress. These reports should be based on a 
timetable for the project that includes significant 
construction and financial obligations benchmarks. Each report 
should indicate whether benchmarks have been met in terms of 
contract negotiation, costs incurred, and construction 
completions. As the project moves into the construction phase, 
the Committee may choose to request these reports on a 
quarterly basis. In addition, the Committee expects that the 
detailed construction documents be reviewed upon their 
completion by an outside party acceptable to both NIH and the 
Committee with experience in similar construction projects. The 
Committee does not intend that this review delay the 
construction timetable, but feels it would be useful to have an 
outside assessment before construction commitments are 
undertaken.
    Surplus facilities.--The Committee understands that the 
Director's Science Advisory Committee may soon recommend 
surplusing the Perrine primate facility in Miami. The Committee 
encourages NIH to expedite the surplusing of this facility and 
believes it would be desirable for the facility to continue to 
be used for research purposes.

       Substance Abuse and Mental Health Services Administration

               SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES

    The bill provides $1,849,235,000 for the Substance Abuse 
and Mental Health Services Administration (SAMHSA). In 
combination with $50,000,000 appropriated in P.L. 104-121, the 
bill provides a total program level of $1,899,235,000 for 
SAMHSA, $16,135,000 above the comparable fiscal year 1996 
program level and $248,776,000 below the budget request program 
level. Programs funded in this account are not authorized for 
fiscal year 1997.
    SAMHSA is responsible for supporting mental health, 
alcoholism, and other drug abuse prevention and treatment 
services nationwide through discretionary knowledge development 
and applied research grants and formula block grants to the 
States. The agency consists of three principal centers: the 
Center for Mental Health Services, the Center for Substance 
Abuse Treatment, and the Center for Substance Abuse Prevention. 
The Office of the Administrator is responsible for overall 
agency management.
    The Committee commends the agency for the difficult 
decisions it has taken to downsize and streamline its 
operations to improve productivity and efficiency with limited 
resources. The Committee is encouraged by the Agency's 
initiative to comply with the Government Performance and 
Results Act (GPRA) ahead of the mandated schedule and continues 
to encourage the Agency to implement GPRA as quickly as 
possible. In general, the Committee concurs with the Agency's 
efforts to set performance goals for its grantees and to 
measure outcomes against those goals.
    In general, the bill has provided funding at the comparable 
fiscal year 1996 funding levels for the block grants and has 
provided select increases in the Knowledge Development and 
Application (KDA) programs to continue high priority continuing 
projects which would otherwise be terminated. The bill does not 
include the President's proposal to consolidate and reduce 
funding by $20,000,000 for the PATH program and the mental 
health block grant. The bill does not fund the proposed 
Performance Partnerships which are not authorized in law but 
notes that many components of the proposal may be implemented 
without further legislation, and the Agency is encouraged to do 
so. Funding for administrative activities is provided at the 
requested level.
    The Committee notes that decision-making regarding funding 
for drug abuse prevention and treatment activities is greatly 
hampered by the dearth of comprehensive information on such 
activities across the Federal Government. A recent study 
performed for the Committee by the General Accounting Office 
(GAO) indicated that no federal agency, including the Office of 
National Drug Control Policy (ONDCP), maintains information 
regarding total Federal spending for drug prevention and 
treatment activities. Information available to the Committee 
regarding state, local and private drug treatment and 
prevention activities is similarly insufficient. Overall, 
according to the GAO, the Federal Government is projected to 
spend $15,400,000,000 in fiscal year 1996 for substance abuse 
treatment, prevention and supply interdiction. Of that amount, 
the Department of Health and Human Services spends 
$3,600,000,000 on prevention and treatment, the Department of 
Education spends $618,000,000 and the Department of Labor 
spends $60,000,000. According to the GAO:

          From fiscal year 1990 through 1994, the number of 
        Federal departments and agencies funding substance 
        abuse treatment and prevention activities increased 
        from 12 to 16, according to the Office of National Drug 
        Control Policy. For the same years, Federal agencies' 
        budget authorizations increased more than 59% from 
        about $2.8 billion to $4.4 billion. The fiscal year 
        1996 budget authorization was estimated to be $5.2 
        billion.

Mental Health

            Knowledge development and application
    The bill provides $38,032,000 for the mental health 
knowledge development and application (KDA) program, the same 
as the comparable fiscal year 1996 appropriation and 
$24,101,000 below the budget request. In the fiscal year 1996 
budget request, SAMHSA proposed a new direction for future 
demonstration programs emphasizing intensive knowledge 
development and technology transfer rather than continuing 
service support. SAMHSA identified seven priority areas for KDA 
research and application, and the funding provided in the bill 
supports the continuing transition to the new KDAs. In fiscal 
year 1997, the Center for Mental Health Statistics (CMHS) will 
participate in each of the seven designated areas of research 
including Managed Care and Service Financing, Early Childhood 
Problems, Emerging Issues, Co-Occurring Disorders, Criminal 
Justice, Changing Systems and Practice, and Standards and 
Guidelines.
    The Committee is pleased by SAMHSA's decision to maintain 
support for the AIDS mental health demonstration projects and 
to continue supporting a data center to provide technical 
assistance to and evaluation of the demonstration projects. The 
Committee commends CMHS for working cooperatively with the 
Health Resources and Services Administration and the National 
Institute on Mental Health to fund cooperative agreements 
relating to AIDS and mental health.
    The Committee is concerned about the impact of managed care 
on the availability of mental health services to underserved 
communities. Therefore, the Committee directs the Secretary to 
consider developing within the Standards and Guidelines 
emphasis area standards for mental health professionals 
employed by managed care entities regarding cultural 
competencies, workforce diversity, and collaboration among 
primary care disciplines. In addition, the Committee believes 
that design of curricula and training models to prepare social 
workers for the managed care and other interdisciplinary 
primary health care settings merit consideration for Standards 
and Guidelines funding. Finally, the Committee encourages CMHS 
to collaborate with the Health Resources and Services 
Administration on the development of training protocols for 
mental health professionals in primary care settings including 
the linking of health-related agencies with graduate schools 
for pre-service and continuing education.

Mental health block grant

    The bill includes $275,420,000 for the mental health block 
grant, the same as the comparable fiscal year 1996 
appropriation and the budget request. The Committee has not 
adopted the President's proposal to consolidate and reduce by 
$20,000,000 funding for the mental health block grant and 
grants to States for the homeless (PATH) programs. Rather, the 
bill preserves and fully funds both programs.
    The block grant provides funds to States to support mental 
health prevention, treatment, and rehabilitation services. 
Funds are allocated according to statutory formula among the 
States that have submitted approved annual plans.
    The Committee notes that the mental health block grant 
funding represents less than 2% of total State mental health 
funding and less than 5% of State community-based mental health 
services.

Children's mental health

    The bill provides $59,927,000 for the fifth year of funding 
for the grant program for comprehensive community mental health 
services for children with serious emotional disturbance, the 
same as the comparable fiscal year 1996 appropriation and 
$31,000 below the budget request. This amount is sufficient to 
fully fund all 22 continuing demonstration projects, a 
cooperative agreement to provide technical assistance to 
project sites, an evaluation contract, and children's education 
campaign activities as requested in the budget.
    Funding for this program supports grants and technical 
assistance for community-based services for children and 
adolescents up to age 22 with serious emotional, behavioral, or 
mental disorders. The program assists States and local 
jurisdictions in developing integrated systems of community 
care. Each individual served receives an individual service 
plan developed with the participation of the family and the 
child. Grantees are required to provide increasing levels of 
matching funds over the five year grant period.

Grants to States for the homeless (PATH)

    The bill provides $20,000,000 for the grants to States for 
the homeless (PATH) program, the same as the comparable fiscal 
year 1996 appropriation and $20,000,000 above the request. The 
bill does not adopt the President's request to consolidate and 
reduce by $20,000,000 funding for the PATH program and the 
mental health block grant, nor does the bill include 
legislation proposed by the Administration to establish a 
transitional funding formula related to the consolidation of 
the PATH and mental health block grant programs. The proposed 
funding formula is not authorized in current law.
    PATH grants to States provide assistance to individuals 
suffering from severe mental illness and/or substance abuse 
disorders and who are homeless or at imminent risk of becoming 
homeless. Grants may be used for outreach, screening and 
diagnostic treatment services, rehabilitation services, 
community mental health services, alcohol or drug treatment 
services, training, case management services, supportive and 
supervisory services in residential settings, and a limited set 
of housing services.

Protection and Advocacy

    The bill provides $21,957,000 for the protection and 
advocacy program, the same as the request and $2,107,000 above 
the comparable fiscal year 1996 appropriation. This funding is 
distributed to States according to a formula based on 
population and income to assist State-designated independent 
advocates to provide legal assistance to mentally ill 
individuals during their residence in State-operated facilities 
and for 90 days following their discharge.

Substance abuse treatment

            Knowledge development and application
    The bill provides $101,333,000 for the substance abuse 
treatment knowledge development and application (KDA) program, 
an increase of $11,556,000 over the comparable fiscal year 1996 
appropriation and $74,710,000 below the budget request. In the 
fiscal year 1996 budget request, SAMHSA proposed a new 
direction for future demonstration programs emphasizing 
intensive knowledge development and technology transfer rather 
than continuing service support. SAMHSA identified seven 
priority areas for KDA research and application, and the 
funding provided in the bill supports the transition to the new 
KDAs. In fiscal year 1997, the Center for Substance Abuse 
Treatment (CSAT) will participate in six of the seven 
designated areas of research including Managed Care and Service 
Financing, Emerging Issues, Co-Occurring Disorders, Criminal 
Justice, Changing Systems and Practice, and Standards and 
Guidelines.
    The Committee has provided sufficient funding to support 
all fifth year residential women and children grants and 
expects these projects to be fully funded through completion.
    The Committee recommends that in awarding KDA grants to 
eligible grantees the Secretary give priority to the 
development of knowledge and specific interventions that 
improve the quality and access to services in areas where there 
is a high incidence of substance abuse and mental illness 
coupled with other contributing conditions such as high rates 
of co-morbidities, particularly HIV infection, long waiting 
lists for treatment, or homelessness.

Substance abuse block grant

    The bill includes $1,184,107,000 in new budget authority 
for the substance abuse block grant. In combination with the 
$50,000,000 provided for the block grant in P.L. 104-121, the 
bill makes available $1,234,107,000 for the block grant, the 
same as the comparable fiscal year 1996 appropriation and 
$87,850,000 below the budget request.
    The substance abuse block grant provides funds to States to 
support alcohol and drug abuse prevention, treatment, and 
rehabilitation services. Funds are allocated among the States 
according to a statutory formula. State applications including 
comprehensive state plans must be approved annually by SAMHSA 
as a condition of receiving funds.

Substance abuse prevention

            Substance abuse prevention knowledge development and 
                    application
    The bill provides $93,959,000 for the substance abuse 
prevention knowledge development and application (KDA) program, 
an increase of $4,160,000 above the comparable fiscal year 1996 
appropriation and $82,084,000 below the budget request. In the 
fiscal year 1996 budget request, SAMHSA proposed a new 
direction for future demonstration programs emphasizing 
intensive knowledge development and technology transfer rather 
than continuing service support. SAMHSA identified seven 
priority areas for KDA research and application, and the 
funding provided in the bill supports the continuing transition 
to the new KDAs. In fiscal year 1997, the Center for Substance 
Abuse Prevention (CSAP) will participate in six of the seven 
designated areas of research including Managed Care and Service 
Financing, Early Childhood Problems, Emerging Issues, Co-
Occurring Disorders, Changing Systems and Practice, and 
Standards and Guidelines.
    The Committee has provided sufficient funding to continue 
all high risk youth public housing grants and expects these 
projects to be fully funded for one additional year. The 
Committee has provided this funding on a one-time basis and 
intends that grantees will develop alternative sources of 
funding such as the drug elimination grants for public housing 
funded by the Department of Housing and Urban Development.

Program management

    The bill provides $54,500,000 for program management 
activities, the same as the budget request and $1,688,000 below 
the comparable fiscal year 1996 appropriation. The 
appropriation provides funding to coordinate, direct and manage 
the agency's programs. Funds are used for salaries, benefits, 
space, supplies, equipment, travel and overhead.

     RETIREMENT PAY AND MEDICAL BENEFITS FOR COMMISSIONED OFFICERS

    The bill provides an estimated $176,392,000 for retirement 
pay and medical benefits for commissioned officers, the same as 
the budget estimate and an increase of $9,467,000 over the 
estimated payments for fiscal year 1996. This activity provides 
mandatory payments to Public Health Service commissioned 
officers who have retired for age, disability, or specified 
period of service. This appropriation also provides for the 
cost of medical care in non-Public Health Service facilities to 
dependents of the Public Health Service Commissioned Corps and 
payments to the Social Security trust funds for the costs to 
them of granting credits for military service.

               Agency for Health Care Policy and Research

                    HEALTH CARE POLICY AND RESEARCH

    The bill includes $90,469,000 in general funds for the 
Agency for Health Care Policy and Research (AHCPR), which is 
$25,424,000 above the 1996 level and $6,469,000 above the 
President's request. In addition, the bill does not make 
available any trust fund monies, which is $5,796,000 lower than 
the request, and $34,700,000 in one percent evaluation funding, 
compared to the request of $53,984,000, for a total resource 
level of $125,169,000. This total resource level is the same as 
the 1996 level and $18,611,000 below the request.
    The mission of the Agency for Health Care Policy and 
Research is to generate and disseminate information that 
improves the delivery of health care. AHCPR's research goals 
are to determine what works best in clinical practice; improve 
the cost-effective use of health care resources; help consumers 
make more informed choices; and measure and improve the quality 
of care.
    The bill includes $39,239,000 for Research on Health Care 
Systems Cost and Access, which is $9,177,000 below the 
President's request and $12,904,000 below the 1996 level. The 
Research on Health Care Systems Cost and Access program 
identifies the most effective and efficient approaches to 
organize, deliver, finance, and reimburse health care services; 
determines how the structure of the delivery system, financial 
incentives, market forces, and better information affects the 
use, quality, and cost of health services; and facilitates the 
translation of research findings for providers, patients/
consumers, plans, purchasers, and policymakers.
    The bill includes $44,700,000 for Health Insurance and 
Expenditure Surveys, which is the same as the President's 
request and $29,700,000 above the 1996 level. Of the 
$44,700,000 provided, $34,700,000 is derived through the one 
percent evaluation set- aside. The Committee has traditionally 
approved the use of the set-aside for crosscutting health 
surveys of use throughout the PHS. The Health Insurance and 
Expenditure Surveys provide timely national estimates of health 
care use and expenditures, private and public health insurance 
coverage, and the availability, costs, and scope of private 
health insurance benefits. This activity also provides analysis 
of changes in behavior as a result of market forces or policy 
changes on health care use, expenditures, and insurance 
coverage; develops cost/savings estimates of proposed changes 
in policy; and identifies the impact of changes in policy for 
subgroups of the population. These objectives are accomplished 
through the fielding of the Medical Expenditure Panel Surveys 
(MEPS), an interrelated series of surveys that replace the 
National Medical Expenditure Survey (NMES). The Committee has 
provided the Administration's full request for MEPS, 
recognizing that conducting the survey in fiscal year 1997 is 
the agency's top priority. The Committee encourages AHCPR, 
however, to look for further economies within MEPS so that the 
savings could be reallocated through reprogramming to other 
AHCPR activities.
    The bill includes $39,000,000 for Research on Health Care 
Outcomes and Quality which is $9,241,000 below the President's 
request and $16,796,000 below the 1996 level. The Research on 
Health Care Outcomes and Quality program funds research that 
determines what works best in medical care by increasing the 
cost effectiveness and appropriateness of clinical practice; 
supports the development of tools to measure and evaluate 
health outcomes, quality of care, and consumer satisfaction 
with health care system performance; and facilitates the 
translation of information into practical uses through the 
development and dissemination of research databases.
    The bill includes $2,230,000 for program support, which is 
the same as the 1996 level and $193,000 below the President's 
request. This activity supports the overall direction and 
management of AHCPR.
    Clinical guidelines.--The Committee applauds AHCPR for 
responding to last year's Committee report language urging 
AHCPR to re-evaluate its role in the direct development of 
clinical practice guidelines. The Committee hopes that AHCPR's 
new approach of relying on outside groups to generate the 
actual guidelines will result in broader use of guidelines in 
actual medical practices. While the Committee understands the 
amount of funding allocated to clinical guidelines is a modest 
proportion of the AHCPR budget, it nonetheless encourages the 
agency to continue to evaluate its appropriate role in 
providing direct technical assistance in areas such as 
literature review versus validating the preparation and 
development work generated by private groups.
    Children's health services.--The Committee commends AHCPR 
for convening experts in children's health care delivery and 
managed care for the purposes of moving towards a children's 
health services research agenda, and for establishing an 
internal working group to examine health care effectiveness, 
quality and outcomes measures for children. The Committee looks 
forward to receiving the report AHCPR is compiling on current 
efforts to address children's health care issues, particularly 
in the changing environment of managed care. To the extent 
resources permit, the Committee encourages AHCPR to sponsor a 
national gathering to develop and disseminate a national 
research agenda on quality, health care effectiveness, and 
outcomes measure for children, including children with special 
health care needs.
    Advance directives.--In the past, the Committee has 
encouraged AHCPR to study the effectiveness of a community-
focused, home-based approach to encouraging people to complete 
advance directives in an attempt to empower patients at the end 
of life decisions about their care. The Committee is aware that 
a coalition of private sector groups is undertaking an effort 
to conduct research on the needs of persons, families and 
communities confronted with life-threatening illness and to 
assess the current abilities of the health care system to meet 
those needs. The Committee encourages AHCPR, to the extent 
resources are available, to support efforts in research of 
supportive care of the dying such as those described above.

                  Health Care Financing Administration

                     GRANTS TO STATES FOR MEDICAID

    The bill includes $75,056,618,000 for the Federal share of 
current law State Medicaid costs in fiscal year 1997. This 
amount does not include $26,155,350,000 which was advance 
funded in the 1996 appropriation. The amount recommended in the 
bill for fiscal year 1997 is the same as the amount requested 
by the Administration and $19,962,263,000 more than the amount 
appropriated for fiscal year 1996. $12.7 billion of unobligated 
balances were available to the program in 1996, reducing the 
budget authority needs in that year.
    Federal Medicaid grants reimburse States for 50 to 77 
percent (depending on per capita income) of their expenditures 
in providing health care for individuals whose income and 
resources fall below specified levels. Subject to certain 
minimum requirements, States have broad authority within the 
law to set eligibility, coverage and payment levels. It is 
estimated that 37.5 million low income individuals will receive 
health care services in 1996 under the Medicaid program. State 
costs of administering the program are matched at rates which 
generally range from 50 to 90 percent, depending upon the type 
of cost. Total funding for Medicaid includes $524 million for 
the entitlement Vaccines for Children program. These funds, 
which are transferred to the Centers for Disease Control and 
Prevention for administration, support the costs of 
immunization for children who are on Medicaid, uninsured or 
underinsured and receiving immunizations at Federally qualified 
health centers or rural health clinics. Indefinite authority is 
provided by statute for the Vaccines for Children program in 
the event that the current estimate is inadequate.
    The Committee is aware that the authorizing committees are 
considering fundamental changes to the Medicaid program. The 
Committee has appropriated on the basis of existing law, but if 
such changes are enacted, will modify the appropriation in 
conference to comport to the new statute.
    The Committee urges the Health Care Financing 
Administration (HCFA) to make clear to States administering the 
Medicaid program its policy that the program reimburses the 
provision of prosthetic devices such as hearing aids when 
provided by licensed health care professionals operating within 
their scope of practice. Depending on the certification of the 
health professional, this reimbursement may or may not include 
testing, fitting and followup services related to the 
prosthetic devices.
    The Committee asks HCFA to speedily respond to the pending 
proposal of the state of Indiana, California, and any other 
state relating to the financing of the enhanced 
disproportionate share hospital program under Medicaid.
    The Committee has included bill language extending an 
expired moratorium on the designation of a particular provider 
in the State of Michigan as an institution for mental disease 
for the purpose of Medicaid payments. The extension, which was 
last extended in the Omnibus Budget Reconciliation Act of 1993, 
would continue until December 31, 2000 or until the Medigrant 
plan takes effect.

                  PAYMENTS TO HEALTH CARE TRUST FUNDS

    The bill includes $60,079,000,000 for the Payments to the 
Health Care Trust Funds account. This is a decrease of 
$3,234,000,000 below the 1996 level and the same as the 
Administration request.
    This entitlement account includes the general fund subsidy 
to the Medicare Part B trust fund as well as other 
reimbursements to the Part A trust fund for benefits and 
related administrative costs which have not been financed by 
payroll taxes or premium contributions. The amount provided 
includes $142 million for program management administrative 
expenditures, which is the 1997 estimate of the general fund 
share of HCFA program management expenses. This general fund 
share will be transferred to the Federal Hospital Insurance 
Trust Fund to reimburse for the funds drawn down in 1997 from 
the trust fund to finance program management.

                           program management

    The bill makes available $1,733,125,000 in trust funds for 
Federal administration of the Medicare and Medicaid programs. 
This is $391,156,000 less than the amount available for this 
purpose for fiscal year 1996 and $470,027,000 less than the 
Administration request.

Research, demonstration, and evaluation

    The bill includes $42,000,000 for research and 
demonstrations. This total is $8,810,000 less than the amount 
requested by the Administration and $2,000,000 more than the 
amount provided in 1996. These funds support a variety of 
studies and demonstrations in such areas as monitoring and 
evaluating health system performance; improving health care 
financing and delivery mechanisms; modernization of the 
Medicare program; the needs of vulnerable populations in the 
areas of health care access, delivery systems, and financing; 
and information to improve consumer choice and health status.
    The Committee encourages HCFA to conduct demonstrations of 
promising claims processing systems developed in the private 
sector designed to detect duplicate payments, diagnosis codes 
inconsistent with the treatment rendered, unbundling of 
services, and overcharges.
    The Committee encourages HCFA to conduct research 
demonstrations involving advanced telecommunications networks 
that are designed to provide primary care to urban, underserved 
and culturally diverse populations.
    The Committee supports the efforts of HCFA and the 
Department of Defense to negotiate a Medicare subvention 
demonstration. Subvention has the potential to provide 
additional healthcare options at a reduced cost. The Committee 
urges HCFA to act expeditiously in concluding this negotiation.
    The Committee encourages the Health Care Financing 
Administration to continue funding for the Medicare Community 
Nursing Organization Demonstration Projects through fiscal year 
1997. These projects operate in four States to test the 
efficacy of nursing organizations at providing managed care for 
Medicare home care and non-physician services.
    The bill does not include funding for health insurance 
information, counseling and assistance grants, which is 
$4,500,000 less than the President's request and the same as 
the 1996 level. These grants provided funding to States to 
counsel Medicare recipients about insurance benefits and plans. 
All States have received grants--a total of $30 million. 
Fifteen States receive funding from other sources for this 
program. The counseling is largely done on a volunteer basis; 
HCFA grants were used for a coordinator and some travel.
    No funding is provided for rural hospital transition 
grants, which is $13,089,000 less than the 1996 level and the 
same as the Administration request. These grants provide 
$50,000 awards to small rural nonprofit hospitals to help them 
adapt to changes in the demand for different types of services, 
changes in the populations served, or changes in the hospital's 
ability to provide staffing. This program has distributed $149 
million since its inception in 1989. Studies suggest that these 
grants have had only limited impact in stabilizing the 
financial situation of these small hospitals. Grants tend to be 
used for consulting services and personnel hiring rather than 
to make systemic changes to improve the institution's 
viability.

Medicare contractors

    The bill provides $1,207,200,000 to support Medicare claims 
processing contracts. This is $407,000,000 below the amount 
requested by the Administration and $390,442,000 below the 
operating level provided in fiscal year 1996.
    The Committee has reduced funding for Medicare contractors 
in anticipation of the appropriation provided for contractor 
payment safeguard activities in H.R. 3103, the Health Coverage 
Availability and Affordability Act of 1996. That legislation, 
currently in conference, directly appropriates not less than 
$430,000,000 and not more than $440,000,000 for payment 
safeguard activities. If H.R. 3103 is not enacted into law, the 
Committee will consider funding for these activities at the 
time of conference.
    Medicare contractors are responsible for paying Medicare 
providers promptly and accurately. In addition to processing 
claims, contractors also identify and recover Medicare 
overpayments, as well as review claims for questionable 
utilization patterns and medical necessity. In addition, 
contractors provide information and technical support both to 
providers and beneficiaries regarding the administration of the 
Medicare program. In 1997, contractors are expected to process 
861 million claims.
    Based on the President's request, the Committee assumes the 
Medicare Transaction System will be supported at a funding 
level of $75 million in fiscal year 1997.

------------------------------------------------------------------------
                                           1996               1997      
------------------------------------------------------------------------
Contractor operations.............     $1,181,442,000     $1,132,200,000
Payment safeguards................        396,000,000  \1\ (435,000,000)
Medicare Transaction System.......         20,200,000         75,000,000
                                   -------------------------------------
      Total contractors...........      1,597,642,000     1,642,200,000 
------------------------------------------------------------------------
\1\ Provided in H.R. 3103                                               

    The Committee intends to track closely the progress of the 
Medicare Transaction System, (MTS), and its related expenses. 
The Committee requests that HCFA submit a long-range budget for 
MTS, identifying expenses by quarter and appropriate benchmarks 
for completion of the design and implementation of the system, 
as well as expenses incurred to date. The budget should also 
include savings expected to result from MTS and the methodology 
used to calculate those savings.
    With respect to the Medicare payment safeguards, the 
Committee notes that the Congressional Budget Office, in 
scoring the Health Coverage Availability and Affordability Act 
of 1996 (H.R. 3103) projected savings to be achieved under 
current discretionary funding and additional savings through 
the increased funding in H.R. 3103. The Committee instructs the 
Health Care Financing Administration to provide the Committee 
with semi-annual reports on the actual deficit reduction impact 
of H.R. 3103. This report will provide separate information on 
the savings achieved under the assumed funding base and the 
incremental amounts provided in H.R. 3103 for the following:
          The actual revenues to the federal government as a 
        result of recoveries, increased secondary payers 
        collections and audit reviews of providers;
          The actual value of claims paid during the previous 
        six month period and the estimated value of claims 
        denied during the reporting period as a result of 
        modifications in payment policies during the reporting 
        period due to payment safeguard activities.
    In the first report, for the period ending September 30, 
1996, the Health Care Financing Administration will provide the 
above identified information for the previous six month period 
under funding made available in the fiscal year 1996 
appropriations act.
    The Committee is concerned that other measures of savings 
such as claims filed, costs avoided or other estimates may 
overstate the return on investment due to funding increases. It 
therefore instructs the Health Care Financing Administration, 
except where directed to do otherwise, to include only those 
actual revenues to the federal government and the actual dollar 
value of payments that had been made to providers prior to 
actions to change or modify payment policies.

State survey and certification

    The bill provides $158,000,000 for State inspection of 
facilities serving Medicare and Medicaid beneficiaries, which 
is $10,375,000 above the 1996 level and $15,800,000 below the 
Administration request. The Committee anticipates that 
additional resources will be made available through the 
legislative changes pertaining to the home health agency survey 
cycle and deemed certification for some facilities that were 
included in H.R. 3019, the Downpayment Toward a Balanced Budget 
Act.
    Survey and certification activities ensure that 
institutions and agencies providing care to Medicare and 
Medicaid beneficiaries meet Federal health, safety and program 
standards. On-site surveys are conducted by State survey 
agencies, with a pool of Federal surveyors performing random 
monitoring surveys. Almost 31,500 facilities are expected to be 
reviewed in 1997.

Federal administration

    The bill includes $325,925,000 to support Federal 
administrative activities related to the Medicare and Medicaid 
programs. This is $33,917,000 below the Administration request 
and the same as the amount available in 1996.
    The Committee urges HCFA to modify its regulations to 
clarify that where a Medicare certified physical or 
occupational therapist in independent practice engages licensed 
physical or occupational therapists, it is not necessary for 
the Medicare certified therapist in independent practice to be 
on the premises in order for those services to be reimbursed as 
covered Medicare services.
    The Committee notes that thousands of lung reduction 
surgeries are being performed each year in the United States, 
and that demand for this procedure is growing. The Committee 
further notes that the Health Care Financing Administration 
reimbursed this procedure when requested to do so through 
Medicare until December, 1995. The Committee directs HCFA to 
report to the Congress within 120 days with an explanation of 
the termination of payment for these procedures and a plan, for 
periodic reconsideration, which will address future Medicare 
funding of lung volume reduction surgery.
    The Committee is pleased that HCFA is sponsoring a clinical 
trial to determine the efficacy of lung reduction surgery 
techniques. The Committee urges HCFA to conduct a comprehensive 
trial that includes all the techniques currently used so that 
reimbursement decisions can be made on the basis of full and 
complete data.
    The Committee encourages HCFA, prior to clarifying any 
reimbursement policies pertaining to provider-based rural 
health clinics, to study and evaluate the effect of reducing 
these payments upon access to and availability of medical 
services and the quality of health care services.

                Administration for Children and Families

                   FAMILY SUPPORT PAYMENTS TO STATES

    The bill includes authority to spend $18,101,000,000 during 
fiscal year 1997 for Family Support Payments to States, an 
increase of $86,693,000 over the appropriation for fiscal year 
1996 and the same as the budget request. The fiscal year 1997 
amount includes $4,800,000,000 in advance funding that was 
provided in the fiscal year 1996 Act.
    This appropriation combines funding for the assistance 
payments and child support enforcement programs. The assistance 
payments programs are administered by State welfare agencies 
under individual plans developed by each State consistent with 
Federal requirements. The largest of the programs is Aid to 
Families with Dependent Children (AFDC) which provides basic 
cash benefits for needy children. The Federal program finances 
on average over 50 percent of the cash benefits provided to 
AFDC households.
    The appropriation includes $1,867,000,000 for Emergency 
Assistance payments, an increase of $893,000,000 over the 
fiscal year 1996 appropriation. These payments were established 
to provide temporary assistance to needy families with children 
and are administered by State and local welfare agencies under 
State plans approved by the Department. The appropriation 
provides assistance to prevent destitution of children and to 
meet emergency needs resulting from natural disasters, 
homelessness, family violence, child abuse and neglect. 
Benefits may include payments for rent, utilities, food, 
clothing, temporary shelter, alternative living arrangements, 
medical assistance, and family support services. The Committee 
is concerned about the impact of the Administration's action 
transmittal of September 12, 1995 terminating Federal funding 
under the Emergency Assistance program for the costs of 
benefits and services provided to children in the juvenile 
justice system, effective December 31, 1995. The Committee 
encourages the Secretary to reconsider the effective date of 
this policy change and delay implementation of the action 
transmittal until September 30, 1996 in order to allow States 
adequate time to plan to replace federal funds with alternative 
resources.
    The Child Support Enforcement program was created to locate 
absent parents, enforce their support obligations, and 
establish paternity. The Federal government provides over 80 
percent of the costs incurred by State and local governments in 
administering the program.
    The appropriation includes $1,147,000,000 for the child 
care expenses authorized by Title IV-A of the Social Security 
Act for participants in the JOBS program and transitional child 
care for up to 12 months for former AFDC recipients who have 
left the rolls due to increased income from employment. In 
addition to this amount, the appropriation includes 
$300,000,000 for the At-Risk Child Care program established in 
the Omnibus Budget Reconciliation Act of 1990 to serve low-
income working families in need of child care and at risk of 
becoming eligible for AFDC.
    The bill also provides an advance appropriation of 
$4,700,000,000 for fiscal year 1998 to ensure timely completion 
of first quarter payments.

               JOB OPPORTUNITIES AND BASIC SKILLS (JOBS)

    The bill provides $1,000,000,000 for the Job Opportunities 
and Basic Skills (JOBS) program, which is the same as the 
budget request and the comparable fiscal year 1996 
appropriation. The JOBS program provides education, training 
and employment services to AFDC recipients to help them obtain 
employment leading to self-sufficiency and to avoid long-term 
welfare dependency. All 50 states and 77 Indian Tribes and 
Alaska Native Organizations operate JOBS programs which must 
include high school or equivalent education, basic and remedial 
education, and services for those with limited English 
proficiency. JOBS programs must also provide job skills 
training, job readiness, job development and placement 
services, and at least two of the following programs: group and 
individual job search, on-the-job training, work 
supplementation, and community work experience. States must 
provide matching funds and receive Federal funds up to the 
limit of their entitlements as determined by formula.

                   LOW INCOME HOME ENERGY ASSISTANCE

    The bill provides $900,000,000 for the Low Income Home 
Energy Assistance program (LIHEAP), an increase of $3,000 above 
the amount made available through regular appropriations in 
fiscal year 1996, and $100,000,000 less than the budget 
request. In addition, $120,000,000 in prior year funding and 
$300,000,000 provided in the fiscal year 1996 funding bill is 
available for LIHEAP upon Presidential submission to Congress 
of a budget request designating the amount of the request as an 
emergency for the purposes of the Budget Act. Therefore, in 
combination with prior year appropriations, the bill makes 
available a total of $1,320,000,000 for LIHEAP for fiscal year 
1997.
    The Committee notes that according to testimony provided by 
the Administration during the fiscal year 1997 budget hearings, 
real energy prices have declined dramatically in recent years 
and the composite average price for all fuel types has declined 
23% since 1983. At the same time, the Administration testified 
that LIHEAP recipients spend 25% less of their household income 
on residential heating than in 1983 and 36% less on space 
heating.
    The LIHEAP program provides assistance to low income 
households in meeting the costs of home energy. Funds are 
provided through grants to States, Indian Tribes and 
territories, and are used for summer cooling and winter 
heating/crisis assistance programs.

                     REFUGEE AND ENTRANT ASSISTANCE

    The bill provides $412,076,000 for refugee assistance 
programs, $9,910,000 above the fiscal year 1996 appropriation 
and $30,540,000 above the President's request. In addition, the 
bill provides the Office of Refugee Resettlement (ORR) the 
authority, not requested by the President, to carry over 
unexpended funds from the fiscal year 1995 appropriation to 
reimburse the cost of services provided in fiscal years 1996 
and 1997. The Committee anticipates this provision will make 
available to ORR an additional $9,300,000.

Transitional and Medical Services

    The bill provides $246,502,000 for transitional and medical 
services, a decrease of $16,765,000 below the comparable fiscal 
year 1996 appropriation and the same as the budget request. The 
bill continues the policy of providing eight months of 
assistance to new arrivals, and the reduction below the fiscal 
year 1996 appropriation is due entirely to fewer anticipated 
arrivals in fiscal year 1997, not to reductions in service. The 
transitional and medical services activity provides funding for 
the state-administered cash and medical assistance program 
which assists refugees who are not categorically eligible for 
AFDC or Medicaid, the unaccompanied minors program which 
reimburses States for the cost of foster care, and the 
voluntary agency grant program in which participating national 
refugee resettlement agencies provide resettlement assistance 
with a combination of Federal and matched funds.

Social Services

    The bill provides $110,882,000 for social services, an 
increase of $30,080,000 over the comparable fiscal year 1996 
appropriation and the budget request. Funds are distributed by 
formula as well as through the discretionary grant making 
process for special projects. In addition, the Committee has 
transferred activities previously funded through the Targeted 
Assistance program to the Social Services program. The 
Committee agrees that $19,000,000 is available for assistance 
to serve communities affected by the Cuban and Haitian entrants 
and refugees whose arrivals in recent years have increased. The 
Committee has set-aside $11,079,000 for increased support to 
communities with large concentrations of refugees whose 
cultural differences make assimilation especially difficult 
justifying a more intense level and longer duration of Federal 
assistance.
    The Committee recommends that ORR give special 
consideration in allocating grant funding to applicants 
providing rehabilitation services for victims of physical and 
mental torture. The Committee requests that ORR be prepared to 
testify regarding its activities in support of victims of 
torture during the fiscal year 1998 budget hearings.

Preventive Health

    The bill provides $4,835,000 for preventive health 
activities, an increase of $2,135,000 above the comparable 
fiscal year 1996 appropriation and the same as the budget 
request. The Committee commends the Department for its recent 
protocol on domestic preventive health activities for refugees 
and intends that funding provided for preventive health be 
expended in full accord with the fiscal year 1997 budget 
request submitted to the Congress.

Targeted Assistance

    The bill provides $49,857,000 for the targeted assistance 
program, a decrease of $5,540,000 below the fiscal year 1996 
appropriation and $460,000 above the budget request. The 
Committee has transferred funds for discretionary activities 
previously provided under targeted assistance to the social 
services programs. The Committee intends that remaining funding 
be allocated according to the formula contained in the House 
and Senate versions of H.R. 2202.

                 Child Care and Development Block Grant

    The bill includes $950,000,000 for the Child Care and 
Development Block Grant program, which is an increase of 
$15,358,000 over the fiscal year 1996 appropriation and 
$98,825,000 below the request. This appropriation is expected 
to provide child care for about 740,000 children in fiscal year 
1997. The Committee notes that this program again this year 
lacks an authorization for appropriations. The bill provides 
that $13,000,000 of the amount appropriated shall become 
available for obligation on October 1, 1996. The Department is 
instructed to obligate those funds immediately for the purposes 
of supporting resource and referral programs and before- and 
after-school services.
    The Child Care and Development Block Grant program was 
enacted in the Omnibus Budget Reconciliation Act of 1990 to 
increase the availability, affordability and quality of child 
care by providing funds to States, Territories and Indian 
Tribes for child care services for low-income families. Under 
the authorizing law, 75 percent of the Block Grant funds must 
be used for child care services provided to eligible children 
on a sliding fee scale basis, as a contracted service or 
through a certificate program; and for activities designed to 
improve the quality and availability of care. Of these 75 
percent funds, grantees must spend at least 90 percent for 
services, and no more than 10 percent on administration. Of the 
remaining 25 percent Block Grant funds, 75 percent must be used 
for early childhood development and before- and after-school 
services; 20 percent must be used for improvement in the 
quality of child care services, including resource and referral 
programs; and the remaining 5 percent may be used for any of 
the stated purposes.
    The Committee feels strongly that the States should be 
addressing the matters of before- and after-school care and the 
establishment of resource and referral programs with the funds 
provided in this program. The law seems clear that the States 
are to do this. The Department should issue instructions to the 
States to strongly encourage them to support these important 
services.

                      SOCIAL SERVICES BLOCK GRANT

    The bill provides $2,480,000,000 for the social services 
block grant (SSBG), which represents an increase of $99,000,000 
over the amount provided in fiscal year 1996 and a decrease of 
$320,000,000 below the budget request and the amount authorized 
for fiscal year 1997.
    SSBGs are designed to encourage States to furnish a variety 
of social services to needy individuals to prevent and reduce 
dependency, help individuals achieve and maintain self-
sufficiency, prevent or reduce inappropriate institutional 
care, secure admission or referral for institutional care when 
other forms of care are not appropriate, and prevent neglect, 
abuse and exploitation of children and adults.
    Funds are distributed to the territories in the same ratio 
such funds were allocated in 1981. The remainder of the 
appropriation is distributed to the States and the District of 
Columbia according to population.

                Children and Families Services Programs

    The bill includes $4,881,394,000, an increase of 
$94,066,000 over the fiscal year 1996 amount and a reduction of 
$419,285,000 below the budget request. This account finances a 
number of programs aimed at enhancing the well-being of the 
Nation's children and families, particularly those who are 
disadvantaged or troubled. The Committee notes that a 
significant number of programs in this account have no 
authorization for appropriations for fiscal year 1997.

Head Start

    The bill includes $3,600,000,000 for the Head Start program 
for fiscal year 1997, an increase of $30,671,000 over the 
fiscal year 1996 amount and $381,000,000 below the budget 
request. The Committee notes that this program was increased by 
$2.4 billion from fiscal year 1989 to fiscal year 1996; this 
was a 200 percent increase in six years.
    Head Start provides comprehensive development services for 
children and their families. Intended for preschoolers from low 
income families, the program seeks to foster the development of 
children and enable them to deal more effectively with both 
their present environment and later responsibilities in school 
and community life. Head Start programs emphasize cognitive and 
language development, emotional development, physical and 
mental health, and parent involvement to enable each child to 
develop and function at his or her highest potential. At least 
ten percent of enrollment opportunities in each State are made 
available to handicapped children.
    Grants to carry out Head Start programs are awarded to 
public and private non-profit agencies. Grantees must 
contribute 20 percent of the total cost of the program; this is 
usually an in-kind contribution. The Head Start Act does not 
include a formula for the allotment of funds to grantees; 
however, it does require minimum State allocations. The Act 
requires 87 percent of Head Start's appropriation to be 
distributed among States based on: (1) the relative number of 
poor children; and (2) the number of recipients of Aid to 
Families with Dependent Children in each State as compared to 
all States. In addition, grants, cooperative agreements and 
contracts are awarded in the areas of research, demonstration, 
technical assistance and evaluation from the remaining 13 
percent.
    There has been much concern expressed that the program has 
had difficulty in properly managing and programming the huge 
increase in funding over the past several years; local grantees 
in many cases have been hard pressed to find qualified teachers 
and decent facilities to accommodate increased enrollment.
    Despite the fact that the program is 30 years old, rigorous 
evaluation of it has been minimal. The Committee believes the 
Department should establish and maintain a rigorous evaluation 
component for Head Start. We need to have hard evidence that 
the program is doing what it is supposed to be doing. Further, 
solid performance standards have been lacking in Head Start, 
although the Department claims to be making progress. The 
Department must continue to give close attention to completing 
and enforcing the new performance standards.
    The Committee applauds the Head Start Bureau for 
recognizing the needs of homeless children and their families 
by continuing to fund slots for homeless preschoolers in the 
fiscal year 1996 budget. Homeless families represent the 
fastest growing portion of the homeless population, yet most 
Head Start and other preschool programs lack the specialized 
training and outreach necessary to serve these high-risk 
children. The Committee urges the Bureau to continue its 
investment in programs which meet the needs of homeless 
children and their families in fiscal year 1997.

Runaway and homeless youth

    The bill includes $58,602,000 for runaway and homeless 
youth activities, the same as the amount available for fiscal 
year 1996 and a reduction of $9,970,000 below the budget 
request. The budget request proposed to consolidate these 
programs; the Committee has not done this because it is not 
authorized by law.
    The basic program, for which the bill includes $43,653,000, 
the same as the fiscal year 1996 amount, is intended to help 
address the needs of runaway and homeless youth and their 
families through support of activities sponsored by State and 
local governments and private nonprofit agencies. Grants are 
used to develop and strengthen community-based facilities which 
are outside the law enforcement structure and the juvenile 
justice system. The Runaway and Homeless Youth Act mandates 
that funds for this program be allocated to each State on the 
basis of its youth population under 18 years of age in 
proportion to the national total. Runaway Youth programs have 
been very successful in reuniting runaway children with their 
families and preventing runaways which, in turn, decreases the 
number of high school dropouts, incidents of juvenile drug 
abuse, crime and incarceration.
    The Committee has provided $14,949,000 for the transitional 
living program for homeless youth, the same as the fiscal year 
1996 amount. The program was created to serve those young 
people who cannot return home. Funds are used to provide 
appropriate shelter and services for up to 18 months for youths 
ages 16-20 who have no safe available living arrangements. 
Services are designed to help youth move towards self-
sufficient and independent living, and to prevent long-term 
dependency on social services. In addition to shelter, such 
services may include education, vocational training, basic life 
skills, interpersonal skills building, and mental and physical 
health care. Grants are available to public and private 
programs.
    The bill includes no funding for the drug education and 
prevention program for runaway and homeless youth. The purpose 
of this program is to reduce and prevent the illicit use of 
drugs by runaway and homeless youth. This same purpose can be 
achieved more efficiently by the States through the Federally-
funded substance abuse block grant which is funded at $1.2 
billion for fiscal year 1997. The elimination of small 
categorical programs also saves Federal administrative costs, 
and it reduces bureaucratic paperwork and grant forms that must 
be filled out by the local providers.
    In addition, the bill includes $2,000,000 for a program 
funded from the Violent Crime Trust Fund which is designed to 
reduce the sexual abuse of runaway youth. The original budget 
request of the President did not propose to fund this program; 
the fiscal year 1996 amount was $5,558,000.

Child abuse

    For child abuse prevention and treatment, the Committee 
recommends $35,180,000, the same as the fiscal year 1996 level. 
The total amount recommended includes $21,026,000 for State 
grants and $14,154,000 for discretionary projects; these 
amounts are the same as the fiscal year 1996 amounts. No 
funding is provided for the Advisory Board on Child Abuse and 
Neglect. The child abuse programs attempt to improve and 
increase activities at all levels of government which identify, 
prevent, and treat child abuse and neglect through State 
grants, technical assistance, research, demonstration, and 
service improvement.

Temporary child care/crisis nurseries

    The bill includes no separate categorical funding for 
temporary child care for handicapped children and crisis 
nurseries. The fiscal year 1996 amount was $9,835,000. The 
President also proposes to end this separate program in his 
budget request. For the past ten years, these funds have 
supported demonstration projects to help private and public 
agencies and organizations to provide temporary non-medical 
child care for handicapped children and children with chronic 
or terminal illnesses; and provide crisis nurseries and 
referral to support services for abused or neglected children 
or children at risk of abuse and neglect. The Committee 
believes that after ten years the demonstration period must 
come to an end. Funding for these types of activities is 
available through other funding sources, including State and 
local programs and other Federal programs.

Abandoned infants assistance

    The Committee recommends $12,251,000 for the Abandoned 
Infants Assistance Act, the same as the fiscal year 1996 
appropriation and a reduction of $2,155,000 from the budget 
request. The purpose of this program is to provide financial 
support to public and non-profit private entities to develop, 
implement, and operate demonstration projects that will prevent 
the abandonment of infants and young children; identify and 
address their needs, especially those infected with HIV; assist 
such children to reside with their natural families or in 
foster care, as appropriate; provide respite care for families 
and caregivers; and recruit and train caregivers. Grantees must 
establish a care plan and case review system for each child.

Child welfare services

    The bill includes $277,389,000 for child welfare services, 
the same as the fiscal year 1996 amount and $14,600,000 below 
the budget request. This program authorized by title IV-B of 
the Social Security Act provides grants to States to assist 
public welfare agencies establish, extend, and strengthen child 
welfare services in order to enable children to remain in their 
homes under the care of their parents, or, where that is not 
possible, to provide alternative permanent homes for them.
    The bill includes $4,000,000 for child welfare training; 
the fiscal year 1996 amount was $2,000,000. The Committee 
recognizes the need for trained, skilled and qualified child 
welfare protection personnel. This program provides teaching 
and traineeship grants to schools of social work to train 
social workers in the specialty of child welfare.

Adoption opportunities

    The Committee recommends $11,000,000 for adoption 
opportunities, the same as the fiscal year 1996 amount. This 
activity funds a national adoption data gathering and analysis 
system, including a national information exchange, and 
implements adoption training and technical assistance programs.

Family violence

    The Committee recommends $57,601,000 for family violence 
prevention and services, which is an increase of $9,958,000 
over the fiscal year 1996 level and $9,982,000 over the March 
budget request. This program is designed to assist States in 
efforts to prevent family violence and to provide immediate 
shelter and related assistance for victims of family violence 
and their dependents, and to provide for technical assistance 
and training relating to family violence programs to State and 
local public agencies (including law enforcement agencies), 
nonprofit private organizations, and persons seeking such 
assistance. As was the case in fiscal year 1996, a portion of 
this funding, $24,958,000, is derived from the Violent Crime 
Trust Fund. The bill also includes $400,000 to continue funding 
a domestic violence hotline. These funds also come from the 
Trust Fund.
    The President has requested an additional $13,600,000 to 
fund a community schools program under the 1994 Crime Bill; the 
Committee does not recommend funding for this. These activities 
can be funded under other Federal programs.

Social services research

    As was the case in fiscal year 1996, the bill includes no 
separate funding for social services research. These funds in 
the past have supported research, demonstration, evaluation and 
dissemination activities. This includes such things as welfare 
reform, youth services and child support enforcement. 
Demonstrations related to the AFDC program have also been 
carried out.

Teen pregnancy prevention

    The Committee has not approved the $30,000,000 request from 
the Administration to fund another teen pregnancy initiative. 
It seems to the Committee that there are other Federal programs 
that are already pursuing this goal, such as the adolescent 
family life program, the maternal and child health program, 
community health centers and the family planning program. It is 
not apparent to the Committee why the taxpayers should spend 
$30,000,000 to start another Federal program which clearly 
duplicates what others are already doing.

Community-based resource centers

    The bill includes no funding for this program for fiscal 
year 1997. The fiscal year 1996 amount was $23,000,000. The 
President's budget requested a substantial increase to 
$50,569,000 for fiscal year 1997.
    According to the Department, the purpose of this program is 
``to assist each State in implementing/enhancing a statewide 
system of family resource services through innovative funding 
mechanisms * * * and to support * * * community-based child 
abuse and neglect prevention activities * * *''. It would seem 
that the States should be doing these things on their own 
without financial assistance from the Federal government. It 
would just be sound management on the part of the States to 
pull together and coordinate various social service programs 
for families. Further, child abuse activities are already 
funded under the Child Abuse Prevention and Treatment Act 
grants to States.

Developmental disabilities

    For programs authorized by the Developmental Disabilities 
Assistance Act, the Committee recommends $108,982,000, a 
reduction of $5,250,000 below the amount available for fiscal 
year 1996 and $12,868,000 below the budget request. The total 
includes $64,803,000 for allotments to the States to fund State 
Councils, the same as fiscal year 1996. These Councils engage 
in such activities as planning, policy analysis, 
demonstrations, training, outreach, interagency coordination, 
and public education. They do not provide direct services to 
the developmentally-disabled population.
    In addition, $26,718,000 will be available to the States to 
be used for operating an advocacy program to protect the rights 
of the developmentally disabled. This is the same as the fiscal 
year 1996 level.
    The bill includes no funding for special discretionary 
projects for training, technical assistance and demonstration. 
The fiscal year 1996 funding level was $5,250,000. These 
activities are clearly not a high priority in times of severe 
fiscal constraint, and they do not provide any direct services 
to developmentally-disabled people.
    The Committee approves a total of $17,461,000 for grants to 
university affiliated facilities and satellite centers to 
support the cost of administering and operating demonstration 
facilities and interdisciplinary training programs. This is the 
same as the fiscal year 1996 level. These are discretionary 
grants to public and private non-profit agencies affiliated 
with a university. These grants provide basic operational and 
administrative core support for these agencies. In addition, 
these funds support interdisciplinary training, community 
services, technical assistance to State agencies and 
information dissemination.

Native American programs

    The bill includes $34,933,000, the same as the fiscal year 
1996 level and a reduction of $3,449,000 below the amount 
requested in the budget. The Administration for Native 
Americans assists Indian Tribes and Native American 
organizations in planning and implementing their own long-term 
strategies for social and economic development. In promoting 
social and economic self-sufficiency, this organization 
provides financial assistance through direct grants for 
individual projects, training and technical assistance, and 
research and demonstration programs.

Community Services Block Grant

    The bill includes $531,941,000 for Community Services 
activities, which is $96,482,000 above the fiscal year 1996 
level and $142,341,000 over the budget request.
    For the State Block Grant, the bill includes $489,600,000, 
which is an increase of $100,002,000 over the fiscal year 1996 
level. The President proposed no increase in the program for 
fiscal year 1997. This program provides grants to States for 
services to meet employment, housing, nutrition, energy, 
emergency services, and health needs of low-income people. By 
law, 90% of these funds are passed directly through to local 
community action agencies which have previously received block 
grant funds. The Committee has become convinced that this 
program provides the kind of flexibility at the local level 
necessary to assist people who are in temporary need of 
government assistance to get back on their feet. As a result, a 
substantial funding increase has been provided. The Committee 
expects to be able to see quantifiable results because of the 
increased funding.
    The bill includes $27,332,000 for community economic 
development grants, which is the same as the fiscal year 1996 
level. The President proposed not to fund this. These 
activities provide assistance to private, locally-initiated 
community development corporations which sponsor enterprises 
providing employment, training and business development 
opportunities for low-income residents. The bill also includes 
$3,009,000 for rural community facilities, the same as the 
fiscal year 1996 level. The President proposed no funding for 
this. These grants are provided to multi-state, regional, 
private nonprofit organizations to provide training and 
technical assistance to small, rural communities in meeting 
their community facilities needs. The Committee believes that 
these two activities could not be done by local community 
action agencies.
    The bill includes $12,000,000 for the National Youth Sports 
Program, which is on increase of $480,000 over the fiscal year 
1996 level. The President proposed no funding for this program. 
These funds are made available to a private, non-profit 
organization to provide recreational activities for low-income 
youth, primarily in the summer months. College and university 
athletic facilities are employed in the program.
    The bill provides no funding for the Community Food and 
Nutrition program, which was funded at $4,000,000 in fiscal 
year 1996. There is no budget request for it. The program does 
not provide any direct feeding services. It provides grants to 
public and private agencies to coordinate existing food 
assistance programs, to identify sponsors of child nutrition 
programs and attempt to initiate new programs and to do 
advocacy work at the State and local levels. These are 
activities that could just as easily and probably more 
appropriately be funded by the States and local governments. It 
is important to try to eliminate these kinds of small 
categorical Federal funding streams, each with its own set of 
rules and regulations, grant applications and Federal staff.

Program direction

    The Committee has approved $147,115,000 for program 
direction expenses of the Administration for Children and 
Families, a reduction of $3,002,000 below the fiscal year 1996 
level and $13,164,000 below the budget request. This represents 
a 2 percent reduction below the fiscal year 1996 level.
    The Committee understands that the agency has created an 
advisory group to address the issue of private funding in the 
JOBS program. The Committee strongly urges the Secretary to 
establish, within three months, consistent policies to address 
this matter, especially in those cases where the private funds 
are provided in the nature of a ``donation'' as all or part of 
the non-Federal share of program costs in the JOBS program.

                    FAMILY PRESERVATION AND SUPPORT

    The bill provides $240,000,000 for the family preservation 
and support account, an increase of $15,000,000 over the 
comparable fiscal year 1996 appropriation and the same as the 
budget request. This capped entitlement program provides grants 
to States to develop and expand innovative child welfare 
services including family preservation, family reunification, 
and community-based family support services for families at-
risk or in crisis. The fiscal year 1997 funding will provide 
the third year of funding to States and Indian Tribes to 
provide family preservation and support services based on State 
and Tribal plans developed with fiscal year 1994 funding.

       PAYMENTS TO STATES FOR FOSTER CARE AND ADOPTION ASSISTANCE

    The bill provides $4,445,031,000 for payments to States for 
foster care and adoption assistance, an increase of 
$122,793,000 over the fiscal year 1996 appropriation and the 
same as the budget request.
    -Of the total appropriation, the bill provides 
$3,807,143,000 for the foster care program which provides 
maintenance payments to States on behalf of children who must 
live outside their homes. This amount represents an increase of 
$64,805,000 above the fiscal year 1996 appropriation and is the 
same as the budget request. The appropriation is sufficient to 
fund estimated costs under current law and is based on an 
estimated average of 285,000 children served per month, an 
increase of 12,100 over the estimated fiscal year 1996 monthly 
average. According to the budget request, the number of claims 
for foster care payments continues to increase substantially 
due to new caseloads related to crack cocaine use, AIDS and 
other relatively intractable problems. In addition, payments 
have increased in some States for relative caregivers and State 
efforts to more thoroughly review their caseload for 
eligibility for Federal payments.
    The bill also includes for the first time an advance 
appropriation of $1,111,000,000 for the first quarter of fiscal 
year 1998. The Administration requests this advance 
appropriation for the first time in order to ensure timely 
completion of first quarter grant awards.
    Within the total appropriation the bill provides 
$567,888,000 for adoption assistance, the same as the budget 
request and an increase of $57,988,000 over the fiscal year 
1996 appropriation. This program provides training for parents 
and State administrative staff as well as payments on behalf of 
categorically eligible children considered difficult to adopt. 
This annually appropriated entitlement is designed to provide 
alternatives to long, inappropriate stays in foster care by 
developing permanent placements with families. In fiscal year 
1997, all States and the District of Columbia are expected to 
participate in this program. The budget request reflects an 
estimate of 131,200 children served per month, an increase of 
12,400 over the monthly estimate for fiscal year 1996 of 
118,800. The Committee notes that according to the budget 
request, the appropriation for this program has more than 
doubled since the fiscal year 1992 appropriation of 
$220,726,000. At the same time, the number of children served 
has increased from 60,000 to an estimated 131,200. The 
Committee directs the Department to submit data regarding the 
net cost-effectiveness of this program with the fiscal year 
1998 budget justification.
    Within the total appropriation for this account, the bill 
provides $70,000,000 for the independent living program, the 
same as the fiscal year 1996 appropriation and the budget 
request. The program is designed to assist foster children age 
16 or older to make successful transitions to independence. 
Funds assist children to earn high school diplomas, receive 
vocational training, and obtain training in daily living 
skills. Funds are awarded to States on the basis of the number 
of children on behalf of whom Federal foster care payments are 
received.

                        Administration on Aging

                        Aging Services Programs

    For programs administered by the Administration on Aging, 
the Committee recommends a total of $810,545,000, which is 
$18,775,000 below the fiscal year 1996 level and $17,592,000 
below the budget request. This account finances all programs 
under the Older Americans Act in this bill, with the exception 
of the Community Services Employment Program under title V, 
which is appropriated to the Department of Labor. However, in 
fiscal year 1997, title V funds will be transferred to, and the 
program administered by, the Administration on Aging. The 
President proposed this transfer, and the authorizing 
committees have indicated that they are in agreement with it. 
However, the transfer of funds is contingent upon enactment of 
the authorizing legislation. The Committee notes that the older 
Americans programs again this year lack an authorization for 
appropriations.

Supportive services and centers

    The Committee has included $300,556,000 for support 
services and centers. The amount provided is the same as the 
fiscal year 1996 level and an increase of $5,769,000 over the 
budget request. Funds for this program are awarded to each 
State with an approved State plan. The formula under title III 
of the Older Americans Act mandates that no State be allotted 
less than the total amount allotted to it in fiscal year 1987. 
The statute also requires that additional funds be distributed 
on the basis of each State's proportionate share of the total 
age 60 and over population, with no State receiving less than 
one-half of one percent of the funds awarded. The funds 
contained in the bill will support coordinated, comprehensive 
service delivery systems at the local level.
    The States have the ability under the basic law to transfer 
up to 20% of funds appropriated between the senior centers 
program and the nutrition programs; this allows the State to 
concentrate its resources in the program it deems most 
critical. Many States do transfer funds into this program from 
the congregate meals program.

Ombudsman/elder abuse

     The bill includes no separate funding for the State long-
term care ombudsman activities. The fiscal year 1996 funding 
level was $4,449,000. This separate appropriation is a funding 
stream to finance the staffing of State Offices of Ombudsman 
Services for older people. This funding is a relatively small 
portion of total funding for this purpose; States use funding 
under title III of the Older Americans Act, the basic senior 
centers and nutrition programs, and they also use some of their 
own funds. In fiscal year 1994, over $41 million was spent for 
this purpose. It is not necessary to also have this small 
separate appropriation for this purpose.
    The bill includes no separate funding for the elder abuse 
prevention program authorized by title VII of the Older 
Americans Act. The fiscal year 1996 funding level was 
$4,732,000. This is basically a program to call attention to 
the problem of elder abuse, and it would not appear to be a 
Federal responsibility. Such an effort is certainly something 
that could be financed through the private sector through the 
use of public service ads.
    The Committee is trying to reduce the number of small 
categorical programs, all of which have separate grant 
applications, rules and regulations and Federal staff. This 
effort is especially pronounced where there are other funding 
sources available to accomplish the same purpose.

Pension counseling

    As was the case in the fiscal year 1996 appropriations act, 
the bill includes no funding for an outreach and counseling 
program authorized under section 741 of the Older Americans 
Act. This activity should be carried out by the local area 
agencies on aging with funds provided under title III of the 
Older Americans Act. There is really no justification for a 
separate small categorical program to counsel older people 
about Medigap policies, long-term care insurance, pensions, 
public assistance programs and food stamps, all of which can be 
done under the broader title III authorities. Information on 
these activities is available in a number of different places. 
Further, this is a State formula grant program that sends small 
amounts of money to all 50 States. A number of States received 
as little as $10,000 a year under the formula, hardly enough to 
have any impact.

Preventive health

    The bill includes no separate funding for preventive health 
services authorized under part F of title III of the Act. The 
fiscal year 1996 funding level was $15,623,000. This activity 
should be carried out by the local area agencies on aging with 
funds provided under title III. Separate small categorical 
programs to provide certain preventive health services are 
expensive to administer and have little impact on the vast 
majority of seniors. Further, there are other Federal programs 
that provide similar kinds of services. These would include the 
preventive health services block grant, the breast cancer 
screening and control program and the chronic diseases program 
in the Centers for Disease Control and Prevention. In addition, 
the private sector does some health screening activities as 
well. This would include such groups as the American Heart 
Association and the American Cancer Society.

Nutrition programs

    For congregate nutrition services, the Committee includes 
$364,535,000, the same as the fiscal year 1996 level and an 
increase of $7,516,000 over the budget request. For home-
delivered nutrition services, the Committee provides 
$105,339,000, the same as the fiscal year 1996 amount and 
$11,148,000 over the budget request. These programs are 
intended to address some of the difficulties confronting older 
individuals, namely: nutrition deficiencies due to inadequate 
income, lack of adequate facilities to prepare food, and social 
isolation. About 226 million meals will be provided either in 
congregate sites or through the home delivery program.
    The States have the ability under the basic law to transfer 
up to 20% of funds appropriated between the senior centers 
program and the nutrition programs; this allows the State to 
concentrate its resources in the program it deems most 
critical.
    The nutrition programs also collect substantial sums each 
year in voluntary contributions from participants; private 
sector funds are also contributed. In fiscal year 1994, over 
$101 million was collected for the congregate nutrition program 
and over $72 million for the home-delivered program. Volunteers 
also make a significant contribution to these programs.

Frail elderly services

    For frail elderly in-home services the bill includes 
$9,263,000, the same amount as the fiscal year 1996 
appropriation and the budget request. These funds will be used 
to assist frail older persons in maintaining their independence 
and self-sufficiency. By supporting the provision of services 
to frail older people in their homes, the funds will help the 
vulnerable elderly avoid institutionalization and increase 
their access to needed assistance.

Grants to Indian tribes

    The bill provides $16,057,000 for grants to Indian tribes. 
This is the same as the fiscal year 1996 amount and the budget 
request. Funds under this program are awarded to tribal 
organizations to be used to promote opportunities for older 
Indians, to secure and maintain independence and self-
sufficiency, and to provide transportation, nutrition, health 
screening and other services to help meet the needs of this 
population.

Research, training and special projects

    The bill provides no funding for research, training and 
special projects under title IV of the Older Americans Act. The 
fiscal year 1996 funding level was $2,850,000. The President 
requested $11,666,000 for fiscal year 1997. Funds under this 
program were used to support education and training activities 
for personnel working in the field of aging and to finance 
research, development, and demonstration projects. Although the 
Committee agrees that some of these activities are important to 
older Americans, it simply does not have the discretionary 
funding resources to fund them this year.

Program administration

    The bill includes $14,795,000 for program administration 
expenses of the Administration on Aging. This is $302,000 below 
fiscal year 1996 amount and $1,994,000 below the budget 
request. This is a 2 percent reduction below the fiscal year 
1996 level. This activity provides administrative and 
management support for all Older Americans Act programs 
administered by the Department. No funding is provided for the 
Federal Council on Aging.

                        Office of the Secretary

                    general departmental management

    The bill includes $154,850,000 for general departmental 
management, an increase of $9,296,000 over the fiscal year 1996 
amount and $9,500,000 over the budget request. Included in this 
amount is authority to spend $5,851,000 from the Medicare trust 
funds. The Committee has not provided separate funding for the 
Office of Emergency Preparedness, the Office of Research 
Integrity or the Office of Disease Prevention and Health 
Promotion. The Department will have to fund these activities 
within total funds available for departmental management. The 
Committee expects that any reductions below the fiscal year 
1996 level will be taken in the Offices of the Secretary and 
Deputy Secretary, the Assistant Secretary for Legislation, the 
Assistant Secretary for Public Affairs, the immediate office of 
the Assistant Secretary for Health and the Office of 
Intergovernmental Affairs.
    This appropriation supports those activities that are 
associated with the Secretary's roles as policy officer and 
general manager of the Department. The Office of the Secretary 
also implements Administration and Congressional directives, 
and provides assistance, direction and coordination to the 
headquarters, regions and field organizations of the 
Department. It also supports several small health activities 
that were formerly funded in the Office of the Assistant 
Secretary for Health.
    The Committee is concerned that the fragmentation of 
research, demonstration and evaluation authorities is a 
significant problem for the Department and that there seems to 
be little coordination among these different authorities. The 
Committee commends the Department on its ``Report on Research, 
Demonstration and Evaluation Activities and Funding Levels 
Requested for Fiscal Year 1997''. The Committee instructs the 
Department to continue to submit this document to the Committee 
as part of the President's budget request each year. In 
addition, the Committee wants the Department to expand its 
definition of activities covered by the report so that all 
health services research and related prevention research and 
demonstration activities of the National Institutes of Health 
are included.
    The Department is instructed to include, as a footnote 
within its audited financial statements, information on 
revenues, both to the Department and to the Federal Government, 
resulting from the activities of the Department's Inspector 
General and specifically to identify measurable ``funds put to 
better use'' as additional budgetary resources.
    Each of the departments under the Committee's jurisdiction 
is statutorily required to have audited financial statements 
covering all the department's accounts and activities. Congress 
enacted this requirement in the Government Management Reform 
Act of 1994 after having observed the benefits of the pilot 
program of audited financial statements that had been required 
by the Chief Financial Officers (CFO) Act of 1990. An audited 
financial statement is like a ``scorecard'' that relects a 
department's progress in achieving the significant financial 
management reforms required by the CFO Act, and in providing 
effective stewardship and management of government funds. 
Accordingly, the Committee expects the Department to work 
vigorously towards obtaining a clean opinion on its financial 
statements. The transfer and reprogramming authority the 
Committee has granted provides substantial flexibility to the 
Department and is particularly valuable during periods of 
increasing fiscal constraints. However, the Committee questions 
the extent to which agencies can properly exercise such 
authority and accurately account for affected funds if they 
have not made substantial progress towards achieving the CFO 
Act's financial management reforms. Accordingly, in subsequent 
years, the Committee will consider the Department's progress in 
making such reforms and in obtaining a clean opinion on its 
financial statements when scrutinizing requests for current 
appropriations and in deciding whether to continue, expand or 
limit transfer and reprogramming authority.
    Office of Research Integrity.--The Committee is aware of 
concerns expressed in some quarters concerning the operations 
of the Office of Research Integrity. There have been delays, 
sometimes lengthy, in some investigations undertaken; this is 
not fair to the parties involved. In addition, concerns have 
been expressed about the seeming lack of due process in the 
office's proceedings. These are troubling to the Committee. The 
Secretary is requested to review the operations of this office 
and, if she agrees that improvements are needed in some 
procedures, to submit a plan to the Committee outlining the 
needed improvements and what steps she plans to take to 
implement them.
    The Committee requests that the Secretary continue the 
Chronic Fatigue Syndrome Interagency Coordinating Committee 
(CFSICC). The Committee is concerned that with the elimination 
of the former Office of the Assistant Secretary for Health both 
the leadership and resources necessary to continue the CFSICC 
are jeopardized. The Committee believes that the Assistant 
Secretary for Health should chair the CFSICC and use this body 
to coordinate CFIDS research across the Public Health Service 
by creating a yearly action plan. The Committee encourages the 
Secretary to include the Health Resources and Services 
Administration as a member of the committee. The Committee is 
pleased that the process for granting a formal charter is near 
completion and expects that it will be finished expeditiously. 
The Committee recognizes that there is a consensus in the CFIDS 
community that the name chronic fatigue syndrome does not 
adequately describe the complex nature of the illness. The 
Committee asks the Secretary to convene a committee for the 
purpose of examining this issue and to report back within 6 
months of the bill's enactment with recommendations for a new 
scientific name or eponym that more appropriately describes the 
illness known as chronic fatigue syndrome.
    The Committee is concerned with the fragmentation of 
research on the safety of silicone breast implants and the 
relationship, or lack thereof, between silicone gel breast 
implants and connective tissue disease, classic auto-immune 
symptoms and other serious diseases. Since the Food and Drug 
Administration's action in 1992, access to silicone breast 
implants has been severely limited, leaving breast cancer 
patients with few health choices. While private studies have 
been completed on the safety of silicone breast implants, many 
women have questioned the validity of these studies. The 
Committee believes an independent study is warranted, and 
instructs the Secretary of Health and Human Services to enter 
into a contract with the Institute of Medicine of the National 
Academy of Sciences to conduct a general review of past and 
ongoing research on silicone breast implants.
    Growing numbers of children, especially children assisted 
by Medicaid, are enrolled in managed care plans that compete on 
the basis of the cost and quality of their health care. 
However, because children account for only a small portion of 
health care spending, most research devoted to measuring the 
quality of health care focuses on adult experience. As a 
consequence, the Committee recognizes the importance of HHS 
investments in health services and clinical research to 
evaluate and develop measures of the outcomes of pediatric 
health care. It also recognizes the need for documentation and 
coordination of funding in this area. The Committee requests 
the Secretary to prepare a report that describes pediatric 
outcomes research projects funded by HHS, annual funding for it 
in the last three fiscal years, and efforts to coordinate this 
research in order to maximize its cost effectiveness, 
particularly for children with special health care needs.
    The Committee continues to be concerned about funding 
levels for pediatric research, and believes a strong commitment 
to pediatric health research will help to treat, and ultimately 
prevent, crippling illnesses and diseases that afflict 
children. Accordingly, the Committee urges the Secretary to 
identify opportunities to enhance and strengthen research on 
effective injury and disease prevention for children within the 
Department's existing portfolio of health research. In 
addition, the Committee urges the National Institutes of Health 
to address any gaps in current research identified in its 
report to the Committee on the status of pediatric health 
research.
    The Committee is concerned about the Public Health Service 
policy stating that the data generated by federally funded 
grants is the property of the grantee, not the government, and 
is available only with permission of the grantee. While the 
Committee recognizes there could be unintended consequences 
from legislation mandating the release of data from federally-
funded studies, the Committee is sympathetic to American 
taxpayers who feel that research data supported by tax revenues 
should be available upon appropriate request. The Committee 
requests that the Secretary submit an analysis explaining the 
rationale for the current policy and recommending changes that 
would address the concerns raised about appropriate public 
access to Federally-supported data. This report, which should 
be submitted prior to the 1998 appropriations hearings, should 
also include information on how frequently the Public Health 
Service agencies are approached about their researchers 
refusing to release Federally-supported data.

Adolescent family life

    The bill provides $7,698,000 for the adolescent family life 
abstinence counseling program, the same as the fiscal year 1996 
appropriation and $1,511,000 above the President's request.

Physical fitness and sports

    The bill includes $1,000,000 to continue operation of the 
President's Council on Physical Fitness and Sports, the same as 
the fiscal year 1996 appropriation and the Administration 
request for fiscal year 1997. While the Committee believes the 
Council provides valuable service to the country, some of its 
activities are widely duplicated throughout the economy and can 
be provided with non-federal support.
    The Council seeks to improve the level of physical fitness 
nationwide through professional consultation, technical 
assistance, public information, program evaluation and program 
development which is provided to school systems, government 
agencies, employee organizations, private business and 
industry, and professional organizations.

Minority health

    The bill includes $33,000,000 for the Office of Minority 
Health, an increase of $6,000,000 over the fiscal year 1996 
appropriation and $13,055,000 over the President's budget 
request. The Committee has again this year provided funds for 
extramural construction, including $7,500,000 to continue last 
year's initiative and $4,000,000 for two new initiatives.
    According to the budget request, the Office of Minority 
Health works with Public Health Service agencies and other 
agencies of the Department in a ``catalytic, coordinative, 
advocacy and policy development role'' to establish goals and 
coordinate other activities in the Department regarding disease 
prevention, health promotion, service delivery and research 
relating to disadvantaged and minority individuals; conclude 
interagency agreements to stimulate and undertake innovative 
projects; support research, demonstration, and evaluation 
projects; and coordinate efforts to promote minority health 
programs and policies in the voluntary and corporate sectors.
    The principal mission is to improve the health status and 
quality of life for racial and ethnic minority populations in 
the United States by building local capacity for addressing 
health and human service problems. The Committee is concerned 
that improvements in medical science and in the systems 
designed to improve essential health care services have not 
adequately benefited racial and ethnic groups in underserved 
rural and inner city communities. The Committee encourages OMH 
to give priority consideration to long time producers of 
disadvantaged and minority primary care practitioners to 
explore avenues to improve health care services in this area.
    The Committee has provided adequate funding for the 
continuation and growth of a variety of competitive programs 
through the Public Health Service that emphasize improving the 
health status of disadvantaged populations, including racial 
and ethnic minorities. The need for strong support and 
continued emphasis on these programs is embodied in the mission 
of the Department of Health and Human Services.

Office on Women's Health

    The bill includes $8,862,000 for the Office on Women's 
Health, which is $3,500,000 over the fiscal year 1996 funding 
level and $6,292,000 above the Administration request. The 
Committee notes that each of the Public Health Service agencies 
under its jurisdiction supports an office or program which 
focuses on women's health. The Office on Women's Health advises 
the Secretary and provides Department-wide coordination of 
programs focusing specifically on women's health.
    Currently, women facing health problems, their families, 
women's health organizations, and health care providers must 
negotiate a maze of Federal agencies and private sector 
organizations to find appropriate information on women's 
health. While a great deal of information is available through 
the Department, in many instances it is difficult to find or 
access. The Office on Women's Health has established the 
National Women's Health Information Center to increase the 
access of the public and health care providers to critical 
information on the latest research, drugs and devices, public 
education messages, treatment options, and health service 
programs for women.
    The Committee is aware of the possibilities that imaging 
technologies developed by the intelligence, defense and space 
communities may improve the early detection and diagnosis of 
breast cancer. The Committee commends the Office on Women's 
Health for establishing the partnership to foster collaboration 
between the Department of Health and Human Services, CIA, DOD 
and the Department of Commerce, NASA, and other Federal 
agencies.
    HHS has undertaken a study of the current curricula used by 
medical schools to train medical students in women's health and 
to develop model women's health curricula to aid medical 
schools in improving their educational programs regarding the 
conditions, diseases, and health needs of women. The Committee 
encourages the NIH Office of Women's Health Research, the 
Health Resources and Services Administration, and the PHS 
Office on Women's Health to work together to continue this 
project and to expand it to other appropriate health 
professions. The Office on Women's Health should give 
consideration to developing a series of initiatives to 
encourage leadership of and by women in the field of women's 
health.
    The Committee is aware of the efforts of the Office on 
Women's Health to strengthen and enhance regional women's 
health initiatives and program activity within the 10 HHS 
regions to reach women and health care providers at the State 
and local levels and to foster State and local government, 
public and private sector organizations to become partners in 
improving women's health. The Committee understands that 
support is provided for full-time regional women's health 
coordinators in half of the HHS regions. The Secretary should 
examine whether staff is required in the other regions.
    The Committee has not approved a request for an additional 
$5,000,000 to fund anti-terrorism activities carried out by the 
Department of Health and Human Services. This funding was 
already provided in the fiscal year 1996 appropriations act and 
remains available until expended.

                    office of the inspector general

    The bill includes $29,399,000 for the Office of the 
Inspector General, which is a reduction of $49,420,000 below 
the fiscal year 1996 level and $45,550,000 below the budget 
request. The Committee has reduced the appropriation for the 
Inspector General because a large appropriation for this office 
is contained in H.R. 3103, the health insurance reform bill, 
which passed the House on March 28 and the Senate on April 23. 
Total funds provided between this bill and the authorizing bill 
would be at least $89,399,000 in fiscal year 1997. The fiscal 
year 1996 funding level was $78,819,000.
    With respect to the Medicare fraud and abuse activities, 
the Committee notes that the Congressional Budget Office, in 
scoring the Health Coverage Availability and Affordability Act 
of 1996 (HR 3103) projected savings to be achieved under 
current discretionary funding and additional savings through 
the increased funding in HR 3103. The Committee instructs the 
Inspector General of the Department of Health and Human 
Services to provide the Committee with semi-annual reports on 
the actual deficit reduction impact of HR 3103. This report 
will provide separate information on the savings achieved under 
the assumed funding base and the incremental amounts provided 
in HR 3103 for the following:
          The actual revenues to the federal government as a 
        result of fines, forfeitures, penalties, restitutions 
        and other recoveries;
          The actual value of claims paid during the previous 
        six month period and the estimated value of claims 
        denied during the reporting period for providers 
        removed from the program or as a result of policies 
        that have been changed during the reporting period as a 
        result of Inspector General fraud and abuse activities.
    In the first report, for the period ending September 30, 
1996, the Inspector General will provide the above identified 
information for the previous six month period under funding 
made available in the fiscal year 1996 appropriations act.
    The Committee is concerned that other measures of savings 
such as claims filed, costs avoided or other estimates may 
overstate the return on investment due to funding increases. It 
therefore instructs the Inspector General, except where 
directed to do otherwise, to include only those actual revenues 
to the federal government and the actual dollar value of 
payments that had been made to providers prior to actions to 
change or modify payment policies.
    The Office of the Inspector General was created by law to 
protect the integrity of Departmental programs as well as the 
health and welfare of beneficiaries served by those programs. 
Through a comprehensive program of audits, investigations, 
inspections and program evaluations, the OIG attempts to reduce 
the incidence of fraud, waste, abuse and mismanagement, and to 
promote economy, efficiency and effectiveness throughout the 
Department.
    The Committee believes that all of the Inspectors General 
need to do a better job of accounting for and tracking the 
savings that they claim to generate by their efforts. More 
attention must be paid to how much money is actually collected 
each year and paid back to the Federal government. The 
Committee directs the Inspector General to report to the 
Committee each quarter on:
          (1) the actual payments, as a result of fines, 
        restitutions or forfeitures, made to the United States 
        Government as a result of her activities; and
          (2) how ``funds put to better use'' were used; this 
        report must identify funds made available for use by 
        management and the programs, projects, and activities 
        that were increased as a result of these funds.
    The Committee is concerned that the National Cancer 
Institute may not be adequately overseeing the so-called ASSIST 
program (the American Stop Smoking Intervention Study Program). 
Questions have been raised about some of the expenditures in 
this program. The Committee strongly urges the Inspector 
General to conduct an audit of the contractors in the program 
to determine if the funds are being properly spent and that the 
program is meeting its goals.

                        office for civil rights

    The bill includes $19,380,000, the same as the fiscal year 
1996 level and $2,410,000 below the budget request. This 
includes authority to transfer $3,314,000 from the Medicare 
trust funds.
    The Office for Civil Rights is responsible for enforcing 
civil rights statutes that prohibit discrimination in health 
and human services programs. OCR implements the civil rights 
laws through a compliance program designed to generate 
voluntary compliance among all HHS recipients.

                            policy research

    The bill includes $9,000,000, about the same as the amount 
available in fiscal year 1996 and the same as the budget 
request. The Policy Research account, authorized by section 
1110 of the Social Security Act, is the Department's principal 
source of policy-relevant data and research on the income 
sources of low-income populations; the impact, effectiveness, 
and distribution of benefits under existing and proposed 
programs; and other issues that cut across agency lines.

                   TITLE III--DEPARTMENT OF EDUCATION

    The Committee, in its recommendations for this title 
continues its concern for the multiple, fragmented programs in 
the Department of Education. These programs particularly focus 
on research, demonstration, technical assistance, dissemination 
and evaluation activities as well as programs that focus on 
narrow constituencies-constituencies which are served by 
broader Departmental programs. The administration, in response 
to inquiries from the Committee, indicated that there are five 
general research, demonstration, dissemination and evaluation 
authorities administered by the Department of Education and 
twenty-eight specific authorities. These programs were funded 
in fiscal year 1996 at over $580 million. The fragmented nature 
of these Departmental programs has been the subject of concern 
for the Committee in both the 103rd and 104th Congresses.
    The bill includes a total of $22,757,460,000 for programs 
in the Department of Education. However, there are many 
education programs funded elsewhere in the bill. The following 
chart indicates the major funding sources for education in the 
bill.

                            EDUCATION FUNDING                           
                          [Dollars in millions]                         
------------------------------------------------------------------------
                                                 Fiscal year--          
                                     -----------------------------------
                                                                 1996.  
                                                              above (+),
                                         1996        1997      below (-)
                                                                fiscal  
                                                               year 1996
------------------------------------------------------------------------
Discretionary                                                           
    Department of Education*........     $22,810     $22,757        -$53
    Head Start......................       3,569       3,600         +31
    NIH Training grants.............         395         435         +40
    Health professions training.....         259         290         +31
                                     -----------------------------------
      Total discretionary...........      27,033      27,082         +49
                                     ===================================
Mandatory                                                               
    Department of Education.........       2,420       2,473         +53
    Medicare direct/indirect costs                                      
     of medical education...........       6,810       8,470      +1,660
                                     -----------------------------------
      Total mandatory...............       9,230      10,943      +1,713
                                     ===================================
``Off budget'' spending:                                                
    Direct loan obligations.........      12,928      13,542        +614
                                     -----------------------------------
      Total education spending......      49,191      51,567      +2,376
------------------------------------------------------------------------
*Adjusted for the $1.3 billion forward funding of title I in fiscal year
  1996 to show comparability.                                           

                            EDUCATION REFORM

    The bill includes $175,000,000 for Education Reform 
programs. This amount is $516,000,000 less than the 
Administration's fiscal year 1997 budget request and 
$355,000,000 below the fiscal year 1996 amount. This 
appropriation account includes Goals 2000 under the Goals 2000: 
Educate America Act and school-to-work opportunities under the 
School-To-Work Opportunities Act.

Goals 2000: Educate America Act: State and local education systematic 
        improvement grants

    The bill includes no funding for carrying out the state and 
local education systemic reform grant program authorized by 
title III of the Goals 2000: Educate America Act. This is 
$476,000,000 below the budget request and $340,000,000 below 
the fiscal year 1996 appropriation level for this activity. 
This formula grant program supports state and local efforts to 
engage in systemic education reform.
    The Committee continues to believe that in this very tight 
budgetary environment, the justification for funding this 
duplicative program remains weak. Much of Goals 2000 funding 
duplicates other federal programs or pays the states to do what 
they already were doing. A 1994 survey by the Council of Chief 
State School Officers conducted just after the passage of Goals 
2000 indicated that virtually all states had curriculum content 
and pupil performance standards under development or in the 
implementation stage. Both National Math Standards and a list 
of academic subjects for which national content standards were 
to be developed were in place before the passage of Goals 2000. 
A recent article on Goals 2000 indicated that ``* * * The vast 
majority [of states] will * * * pay for curriculum revisions, 
professional development and technology initiatives they 
planned to do anyway.'' Finally, a recent analysis by the 
Congressional Research Service indicates that existing 
authorities under title VI of the Elementary and Secondary 
Education Act (Innovative education program strategies) will 
allow States to carry out their activities currently funded by 
Goals 2000. In the Committee recommendation, funding for title 
VI has more than doubled.

Goals 2000: Educate America Act: Parental assistance

    The bill includes no funding for parental assistance under 
Goals 2000. This is $15,000,000 below the budget request and 
$10,000,000 below the fiscal year 1996 level. This program 
provides assistance for parent information and resource 
centers.
    This program supports ``parent information and resource 
centers.'' These centers (1) coordinate with existing programs 
that support parents in helping their children get ready for 
school and reach high standards, (2) develop resource materials 
and provide information about high quality family involvement 
programs to families, schools, school districts and others 
through conferences, workshops and dissemination of materials 
and (3) support a variety of promising models of family 
involvement programs. These same activities can be supported 
with title I (Education for the Disadvantaged) and title VI 
(Innovative education program strategies) funding. There are 
several dissemination authorities that can support the transfer 
of promising techniques. The National Education Research 
Institutes support, among many related activities, research to 
assist ``State and local policymakers, practitioners, parents, 
and others in the community restructure schools, build 
constructive local learning cultures and contexts, and design 
and implement State and local policies, governance 
arrangements, and financial systems that support the highest 
levels of learning for all students'' according to the 
Department of Education. If activities supported under Goals 
2000, Parental Education are considered of sufficient 
importance, they can be funded under these broader authorities.

School-to-work opportunities

    The bill includes $175,000,000 for state grants and local 
partnerships under the School-to-Work Opportunities Act. This 
is $25,000,000 below the budget request and $5,000,000 below 
the fiscal year 1996 level. Funds support grants to states to 
plan school-to-work systems to ease the transition from school 
to work and implementation grants provided competitively to 
states and local consortia to begin building such systems. 
Activities include recruiting employers, obtaining in-depth 
information on local labor markets, designing school-based and 
work-based curricula, and training school-based and work-based 
staff.
    In fiscal year 1996 the total funding for School-to-Work 
was $350,000,000 with $180,000,000 provided in the Department 
of Education and $170,000,000 provided in the Department of 
Labor. The Committee provides the same overall amount for 
fiscal year 1997 by providing $175,000,000 in each Department. 
With the inclusion of Tech-Prep, the Committee provides 
$450,000,000 for school-employment related programs.

                    EDUCATION FOR THE DISADVANTAGED

    The bill includes $7,204,130,000 for education for the 
disadvantaged programs. This amount is $474,870,000 less than 
the Administration's fiscal year 1997 budget request and 
$23,947,000 less than the fiscal year 1996 appropriation. This 
appropriation account includes compensatory education programs 
authorized under title I of the Elementary and Secondary 
Education Act of 1965. In fiscal year 1996, $5,929,838,000 was 
made available for this account in fiscal year 1996 funds and 
$1,298,386,000 was made available in fiscal year 1997 funds 
resulting in a total of $7,228,077,000 available for the 1996-
97 school year. This year, the Committee again forward funded 
$1,298,386,000 into fiscal year 1998. The Committee concurs 
with the concerns of the Administration over this practice, but 
was unable to appropriate the full amount recommended in fiscal 
year 1997 due to the lack of available funds. All discussions 
of funding in this section are based on the funds available in 
school years 1996-97 and 1997-98 to provide comparability.

Grants to local educational agencies

    Of the amounts provided for Title I programs, 
$6,730,348,000 is available for basic grants to local education 
agencies and state administration. This is $434,652,000 below 
the request and the same as the funding level available for the 
1996-97 school year. Funding for concentration grants, which 
targets funds to Local Education Agencies in Counties with high 
levels of disadvantaged children, is funded at $684,082,000, 
the same as last year and $13,147,000 above the request level. 
The Committee provided no funding under Targeted Grants which 
focuses even more funding on the most disadvantaged local 
educational agencies. This level is $1,000,000,000 below the 
request level and the same as last year.
    Financial assistance flows to school districts by formula, 
based in part on the number of school-aged children from low-
income families. Within districts, local school officials 
target funds on school attendance areas with the greatest 
number or percentage of children from poor families. Local 
school districts develop and implement their own programs to 
meet the needs of disadvantaged students. About 14,000 local 
school districts participate in the program, which served an 
estimated 6.2 to 6.5 million pupils in 1995.
    Funds under this account will also be used to pay the 
federal share of state administrative costs for title I 
programs. The maximum state administration grant is equal to 1 
percent of title I local educational agency plus state agency 
grants to the state, or $400,000, whichever is greater. These 
funds are included in the grants to local educational agencies 
account, rather than being a separate line item.

Capital expenses for private school students

    Capital expenses grants are authorized to pay some of the 
additional costs of providing title I services to children who 
attend nonpublic schools. As a result of a decision of the U.S. 
Supreme Court in 1985, in the case of Aguilar v. Felton, public 
school teachers or other employees cannot be sent to sectarian 
nonpublic schools for the purpose of providing title I 
services. The capital expenses grants are allocated to states 
in proportion to the number of nonpublic school pupils they 
serve. Purposes for which these funds may be used include 
rental of classroom space in neutral sites (i.e., locations 
other than private or public schools), rental of mobile vans 
used for title I instruction, or transportation of nonpublic 
pupils to public schools or neutral sites. The bill includes an 
appropriation of $20,000,000 for this purpose, the same as the 
budget request and $18,119,000 below the fiscal year 1995 
appropriation.

Even Start

    The Committee provides $101,997,000 for Even Start, the 
same as last year and $3,000 below the request. Even Start 
provides demonstration grants for model programs of joint 
education of disadvantaged children, aged 1-7 years, who live 
in title I target school attendance areas, plus their parents 
who are eligible to be served under the Adult Education Act. 
These parents are not in school, are above the state's 
compulsory school attendance age limit, and have not earned a 
high school diploma (or equivalent). At appropriations levels 
above $50,000,000, Even Start funds are allocated to the 
states, generally in proportion to title I basic grants.
    While the President proposed last year to consolidate this 
program into a larger Vocational and Adult Education block 
grant, this year he is requesting a separate appropriation. The 
Committee remains concerned that, as with many other Department 
of Education programs, there is little in the way of 
evaluations to support this request. What evaluations do exist 
indicate that ``* * * Even Start has some positive short term 
effects on children and adults.'' However ``* * * The gains 
were not greater than those that similarly motivated families 
would obtain for themselves using locally available services.'' 
The Committee believes that until more consistent results can 
be accomplished, funding for this program should be 
constrained.

State agency programs: migrant

    The bill includes $305,474,000 for the migrant education 
program, $14,526,000 below the budget request and the same as 
the fiscal year 1996 appropriation. This program supports 
formula grants to state agencies for the support of special 
educational and related services to children of migratory 
agricultural workers and fishermen. The purpose of this program 
is to provide supplementary academic education, remedial or 
compensatory instruction, English for limited English 
proficient students, testing, plus guidance and counseling.

State agency programs: neglected and delinquent

    For the state agency program for neglected and delinquent 
children, the bill includes $39,311,000; this is $689,000 less 
than the budget request and the same as the fiscal year 1996 
appropriation. This formula grant program provides services to 
participants in institutions for juvenile delinquents, adult 
correctional institutions, or institutions for the neglected.

State school improvement

    The Committee provides no funding for state school 
improvement, the same as fiscal year 1996 and $15,000,000 below 
the request. This program was terminated in the Omnibus 
Consolidated Rescissions and Appropriations Act of 1996 (P.L. 
104-134). Provisions of the underlying statute permit State and 
local education agencies to use their title I funds for school 
improvement activities.

Demonstrations of innovative practices

    The Committee provides no funding for demonstrations of 
innovative practices, the same as fiscal year 1996 and 
$10,000,000 below the request. It is one of the many small 
research, demonstration and technical assistance programs that 
are hard to coordinate and expensive to administer. If the 
Secretary believes that activities funded under this authority 
are sufficiently important, he can fund them under broader 
authorities, many of which have received increases in the 
Committee recommended bill.

Evaluation

    The Committee provides $7,000,000 for evaluation, the same 
as budget request and $3,641,000 more than the 1996 
appropriation. Title I evaluation supports large scale national 
evaluations that examine how title I is contributing to 
improved student performance at the state, local education 
agency, and school levels; short term studies that document 
promising models; and other activities to help states and local 
education agencies implement requirements in the title I 
statute.
    The Committee is concerned that there remains little firm, 
empirical data on the effectiveness of the title I program, 
particularly since reauthorization. The Congressional Research 
Service noted in a recent analysis of title I evaluations that 
``There are numerous, substantial limitations to the 
significance of evaluations of aggregate impact of Title I that 
are currently available.'' The Committee intends that these 
funds be used to support the development of evaluation 
techniques and data on the impact of title I on both a local 
and national basis.

Migrant education, high school equivalency program

    The bill includes no funding for the high school 
equivalency program. This amount is $7,441,000 below fiscal 
year 1996 and the same as the request. According to the 
Administration, ``These programs have long since met their 
objectives as demonstration programs, they benefit only a few 
participants and incumbent grantees, and eligible populations 
can be served by a range of other, less costly, programs.''

College assistance migrant programs

    The bill includes no funding for the college assistance 
migrant programs. This amount is $2,028,000 below fiscal year 
1996 and the same as the request. According to the 
Administration, ``These programs have long since met their 
objectives as demonstration programs, they benefit only a few 
participants and incumbent grantees, and eligible populations 
can be served by a range of other, less costly, programs.'' 
This program serves only a small number of migrant students and 
only if they attend one of six institutions awarded grants.

                               impact aid

    The bill provides $728,000,000 for Federal impact aid 
programs in fiscal year 1997, an increase of $35,000,000 over 
the fiscal year 1996 appropriation and $111,000,000 over the 
budget request. The appropriation funds the impact aid program 
at the same level as it was funded in fiscal year 1995. This 
account supports payments to school districts affected by 
Federal activities and is authorized under title VIII of the 
Elementary and Secondary Education Act. During the current 
school year, payments will be made to approximately 2,700 
school districts on behalf of 1,800,000 children. The bill does 
not adopt the President's proposal to amend the authorizing 
statute to reduce the number of school districts receiving 
payments to 1,000 and to reduce the number of children on 
behalf of whom payments are made to 337,000. The Committee 
regards impact aid as an obligation of the Federal Government 
and has included funds sufficient to adequately reimburse 
school districts adversely impacted by Federal activities. The 
Committee notes that the President proposes to substantially 
increase funding for general Federal assistance to school 
districts at the same time it proposes to dramatically reduce 
impact aid payments which represent an obligation of the 
Federal government to mitigate the adverse effects of its 
activities on local school districts.-
    The Committee notes that in addition to the funding 
provided in this bill, the House version of the National 
Security Appropriations bill includes $58,000,000 for payments 
to school districts experiencing heavy military impact.

Basic support payments

    The bill includes $615,500,000 for basic support payments 
to local educational agencies, an increase of $33,793,000 over 
the fiscal year 1996 appropriation and $65,500,000 over the 
budget request. The bill does not include changes in permanent 
law recommended in the budget request that would have the 
effect of dramatically limiting the number of children on 
behalf of whom payments are made and eliminating hold-harmless 
payments to schools affected by rapid decreases in impact aid 
payments as a result of implementation of the new payment 
formula enacted in 1994. Basic support payments compensate 
school districts for lost tax revenue and are made on behalf of 
Federally-connected children such as children of members of the 
uniformed services who live on Federal property.

Payments for children with disabilities

    The bill provides $40,000,000 for payments on behalf of 
Federally-connected children with disabilities, the same as the 
budget request and the fiscal year 1996 appropriation. These 
payments compensate school districts for increased costs of 
serving Federally-connected children with disabilities.

Payments for heavily impacted districts

    The bill includes $50,000,000 for payments to heavily 
impacted districts, the same as the fiscal year 1996 level, and 
$30,000,000 above the budget request. These payments assist 
especially heavily impacted school districts to raise their 
per-pupil spending to levels comparable to other school 
districts in their States.

Facilities maintenance

    The bill does not provide funding for facilities 
maintenance, the same as in fiscal year 1996. The budget 
requests $3,000,000 for this activity. These capital payments 
are authorized for maintenance of certain facilities owned by 
the Department of Education.

Construction

    The bill includes $5,000,000 for construction, the same as 
the fiscal year 1996 appropriation and $1,000,000 above the 
request. This funding provides formula grants to eligible 
school districts for building and renovating school facilities.

Payments for Federal property

    The bill provides $17,500,000 for payments related to 
Federal property, an increase of $1,207,000 over the fiscal 
year 1996 appropriation. The budget does not request funding 
for this activity. The Committee has provided an increased 
appropriation for this activity in order to accommodate schools 
which have recently qualified for funding under this program. 
Funds are awarded to school districts to compensate for lost 
tax revenue as the result of Federal acquisition of real 
property since 1938.

                      SCHOOL IMPROVEMENT PROGRAMS

    The bill includes $1,235,383,000 for school improvement 
programs. This amount is $168,617,000 below the 
Administration's 1997 budget request and $21,806,000 above the 
fiscal year 1996 appropriation. This appropriation account 
includes programs authorized under titles II, IV, V, VI, IX, X 
and XIII of the Elementary and Secondary Education Act; title 
VII of the Stewart B. McKinney Homeless Assistance Act; and 
title IV-A of the Civil Rights Act.

Professional development and program innovation: Eisenhower 
        professional development state grants

    The Committee recommends no funding for state grants under 
the Eisenhower professional development state grants, 
$610,000,000 below the budget request and $275,000,000 below 
the fiscal year 1996 level. The Committee recommends that 
funding for this activity be added to the title VI (Innovative 
education program strategies) that will provide increased 
flexibility to states and localities to fund training or other 
activities they feel appropriate.
    The Committee notes that in testimony before the 
Subcommittee on the Departments of Labor, Health and Human 
Services and Education and Related Agencies, the Assistant 
Secretary for Elementary and Secondary Education reported that:
          Programs aimed exclusively at professional 
        development in the Department were funded at $338 
        million in 1996;
          In 1993, the most recent year for which data is 
        available, $2.3 billion in loans were made for the 
        pursuit of undergraduate and graduate education 
        degrees;
          While programs such as Safe and Drug Free Schools, 
        Title I, Title VI Innovative Strategies, and ``* * * a 
        large number of other programs* * *'' support 
        professional development, the Department ``* * * does 
        not have an estimate of the total amount expended for 
        teacher professional development under these * * * 
        programs.'';
          The Department keeps no records on funding provided 
        by other agencies such as NASA, the Department of 
        Energy, National Science Foundation, and the National 
        Endowment for the Humanities.
    The Committee believes that funding can only be considered 
in the context of a better understanding of role of this 
program in the overall federal commitment to professional 
development and the steps which have been taken to address the 
criticisms of the Eisenhower Professional Development Program 
and its predecessors.

Professional development and program innovation: Innovative Education 
        Program Strategies State Grants

    The Committee recommends $606,517,000 for state grants 
under Innovative education program strategies, an increase of 
$331,517,000 over the fiscal year 1996 level and $606,517,000 
above the Request. The Committee strongly supports this program 
which provides funding, without bureaucratic strings, to state 
and local educational agencies that, according to the 
administration can be used for:
          (1) obtaining technology and training in that 
        technology related to the implementation of school 
        based reform;
          (2) acquiring and using educational materials;
          (3) educational reform projects such as ``effective 
        schools'' and magnet schools;
          (4) improving educational services for disadvantaged 
        students;
          (5) combating illiteracy among children and adults;
          (6) addressing the educational needs of gifted and 
        talented children;
          (7) implementing school reform activities consistent 
        with Goals 2000; and
          (8) implementing school improvement and parental 
        involvement activities under ESEA Title I.
    The Committee decided to combine the funding from the 
Eisenhower Professional Development Program, Star Schools and 
Foreign Language Assistance into this program. The bill 
includes language indicating that states receive at least the 
same proportion of funding in fiscal year 1997 as they received 
from the individual programs in fiscal year 1996.
    The Committee believes that all of the activities carried 
out under the individual, categorical programs can be carried 
out under the authorities of title VI.

Safe and drug-free schools and communities: state grants

    The Committee bill includes $440,978,000 for the state 
grants program of the Safe and Drug-Free Schools and 
Communities act. This is $74,022,000 below the budget request 
and the same amount provided in fiscal year 1996. The program 
supports state formula grants for comprehensive, integrated 
approaches to drug and violence prevention. Local educational 
agencies must use their funds to implement a drug and violence 
prevention program for students and employees.
    This program has existed since 1987 and, through 1996 has 
obligated over $2.9 billion. Yet there is no overall evaluation 
of the program, although one has been in progress since 1990 
and results are projected to be available in late 1996. While 
the administration, in its request, points to several anecdotal 
cases where the program seems to be a success, they also point 
to alarming national statistics of increasing drug use and 
declining fear of drugs that have occurred in the face of 
obligations of over $400,000,000 per year since 1990.
    In funding this program, it is the Committee's intent that 
funds be expended to promote a ``no-use'' message and support a 
``no-use'' curricula.
    The Committee also notes that the performance measures 
developed under the Government Performance and Results Act for 
Safe and Drug Free Schools seem to be among the most 
comprehensive and instructs the Department to work closely with 
other agencies and programs to assure that performance measures 
allow the comparison of the effectiveness and cost of the Safe 
and Drug Free Schools program with other substance abuse and 
violence prevention programs.
    Overall, the Federal Government is projected to spend $15.4 
billion in fiscal year 1996 for substance abuse treatment, 
prevention and supply interdiction. Of that amount, the 
Department of Health and Human Services spends $3.6 billion on 
prevention and treatment, the Department of Education $618 
million and the Department of Labor $60 million. According to a 
study done for the Committee by the General Accounting Office:

          From fiscal year 1990 through 1994, the number of 
        federal departments and agencies funding substance 
        abuse treatment and prevention activities increased 
        from 12 to 16, according to the Office of National Drug 
        Control Policy (ONDCP). For the same years, federal 
        agencies' budget authorizations increased more than 59% 
        from about $2.8 billion to $4.4 billion. The fiscal 
        year 1996 budget authorization was estimated to be $5.2 
        billion.

Safe and drug-free schools and communities: national programs

    For the national programs under the Safe and Drug-Free 
Schools and Communities Act, the bill provides no funding, 
which is $25,000,000 below the budget request and $24,993,000 
below the fiscal year 1996 amount. Under this program, the 
Secretary of Education administers a variety of activities to 
prevent the illegal use of drugs and violence among, and 
promote safety and discipline for, students at all educational 
levels, preschool through postsecondary.
    As noted above, the Committee is concerned by the 
Department's insistence in maintaining the broad array of 
research, technical assistance, dissemination and demonstration 
programs. The situation with respect to this account is 
particularly discouraging given the Administration's statements 
in testimony before the Subcommittee on Labor, Health and Human 
Services and Education and Related Agencies that ``Technically, 
many of the activities supported by the Safe and Drug Free 
Schools and Communities National Programs could be carried out 
under broader authorit[ies]'' if sufficient funds were 
provided.
    The Committee believes that in this era of severe fiscal 
constraint, the authorizing committees must consolidate many of 
these authorities and, in the absence of such action, the 
Committee will move in this direction through providing no 
funding for many of these small programs. The Committee expects 
the administration to employ its general authorities to fund 
the highest priority projects and activities.

Inexpensive book distribution (Reading Is Fundamental)

    The bill provides $9,000,000 for the inexpensive book 
distribution program. This is $1,265,000 below the fiscal year 
1996 appropriation and the same as the request. This program 
makes an award to Reading Is Fundamental, Inc., to buy 
inexpensive books, offer them through local community programs 
to children from low-income families, and motivate children to 
read. Federal funds provide for up to 75 percent of the costs 
of the books. This program annually provides an estimated 7.6 
million books to 2.4 million children nationwide.
    The Committee notes that this is a widely respected and 
well known program in which federal funding comprises only a 
small portion of the program's overall budget.

Christa McAuliffe fellowships

    The bill provides no funding for the Christa McAuliffe 
fellowships, the same as the fiscal year 1996 appropriation and 
$2,000,000 below the request. The President in his fiscal year 
1995 request proposed no funding for this program, indicating 
that ``This program is proposed for elimination to provide 
savings as part of the President's Reinventing Government 
(REGO) proposal.'' Funding for this program was terminated in 
the 1996 omnibus funding bill.

Arts in education

    The bill provides $9,000,000 for the arts in education 
program. This is $1,000,000 less than the budget request and 
the same as the fiscal year 1996 appropriation. This program 
supports arts programs in elementary and secondary education 
and demonstration programs for the involvement of disabled 
persons in the arts.

Magnet schools assistance

    The bill includes $95,000,000 for the magnet schools 
assistance program, the same as both the budget request and the 
fiscal year 1996 level. The magnet schools assistance program 
awards competitive grants to local educational agencies for use 
in establishing or operating magnet schools that are part of a 
desegregation plan approved by a court or by the Department of 
Education's Office for Civil Rights. A magnet school is defined 
by the statute as ``a school or education center that offers a 
special curriculum capable of attracting substantial numbers of 
students of different racial backgrounds.'' A funding priority 
is given to local educational agencies that have not 
participated during the most recent funding cycle.

Education for homeless children and youth

    For the education of homeless children and youth program, 
authorized by section 722 of the Stewart B. McKinney Homeless 
Assistance Act, the Committee recommends $23,000,000. This is 
$6,000,000 less than the budget request and the same as the 
fiscal year 1996 appropriation. Grants are allocated to states 
in proportion to the total that each state receives under the 
title I program.
    This program provides for the establishment of an Office of 
Coordinator of Education of Homeless Children and Youth, 
development and implementation of a state plan, development of 
other activities to assure that homeless children have equal 
access to education, and establishment of professional 
development programs to ``heighten awareness of the special 
problems of homeless children and youth.'' It is unclear how 
much funding from this program actually reaches the classroom 
and directly impacts on the education of homeless children. In 
addition funding for homeless children is available through 
title I (Education for the Disadvantaged), and title VI 
(Innovative Education Program Strategies) among other programs.

Ellender Fellowships/Close Up

    The bill includes $1,000,000 for the Ellender fellowship 
program. This level is $1,000,000 above the budget request and 
$500,000 less than the fiscal year 1996 amount. The program 
supports the Close Up Foundation of Washington, D.C., to carry 
out its program to increase the understanding of the Federal 
Government by providing fellowships to disadvantaged secondary 
school students, secondary school teachers, economically 
disadvantaged older Americans, and recent immigrants. 
Fellowship recipients receive practical experience in the 
activities of the legislative, executive, and judicial branches 
of the Federal Government.
    The Committee notes that this is a widely respected and 
well known program in which federal funding comprises only a 
small portion of the program's overall budget. Given the severe 
constraints that are likely to face all discretionary programs 
in the future, the Committee instructs the Secretary and the 
grantee, the Close-Up Foundation, to develop a plan, to be 
presented to the Committee by October 1, 1996, to achieve full 
financial independence from federal funding by the end of 
fiscal year 1997.

Training and advisory services

    The bill includes $7,334,000 for training and advisory 
services authorized by title IV-A of the Civil Rights Act. This 
is $6,666,000 below the budget request and the same as the 
fiscal year 1996 amount. Title IV-A authorizes technical 
assistance and training services for local educational agencies 
to address problems associated with desegregation on the basis 
of race, sex, or national origin. Awards are made to civil 
rights units within state educational agencies and to regional 
desegregation assistance centers.

Women's educational equity

    The bill contains no funding for the women's educational 
equity program, $4,000,000 below the budget request and the 
same as the fiscal year 1996 amount. This program promotes 
educational equity for women and girls through the support of 
national, State, and other projects. Equality is encouraged 
through the development and dissemination of model educational 
programs and materials, as well as through guidance and 
counseling activities, preservice and inservice training for 
educators, and courses for underemployed and unemployed women.

Education for native Hawaiians

    The bill includes $4,000,000 for education for native 
Hawaiians, $2,000,000 below the budget request and $8,000,000 
less than the fiscal year 1996 amount. A number of programs 
limited to native Hawaiians are supported with these funds, 
including family-based education centers, postsecondary 
education fellowships, gifted and talented education projects, 
and special education projects for disabled pupils.
    The President in his original fiscal year 1995 request 
indicated that this program was ``* * * duplicative of other 
programs * * * [and] more appropriately funded through non-
federal sources.'' In addition to this specific program, there 
are statutory set-asides for native Hawaiians in safe and drug 
free schools, vocational education and native Hawaiians are 
eligible for assistance under programs for the education of the 
disadvantaged, just as any other American.

Charter schools

    The Committee recommends $18,000,000 for support of charter 
schools, $22,000,000 below the budget request and the same as 
the fiscal year 1996 amount. Charter schools are developed and 
administered by individuals or groups of individuals which may 
include teachers, administrators, and parents. These groups 
enter into charters for operation of their schools which must 
be granted exemptions from state and local rules that limit 
flexibility in school operation and management. Under this 
program, grants are made to state educational agencies in 
states that have charter school laws; the state educational 
agencies will in turn make subgrants to authorized public 
chartering agencies in partnerships with developers of charter 
schools.

Technical assistance for improving ESEA programs: comprehensive 
        regional assistance centers

    The Committee recommends $21,554,000 for comprehensive 
regional assistance centers, $23,446,000 below the budget 
request and $47,000 more than the fiscal year 1996 amount. This 
program supports the consolidation of 7 former technical 
assistance programs that funded 48 technical assistance centers 
into a program of 15 comprehensive regional technical 
assistance centers for improving ESEA programs. As with the 
Regional Educational Labs, the Committee is concerned that 
these centers remain focused on providing assistance to local 
and state education agencies based on their locally defined 
needs. The Committee instructs the Department to inform it of 
any directives or funding earmarks that would require the 
Centers to carry out work not directly in response to local or 
state requests for assistance.

                   BILINGUAL AND IMMIGRANT EDUCATION

    The bill includes $167,190,000 for bilingual and immigrant 
education programs. This amount is $94,510,000 below the 
Administration's fiscal year 1996 budget request and 
$20,849,000 less than the fiscal year 1996 appropriation. This 
account supports programs authorized by parts A and C of title 
VII of the Elementary and Secondary Education Act.

Bilingual education: instructional services

    The bill provides $117,190,000 for instructional services, 
the same as the budget request and $10,000 below the fiscal 
year 1996 amount. The Congress in the Omnibus Consolidated 
Rescissions and Appropriations Act of 1996 (P.L. 104-134) 
appropriated $128,000,000 for this activity. The Committee 
recently concurred in a request by the administration to 
reprogram $10,800,000 into the Support Services and 
Professional Development accounts. This program provides 
assistance through competitive grants to school districts to 
help ensure that the limited English proficient students learn 
English.
    The funding level provided in the bill, according to the 
Administration,

          * * * is necessary to meet the challenge of providing 
        high-quality educational services to the Nation's 
        rapidly growing limited English proficient student 
        population. The request would also enable the 
        Department to continue to implement the provisions of 
        the new statute that promote systematic educational 
        reform for limited English proficient students.

    The bill provides no funding for Support Services. As noted 
in the beginning of the Education section, the administration 
has identified numerous research, demonstration, dissemination 
and evaluation authorities funded at over one-half billion 
dollars. The fragmented nature of Departmental research, 
demonstration, dissemination and evaluation programs has been 
the subject of concern for the Committee in both the 103rd and 
104th Congresses. The Committee expects the administration to 
employ its general authorities to fund the highest priority 
programs.
    The bill also provides no funding for Professional 
Development services. As with Support Services, the Committee 
is concerned by the fragmentation of these programs and the 
assumption that each program must have its own research, 
demonstration, dissemination and professional development 
activities in addition to the broader Departmental programs. 
The General Accounting Office identified 86 teacher training 
programs in nine agencies of which 60 were funded in the 
Department of Education. In testimony before the Subcommittee 
on the Departments of Labor, Health and Human Services and 
Education and Related Agencies, the Assistant Secretary for 
Elementary and Secondary Education indicated that while 
bilingual professional development is the only program aimed 
exclusively at preparing teachers of limited English 
proficiency students, the Eisenhower Professional Development 
Program is estimated to spend $5,500,000 (based on the FY '96 
funding level of $275,000,000) and student financial assistance 
provided $70,000,000 for the training of current and future 
bilingual teachers. Three times as much is being spent outside 
of the bilingual professional development program for the 
purpose of training bilingual teachers as is being requested by 
the Administration. With the consolidation of the Eisenhower 
Professional Development Program into the title VI program, 
states and localities will have increased flexibility to fund 
professional development, or other activities based on their 
priorities.

Foreign language assistance

    The bill provides no funding for the foreign language 
assistance program, $5,000,000 below the request and 
$10,039,000 below the fiscal year 1996 amount. This program 
provides discretionary grants to local and state educational 
agencies to support model programs for the improvement or 
expansion of foreign language instruction for students. With 
the consolidation of this program into the title VI program, 
states and localities will have increased flexibility to fund 
foreign language, or other activities based on their 
priorities.

Immigrant education

    The bill includes $50,000,000 for immigrant education, 
$50,000,000 below the budget request and the same as the fiscal 
year 1996 level. The program provides grants to states with 
school districts that enroll substantial numbers of immigrant 
children. Awards are used to help cover the cost of providing 
supplemental educational services to these students.

                           SPECIAL EDUCATION

    The bill includes $3,246,315,000 for programs for children 
with disabilities authorized under the Individuals with 
Disabilities Education Act. This funding level is $306,598,000 
below the Administration's fiscal year 1997 budget request and 
$900,000 above the fiscal year 1996 appropriation.
    All programs in this account except Grants to States and 
Preschool Grants are unauthorized. The President proposed the 
consolidation of the 14 ``discretionary'' programs within this 
account into five Program Support and Improvement clusters. In 
addition the Committee on Economic and Educational 
Opportunities is considering legislation to reauthorize the 
Individuals with Disabilities Education Act. The Committee has 
appropriated funds for this program under the existing, but 
expired, legislation.

State grants for special education

    The bill provides $2,323,837,000 for grants to states, 
which is $279,410,000 below the budget request and the same as 
the fiscal year 1996 level. This program provides formula 
grants to assist the states in meeting the excess costs of 
providing special education and related services to children 
with disabilities. In order to be eligible for funds, states 
must make free appropriate public education available to all 
children with disabilities. Funds are currently distributed 
based on the number of children with disabilities to whom the 
states provide a free appropriate education.

Preschool grants

    The bill provides $360,409,000 for preschool grants, 
$19,591,000 below the budget request and the same as the fiscal 
year 1996 level. This program provides grants to states on the 
basis of their proportionate share of the total number of 
children with disabilities in the 3-through-5 age range. These 
funds are provided in order to provide an incentive to states 
to make a free appropriate education available to all children 
with disabilities in the 3 through 5 age range.

Grants for infants and families

    The bill provides $315,754,000 for grants for infants and 
families, $122,000 above the budget request and the same as the 
fiscal year 1996 level. This formula grant assists states in 
developing and implementing statewide systems of coordinated, 
comprehensive, multidisciplinary, interagency programs to make 
available early intervention services to all children with 
disabilities, aged birth through 2, and their families.

Deaf-blindness

    The bill includes $12,832,000 for deaf-blindness programs, 
which is $12,832,000 above the budget request and the same as 
the fiscal year 1996 appropriation. The President proposes to 
fund this activity in fiscal year 1997 in his Research to 
Practice consolidation. His requested funding level for the new 
program is $95,720,000, which is $12,359,000 above the fiscal 
year 1996 funding level for the consolidated programs. Deaf-
blind project funds are used for technical assistance grants 
and model demonstration projects for the education of deaf-
blind infants, toddlers, children and youth.

Serious emotional disturbance

    The bill includes $4,147,000 for projects for children and 
youth with serious emotional disturbance, which is $4,147,000 
above the budget request and the same as the fiscal year 1996 
appropriation. The President proposes to fund this activity in 
fiscal year 1997 in his Research to Practice consolidation. His 
requested funding level for the new program is $95,720,000, 
which is $12,359,000 above the fiscal year 1996 funding level 
for the consolidated programs. The program supports research 
projects and local school demonstration projects to improve and 
provide special education and related services to children and 
youth with serious emotional disturbance.

Severe disabilities

    The bill provides $10,030,000 for severe disabilities 
programs, which is $10,030,000 above the budget request and the 
same as the 1996 appropriation. The President proposes to fund 
some of the activities of this program in fiscal year 1997 in 
his Research to Practice consolidation and some in State 
Improvement consolidation. His requested funding level for the 
Research to Practice program is $95,720,000, which is 
$12,359,000 above the fiscal year 1996 funding level for the 
consolidated programs. For the State Improvement Consolidation, 
the President requests $37,076,000, which is $6,768,000 above 
the funding available for the consolidated programs in fiscal 
year 1996. This program supports research, personnel training, 
and dissemination projects to meet the needs of the severely 
disabled.

Early childhood education

    The bill provides $25,147,000 for early childhood education 
programs, which is $25,147,000 above the budget request and the 
same as the fiscal year 1996 appropriation. The President 
proposes to fund this activity in 1997 in his Research to 
Practice consolidation. His requested funding level for the new 
program is $95,720,000, which is $12,359,000 above the fiscal 
year 1996 funding level for the consolidated programs. Grants 
support research, dissemination, demonstration, and other 
projects to improve the early education of children with 
disabilities.

Secondary and transitional services

    The bill provides $23,966,000 for secondary and 
transitional service projects, which is $23,966,000 above the 
budget request and equal to the fiscal year 1996 appropriation. 
The President proposes to fund some of the activities of this 
program in fiscal year 1997 in his Research to Practice 
consolidation and some in State Improvement consolidation. His 
requested funding level for the Research to Practice program is 
$95,720,000, which is $12,359,000 above the fiscal year 1996 
funding level for the consolidated programs. For the State 
Improvement Consolidation, the President requests $37,076,000, 
which is $6,768,000 above the funding available for the 
consolidated programs in fiscal year 1996. This program 
provides assistance to strengthen and coordinate services for 
the transition of youth with disabilities from secondary school 
to postsecondary education, employment, and adult life and 
services, and to improve secondary special education.

Postsecondary education

    The bill provides $8,839,000 for postsecondary education 
programs, which is $8,839,000 above the budget request and the 
same as the fiscal year 1996 appropriation. The President 
proposes to fund this activity in fiscal year 1997 in his 
Research to Practice consolidation. His requested funding level 
for the new program is $95,720,000, which is $12,359,000 above 
the fiscal year 1996 funding level for the consolidated 
programs. This program supports four postsecondary institutions 
that provide model comprehensive support services to serve deaf 
students as well as awards for demonstration projects in 
postsecondary education for all students with disabilities.

Innovation and development

    The bill provides $14,000,000 for innovation and 
development projects, which is $14,000,000 above the budget 
request and the same as the fiscal year 1996 appropriation. The 
President proposes to fund this activity in 1997 in his 
Research to Practice consolidation. His requested funding level 
for the new program is $95,720,000, which is $12,359,000 above 
the fiscal year 1996 funding level for the consolidated 
programs. This program funds research and demonstration 
projects, student-conducted research in institutions of higher 
education, model projects to improve educational opportunities 
for children with disabilities, Attention Deficit Disorder 
(ADD) information centers, and ombudsman model demonstration 
projects.

Media and captioning services

    The bill provides $20,030,000 for media and captioning 
services, which is $20,030,000 above the budget request and 
$900,000 above the fiscal year 1996 appropriation. The 
President proposes to fund this activity in fiscal year 1997 in 
his Technology Development and Educational Media consolidation. 
His requested funding level for the new program is $30,004,000, 
which is $869,000 above the fiscal year 1996 funding level for 
the consolidated programs. This program supports the captioning 
of films, videos, and television programs for the deaf, 
recordings for the blind, and cultural experiences for the deaf 
and hard of hearing.
    In administering the increased funding, the Committee urges 
the Secretary to consider the increased workload of the 
Recordings for the Blind and Dyslexic. Between 1990 and 1995, 
there has been a 60% increase in borrowers and a 41% increase 
in the number of pretaped books in circulation.
    In this time of severe fiscal constraint, programs such as 
RFBD which receive only a small part of their funding from the 
federal government will be under continued fiscal pressure. The 
Committee strongly urges RFBD to develop a strategic plan, 
possibly through the services of outside expertise, review the 
demands for RFBD services and develop new sources of revenues. 
The Committee directs RFBD to report to the Committee on the 
results of this review prior to the submission of the 
President's fiscal year 1998 budget request.

Technology applications

    The bill includes $9,993,000 for technology applications, 
which is $9,993,000 above the budget request and the same as 
the fiscal year 1996 appropriation. The President proposes to 
fund this activity in fiscal year 1997 in his Technology 
Development and Educational Media consolidation. His requested 
funding level for the new program is $30,004,000, which is 
$869,000 above the fiscal year 1996 funding level for the 
consolidated programs. This program provides assistance to 
advance the use of new technology, media, and materials in the 
education of students with disabilities and in the provision of 
early intervention services. The program also supports projects 
that increase access to assistive devices and services.

Special studies

    The bill provides $3,827,000 for special studies, which is 
$3,827,000 above the budget request and the same as the fiscal 
year 1996 appropriation. The President proposes to fund this 
activity in fiscal year 1997 as a set-aside in the state grants 
portion of Special Education. This program supports data 
collection, evaluations, and special studies to assess progress 
in the implementation of the Individuals with Disabilities 
Education Act, examines special topics in early intervention 
and special education, and provides information on state and 
local program management.

Personnel development

    The bill includes $91,339,000 for personnel development, 
which is $91,339,000 above the budget request and the same as 
the fiscal year 1996 appropriation. The President proposes to 
fund some of the activities of this program in fiscal year 1997 
in his Professional Development consolidation and some in State 
Improvement consolidation. His requested funding level for the 
Professional Development program is $76,700,000, which is 
$8,581,000 below the fiscal year 1996 funding level for the 
consolidated programs. For the State Improvement Consolidation, 
the President requests $37,076,000, which is $6,768,000 above 
the funding available for the consolidated programs in fiscal 
year 1996. This program provides higher education grants for 
training personnel for careers in special education, related 
services, and early intervention; special preservice and 
inservice training grants for instructing both regular 
education and special education personnel; and grants to aid 
states in meeting their personnel needs as identified in their 
comprehensive plans for personnel development. The program also 
supports personnel training grants to Historically Black 
Colleges and Universities and other minority colleges and 
universities to increase the number of minority special 
education personnel.

Parent training

    This bill provides $13,535,000 for parent training 
programs, which is the same as the fiscal year 1996 
appropriation and $13,535,000 above the request. The President 
proposes to fund this activity in fiscal year 1997 in his 
Parent Training and Information portion of his proposed Program 
Support and Improvement initiative. His requested funding level 
for the new program is $14,534,000, which is $999,000 above the 
fiscal year 1996 funding level for the predecessor programs. 
This program supports parent training and information centers 
to aid parents of children with disabilities.

Clearinghouses

    The bill includes $1,989,000 for clearinghouses, which is 
$1,989,000 above the budget request and the same as the fiscal 
year 1996 appropriation. The President proposes to fund this 
activity in fiscal year 1997 in his Research to Practice 
consolidation. His requested funding level for the new program 
is $95,720,000, which is $12,359,000 above the fiscal year 1996 
funding level for the consolidated programs. This program funds 
three clearinghouses on: children with disabilities, 
postsecondary education for individuals with disabilities, and 
careers in special education. These clearinghouses disseminate 
information and provide technical assistance to parents, 
professionals and other interested parties; provide information 
on postsecondary programs and services for children with 
disabilities; and encourage students and professionals to seek 
and obtain careers and employment in special education and 
related fields.

Regional resource centers

    The bill provides $6,641,000 for regional resource centers, 
which is $6,641,000 above the budget request and the same as 
the fiscal year 1996 appropriation. The President proposes to 
fund this activity in fiscal year 1997 in his Research to 
Practice consolidation. His requested funding level for the new 
program is $95,720,000, which is $12,359,000 above the fiscal 
year 1996 funding level for the consolidated programs. This 
program funds six centers that provide technical assistance to 
state governments and, through them, to localities to improve 
administration of federal programs for students with 
disabilities and disseminate information on and encourage the 
replication of exemplary programs and practices. A national 
coordinating technical assistance center is also authorized.

            REHABILITATION SERVICES AND DISABILITY RESEARCH

    The bill includes $2,509,447,000 for rehabilitation 
services and disability research. This amount is $3,140,000 
less than the Administration's fiscal year 1997 budget request 
and $53,355,000 above the fiscal year 1996 appropriation. The 
programs in this account are authorized by the Rehabilitation 
Act of 1973, the Helen Keller National Center Act, and the 
Technology-Related Assistance for Individuals with Disabilities 
Act of 1988.

Vocational rehabilitation grants to states

    For vocational rehabilitation state grants, the bill 
includes $2,176,038,000, $57,204,000 above the fiscal year 1996 
amount and the same as the budget request. This program 
supports basic vocational rehabilitation services through 
formula grants to the states. These grants support a wide range 
of services designed to help persons with physical and mental 
disabilities prepare for and engage in gainful employment to 
the extent of their capabilities. Emphasis is placed on 
providing vocational rehabilitation services to persons with 
the most severe disabilities.

Client assistance

    The bill includes $10,392,000 for the client assistance 
program, $273,000 above the fiscal year 1996 amount and the 
same as the budget request. A client assistance program is 
required in each state as a condition of receipt of a basic 
state grant. State formula grants are used to help persons with 
disabilities overcome problems with the service delivery system 
and improve their understanding of services available to them 
under the Rehabilitation Act.

Training

    For training personnel to provide rehabilitation services 
to persons with disabilities, the bill includes $39,629,000, 
the same as both the fiscal year 1996 level and the budget 
request. The program supports long-term and short-term 
training, in-service personnel training, and training of 
interpreters for deaf persons. Projects in a broad array of 
disciplines are funded to ensure that skilled personnel are 
available to serve the vocational needs of persons with 
disabilities.

Special demonstration programs

    The bill combines the special demonstration program with 
the supported employment demonstration program and includes 
$18,942,000 for the consolidated program, $8,499,000 below the 
fiscal year 1996 level for the two programs, and the same as 
the budget request. These programs authorize discretionary 
awards on a competitive basis to public and private 
organizations to support demonstrations, direct services, and 
related activities for persons with severe disabilities.

Migratory workers

    For programs serving migratory workers, the bill provides 
$1,850,000, which is $429,000 above the fiscal year 1996 amount 
the same as the budget request. This program provides 
discretionary grants to make comprehensive vocational 
rehabilitation services available to migrant or seasonal 
farmworkers with vocational disabilities. Projects emphasize 
outreach activities, specialized bilingual rehabilitation 
counseling, and coordination of vocational rehabilitation 
services with services from other sources.

Recreational programs

    For recreational programs, the bill provides $2,596,000, 
the same as both the fiscal year 1996 amount and the budget 
request. This program provides individuals with recreation and 
related activities to aid in their employment, mobility, 
independence, socialization, and community integration. 
Discretionary grants are made on a competitive basis to states, 
public agencies, and nonprofit private organizations, including 
institutions of higher education.

Protection and advocacy of individual rights

    For protection and advocacy for persons with disabilities, 
the bill provides $7,657,000, which is $201,000 above the 
fiscal year 1996 amount and the same as the budget request. 
Grants are awarded to entities that have the authority to 
pursue legal, administrative, and other appropriate remedies 
needed to protect and advocate the rights of persons with 
disabilities.

Projects with industry

    For projects with industry, the bill provides $22,071,000, 
$6,000 above the fiscal year 1996 amount and the same as the 
budget request. This program is the primary federal vehicle for 
promoting greater participation of business and industry in the 
rehabilitation process. The program provides training and 
experience in realistic work settings to persons with 
disabilities to prepare them for employment in the competitive 
labor market. Awards are made to a variety of agencies and 
organizations, including business and industrial corporations, 
rehabilitation facilities, labor organizations, trade 
associations, and foundations.

Supported employment state grants

    For supported employment state grants, the bill includes 
$38,152,000, which is the same as the fiscal year 1996 amount, 
and the budget request. These formula grants assist states in 
developing collaborative programs with public agencies and 
nonprofit agencies for training and post-employment services 
leading to supported employment. In supported employment 
programs, persons with severe disabilities are given special 
supervision and assistance to enable them to perform a job.

Independent living: state grants

    For state grants for independent living, the bill includes 
$21,859,000, the same as the fiscal year 1996 amount and the 
budget request. This program supports formula grants to the 
states to assist in the provision of services designed to meet 
the current and future needs of persons whose disabilities are 
so severe that they do not presently have the potential for 
employment, but who may benefit from services to enable them to 
live and function independently.

Independent living: centers

    For centers for independent living, the bill provides 
$42,876,000, which is $1,127,000 above the fiscal year 1996 
amount, and the same as the budget request. Discretionary 
grants support a network of consumer-controlled, 
nonresidential, community-based private nonprofit centers that 
provide a wide range of services to help persons with severe 
disabilities live more independently in family and community 
settings. Centers provide information and referral services, 
independent living skills training, peer counseling, and 
individual and systems advocacy. Discretionary grants are made 
to state vocational rehabilitation agencies or other public 
agencies or private nonprofit organizations.

Independent living: services for older blind persons

    For independent living services for older blind 
individuals, the bill provides $9,952,000, which is $1,000,000 
above fiscal year 1996 and the same as the budget request. 
Discretionary grants support services for persons 55 years old 
or over whose severe visual impairment makes gainful employment 
extremely difficult to obtain, but for whom independent living 
goals are feasible.

Program improvement

    For program improvement activities, the bill provides 
$2,400,000 which is the same as the request and $1,400,000 
above the fiscal year 1996 level. Activities funded under this 
program were funded under technical assistance to the States in 
1996.

Evaluation

    The bill includes $1,587,000 for program evaluation, $5,000 
above the fiscal year 1996 amount and the same as the budget 
request. These funds are used to evaluate the impact and 
effectiveness of individual programs authorized under the 
Rehabilitation Act. Contracts are awarded on an annual basis 
for studies to be conducted by persons not immediately involved 
in the administration of the programs authorized by the Act.

Helen Keller National Center

    For the Helen Keller National Center for Deaf-Blind Youth 
and Adults, the bill includes $7,337,000, which is $193,000 
above the fiscal year 1996 amount and the same as the budget 
request. These funds are used for the operation of the national 
center for intensive services for deaf-blind individuals and 
their families at Sands Point, New York and a network of 10 
regional offices for referral and counseling. In addition to 
support for the national and regional staff, the Helen Keller 
Center provides seed money to state and private nonprofit 
affiliate agencies to assist them initiate programs for deaf-
blind persons.

National Institute on Disability and Rehabilitation Research

    The bill includes $70,000,000 for the National Institute on 
Disability and Rehabilitation Research, $16,000 above the 
fiscal year 1996 amount and the same as the budget request. The 
Institute supports research, demonstration and training 
activities that are designed to maximize the employment and 
integration into society of individuals with disabilities of 
all ages.

Assistive technology

    For assistive technology activities, the bill provides 
$36,109,000, $3,140,000 below the budget request and the same 
as the fiscal year 1996 amount. Technology assistance 
activities are authorized under the Technology-Related 
Assistance for Individuals with Disabilities Act of 1988, which 
was reauthorized in 1994. This program provides discretionary 
grants to the states to assist them in developing statewide 
programs to facilitate the provision of devices for, and 
services to, persons with disabilities.

           Special Institutions for Persons with Disabilities

                 AMERICAN PRINTING HOUSE FOR THE BLIND

    The bill provides $6,680,000 for the American Printing 
House for the Blind, the same as the fiscal year 1996 
appropriation and $185,000 above the budget request. This 
appropriation subsidizes the production of educational 
materials for legally blind persons enrolled in pre-college 
programs. The Printing House, which is chartered by the State 
of Kentucky, manufactures and maintains an extensive inventory 
of special materials that are distributed free of charge to 
schools and States based on the number of blind students in 
each State. The Printing House also conducts research and field 
activities to inform educators about the availability of 
materials and how to use them. The Committee commends the 
Printing House on its effort to seek private sector assistance 
in developing a more efficient manufacturing process. The 
Committee directs the Printing House to continue developing 
private sector partnerships to improve efficiency, to reduce 
its dependence on Federal appropriations and to augment its 
non-Federal sources of revenue.

               NATIONAL TECHNICAL INSTITUTE FOR THE DEAF

    The bill provides $43,041,000 for the National Technical 
Institute for the Deaf (NTID), the same as the budget request 
and an increase of $861,000 above the fiscal year 1996 
appropriation. The bill does not adopt the President's proposal 
to provide a separate appropriation for the endowment, but 
continues the policy initiated in the fiscal year 1996 bill of 
allowing NTID to transfer a portion of its appropriation to the 
endowment at its discretion. The Committee directs NTID to 
report to it within 15 days of executing such a transfer.
    The Committee commends NTID for the responsible yet 
difficult decisions it has taken to contribute to deficit 
reduction and improving its efficiency. The Committee notes 
with approval the testimony during the fiscal year 1997 budget 
hearings of the Director of NTID regarding implementation of 
the Institute's strategic plan to improve the Institute's 
efficiency and productivity and to reduce administrative 
overhead to contribute to deficit reduction.
    NTID was established by Congress in 1965 to provide a 
residential facility for postsecondary technical training and 
education for deaf persons with the purpose of promoting the 
employment of deaf individuals. The Institute also conducts 
applied research and provides training in various aspects of 
deafness. The Secretary of Education administers these 
activities through a contract with the Rochester Institute of 
Technology in Rochester, New York.
    During the fiscal year 1997 budget hearings, NTID presented 
research indicating that NTID graduates achieve much higher 
levels of employment and self-sufficiency than hearing-impaired 
non-graduates. The Committee encourages NTID to make student 
retention and improving the institutional graduation rate a 
high priority.

                          GALLAUDET UNIVERSITY

    The bill provides $79,182,000 for Gallaudet University, an 
increase of $1,553,000 above the comparable fiscal year 1996 
appropriation and $848,000 below the budget request. The 
appropriation represents a 2% increase above the fiscal year 
1996 appropriation, the same rate of increase provided for the 
National Technical Institute for the Deaf. The bill does not 
adopt the President's proposal to provide a separate 
appropriation for the endowment but continues the policy 
initiated in the fiscal year 1996 bill of allowing Gallaudet to 
transfer a portion of its appropriation to the endowment at its 
discretion. The Committee directs Gallaudet to report to it 
within 15 days of executing such a transfer.
    The Committee notes with approval the difficult decisions 
Gallaudet has taken to downsize operations, reduce 
administrative overhead, and to improve efficiency and 
productivity.
    Gallaudet is a private, non-profit educational institution 
Federally-chartered in 1864 providing elementary, secondary, 
college preparatory, undergraduate, and continuing education 
for deaf persons. In addition, the University offers graduate 
programs in fields related to deafness for deaf and hearing 
students, conducts various deafness research, and provides 
public service programs for deaf persons.

                     VOCATIONAL AND ADULT EDUCATION

    The bill includes $1,329,669,000 for vocational and adult 
education programs. This amount is $10,581,000 below the fiscal 
year 1996 appropriation and $90,331,000 below the 1997 budget 
request. This appropriation account includes vocational 
education programs authorized by the Carl D. Perkins Vocational 
and Applied Technology Education Act and adult education 
programs authorized by the Adult Education Act, the Stewart B. 
McKinney Homeless Assistance Act, and title VI of the National 
Literacy Act of 1991. Many of the programs within this account 
are unauthorized.

Vocational education basic grants

    This bill includes $972,750,000 for basic grants to states 
under the Carl D. Perkins Vocational and Applied Technology 
Education Act, which is the same as the fiscal year 1996 amount 
and $127,250,000 below the budget request. State formula grants 
support programs that are of sufficient size, scope, and 
quality to be effective; that integrate academic and vocational 
education; and that provide equitable participation in these 
programs for special populations such as the disadvantaged and 
the disabled.
    Consistent with the Committee's policy of giving priority 
to broad based grant programs, level funding is provided for 
this program.

Tech-prep

    The bill includes $100,000,000 for tech-prep which is the 
same as fiscal year 1996 and $100,000,000 above the budget 
request. Funding of this program and school-to-work provides a 
total of $450,000,000 for programs providing transitions from 
school to work.

Tribally controlled postsecondary vocational institutions

    The bill includes $2,919,000 for grants for tribally 
controlled postsecondary vocational institutions, the same as 
both the fiscal year 1996 amount and the budget request. The 
Administration requested no funds for this program. This 
program provides grants for the operation and improvement of 
training programs to ensure continuation and expansion of 
vocational training opportunities for Indian youth.

National programs, research

    For national research programs, the Committee provides no 
funding, which is $4,998,000 below the 1996 amount. This 
authority supports the conduct and dissemination of research in 
vocational education, and includes support for the National 
Center for Research in Vocational Education, six regional 
curriculum coordination centers, and other discretionary 
research.

State programs for adult education

    For state programs authorized by the Adult Education Act, 
the Committee recommends $250,000,000, which is the same as the 
fiscal year 1996 amount, and $40,000,000 below the budget 
request. State formula grants support programs to enable all 
adults to acquire basic literacy skills, to enable those who so 
desire to complete a secondary education, and to make available 
to adults the means to become more employable, productive, and 
responsible citizens.

National programs--evaluations and technical assistance

    The Committee provides no funding for the proposed national 
programs--evaluations and technical assistance. As noted in the 
beginning of this section of the report, the Committee remains 
concerned by the multiple programs dealing with research, 
technical assistance and demonstrations. If there are high 
priority programs that need to be funded, the Committee has 
provided funding in the basic OERI accounts.

National Institute for Literacy

    For the National Institute for Literacy, the bill provides 
$4,000,000, which is $860,000 below the fiscal year 1996 amount 
and $1,000,000 below the budget request. The Institute supports 
research and development projects, tracks progress made toward 
national literacy goals, supports research fellowships, 
disseminates information through a national clearinghouse, and 
coordinates literacy information data from national and state 
sources.

Literacy programs for prisoners

    The Committee recommends no funding for literacy programs 
for prisoners which is the same as the budget request and 
$4,723,000 below the fiscal year 1996 amount.

                      STUDENT FINANCIAL ASSISTANCE

    The bill provides $6,630,407,000 for student financial 
assistance, an increase of $371,820,000 over the fiscal year 
1996 appropriation and $729,000,000 below the budget request. 
The Committee considers student financial assistance to be 
among the highest priorities within its jurisdiction. While 
total discretionary funding allocated to the Labor, Health and 
Human Services and Education appropriations bill has declined 
slightly from the comparable fiscal year 1996 funding levels, 
the Committee has increased funding for student financial 
assistance and has correspondingly reduced funding for lower 
priority programs. The Committee notes that total estimated 
Federal assistance available to students will rise under this 
bill to $40,714,000,000 in fiscal year 1997 from 
$38,298,000,000 in fiscal year 1996, an increase of more than 
$2,400,000,000.

Pell Grants

    The bill raises the maximum Pell Grant from the fiscal year 
1996 level of $2,470 to $2,500, an increase of $30, to provide 
the highest maximum grant ever awarded. This raise in the 
maximum grant will increase the number of students who qualify 
for Pell Grants and will increase grants by $30 for all 3.5 
million students estimated to receive Pell Grants in fiscal 
year 1997. The budget request proposes a maximum grant of 
$2,700.
    The bill provides $5,342,000,000 in new budget authority 
for the Pell Grant program, an increase of $428,000,000 over 
the new budget authority provided in the fiscal year 1996 
appropriation, and $577,000,000 less than the budget request. 
The Committee considers this means-tested voucher program to be 
among the highest priorities under its jurisdiction and has 
made difficult offsetting reductions elsewhere in the bill in 
order to increase the maximum grant.
    The bill includes a provision included in each of the last 
three annual appropriations bills requiring the Department to 
adjust grant awards at the time of publication of the payment 
schedule for award year 1997-1998 if the estimates of the 
budget authority necessary to support a $2,500 maximum grant 
have increased substantially.

Supplemental education opportunity grants

    The bill provides $583,407,000 for supplemental educational 
opportunity grants (SEOGs), the same as the budget request and 
the fiscal year 1996 appropriation. The Committee considers 
these grants to be among the highest priorities under its 
jurisdiction. The SEOG program provides grants through 
postsecondary institutions to qualified students who 
demonstrate exceptional financial need to meet the cost of 
education. Institutions have broad flexibility within the 
eligibility criteria for awarding these grants with the 
exception that priority be given to Pell Grant recipients.

Work-study

    The bill provides $685,000,000 for the work-study program, 
an increase of $68,492,000 over the comparable fiscal year 1996 
appropriation and $6,000,000 over the budget request. The 
Committee considers this program to be among the highest 
priorities under its jurisdiction and has made difficult 
offsetting reductions elsewhere in the bill in order to 
increase funding above the fiscal year 1996 appropriation and 
the President's request. Funding for this program is provided 
through institutions to students who work part-time to meet the 
cost of education. Institutions receive funding according to a 
statutory formula and may allocate it for job location and job 
development centers. The bill includes $1,500,000 to carry out 
the provisions of section 448(f) of the Higher Education Act of 
1965, as amended, which includes a separate authorization of 
appropriations for ``work colleges.''

Perkins loans capital contributions

    The bill does not provide additional funding to increase 
the existing $6,000,000,000 Perkins Loan corpus which is 
managed by approximately 2,700 participating schools. The 
fiscal year 1996 bill provided an additional $93,297,000 and 
the budget requests $158,000,000 in additional capital. The 
Committee has taken this decision consistent with the 
President's fiscal year 1995 budget request which indicated 
that the current Perkins corpus in combination with student 
loans executed under the Federal Family Education Loan program 
and the Federal Direct Student Loan program provide adequate 
sources for student borrowing.
    The Committee notes that total student loan assistance 
available pursuant to current law entitlements and this bill 
will increase by over $2,400,000,000 from the fiscal year 1996 
levels. The Committee further notes that according to 
Administration testimony during the fiscal year 1997 budget 
hearings, in award year 1994-1995, the latest year for which 
data are available, institutions participating in the Perkins 
loan program transferred more than $10,800,000 from their 
Perkins capital contribution allotment to the work-study and 
SEOG programs, activities for which this bill increases fiscal 
year 1997 funding over both the President's request and the 
comparable fiscal year 1996 appropriation. Finally, the 
Committee notes that any student that would otherwise qualify 
for a Perkins loan if new capital were added to the program in 
fiscal year 1997 will qualify for either a Federal Family 
Education Loan or a Federal Direct Student Loan. According to 
information provided by the Department, institutions will make 
approximately $855,000,000 in new Perkins loans in fiscal year 
1997 under the terms of this bill.
    The Perkins loan program provides low-interest loans to 
students through individual institutional revolving funds. 
Institutions are required to match one-third of the Federal 
capital contribution.

Perkins loans cancellations

    -The bill provides $20,000,000 for Federal Perkins loans 
cancellations, the same amount provided in fiscal year 1996 and 
the same as the budget request. The Federal Government 
reimburses institutional Perkins revolving loan funds for loan 
cancellations permitted under federal law. Loans may be 
canceled when the borrower pursues a career in one of 12 
statutorily-designated professions including corrections, 
medical technical work, and Peace Corps or VISTA service.

State Student Incentive Grants

    -The bill does not provide funding for the State Student 
Incentive Grant (SSIG) program consistent with the budget 
request and the recommendations of the National Performance 
Review which indicated that the program has accomplished its 
purpose. The fiscal year 1996 Act provided $31,375,000 for this 
program in the first year of a proposed two-year phase-out of 
funding.
    The Committee notes that total student loan assistance 
available pursuant to current law entitlements and this bill 
will increase by over $2,400,000,000 from the fiscal year 1996 
level.
    -The SSIG program was established in 1972 to encourage and 
expand State scholarship assistance to postsecondary students 
with substantial financial need. At that time, 26 states 
provided such need-based grants. Today, all 50 states and the 
District of Columbia provide such assistance. In addition, 46 
states over-match the SSIG requirement, 42 states award need-
based aid in addition to SSIG, 33 states award non-need-based 
aid, 23 states support part-time students, and 21 states assist 
graduate as well as undergraduate students. SSIGs now account 
for only 2.5% of grants awarded by States. All States have 
participated in the SSIG program since 1978.
    -The Committee concurs with the findings of the National 
Performance Review which indicated that 24 years of Federal 
support has been more than sufficient to encourage States to 
develop their own student financial assistance programs. State 
grant programs have been aware for some time of Congressional 
and Administration proposals to phase out or terminate Federal 
funding for this program. Each of the States should be well 
prepared to maintain state student assistance during the phase 
out of Federal funding.
    -The Committee notes that the Administration testified 
during the fiscal year 1997 hearings that studies have 
indicated that in the twenty-five largest States which provide 
80% of all State student aid, Federal SSIG appropriations 
historically have had no effect on State expenditures.

                 FEDERAL FAMILY EDUCATION LOAN PROGRAM

    -The bill provides $29,977,000 for administration of the 
Federal Family Education Loan (FFEL) program, the same as the 
comparable fiscal year 1996 appropriation and $16,595,000 below 
the budget request. This discretionary administrative funding 
is provided in the FFEL appropriation account rather than under 
the Department's Salaries and Expenses account pursuant to a 
requirement of the Federal Credit Reform Act of 1990. These 
funds support Federal administrative activities including 
processing payments and claims, reducing loan default costs, 
and program monitoring. FFEL loans are financed with private 
capital and reinsured by the Federal Government against 
borrower default, death, disability and bankruptcy. Federal 
costs include payments for such insurance claims as well as 
support for borrower interest benefits. FFEL loans have 
supported over $150,000,000,000 in loans to student and parent 
borrowers since their inception. This account includes 
discretionary Federal administrative costs only. Additional 
amounts for new FFEL subsidies and mandatory administrative 
expenses for fiscal year 1997 are provided under permanent 
authority.

                            HIGHER EDUCATION

    The bill provides $829,497,000 for higher education 
programs, a decrease of $7,460,000 below the comparable fiscal 
year 1996 appropriation and $143,274,000 below the budget 
request. The bill does not adopt the Administration request to 
create a new merit-based scholarship program in fiscal year 
1997. The Committee notes that the Administration has not even 
transmitted a proposal for the necessary authorization for this 
program. In addition, the Administration is requesting 
$130,000,000 for this new merit-based program at the same time 
it is requesting to reduce scholarship amounts provided under 
the existing Federal merit-based scholarship program.
    The Committee believes that the Department should take a 
more active role in monitoring compliance with the provisions 
of the Higher Education Act related to campus crime, including 
section 485(f) which requires schools to compile and distribute 
campus crime data. The Committee notes the Department's 
responsibility under Section 485(f)(4)(B) to provide technical 
assistance to schools participating in programs under Title IV 
of the Act to improve the accuracy of their crime reports. The 
Committee believes the Department should place greater emphasis 
on providing such assistance and directs the Department to 
report to the Committee during the fiscal year 1998 budget 
hearings regarding the additional efforts it has made regarding 
this matter. In addition, the Committee directs the Department 
to require all schools to submit campus crime information to 
the Department and to verify the accuracy of campus crime 
reports.

Strengthening institutions

    The bill provides $55,450,000 for the regular strengthening 
institutions program, the same as the comparable fiscal year 
1996 appropriation, $15,450,000 above the budget request, and 
$5,160,000 above the amount necessary to fully fund all 
continuing multi-year grants. This program provides general 
operating subsidies for institutions with low average 
educational and general expenditures per student and 
significant percentages of low-income students. Awards may be 
used for faculty and academic program development, management, 
joint use of libraries and laboratories, acquisition of 
equipment, and student services.

Hispanic serving institutions

    The bill provides $10,800,000 for the Hispanic serving 
institutions (HSIs) program, the same as the fiscal year 1996 
appropriation and $1,200,000 below the budget request. The bill 
includes a provision contained in the budget request overriding 
the current law requirement that funds be appropriated for the 
HSI program only when appropriations for the regular 
strengthening institutions program equal or exceed $80,000,000. 
The HSI program provides operating subsidies to schools which 
serve at least 25% Hispanic students of whom at least half are 
low-income, first-generation students and at least a quarter of 
whom are either low-income or first-generation students.
    The Committee notes that $2,000,000 in new program funding 
is provided in the House version of the Agriculture 
appropriations bill for fiscal year 1997. In combination with 
the funding in the Agriculture bill, this bill makes available 
a total of $12,800,000 for HSIs, an increase of $2,000,000 over 
the fiscal year 1996 appropriation and $800,000 over the budget 
request.

Strengthening historically black colleges and universities

    The bill provides $108,990,000 for strengthening 
historically black colleges and universities (HBCUs), the same 
as the fiscal year 1996 appropriation and the budget request. 
This program provides operating subsidies to accredited, 
legally authorized HBCUs established prior to 1964 whose 
principal mission is the education of black Americans. Funds 
may be used to support both programs and management and are 
distributed through a formula grant based on the enrollment of 
Pell Grant recipients, number of graduates, and the number of 
graduates entering graduate or professional schools in which 
blacks are underrepresented. The minimum grant is $500,000.

Strengthening historically black graduate institutions

    The bill provides $19,606,000 for the strengthening 
historically black graduate institutions program, the same as 
the fiscal year 1996 appropriation and the budget request. The 
program provides 5-year grants to the following 16 post-
secondary institutions which are specified in section 326(e)(1) 
of the Higher Education Act: Morehouse School of Medicine, 
Meharry Medical School, Charles R. Drew Postgraduate Medical 
School, Clark-Atlanta University, Tuskegee University School of 
Veterinary Medicine, Xavier University School of Pharmacy, 
Southern University School of Law, Texas Southern University 
School of Law and School of Pharmacy, Florida A&M University 
School of Pharmaceutical Sciences, North Carolina Central 
University School of Law, Morgan State University qualified 
graduate program, Hampton University qualified graduate 
program, Alabama A&M qualified graduate program, University of 
Maryland Eastern Shore qualified graduate program, and Jackson 
State qualified graduate program. No grants may be made to the 
last 11 institutions until the first 5 institutions have 
received at least $12 million. Grants are limited to $500,000 
unless the institution agrees to match the entire grant with 
the exception of a minimum $3,000,000 set-aside for the 
Morehouse School of Medicine. Awards may be used for building 
endowments as well as the same purposes for which the 
strengthening HBCU grants may be used.

Endowment grants

    The bill does not provide funding for the endowment 
challenge grants program consistent with the policy adopted in 
the fiscal year 1996 appropriations Act. The Administration 
proposed to terminate the regular endowment challenge grant 
program and to amend the underlying law to permit funding the 
HBCU endowment set-aside at the 1995 level of $2,015,0000 
without funding the underlying program as is currently 
required.
    Endowment challenge grants may be awarded to institutions 
eligible for other strengthening institutions programs on a 
matching basis of one institutional dollar for every two 
Federal dollars. Grants may not exceed $500,000 until total 
appropriations for endowment grants exceed $15,000,000.
    The Committee believes that these grants are too small to 
generate any substantial impact on the endowments of 
participating schools or to meaningfully support the goal of 
self-sufficiency. The Committee concurs with the Administration 
request to terminate the regular program consistent with the 
Reinventing Government recommendations, and for the same 
reasons, the bill does not provide funding for the HBCU 
endowment set-aside.

Fund for the Improvement of Postsecondary Education

    The bill provides $15,000,000 for the fund for the 
improvement of postsecondary education (FIPSE), the same as the 
comparable fiscal year 1996 appropriation and $3,000,000 below 
the budget request. FIPSE awards grants and contracts to a 
variety of postsecondary institutions and other organizations 
to improve the quality and delivery of postsecondary education. 
The Committee notes with approval the Department's proposal to 
award grants focusing on restructuring and cost-containment 
within the postsecondary education industry.

Minority teacher recruitment

    The bill provides $2,212,000 for the minority teacher 
recruitment program, the same as the comparable fiscal year 
1996 appropriation and $246,000 below the budget request. The 
Committee has provided funding for this program because it 
believes the recruitment of minority teachers to support a 
racially balanced teaching population is a high priority for 
the country. However, the Committee remains concerned about the 
ability of a program of this size to meaningfully impact the 
racial distribution of the national teacher population. 
Accordingly, the Committee directs the Department to measure 
the impact of the program according to quantifiable indicators 
of program success in achieving the program goals indicated in 
the fiscal year 1997 budget justification.
    The minority teacher recruitment program awards two types 
of grants. Partnership grants support institutions of higher 
education in developing partnerships with local educational 
agencies and community based organizations to recruit and train 
minorities for teaching careers. Teacher placement grants 
support departments of education in developing and implementing 
programs to prepare students to become elementary and secondary 
school teachers and to place them in jobs with schools that 
have substantial minority populations.

Minority science improvement

     -The bill provides $5,255,000 for the minority science 
improvement program (MSIP), the same as the comparable fiscal 
year 1996 appropriation and $584,000 below the budget request. 
The bill also contains provisions included in the budget 
request to override two provisions in the underlying law which 
set-aside funds for non-predominately minority institutions of 
higher education and for grants to organizations ``for a broad 
range of activities designed to eliminate or reduce specific 
barriers to the entry of minorities into science and 
technology.''
    -The Committee considers the recruitment and training of 
minorities in the fields of science, engineering and 
mathematics to be high priorities for the country and has 
therefore continued funding for this program. However, the 
Committee is concerned that the Administration testified during 
the fiscal year 1997 budget hearings that during the 22 year 
history of the MSIP program, the Department has developed no 
quantifiable outcomes indicators by which to measure the 
success of or indicate potential improvements in the program. 
Accordingly, the Committee finds no basis on which to approve 
the Administration request for increased funding. Rather, the 
Committee directs the Department to develop tools to measure 
the impact of the program according to quantifiable indicators 
of program success in achieving the program goals indicated in 
the fiscal year 1997 budget justification.
    -The MSIP program awards grants to improve mathematics, 
science, and engineering programs at institutions serving 
primarily minority students and to increase the number of 
minority students who pursue advanced degrees and careers in 
those fields.

International education and foreign languages studies

            Domestic programs
    -The bill provides $53,481,000 for the domestic activities 
of the international education and foreign languages studies 
programs, an increase of $3,000,000 over the comparable fiscal 
year 1996 appropriation and $1,198,000 over the budget request. 
The Committee has provided funding to continue this program 
because it believes that foreign language and international 
education are high priorities for the country. Nevertheless, 
the Committee was disturbed to learn during the fiscal year 
1997 budget hearings that the Department has not developed 
quantifiable outcomes indicators by which to measure the 
success of or indicate potential improvements in the program. 
The Committee directs the Department to develop tools to 
measure the impact of the program according to quantifiable 
indicators of program success in achieving the program goals 
indicated in the authorizing statute and the fiscal year 1997 
budget justification.
    -The program assists graduate and undergraduate foreign 
language and area studies programs and students at institutions 
of postsecondary education. Programs include national resource 
centers, foreign language and area studies fellowships 
undergraduate international studies and foreign language 
programs, international research and studies projects, business 
and international education projects, international business 
education centers, language resource centers, and American 
overseas research centers. In general, the Secretary has 
discretion to allocate funding among these various activities.

Overseas programs

    -The bill provides $4,750,000 for the overseas programs in 
international education and foreign language studies authorized 
under the Mutual Educational and Cultural Exchange Act of 1961, 
popularly known as the Fulbright-Hays Act. The appropriation is 
the same as the comparable fiscal year 1996 appropriation and 
$1,040,000 below the request. The Committee has continued 
funding for the overseas programs because it considers 
international education and foreign language studies to be a 
high priority for the country. However, the Committee is 
concerned about the lack of quantifiable data regarding the 
program's success in accomplishing the purposes for which it 
was established. Therefore, the Committee directs the 
Department to report on program success in achieving the goals 
indicated in the authorizing statute in the fiscal year 1997 
budget justification.
    -Funding for these programs supports group projects abroad, 
faculty research abroad, special bilateral projects, and 
doctoral research abroad.

Institute for International Public Policy

    -The bill does not provide funding for the Institute for 
International Public Policy, a decrease of $920,000 below the 
comparable fiscal year 1996 appropriation and $1,000,000 below 
the budget request. This program provides a grant to the United 
Negro College Fund to operate the Institute through sub-
grantees chosen among minority serving institutions.
    -The Committee notes that the bill provides $139,396,000 in 
unrestricted operating subsidies to HBCUs and HSIs under the 
strengthening institutions programs which may be used for the 
purposes of supporting the Institute for International Public 
Policy if the recipient institutions deem it to be a 
sufficiently high priority to merit the allocation of limited 
Federal and institutional resources. Specifically, according to 
the Department of Education, the fiscal year 1995 sub-grantees 
of the Institute for International Public Policy received over 
$7,700,000 in fiscal year 1995 strengthening institutions 
funding.

Law school clinical experience

    -The bill does not provide funding for the law school 
clinical experience program consistent with the budget request 
and the policy adopted in P.L. 104-19 and P.L. 104-134 to phase 
out federal appropriations by providing funding only to 
continue existing multi-year grants. The last new 3-year grants 
were awarded in fiscal year 1994 and are funded to completion 
in fiscal year 1996. The fiscal year 1996 appropriation was 
$5,500,000.
    -The Committee concurs with the administration proposal to 
terminate the law school clinical experience program in accord 
with the findings of the National Performance Review that the 
program does not perform a federal responsibility, and 
regardless, has already achieved its purpose. The American Bar 
Association, which is the national accrediting agency for law 
schools, recommends that all schools provide students clinical 
experience in order to obtain accreditation. In addition, 
because clinical experience is generally considered a critical 
component of legal education and because virtually all schools 
operate clinical experience programs, schools have an economic 
incentive to provide such opportunities in order to attract 
students regardless of whether Federal funding is available for 
such activities. For these reasons, the Committee believes that 
this program clearly does not perform a Federal responsibility 
and should not be funded during this period of fiscal 
constraint.

Urban community service

    -The bill provides $8,280,000 for the urban community 
service program, a decrease of $920,000 below the fiscal year 
1996 appropriation. The budget request does not include funding 
for this program. Funds are allocated for 5-year urban 
community service grants to universities for projects which 
address urban problems and needs such as job training, poverty, 
health care, substandard schools, problems of the elderly, 
problems of families and children, environmental concerns, 
economic development, crime prevention, and urban 
infrastructure.
    -The Committee concurs with the Reinventing Government 
proposal which concluded that urban community services are not 
a primary responsibility of the Department of Education. In 
addition, the Federal Government operates many programs which 
directly address the purposes of this program in a more focused 
manner with national scope. Therefore, the Committee has 
reduced funding for this program by 10% from the fiscal year 
1996 level.

Interest subsidy grants

    -The bill provides $15,673,000 for interest subsidy grants 
authorized under section 702 of the Higher Education Act, the 
same amount requested in the budget and $1,039,000 below the 
comparable fiscal year 1996 appropriation. This program 
provides loan subsidies to higher education institutions for 
facilities acquisition, construction and renovation loans taken 
prior to 1974. All loans will terminate by the year 2013. The 
authority to initiate new loan subsidy commitments was repealed 
in the 1992 amendments to the Higher Education Act. Interest 
subsidies provide institutions the difference between the 
interest they pay on commercially-obtained loans and 3% of the 
loan balance. The bill provides funding sufficient to meet the 
Federal Government's commitments on the 274 loans expected to 
be in repayment status in fiscal year 1997.

TRIO

    -The bill provides $500,000,000 for the six TRIO programs, 
an increase of $37,007,000 over the comparable fiscal year 1996 
amount and the same as the budget request. The Committee 
recommends this substantial investment in TRIO because it 
believes that the recruitment and retention of an economically 
and racially balanced postsecondary student population is a 
high priority for the country. The Committee notes that funding 
for the TRIO programs has increased by 107% since fiscal year 
1990.
    The TRIO programs provide a variety of outreach and support 
services to encourage low-income, potential first-generation 
college students to enter and complete college. The Committee 
is concerned that TRIO be fully evaluated against its 
performance goals to ensure that students receive the maximum 
benefit possible from the federal investment in their education 
and to justify this substantial level of support. The Committee 
is especially concerned that the preliminary evaluation data 
reported in the fiscal year 1997 budget justification are not 
directly related to the most important purposes of the TRIO 
programs: enrolling, retaining, and graduating TRIO students in 
and from postsecondary programs of education. The Committee 
directs the Department to provide quantifiable evaluation data 
comparable across grantees that directly indicate the level of 
success in achieving the goals of the TRIO programs as 
identified in the authorizing statute and the fiscal year 1997 
budget justification.

Early intervention scholarships and partnerships

    -The bill does not provide funding for the early 
intervention scholarships and partnerships program, the same as 
the budget request and a decrease of $3,108,000 below the 
fiscal year 1996 appropriation. This program supports grants to 
9 states to provide support services to students at risk of 
dropping out of school. States must also guarantee some level 
of tuition assistance for participating students who meet 
State-specified academic goals.
    The Committee concurs with the budget request which states 
that the program, ``* * * is overly complex and would require a 
significant investment of Federal funds to operate at a level 
that would have a national impact. In view of the significant 
level of Federal student aid and TRIO program services 
available to postsecondary students, the Administration does 
not recommend funding * * * '' The early intervention 
scholarships and partnerships duplicate the purposes of state 
student financial assistance programs, the TRIO program, and 
Federal student financial assistance programs. The Committee 
notes that this bill together with current law entitlements 
will provide over $40,000,000,000 in student financial 
assistance in fiscal year 1997 to students pursuing 
postsecondary education, an increase of more than 
$2,400,000,000 over the amount available in fiscal year 1996. 
Much of this assistance is ``guaranteed'' to students in the 
form of loan program entitlements.

Bethune-Cookman College fine arts center

    The bill does not provide funding for the Bethune-Cookman 
College memorial fine arts center, the same as the budget 
request and $3,680,000 below the comparable fiscal year 1996 
appropriation. This program, if funded, would provide earmarked 
or single-source funding to Bethune-Cookman College to initiate 
phase III of an extensive campus construction project.
    Phase I of the project--construction of a three-story 
building including classrooms, library, multi-media center and 
exhibit hall--was completed with $6,200,000 in non-competitive 
federal funding. Congress has already provided $7,680,000 to 
complete Phase II of the project which includes construction of 
a performing arts center and a hospitality management training 
facility.
    In general, the Committee does not believe that Federal 
funding ought to be designated for specific institutions non-
competitively. Capital projects are the responsibility of 
individual education institutions, not the Federal government. 
The bill provides administrative funding of $104,000 for the 
HBCU capital financing program to make available $357,000,000 
in bond financing to HBCUs, including Bethune-Cookman, for 
capital projects. In addition, the Federally-chartered Connie 
Lee provides bond insurance to colleges and universities to 
reduce the interest paid on bonds necessary to undertake 
capital projects.

Byrd scholarships

    The bill does not provide funding for the Byrd honors 
scholarships program, a reduction of $29,117,000 below the 
comparable fiscal year 1996 appropriation and the budget 
request. The bill does not include a legislative provision 
requested by the President to reduce the average Byrd 
scholarship from $1,500 to $1,110 in fiscal year 1997.
     The Byrd scholarship program provides formula grants to 
States to award four-year $1,500 scholarships to students who 
demonstrate academic excellence in high school. The program was 
initiated as a one-year scholarship program and was later 
expanded to a four-year program.

Unauthorized merit-based assistance

    The bill does not provide funding for the new merit-based 
scholarship program included in the budget request. The 
Committee notes that the Department has declined even to 
transmit a proposal for the authorizing law that is a necessary 
pre-requisite to appropriations. In addition, the Committee 
notes that the budget request proposes to create a broad new 
$130,000,000 merit-based program at the same time it is 
requesting a 26% reduction in scholarship amounts under the 
existing merit-based Byrd scholarship program.

Javits fellowships

    The bill does not provide separate funding for the Javits 
fellowships program but does provide funding to continue all 
existing Javits fellowships at a cost of $3,632,577 under the 
Graduate Assistance in Areas of National Need (GAANN) program 
consistent with the budget request. The Javits fellowships were 
funded at $5,931,000 in the fiscal year 1996 appropriations 
Act.
    The Javits fellowships program provides fellowships of up 
to $14,400 to students of superior ability pursuing doctoral 
study in the arts, humanities, and social sciences. The bill 
continues the policy established in P.L. 104-19 and P.L. 104-
134 of terminating new fellowships but funding existing multi-
year commitments to completion.

Graduate assistance in areas of national need

    The bill provides $30,000,000 for the graduate assistance 
in areas of national need program, the same as the budget 
request and an increase of $2,748,000 above the comparable 
fiscal year 1996 appropriation. The program awards grants to 
institutions of higher education to provide fellowships of up 
to five years and $14,400 to economically disadvantaged 
students with emphasis on those from traditionally 
underrepresented backgrounds who have demonstrated academic 
excellence and who are pursuing graduate education in 
designated areas of national need.
    The Committee believes that this program represents a high 
priority for the country by virtue of its emphasis on student 
financial need, underrepresented groups, academic excellence, 
and study in areas of national need. Nevertheless, the 
Committee is concerned that during the fiscal year 1997 budget 
hearings the Department testified that it does not maintain 
data on how many individuals from underrepresented backgrounds 
are served through this program and whether their level of 
achievement is improved by virtue of their participation in the 
program. The Committee therefore directs the Department to 
evaluate the success of the program in serving individuals from 
underrepresented backgrounds and whether and how much such 
individuals' level of achievement is improved by virtue of 
participation in the program.
    The Committee concurs in the Administration proposal to 
fund existing Javits and Harris fellowships to completion under 
the GAANN program.

                           HOWARD UNIVERSITY

    The bill provides $187,348,000 for Howard University, an 
increase of $5,000,000 over the comparable fiscal year 1996 
funding level and $8,615,000 below the request. Howard 
University is a ``Research I'' university located in the 
District of Columbia. Direct appropriations for Howard 
University are authorized by 20 U.S.C. 123, originally enacted 
in 1867. The Committee is pleased with the testimony presented 
during the fiscal year 1997 budget hearings regarding the 
University's plans to consolidate program and administrative 
activities to improve the effectiveness and efficiency of the 
University. The Committee commends the University on 
development of its strategic plan and encourages its 
expeditious implementation.

Academic program

    The bill includes $157,859,000 for the regular 
appropriation for Howard University, an increase of $5,000,000 
over the comparable appropriation for fiscal year 1996 and 
$5,085,000 below the budget request. Howard University provides 
undergraduate liberal arts, graduate and professional 
instruction to over 11,000 students from 47 states. Masters 
degrees are offered in over 85 fields and Doctor of Philosophy 
degrees in 24 fields.
    The bill does not include a provision contained in the 
budget request to earmark funds for the endowment. Rather, the 
bill continues the policy established in the fiscal year 1996 
appropriations Act which allows the university to dedicate a 
portion of its regular appropriation to the endowment at its 
discretion. The Committee directs that Howard notify the 
Congress of any transfer from the regular appropriation to the 
endowment at least 15 days prior to execution of the transfer.
    The bill, consistent with the policy established in P.L. 
104-134, provides Howard with a single appropriation. The 
Committee believes that Howard should have the discretion to 
use these funds as the university administration and Board of 
Trustees see fit. The Committee notes that the authority under 
which funds are appropriated for Howard permits expenditures 
for academic services, financial support of students, 
contributions to the university endowment or construction.
    The Committee expects that Howard University will submit a 
single budget request for academic-related activities and not 
submit separate project- or activity-specific requests.

Howard University Hospital

    The bill includes $29,489,000 for the Howard University 
Hospital, the same level as both the fiscal year 1996 amount 
and the budget request. The hospital serves as a major acute 
and ambulatory care center for the District of Columbia. It 
provides both inpatient and outpatient services and serves as a 
facility for training physicians, nurses, and other 
professional and technical health care personnel. The direct 
federal appropriation partly finances these activities.

         COLLEGE HOUSING AND ACADEMIC FACILITIES LOANS PROGRAM

    The bill provides $698,000 for the Federal administration 
of the college housing and academic facilities loan program, 
the same as the comparable fiscal year 1996 appropriation and 
$2,000 less than the budget request. Under the terms of the 
Federal Credit Reform Act of 1990, these funds reimburse the 
Department for salaries and expenses that are directly related 
to the administration of the loan program. These costs are 
incurred for the continuation of the existing loan program, 
whether or not new borrowing authority is provided during the 
current fiscal year. The bill does not include authority for 
the Department to make new loans during fiscal year 1997.

HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL AND FINANCING PROGRAM

Federal administration

    The bill provides $104,000 for the administration of the 
historically black college and university capital financing 
program authorized under part B of title VII of the Higher 
Education Act. This amount is $62,000 less than the comparable 
fiscal year 1996 appropriation and the same as the budget 
request. The program is intended to make capital available for 
repair and renovation of facilities at historically black 
colleges and universities. In exceptional circumstances, 
capital provided under the program can be used for construction 
or acquisition of facilities.

Bond subsidies

    Under the HBCU capital program, a private, for-profit 
``designated bonding authority'' issues construction bonds to 
raise capital for loans to historically black colleges and 
universities for construction projects. The Department provides 
insurance for these bonds, guaranteeing full payment of 
principal and interest to bond holders. Federally insured bonds 
and unpaid interest are limited by statute to $357,000,000. The 
letter of credit limitation establishes the total amount of 
bonds which can be issued by the designated bonding authority. 
The credit limitation must be explicitly stated in an 
appropriation Act according to the authorizing legislation.

            EDUCATION RESEARCH, STATISTICS, AND IMPROVEMENT

    The bill includes $319,264,000 for education research, 
statistics, and improvement programs. This amount is 
$315,486,000 less than the budget request, and $31,382,000 
below the fiscal year 1996 level. This account supports 
education research authorized under the Educational Research, 
Development, Dissemination, and Improvement Act of 1994, title 
IX of P.L. 103-227; the National Center for Education 
Statistics and the National Assessment of Educational Progress 
authorized by the National Education Statistics Act of 1994, 
title VI of P.L. 103-382; titles II, III, X, and XIII of the 
Elementary and Secondary Education Act; and title VI of Goals 
2000: Educate America Act.

Research

    This bill includes $123,641,000 for educational research, 
an increase of $15,641,000 over the budget request and 
$16,620,000 over the fiscal year 1996 amount. The Office of 
Educational Research and Improvement conducts research and 
development activities, which are authorized under the 
Educational Research, Development, Dissemination, and 
Improvement Act of 1994, title IX of P.L. 103-227. The 1994 Act 
established a National Educational Research Policy and 
Priorities Board within the Office of Educational Research and 
Improvement, and authorizes five new national research 
institutes for the following subject areas: (1) student 
achievement, curriculum, and assessment; (2) education of at-
risk students; (3) educational governance, finance, policy-
making, and management; (4) early childhood development and 
education; and (5) postsecondary education, libraries, and 
lifelong learning. The Assistant Secretary is authorized to 
support activities to increase the participation of minority 
researchers and institutions as well as research and 
development centers, in order to support the objectives of the 
national research institutes. A new national education 
dissemination system is established to coordinate various 
dissemination activities, including an electronic network 
linking various offices and activities at the Department of 
Education; maintain the 16 Educational Resources Information 
Center Clearinghouses (ERIC); identify successful educational 
programs and disseminate information about them; provide 
contracts for the operation of regional educational 
laboratories to conduct research and development, provide 
technical assistance, promote education reform, and assist 
rural education; including learning grant institutions and 
district education agents; support a teacher research 
dissemination demonstration program; and operate the National 
Library of Education.
    The Committee encourages the Office of Education Research 
and Improvement to continue to support the evaluation, 
expansion and dissemination of innovative programs through 
which local community-based cultural organizations collaborate 
formally with local schools to provide music education and 
infuse music into core curricula.
    The Committee is also pleased that the Office of Education 
Research and Improvement is considering supporting outcomes-
based research to quantify the degree to which involvement in 
one-to-one mentoring programs contribute to the academic 
performance of children placed at-risk. The Committee 
encourages OERI to continue to place a high priority on this 
research and demonstration initiative within the funds 
provided.
    The funding level provided in the bill assumes funding for 
the National Board for Professional Teaching Standards as 
proposed by the President.
    The Committee reiterates its intent, expressed in the 
Conference Report on the Omnibus Consolidated Rescissions and 
Appropriations Act of 1996 (P.L. 104-134) (Report No. 104-537) 
that all work of the Regional Education Laboratories be based 
on the priorities established by their regional governing 
boards.
    As noted elsewhere in this report, the Committee is 
concerned by the lack of data on the effectiveness of programs 
within the Department of Education and encourages the Office to 
include, within its planning process, activities that will 
develop evaluation techniques for federally funded education 
programs and to begin to develop and fund projects to evaluate 
the Department's programs. These activities should be carried 
out in conjunction with the performance measures being 
developed under the Government Performance and Results Act.

Statistics

    This bill includes $50,000,000 for the activities of the 
National Center for Education Statistics, exclusive of the 
National Assessment of Educational Progress. This amount is 
$3,773,000 above the fiscal year 1996 amount, and the same as 
the budget request. Statistics activities are authorized under 
the National Education Statistics Act of 1994, title VI of P.L. 
103-382. The Center collects, analyzes, and reports statistics 
on all levels of education in the United States. Activities are 
carried out directly and through grants and contracts. Major 
publications include ``The Condition of Education'' and 
``Digest of Education Statistics.'' Other products include 
projections of enrollments, teacher supply and demand, and 
educational expenditures. Technical assistance to state and 
local education agencies and postsecondary institutions is 
provided. International comparisons are authorized.

Assessment

    This bill includes $32,623,000 for the National Assessment 
of Educational Progress, the same as the fiscal year 1996 
amount, and $127,000 below the budget request. The Assessment 
is authorized under section 411 of the National Education 
Statistics Act of 1994, and is the only nationally 
representative survey of educational ability and achievement of 
American students. The primary goal of the Assessment is to 
determine and report the status and trends of the knowledge and 
skills of students, subject by subject. Subject areas assessed 
in the past have included reading, writing, mathematics, 
science, and social studies, as well as citizenship, 
literature, art, and music. The Assessment is operated by 
contractors through competitive awards made by the National 
Center for Education Statistics; a National Assessment 
Governing Board formulates the policy guidelines for the 
program.

Fund for the improvement of education

    The bill includes $40,000,000 for the fund for the 
improvement of education which is the same as the budget 
request and $2,389,000 above the fiscal year 1996 amount. The 
fund for the improvement of education has a broad portfolio of 
activities related to the national education goals and systemic 
education reform. Under the fund, the Secretary of Education 
supports activities that identify and disseminate innovative 
educational approaches.

International education exchange

    This bill includes $3,000,000 for the international 
education exchange program authorized under title VI of the 
Goals 2000: Educate America Act, which is the same as the 
budget request and $2,000,000 less than the fiscal year 1996 
amount. This program provides to educators in eligible 
countries overseas selected curricula and teacher training 
programs in civics and economic education that have been 
developed in the United States.

21st century community learning centers

    The bill provides no funding for 21st century community 
learning centers, the same as the budget request and $750,000 
below the 1996 amount. The program supports grants to rural and 
inner-city public elementary or secondary schools, or consortia 
of such schools, to enable them to plan, implement, or expand 
projects that benefit the educational, health, social services, 
cultural, and recreational needs of rural or inner-city 
community.
    This program provides only six grants. It is clearly 
duplicative of other provisions of the Elementary and Secondary 
Education Act, as amended, which authorize local education 
agencies, individual schools, or consortia of schools to use up 
to 5% of the funds they receive under ESEA to establish and 
implement coordinated services projects that provide elementary 
and secondary school students and their families with better 
access to social, health and education services.

Civic education

    This bill includes $4,000,000 for the civic education 
program, the same as both the budget request and the fiscal 
year 1996 level. Under this program, a sole source award is 
made to the Center for Civic Education for its ``We the 
People'' program.

Eisenhower professional development national activities

    This bill includes no funding for the Eisenhower 
professional development national activities, which is 
$15,000,000 below the budget request and $17,984,000 less than 
the fiscal year 1996 amount. The purpose of this program is to 
support activities of national significance related to 
professional development in core subject areas.
    As noted above, the Committee is concerned by the 
Department's insistence in maintaining the broad array of 
research, technical assistance, dissemination and demonstration 
programs. As with the other similar accounts, the Committee 
expects the Secretary to use his broader authorities, through 
the research priorities plan, to fund the highest priority 
projects and activities.

Educational technology: technology for education

    This bill includes $48,000,000 for the technology for 
education program, $277,000,000 below the budget request and 
the same as the fiscal year 1996 amount. The purpose of this 
program is to support technology applications in elementary and 
secondary schools, professional development in educational 
technology, and technology-related services in nationally 
significant activities.
    The Committee carefully reviewed the administration's 
request for an over 600% increase in this account and is not 
recommending such an increase. When asked in hearings before 
the Subcommittee on Labor, Health and Human Services and 
Education and Related Agencies for the amounts the federal 
government is currently spending on educational technology the 
Secretary of Education responded ``The Department does not have 
data to document the amount of this spending.'' The Secretary 
did provide the Committee with data indicating that Title VI 
(Formerly Chapter 2) which the Administration proposes to 
terminate, spent between $50,000,000 and $60,000,000 per year 
on education technology. They also provided results of a study 
that indicated that of the $3,300,000,000 spent by the schools 
on technology, an estimated 25% came from federal sources, 
although no information was provided on what the sources were 
or the uses to which the funds were put. Similarly, in 
testimony, the Assistant Secretary for Educational Research and 
Improvement indicated that the Department does not know the 
amount of money it spends on training professionals in the use 
of technology in the classroom.
    The Assistant Secretary, in her testimony, indicated that 
in addition to the Chapter 2 funding, title I grantees spent 
$450,000,000 for technology in school year 1994-95 and Goals 
2000 funding provided an additional $5,000,000. Yet, neither 
the Secretary nor the Assistant Secretary provided the 
Committee with any information on how these substantial flows 
of money would be coordinated with the new, proposed spending 
to assure its effectiveness.
    More importantly, in its Budget Justification, the 
Department indicated that ``* * * for many important questions, 
there is still little sound research knowledge.'' Included 
among the areas mentioned in the Justification are (1) how to 
use computer technology in the classroom to improve student 
learning and improve teaching of mathematics and science, and 
(2) ``What uses of computers move beyond entertainment to true 
learning of challenging subject matter.''
    The Committee believes that without a better understanding 
of current spending, the effectiveness of current expenditures, 
and a better knowledge base of how to employ technology any 
increase in this account is premature.
    The Committee also notes that there is very little high 
quality educationally sound software for K-12 instruction. The 
Department is encouraged to explore methods to encourage the 
development of such software through demonstrations and other 
activities.
    The Committee specifically notes that ``I Can Learn'' is a 
particularly effective computerized teaching program for 
teaching algebra I and was tested in McDonogh #35 high school, 
an inner city magnet school in New Orleans. Such programs allow 
students to progress at their own rate, automate repetitive 
tasks, and help assure equal outcomes for both males and 
females. Students using ``I Can Learn'' learned 53% faster and 
retained 37% more than a control group. As noted above, the 
Committee strongly urges the Department to support the 
demonstration and technical assistance necessary to allow 
programs such as ``I Can Learn'' to be more widely adopted. The 
Department is instructed to provide the Committee with a report 
on the progress in supporting the implementation of such 
programs.

Educational technology: star schools

    The bill includes no funding for the star schools program, 
$25,000,000 less than the budget request and $23,000,000 less 
than the fiscal year 1996 amount. This program supports the 
development of statewide or multi-state telecommunications 
partnerships. Among other activities, these partnerships have 
sought to increase the availability of courses in mathematics, 
science, and foreign languages; serve educationally 
disadvantaged students; and train teachers in the use of 
telecommunications equipment. The Committee decided to 
consolidate funding for this program into title VI, Innovative 
educational program strategies. This decision provides maximum 
flexibility to states and localities to fund technology, an 
activity which already represented a substantial portion of 
title VI spending.

Educational technology: ready to learn television

    The bill includes no funding for ready to learn television, 
$7,000,000 less than the budget request and $6,440,000 less 
than the 1996 amount. Program objectives include the 
development and distribution of educational and instructional 
video programming for preschool and elementary school children 
and their parents.

Javits gifted and talented education

    This bill includes $3,000,000 for the Jacob K. Javits 
Gifted and Talented Students Education Act, $7,000,000 below 
the budget request and the same as the 1996 amount. This 
program provides assistance to state and local education 
agencies, higher education institutions, and other agencies for 
research, demonstration, training, and other activities to 
identify and meet the educational needs of gifted and talented 
students.

Eisenhower regional mathematics and science education consortia

    This bill includes $15,000,000 for the Eisenhower regional 
mathematics and science education consortia, the same as the 
budget request and the 1996 amount. The purpose of the 
consortia is to disseminate exemplary mathematics and science 
instructional materials and provide technical assistance in the 
use of improved teaching methods and assessment tools.

National writing project

    The bill provides no funding for the National Writing 
Project which is the same as the budget request and $2,955,000 
below the fiscal year 1996 level. The Committee concurs with 
the Administration that this program, while very successful, 
has been funded since 1976, has proven the value of its 
techniques and can now be supported by state and local funding 
either using federal funds such as the expanded title VI 
(Innovative Strategies) or non-federal sources.

                               LIBRARIES

    The bill includes $108,000,000 for programs of assistance 
to libraries. This amount is $2,000,000 below the fiscal year 
1997 budget request and $24,505,000 below the fiscal year 1996 
appropriation. Funds for the Libraries account for 1997 for the 
Services, Construction and Interlibrary Cooperation programs 
are provided under current law pending enactment of 
reauthorizing legislation currently before this Congress. The 
1997 request for Libraries would support two primary activities 
in State and local libraries: (a) greater access and special 
services for those who have difficulty using libraries 
effectively, and (b) expanded public access to information 
through the use of technology.
    The Assistant Secretary for Education Research and 
Innovation in her testimony before the Subcommittee on the 
Departments of Labor, Health and Human Services and Education 
and Related Agencies indicated that ``The Department recognizes 
that the purposes of LSCA [Library Services and Construction 
Act], the goal of which was to ensure that all Americans have 
access to libraries and to library information resources, have 
largely been achieved.'' The Committee is concerned by any 
attempt to embark on a new program given the current, 
substantial fiscal constraints. It has, therefore, provided no 
funding for the library initiative proposed in the 
Administration's budget request.

Public library--services

    The bill provides $92,636,000 which is the same as the 
fiscal year 1996 amount and $92,636,000 above the budget 
request.

Public library--construction

    The bill provides no funding for library construction, the 
same as the budget request and $16,369,000 below the fiscal 
year 1996 amount. The Committee believes that construction of 
libraries is a local responsibility that cannot be funded in 
this time of fiscal constraint.

Public library--interlibrary cooperation

    The Committee recommends $11,864,000 for interlibrary 
cooperation which is $11,864,000 above the fiscal year 1997 
request and $6,136,000 below last year.

Library education and training

    The Committee recommends $2,500,000 for Library Education 
and Training which is the same as last year and $2,500,000 
above the budget request.

Library research and demonstrations

    The bill provides $1,000,000 for library research and 
demonstrations. This level is $2,000,000 below fiscal year 1996 
and $1,000,000 above the budget request.

                        Departmental Management

    The bill includes $401,466,000 for departmental management 
(salaries and expenses) at the Department of Education. This 
amount is $16,060,000 below the fiscal year 1996 appropriation 
and $44,510,000 less than the Administration's 1997 budget 
request. These activities are authorized by the Department of 
Education Organization Act, P.L. 96-88, and include costs 
associated with the management and operations of the Department 
as well as separate costs associated with the Office for Civil 
Rights and the Office of the Inspector General.

Program administration

    The bill includes $320,152,000 for program administration, 
an amount $6,534,000 below the fiscal year 1996 appropriation 
and a decrease of $35,324,000 from the 1997 budget request. 
These funds support the staff and other costs of administering 
programs and activities at the Department. Items include 
personnel compensation and health, retirement and other 
benefits as well as travel, rent, telephones, utilities, 
postage fees, data processing, printing, equipment, supplies, 
technology training, consultants and other contractual 
services. The Committee has reduced the base funding for this 
account by 2% below the fiscal year 1996 level.
    The Department is instructed to include, as a footnote 
within its audited financial statements, information on 
revenues, both to the Department and to the Federal government, 
resulting from the activities of the Department's Inspector 
General and specifically to identify measurable ``funds put to 
better use'' as additional budgetary resources.
    Each of the departments under the Committee's jurisdiction 
is statutorily required to have audited financial statements 
covering all the department's accounts and activities. Congress 
enacted this requirement in the Government Management Reform 
Act of 1994 after having observed the benefits of the pilot 
program of audited financial statements that had been required 
by the Chief Financial Officers (CFO) Act of 1990. An audited 
financial statement is like a ``scorecard'' that reflects a 
department's progress in achieving the significant financial 
management reforms required by the CFO Act, and in providing 
effective stewardship and management of government funds. 
Accordingly, the Committee expects the Department to work 
vigorously towards obtaining a clean opinion on its financial 
statements. The transfer and reprogramming authority the 
Committee has granted provides substantial flexibility to the 
Department and is particularly valuable during periods of 
increasing fiscal constraints. However, the Committee questions 
the extent to which agencies can properly exercise such 
authority and accurately account for affected funds if they 
have not made substantial progress towards achieving the CFO 
Act's financial management reforms. Accordingly, in subsequent 
years, the Committee will consider the Department's progress in 
making such reforms and in obtaining a clean opinion on its 
financial statements when scrutinizing requests for current 
appropriations and in deciding whether to continue, expand or 
limit transfer and reprogramming authority.
    The Committee applauds the Working Group on Comprehensive 
Early Childhood Family Centers, headed by the Department of 
Education, for completing its work and presenting its report to 
the Committee. The working group recommended that an 
interagency forum to coordinate programs for children and 
families within and across departments be established; that the 
Federal and State governments make greater efforts to 
rationalize and coordinate their multiple programs and funding 
streams; that greater emphasis on outcomes, rather than 
process, be used to evaluate program success; and that local 
programs be given greater flexibility to blend funds to meet 
local needs.
    The Committee continues to be concerned that the 
Departments of Labor, Health and Human Services, and Education 
have no institutionalized forum for ongoing interdepartmental 
collaboration, and that the absence of such a forum leads to 
fragmentation and duplication of efforts to improve the lives 
of children and families. The Committee again urges the 
Departments to institutionalize interdisciplinary collaboration 
at all levels, and requests a progress report on steps taken to 
accomplish such departmental collaboration and program 
coordination no later than March of 1997.

Office for Civil Rights

    The bill includes $54,171,000 for the salaries and expenses 
of the Office for Civil Rights, an amount $1,106,000 below the 
fiscal year 1996 appropriation and $5,829,000 below the budget 
request. Consistent with the policy carried out in many of the 
salary and expense accounts in the bill, the account has been 
reduced by 2% below last year's funding level. This Office is 
responsible for enforcing laws that prohibit discrimination on 
the basis of race, color, national origin, sex, handicap, and 
age in all programs and institutions that receive funds from 
the Department. These laws extend to 50 State educational 
agencies, 16,000 local educational agencies, 3,500 institutions 
of higher education, as well as to proprietary schools, State 
rehabilitation agencies, libraries, and other institutions 
receiving Federal funds. These institutions and agencies 
generated over 5,000 discrimination complaints in 1993, 
according to the Office for Civil Rights. In addressing these 
complaints, the Office's duties include monitoring and 
performing compliance reviews, investigating allegations, 
offering advice on corrective and remedial actions, and 
providing technical assistance to help recipients achieve 
voluntary compliance.

Office of the Inspector General

    The bill includes $27,143,000 for the Office of the 
Inspector General, an amount $1,420,000 below the fiscal year 
1996 appropriation and $3,357,000 less than the fiscal year 
1997 budget request. This Office has authority to inquire into 
all program and administrative activities of the Departments as 
well as into related activities of grant and contract 
recipients. It conducts audits and investigations to determine 
compliance with applicable laws and regulations, to check 
alleged fraud and abuse, efficiency of operations, and 
effectiveness of results.
    The Committee believes that all of the Inspectors General 
need to do a better job of accounting for and tracking the 
savings that they claim to generate by their efforts. More 
attention must be paid to how much money is actually collected 
each year and paid back to the Federal government. The 
Committee directs the Inspector General to report to the 
Committee each quarter on:
          (1) the actual payments, as a result of fines, 
        restitutions or forfeitures, made to the United States 
        Government as a result of his activities; and
          (2) how ``funds put to better use'' were used; this 
        report must identify funds made available for use by 
        management and the programs, projects, and activities 
        that were increased as a result of these funds.

                           General Provisions

    The bill includes provisions which continue the policy 
established in P.L. 104-134 of limiting the funds and uses of 
funds available under section 458 of the Higher Education Act 
for administrative activities related to the Federal Direct 
Student Loan (FDSL) program. The bill limits the availability 
of such funds to $420,000,000 in fiscal year 1997, a decrease 
of $175,000,000 below the amount permitted under the 
authorizing law. The bill requires that $134,000,000 of such 
funds be paid as administrative cost allowances owed to 
guaranty agencies in fiscal years 1996 and 1997. The bill 
prohibits the use of funds to pay administrative fees to 
institutions of higher education or for advertising activities 
relating to the FDSL program. Finally, the bill prohibits the 
Secretary from borrowing from future year appropriations and 
requires the Secretary to consult with Congress prior to 
requiring the return of guaranty agency reserves. Any guaranty 
agency reserves returned must be credited to the Treasury to 
reduce the deficit.
    The bill includes a provision prohibiting the use of funds 
to enforce the student loan program lender audit requirement in 
section 428(b)(1)(U)(iii) of the Higher Education Act with 
respect to lenders with total loan portfolios of less than 
$5,000,000.

                       TITLE IV--RELATED AGENCIES

                      Armed Forces Retirement Home

    The bill provides authority to expend $53,184,000 from the 
Armed Forces Retirement Home Trust Fund for operations and 
capital activities at the United States Soldiers' and Airmen's 
Home and the United States Naval Home, a decrease of $2,599,000 
below the comparable fiscal year 1996 appropriation and 
$3,020,000 below the budget request. Expenditures from the 
Armed Forces Retirement Home Trust Fund are not authorized for 
fiscal year 1997. The bill provides a 2% reduction in funding 
for operations of the Home consistent with the bill-wide policy 
regarding administrative activities. The bill adopts the 
request of $432,000 for capital activities.

Operations

    The bill provides authority to expend $52,752,000 from the 
Armed Forces Retirement Home Trust Fund for operations of the 
United States Soldiers' and Airmen's Home and the United States 
Naval Home, a reduction of $1,077,000 below the comparable 
fiscal year 1996 limitation and $3,020,000 below the budget 
request. This 2% reduction is consistent with the bill-wide 
policy regarding administrative activities.

Capital outlay

    The bill provides authority to expend $432,000 from the 
Armed Forces Retirement Home Trust Fund for capital activities 
at the Soldiers' and Airmen's Home and the United States Naval 
Home, the same as the budget request and a decrease of 
$1,522,000 below the comparable fiscal year 1996 limitation.

             Corporation for National and Community Service

                  DOMESTIC VOLUNTEER SERVICE PROGRAMS

    The bill provides $202,046,000 for the Domestic Volunteer 
Service Programs which are administered by the Corporation for 
National and Community Service. The recommended amount 
represents an increase of $3,929,000 above the comparable 
fiscal year 1996 appropriation and a decrease of $24,063,000 
below the budget request. Appropriations for these programs are 
not authorized by law for fiscal year 1997. Funding for the 
Americorps program which is also administered by the 
Corporation for National and Community Service is provided in 
the VA/HUD and Independent Agencies appropriations bill.

VISTA

    The bill provides $41,235,000 for the Volunteers in Service 
to America (VISTA) program, the same as the comparable fiscal 
year 1996 appropriation and $10,365,000 below the budget 
request. The VISTA program supports individuals who recruit 
volunteers and organize community volunteer activities but who 
do not provide direct volunteer services.

National Senior Volunteer Corps

    The bill provides a total of $132,841,000 for the National 
Senior Volunteer Corps, an increase of $4,500,000 over the 
comparable fiscal year 1996 appropriation and $11,923,000 below 
the budget request.
    The bill provides $65,889,000 for the Foster Grandparents 
program, an increase of $3,652,000 above the comparable fiscal 
year 1996 appropriation and $6,923,000 below the budget 
request. This program provides volunteer service opportunities 
for low-income people aged 60 and over.
    The bill provides $31,244,000 for the Senior Companion 
program, an increase of $89,000 over the comparable fiscal year 
1996 appropriation and $3,000,000 below the budget request. The 
program provides project grants to private, non-profit 
organizations and State and local public agencies to offer 
volunteer service opportunities to low-income individuals aged 
60 and over. These volunteers assist older adults with 
physical, mental or emotional impairments which put them at 
risk for institutionalization.
    The bill provides $35,708,000 for the Retired Senior 
Volunteer Program (RSVP), an increase of $759,000 over the 
comparable fiscal year 1996 appropriation and $2,000,000 below 
the budget request. This program provides part-time volunteer 
service opportunities for low-income individuals aged 60 and 
over to recruit volunteers and organize volunteer activities 
relating to a variety of social needs.

Program administration

    The bill provides $27,970,000 for program administration, a 
reduction of $571,000 below the comparable fiscal year 1996 
appropriation and $1,775,000 below the budget request. This 2% 
reduction in funding from the 1996 level is consistent with the 
bill-wide policy regarding administrative activities.

                  Corporation for Public Broadcasting

    The bill provides $250,000,000 in advance funding for 
fiscal year 1999 for the Corporation for Public Broadcasting 
(CPB), the same amount provided in the comparable fiscal year 
1998 appropriation and $25,000,000 below the budget request. 
Appropriations for the CPB are not authorized in law for fiscal 
year 1999.
    The Committee urges the CPB in allocating funding to 
consider the impact of that allocation on rural radio and TV 
stations, particularly those which are sole service providers, 
have minimal donor bases, and serve areas with limited cable 
alternatives.
    The Committee is encouraged by the improving relationship 
between CPB and minority program producers. The Committee 
directs the CPB President to be prepared to testify during the 
hearing on the fiscal year 2000 appropriation for CPB regarding 
steps CPB has taken during fiscal years 1996 and 1997 to 
strengthen and enhance African-American, Asian-American, and 
other minority programming and to support career development of 
African-American, Asian-American, and other minority media 
professionals.
    The Committee is pleased with the policy adopted by CPB to 
address the problem of signal overlap. However, the Committee 
is concerned about the potential effect of the policy on 
smaller stations located on the periphery of major urban 
markets and directs CPB to take appropriate steps to ensure 
that these stations are full partners with other stations in 
their markets in determining how the base grant is allocated.

               Federal Mediation and Conciliation Service

    The bill provides $32,579,000 for the Federal Mediation and 
Conciliation Service (FMCS), the same as the budget request and 
a decrease of $236,000 below the comparable fiscal year 1996 
appropriation. The Committee has not reduced the FMCS 
appropriation in accord with the bill-wide policy of 2% 
reductions for administrative activities because the FMCS has 
pro-actively implemented a strategic plan to improve long-term 
efficiency and reduce administrative overhead. The Committee 
has provided resources to automate the agency, implement a case 
tracking system, and provide adequate training to improve 
employee performance and productivity. The Committee 
anticipates requests for reduced funding in future years.
    The FMCS attempts to prevent and minimize labor-management 
disputes having a significant impact on interstate commerce or 
national defense, except in the railroad and airline 
industries. The agency convenes boards of inquiry appointed by 
the President in emergency disputes and conducts dispute 
mediation, preventive mediation, and arbitration. In addition, 
the Service offers alternative dispute resolution services and 
training to other Federal agencies to reduce litigation costs 
and speed federal administrative proceedings.
    The bill also includes provisions first enacted in the 
fiscal year 1996 appropriations Act granting the agency the 
authority to accept gifts and to charge fees for certain 
services.

            Federal Mine Safety and Health Review Commission

    The bill provides $6,060,000 for the Federal Mine Safety 
and Health Review Commission, a decrease of $124,000 or 2% 
below the comparable fiscal year 1996 appropriation in accord 
with the bill-wide policy regarding administrative activities 
and $272,000 below the budget request. The Commission is 
responsible for reviewing the enforcement activities of the 
Secretary of Labor under the Federal Mine Safety and Health Act 
and for protecting miners against unlawful discrimination. The 
Commission's administrative law judges hear and decide cases 
initiated by the Secretary of Labor, mine operators, or miners. 
The five-member Commission hears appeals from administrative 
law judge decisions, rules on petitions for discretionary 
review, and may direct, of its own initiative, review of cases 
that may present unusual questions of law.
    The Committee notes that the Commission did not report to 
Congress regarding its plans to increase productivity in case 
disposition and appellate review and to reduce personnel as 
directed in the fiscal year 1996 report. The Committee directs 
the Commission to report to Congress on this matter within 90 
days of enactment of this Act. This report should be submitted 
in the form of a strategic plan with specific performance 
objectives and time frames for accomplishing them.

        National Commission on Libraries and Information Science

    The bill provides $812,000 for the National Commission on 
Libraries and Information Science, a reduction of $17,000 below 
the comparable fiscal year 1996 appropriation and $85,000 below 
the budget request. This 2% reduction in funding below the 
fiscal year 1996 level is consistent with the bill-wide policy 
regarding administrative activities.
    The Commission is charged with advising the President and 
Congress on national policy in the library and information 
fields, developing overall plans for meeting national library 
and information needs, and coordinating activities at the 
Federal, State and local levels. The Committee reiterates its 
intention that the Commission continue to expand other sources 
of Federal and non-Federal revenues including grants and 
contracts.

                     National Council on Disability

    The bill provides $1,757,000 for the National Council on 
Disability (NCD), a reduction of $36,000 below the budget 
request and the comparable fiscal year 1996 appropriation 
consistent with the bill-wide policy of reducing funding for 
administrative activities by 2%.
    The Council makes recommendations to the President, the 
Congress, the Rehabilitation Services Administration, and the 
National Institute on Disability and Rehabilitation Research on 
public policy issues of concern to individuals with 
disabilities. The Council focuses on eliminating barriers that 
prevent persons with disabilities from actively participating 
in community and family life. The Council also monitors 
implementation of the Americans with Disabilities Act.
    The Committee continues to encourage NCD to augment its 
appropriation with other sources of Federal and non-Federal 
revenues including grants and contracts.

                     National Education Goals Panel

    The bill provides $974,000 for the National Education Goals 
Panel (NEGP), $1,811,000 below the budget request and a 
reduction of $20,000 or 2% below the comparable fiscal year 
1996 appropriation consistent with the bill wide policy 
regarding administrative activities.
    The NEGP was established in 1990 following the National 
Education Summit held in September 1989. The Panel is charged 
with reporting on National and State progress toward achieving 
the National education goals, working with states to develop 
high academic standards and assessments, identifying promising 
and effective practices at the local level, assisting states 
and communities with their progress reports, and building a 
bipartisan consensus for education improvement.

                     National Labor Relations Board

    The bill provides $144,692,000 for the National Labor 
Relations Board, a decrease of $25,574,000 or 15% below the 
fiscal year 1996 comparable appropriation and $36,442,000 below 
the budget request.
    The NLRB receives, investigates, and prosecutes unfair 
labor practice charges filed by businesses, labor unions, and 
individuals. It also schedules and conducts representation 
elections. The five-member Board considers cases in which 
administrative law judge decisions are appealed.
    The Committee is concerned about the potential impact on 
small employers of the NLRB proposed rule regarding the 
appropriateness of single location bargaining units. 
Accordingly, the bill contains a limitation prohibiting the use 
of funds to promulgate a final rule regarding the 
appropriateness of single location bargaining units in 
representation cases.
    The bill also includes a limitation on the use of funds for 
activities relating to disputes involving employers which do 
not have a substantial impact on interstate commerce and which 
are not covered by the jurisdictional thresholds established in 
the authorizing law as updated by inflation. The Committee 
believes that elimination of cases involving very small 
employers that do not have a substantial impact on interstate 
commerce will relieve the NLRB of a substantial caseload, 
thereby enabling it to improve efficiency, reduce costs, and 
adequately perform its responsibilities within the resources 
provided by the bill.

                        National Mediation Board

    The bill provides $7,656,000 for the National Mediation 
Board (NMB), a reduction of $644,000 below the budget request 
and $156,000 or 2% below the comparable fiscal year 1996 
appropriation consistent with the bill-wide policy regarding 
administrative activities.
    The NMB mediates disputes over wages, hours, and working 
conditions that arise between employees and those railroad and 
airline carriers subject to the Railway Labor Act. The Board 
also resolves representation disputes involving labor 
organizations that wish to represent railroad or airline 
employees.

            Occupational Safety and Health Review Commission

    The bill provides $7,753,000 for the Occupational Safety 
and Health Review Commission (OSHRC), the same as the budget 
request and $328,000 below the comparable fiscal year 1996 
appropriation. The Commission adjudicates contested citations 
issued by the Occupational Safety and Health Administration 
(OSHA) against employers for violations of safety and health 
standards. The Commission's administrative law judges settle 
and decide cases at the initial level of review. The agency's 
three appointed Commissioners also review cases, issue rulings 
on complicated issues, and may direct review of any decision by 
an administrative law judge.
    The Committee continues to be impressed with the 
Commission's implementation of its strategic plan and cost 
cutting initiatives and commends OSHRC for taking very 
difficult decisions to improve its long term efficiency and 
productivity.

                  Physician Payment Review Commission

    The bill provides authority to transfer $2,920,000 from the 
Federal Supplementary Medical Insurance Trust Fund to support 
the activities of the Physician Payment Review Commission 
(PPRC), the same as the comparable fiscal year 1996 limitation 
and $1,080,000 below the budget request. In view of the 
substantial reduction in funding provided for this agency in 
fiscal year 1996, the Committee has not reduced funding for 
PPRC in fiscal year 1997 consistent with the bill wide policy 
of 2% reductions for administrative activities.
    The Commission serves as an independent agency to advise 
Congress and the Secretary of Health and Human Services on 
matters relating to Medicare physician reimbursement and health 
system reform. The Commission is required by law to report to 
Congress each year on adjusting Medicare physician payment 
rates, setting standards for expenditure growth, and monitoring 
access under Medicare. In addition, the Commission considers 
policies related to access under the Medicaid program for 
underserved populations, controlling costs of employment-based 
health plans, physician training and licensure, medical 
malpractice reform, and ensuring quality care.

               Prospective Payment Assessment Commission

    The bill provides authority to transfer $3,263,000 from the 
Medicare trust funds to support the activities of the 
Prospective Payment Assessment Commission, the same as the 
comparable fiscal year 1996 appropriation and $639,000 below 
the budget request. In view of the substantial reduction in 
funding provided for this agency in fiscal year 1996, the 
Committee has not reduced funding for the Commission in fiscal 
year 1997 consistent with the bill wide policy of 2% reductions 
for administrative activities.
    The Commission advises the Congress and the Secretary of 
Health and Human Services on maintaining and updating Medicare 
payment policies for hospitals and other facility services. The 
Commission is also responsible for analysis of Medicaid 
hospital payments and issues related to health care reform. The 
Commission issues several reports required by Congress 
including recommendations on the annual update of Medicare 
hospital payments and a general report on the impact of the 
Medicare program on the American health care system.
    The Committee is concerned about the impact of changes in 
government reimbursement programs and in the private market 
place on critical access urban providers. The Committee directs 
ProPAC to prepare a plan on how it will study the impact of 
these changes on hospitals which are urban, have at least 250 
beds, and are government dependent, with at least 60% of their 
days reimbursed by a combination of Medicare and Medicaid; to 
provide a timetable on completion of the study; and to issue no 
later than December 1997 a separate technical report on the 
impact of government and market place changes on these 
essential urban hospitals.

                       Railroad Retirement Board

                         DUAL BENEFITS ACCOUNT

    The bill provides $223,000,000 for dual benefits, the same 
as the request and a reduction of $16,000,000 below the 
comparable fiscal year 1996 appropriation. These funds are used 
to pay dual benefits to those retirees receiving both railroad 
retirement and social security benefits. The bill includes a 
provision permitting a portion of these funds to be derived 
from income tax receipts on dual benefits as authorized by law. 
The Railroad Retirement Board estimates that approximately 
$9,000,000 may be derived in this manner, which is $8,000,000 
less than the fiscal year 1996 amount.

           FEDERAL PAYMENT TO THE RAILROAD RETIREMENT ACCOUNT

    The bill provides $300,000 for the interest earned on 
unnegotiated checks, the same as the comparable fiscal year 
1996 amount and the same as the budget request.

                      LIMITATION ON ADMINISTRATION

    The bill provides a consolidated limitation of $87,898,000 
on the expenditure of railroad retirement and railroad 
unemployment trust funds for administrative expenses of the 
Board, $2,660,000 below the budget request and $1,794,000 or 2% 
below the comparable fiscal year 1996 appropriation consistent 
with the bill-wide policy regarding administrative activities.
    The Railroad Retirement Board (RRB) administers 
comprehensive retirement-survivor and unemployment-sickness 
insurance benefit programs for the nation's railroad workers 
and their families. This account limits the amount of funds in 
the railroad retirement and railroad unemployment insurance 
trust funds which may be used by the RRB for administrative 
expenses.
    The Committee commends the RRB on the successful completion 
of the 5-year Special Management Improvement Program. To date, 
the RRB has attained all of its performance goals under this 
initiative on time and within the projected budget. The 
Committee recommends that the RRB continue this management 
process by extending its performance goals and measuring 
progress against those standards.

                  SPECIAL MANAGEMENT IMPROVEMENT FUND

    Fiscal year 1996 was the final year of the 5-year Special 
Management Improvement program. No funds are requested or 
appropriated for the program in fiscal year 1997. Congress 
provided $657,000 in comparable fiscal year 1996 funding for 
the initiative.

             LIMITATION ON THE OFFICE OF INSPECTOR GENERAL

    The bill provides authority to expend $5,268,000 from the 
railroad retirement and railroad unemployment insurance trust 
funds for the Office of Inspector General, $482,000 below the 
budget request and $388,000 below the comparable fiscal year 
1996 appropriation. This account provides funding for the 
Inspector General to conduct and supervise audits and 
investigations of programs and operations of the Board.
    The bill includes provisions prohibiting the transfer of 
funds from the Department of Health and Human Services to the 
Railroad Retirement Board (RRB) Inspector General and 
prohibiting the audit, investigation or review of the Medicare 
program by the RRB IG. The Committee believes that 
responsibility for maintaining the integrity of the Medicare 
trust funds rests with the Health Care Financing Administration 
and the HHS Inspector General. The Committee directs the 
Railroad Retirement Board Office of Inspector General to focus 
its activities on improving management of the RRB and 
safeguarding the Railroad Retirement trust funds.

                     Social Security Administration

                PAYMENTS TO SOCIAL SECURITY TRUST FUNDS

    The bill provides $20,923,000 for mandatory payments 
necessary to compensate the Social Security system for cash 
benefits paid out but for which no payroll tax is received. 
This amount is the same as the budget request and $1,718,000 
below the comparable fiscal year 1996 appropriation. These 
funds reimburse the Old Age and Survivors Insurance (OASI) and 
Disability Insurance (DI) Trust Funds for special payments to 
certain uninsured persons, costs incurred administering pension 
reform activities and interest lost on the value of benefit 
checks issued but not negotiated. This appropriation restores 
the trust funds to the position they would have been had they 
not borne these costs properly charged to the general funds.
    The amount provided includes $2,823,000 for the cost of 
special payments to a declining population of uninsured persons 
who were at least 72 years of age in 1968 and attained 
retirement age before they could accumulate sufficient wage 
credits to qualify for benefits under the normal retirement 
formulas. This account also includes $1,100,000 for 
reimbursements to the trust funds for administrative costs 
incurred in providing private pension plan information to 
individuals and $17,000,000 to reimburse the trust funds for 
the value of the interest for benefit checks issued but not 
negotiated.

                   ADDITIONAL ADMINISTRATIVE EXPENSES

    The bill provides $10,000,000 for mandatory administrative 
expenses related to the Coal Industry Retiree Health Benefit 
program which Social Security must administer under the law. 
This amount is the same as the budget request and the same as 
the comparable fiscal year 1996 appropriation. The Energy 
Policy Act of 1992 combined two existing United Mine Workers of 
America pension plans into a single fund and required that 
certain coal mine operators pay health benefit premiums for the 
new combined plan. Social Security assigned retired coal miners 
covered by the combined plan to coal operators and must now 
provide requested earnings records to mine operators and 
process appeals of assignments. The funding is available until 
expended.

               SPECIAL BENEFITS FOR DISABLED COAL MINERS

    The bill provides $460,070,000 for special benefits for 
disabled coal miners, the same as the budget request and 
$25,326,000 below the comparable fiscal year 1996 
appropriation. This amount does not include $160,000,000 in 
advance funding provided in this bill for the first quarter of 
fiscal year 1998 or $170,000,000 in advance funding for fiscal 
year 1997 which was provided in the fiscal year 1996 
appropriations Act.
    The appropriation provides cash benefits to miners who are 
disabled because of black lung disease and to widows and 
children of miners. The Social Security Administration was 
responsible for taking, processing, and paying claims for 
miners benefits filed from December 30, 1969 through June 30, 
1973. Since that time, SSA has continued to take claims but 
forwards most to the Department of Labor for adjudication and 
payment. The SSA will continue to pay benefits and maintain the 
beneficiary roll for the lifetime of all persons who filed 
during its jurisdiction. During fiscal year 1997, SSA expects 
to provide benefits to 127,000 miners, widows, and dependents 
who will receive a basic benefit rate of $448.60.

                  SUPPLEMENTAL SECURITY INCOME PROGRAM

    The bill provides $19,444,556,000 for the Supplemental 
Security Income (SSI) program, not including $9,260,000,000 in 
fiscal year 1997 funding provided in the fiscal year 1996 
appropriations Act and not including $9,690,000,000 in advance 
funding provided in the bill for the first quarter of fiscal 
year 1998. The appropriation represents an increase of 
$899,044,000 over the comparable fiscal year 1996 appropriation 
and $164,444,000 below the budget request.
    These funds are used to pay Federal cash benefits to 
approximately 6,505,000 aged, blind, and disabled persons with 
little or no income. The maximum monthly Federal benefit 
payable in fiscal year 1997 is expected to be $483 for an 
individual and $725 for an eligible couple. In addition to 
federal benefits, the SSA administers a program of 
supplementary State benefits for those States which choose to 
participate. The funds are also used to reimburse the trust 
funds for the administrative costs of the program.
    The SSI appropriation includes $100,000,000 for beneficiary 
services, a decrease of $76,400,000 below the comparable fiscal 
year 1996 appropriation and $79,000,000 below the budget 
request. Subsequent to issuing the fiscal year 1997 budget 
request, the President signed into law P.L. 104-121 which 
eliminates SSI payments to drug addicts and alcoholics who 
qualify for assistance primarily on the basis of their 
addiction beginning January 1, 1997. As a result, the 
President's budget requests funding for beneficiary services 
related to benefit payments which will terminate following the 
first quarter of the fiscal year. However, many individuals who 
will be removed from the SSI rolls are expected to reapply for 
benefits on the basis of other disabling conditions. Therefore, 
the Committee has included funds to continue providing services 
related to payments to drug addicts and alcoholics through the 
first quarter of the year and sufficient funding to process 
expected reapplication for benefits by individuals removed from 
the rolls pursuant to P.L. 104-121. Within the beneficiary 
services activity, the bill provides the budget request of 
$41,000,000 to reimburse State vocational rehabilitation 
services agencies for successful rehabilitation of SSI 
recipients.
    The bill also contains $7,000,000 for research and 
demonstration activities conducted under section 1110 of the 
Social Security Act, the same as the budget request and a 
decrease of $1,200,000 below the fiscal year 1996 
appropriation. The Commissioner testified during the fiscal 
year 1997 budget hearings that less than 1% of disability 
insurance claimants are rehabilitated through the state 
vocational rehabilitation agencies. Accordingly, the Committee 
intends that research and demonstration funds be used solely 
for demonstrations involving private organizations 
investigating the cost effectiveness to the trust funds of 
providing early intervention and rehabilitation for work-
related disability. The Committee is particularly interested in 
models of service which can demonstrate substantially better 
results for disabled individuals than the state rehabilitation 
system.
    The bill provides an additional $25,000,000 to process 
continuing disability reviews (CDRs) related to the SSI 
caseload as authorized by P.L. 104-121, an increase of 
$10,000,000 above the comparable fiscal year 1996 
appropriation.
    The bill does not provide funding for administrative 
activities related to welfare reform as proposed in the budget 
request. The Committee notes that the requested $250,000,000 
appropriation has never been authorized in law, and the 
Administration has not transmitted to Congress a proposal for 
such an authorization.

                 LIMITATION ON ADMINISTRATIVE EXPENSES

    The bill provides a limitation on administrative expenses 
for the Social Security Administration (SSA) of $6,172,311,000 
to be funded from the Social Security trust funds, an increase 
of $367,376,000 over the comparable fiscal year 1996 
appropriation and $99,843,000 below the budget request. The 
Committee notes that the request includes an additional 
$250,000,000 for administrative activities related to welfare 
reform which are not authorized in law and for which the 
Administration has not submitted an authorization proposal. In 
addition, the request includes funding of $100,000,000 for 
continuing disability reviews (CDRs) in excess of the amount 
authorized to be appropriated in current law.
    The amount provided in the bill is sufficient to enable the 
Agency to fully meet defined performance targets for the 
improvement of service in 14 specific areas as submitted to the 
Committee during the fiscal year 1997 budget hearings. This 
large increase in funding will support continuing initiatives 
to streamline the disability determination process and fully 
automate agency administrative functions.
    The Committee has provided these increases in funding 
despite its grave concern that the Agency failed to meet 11 of 
12 performance goals for fiscal year 1995 and testified during 
the fiscal year 1997 budget hearings that it will likely fail 
to meet its performance goals for fiscal year 1996. The 
Committee remains concerned that the recent multi-billion 
investment in the automation and reengineering processes has 
not been adequately linked to direct improvements in service, 
productivity and efficiency and has not resulted in attainment 
of modest performance goals. The Committee will continue to 
monitor the Agency's progress in meeting these goals, and 
future funding will be conditioned on the Agency's ability to 
produce measurable improvements in service and productivity.
    The bill provides not less than $1,500,000 within the 
limitation on administration shall be available for the Social 
Security Advisory Board.

Disability initiative

    Funding previously provided separately for the disability 
reengineering initiative is requested and provided within the 
regular limitation on administration for fiscal year 1997.

Automation initiative

    The bill provides $250,073,000 for the fourth year of the 
5-year automation initiative, an increase of $83,073,000 over 
the comparable fiscal year 1996 appropriation and $49,927,000 
below the budget request. This initiative is designed to fully 
automate the Social Security Administration within five years 
and to supply all agency personnel with ergonomically 
appropriate furniture according to a consent decree. The 
Committee reiterates its concern that the Congress's previous 
$475,000,000 investment in automation activities has not 
produced expected improvements in service and productivity. The 
Committee continues to provide substantial resources for this 
initiative with the expectation that the Agency will fully 
attain the 1997 performance goals reported during the fiscal 
year 1997 budget hearings.

Continuing disability reviews

    The bill provides an additional $160,000,000 for continuing 
disability reviews (CDRs) above the base amount of $200,000,000 
provided in the regular limitation on administration. This 
amount represents an increase of $100,000,000 over the fiscal 
year 1996 appropriation and $100,000,000 below the budget 
request. The amount provided is the full amount authorized by 
law, and the Committee notes that the budget request, which was 
submitted prior to enactment of P.L. 104-121, exceeds 
authorized funding for CDRs by $100,000,000. The Committee has 
provided this funding with the expectation that processing of 
additional CDRs will reduce trust fund liabilities far in 
excess of the cost of such processing.

Welfare reform

    The bill does not provide funding for the requested 
$250,000,000 administrative initiative related to welfare 
reform. The request for appropriations is not authorized in 
law, nor has the Administration proposed legislation which 
would authorize such appropriations. Accordingly, the bill does 
not include the proposed funding.

Software development

    In the past, the Committee has expressed concerns about the 
Agency's long-term operational and service delivery systems and 
has urged SSA to work with an industry-based consortium with 
experience institutionalizing software processes and methods 
and dedicated to improving software productivity. The Committee 
is pleased to note that SSA is focusing on those concerns and 
urges that work proceed as expeditiously as possible.

Chronic Fatigue Syndrome

    The Committee remains concerned about reports that SSA 
disability determination personnel lack appropriate knowledge 
of diagnosis and impact on functional ability of Chronic 
Fatigue Syndrome (CFS). The Committee directs the SSA to 
provide a summary of its internal CFS-related education 
activities conducted during the past fiscal year to the Chronic 
Fatigue Syndrome Interagency Coordinating Committee. The 
Committee further encourages SSA to investigate obstacles faced 
by individuals with CFS who apply for disability benefits and 
to maintain updated medical information throughout all levels 
of the application process.

                      OFFICE OF INSPECTOR GENERAL

    The bill provides $4,801,000 for the Office of the 
Inspector General, the same as the comparable fiscal year 1996 
appropriation and $1,534,000 below the budget request. The bill 
also provides authority to expend $21,014,000 from the Social 
Security trust funds for activities conducted by the Inspector 
General, the same as the comparable fiscal year 1996 limitation 
and $75,000 below the request. Because this office was created 
in 1995 and was not fully operational until 1996, the Committee 
has not reduced funding for this account in accord with its 
bill-wide policy regarding administrative activities.

                    United States Institute of Peace

    The bill provides $11,160,000 for the United States 
Institute of Peace, the same as the budget request and $321,000 
below the comparable fiscal year 1996 appropriation. The 
Institute was created in 1984 to provide education and 
training, basic and applied research, and information services 
to promote conflict resolution.

              House of Representatives Report Requirements

    The following items are included in accordance with various 
requirements of the Rules of the House of Representatives:

                     INFLATIONARY IMPACT STATEMENT

    Pursuant to clause 2(l)(4), rule XI of the House of 
Representatives, the Committee estimates that enactment of this 
bill would have no overall inflationary impact on prices and 
costs in the operation of the national economy.

                   COMPARISON WITH BUDGET RESOLUTION

    Section 308(a)(1)(A) of the Congressional Budget and 
Impoundment Control Act of 1974 (Public Law 93-344), as 
amended, requires that the report accompanying a bill providing 
new budget authority contain a statement detailing how the 
authority compares with the report submitted under section 602 
of the Act for the most recently agreed to concurrent 
resolution on the budget for the fiscal year. This information 
follows:

----------------------------------------------------------------------------------------------------------------
                                                                     Sec. 602(b)                This bill       
                                                             ---------------------------------------------------
                                                                 Budget                    Budget               
                                                               authority     Outlays     authority     Outlays  
----------------------------------------------------------------------------------------------------------------
Discretionary:                                                                                                  
    General purposes........................................       65,600       69,442       65,625       69,525
    Violent Crime Trust Fund................................           61           38           61           38
Mandatory...................................................      222,270      222,355      222,328      222,340
----------------------------------------------------------------------------------------------------------------

    Note.--The amounts in this bill are technically in excess 
of the subcommittee section 602(b) subdivision. However, 
pursuant to Public Law 104-121, the Contract with America 
Advancement Act of 1996, increases to the Committee section 
602(a) allocation, based on additional funding for Social 
Security Continuing Disability Reviews in reported bills, are 
authorized. This bill includes additional funding for such 
reviews. After the bill is reported to the House, the Chairman 
of the Committee on the Budget will provide an increased 
section 602(a) allocation consistent with the increased funding 
for continuing disability reviews in the bill. That new 
allocation will eliminate the technical difference prior to 
floor consideration.
    The bill provides no new spending authority as described in 
section 401(c)(2) of the Congressional Budget and Impoundment 
Control Act of 1974 (Public Law 93-344), as amended.
    In accordance with section 308(a)(1)(C) of the 
Congressional Budget Act of 1974 (Public Law 93-344), as 
amended, the following information was provided to the 
Committee by the Congressional Budget Office:

                         Five-Year Projections

    In compliance with section 308(a)(1)(C) of the 
Congressional Budget Act of 1974 (Public Law 93-344), as 
amended, the following table contains five-year projections 
associated with the budget authority provided in the 
accompanying bill:

                                                (In millions of dollars)
Budget authority in the bill..................................   234,073

Outlays:
    1997......................................................   206,951
    1998......................................................    33,429
    1999......................................................     6,974
    2000......................................................       854
    2001......................................................        82

          Financial Assistance to State and Local Governments

    In accordance with section 308(a)(1)(D) of the 
Congressional Budget Act of 1974 (Public Law 93-344), as 
amended, the financial assistance to State and local 
governments is as follows:

                                                (In millions of dollars)
Budget authority..............................................   125,499
Fiscal year 1997 outlays resulting therefrom..................   105,369

                           Transfer of Funds

    Pursuant to clause 1(b), rule X of the House of 
Representatives, the following table is submitted describing 
the transfers of funds provided in the accompanying bill.
    The table shows, by Department and agency, the 
appropriations affected by such transfers.

                                 APPROPRIATION TRANSFERS RECOMMENDED IN THE BILL                                
----------------------------------------------------------------------------------------------------------------
                                                                Account from which transfer is                  
   Account to which transfer is to be made         Amount                 to be made                 Amount     
----------------------------------------------------------------------------------------------------------------
Department of Health and Human Services:                        Department of Labor:                            
 Administration on Aging:                                        Employment and Training                        
                                                                 Administration:                                
    Aging Services Programs.................      $373,000,000     Community Service                            
                                                                    Employment for Older                        
                                                                    Americans.................      $373,000,000
Employment Standards Administration:                            U.S. Postal Service:                            
    Special Benefits........................             (\1\)      Postal Service fund.......             (\1\)
Department of Labor: Employment Standards                                                                       
 Administration:                                                                                                
    Salaries and expenses...................        26,071,000  Black lung disability trust           26,071,000
                                                                 fund.                                          
Departmental management:                                                                                        
    Salaries and expenses...................        19,621,000  Black lung disability trust           19,621,000
                                                                 fund.                                          
    Office of Inspector General.............           287,000  Black lung disability trust             287,000 
                                                                 fund.                                          
----------------------------------------------------------------------------------------------------------------
 \1\ Indefinite.                                                                                                

            Compliance With Rule XIII, Cl. 3 (Ramseyer Rule)

    In compliance with clause 3 of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

     SECTION 6408 OF THE OMNIBUS BUDGET RECONCILIATION ACT OF 1989

SEC. 6408. OTHER MEDICAID PROVISIONS.

    (a) Institutions for Mental Diseases.--
          (1) * * *
          * * * * * * *
          (3) Moratorium on treatment of certain facilities.--
        Any determination by the Secretary that Kent Community 
        Hospital Complex in Michigan or Saginaw Community 
        Hospital in Michigan is an institution for mental 
        diseases, for purposes of title XIX of the Social 
        Security Act shall not take effect until [December 31, 
        1995] December 31, 2000, or the first day of the first 
        quarter on which the Medigrant plan for the State of 
        Michigan is effective under title XIX of such Act.
          * * * * * * *

              SECTION 320 OF THE PUBLIC HEALTH SERVICE ACT

                        HANSEN'S DISEASE PROGRAM

    [Sec. 320. (a) The Secretary--
          [(1) shall provide care and treatment (including 
        outpatient care) without charge at the Gillis W. Long 
        Hansen's Disease Center in Carville, Louisiana, to any 
        person suffering from Hansen's disease who needs and 
        requests care and treatment for that disease; and
          [(2) may provide for the care and treatment 
        (including outpatient care) of Hansen's disease without 
        charge for any person who requests such care and 
        treatment.
    [(b) The Secretary shall make payments to the Board of 
Health of Hawaii for the care and treatment (including 
outpatient care) in its facilities of persons suffering from 
Hansen's disease at a rate, determined from time to time by the 
Secretary, which shall, subject to the availability of 
appropriations, be approximately equal to the operating cost 
per patient of those facilities, except that the rate 
determined by the Secretary shall not be greater than the 
comparable operating cost per Hansen's disease patient at the 
Gillis W. Long Hansen's Disease Center in Carville, Louisiana.]
    Sec. 320. (a)(1) At the Gillis W. Long Hansen's Disease 
Center (located in the State of Louisiana), the Secretary shall 
without charge provide short-term care and treatment, including 
outpatient care, for Hansen's disease and related complications 
to any person determined by the Secretary to be in need of such 
care and treatment.
    (2) The Center referred to in paragraph (1) shall conduct 
training in the diagnosis and management of Hansen's disease 
and conduct and promote the coordination of research, 
investigations, demonstrations, and studies relating to the 
causes, diagnosis, treatment, control, and prevention of 
Hansen's disease and the complications of such disease.
    (3) Paragraph (1) is subject to section 213 of the 
Department of Health and Humans Services Appropriations Act, 
1997.
    (b) In addition to the Center referred to in subsection 
(a), the Secretary may establish sites regarding persons with 
Hansen's disease. Each such site shall provide for the 
outpatient care and treatment for Hansen's disease to any 
person determined by the Secretary to be in need of such care 
and treatment.
    (c) The Secretary shall make payments to the Board of 
Health of the State of Hawaii for the care and treatment 
(including outpatient care) in its facilities of persons 
suffering from Hansen's disease at a rate determined by the 
Secretary. The rate shall be approximately equal to the 
operating cost per patient of such facilities, except that the 
rate may not exceed the comparable costs per patient with 
Hansen's disease for care and treatment provided by the Center 
referred to in subsection (a). Payments under this subsection 
are subject to the availability of appropriations for such 
purposes.

                 Changes in Application of Existing Law

    Pursuant to clause 3, rule XXI of the House of 
Representatives, the following statements are submitted 
describing the effect of provisions in the accompanying bill 
which may directly or indirectly change the application of 
existing law.
    In some instances the bill includes appropriations for 
certain ongoing programs which are not yet authorized for 
fiscal year 1997.
    The bill provides that appropriations shall remain 
available for more than one year for some programs for which 
the basic authorizing legislation does not presently authorize 
such extended availability.
    In various places in the bill, the Committee has earmarked 
funds within appropriation accounts in order to fund specific 
sections of a law. Whether these actions constitute a change in 
the application of existing law is subject to individual 
interpretation, but the Committee felt that this fact should be 
mentioned.
    On page 3-4 of the bill is language waiving certain 
provisions of sections 314 and 315 of the Job Training 
Partnership Act; language permitting local service delivery 
areas to transfer funds between certain titles of the Job 
Training Partnership Act, with approval of the Governor; and 
language providing that proceeds from the sale of Job Corps 
center facilities shall be retained by the Secretary of Labor 
to carry out the Job Corps program.
    On page 6 is language allowing the use of funds for 
amortization payments to States which had independent 
retirement plans in their State employment service agencies 
prior to 1980 and language allowing the use of funds for 
contracts with non-State entities for occupational and test 
research activities which benefit the Employment Service 
system.
    On page 7 of the bill is language allowing the Labor 
Department to withhold from State allotments funds available 
for penalty mail under the Wagner-Peyser Act.
    On page 7 is language providing that funds in this Act for 
one-stop career centers may be used for contracts, grants or 
agreements with non-State entities.
    On page 7 is language providing that funds in this Act may 
be used by the States for integrated Employment Service and 
Unemployment Insurance automation efforts.
    On page 10 is language authorizing the Secretary of Labor 
to accept and spend all sums of money ordered to be paid to the 
Secretary, in accordance with the terms of a Consent Judgment 
in U.S. District Court for the Northern Mariana Islands.
    On page 10 is language authorizing the Secretary of Labor 
to collect user fees for processing certain applications and 
issuing certain certificates and registrations under the Fair 
Labor Standards Act and the Migrant and Seasonal Agricultural 
Worker Protection Act.
    On page 11 of the bill is language providing funds may be 
used under the Federal Employees' Compensation Act in which the 
Secretary of Labor may reimburse an employer, who is not the 
employer at the time of injury, for portions of the salary of a 
reemployed, disabled beneficiary.
    On page 11 is language allowing the Secretary of Labor to 
transfer certain administrative funds from the Postal Service 
fund and certain other government corporations and agencies 
related to the administration of the Federal Employees' 
Compensation Act.
    On page 12 of the bill is language allowing the Secretary 
of Labor to require any person filing a claim for benefits 
under the Federal Employees' Compensation Act or the Longshore 
and Harbor Workers' Compensation Act to provide such 
identifying information as the Secretary may require, including 
a Social Security number.
    On page 13-14 is language establishing a maximum amount 
available for grants to States under the Occupational Safety 
and Health Act, which grants shall be no less than 50 percent 
of the costs of State programs required to be incurred under 
plans approved by the Secretary under section 18 of the Act.
    On page 14, is language authorizing the Occupational Safety 
and Health Administration to retain and spend up to $750,000 of 
training institute course tuition fees for training and 
education grants.
    On page 16 is language allowing the Mine Safety and Health 
Administration to purchase and bestow certificates and trophies 
in connection with mine rescue and first-aid work; to accept 
lands, buildings, equipment, and other contributions from 
public and private sources; to prosecute projects in 
cooperation with other agencies, Federal, State, or private; 
and to promote health and safety education and training in the 
mining community through cooperative programs with States, 
industry, and safety associations.
    On page 16 of the bill is language allowing the Secretary 
of Labor to use any funds available to the Department to 
provide for the costs of mine rescue and survival operations in 
the event of major disasters.
    On page 20 is language stating that section 427(c) of the 
Job Training Partnership Act may be waived if a Job Corps 
center fails to meet the national performance standards.
    On page 20 is language providing that no funds may be 
disbursed by the Labor Department without the approval of the 
Department's Chief Financial Officer or his delegatee.
    On page 20 is language modifying the enforcement of the 
child labor provisions of the Fair Labor Standards Act with 
respect to the loading of paper balers by employees who are 16 
and 17 years of age.
    On page 22 is language that prohibits the Wage and Hour 
Division from enforcing current rules concerning driving of 
vehicles on the job by persons under 18, unless the Secretary 
finds that driving is the person's primary duty.
    On page 23 is language providing that the Division of 
Federal Occupational Health may utilize personal services 
contracting in certain instances.
    On page 23 is language providing that in addition to fees 
authorized by section 427(b) of the Health Care Quality 
Improvement Act of 1986, fees shall be collected for the full 
disclosure of information under the Act sufficient to recover 
the full costs of operating the National Practitioner Data 
Bank, and shall remain available until expended to carry out 
that Act.
    On page 23 is language providing that all pregnancy 
counseling under the family planning program shall be 
nondirective.
    On page 24 is language providing that funds for State AIDS 
Drug Assistance Programs shall be distributed to States as 
authorized by section 2618(b)(2) of the Public Health Service 
Act.
    On page 25 is language permitting the Centers for Disease 
Control and Prevention to insure official motor vehicles in 
foreign countries.
    On page 26 is language providing that collections from user 
fees may be credited to the Centers for Disease Control and 
Prevention appropriation.
    On page 26 is language making amounts under section 241 of 
the Public Health Service Act available to carry out the 
National Center for Health Statistics surveys.
    On page 30 is language providing that the National Library 
of Medicine may enter into certain personal services contracts.
    On page 31 is language providing that the National 
Institutes of Health is authorized to collect third party 
payments for the cost of the clinical services that are 
incurred in NIH research facilities and that such payments 
shall be credited to the NIH Management Fund and shall remain 
available for one fiscal year after they are deposited.
    On pages 31-32 is language providing that a single contract 
or related contracts for the development and construction of 
the NIH clinical research center may be employed which 
collectively include the full scope of the project and that the 
solicitation and contract shall contain the clause 
``availability of funds'' found at 48 CFR 52.232-18.
    On page 33 of the bill, language is included to permit the 
Agency for Health Care Policy and Research to retain and expend 
amounts received from Freedom of Information Act fees, 
reimbursable and interagency agreements and the sale of data 
tapes.
    On page 34 of the bill is a provision that in the 
administration of title XIX of the Social Security Act, 
payments to a state for any quarter may be made with respect to 
a State plan or plan amendment in effect during any such 
quarter, if submitted in, or prior to, such quarter and 
approved in that or any such subsequent quarter.
    On page 34 of the bill is a provision that all funds 
collected in accordance with section 353 of the Public Health 
Service Act, together with such sums as may be collected from 
authorized user fees and the sale of data, shall be available 
for expenditure by the Health Care Financing Administration.
    On page 35 is language allowing fees charged in accordance 
with 31 U.S.C. 9701 to be credited to the Health Care Financing 
Administration administrative account.
    On page 36 is language providing that funds appropriated 
pursuant to section 414(a) of the Immigration and Nationality 
Act for fiscal year 1995 shall be available for the costs of 
assistance provided and other activities conducted in such year 
and in fiscal years 1996 and 1997.
    On page 37 is language providing that notwithstanding 
section 2003(c) of the Social Security Act, the amount 
specified for allocation under such section for fiscal year 
1997 shall be $2,480,000,000.
    On page 38 is language providing that unexpended Community 
Services Block Grant funds may be carried over to the next 
fiscal year by local grantees.
    On page 39 is language providing that funds appropriated 
under title XVII of the Public Health Service Act shall be used 
for extramural construction.
    The bill includes language providing that the Inspectors 
General of the Departments of Health and Human Services and 
Education may utilize funds received from the forfeiture of 
property in investigations in which their Offices participated, 
and which are transferred to them by the Department of Justice, 
the Department of the Treasury, or the United States Postal 
Service.
    The bill includes language providing that funds may be used 
by the Department of Education to obtain certain data from the 
Census Bureau.
    The bill includes language providing a hold-harmless for 
State allocations under certain Department of Education 
programs.
    The bill includes language providing that immigrant 
education funds may be allocated by States for competitive 
grants to local school districts and language providing that 
bilingual education funds should only be used to support 
instructional programs which ensure that students master 
English in a timely fashion.
    The bill includes language providing that the National 
Technical Institute for the Deaf and Gallaudet University may 
use funds for their endowment programs at their discretion.
    The bill includes language providing that no State shall be 
required to operate a State Council under section 112(f) of the 
Carl D. Perkins Vocational and Applied Technology Education 
Act.
    The bill includes language providing that the maximum Pell 
grant a student may receive in the 1997-98 academic year shall 
be $2,500.
    The bill includes language providing that notwithstanding 
section 401(g) of the Higher Education Act of 1965, if the 
Secretary determines, prior to publication of the payment 
schedule for award year 1997-1998, that the funds included 
within this appropriation for Pell Grant awards for award year 
1997-1998, and any funds available from the FY 1996 
appropriation for Pell Grant awards, are insufficient to 
satisfy fully all such awards for which students are eligible, 
as calculated under section 401(b) of the Act, the amount paid 
for each such award shall be reduced by either a fixed or 
variable percentage, or by a fixed dollar amount, as determined 
in accordance with a schedule of reductions established by the 
Secretary for this purpose.
    The bill includes language providing that funds provided 
herein for carrying out title III shall be available without 
regard to section 360(a)(1)(B)(ii) of the Higher Education Act 
of 1965.
    The bill includes language providing that funds available 
for part D of title IX of the Higher Education Act shall be 
available to fund noncompeting continuation awards for academic 
year 1997-1998 for fellowships awarded originally under parts B 
and C of title IX of said Act, under the terms and conditions 
of parts B and C, respectively.
    The bill includes language providing that Howard University 
may at its discretion use funds for the endowment program as 
authorized by the Howard University Endowment Act.
    The bill includes language specifying that any unobligated 
balances remaining from fixed fees previously paid into the 
college housing loans account pursuant to 12 U.S.C. 1749d, 
relating to payment of costs for inspections and site visits, 
shall be available for the operating expenses of that account.
    Section 304 of the bill limits administrative costs for the 
direct student loan program to $420 million in FY 1997. The 
section requires the Department of Education to use at least 
$114 million for payment of administrative cost allowances to 
guaranty agencies. It also prohibits the Secretary of Education 
from using funds available for subsequent years during FY 1997.
    The bill includes language specifying that notwithstanding 
31 U.S.C. 3302, fees charged by the Federal Mediation and 
Conciliation Service, up to full-cost recovery, for special 
training activities and for arbitration services shall be 
credited to and merged with its administrative account, and 
shall remain available until expended; that fees for 
arbitration services shall be available only for education, 
training, and professional development of the agency workforce; 
and that the Director of the Service is authorized to accept on 
behalf of the United States gifts of services and real, 
personal, or other property in the aid of any projects or 
functions within the Director's jurisdiction.
    The bill includes a provision requiring that appropriations 
to the NLRB shall not be available to organize or assist in 
organizing agricultural laborers or used in connection with 
investigations, hearings, directives, or orders concerning 
bargaining units composed of agricultural laborers as referred 
to in section 2(3) of the Act of July 5, 1935 (29 U.S.C. 152), 
and as amended by the Labor-Management Relations Act, 1947, as 
amended, and as defined in section 3(f) of the Act of June 25, 
1938 (29 U.S.C. 203), and including in said definition 
employees engaged in the maintenance and operation of ditches, 
canals, reservoirs, and waterways, when maintained or operated 
on a mutual non-profit basis and at least 95 per centum of the 
water stored or supplied thereby is used for farming purposes.
    The bill includes language providing that reimbursement for 
the carrying out of sections 9704 and 9706 of the Internal 
Revenue Code of 1986 to the Social Security Trust Fund shall be 
made, with interest, by September 30, 1998.
    The bill includes language providing that the total amount 
provided for railroad retirement dual benefits shall be 
credited to the Dual Benefits Payments Account in 12 
approximately equal amounts on the first day of each month in 
the fiscal year.
    The bill includes language providing that the Railroad 
Retirement Board shall determine the allocation of its 
administrative budget between the railroad retirement accounts 
and the railroad unemployment insurance administration fund.
    Sections 201, 202, 206, 207, 210, 301, 302, and 501, 502, 
504, 505, 506, 507, 509 and 512 of the bill are general 
provisions, most of which have been carried in previous 
appropriations acts, which place limitations on the use of 
funds in the bill or authorize certain activities, and which 
might, under some circumstances, be construed as changing the 
application of existing law.
    Section 212 is a general provision extending a moratorium 
in current law with respect to certain hospitals in the State 
of Michigan.
    Section 213 is a general provision that enables the 
transfer of the Gillis W. Long Hansen's Disease Center to the 
State of Louisiana to be used for health and education purposes 
consistent with the mission of the Department of Health and 
Human Services.
    Section 214 is a general provision that requires the 
Secretary of Health and Human Services to submit a report 
within 180 days documenting the impact of the family planning 
program in several categories and the extent to which it has 
reduced expenditures on Medicaid and welfare programs and 
clarifies the fees required to be paid by individuals according 
to their income.

Definition of program, project and activity

    During fiscal year 1997 for purposes of the Balanced Budget 
and Emergency Deficit Control Act of 1985 (Public Law 99-177), 
as amended, the following information provides the definition 
of the term ``program, project, and activity'' for departments 
and agencies under the jurisdiction of the Labor, Health and 
Human Services, and Education and Related Agencies 
Subcommittee. The term ``program, project, and activity'' shall 
include the most specific level of budget items identified in 
the Departments of Labor, Health and Human Services, and 
Education, and Related Agencies Appropriations Act, 1997, the 
accompanying House and Senate Committee reports, the conference 
report and accompanying joint explanatory statement of the 
managers of the committee of conference.

                  Appropriations Not Authorized by Law

    The Committee increasingly is concerned by the growing list 
of unauthorized programs within the jurisdiction of the 
Subcommittee on Labor, Health and Human Services and Education 
and Related Agencies. Presently, eighteen months into the 104th 
Congress, there are 96 programs within the Subcommittee's 
jurisdiction unauthorized. Total funding for these programs was 
$11,285,189,000 in fiscal year 1996. Failure to have these 
programs reauthorized is, of course, inconsistent with the 
intent of House rules. It also creates difficulties as 
Committees of jurisdiction come to the Appropriations Committee 
requesting current level funding or increases for bills that 
are only in the earliest stages of the legislative process. 
Passage of these major bills late in the session will create 
even greater difficulty as the Committee must reformat bills in 
conference. The Committee reiterates its longstanding position 
that it cannot continue to fund increasingly large portions of 
its bill that remain unauthorized.
    Pursuant to clause 3 of rule XXI of the House of 
Representatives, the following table lists the appropriations 
in the accompanying bill which are not authorized by law:

                      TITLE I--DEPARTMENT OF LABOR

            community service employment for older americans

           TITLE II--DEPARTMENT OF HEALTH AND HUMAN SERVICES

                         public health service

Health Resources and Services Administration
        Community Health Centers
        Migrant Health Centers
        Health Care for the Homeless
        Health Care for Residents of Public Housing
        Health Professions
                Grants to Communities--H.P. Scholarships
                Nursing Loan Repayment
                Health Professions Data Systems
                Center of Excellence
                Health Careers Opportunity Program
                Exceptional Financial Need Scholarships
                Loan Repayment/Fellowship-Faculty
                Financial Assistance for Disadvantaged H.P. 
                Students
                Scholarships for Disadvantaged Students
                Family Medicine Programs
                General Internal Medicine and Pediatrics
                Physician Assistant Training
                Public Health/Preventive Medicine
                Health Administration Programs
                Area Health Education Centers
                Border Health
                General Dentistry Training
                Allied Health Special Projects
                Geriatric Programs
                Rural Health Interdisciplinary Training
                Podiatric Medicine/Training
                Chioropractic Demonstration Project
                Advanced Nurse Education
                Nurse Practitioner/Midwives
                Nursing Special Projects
                Nurse Disadvantaged Assistance
                Professional Nurse Traineeships
                Nurse Anesthetist Training
        Organ Transplantation
        Health Teaching Facilities Interest Subsidies
        Bone Marrow Donor Registry program
        Alzheimer's Demonstration Grants
        Family Planning
        Health Education Assistance Loan (HEAL) Loan Limitation
        Vaccine Injury Compensation Program--HRSA Admin. (Trust
          Fund)
Centers for Disease Control and Prevention
        Childhood Immunization
        Sexually Transmitted Diseases
          Preventable Infertility
Substance Abuse and Mental Health Services Administration
        Mental Health: Knowledge, Development and Application
        Mental Health Performance Partnership
        Children's Mental Health
        Protection and Advocacy
        Substance Abuse Treatment: Knowledge, Development and
          Application
        Substance Abuse Performance Partnership
        Substance Abuse Prevention: Knowledge, Development and
          Application
Agency for Health Care Policy and Research

                administration for children and families

Child Care and Development Block Grant
Runaway and Homeless Youth Program
Runaway--Transitional Living Program
Child Abuse State Grants
Child Abuse Discretionary Activities
Abandoned Infants Assistance
Adoption Opportunities
Developmental Disabilities State Grants
Developmental Disabilities Protection and Advocacy
Developmental Disabilities University Affiliated Programs
Native American Programs

                        administration on aging

Grants to States
        Supportive Services and Centers
        Nutrition
                Congregate Meals
                Home-delivered Meals
Frail Elderly In-Home Services
Grants to Indians
Program Administration

                        office of the secretary

Adolescent Family Life
Office of Minority Health

                   TITLE III--DEPARTMENT OF EDUCATION

                           special education

State Grants
        Grants to States
        Preschool Grants
        Grants for Infants and Families
Special Purpose Funds
        Deaf-blindness
        Serious Emotional Disturbance
        Severe Disabilities
        Early Childhood Education
        Secondary and Transitional Services
        Postsecondary Education
        Innovation and Development
        Media and Captioning Services
        Technology Applications
        Special Studies
        Personnel Development
        Parent Training
        Clearinghouses
        Regional Resource Centers

                     vocational and adult education

Vocational Education
        Basic State Grants
        Tech-Prep Education
        Tribally Controlled Postsecondary Vocational 
        Institutions
        Adult Education
        State Programs
        National Institute for Literacy

                               libraries

Public Libraries
        Services
        Interlibrary Cooperation

                       TITLE IV--RELATED AGENCIES

Armed Forces Retirement Home
Corporation for National and Community Service
Corporation for Public Broadcasting
                          Full Committee Votes

    Pursuant to the provisions of clause 2(l)(2)(b) of rule XI 
of the House of Representatives, the results of each roll call 
vote on an amendment or on the motion to report, together with 
the names of those voting for and those voting against, are 
printed below:

                             rollcall no. 1

    Date: June 20, 1996.
    Measure: Fiscal Year 1997 Labor, Health and Human Services, 
Education Appropriations Bill.
    Motion by: Mr. Obey.
    Description of Motion: To amend the Porter amendment by 
increasing the cap on direct student loan administration 
expenses by $20 million.
    Results: Rejected 18 yeas to 28 nays.
        Members Voting Yea            Members Voting Nay
Mr. Bevill                          Mr. Bonilla
Mr. Coleman                         Mr. Bunn
Mr. Dicks                           Mr. Callahan
Mr. Durbin                          Mr. DeLay
Mr. Fazio                           Mr. Dickey
Mr. Foglietta                       Mr. Forbes
Mr. Hefner                          Mr. Frelinghuysen
Mr. Hoyer                           Mr. Hobson
Mrs. Lowey                          Mr. Istook
Mr. Obey                            Mr. Kingston
Ms. Pelosi                          Mr. Knollenberg
Mr. Sabo                            Mr. Kolbe
Mr. Serrano                         Mr. Lewis
Mr. Skaggs                          Mr. Lightfoot
Mr. Stokes                          Mr. Livingston
Mr. Torres                          Mr. Miller
Mr. Viscloskey                      Mr. Myers
Mr. Yates                           Mr. Nethercutt
                                    Mr. Neumann
                                    Mr. Packard
                                    Mr. Parker
                                    Mr. Porter
                                    Mr. Skeen
                                    Mrs. Vucanovich
                                    Mr. Walsh
                                    Mr. Wicker
                                    Mr. Wolf
                                    Mr. Young
                          Full Committee Votes

    Pursuant to the provisions of clause 2(l)(2)(b) of rule XI 
of the House of Representatives, the results of each roll call 
vote on an amendment or on the motion to report, together with 
the names of those voting for and those voting against, are 
printed below:

                             rollcall no. 2

    Date: June 25, 1996.
    Measure: Fiscal Year 1997 Labor, Health and Human Services, 
Education Appropriations Bill.
    Motion by: Mr. Porter.
    Description of Motion: To amend the Livingston amendment by 
imposing income guidelines of persons served by the family 
planning programs and requiring the Secretary of HHS to submit 
an evaluation of the program within 180 days.
    Results: Adopted 29 yeas to 21 nays.
        Members Voting Yea            Members Voting Nay
Mr. Chapman                         Mr. Bunn
Mr. Dicks                           Mr. Callahan
Mr. Dixon                           Mr. DeLay
Mr. Durbin                          Mr. Dickey
Mr. Fazio                           Mr. Forbes
Mr. Foglietta                       Mr. Istook
Mr. Frelinghuysen                   Mr. Kingston
Mr. Hefner                          Mr. Knollenberg
Mr. Hobson                          Mr. Lightfoot
Mr. Hoyer                           Mr. Livingston
Ms. Kaptur                          Mr. Mollohan
Mr. Lewis                           Mr. Murtha
Mrs. Lowey                          Mr. Neumann
Mr. Miller                          Mr. Packard
Mr. Nethercutt                      Mr. Parker
Mr. Obey                            Mr. Rogers
Ms. Pelosi                          Mr. Taylor
Mr. Porter                          Mrs. Vucanovich
Mr. Regula                          Mr. Walsh
Mr. Riggs                           Mr. Wicker
Mr. Sabo                            Mr. Wolf
Mr. Serrano
Mr. Skaggs
Mr. Skeen
Mr. Stokes
Mr. Thornton
Mr. Torres
Mr. Wilson
Mr. Yates
                          Full Committee Votes

    Pursuant to the provisions of clause 2(l)(2)(b) of rule XI 
of the House of Representatives, the results of each roll call 
vote on an amendment or on the motion to report, together with 
the names of those voting for and those voting against, are 
printed below:

                             rollcall no. 3

    Date: June 25, 1996.
    Measure: Fiscal Year 1997 Labor, Health and Human Services, 
Education Appropriations Bill.
    Motion by: Mr. Torres.
    Description of Motion: To strike section 514 of the bill 
and substitute a new section prohibiting use of funds for 
benefits or assistance in violation of Federal law or 
regulation, prohibiting officials from inducing illegal aliens 
to apply for Federal benefits for which they are not eligible, 
and requiring that each State or entity administering a program 
under which verification of immigration status participate in 
the verification system established by the INS.
    Results: Rejected 23 yeas to 24 nays.
        Members Voting Yea            Members Voting Nay
Mr. Bunn                            Mr. Bonilla
Mr. Chapman                         Mr. Callahan
Mr. Dixon                           Mr. DeLay
Mr. Durbin                          Mr. Dickey
Mr. Fazio                           Mr. Istook
Mr. Foglietta                       Mr. Kingston
Mr. Forbes                          Mr. Knollenberg
Mr. Frelinghuysen                   Mr. Lightfoot
Mr. Hefner                          Mr. Livingston
Mr. Hoyer                           Mr. Miller
Mr. Kaptur                          Mr. Nethercutt
Mr. Lowey                           Mr. Neumann
Mr. Mollohan                        Mr. Packard
Mr. Murtha                          Mr. Parker
Mr. Obey                            Mr. Porter
Mr. Pelosi                          Mr. Regula
Mr. Sabo                            Mr. Riggs
Mr. Serrano                         Mr. Rogers
Mr. Skaggs                          Mr. Skeen
Mr. Stokes                          Mr. Taylor
Mr. Torres                          Mr. Vucanovich
Mr. Wilson                          Mr. Walsh
Mr. Yates                           Mr. Wicker
                                    Mr. Wolf
                          Full Committee Votes

    Pursuant to the provisions of clause 2(l)(2)(b) of rule XI 
of the House of Representatives, the results of each roll call 
vote on an amendment or on the motion to report, together with 
the names of those voting for and those voting against, are 
printed below:

                             rollcall no. 4

    Date: June 25, 1996.
    Measure: Fiscal Year 1997 Labor, Health and Human Services, 
Education Appropriations Bill.
    Motion by: Mr. Dickey.
    Description of Motion: To prohibit the use of Federal funds 
for human embryo research.
    Results: Adopted 25 yeas to 20 nays; 2 persent.
        Members Voting Yea            Members Voting Nay
Mr. Bunn                            Mr. Dicks
Mr. Callahan                        Mr. Dixon
Mr. DeLay                           Mr. Durbin
Mr. Dickey                          Mr. Fazio
Mr. Forbes                          Mr. Foglietta
Mr. Hobson                          Mr. Frelinghuysen
Mr. Istook                          Mr. Hefner
Mr. Kingston                        Mr. Hoyer
Mr. Knollenberg                     Mr. Lowey
Mr. Lightfoot                       Mr. Obey
Mr. Livingston                      Mr. Pelosi
Mr. Mollohan                        Mr. Porter
Mr. Murtha                          Mr. Riggs
Mr. Nethercutt                      Mr. Sabo
Mr. Neumann                         Mr. Serrano
Mr. Packard                         Mr. Skaggs
Mr. Parker                          Mr. Stokes
Mr. Regula                          Mr. Thornton
Mr. Rogers                          Mr. Wilson
Mr. Skeen                           Mr. Yates
Mr. Taylor
Mr. Vucanovich
Mr. Walsh
Mr. Wicker
Mr. Wolf

        Members Voting Present
Ms. Kaptur
Mr. Lewis
                          Full Committee Votes

    Pursuant to the provisions of clause 2(l)(2)(b) of rule XI 
of the House of Representatives, the results of each roll call 
vote on an amendment or on the motion to report, together with 
the names of those voting for and those voting against, are 
printed below:

                             rollcall no. 5

    Date: June 25, 1996.
    Measure: Fiscal Year 1997 Labor, Health and Human Services, 
Education, Appropriations Bill.
    Motion by: Mr. Lewis (CA).
    Description of Motion: To report the bill and to move to 
disagree with the Senate amendments and to go to conference 
with the Senate.
    Results: Adopted 27 yeas to 17 nays.
        Members Voting Yea            Members Voting Nay
Mr. Bonilla                         Mr. Dixon
Mr. Bunn                            Mr. Durbin
Mr. DeLay                           Mr. Foglietta
Mr. Dickey                          Mr. Hefner
Mr. Forbes                          Mr. Hoyer
Mr. Frelinghuysen                   Ms. Kaptur
Mr. Hobson                          Mrs. Lowey
Mr. Istook                          Mr. Murtha
Mr. Kingston                        Mr. Obey
Mr. Knollenberg                     Ms. Pelosi
Mr. Kolbe                           Mr. Sabo
Mr. Lewis                           Mr. Serrano
Mr. Lightfoot                       Mr. Skaggs
Mr. Livingston                      Mr. Stokes
Mr. Miller                          Mr. Thornton
Mr. Nethercutt                      Mr. Visclosky
Mr. Neumann                         Mr. Yates
Mr. Packard
Mr. Parker
Mr. Porter
Mr. Riggs
Mr. Rogers
Mr. Skeen
Mrs. Vucanovich
Mr. Wicker
Mr. Wolf


                  ADDITIONAL VIEWS OF HON. NITA LOWEY

    The same day that the Labor, HHS, and Education 
Appropriations bill was being marked up by the Full Committee, 
the GAO released a report about the condition of America's 
schools. The GAO report confirmed the worst: America's schools 
are literally falling down. 31% of our nation's school systems 
reported inadequate buildings and over 66% reported an 
inadequate environment for learning.
    In New York City, half of all children attend classes in 
buildings which are over 55 years old. Over one-third of all 
New York City school roofs need replacement and most of these 
schools have their original and outmoded plumbing and wiring. 
Roof and wall leaks are commonplace.
    Poor school infrastructure is not a problem confined to 
urban areas. 30% of schools in rural areas are reportedly 
inadequate as well.
    We simply cannot prepare America's children for the 21st 
century in 19th century schools. Students cannot learn when the 
walls of their classrooms are crumbling down around them. We 
can't teach computer technology next to coal burning boilers.
    SOme say that the federal government should not get 
involved in school infrastructure because it is a local and 
state issue. However, I believe that the physical condition of 
our schools is a national crisis which the federal government 
simply can not ignore. Local school districts are overwhelmed. 
The local tax base can not keep up with routine maintenance 
costs--let alone the costs of upgrading schools for 21st 
century learning, or easing overcrowding. Local bond issues 
fail regularly.
    We provide Title I funds to schools to improve math and 
English proficiency, yet the physical conditions which many 
Title I children are forced to endure day-in and day-out create 
a barrier to learning.
    We can only address the abysmal condition of our nation's 
schools with the concerted effort of all levels of government. 
I will continue to work to find a viable role for the federal 
government in improving the condition of our schools. We live 
in the wealthiest nation on the earth. Our children should not 
be asked to learn in decrepit, overcrowded, dangerous 
buildings.

                                                        Nita Lowey.
  DISSENTING VIEWS OF HON. DAVID OBEY, HON. LOUIS STOKES, HON. STENY 
             HOYER, HON. NANCY PELOSI, AND HON. NITA LOWEY

    It is no secret that the Majority party and the Minority 
have fundamental disagreements on what the priorities for the 
country should be. Democrats believe that we should put our 
families first. We believe that families have to work too hard 
just to make ends meet, educate their kids, and save for 
retirement. The programs funded in this bill play a crucial 
role in providing educational opportunity and training in job-
related skills, making child care available for working 
families, preserving the health, safety and collective 
bargaining rights of workers, protecting pensions and 
retirement savings, and nurturing our most vulnerable senior 
citizens.
    In contrast, House Republicans seem to be waging a war on 
our nation's children and students, working class Americans, 
and our senior citizens in this bill. Last year, strident 
Majority insistence on slashing the Labor-HHS-Education bill by 
$7 billion led to an 18-month stalemate over passage of the 
1996 Labor-HHS-Education bill. Ultimately, the Republican 
Majority retreated from its full scale attack, and 90 percent 
of the proposed cuts in education, 62 percent of the cuts in 
job training, and 75 percent of the cuts in worker protection 
were restored at the insistence of the White House and 
Congressional Democrats.
    We fervently believe that we must maintain Federal support 
for local schools and work to expand access to postsecondary 
education and job training. Yet, House Republicans continue to 
move in exactly the opposite direction. Last year, the 
President was reluctant to sign any appropriations bill until 
these education and training priorities were addressed. 
Nevertheless, the Majority party is headed down this same road 
again with this bill.
    Despite the assertions of the Majority to the contrary, the 
$65.6 billion in discretionary resources in the FY1997 Labor-
HHS-Education Appropriations Bill is inadequate to fund 
education and training programs at the levels agreed to in the 
1996 bill, much less at the increased levels requested in the 
Clinton budget. In total, the bill provides $22.75 billion in 
discretionary funding for the Department of Education for 
fiscal year 1997, a net reduction of $53 million below the 1996 
level and $2.8 billion or 11 percent below the President's 
request. This net total for the Department of Education, 
however, masks significant cuts in funding for local schools. 
For elementary and secondary education programs, the bill 
provides $14.0 billion, a reduction of $400 million or 3 
percent below the 1996 level and $1.8 billion or 12 percent 
below the President's request.


    Moreover, the Republican Majority picks a fight with the 
President by eliminating priority programs like the Goals 2000 
initiative, the Eisenhower teacher training program and Perkins 
student loans, and underfunding the administration of the 
student loan programs. In total, this bill is $5.5 billion 
below the President's request.
    In total, the bill provides $9.4 billion in discretionary 
funding for the Department of Labor for fiscal year 1997, 
essentially the same level as 1996. However, this is $610 
million below what is needed to maintain last year's program 
levels and $1.3 billion below the President's request--a 15 
percent reduction in job training investments, a 13 percent 
reduction in worker protection programs, and an overall 
reduction of 12% below the President's request.
    Discretionary funding for the Department of Health and 
Human Services is $1.4 billion below the request and $956 
million over the 1996 level. Most of the increase over 1996 is 
accounted for by the $820 million increase for the National 
Institutes of Health, which is $371 million over the request. 
Many other areas of the HHS budget were left with minimal 
increases well below the levels requested by the President, 
including Head Start which is $381 million below the request, 
the Social Services Block Grant which is $320 million below the 
requested mandatory level, the Substance Abuse and Mental 
Health Services Administration which is $249 million below the 
request, the Child Care and Development Block Grant which is 
$99 million below the request, and CDC which is $52 million 
below the request. Furthermore, there is a dangerous assumption 
that about $495 million in discretionary spending for HCFA and 
the IG will be financed through provisions in pending health 
care legislation (HR 3103).
    With the additional $4 billion in resources available for 
nondefense domestic discretionary programs under the FY1997 
budget resolution conference agreement, the Republican Majority 
had an opportunity to fashion a more generous 602(b) allocation 
for this bill that would have allowed this bill to move 
smoothly through the House this year. Instead, the additional 
resources went to other bills. As a result, the great 
difference between the Republican Majority and the White House 
on investing in education and training programs is simply too 
great to be bridged in this bill under this 602(b) allocation.
    The White House has indicated that this bill is simply 
unacceptable. The President's senior advisors recommend a veto. 
We are simply heading down the same road as last year, a road 
that is much longer than it needs to be.
    This bill does not make needed investments in education and 
training. Rather than expanding important programs as requested 
by the President, this bill will actually serve fewer 
individuals compared to the current program levels.
    The bill cuts up to 15,000 Head Start slots compared to 
1996, assuming the quality improvements we have strived to 
achieve are maintained. The President's request would have 
added 50,000 new slots.
    The bill cuts over 150,000 Title 1 children compared to 
1996. The President's budget would have supported nearly 
450,000 additional Title 1 students.
    The bill eliminates aid for 96,000 Perkins loan recipients. 
The President's budget would have assisted 151,000 more 
students than this bill.
    The bill provides Pell grants to 107,000 fewer college 
students compared to the President's budget.
    The bill provides JTPA adult training for 34,000 fewer 
disadvantaged adults than the President's budget.
    The bill provides 79,000 fewer summer jobs for 
disadvantaged youth than will be available this summer. Many of 
these youth rely on summer earnings to buy books, clothes and 
supplies for school. The President's budget would have funded 
132,000 more jobs than this bill.
    The bill provides dislocated worker assistance to 32,000 
fewer workers who lost their jobs due to corporate downsizing, 
base closings, technological change, and global competition. 
The President's budget would have assisted 81,000 more workers 
than this bill.
    The more we invest in today's generation, the better 
equipped our nation will be to grow its way out of the national 
debt, fulfill our commitments to income security for all 
retirees, and sustain and improve our standard of living.-Yet, 
local schools face an incredible challenge to meet the needs of 
a growing number of children in the face of declining Federal 
resources and stiff competition for state and local funding.


    While House Republicans claim to freeze spending on 
education and training in the FY 1997 Republican budget 
resolution and in this bill, the reality is that they still 
have not learned. The Labor-HHS-Education bill continues a 
significant erosion in Federal support in education that is 
only a momentary retreat from last year's full scale attack.
    In essence, what we are seeing this year is an election 
year cocoon which will be shed next year, when Republicans 
return to their real agenda of disinvesting in education and 
training. We need look no further than the conference agreement 
on the FY 1997 budget resolution to see what's in store. Any 
way you look at it, the budget resolution calls for real cuts 
in education and training. Although the agreement provides an 
``election year bump'' where $2.1 billion is added back in FY 
1997 for education and training; overall, education and 
training still is cut $35 billion below current services over 
six years. In total, the budget agreement provides $57 billion 
less than the President's budget for education and training 
over six years.


    In our minds, this back door, long term attack on education 
is not only wrong, it is tremendously shortsighted and 
unnecessary. It shortchanges our kids and our country's future.
    Beyond education and job training, other key areas of the 
budget are also inadequate to meet the domestic needs of the 
nation. At a time when families are being squeezed between 
increasing costs of child care, health care and stagnant wages, 
the Majority has provided only slight increases in certain 
areas to help struggling and vulnerable families, and has not 
restored some of the deep cuts that were made in the 1996 
appropriations bill. Funds have been significantly reduced 
below the President's request, or not provided at all, for 
important programs such as the Social Services Block Grant, the 
Healthy Start infant mortality initiative, child care, summer 
jobs, drug abuse prevention and treatment, and a new 
Opportunity Areas for Youth program.
    The funding levels for programs that assist our nation's 
seniors is another area where the Majority fails to respond to 
the changing demographics of a rapidly growing elderly 
population. We have added over 2 million seniors in the last 
five years and we will see that growth rate turn up sharply 
after the turn of the century. This is no time for the Federal 
government to be backing away from its commitment to share the 
financial burden of providing essential services that enable 
seniors to remain in their homes and enjoy a higher quality of 
living. This bill underfunds the programs at the Administration 
on Aging that support a nationwide network of regional offices 
and State and Area Agencies; these aging agencies coordinate a 
broad array of services which are custom fit to the unique 
needs of local communities, seniors and their caregivers. The 
bill also does not provide sufficient funding for the Low 
Income Home Energy Assistance Program, and makes unwarranted 
changes in the allocation of funds in the Community Service 
Employment Program for Older Americans that will unnecessarily 
disrupt the lives of 8,000 seniors serving their communities in 
minimum wage jobs.
    Again this year, the bill makes further cuts to important 
initiatives for America's 93 million working men and women in 6 
million workplaces across the country. These programs promote 
workplace health and safety, ensure pension security, and 
ensure that employees have fair wages and adequate working 
conditions.
    In subcommittee, we offered a series of amendments designed 
to correct some of the serious flaws in the bill and to add 
back needed funding for local schools, postsecondary education 
training, worker protection programs, vital children, and 
family and seniors programs. Each of these amendments was 
rejected by the Majority.

          Maintaining the Federal Commitment to Local Schools

    Since Republicans took control of the Congress, we have 
witnessed an unprecedented assault by House Republicans on 
American education-an assault that most Americans strongly 
oppose. In 1995, the Republican-led Congress launched its 
assault on education by rolling back nearly $650 million (2.5 
percent) in education spending that Congress had already 
enacted in the fiscal year 1995 Labor-HHS-Education 
Appropriations Bill. That attack escalated into an 18-month 
frontal assault on education in the fiscal year 1996 Labor-HHS-
Education in which Federal education appropriations would have 
been slashed by $3.6 billion or 15 percent if Republicans had 
had their way. Fortunately, that frontal assault was repelled 
by strong opposition from the White House and Congressional 
Democrats. As a result, approximately 90 percent of the 
proposed reductions in elementary and secondary education cuts 
were restored in the 1996 bill.
    Nevertheless, education programs have been cut by more than 
$2.2 billion since the beginning of the Republican-led Congress 
and we continue to see an underfunded Federal contribution to 
local schools. This bill would cut local school aid by another 
$400 million or 3 percent below 1996 levels. The Committee 
would provide $1.8 billion or 12 percent less for education 
than requested by President Clinton in his fiscal year 1997 
budget request.
    Under the Republican-led Congress, the Department of 
Education's contribution to state and local school expenditures 
has fallen. In the 1994-95 school year--the school year just 
prior to Republican control of the Congress--Department of 
Education elementary and secondary programs contributed an 
amount equal to 5.6 percent of state and local expenditures for 
education. Under the Committee bill, the House Republican-led 
retreat from assisting local schools and students, the 
Department's contribution would fall further to only 4.7 
percent of projected state and local education expenditures for 
the 1997-98 school year.
    This drop in the Department of Education's proportionate 
contribution to local schools is bad enough. What makes the 
situation worse is that, since a large majority of the Federal 
aid is properly targeted on pupils who are disadvantaged, have 
a disability, or are from non-English speaking backgrounds, the 
decline in the Department's contribution affects primarily the 
States and localities with the greatest concentrations of such 
high-need children.
    Accounting for all Federal expenditures, in 1992-93, the 
Federal government contributed an average of 6.9 percent to 
local schools; however, the Federal share was much higher in 
such high-need States as Mississippi (17.1 percent), New Mexico 
(12.6 percent), North Dakota (11.9 percent), Louisiana (11.7 
percent), Alabama (11.6 percent), South Dakota (11.6 percent), 
Tennessee (10.3 percent), and Kentucky (10.1 percent). High-
need schools are even more dependent on Federal aid. The 1991-
92 Federal share of total education revenues was 34.0 percent 
for Gallup (N.M.), 24.6 percent for Biloxi (Miss.), 20.5 
percent for Vernon parish (La.), 18.1 percent for Williamsburg 
county (S.C.), 17.2 percent for Harlan county (Ky.), 17.1 
percent for East St. Louis (Ill.), 16.2 percent for Lawrence 
(Mass.), 15.1 percent for Phoenix Elementary (Ariz.), and 13.6 
percent for Chicago (Ill.). When Federal education aid fails to 
grow sufficiently to meet increasing needs, States and 
localities such as these suffer the most severe consequences.
    Often, these are also the localities with the fewest 
taxable resources to tap in an effort to make up for the 
failure of Federal funds to keep pace with growing pupil needs. 
At the same time, a long-term trend toward greater State-level 
provision of public education revenues is being reversed; the 
State share of public elementary and secondary education 
revenues has declined from 50 percent in the mid-1980's to 
approximately 45 percent currently. In many States, public 
education has been losing the competition for scarce resources 
with other priorities such as corrections. Combined with a 
declining Federal share, this means that on average, localities 
are increasingly dependent on their own taxable resources, 
which vary widely. This leads to increased disparities in 
educational opportunities among different localities.
    The House Republican-led cuts come at the worst possible 
time for local schools. Schools face sharp competition for 
resources from state and local sources. This budget squeeze at 
the state and local levels comes at the same time that Federal 
education aid to schools is declining in real terms, while 
school enrollment--and especially the number of high-need 
pupils--is increasing. This double jeopardy severely undermines 
the ability of schools to prepare this generation of students 
for global competition in the next century.
    To meet these challenges, schools are working to increase 
student academic performance, provide more intensive services 
to kids with special needs, provide a safe and secure learning 
environment, and incorporate technology into the curriculum--
all with fewer resources because of House Republican-led 
education cuts. The amendment offered by Congressman Hoyer in 
Subcommittee markup--and rejected by the Republican Majority--
would have provided an additional $2.6 billion needed to 
sustain the Federal contribution to local schools at the 5.6 
percent share that existed prior to Republican control of the 
Congress.


                           Rising Enrollments

    Schools are facing a period of rising enrollments after a 
long period of decline. This fall, nearly 52 million children 
will be enrolled in school--more young people in our schools 
than at any time in our Nation's history. An additional one 
million children will be at the school house door the following 
year, and a total of 3.4 million additional children by the 
year 2002.


    To accommodate these additional children schools must hire 
more teachers and teacher aides, purchase additional books, and 
build new classrooms at a time when Federal, state and local 
education budgets are constrained.
    These children represent our Nation's best hope for the 
21st century. How well we invest in their education and 
training will surely determine what our country will become in 
the future. If these children can effectively compete, our 
Nation will be in good shape. If we fail, these children, their 
families and the country will be in trouble.
    Under this bill, local schools will get 3 percent less than 
they received from the Department of Education for the 1996-97 
school year, even though there will be nearly one million more 
children enrolled. Simple math tells us that fewer Federal 
dollars divided by more children results in real cuts in 
Federal per pupil expenditures. If the Department of 
Education's elementary and secondary budget is frozen through 
the year 2002 at the fiscal year 1997 level of $14 billion 
provided in this bill, the Department of Education's per pupil 
contribution to local schools will drop 9 percent from $278 in 
1996 to $253 in 2002. In real terms, this per pupil 
contribution drops to $222--a reduction of 20 percent--by the 
year 2002.


    Under the Majority bill, the ``hard freeze'' funding level 
of $7.2 billion provided for the Title 1 program would begin a 
six-year erosion in Title 1's purchasing power as called for 
called for under the House Republican fiscal year 1997 budget 
resolution. Accounting for inflation, over 150,000 
disadvantaged children would lose Title 1 services beginning in 
the 1997-98 school year and 1 million disadvantaged children 
would lose Title 1 reading and math help by the year 2002. 
Concomitantly, the proportion of children eligible, Title 1 
children who actually receive services would drop from 53 
percent in 1996 to 42 percent in 2002.


    We deplore this ``stealth'' reduction in Title 1 funding 
when the growing number of low-income, low-achieving children 
are putting increased demands on already-strapped state and 
local budgets, and creating extra burdens for school districts 
and schools. Even the highest poverty school districts with the 
greatest needs are unable to serve all their high-need schools 
and children. In high-poverty elementary schools with at least 
75 percent poverty, a third of the children scoring below the 
35th percentile on reading tests do not receive Title 1 
services and many low-performing middle and high school 
students go unserved. With adequate funding, schools would 
receive the supplemental assistance they need to help these 
children--including children of migratory workers, neglected 
and delinquent youth, and recently arrived immigrants and other 
students who do not speak English well--reach their full 
academic potential.
    The amendment offered by Congressman Hoyer in Subcommittee 
markup would have provided $1.3 billion in additional Title 1 
funding--a total of $8.0 billion--to reach an additional 1.3 
million Title 1-eligible children. The amendment rejected by 
the Republican Majority would have increased from 53 percent to 
63 percent the proportion of Title 1-eligible children served 
in the 1997-1998 school year.

Head Start grants for disadvantaged children

    The Head Start program plays an important role in helping 
low-income, pre-school children prepare for school; virtually 
every study of Head Start has shown improved performance for 
Head Start kids when they enter school. It improves academic 
readiness and achievement, social behavior, and physical 
health. Head Start currently serves 740,000 three- and four-
year olds, which is less than half of the estimated 2 million 
children who are eligible for Head Start services.
    The Majority bill provides $3.6 billion for the Head Start 
program in fiscal year 1997, an amount that, while an increase 
of $31 million over the 1996 level, falls far short of the 
resources needed to maintain quality and address the critical 
need to reach more Head Start eligible children. Under the 
Majority bill, up to 15,000 Head Start slots would be 
eliminated next year, if Head Start grantees maintain critical 
quality improvements mandated by Congress.
    The Solomon's choice between maintaining children in the 
Head Start program and maintaining quality is one we could 
avoid under the President's budget. At the requested level of 
$4.0 billion for Head Start, 50,000 new slots could be added to 
the program without sacrificing program quality. The amendment 
offered by Congressman Hoyer in Subcommittee markup--and 
rejected by the Republican Majority--would have provided the 
additional $381 million to give more low-income children a head 
start in school.

Special education grants for children with disabilities

    Before the Education for All Handicapped Children Act was 
enacted, more than one million children with disabilities were 
denied an education in America's public schools.
    This landmark legislation began a partnership among 
Federal, state and local schools, families, and parents to 
reach a national goal of helping children with disabilities 
reach their full potential. On June 10, 1996, the House of 
Representatives passed on a bipartisan basis the Individuals 
with Disabilities Education Act which reaffirmed this 
partnership. The reauthorization bill is aimed at (1) improving 
educational results for disabled children by promoting their 
greater inclusion in the general curriculum, general 
assessments, and state and local reform efforts, (2) focusing 
more on teaching and learning, and (3) providing families and 
teachers with the knowledge and training they need to support 
students' learning effectively.
    In 1975, when Congress enacted the Education for All 
Handicapped Children Act, the Federal government pledged to pay 
40 percent of the extraordinary per pupil costs of providing 
the mandatory free and appropriate education to children with 
disabilities. We have fallen far short of meeting this 
commitment, and will fall even further behind under the 
Committee's recommendation to freeze Federal special education 
grants to local schools at the 1996 level of $3.0 billion. In 
1996, the Federal contribution dropped from 7 percent to 6 
percent, and it will drop even further to 4 percent if a hard 
freeze for special education grants is extended through the 
year 2002, as called for under the Republican budget 
resolution.
    Under the Majority bill, schools will be required to serve 
an increasing number of children with disabilities--about 
170,000 more children in 1997 than in 1996--with the same 
amount of Federal funding. Under President Clinton's budget 
request, an additional $300 million--a total of $3.3 billion--
would be provided to restore the Federal contribution to 7 
percent and to serve additional children. The amendment offered 
by Congressman Hoyer in Subcommittee markup--and rejected by 
the Republican Majority--would have provided this additional 
funding.

             Improving the Academic Performance of Students

    The House Republican-led cuts in education investments also 
come at a time when nearly every state and every school 
district is working to raise math and science standards to 
better prepare students for the global challenges of the 21st 
century. This is due, at least in part, to Federal 
encouragement through such legislation as the Goals 2000: 
Educate America Act and the Improving America's Schools Act of 
1994 (IASA). Under Goals 2000, a large Majority of the States 
have moved substantially toward establishing new systems of 
challenging content and pupil performance standards, and 
assessments linked to these higher standards. The IASA requires 
States to establish content and performance standards in order 
to continue receiving Title 1 funding.
    States and local schools require additional resources to 
develop and implement these higher standards and expectations, 
but declining Federal aid has made attainment of these goals 
more difficult. Often the toughest money for school districts 
to find is funding for local reform efforts. Schools also face 
critical shortages of funds to train teachers to update their 
knowledge base and to utilize state-of-the art instructional 
techniques.

Goals 2000

    The Majority bill would completely wipe out funding for the 
Goals 2000 program--the Federal government's primary initiative 
to help schools raise math, reading and science standards, 
encourage communities to improve their schools and promote more 
parental involvement in making the schools better. Goals 2000 
is a bipartisan, non-bureaucratic program begun by former 
President George Bush, in cooperation with the nation's 
governors, and endorsed by the U.S. Chamber of Commerce, the 
Business Roundtable, the National Alliance of Business, the 
National Association of Manufacturers and the National Parent 
Teachers Association. Illustrative of the strong business 
support of the Goals 2000 initiative are comments made by Lou 
Gerstner, the chief executive officer of International Business 
Machines (IBM), who commented that ``Goals 2000 is only a small 
portion of what I think we need, but it is a very critical 
portion. If we lose Goals 2000 it would be an incredibly 
negative setback for this country.''
    We remain puzzled by the Majority's vehement opposition to 
the Goals 2000 program because it personifies the Republican 
philosophy of less Federal bureaucracy, and more state and 
local flexibility. Last year and again this year, the Secretary 
of Education testified that there are no Federal regulations 
for the Goals 2000 program. Moreover, in the 1996 Labor-HHS-
Education Appropriations Act, the requirement that a state 
submit its Goals 2000 state plan to the Secretary of Education 
for review and approval was modified to include alternative 
procedures which require only that a state develop an 
educational improvement plan, and report annually to the public 
on the use of Goals 2000 funds and its progress in meeting 
benchmarks of improved student performance.
    The amendment offered by Congressman Hoyer in Subcommittee 
markup would have provided $350 million for the Goals 2000 
program in fiscal year 1997. In contrast, the Republican 
Majority would eliminate this funding just as most schools have 
completed their Goals 2000 planning and begun to implement 
reforms. For example:
          in Arkansas, the Monticello School District is using 
        Goals 2000 funding to partner with the University of 
        Arkansas at Monticello to link undergraduates majoring 
        in education with experienced teacher mentors to 
        improve the preparation of new teachers, based on the 
        needs of the school district;
          in Massachusetts, the New Bedford Public Schools have 
        developed a partnership with the Massachusetts 
        Institute of Technology and are participating in a math 
        and science training course developed by some of the 
        most noted scientists and professions in the country;
          in California, the Vacaville Unified School District 
        is using Goals 2000 funds to help low-performing 
        schools in the district raise academic standards and 
        implement effective teaching strategies aimed at 
        ensuring that by the third grade, all students are 
        reading on grade level; and
          in Florida, the Hillsborough County School District 
        is using Goals 2000 funds to partner with the 
        University of South Florida, Tampa Education Cable 
        Consortium and Apple Computer, Inc. to implement the 
        ``Beyond the Walls'' project, an interactive 
        telecommunications writing program for elementary, 
        middle and high school teachers to ensure that teachers 
        master the skills needed to teach writing through 
        distance learning technologies.
    The Majority also would eliminate Goals 2000 funding to 28 
Parental Assistance Centers under which parents are being 
encouraged to participate fully in their children's learning. 
These Centers are:

                 GOALS 2000 PARENTAL ASSISTANCE CENTERS                 
------------------------------------------------------------------------
                                                                 Grant  
             Grantee                         State               amount 
------------------------------------------------------------------------
Ahmium Education, Inc...........  California.................   $339,104
Clayton Foundation..............  Colorado...................    449,000
Greater Washington Urban League.  District of Columbia.......    264,712
Center for Excellence...........  Florida....................    495,179
Albany/Dougherty 2000             Georgia....................    265,566
 Partnership for Education.                                             
Parents and Children Together...  Hawaii.....................    389,697
The Higher Plain, Inc...........  Iowa.......................    328,191
Licking Valley Community Action   Kentucky...................    309,546
 Program.                                                               
Maine Parent Federation, Inc....  Maine......................    125,000
Child Care Connection, Inc......  Maryland...................    470,401
Cambridge Partnership for Public  Massachusetts..............    364,379
 Education.                                                             
Life Services of Ottowa County,   Michigan...................    209,090
 Inc..                                                                  
PACER Center, Inc...............  Minnesota..................    324,000
Literacy Investment for           Missouri...................    453,472
 Tomorrow--(LIFT).                                                      
Sunrise Children's Hospital       Nevada.....................    212,703
 Foundation.                                                            
Parent Information Center.......  New Hampshire..............    289,034
Prevent Child Abuse--New Jersey.  New Jersey.................    358,304
Geneseo Migrant Center, Inc.....  New York...................    249,952
Exceptional Children's            North Carolina.............    367,783
 Assistance Center.                                                     
Lighthouse Youth Services, Inc..  Ohio.......................    388,621
Parents as Partners in Education  Oklahoma...................    377,247
Community Action Southwest......  Pennsylvania...............    453,013
Black Hills Special Services      South Dakota...............    436,267
 Foundation.                                                            
NashvilleREAD, Inc..............  Tennessee..................    199,231
Mental Health Association of      Texas......................    499,941
 Texas.                                                                 
Vermont Family Resource           Vermont....................    388,576
 Partnership.                                                           
Children's Home Society of        Washington.................    462,991
 Washington.                                                            
United Health Group of Wisconsin  Wisconsin..................    468,000
------------------------------------------------------------------------

    All of the centers must provide support to preschool 
children through either the Parents as Teachers (PAT) or Home 
Instruction Program for Preschool Youngsters (HIPPY) programs--
both widely replicated, home-based models that have proven to 
be highly effective in helping parents help their children to 
learn.
    In contrast to the Republican proposal to provide zero 
funding for the Goals 2000 program, President Clinton requested 
$491 million for Goals 2000 in fiscal year 1997 to provide 
assistance to six million children in 2,000 individual schools 
which are working to help children gain the high academic 
skills necessary for success.

Eisenhower teacher training

    We believe that empowering teachers with the skills needed 
to provide challenging learning experiences for their students 
is essential for those students to achieve world class academic 
standards. Common sense, as well as empirical research, tells 
us that well-trained teachers can make a real difference in 
student outcomes.
    The Eisenhower Professional Development Program is the 
major Federal vehicle for ensuring that the nation's educators 
are able to teach children to high standards, and for many 
school districts, the only source of funding for any 
professional development activities at the local level. The 
program is especially critical to improving teaching in math 
and science subjects where, according to the National Science 
Foundation, nearly one-half of the nation's more than 2 million 
math and science teachers, especially those at the elementary 
level, require extensive upgrading in both disciplinary 
competency and pedagogical skills.
    The Majority bill provides no funding for the Eisenhower 
Professional Development Program, a reduction of $275 million 
below the 1996 appropriation and $610 million below the 
President's budget request. While we do not quarrel with 
providing additional resources to local schools through the 
Title VI Innovative Education Program Strategies State Grants 
Program, we believe that redirecting Eisenhower Program funds 
to the Title VI program is a serious mistake. The Eisenhower 
program has achieved a reputation for supporting high-quality, 
professional development which reaches approximately 750,000 
teachers annually in 13,000 school districts. In the decade 
since this program was first initiated, student achievement in 
the subjects of math and science has increased. Between 1982 
and 1992, the math and science proficiency scores for 17-year 
olds on the National Assessment of Educational Program rose 9 
and 11 points, respectively, on each assessment. This is 
roughly equivalent to an additional year of learning in high 
schools.
    The Eisenhower Program provides great flexibility to 
address local school needs, at the same time that it 
establishes a clear, vital and sound priority for teacher 
training and retraining at the local level. A national 
investment in teacher training through the Eisenhower Program 
is a sound investment in improved student achievement.

               A Safe and Secure Educational Environment

    No teacher or student should be afraid to walk into a 
classroom or walk on school grounds. Yet, schools face a 
greater burden in providing a safe and secure, and drug-free 
environment for students and teachers than they did ten years 
ago. Violence in and around schools directly affects educators 
and students by reducing school effectiveness and inhibiting 
student learning. In 1993, more than one in five high school 
seniors were threatened in school.
    Alcohol and other substance abuse is a serious problem for 
students. And, after 12 years of steady decline, youth drug use 
has recently increased. In 1995, 38 percent of 8th graders had 
tried an illegal drug and 16 percent had used marijuana. The 
proportion of students having five or more drinks in a row in a 
two-week period in 1995 was 15 percent for 8th graders, 24 
percent for 10th graders, and 30 percent for 12th graders. 
Almost 1 in 25 12th graders drinks alcohol daily.
    The Majority bill cuts Federal support for safe and drug-
free schools and communities, reducing assistance for national 
programs by $25 million and state/local grants by $74 million 
below the President's request. These reductions put millions of 
children and teachers at an increased risk of violence in their 
schools.
    We know that funding for the Safe and Drug free national 
programs has provided flexible resources to respond to local 
needs in drug and violence prevention. For example, safe and 
drug free national program funds were used to meet some of the 
needs of the Oklahoma City Public Schools after the bombing of 
the Federal building there. Research demonstrates that major 
disasters, such as in Oklahoma City bombing, sometimes lead to 
increased drug use, disruption in class, truancy, violent 
behavior and ``acting out'' behavior. With national program 
funds, the Department of Education was able to immediately 
respond to the needs of the Oklahoma schools for help in 
maintaining stability in the schools.
    The amendment offered by Congressman Hoyer in Subcommittee 
markup--and rejected by the Republican Majority--would have 
restored $25 million for the Safe and Drug Free Program to 
provide the necessary funding for national, leadership 
activities designed to prevent illegal use of drugs and 
violence among students at all educational levels.

           Providing State of the Art Educational Technology

    Expectations and opportunities also are rapidly increasing 
in the realm of educational technologies. Educators, business, 
and parents all agree that integrating technology into the 
classrooms will increase the educational achievement of 
students. Technology has been documented to improve student 
academic achievement in language arts, math, social studies and 
science; to enable more effective teaching; and result in gains 
in reading and math test scores for remedial and low-achieving 
students.
    While Internet access, compact discs, and other expanding 
instructional resources will eventually make instruction more 
efficient and may reduce costs, the initial costs that must be 
incurred in order to make use of these technological 
opportunities are substantial. McKinsey and Co., one of the 
world's top management consulting firms, examined the costs and 
investments required to effectively integrate technology into 
the classroom. McKinsey found that:
    More computers are needed: Only 4 percent of schools have 
more than one computer for every 5 students. One-half of 
computers are in school labs; only 24 percent of schools have 
computers in every classroom. On average, students spend only 
about 8 minutes a day using computers in learning. Only 9 
percent of all instructional rooms--classrooms, labs and media 
centers--are connected to the Internet.


    Moreover, there are persistent inequities in the 
distribution of up-to-date technology in the schools and at 
home. Most state-of-the art schools are in affluent suburbs; 
students in rural and inner city schools tend to have far less 
access to computers both at school and at home. In 1993, only 
6.1 percent of low-income children in grades 7-12 had used a 
computer at home compared to 55 percent of high income children 
in those grades.
    Computer networks need to be established: While up to 50 
percent of schools have already installed local area networks, 
less than 10 percent of these networks connect computers in all 
classrooms.
    More investment is needed: The technology share of local 
school budgets must increase from a current 1.3 percent to as 
much as 4 percent to achieve the full potential of available 
information technologies.
    The Majority bill terminates funding for the Star Schools 
program--a small, but significant effort to improve instruction 
in math, science and foreign languages through 
telecommunications networks. Since 1988, the Star Schools 
program has provided services to more than 6,000 schools in 
nearly every state, bringing otherwise unavailable instruction 
to students in rural areas in such states as Iowa, Mississippi, 
and Washington. The President's budget requested $25 million 
for this initiative in fiscal year 1997 to expand the use of 
distance learning technologies to raise academic standards and 
undertake related schools reform efforts.
    The President's budget also requested $250 million in 
fiscal year 1997 ($2 billion over five years) for a new 
Technology Literacy Challenge Fund to assist schools in 
achieving four technology goals:
          All teachers have the training they need to help 
        students learn to use computers and the information 
        superhighway;
          All teachers and students have modern computers in 
        their classrooms;
          Every classroom is connected to the information 
        superhighway; and
          Effective software and on-line resources are an 
        integral part of every school's curriculum.
    The sophistry employed by the Majority in denying any 
funding for this significant, new technology initiative ignores 
the strong evidence that, used properly, computers and other 
communications technologies can expand students' opportunities 
and improve their motivation and achievement in many ways; for 
example:
          Basic skills.--Students in Computer Aided Instruction 
        (CAI) classes have outperformed their non-CAI peers on 
        standardized tests of basic skill achievement by as 
        much as 30 percent;
          Advanced skills.--Interactive educational 
        technologies enable students to engage in problem 
        solving activities that have real-life applications;
          Access to instruction and information.--Distance 
        learning makes it possible for students in isolated 
        schools to take courses (such as calculus and physics) 
        from remotely located and highly skilled teachers; and
          Processing and presenting information.--Word 
        processors and spreadsheets permit students to revise 
        their writing and analysis more easily and often, 
        resulting in demonstrably improved writing and 
        learning.
    We believe that the Committee's action to deny this funding 
is shortsighted and unwise. Computers and related technologies 
have transformed practically every sector of American life. 
Access to information has opened entirely new ways of thinking 
about how we live, work and learn. Computers are now ubiquitous 
in work settings. Blue and white collar jobs rely extensively 
on computers and telecommunications.
    Without the funding requested by the President for 
technology initiatives, schools will have fewer resources to 
equip students for today's more demanding, high stakes learning 
and work environments where one must be able to read, compute 
and work with others using technology. The amendment offered by 
Congressman Hoyer in Subcommittee markup--and rejected by the 
Republican Majority--would have provided $250 million as the 
first installment of funding for the Technology Literacy 
Challenge Fund to assist local schools in addressing these 
challenges.

                Postsecondary Education and Job Training

    Equally important to the future of our nation economic 
competitiveness is the role of postsecondary education and 
training. At a time in our nation's history when a college 
education is more critical than ever to the success of workers 
and their families, the Majority has ignored the demands of 
increasing enrollment and rising tuition costs by providing 
$729 million less than the President's Budget for student aid. 
The bill includes only an increase of $30 dollars in the 
maximum Pell grant instead of $230 as requested by the 
Administration, which will mean 107,000 fewer students will 
receive a Pell grant. The Pell grant program is the cornerstone 
for Federal college assistance, providing aid to 4 million 
needy students. More than 90 percent of Pell assistance goes to 
students from families with incomes below $30,000, and 41 
percent goes to students in families with incomes below 
$12,000. The Pell program is one of the few sources of grant 
aid still available, and helps cut down on the crushing college 
debt assumed by so many students and their families today.
    This bill has also eliminated the new capital contributions 
to the Perkins Loan program thereby denying 96,000 students a 
Perkins award. Over 88 percent of undergraduate students who 
benefit from Perkins loans come from families with incomes 
under $50,000. These are kids from hard-working, middle class 
families whose incomes have been squeezed year after year.
    Over the objections of the Minority, the Majority has 
accepted the Administration's proposal to terminate the State 
Student Incentive Grant program, which means nearly 130,000 
students would no longer get the help they need to attend 
college. The SSIG program continues to be effective, and 
generates several times more in student aid than the Federal 
contribution due to the state matching requirement. SSIG also 
serves some of the neediest students, helping students whose 
families have median incomes of just over $12,000 for a family 
of four.
    For many workers, who are not able to go to pursue a 
college education, it will be essential to obtain training in 
job related skills. The President's budget would have assisted 
an additional 34,000 disadvantaged adults with JTPA job 
training and supportive employment services above the level 
financed in this bill.
    The Lowey amendment which failed in subcommittee would have 
added $499 million for Pell grants, Perkins loans, SSIG, and 
the JTPA adult training program.
    In recent years, new technologies and expanding global 
competition have required an increasingly more educated 
workforce, and there is little doubt that this trend will 
continue into the next century. One of our greatest economic 
challenges is wage stagnation and a falling living standard for 
American workers who have difficulty adapting to the demands of 
the changing workplace. Without additional job training or 
higher education, these workers will continue to lose ground 
relative to the remainder of the workforce.
    In 1980, college educated males age 25-34 earned 19 percent 
more than individuals with only a high school degree, and 
college educated females had a 52 percent advantage. In 1993, 
this gap widened to a 57 percent difference for males and a 99 
percent difference for females.
    Each year, more students are recognizing the critical 
importance of higher education and are entering two-year and 
four-year college and university programs as the basic 
education to prepare for their careers. Over the next several 
years, a combination of factors will place a greater burden on 
the Federal role for providing student aid. As a nation, it is 
in our economic interest to react to these factors and increase 
Federal student aid so that we can adequately prepare the next 
generation of American workers.

                           Rising Enrollment

    Currently only about half of high school seniors go on to 
college, and only half of those will complete a degree. 
However, it is becoming increasingly difficult to make a 
successful career with only a high school education. 
Postsecondary enrollment has been steadily increasing and will 
place greater demands on the Federal student aid programs in 
the near future. There are currently 14.4 million college 
students in the country and enrollment is expected to reach 
15.8 million by 2002.


                             Rising tuition

    At the same time that the need for postsecondary education 
is becoming universal, the cost of this education has been 
rapidly increasing and causing financial strain for all but the 
most affluent American families. During the 1980's the cost of 
attendance at public universities increased by 109 percent and 
at private universities by 146 percent. A 1991 Gallup poll 
showed that 87 percent of Americans believe that costs are 
rising at a rate which will put college out of the reach of 
most people.

 Declining value of Federal grants and shrinking state share of funding

    During the past two decades, Pell grants have not kept pace 
with college expenses. In 1976, the maximum Pell grant of 
$1,400 covered 48 percent of the average college cost of 
$2,896. In 1996, the maximum Pell grant of $2,340 covered only 
20 percent of the average college cost of $11,584.
    States are not picking up the slack in student aid. In 
fact, the opposite is true. Information from Department of 
Education indicates that public colleges and universities have 
seen the percentage of state funding decline from 45.6 percent 
of their budget revenues in 1981 to 35.9 percent in 1994. This 
in turn has driven public tuitions up drastically. During this 
time, revenues from tuition and fees have been increased from 
12.9 percent of the budget in 1981 to 18.4 percent in 1994. 
This year, undergraduates at the University of California will 
pay 450 percent more in tuition than their siblings paid in 
1980. At the City University of New York, tuition has increased 
315 percent during the same time.
    There is no question as to the importance of Federal 
assistance in making it possible for students to receive a 
postsecondary education. At public colleges, more than 50 
percent of the full-time students need some form of Federal 
financial assistance, and at private schools, the figure is in 
excess of 70 percent.

                   Increasing debt burden of students

    The decline in grants from all sources has led to explosive 
increases in student borrowing. In 1976, loan volume totalled 
$1.8 billion, and the ratio of loans to Pell grants was 1.2:1. 
In 1986, loan volume reached $8.6 billion, and the ratio of 
loans to grants increased to 2.5:1. By 1995, loan volume topped 
$27 billion, and the ration of loans to grants increased to 
5.0:1. With more and more students racking up mountains of 
debt, the next generation of workers will start out more in the 
hole, and will face an increasing financial struggle to start 
their families and finance their first homes.

                  Administrative Cap on Student Loans

    The House Republican's proposal to fund student loan 
administrative activities under section 458 at $420 million in 
1997 would effectively cap new volume in the Direct Loan 
program, handicap Department efforts to prevent and collect 
defaulted loans, and threaten the overall integrity of student 
loan programs.
    The proposed funding level is $16 million below the 1996 
level and $71 million below the President's request. There is 
no way to reconcile these reductions with the following facts:
          Direct Loan volume share will increase by 25 percent 
        (from 32 percent in academic 1995-1996 to 50 percent of 
        overall loan volume in 1996-97);
    The number of Direct Loan schools will grow by 30 percent 
(from 1,300 in 1995-96 to 1,700 in 1996-97) and hundreds of 
additional schools are scheduled to join the program beginning 
in July 1997. Similar to the FFEL program, 88 percent of loan 
volume will be made through 4-year public and private 
institutions. As required by statute, the percentage of 
proprietary schools in Direct Loans is comparable to that under 
the FFEL program;
          The number of loans in repayment will grow by 175 
        percent (from 594,000 in fiscal year 1996 to 1.6 
        million in 1997); and
          Since Direct Loan origination and servicing 
        contractors are paid on a per-unit basis, growth in the 
        number of new loans and loans entering repayment will 
        increase costs for these contracts substantially 
        between 1995-1996 and 1996-1997.
    As these facts make clear, substantial cost increases for 
Direct Loan origination and servicing are inevitable in 1997. 
The absence of sufficient funds to support these additional 
costs would force the Department to cut back on new loans, 
effectively denying students and schools the opportunity to 
participate in the program. In addition, under the proposed 
level:
    Funding for the Department's highly successful default 
collection activities would have to be reduced. Thanks in part 
to additional resources that have been available in recent 
years, Department collections totaled $2.0 billion in 1995, 
twice the amount collected only four years earlier. During this 
same period, the cohort default rate has dropped from over 22.4 
percent to 11.6 percent.
    Funding to support a range of oversight systems such as the 
National Student Loan Data System would have to be reduced. The 
Department's Inspector General, the General Accounting Office, 
and congressional oversight committees have repeatedly noted 
the vital role these systems play in avoiding fraud, waste, and 
abuse.

Training opportunities

    The funding levels in the House bill for overall employment 
and training programs is $1.0 billion (15%) below the 
President's request, resulting in 300,000 fewer participants 
being served. This funding level is entirely inadequate given 
the need for essential investments to train this country's 
workforce. New technologies, global competition, and an 
increasingly integrated economy require an exceptionally well 
trained workforce. It is clear that job-related skills training 
is essential, paying off in terms of increased productivity for 
industry and increased wages for workers. Given these facts, we 
cannot comprehend why the Congress should reduce funding in 
this critical area. Such cuts will mean lost opportunities for 
thousands who are striving for a better life or just to escape 
welfare dependency.
    The House Republicans' proposal to fund the JTPA adult 
training program at $850 million represents a $97 million cut 
from the President's request, resulting in 34,000 fewer low-
income people who can receive assistance. This program helps 
people acquire the basic and technical skills necessary to 
obtain new or better employment. Any serious reform of the 
welfare system will require substantially increased investments 
in job training services for economically disadvantaged 
adults--not reductions.
    Evaluations have shown that this program works The National 
JTPA Impact Evaluation shows that participants increase 
earnings by 10-15% over comparable individuals who are not 
trained; adult women trainees who were former AFDC recipients 
earn $6,000 per year more than control groups and earnings 
gains achieved as a result of training continue throughout the 
lifetime of individuals who participate. Thus, this program is 
a good financial investment--it has social benefits which are 
1.5 times greater that its costs.
    Disadvantaged adult workers don't need a handout. But many 
need a helping hand. We can't afford to balance the budget in 
the backs of those who need government's help the most.


                  Assistance for Children and Families

    At a time when families are being squeezed between 
increasing costs of child care, health care and stagnant wages, 
the Majority has provided only slight increases in certain 
areas to help struggling and vulnerable families, and has not 
restored some of the deep cuts that were made in the 1996 
appropriations bill. The Stokes amendment which failed in 
subcommittee would have added $1.2 billion for key programs in 
this area, including the Social Services Block Grant, the 
Healthy Start infant mortality initiative, child care, summer 
jobs, drug abuse prevention and treatment, and a new 
Opportunity Areas for Youth program.

Social Services Block Grant

     While the bill provides an increase of $99 million for the 
Social Services Block Grant, the funding level is still a $320 
million cut below the entitlement level of $2.8 billion 
required under current law. There are a number of States that 
do not provide additional funding for social services, and the 
impact of this cut will be severe--particularly in services 
such as protective services for children and adults, home-based 
care, and child care that are essential in promoting family 
security. Together with other cuts in low income programs which 
this Congress has made, such as a one-third cut in low income 
energy assistance, communities will be hard pressed to respond 
to the needs of the elderly, at-risk youth and children and 
families.

Healthy Start Initiative to reduce infant mortality

    The Minority strongly opposes the elimination of the 
Healthy Start initiative that is designed to reduce high infant 
mortality rates through the development and dissemination of 
various community-based strategies. The United States has the 
highest infant mortality rate of 22 industrialized nations. Of 
the 4 million babies that will be born this year, 36,000 will 
die before their first birthday. These are tragic losses that 
will devastate each of those families. Five years ago, a 
demonstration program was initiated to target 22 communities 
with the highest infant mortality rates with the goal of 
cutting the number of deaths in half and reducing the number of 
low birthweight births. The preliminary results indicate that 
this program has been a success, and the President has proposed 
to transfer the strategies and best practices learned from this 
demonstration to other communities with high infant mortality 
rates. In their drive to eliminate programs, the Majority has 
chosen to end this successful initiative altogether.
    The Minority believes that this is penny-wise and pound-
foolish. The facts speak for themselves:
          Low birthweight infants represent 7 percent of all 
        births, but 57 percent of the cost of care of all 
        newborns;
          In 1990, the hospital costs for low birthweight 
        newborns exceeded $2 billion--an average of more than 
        $21,000 per baby. Many newborns with health problems 
        caused by low birthweight incurred additional hospital 
        costs of $175,000. In contrast, a healthy delivery 
        averages $2,842.
          It is now estimated that spending $1 on prenatal care 
        saves $3 in health costs later; and
          Long-term health care costs for a low birthweight 
        baby can reach $500,000, while prenatal care to prevent 
        low birthweight costs as little as $750.
    Without replication of the lessons learned from this 
initiative, many other communities with high infant mortality 
rates will not be able to reach the Year 2000 objectives of an 
infant mortality rate of 7 per 1,000 live births, 5 percent low 
birthweight births, 90 percent immunization level of all 
children by age 2, and efforts to reduce the disparities 
between white and Minority populations will be adversely 
affected. The Minority believes that these are such high 
priority public health goals, that a separate, highly focused 
program such as Healthy Start is critical to success--an 
assessment shared by the Bush Administration which initiated 
this program rather than using the existing public health block 
grant programs that are already stretched thin.


Teen pregnancy

    The United States has the highest rate of teenage pregnancy 
of any industrialized country in the world, and has been a 
focus of concern in both Democratic and Republican welfare 
reform proposals. Nonetheless, the bill fails to include $30 
million as requested by the President for a teenage pregnancy 
initiative that would reach about 25 communities with high 
teenage pregnancy rates to promote the message to young people 
that staying in school, postponing pregnancy, and preparing for 
work are the right things to do.
    These funds would be concentrated on comprehensive 
interventions to provide opportunities for young people to take 
responsibility, improve their life skills, and become 
contributing members of society. These interventions would 
include abstinence-based activities, career counseling, job 
skills training, mentoring, family planning, alcohol and drug 
use prevention, academic tutoring, and drop-out prevention. The 
new initiative would work in tandem with other Department 
activities to build upon existing community coalitions, support 
the implementation of promising prevention strategies and 
include an evaluation component. While there are a variety of 
pregnancy prevention interventions in operation around the 
country, there is little conclusive data about their 
effectiveness. This initiative would expand our knowledge of 
what works and what doesn't work. It is shortsighted that this 
promising initiative will not be funded.

Child Care and Development Block Grant

    Each year millions of working families struggle to meet the 
significant costs of child care.
    In 1994, 60 percent of women with children younger than 
six, and 57 percent of women with children younger than three, 
were in the labor force.
    The average cost of serving one child in a child care 
center is $4,940 per year.
    As state welfare reforms shift child care resources to 
welfare families, the working poor families are facing 
increasingly long waiting lists for child care assistance.
    The bill provides only a $15 million increase for the Child 
Care and Development Block Grant program, which is $98 million 
less than the President requested, and will not even be enough 
to keep pace with inflation. This program which helps 750,000 
families--a fraction of the number of families which need child 
care assistance. The cut in the President's request for child 
care, taken together with the $381 million cut in the request 
for Head Start, means that we will be losing ground in our 
efforts to help working families give their young children 
quality, developmental experiences that will lead to more 
successful lives.

Substance abuse prevention and treatment

    The Majority's funding recommendations for substance abuse 
prevention and treatment do not adequately support the 
President's 1997 drug strategy that is coordinated by the 
Office of National Drug Control Policy. That strategy 
recognizes that drug dependence is a chronic, relapsing 
disorder that requires specialized treatment. The Substance 
Abuse and Mental Health Services Administration supports 
Federal drug control priorities by expanding access to 
treatment and prevention strategies.
    In 1996, funding for substance abuse prevention was gutted 
by a 60 percent cut of $148 million. The 1997 bill is only 
slightly above this very low funding level which will mean that 
over 5 million at-risk youth individuals will no longer be 
reached through the substance abuse prevention programs, 
including 2,000 pregnant women and their infants, and 18,500 
youth and their families.
    Similarly, the 1996 bill slashed treatment demonstration 
programs by a 57 percent cut of $118 million. The 1996 cut will 
reduce contacts with those likely to contract AIDS by 134,000 
and eliminates treatment for 2,400 women and 4,700 children who 
have no where else to go for such assistance. The 1997 bill 
restores only 10 percent of this cut.
    The bill also unfairly reduces the substance abuse 
performance partnership block grant by $50 million on the basis 
that these funds will be provided from PL 104-121. The 
conference report on that legislation clearly states the 
purpose of the $50 million is to be additional funding to 
supplement the treatment budget so that states can meet the 
needs of the large number of SSI beneficiaries with drug abuse 
related disabilities whose benefits will be cut off pursuant to 
that legislation. The action taken in the Labor HHS bill 
ensures that states will be provided no additional assistance 
to help these individuals, and many will go unserved.


Summer youth employment

    The bill cuts the President's request for the Summer Youth 
Employment program by $246 million or 28 percent, which will 
mean 132,000 fewer youth will have a job next summer. This is 
79,000 fewer jobs than were provided for this summer. This 
record low level participant level of 442,000 is 44 percent 
below the 782,000 participants in 1992.
    Teen unemployment far exceeds overall unemployment, 
averaging 17.7 percent last summer compared to the overall 
average of 5.9 percent. Unemployment among disadvantaged 
teens--the major target group for the Summer Youth Employment 
Program--averaged 37 percent. Youth employed by the Summer Jobs 
program live in neighborhoods where poverty, joblessness and 
crime are rampant. A recent study indicated that fewer than 25 
percent of the young people enrolled in this program would have 
been able to find another job. The summer youth program 
participants are playing by the rules, with some 84 percent 
remaining in high school. The support for these young people 
occurs at a critical time in their lives, and the opportunity 
to participate in this program may result in taking their right 
path that will pay off many fold in later years.


Opportunity Areas for Youth Program

    The bill does not include any funds for a new Opportunity 
Areas for Youth program for which the President requested $250 
million. Currently there are 4.7 million youth ages 16 to 24 
living in inner city and rural areas with poverty rates in 
excess of 30 percent. These youth face considerable barriers to 
succeeding in life, and the overall unemployment rate for out-
of-school youth in high poverty areas is 46 percent. The 
Opportunity Areas for Youth program would target 50,0000 youth 
in 15-20 high-poverty urban and rural communities with services 
aimed to mainstream them into the private sector, both in terms 
of immediate job placement and work-based learning 
opportunities to increase long-term employment. It also would 
require strong emphasis on personal accountability, requiring 
responsible behavior as a condition of participation. Grants 
would be awarded for a five year period, and Federal funds 
would gradually decline over the grant period, as state and 
local matching funds ramp up and take over entirely after the 
five year period. This sort of program is desperately needed 
and it is very discouraging that it will not be funded.

Addressing critical biomedical health research

    While the Minority supports overall increases for the 
National Institutes of Health and the great promises that this 
research holds, the bill fails to provide specific funding for 
AIDS research through a single appropriation for the Office of 
AIDS Research (OAR) as provided for in the National Institutes 
of Health Revitalization Act and as requested by the President. 
The consolidated appropriation helps NIH manage NIH research 
funds more efficiently, minimizing duplication and setting 
priorities based on scientific opportunity across the 21 
institutes and centers involved in AIDS research.
    In March of this year, NIH released the findings and 
recommendations of an outstanding external review committee 
which completed a detailed evaluation of NIH's AIDS research. 
The recommendations are designed to streamline research, 
eliminate lower priority programs, and ensure that the American 
people reap the full benefit of their substantial investment in 
AIDS research. The findings of this report underscore the 
inherent value of the OAR as the body at the NIH with the 
authority over the AIDS budget. We believe that the OAR's 
budgeting authority should be restored before this bill is 
signed by the President.

                         Assistance for Seniors

    The funding levels for programs that assist our nation's 
seniors is another area where the Majority fails to respond to 
the changing demographics of a rapidly growing elderly 
population. We have added over 2 million seniors in the last 
five years and we will see that growth rate turn up sharply 
after the turn of the century.
    This is no time for the Federal government to be backing 
away from its commitment to share the financial burden of 
providing essential services that enable seniors to remain in 
their homes and enjoy a higher quality of living. The Minority 
offered an amendment which failed in subcommittee that would 
have added $1.2 billion for key programs that assist seniors 
including the Low Income Home Energy Assistance program, the 
Administration on Aging, and the Community Service Employment 
for Older Americans program.
    The bill continues the unfortunate downward trend of the 
1996 appropriations act by again cutting funding for the 
Administration on Aging by an additional $19 million on top of 
the $47 million in cuts enacted last year. These programs 
support a nationwide network of regional offices and State and 
Area Agencies on Aging that coordinate a broad array of 
services which are custom fit to the unique needs of local 
communities, seniors and their caregivers. Of special concern 
is the elimination of all funds for aging research, training 
and special projects which will negatively impact on local 
communities ability to improve, develop, and test innovative 
solutions of the needs of seniors.


    The Low Income Home Energy Assistance program is especially 
critical to this vulnerable population of seniors who are 
living on very modest fixed incomes. Currently 70 percent of 
recipients have incomes below $8,000, and one-third are 
elderly.
    In 1996, LIHEAP funding was slashed by $419 million, a 
reduction of one-third. This bill provides $100 million less 
than the President requested for fiscal year 1997, and did not 
appropriate any of the $1 billion requested for 1998.
    From 1981 to 1994, the low income population eligible for 
LIHEAP has grown from 19.7 million to 29.1 million. However, 
the percentage of eligible households served has dropped from 
36 percent to 21 percent, along with a decline in the amount of 
benefits from 23 percent of the total utility bill to 12 
percent in 1994. These reductions have occurred before the 
massive funding cuts of the 1996 bill.
    The advance appropriation for 1998 is critical to the 
State's budgeting and planning process to have time to 
determine the program eligibility rules, establish the size 
benefits, and establish the parameters of the crisis program 
before the winter heating season begins. The Congress 
recognized the legitimacy of this state need, and authorized 
forward funding in the 1990 reauthorization of the program.
    In the Senior Community Service Employment Program at the 
Department of Labor, the Minority strongly disagrees with the 
decision of the Majority to change the allocation of funding 
from the traditional 78 percent of the funds for national 
sponsors and 22 percent for States to the proposed 65 percent 
share for national sponsors and 35 percent for states. The 
National sponsors have a good track record of running these 
programs, and they include: Green Thumb, the American 
Association of Retired Persons, the National Council on Senior 
Citizens, the National Council on Aging, the National Urban 
League, the National Indian Council on Aging, the National 
Asian Pacific Center on Aging, the National Caucus and Center 
on Black Aged, the National Association for Hispanic Elderly, 
and the U.S. Forest Service.
    The allocation change will cause an immediate and severe 
impact on the program and seniors, increase costs, serve fewer 
participants, and reduce program effectiveness. Since State 
sponsors and national sponsors are often located in different 
areas, the State sponsors may not be able to pick up the 
current enrollees of the national sponsors. Approximately 8,000 
seniors will be affected and some will needlessly lose their 
jobs.
    The proposed reallocation also does not make sense on the 
basis of performance. National sponsors have a 29 percent 
placement rate into unsubsidized jobs compared to the average 
state rate of 21 percent. The national sponsors have also been 
very successful in running these programs at lower cost per 
participant than state run programs. The cost per participant 
is $3,897 for national sponsors compared to $4,482 for state 
programs.
    The seniors participating in this program are hard working 
individuals who are making important contributions to their 
communities by working in schools, hospitals, child care 
centers and a host of other community agencies. In 1995, 80 
percent of the participants had incomes below the poverty 
level, 40 percent were minorities, and 72 percent were women. 
They don't deserve to be subject to an arbitrary change that is 
not based on a rational attempt to improve the program. The 
decision of the Majority to change the allocation should be 
reversed in the interest of seniors and taxpayers.

                         Assistance for Workers

    Over the last two years, primarily through the 
appropriations process, the 104th Congress has reversed decades 
of progress on job training, education, pensions, and worker 
protection. This is particularly alarming when American workers 
and their families are menaced by downsizing and displacement 
because of trade and technology.
    Again this year, the bill makes further cuts to important 
initiatives for America's 93 million working men and women in 6 
million workplaces across the country. These programs promote 
workplace health and safety, ensure pension security, and 
ensure that employees have fair wages and adequate working 
conditions. The Pelosi amendment which failed in subcommittee 
would have added $462 million for key programs that assist 
workers including OSHA, NLRB, Pension Benefits Welfare 
Administration, Employment Standards Administration, Mine 
Safety and Health Administration, and the Dislocated Worker 
Assistance program.
    The House bill cuts worker protection programs by 13 
percent below the President's request and 9 percent below what 
is needed to simply maintain last year's level of operation. 
These cuts mean fewer inspections, less compliance assistance 
services for smaller employers, and reduced public education. 
The cuts eliminate increased funding requested by the President 
for initiatives in the area of workplace health and safety, 
pension protection, and immigration reform.

                           Health and Safety

    Each day, some 6,000 American workers are injured on the 
job, costing American businesses approximately $12 billion each 
year. Without the Occupational Safety and Health Administration 
(OSHA), the toll would be worse. Since the agency's inception, 
workplace fatalities have declined by 57 percent.
    The funding in the bill for OSHA is $43 million, or 13 
percent, below the President's request. Thus, ongoing 
activities will need to be cut back further and the ``New 
OSHA'' initiative, focused on developing partnerships through 
small business assistance, will not be funded. OSHA's efforts 
to rewrite confusing and duplicative regulations in plain 
English has been cut by 55 percent. Cuts that will only result 
in increased workplace accidents and fatalities will cost our 
society.
    Mining is a $54 billion industry involving 350,000 miners 
and remains one of the most hazardous industries in America. 
Largely because of the Mine Safety and Health Administration 
(MSHA) enforcement efforts, coal miners are five times less 
likely to be killed on the job than they were in 1969. The cut 
of 6 percent below the President's request for MSHA will mean 
no funds to acquire new mine safety equipment.
    In addition, the bill includes a rider prohibiting OSHA 
from developing or issuing regulations on work related 
repetitive motion injuries (Ergonomics). This extreme 
ergonomics rider even prohibits voluntary guidelines requested 
by many concerned businesses and would even prohibit the 
collection of data on the frequency of such injuries.
    OSHA estimates that 2.7 million workers will file worker's 
compensation claims for repetitive motion injuries, costing 
American employers more than $20 billion in direct costs. 
Nonetheless, OSHA would be prohibited from even answering 
questions about ways of preventing the fastest growing health 
problem in the American workplace.

                                Pensions

    Pension protection funding through the Pension and Welfare 
Benefits Administration (PWBA) has been cut 6 percent below 
current services and $20 million, or 22 percent, below the 
President's request. As a result, reductions will be made in 
the number of investigations undertaken as well as public 
information and assistance activities. No funds are provided 
for three of the Administration's priority pension protection 
initiatives--pension education and participant assistance, the 
electronic filing initiative, and the 401(k) enforcement 
initiative.
    Over the last several years, American workers have become 
increasingly concerned about the security of their pension 
plans. Democrats have introduced several bills to improve 
pension security, including legislation to better protect 
participants in defined benefit and 401(k) plans from fraud and 
abuse, and increase security for workers in multiemployer 
plans. The Republican Leadership has yet to advance this 
important legislation.
    Instead, last year's budget reconciliation bill turned back 
the clock on protection of pension plans. The bill, which was 
vetoed by President Clinton, would have eased the pension rules 
so that companies would be able to remove ``surplus'' funds 
from pension plans. This provision would have threatened the 
security of pensions for nearly 4 million workers and retirees 
in 6,000 pension plans.

                          Employment Standards

    The Employment Standards Administration (ESA) makes sure 
that ordinary Americans get a fair shake at the workplace. The 
enforcement of child labor laws, fair wage laws, and fair hour 
laws are critical to American workers. Non-union workers 
especially depend on these basic protections. Employers who 
play by the rules also need this protection from unfair 
competition from those who do not meet their responsibilities.
    Funding for ESA is cut by $47 million, or 6 percent, below 
current services and is 15 percent below the President's 
request. As a result, reductions will have to be made in 
efforts to eradicate garment sweatshops and protect worker's 
newly won family and medical leave. The President's 
initiatives, including efforts to curb illegal immigration 
through stronger workplace enforcement, will not be funded.

                         Collective Bargaining

    The National Labor Relation Board (NLRB) receives, 
investigates and prosecutes charges of unfair labor practices 
filed by businesses, labor unions, and individuals. It also 
schedules and conducts representation elections. It is most 
effective when it can act quickly. The House bill proposes to 
cut the funding of the NLRB by 15 percent below last year's 
level and $36 million, or 20 percent, below the President's 
request. This cut handcuffs the Board's ability to enforce 
existing laws which protect employers and safeguard employee's 
rights to organize. This cut will require staffing reductions 
and office closings that will severly limit service to the 
public by producing lengthy delays in investigations, trials 
and elections. This agency has already downsized its staff by 
one-third since 1980, and each employee must handle 30% more 
cases than in 1985. At the beginning of this year, the number 
of backlogged cases was 32 percent higher than a year earlier, 
and 80 percent higher than five years ago. Under the funding 
levels proposed in this bill, the backlog of unfair labor 
practice cases is expected to triple.
    In addition, the House bill includes a legislative rider 
prohibiting the NLRB from moving forward with a proposed rule 
that reaffirms in clear language the board's criteria for 
representation by single location bargaining units. This role 
would allow lay people, with or without lawyers, to avoid 
wasteful litigation. (determining the appropriateness for 
representation by single location bargaining units.) The 
proposed rule would allow NLRB to better utilize limited 
resources in processing representation cases. By allowing the 
Board to conduct these representation cases sooner, it would 
remove distractions in the workplace that result from 
protracted organizing campaigns. Ultimately, the rule would 
save taxpayers, employers and individuals countless dollars in 
unnecessary legal fees. The rider is an example of political 
interference with the Board's authority.
    Continuing the assault on the NLRB, the subcommittee added 
a second legislative rider raising the dollar amount of the 
jurisdictional thresholds of the NLRB. The possible effect of 
the rider is to limit the jurisdiction of the Board over 
smaller employers. This leaves both employers and employees in 
a ``no man's land'' situation without a set of rules to govern 
their interaction on labor-management issues.

                           Dislocated Workers

    Training in job-related skills is the best way to ensure a 
rising standard of living for ordinary American workers and 
their families. Over 2.5 million American workers lose their 
jobs each year due to global competition, corporate downsizing, 
base closures, and technological changes.
    The House bill funds the Dislocated Worker program at $193 
million less than the President's request, resulting in 81,000 
fewer laid off workers being served.
    The Dislocated Worker program works--70 percent of 
participants are employed after the program at comparable 
wages. In California, where defense-related layoffs are 
continuing, the Federal government has invested nearly $54 
million in dislocated worker assistance. The funding level 
sought by the President would have returned the program to the 
1995 funding level.
    American workers are the engine of our economy. They 
deserve to be treated with dignity and respect. They also 
deserve a safe workplace. Despite our budget challenges, we 
should not retreat on worker protection. This is the wrong 
place and the wrong time to cut back. American workers and 
their families deserve better.


          Different National Priorities to Balance the Budget

    More than any other appropriations bill, the 1997 Labor HHS 
bill highlights the fundamental differences between the 
priorities of the Minority and the Minority in the competing 
plans to balance the budget while addressing the needs of the 
country. This bill is critically short of resources necessary 
to educate children and college students, provide health and 
social services to vulnerable individuals, train workers and 
ensure workplace safety. Meanwhile, the Majority has provided 
funding for the military that is $11 billion more than the 
Pentagon's request, and totals more than all of our potential 
adversaries combined. While shortchanging workers and families, 
the Majority wastes literally billions of dollars on programs 
such as forcing the Navy to build a new prototype model for the 
new attack submarine; forcing the Air Force to spend $336 
million for C-130 aircraft that it doesn't need; forcing the 
Army and Marine Corps to spend millions on unneeded and 
unwanted ammunition; and a host of other add-ons that are 
little more than hometown jobs programs for a few favored 
Members.
    The Minority fundamentally disagrees with the Majority on 
the funding priorities for the nation and opposes the passage 
of the 1997 appropriations bill for the Departments of Labor, 
HHS and Education.

   Statement of Administration Policy and Impact on Individual States

     The following attachments include the Statement of 
Administration Policy and tables which display the state impact 
of the recommended funding levels for several selected programs 
in the bill compared to the President's budget request. These 
estimates were provided by the Federal agencies which 
administer the programs.

                 Executive Office of the President,
                           Office of Management and Budget,
                                     Washington, DC, June 19, 1996.
Hon. David R. Obey,
Committee on Appropriations, House of Representatives, Washington, DC.
    Dear Congressman Obey: This letter provides the 
Administration's views on the Departments of Labor, Health and 
Human Services, Education, and Related Agencies Appropriations 
Bill, FY 1997, as reported by the Subcommittee. As the 
Committee develops its version of the bill, your consideration 
of the Administration's views would be appreciated.
    The Administration has previously communicated its strong 
objection to the overall inadequate discretionary funding level 
assumed in the House- and Senate-passed Budget Resolutions. The 
Subcommittee bill would reduce discretionary budget authority 
by over $5 billion from the President's request, which we 
believe is the level that is necessary to address the Nation's 
needs adequately.
    The President strongly believes that we must invest in our 
country's future by supporting education and training to 
promote long-term economic growth, and to give average 
Americans the skills they need to get high-wage jobs, and, 
thus, raise living standards both now and in the future. Many 
of the programs funded in this bill would help us do just that. 
In addition, many others are aimed at protecting and aiding the 
most vulnerable individuals in our society. Reductions proposed 
by the Subcommittee would have a particularly harmful effect by 
withholding necessary services for children, youth, and the 
disadvantaged, and by underfunding worker protection.
    For these reasons, discussed more fully below, the 
President's senior advisers would recommend that he veto the 
bill if it were presented to him in its current form.

Pre-school children

    The Head Start program plays a vital role in preparing 
disadvantaged young children for school; its expansion should 
be continued, not reversed as in the Subcommittee bill. The 
President would add $412 million and 50,000 new slots to the 
Head Start program in FY 1997. The Subcommittee's action could 
reduce slots by up to 15,000 compared to FY 1996--assuming that 
quality is to be maintained--clearly a move in the wrong 
direction.

Education and training

    The Administration is committed to investing in education 
and training programs that help average Americans build a 
better future for themselves and their families. More than ever 
before in our Nation's history, what you earn depends on what 
you learn. The Subcommittee has systematically targeted those 
key programs designed to help our youth for the most 
debilitating cuts.
    The Subcommittee's ill-advised decision to terminate 
funding for Goals 2000 would set back State-based efforts to 
improve learning for all students and to build a more 
competitive workforce. The Subcommittee provides none of the 
funding that the Administration has requested for its education 
technology initiatives, including $250 million for the 
Technology Literacy Challenge Fund, to begin to provide 
essential stimulus to States to make every child computer 
literate by the dawn of the 21st century.
    The Subcommittee would eliminate aid for hundreds of 
thousands of children in schools across the country, and would 
substantially reduce aid for college by funding below the 
President's request: Education for the Disadvantaged, Safe and 
Drug Free Schools and Communities, Pell Grants, Perkins Loans, 
Charter Schools, Bilingual Education, School-to-Work, and other 
programs. In addition, the Subcommittee bill would eliminate 
funding for the Eisenhower Professional Development Program, a 
key teacher training resources. The Subcommittee's recommended 
funding levels would have a severe negative impact on our 
Nation's future.
    The Subcommittee bill would reduce mandatory spending for 
the administration of student loan programs from $595 million 
to $420 million. This would make it impossible for the 
Department of Education to ensure program integrity in all 
student loan programs and would effectively cap the volume of 
direct lending. The Administration continues to oppose any cap 
on direct lending as we did in the FY 1996 appropriations bill.
    The Administration strongly opposes the Subcommittee's 
proposal to cut summer jobs for youth by $246 million, or 28 
percent, below the President's request. This action would 
eliminate jobs for 134,000 disadvantaged youth. In addition, 
the Administration opposes the Subcommittee's decision not to 
provide the $250 million requested for the Youth Opportunities 
Areas initiative for at-risk youth, started under current law 
this year.
    The Subcommittee bill would reduce, by $290 million, or 13 
percent, requested funding to retrain dislocated workers and 
low-income adults and help them find jobs through One-Stop 
Career Centers. This would deny training and reemployment 
services to about 81,000 dislocated workers and 34,000 low-
income adults.

Protecting workers

    The Subcommittee bill reduces by $36 million, or 20 
percent, the President's request for the National Labor 
Relations Board and reduces by $121 million, or 13 percent, the 
President's request for Labor Department worker protection 
programs. As a result, there would be fewer workplace 
inspections, reduced aid to small businesses, and no funding 
for the President's initiatives to ensure pension protection, 
reform immigration enforcement, and improve workplace safety 
and health. In addition, language riders in the bill would 
inappropriately restrict the ability of enforcement agencies to 
safeguard child safety, protect workers from ergonomic hazards, 
and enforce the National Labor Relations Act. The 
Administration is also concerned that the Subcommittee bill 
does not fund the National Institute for Occupational Safety 
and Health or the former Bureau of Mines activities transferred 
to the Centers for Disease Control at the level in the 
President's request.

Protecting health and safety

    The Subcommittee bill would provide $812 million for Ryan 
White AIDS Treatment Grants, $18 million (two percent) below 
the comparable FY 1997 request, adjusted for the Ryan White 
CARE Act amendments of 1996. While the Administration is 
encouraged that the Subcommittee has increased funding above 
the President's request specifically for Title II State AIDS 
Drug Assistance Program activities, we are concerned that other 
activities in Title II receive $17 million less than the level 
requested by the President. The Administration is also 
concerned that funding provided below the request for some 
other Titles in the Ryan White CARE Act is not sufficient to 
keep up with increasing case loads in the 49 cities currently 
receiving Title I assistance and the 150 local clinics that 
provide Title III(b) early intervention services to those with 
or at-risk of developing HIV.
    The Administration is also concerned that the Subcommittee 
bill does not appropriate a specific amount for AIDS research 
through a single appropriation for the National Institutes of 
Health's (NIH's) Office of AIDS Research as requested in the 
President's budget. The single appropriation helps NIH target 
NIH research funds effectively, minimizing duplication and 
inefficiencies across the 21 institutes and centers that carry 
out HIV/AIDS research.
    The Subcommittee has reduced funding for the Substance 
Abuse and Mental Health Services Administration (SAMHSA) by 
$251 million (12 percent) below the President's request. SAMHSA 
supports vital substance abuse and mental health services to 
many underserved Americans, such as pregnant women and high-
risk youth. The Subcommittee's funding level would undermine 
the anti-drug abuse strategy developed by General McCaffrey, 
Director of the Office of National Drug Control Policy.
    The Administration is disappointed that the Subcommittee 
has not funded several important programs of the Centers for 
Disease Control, including polio eradication and the HIV 
prevention program, at the President's request.
    The Administration is concerned that the Subcommittee has 
not provided the full funding requested for the essential 
Violence Against Women programs.

Combating health care fraud and abuse

    The Subcommittee mark does not include any discretionary 
appropriations for Health Care Financing Administration (HCFA) 
and HHS Office of Inspector General (HHS IG) Medicare anti-
fraud activities, which totaled roughly $440 million in FY 
1996. Rather, the Subcommittee mark assumes enactment of H.R. 
3103 (health insurance reform), which would provide 
approximately $500 million in mandatory funding for Medicare 
anti-fraud and abuse activities at HCFA and the HHS IG. If HR 
3101 is not enacted, approximately $440 million in additional 
discretionary appropriations would need to be identified to 
continue HCFA and HHS IG activities in this important area.
    The Subcommittee mark provides $158 million for Medicare 
survey and certification activities, $15.8 million below the 
President's request of $173.8 million. The President's request 
is necessary to make timely responses to beneficiary complaints 
and to continue reducing survey backlogs for facilities other 
than home health agencies.
    Additional Administration concerns with the Subcommittee 
bill are contained in the enclosure. We look forward to working 
with the Committee to address our mutual concerns.
            Sincerely,
                                     Jacob J. Lew, Acting Director.
    Enclosure.

 Additional Concerns, Departments of Labor, Health and Human Services, 
   Education, and Related Agencies Appropriations Bill, FY 1997--(As 
                  Reported by the House Subcommittee)

    The Administration looks forward to working with the 
Congress to address the following concerns.

                          department of labor

    Youth Opportunity Areas. The Subcommittee bill does not 
provide $250 million for the President's initiative for out-of-
school youth now underway under current law. The initiative 
would provide approximately $14 million a year to each of 15-20 
high poverty urban and rural areas to increase dramatically 
employment of out-of-school youth.
    Dislocated Workers. The Subcommittee bill funds dislocated 
worker assistance at $1.1 billion, $193 million below the 
President's request. This would reduce participation by about 
81,000 relative to the President's proposal. The Administration 
strongly opposes language to permit unlimited transfers of 
funds between dislocated worker and adult training programs.
    Senior Community Service Employment Program. The 
Subcommittee reduces the share of funds for the national 
contractors (e.g. AARP, NCSC, Green Thumb) by almost 15 
percent. These contractors would be unable to provide about 
8,000 job opportunities for disadvantaged senior citizens in 
communities throughout the Nation.
    Veterans Employment and Training. The Subcommittee reduces 
funding for State grants by eight percent below the President's 
request, and two percent below the FY 1996 enacted level. This 
action would result in about 28,000 fewer veterans being placed 
in jobs.
    OSHA Ergonomic Protection Regulation. The Administration 
strongly objects to the Subcommittee's attempt to prohibit OSHA 
from developing or issuing any proposed or final ergonomic 
protection standard or voluntary guidelines, and performing 
related record-keeping. Workers' compensation claims will be 
filed by 2.7 million workers for these repetitive motion 
injuries and illnesses this year, costing American employers 
more than $20 billion in direct costs alone.
    DOL Chief Financial Officer (CFO). The bill includes 
language that inappropriately attempts to intervene in the 
internal organization of the Department of Labor. The 
Department is working closely with the Office of Management and 
Budget to finalize its CFO structure and should not be impeded 
by bill language.
    One-Stop Career Centers. Funding for this initiative is $40 
million below the President's request. As a result, nine States 
would not be able to receive grants to implement the centers, 
which are key to adult training and services reform now, and 
which are included in the House-passed CAREERS Act.
    Employment Service. The Subcommittee cuts $76 million from 
the President's request, to a level that is nine percent below 
the request and six percent below FY 1996. The Employment 
Service makes a key contribution to a consolidated training and 
reemployment system by providing up-front information and job 
matching services to all applicants.
    Unemployment Insurance Administration. The Subcommittee 
cuts this program $131 million below the President's request. 
The requested level reflects the amount necessary to process 
the projected workload for unemployment benefits and tax 
collections.
    Appropriations Language Affecting Employee Benefit 
Programs. The Administration urges restoration of the 
appropriations language included in the President's budget, 
which would: (1) guarantee speedy provision of employee pension 
benefits in the event of unexpected plan terminations; and, (2) 
cure accounting problems in the Black Lung Disability Trust 
Fund.
    Child Labor Regulations. The Subcommittee bill includes 
riders limiting the Department of Labor's ability to implement 
and enforce regulations for minors' use of paper balers and 
motor vehicles. This action could result in a higher likelihood 
of injury and death to minors working in these areas.

                Department of Health and Human Services

    Family Planning. The Administration is concerned that the 
Chairman's mark of $193 million for Title X Family Planning 
grants is $5 million below the request of $198 million. The 
increase proposed in the FY 1997 Budget would allow an 
additional 20,000 individuals to receive family planning 
services over FY 1996.
    Violence Against Women Act (VAWA) Programs. The 
Subcommittee bill fails to fully fund VAWA programs in both the 
Administration for Children and Families (ACF) and the Centers 
for Disease Control (CDC). The $60 million provided for ACF is 
$8 million less than requested and authorized, and underfunds 
the Reduction of Sexual Abuse of Runaway and Homeless Youth 
program. The $34 million provided by the Subcommittee for CDC's 
VAWA programs is $7.4 million less than the FY 1997 
authorization and amended request. Furthermore, there is no 
funding for the $30 million teen pregnancy prevention 
initiative. Finally, the bill provides $950 million for the 
child care development block grant, $99 million below the 
Administration's request of $1,049 million.
    Substance Abuse and Mental Health Services Administration 
(SAMHSA). The Subcommittee's $88 million (seven-percent) 
reduction to the President's request for Substance Abuse 
Performance Partnership grants would reduce the funding 
available to States to combat drug abuse among America's youth. 
The Subcommittee's combined $181 million (44-percent) reduction 
to the President's requests for SAMHSA Knowledge Development 
and Application programs is also troubling and could impair 
progress in research and dissemination of important new ways to 
treat and prevent substance abuse and to help those with mental 
health disorders.
    Centers for Disease Control (CDC). The Administration is 
concerned that the Subcommittee has not provided the funding 
level requested in the President's budget for several important 
programs in CDC. The $20 million increase requested for polio 
eradication is necessary to take advantage of a historic 
opportunity to protect all future generations of our Nation's 
children from this disease without hurting our domestic 
immunization efforts. The Administration is also concerned that 
the Subcommittee has provided less than half of the $32 million 
increase requested for CDC's HIV prevention program.
    Mine Safety. The Administration is concerned that the 
Subcommittee has not provided any of the $32 million requested 
for the mine safety and health functions transferred from the 
Department of the Interior to the Centers for Disease Control 
(CDC).
    Infectious Disease. While the Administration is pleased 
that the Subcommittee has provided a $20 million increase for 
CDC's infectious disease activity, the Subcommittee mark falls 
$6 million short of the $88 million level requested in the 
President's budget necessary to expand the Nation's defenses 
against drug-resistant bacteria, emerging infections, and other 
dangerous pathogens.
    Other Administration for Children and Families (ACF) and 
Administration on Aging (AoA) Programs. The Subcommittee 
proposes significant reductions below the President's request 
for ACF Services programs. The bill does not fully fund the 
child welfare innovation program ($39 million requested); 
eliminates funding for community-based resource centers ($51 
million requested); and reduces funding for developmental 
disabilities (by $13 million).
    In addition, the Subcommittee provides no funding for 
community schools within the violent crime reduction programs 
($14 million requested), cuts AoA programs (by $18 million), 
and research grants for both ACF and the Administration on 
Aging are eliminated ($22 million requested). The $142 million 
in funding added above the requested level of $390 million for 
the Community Services Block Grant (CSBG) would be better used 
for higher priority programs such as Head Start or Violence 
Against Women Act programs.
    Medicare Survey and Certification Activities. The 
Subcommittee mark provides $15.8 million below the President's 
request for survey and certification activities. The 
President's request is necessary to make timely responses to 
beneficiary complaints, including allegations of patient 
dumping and abuse, and to continue reducing survey backlogs for 
facilities other than home health agencies. The Subcommittee 
report assumes that additional resources will be made available 
through legislative changes enacted in PL 104-134. The 
Administration does not believe that these additional resources 
would make up the difference between the Subcommittee mark and 
the President's request.
    Office for Civil Rights (OCR). The Subcommittee bill cuts 
OCR funding by $2.4 million (11 percent) below the request. 
This reduction in FY 1997 would exacerbate the backlog of 
discrimination cases resulting from the FY 1996 funding cut and 
could lead to a curtailment of compliance activities. The 
Administration urges that OCR funding be restored to the level 
requested in the FY 1997 Budget.
    Agency for Health Care Policy and Research (AHCPR). The 
Administration is concerned that the Subcommittee includes a 
program level that is $19 million less than was requested in 
the President's budget.
    Anti-Terrorism. The Subcommittee fails to provide the 
requested $5 million in funding for anti-terrorism activities. 
This action would delay HHS' ability to carry out its national 
anti-terrorism program planned for FY 1997.
    National Institutes of Health (NIH)--Clinical Research 
Center. The Subcommittee would appropriate funding for the 
Clinical Research Center incrementally instead of fully funding 
the $310 million request. The Administration supports full-
funding of fixed assets.

                        department of education

    Pell Grants. The maximum award level is increased slightly, 
by $30, in the Subcommittee bill but is still $200 below the 
President's proposal of $2,700. Under the President's proposal, 
107,000 more students would be served than under the 
Subcommittee bill.
    Safe and Drug-Free Schools and Communities. This program is 
reduced by $25 million below FY 1996, eliminating funds for 
national programs and reducing State grants $74 million below 
the President's request. These cuts put millions of children 
and teachers at an increased risk of violence in their schools.
    Educational Technology. The Subcommittee has cut the 
education technology program by $277 million below the 
President's request, providing no funding for the President's 
Technology Literary Challenge Fund initiative to help all 
States leverage the resources necessary to integrate technology 
into their school curriculum.
    Charter Schools. The Subcommittee has failed to provide any 
increase above the FY 1996 enacted level, leaving funding at 
$22 million, or 55 percent, below the President's request. At 
the Subcommittee level, 300 fewer Charter Schools could receive 
start-up funds than under the President's proposal.
    Title I. The Education for the Disadvantaged program is 
funded at $475 million below the President's request, 
eliminating almost 450,000 children from the poorest 
communities from being served.
    Special Education. The Subcommittee provides $307 million 
below the President's request. At this diminished level, States 
would have to serve about 170,000 more children with 
disabilities in FY 1997 without additional Federal funding.
    School-to-Work. Funding for this program is frozen at the 
FY 1996 level, $50 million below the President's request. Along 
with the comparable level in the Labor Department, this funding 
level would prevent the remaining 10-12 States from receiving 
implementation grants.
    Perkins Loans. The Subcommittee bill terminates new funding 
for the Perkins Loans program, compared to the Administration's 
request for a $65 million increase, thereby eliminating aid to 
151,000 students
    Eisenhower Professional Development. The Subcommittee bill 
terminates funding for this program and folds it into the 
Innovative Education Programs Strategies block grant. The 
President requests $410 million for this program, to help 
teachers in every State improve their skills.
    Comprehensive Regional Technical Assistance Centers. The 
Subcommittee bill funds these Centers at $22 million, $23 
million, or 51 percent, below the President's request. The 
Centers help schools and school districts in every State 
implement comprehensive reforms and improve teaching and 
learning.
    Billingual and Immigrant Education. The Subcommittee funds 
Bilingual Education at $117 million, $39 million below the 
President's request, zeroing out funding for professional 
development and support services. The bill funds Immigrant 
Education $50 million below the request of $100 million. At 
this level, the Federal government would provide only $61 for 
each of the 822,000 students. The President's request would 
double the per-pupil amount to $122.

                       other independent agencies

    Social Security Administration (SSA)--Administrative 
Expenses. The Subcommittee bill unnecessarily increases 
budgetary resources related to SSA administrative expenses 
subject to the current discretionary caps by $100 million above 
the President's request.
    While increasing the President's request by $100 million, 
the Subcommittee has increased the amount allocated to the Old 
Age Survivors and Disability Insurance (OASDI) trust funds by 
$258 million and reduced the amounts allocated to the 
Supplementary Security Income (SSI) appropriation and the 
Hospital Insurance/Supplementary Medical Insurance trust funds 
by $158 million. By not distributing the increase based on 
workload estimates across all funding sources, the Subcommittee 
action has the effect of reducing budget authority at the same 
time that it increases spending. The Administration strongly 
objects to this scorekeeping gimmick to mask new spending. Only 
by making estimates consistent with SSA's cost analysis system 
can there be assurance that the OASDI trust funds and the 
general fund bear their fair shares of the administrative costs 
of SSA's programs. The Administration's scoring of the 
appropriations bill will reflect the appropriate allocation of 
these funds.
    National Labor Relations Board (NLRB). The Subcommittee 
bill reduces funding for NLRB by $26 million, or about 15 
percent, below FY 1996 and $36 million below the President's 
request. The Subcommittee would continue a rider from the FY 
1996 omnibus appropriations bill prohibiting the NLRB from 
promulgating a proposed rule and single-unit bargaining 
locations. This rider will preclude agency efforts to use its 
rulemaking authority in an effort to reduce time-consuming and 
costly litigation. The Subcommittee also includes a limitation 
that would require NLRB to index to inflation the 1959 
jurisdictional thresholds that set the level of interstate 
commerce (by industry) used to determine coverage under the 
National Labor Relations Act. While there is no empirical 
evidence to demonstrate that a change in jurisdictional 
thresholds will increase or decrease NLRB's caseload, this 
change is an improper justification for the 15-percent 
reduction.
    Corporation for National and Community Service. The 
Subcommittee has reduced the funds provided for national 
service under this appropriation by $24 million, almost 11 
percent below the President's budget. This would deny over 800 
AmeriCorps*VISTA participnts the opportunity to serve their 
communities and earn an education award. In addition, almost 
80,000 senior citizens would lose the opportunity to serve the 
frail elderly, and disadvantaged/disabled young people in their 
communities through the National Senior Service Corps programs, 
Retired and Senior Volunteer Program, Foster Grandparent 
Program, and Senior Companion Program.
    Corporation for Public Broadcasting (CPB). The 
Administration is concerned with the sharp Subcommittee's 
reduction in funding for CPB. The Administration is committed 
to providing the necessary resources for quality public 
television programming and production.
    Railroad Retirement Board (RRB). The Subcommittee bill 
includes language prohibiting the Inspector General from using 
funds for any audit, investigation, or review of the Medicare 
program. RRB has statutory authority to administer a separate 
contract for RRB Part B Medicare claims. The Administration 
believes that this language should be deleted. As long as RRB 
has authority to negotiate and administer a separate Medicare 
contract, the RRB Inspector General ought not to be prohibited 
from using funds to review, audit, or investigate activity 
related to that contract.
    Armed Forces Retirement Home. The Subcommittee bill would 
reduce funding by more than five percent for the U.S. Soldiers' 
and Airmen's Home in Washington, D.C., and the Navy Home in 
Gulfport, Mississippi. A reduction-in-force and other severe 
reductions in operating costs would be required to absorb this 
significant funding reduction.

                                 alaska

    Lost $13,724,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut       Alaska cut   
------------------------------------------------------------------------
Adult Training....................        $97,000,000           $293,000
Summer Youth......................        246,000,000            733,000
Dislocated Workers Assistance.....        193,000,000            536,000
Child Care Block Grants...........         98,825,000            198,000
Social Services Block Grants......        320,000,000            741,000
Head Start........................        381,028,000            718,000
Goals 2000........................        476,652,000          2,016,000
Title I ESEA LEA Grants...........        434,652,000          1,014,000
Safe and Drug-Free Schools........         74,022,000            362,000
Teacher Training..................        610,000,000          3,015,000
Immigrant Education...............         50,000,000                  0
Special Education.................        279,410,000            758,000
Vocational Education..............         27,250,000            221,000
Adult Education...................         40,000,000             55,000
Technology Literacy...............        250,000,000          1,250,000
------------------------------------------------------------------------

                                alabama

    Lost $57,400,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut       Alabama cut  
------------------------------------------------------------------------
Adult Training....................        $97,000,000         $1,560,000
Summer Youth......................        246,000,000          3,880,000
Dislocated Workers Assistance.....        193,000,000          2,258,000
Child Care Block Grants...........         98,825,000          2,089,000
Social Services Block Grants......        320,000,000          5,157,000
Head Start........................        381,028,000          5,555,000
Goals 2000........................        476,652,000          7,896,000
Title I ESEA LEA Grants...........        434,652,000          6,775,000
Safe and Drug-Free Schools........         74,022,000          1,196,000
Teacher Training..................        610,000,000         10,079,000
Immigrant Education...............         50,000,000                  0
Special Education.................        279,410,000          4,191,000
Vocational Education..............         27,250,000            600,000
Adult Education...................         40,000,000            870,000
Technology Literacy...............        250,000,000          4,453,000
------------------------------------------------------------------------

                                arkansas

    Lost $34,078,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut      Arkansas cut  
------------------------------------------------------------------------
Adult Training....................        $97,000,000           $800,000
Summer Youth......................        246,000,000          1,958,000
Dislocated Workers Assistance.....        193,000,000            900,000
Child Care Block Grants...........         98,825,000          1,167,000
Social Services Block Grants......        320,000,000          2,998,000
Head Start........................        381,028,000          3,390,000
Goals 2000........................        476,652,000          4,800,000
Title I ESEA LEA Grants...........        434,652,000          4,744,000
Safe and Drug-Free Schools........         74,022,000            717,000
Teacher Training..................        610,000,000          6,045,000
Immigrant Education...............         50,000,000                  0
Special Education.................        279,410,000          2,498,000
Vocational Education..............         27,250,000            352,000
Adult Education...................         40,000,000            509,000
Technology Literacy...............        250,000,000          2,662,000
------------------------------------------------------------------------

                             American Samoa

    Lost $2,174,012 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut        Samoa cut   
------------------------------------------------------------------------
Adult Training....................        $97,000,000            $18,000
Summer Youth......................        246,000,000             19,000
Dislocated Workers Assistance.....        193,000,000             29,000
Child Care Block Grants...........         98,825,000                  0
Social Services Block Grants......        320,000,000                 12
Head Start........................        381,028,000                  0
Goals 2000........................        476,652,000            248,000
Title I ESEA LEA Grants...........        434,652,000            462,000
Safe and Drug-Free Schools........         74,022,000            127,000
Teacher Training..................        610,000,000            523,000
Immigrant Education...............         50,000,000             94,000
Special Education.................        279,410,000            297,000
Vocational Education..............         27,250,000                  0
Adult Education...................         40,000,000             11,000
Technology Literacy...............        250,000,000            301,000
------------------------------------------------------------------------

                                Arizona

    Lost $48,742,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut      Arizona cut   
------------------------------------------------------------------------
Adult Training....................        $97,000,000          $1,572000
Summer Youth......................        246,000,000          4,004,000
Dislocated Workers Assistance.....        193,000,000          2,082,000
Child Care Block Grants...........         98,825,000          1,784,000
Social Services Block Grants......        320,000,000          4,981,000
Head Start........................        381,028,000          5,937,000
Goals 2000........................        476,652,000          7,221,000
Title I ESEA LEA Grants...........        434,652,000          8,399,000
Safe and Drug-Free Schools........         74,022,000          1,068,000
Teacher Training..................        610,000,000          9,005,000
Immigrant Education...............         50,000,000          1,504,000
Special Education.................        279,410,000          4,440,000
Vocational Education..............         27,250,000            516,000
Adult Education...................         40,000,000            554,000
Technology Literacy...............        250,000,000          3,492,000
------------------------------------------------------------------------

                               California

    Lost $480,104,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut     California cut 
------------------------------------------------------------------------
Adult Training....................        $97,000,000        $17,090,000
Summer Youth......................        246,000,000         43,746,000
Dislocated Workers Assistance.....        193,000,000         34,039,000
Child Care Block Grants...........         98,825,000         11,272,000
Social Services Block Grants......        320,000,000         38,418,000
Head Start........................        381,028,000         48,569,000
Goals 2000........................        476,652,000         54,799,000
Title I ESEA LEA Grants...........        434,652,000         66,438,000
Safe and Drug-Free Schools........         74,022,000          7,948,000
Teacher Training..................        610,000,000         66,498,000
Immigrant Education...............         50,000,000         14,367,000
Special Education.................        279,410,000         33,344,000
Vocational Education..............         27,250,000          3,302,000
Adult Education...................         40,000,000          4,997,000
Technology Literacy...............        250,000,000         25,848,000
------------------------------------------------------------------------

                                COLORADO

    Lost $37,396,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut      Colorado cut  
------------------------------------------------------------------------
Adult Training....................        $97,000,000           $822,000
Summer Youth......................        246,000,000          2,038,000
Dislocated Workers Assistance.....        193,000,000            864,000
Child Care Block Grants...........         98,825,000          1,086,000
Social Services Block Grants......        320,000,000          4,469,000
Head Start........................        381,028,000          3,617,000
Goals 2000........................        476,652,000          5,585,000
Title I ESEA LEA Grants...........        434,652,000          2,947,000
Safe and Drug-Free Schools........         74,022,000            857,000
Teacher Training..................        610,000,000          7,054,000
Immigrant Education...............         50,000,000            379,000
Special Education.................        279,410,000          3,871,000
Vocational Education..............         27,250,000            402,000
Adult Education...................         40,000,000            384,000
Technology Literacy...............        250,000,000          2,337,000
------------------------------------------------------------------------

                              CONNECTICUT

    Lost $30,789,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut     Connecticut cut
------------------------------------------------------------------------
Adult Training....................        $97,000,000           $841,000
Summer Youth......................        246,000,000          2,070,000
Dislocated Workers Assistance.....        193,000,000          1,850,000
Child Care Block Grants...........         98,825,000            709,000
Social Services Block Grants......        320,000,000          4,003,000
Head Start........................        381,028,000          2,927,000
Goals 2000........................        476,652,000          4,453,000
Title I ESEA LEA Grants...........        434,652,000          1,255,000
Safe and Drug-Free Schools........         74,022,000            677,000
Teacher Training..................        610,000,000          5,600,000
Immigrant Education...............         50,000,000            223,000
Special Education.................        279,410,000          3,103,000
Vocational Education..............         27,250,000            269,000
Adult Education...................         40,000,000            482,000
Technology Literacy...............        250,000,000          1,853,000
------------------------------------------------------------------------

                          DISTRICT OF COLUMBIA

    Lost $12,421,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
                                                           District of  
              Program                 Nationwide cut      Columbia cut  
------------------------------------------------------------------------
Adult Training....................        $97,000,000           $390,000
Summer Youth......................        246,000,000            959,000
Dislocated Workers Assistance.....        193,000,000            798,000
Child Care Block Grants...........         98,825,000            188,000
Social Services Block Grants......        320,000,000            697,000
Head Start........................        381,028,000          1,170,000
Goals 2000........................        476,652,000          1,895,000
Title I ESEA LEA Grants...........        434,652,000            738,000
Safe and Drug-Free Schools........         74,022,000            362,000
Teacher Training..................        610,000,000          3,015,000
Immigrant Education...............         50,000,000            193,000
Special Education.................        279,410,000            451,000
Vocational Education..............         27,250,000            148,000
Adult Education...................         40,000,000            114,000
Technology Literacy...............        250,000,000          1,250,000
------------------------------------------------------------------------

                                delaware

    Lost $11,041,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut      Delaware cut  
------------------------------------------------------------------------
Adult Training....................        $97,000,000           $242,000
Summer Youth......................        246,000,000            603,000
Dislocated Workers Assistance.....        193,000,000            216,000
Child Care Block Grants...........         98,825,000            194,000
Social Services Block Grants......        320,000,000            863,000
Head Start........................        381,028,000            604,000
Goals 2000........................        476,652,000          1,742,000
Title I ESEA LEA Grants...........        434,652,000          1,056,000
Safe and Drug-Free Schools........         74,022,000            362,000
Teacher Training..................        610,000,000          3,015,000
Immigrant Education...............         50,000,000                  0
Special Education.................        279,410,000            661,000
Vocational Education..............         27,250,000             41,000
Adult Education...................         40,000,000            101,000
Technology Literacy...............        250,000,000          1,250,000
------------------------------------------------------------------------

                                florida

    Lost $154,992,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut      Florida cut   
------------------------------------------------------------------------
Adult Training....................        $97,000,000         $4,640,000
Summer Youth......................        246,000,000         11,172,000
Dislocated Workers Assistance.....        193,000,000          7,558,000
Child Care Block Grants...........         98,825,000          4,848,000
Social Services Block Grants......        320,000,000         17,055,000
Head Start........................        381,028,000         15,780,000
Goals 2000........................        476,652,000         20,881,000
Title I ESEA LEA Grants...........        434,652,000         11,138,000
Safe and Drug-Free Schools........         74,022,000          3,140,000
Teacher Training..................        610,000,000         25,876,000
Immigrant Education...............         50,000,000          5,583,000
Special Education.................        279,410,000         10,995,000
Vocational Education..............         27,250,000          1,409,000
Adult Education...................         40,000,000          2,322,000
Technology Literacy...............        250,000,000          9,874,000
------------------------------------------------------------------------

                                georgia

    Lost $84,096,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut      Georgia cut   
------------------------------------------------------------------------
Adult Training....................        $97,000,000         $1,833,000
Summer Youth......................        246,000,000          4,646,000
Dislocated Workers Assistance.....        193,000,000          2,729,000
Child Care Block Grants...........         98,825,000          3,099,000
Social Services Block Grants......        320,000,000          8,623,000
Head Start........................        381,028,000          9,803,000
Goals 2000........................        476,652,000         12,097,000
Title I ESEA LEA Grants...........        434,652,000          6,604,000
Safe and Drug-Free Schools........         74,022,000          1,895,000
Teacher Training..................        610,000,000         15,386,000
Immigrant Education...............         50,000,000            544,000
Special Education.................        279,410,000          7,593,000
Vocational Education..............         27,250,000            898,000
Adult Education...................         40,000,000          1,248,000
Technology Literacy...............        250,000,000          5,958,000
------------------------------------------------------------------------

                                  Guam

    Lost $3,936,276 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut        Guam cut    
------------------------------------------------------------------------
Adult Training....................        $97,000,000            $52,000
Summer Youth......................        246,000,000            228,000
Dislocated Workers Assistance.....        193,000,000             82,000
Child Care Block Grants...........         98,825,000                221
Social Services Block Grants......        320,000,000                 55
Head Start........................        381,028,000                  0
Goals 2000........................        476,652,000            262,000
Title I ESEA LEA Grants...........        434,652,000            471,000
Safe and Drug-Free Schools........         74,022,000            296,000
Teacher Training..................        610,000,000          1,220,000
Immigrant Education...............         50,000,000            248,000
Special Education.................        279,410,000            718,000
Vocational Education..............         27,250,000                  0
Adult Education...................         40,000,000             21,000
Technology Literacy...............        250,000,000            293,000
------------------------------------------------------------------------

                                 HAWAII

    Lost $13,681,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut       Hawaii cut   
------------------------------------------------------------------------
Adult Training....................        $97,000,000           $419,000
Summer Youth......................        246,000,000            989,000
Dislocated Workers Assistance.....        193,000,000            595,000
Child Care Block Grants...........         98,825,000            342,000
Social Services Block Grants......        320,000,000          1,441,000
Head Start........................        381,028,000          1,112,000
Goals 2000........................        476,652,000          1,831,000
Title I ESEA LEA Grants...........        434,652,000            557,000
Safe and Drug-Free Schools........         74,022,000            362,000
Teacher Training..................        610,000,000          3,015,000
Immigrant Education...............         50,000,000            177,000
Special Education.................        279,410,000          1,079,000
Vocational Education..............         27,250,000            242,000
Adult Education...................         40,000,000            147,000
Technology Literacy...............        250,000,000          1,250,000
------------------------------------------------------------------------

                                  Iowa

    Lost $25,896,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut        Iowa cut    
------------------------------------------------------------------------
Adult Training....................        $97,000,000           $447,000
Summer Youth......................        246,000,000          1,066,000
Dislocated Workers Assistance.....        193,000,000            594,000
Child Care Block Grants...........         98,825,000            920,000
Social Services Block Grants......        320,000,000          3,458,000
Head Start........................        381,028,000          2,863,000
Goals 2000........................        476,652,000          4,261,000
Title I ESEA LEA Grants...........        434,652,000            247,000
Safe and Drug-Free Schools........         74,022,000            663,000
Teacher Training..................        610,000,000          5,458,000
Immigrant Education...............         50,000,000            139,000
Special Education.................        279,410,000          2,836,000
Vocational Education..............         27,250,000            361,000
Adult Education...................         40,000,000            380,000
Technology Literacy...............        250,000,000          1,808,000
------------------------------------------------------------------------

                                 idaho

    Lost $14,112,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut       Idaho cut    
------------------------------------------------------------------------
Adult Training....................        $97,000,000           $342,000
Summer Youth......................        246,000,000            872,000
Dislocated Workers Assistance.....        193,000,000            515,000
Child Care Block Grants...........         98,825,000            495,000
Social Services Block Grants......        320,000,000          1,385,000
Head Start........................        381,028,000          1,134,000
Goals 2000........................        476,652,000          2,073,000
Title I ESEA LEA Grants...........        434,652,000            328,000
Safe and Drug-Free Schools........         74,022,000            362,000
Teacher Training..................        610,000,000          3,015,000
Immigrant Education...............         50,000,000            211,000
Special Education.................        279,410,000          1,388,000
Vocational Education..............         27,250,000            172,000
Adult Education...................         40,000,000            141,000
Technology Literacy...............        250,000,000          1,250,000
------------------------------------------------------------------------

                                illinois

    Lost $163,848,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut      Illinois cut  
------------------------------------------------------------------------
Adult Training....................        $97,000,000         $3,726,000
Summer Youth......................        246,000,000          9,338,000
Dislocated Workers Assistance.....        193,000,000          5,861,000
Child Care Block Grants...........         98,825,000          3,661,000
Social Services Block Grants......        320,000,000         14,364,000
Head Start........................        381,028,000         15,394,000
Goals 2000........................        476,652,000         20,965,000
Title I ESEA LEA Grants...........        434,652,000         29,078,000
Safe and Drug-Free Schools........         74,022,000          3,218,000
Teacher Training..................        610,000,000         26,932,000
Immigrant Education...............         50,000,000          3,521,000
Special Education.................        279,410,000         11,588,000
Vocational Education..............         27,250,000          1,215,000
Adult Education...................         40,000,000          1,847,000
Technology Literacy...............        250,000,000         11,433,000
------------------------------------------------------------------------

                                indiana

    Lost $54,896,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut      Indiana cut   
------------------------------------------------------------------------
Adult Training....................        $97,000,000         $1,512,000
Summer Youth......................        246,000,000          3,789,000
Dislocated Workers Assistance.....        193,000,000          1,843,000
Child Care Block Grants...........         98,825,000          1,835,000
Social Services Block Grants......        320,000,000          7,031,000
Head Start........................        381,028,000          5,735,000
Goals 2000........................        476,652,000          8,734,000
Title I ESEA LEA Grants...........        434,652,000            542,000
Safe and Drug-Free Schools........         74,022,000          1,340,000
Teacher Training..................        610,000,000         11,106,000
Immigrant Education...............         50,000,000                  0
Special Education.................        279,410,000          5,059,000
Vocational Education..............         27,250,000            736,000
Adult Education...................         40,000,000            921,000
Technology Literacy...............        250,000,000          3,861,000
------------------------------------------------------------------------

                                 kansas

    Lost $26,266,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut       Kansas cut   
------------------------------------------------------------------------
Adult Training....................        $97,000,000           $525,000
Summer Youth......................        246,000,000          1,287,000
Dislocated Workers Assistance.....        193,000,000            934,000
Child Care Block Grants...........         98,825,000            875,000
Social Services Block Grants......        320,000,000          3,122,000
Head Start........................        381,028,000          2,601,000
Goals 2000........................        476,652,000          4,351,000
Title I ESEA LEA Grants...........        434,652,000            373,000
Safe and Drug-Free Schools........         74,022,000            642,000
Teacher Training..................        610,000,000          5,308,000
Immigrant Education...............         50,000,000            266,000
Special Education.................        279,410,000          2,783,000
Vocational Education..............         27,250,000            308,000
Adult Education...................         40,000,000            324,000
Technology Literacy...............        250,000,000          1,859,000
------------------------------------------------------------------------

                                Kentucky

    Lost $54,549,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut      Kentucky cut  
------------------------------------------------------------------------
Adult Training....................        $97,000,000         $1,405,000
Summer Youth......................        246,000,000          3,363,000
Dislocated Workers Assistance.....        193,000,000          1,516,000
Child Care Block Grants...........         98,825,000          1,790,000
Social Services Block Grants......        320,000,000          4,678,000
Head Start........................        381,028,000          5,804,000
Goals 2000........................        476,652,000          7,710,000
Title I ESEA LEA Grants...........        434,652,000          6,994,000
Safe and Drug-Free Schools........         74,022,000          1,152,000
Teacher Training..................        610,000,000          9,650,000
Immigrant Education...............         50,000,000                  0
Special Education.................        279,410,000          3,799,000
Vocational Education..............         27,250,000            552,000
Adult Education...................         40,000,000            830,000
Technology Literacy...............        250,000,000          4,430,000
------------------------------------------------------------------------

                               Louisiana

    Lost $88,017,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut     Louisiana cut  
------------------------------------------------------------------------
Adult Training....................        $97,000,000         $2,413,000
Summer Youth......................        246,000,000          6,059,000
Dislocated Workers Assistance.....        193,000,000          3,715,000
Child Care Block Grants...........         98,825,000          2,705,000
Social Services Block Grants......        320,000,000          5,274,000
Head Start........................        381,028,000          8,930,000
Goals 2000........................        476,652,000         10,577,000
Title I ESEA LEA Grants...........        434,652,000         18,857,000
Safe and Drug-Free Schools........         74,022,000          1,608,000
Teacher Training..................        610,000,000         13,583,000
Immigrant Education...............         50,000,000            143,000
Special Education.................        279,410,000          5,000,000
Vocational Education..............         27,250,000            649,000
Adult Education...................         40,000,000            845,000
Technology Literacy...............        250,000,000          6,737,000
------------------------------------------------------------------------

                             massachusetts

    Lost $64,025,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut   Massachusetts cut
------------------------------------------------------------------------
Adult Training....................        $97,000,000         $1,942,000
Summer Youth......................        246,000,000          4,846,000
Dislocated Workers Assistance.....        193,000,000          3,642,000
Child Care Block Grants...........         98,825,000          1,366,000
Social Services Block Grants......        320,000,000          7,384,000
Head Start........................        381,028,000          5,928,000
Goals 2000........................        476,652,000          8,846,000
Title I ESEA LEA Grants...........        434,652,000          4,001,000
Safe and Drug-Free Schools........         74,022,000          1,361,000
Teacher Training..................        610,000,000         11,240,000
Immigrant Education...............         50,000,000          1,070,000
Special Education.................        279,410,000          5,631,000
Vocational Education..............         27,250,000            824,000
Adult Education...................         40,000,000            844,000
Technology Literacy...............        250,000,000          4,284,000
------------------------------------------------------------------------

                                maryland

    Lost $49,957,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut      Maryland cut  
------------------------------------------------------------------------
Adult Training....................        $97,000,000         $1,266,000
Summer Youth......................        246,000,000          3,094,000
Dislocated Workers Assistance.....        193,000,000          2,193,000
Child Care Block Grants...........         98,825,000          1,266,000
Social Services Block Grants......        320,000,000          6,119,000
Head Start........................        381,028,000          4,334,000
Goals 2000........................        476,652,000          7,070,000
Title I ESEA LEA Grants...........        434,652,000          4,442,000
Safe and Drug-Free Schools........         74,022,000          1,101,000
Teacher Training..................        610,000,000          9,038,000
Immigrant Education...............         50,000,000            494,000
Special Education.................        279,410,000          4,698,000
Vocational Education..............         27,250,000            448,000
Adult Education...................         40,000,000            713,000
Technology Literacy...............        250,000,000          3,051,000
------------------------------------------------------------------------

                                 maine

    Lost $14,569,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut       Maine cut    
------------------------------------------------------------------------
Adult Training....................        $97,000,000           $475,000
Summer Youth......................        246,000,000          1,161,000
Dislocated Workers Assistance.....        193,000,000            917,000
Child Care Block Grants...........         98,825,000            395,000
Social Services Block Grants......        320,000,000          1,516,000
Head Start........................        381,028,000          1,295,000
Goals 2000........................        476,652,000          2,147,000
Title I ESEA LEA Grants...........        434,652,000            223,000
Safe and Drug-Free Schools........         74,022,000            362,000
Teacher Training..................        610,000,000          3,015,000
Immigrant Education...............         50,000,000             25,000
Special Education.................        279,410,000          1,134,000
Vocational Education..............         27,250,000            153,000
Adult Education...................         40,000,000            183,000
Technology Literacy...............        250,000,000          1,250,000
------------------------------------------------------------------------

                                michigan

    Lost $136,066,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut      Michigan cut  
------------------------------------------------------------------------
Adult Training....................        $97,000,000         $3,252,000
Summer Youth......................        246,000,000          8,275,000
Dislocated Workers Assistance.....        193,000,000          4,737,000
Child Care Block Grants...........         98,825,000          2,934,000
Social Services Block Grants......        320,000,000         11,607,000
Head Start........................        381,028,000         14,420,000
Goals 2000........................        476,652,000         19,081,000
Title I ESEA LEA Grants...........        434,652,000         18,358,000
Safe and Drug-Free Schools........         74,022,000          2,888,000
Teacher Training..................        610,000,000         24,140,000
Immigrant Education...............         50,000,000            365,000
Special Education.................        279,410,000         10,175,000
Vocational Education..............         27,250,000          1,104,000
Adult Education...................         40,000,000          1,479,000
Technology Literacy...............        250,000,000         10,825,000
------------------------------------------------------------------------

                               minnesota

    Lost $44,223,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut     Minnesota cut  
------------------------------------------------------------------------
Adult Training....................        $97,000,000           $915,000
Summer Youth......................        246,000,000          2,289,000
Dislocated Workers Assistance.....        193,000,000          1,085,000
Child Care Block Grants...........         98,825,000          1,365,000
Social Services Block Grants......        320,000,000          5,582,000
Head Start........................        381,028,000          4,498,000
Goals 2000........................        476,652,000          7,140,000
Title I ESEA LEA Grants...........        434,652,000          1,012,000
Safe and Drug-Free Schools........         74,022,000          1,081,000
Teacher Training..................        610,000,000          9,021,000
Immigrant Education...............         50,000,000            240,000
Special Education.................        279,410,000          4,954,000
Vocational Education..............         27,250,000            507,000
Adult Education...................         40,000,000            542,000
Technology Literacy...............        250,000,000          2,914,000
------------------------------------------------------------------------

                                missouri

    Lost $59,382,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut      Missouri cut  
------------------------------------------------------------------------
Adult Training....................        $97,000,000         $1,441,000
Summer Youth......................        246,000,000          3,547,000
Dislocated Workers Assistance.....        193,000,000          1,878,000
Child Care Block Grants...........         98,825,000          1,795,000
Social Services Block Grants......        320,000,000          6,451,000
Head Start........................        381,028,000          6,588,000
Goals 2000........................        476,652,000          8,574,000
Title I ESEA LEA Grants...........        434,652,000          5,070,000
Safe and Drug-Free Schools........         74,022,000          1,315,000
Teacher Training..................        610,000,000         10,978,000
Immigrant Education...............         50,000,000            136,000
Special Education.................        279,410,000          5,279,000
Vocational Education..............         27,250,000            634,000
Adult Education...................         40,000,000            889,000
Technology Literacy...............        250,000,000          4,076,000
------------------------------------------------------------------------

                              mississippi

    Lost $55,058,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut    Mississippi cut 
------------------------------------------------------------------------
Adult Training....................        $97,000,000         $1,155,000
Summer Youth......................        246,000,000          3,075,000
Dislocated Workers Assistance.....        193,000,000          1,667,000
Child Care Block Grants...........         98,825,000          1,780,000
Social Services Block Grants......        320,000,000          3,262,000
Head Start........................        381,028,000          5,495,000
Goals 2000........................        476,652,000          6,746,000
Title I ESEA LEA Grants...........        434,652,000         13,267,000
Safe and Drug-Free Schools........         74,022,000          1,026,000
Teacher Training..................        610,000,000          8,676,000
Immigrant Education...............         50,000,000                  0
Special Education.................        279,410,000          2,936,000
Vocational Education..............         27,250,000            415,000
Adult Education...................         40,000,000            571,000
Technology Literacy...............        250,000,000          4,424,000
------------------------------------------------------------------------

                                montana

    Lost $12,998,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut      Montana cut   
------------------------------------------------------------------------
Adult Training....................        $97,000,000           $297,000
Summer Youth......................        246,000,000            692,000
Dislocated Workers Assistance.....        193,000,000            363,000
Child Care Block Grants...........         98,825,000            325,000
Social Services Block Grants......        320,000,000          1,046,000
Head Start........................        381,028,000          1,128,000
Goals 2000........................        476,652,000          2,045,000
Title I ESEA LEA Grants...........        434,652,000            815,000
Safe and Drug-Free Schools........         74,022,000            362,000
Teacher Training..................        610,000,000          3,015,000
Immigrant Education...............         50,000,000             11,000
Special Education.................        279,410,000            833,000
Vocational Education..............         27,250,000            192,000
Adult Education...................         40,000,000            108,000
Technology Literacy...............        250,000,000          1,250,000
------------------------------------------------------------------------

                             north carolina

    Lost $70,089,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
                                                         North Carolina 
              Program                 Nationwide cut          cut       
------------------------------------------------------------------------
Adult Training....................        $97,000,000         $1,577,000
Summer Youth......................        246,000,000          3,853,000
Dislocated Workers Assistance.....        193,000,000          1,788,000
Child Care Block Grants...........         98,825,000          2,772,000
Social Services Block Grants......        320,000,000          8,642,000
Head Start........................        381,028,000          7,876,000
Goals 2000........................        476,652,000         10,327,000
Title I ESEA LEA Grants...........        434,652,000          3,175,000
Safe and Drug-Free Schools........         74,022,000          1,586,000
Teacher Training..................        610,000,000         13,114,000
Immigrant Education...............         50,000,000             16,000
Special Education.................        279,410,000          7,117,000
Vocational Education..............         27,250,000            899,000
Adult Education...................         40,000,000          1,312,000
Technology Literacy...............        250,000,000          4,620,000
------------------------------------------------------------------------

                              north dakota

    Lost $11,615,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut    North Dakota cut
------------------------------------------------------------------------
Adult Training....................        $97,000,000           $242,000
Summer Youth......................        246,000,000            603,000
Dislocated Workers Assistance.....        193,000,000            129,000
Child Care Block Grants...........         98,825,000            248,000
Social Services Block Grants......        320,000,000            780,000
Head Start........................        381,028,000            694,000
Goals 2000........................        476,652,000          1,765,000
Title I ESEA LEA Grants...........        434,652,000          1,110,000
Safe and Drug-Free Schools........         74,022,000            362,000
Teacher Training..................        610,000,000          3,015,000
Immigrant Education...............         50,000,000             21,000
Special Education.................        279,410,000            709,000
Vocational Education..............         27,250,000            292,000
Adult Education...................         40,000,000             96,000
Technology Literacy...............        250,000,000          1,250,000
------------------------------------------------------------------------

                                nebraska

    Lost $15,886,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut      Nebraska cut  
------------------------------------------------------------------------
Adult Training....................        $97,000,000           $242,000
Summer Youth......................        246,000,000            603,000
Dislocated Workers Assistance.....        193,000,000            241,000
Child Care Block Grants...........         98,825,000            556,000
Social Services Block Grants......        320,000,000          1,984,000
Head Start........................        381,028,000          1,596,000
Goals 2000........................        476,652,000          2,661,000
Title I ESEA LEA Grants...........        434,652,000            227,000
Safe and Drug-Free Schools........         74,022,000            489,000
Teacher Training..................        610,000,000          3,287,000
Immigrant Education...............         50,000,000            135,000
Special Education.................        279,410,000          1,794,000
Vocational Education..............         27,250,000            199,000
Adult Education...................         40,000,000            201,000
Technology Literacy...............        250,000,000          1,250,000
------------------------------------------------------------------------

                             new hampshire

    Lost $12,811,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
                                                          New Hampshire 
              Program                 Nationwide cut          cut       
------------------------------------------------------------------------
Adult Training....................        $97,000,000           $319,000
Summer Youth......................        246,000,000            780,000
Dislocated Workers Assistance.....        193,000,000            357,000
Child Care Block Grants...........         98,825,000            244,000
Social Services Block Grants......        320,000,000          1,390,000
Head Start........................        381,028,000            661,000
Goals 2000........................        476,652,000          1,728,000
Title I ESEA LEA Grants...........        434,652,000          1,078,000
Safe and Drug-Free Schools........         74,022,000            362,000
Teacher Training..................        610,000,000          3,015,000
Immigrant Education...............         50,000,000                  0
Special Education.................        279,410,000          1,099,000
Vocational Education..............         27,250,000            260,000
Adult Education...................         40,000,000            144,000
Technology Literacy...............        250,000,000          1,250,000
------------------------------------------------------------------------

                               new jersey

    Lost $82,570,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut     New Jersey cut 
------------------------------------------------------------------------
Adult Training....................        $97,000,000         $2,958,000
Summer Youth......................        246,000,000          7,239,000
Dislocated Workers Assistance.....        193,000,000          6,419,000
Child Care Block Grants...........         98,825,000          1,806,000
Social Services Block Grants......        320,000,000          9,661,000
Head Start........................        381,028,000          6,420,000
Goals 2000........................        476,652,000         11,131,000
Title I ESEA LEA Grants...........        434,652,000          4,375,000
Safe and Drug-Free Schools........         74,022,000          1,699,000
Teacher Training..................        610,000,000         14,146,000
Immigrant Education...............         50,000,000          1,620,000
Special Education.................        279,410,000          7,248,000
Vocational Education..............         27,250,000            667,000
Adult Education...................         40,000,000          1,254,000
Technology Literacy...............        250,000,000          4,972,000
------------------------------------------------------------------------

                               new mexico

    Lost $29,393,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut     New Mexico cut 
------------------------------------------------------------------------
Adult Training....................        $97,000,000           $664,000
Summer Youth......................        246,000,000          1,677,000
Dislocated Workers Assistance.....        193,000,000            968,000
Child Care Block Grants...........         98,825,000            917,000
Social Services Block Grants......        320,000,000          2,022,000
Head Start........................        381,028,000          3,100,000
Goals 2000........................        476,652,000          3,692,000
Title I ESEA LEA Grants...........        434,652,000          4,773,000
Safe and Drug-Free Schools........         74,022,000            560,000
Teacher Training..................        610,000,000          4,705,000
Immigrant Education...............         50,000,000            542,000
Special Education.................        279,410,000          1,881,000
Vocational Education..............         27,250,000            240,000
Adult Education...................         40,000,000            251,000
Technology Literacy...............        250,000,000          2,102,000
------------------------------------------------------------------------

                                 nevada

    Lost $15,776,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut       Nevada cut   
------------------------------------------------------------------------
Adult Training....................        $97,000,000           $524,000
Summer Youth......................        246,000,000          1,299,000
Dislocated Workers Assistance.....        193,000,000            901,000
Child Care Block Grants...........         98,825,000            386,000
Social Services Block Grants......        320,000,000          1,781,000
Head Start........................        381,028,000          1,136,000
Goals 2000........................        476,652,000          1,868,000
Title I ESEA LEA Grants...........        434,652,000            912,000
Safe and Drug-Free Schools........         74,022,000            362,000
Teacher Training..................        610,000,000          3,015,000
Immigrant Education...............         50,000,000            274,000
Special Education.................        279,410,000          1,453,000
Vocational Education..............         27,250,000            174,000
Adult Education...................         40,000,000            184,000
Technology Literacy...............        250,000,000          1,250,000
------------------------------------------------------------------------

                                New York

    Lost $296,641,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut      New York cut  
------------------------------------------------------------------------
Adult Training....................        $97,000,000         $7,266,000
Summer Youth......................        246,000,000         17,248,000
Dislocated Workers Assistance.....        193,000,000         13,540,000
Child Care Block Grants...........         98,825,000          5,614,000
Social Services Block Grants......        320,000,000         22,208,000
Head Start........................        381,028,000         25,119,000
Goals 2000........................        476,652,000         35,384,000
Title I ESEA LEA Grants...........        434,652,000         64,606,000
Safe and Drug-Free Schools........         74,022,000          5,453,000
Teacher Training..................        610,000,000         45,295,000
Immigrant Education...............         50,000,000          8,571,000
Special Education.................        279,410,000         17,753,000
Vocational Education..............         27,250,000            789,000
Adult Education...................         40,000,000          3,083,000
Technology Literacy...............        250,000,000         21,711,000
------------------------------------------------------------------------

                                  OHIO

    Lost $141,467,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut        Ohio cut    
------------------------------------------------------------------------
Adult Training....................        $97,000,000         $3,368,000
Summer Youth......................        246,000,000          8,343,000
Dislocated Workers Assistance.....        193,000,000          3,974,000
Child Care Block Grants...........         98,825,000          3,591,000
Social Services Block Grants......        320,000,000         13,570,000
Head Start........................        381,028,000         15,318,000
Goals 2000........................        476,652,000         19,845,000
Title I ESEA LEA Grants...........        434,652,000         17,933,000
Safe and Drug-Free Schools........         74,022,000          3,034,000
Teacher Training..................        610,000,000         25,431,000
Immigrant Education...............         50,000,000            113,000
Special Education.................        279,410,000         11,545,000
Vocational Education..............         27,250,000          1,337,000
Adult Education...................         40,000,000          1,796,000
Technology Literacy...............        250,000,000         10,689,000
------------------------------------------------------------------------

                                OKLAHOMA

    Lost $42,594,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut      Oklahoma cut  
------------------------------------------------------------------------
Adult Training....................        $97,000,000           $999,000
Summer Youth......................        246,000,000          2,448,000
Dislocated Workers Assistance.....        193,000,000          1,343,000
Child Care Block Grants...........         98,825,000          1,497,000
Social Services Block Grants......        320,000,000          3,982,000
Head Start........................        381,028,000          4,459,000
Goals 2000........................        476,652,000          5,822,000
Title I ESEA LEA Grants...........        434,652,000          3,480,000
Safe and Drug-Free Schools........         74,022,000            885,000
Teacher Training..................        610,000,000          7,459,000
Immigrant Education...............         50,000,000            106,000
Special Education.................        279,410,000          3,572,000
Vocational Education..............         27,250,000            458,000
Adult Education...................         40,000,000            535,000
Technology Literacy...............        250,000,000          2,970,000
------------------------------------------------------------------------

                                 oregon

    Lost $34,857,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut       Oregon cut   
------------------------------------------------------------------------
Adult Training....................        $97,000,000         $1,007,000
Summer Youth......................        246,000,000          2,483,000
Dislocated Workers Assistance.....        193,000,000          1,245,000
Child Care Block Grants...........         98,825,000            991,000
Social Services Block Grants......        320,000,000          3,772,000
Head Start........................        381,028,000          3,198,000
Goals 2000........................        476,652,000          5,313,000
Title I ESEA LEA Grants...........        434,652,000          1,956,000
Safe and Drug-Free Schools........         74,022,000            781,000
Teacher Training..................        610,000,000          6,336,000
Immigrant Education...............         50,000,000            331,000
Special Education.................        279,410,000          3,163,000
Vocational Education..............         27,250,000            368,000
Adult Education...................         40,000,000            385,000
Technology Literacy...............        250,000,000          2,353,000
------------------------------------------------------------------------

                              pennsylvania

    Lost $145,043,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut    Pennsylvania cut
------------------------------------------------------------------------
Adult Training....................        $97,000,000         $4,389,000
Summer Youth......................        246,000,000         10,606,000
Dislocated Workers Assistance.....        193,000,000          7,553,000
Child Care Block Grants...........         98,825,000          3,283,000
Social Services Block Grants......        320,000,000         14,731,000
Head Start........................        381,028,000         13,295,000
Goals 2000........................        476,652,000         20,259,000
Title I ESEA LEA Grants...........        434,652,000         14,825,000
Safe and Drug-Free Schools........         74,022,000          3,095,000
Teacher Training..................        610,000,000         25,773,000
Immigrant Education...............         50,000,000            263,000
Special Education.................        279,410,000         11,109,000
Vocational Education..............         27,250,000          1,271,000
Adult Education...................         40,000,000          2,029,000
Technology Literacy...............        250,000,000         10,806,000
------------------------------------------------------------------------

                              puerto rico

    Lost $105,465,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut    Puerto Rico cut 
------------------------------------------------------------------------
Adult Training....................        $97,000,000         $4,253,000
Summer Youth......................        246,000,000         10,494,000
Dislocated Workers Assistance.....        193,000,000          4,820,000
Child Care Block Grants...........         98,825,000          2,635,000
Social Services Block Grants......        320,000,000          1,655,000
Head Start........................        381,028,000         13,920,000
Goals 2000........................        476,652,000         12,632,000
Title I ESEA LEA Grants...........        434,652,000         23,103,000
Safe and Drug-Free Schools........         74,022,000          1,896,000
Teacher Training..................        610,000,000         16,067,000
Immigrant Education...............         50,000,000            207,000
Special Education.................        279,410,000          2,118,000
Vocational Education..............         27,250,000            589,000
Adult Education...................         40,000,000          1,003,000
Technology Literacy...............        250,000,000          8,995,000
------------------------------------------------------------------------

                              Rhode Island

    Lost $14,060,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut    Rhode Island cut
------------------------------------------------------------------------
Adult Training....................        $97,000,000           $386,000
Summer Youth......................        246,000,000            931,000
Dislocated Workers Assistance.....        193,000,000            834,000
Child Care Block Grants...........         98,825,000            279,000
Social Services Block Grants......        320,000,000          1,219,000
Head Start........................        381,028,000          1,151,000
Goals 2000........................        476,652,000          1,903,000
Title I ESEA LEA Grants...........        434,652,000            674,000
Safe and Drug-Free Schools........         74,022,000            362,000
Teacher Training..................        610,000,000          3,015,000
Immigrant Education...............         50,000,000            530,000
Special Education.................        279,410,000            946,000
Vocational Education..............         27,250,000            280,000
Adult Education...................         40,000,000            186,000
Technology Literacy...............        250,000,000          1,250,000
------------------------------------------------------------------------

                             South Carolina

    Lost $45,625,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
                                                         South Carolina 
              Program                 Nationwide cut          cut       
------------------------------------------------------------------------
Adult Training....................        $97,000,000         $1,292,000
Summer Youth......................        246,000,000          3,228,000
Dislocated Workers Assistance.....        193,000,000          1,858,000
Child Care Block Grants...........         98,825,000          1,822,000
Social Services Block Grants......        320,000,000          4,478,000
Head Start........................        381,028,000          4,691,000
Goals 2000........................        476,652,000          6,264,000
Title I ESEA LEA Grants...........        434,652,000          4,096,000
Safe and Drug-Free Schools........         74,022,000            964,000
Teacher Training..................        610,000,000          8,041,000
Immigrant Education...............         50,000,000                  0
Special Education.................        279,410,000          3,879,000
Vocational Education..............         27,250,000            525,000
Adult Education...................         40,000,000            713,000
Technology Literacy...............        250,000,000          3,260,000
------------------------------------------------------------------------

                              South Dakota

    Lost $12,522,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut    South Dakota cut
------------------------------------------------------------------------
Adult Training....................        $97,000,000           $242,000
Summer Youth......................        246,000,000            603,000
Dislocated Workers Assistance.....        193,000,000            111,000
Child Care Block Grants...........         98,825,000            340,000
Social Services Block Grants......        320,000,000            881,000
Head Start........................        381,028,000            941,000
Goals 2000........................        476,652,000          1,836,000
Title I ESEA LEA Grants...........        434,652,000          1,200,000
Safe and Drug-Free Schools........         74,022,000            362,000
Teacher Training..................        610,000,000          3,015,000
Immigrant Education...............         50,000,000                  0
Special Education.................        279,410,000            803,000
Vocational Education..............         27,250,000            319,000
Adult Education...................         40,000,000            105,000
Technology Literacy...............        250,000,000          1,250,000
------------------------------------------------------------------------

                               Tennessee

    Lost $59,091,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut     Tennessee cut  
------------------------------------------------------------------------
Adult Training....................        $97,000,000         $1,447,000
Summer Youth......................        246,000,000          3,514,000
Dislocated Workers Assistance.....        193,000,000          1,400,000
Child Care Block Grants...........         98,825,000          2,081,000
Social Services Block Grants......        320,000,000          6,325,000
Head Start........................        381,028,000          7,179,000
Goals 2000........................        476,652,000          8,433,000
Title I ESEA LEA Grants...........        434,652,000          4,444,000
Safe and Drug-Free Schools........         74,022,000          1,298,000
Teacher Training..................        610,000,000         10,870,000
Immigrant Education...............         50,000,000            125,000
Special Education.................        279,410,000          5,267,000
Vocational Education..............         27,250,000            668,000
Adult Education...................         40,000,000          1,050,000
Technology Literacy...............        250,000,000          4,346,000
------------------------------------------------------------------------

                                 Texas

    Lost $292,157,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut       Texas cut    
------------------------------------------------------------------------
Adult Training....................        $97,000,000         $7,584,000
Summer Youth......................        246,000,000         19,661,000
Dislocated Workers Assistance.....        193,000,000         11,439,000
Child Care Block Grants...........         98,825,000          8,605,000
Social Services Block Grants......        320,000,000         22,463,000
Head Start........................        381,028,000         27,913,000
Goals 2000........................        476,652,000         38,182,000
Title I ESEA LEA Grants...........        434,652,000         46,369,000
Safe and Drug-Free Schools........         74,022,000          5,627,000
Teacher Training..................        610,000,000         47,456,000
Immigrant Education...............         50,000,000          4,798,000
Special Education.................        279,410,000         21,020,000
Vocational Education..............         27,250,000          2,417,000
Adult Education...................         40,000,000          3,151,000
Technology Literacy...............        250,000,000         20,580,000
------------------------------------------------------------------------

                                  Utah

    Lost $20,908,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut        Utah cut    
------------------------------------------------------------------------
Adult Training....................        $97,000,000           $262,000
Summer Youth......................        246,000,000            763,000
Dislocated Workers Assistance.....        193,000,000            348,000
Child Care Block Grants...........         98,825,000            928,000
Social Services Block Grants......        320,000,000          2,332,000
Head Start........................        381,028,000          1,994,000
Goals 2000........................        476,652,000          3,429,000
Title I ESEA LEA Grants...........        434,652,000            515,000
Safe and Drug-Free Schools........         74,022,000            527,000
Teacher Training..................        610,000,000          4,346,000
Immigrant Education...............         50,000,000            491,000
Special Education.................        279,410,000          2,705,000
Vocational Education..............         27,250,000            335,000
Adult Education...................         40,000,000            184,000
Technology Literacy...............        250,000,000          1,250,000
------------------------------------------------------------------------

                                Virginia

    Lost $61,371,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut      Virginia cut  
------------------------------------------------------------------------
Adult Training....................        $97,000,000         $1,606,000
Summer Youth......................        246,000,000          3,978,000
Dislocated Workers Assistance.....        193,000,000          2,117,000
Child Care Block Grants...........         98,825,000          1,834,000
Social Services Block Grants......        320,000,000          8,008,000
Head Start........................        381,028,000          5,422,000
Goals 2000........................        476,652,000          8,705,000
Title I ESEA LEA Grants...........        434,652,000          3,971,000
Safe and Drug-Free Schools........         74,022,000          1,363,000
Teacher Training..................        610,000,000         11,150,000
Immigrant Education...............         50,000,000            628,000
Special Education.................        279,410,000          6,503,000
Vocational Education..............         27,250,000            714,000
Adult Education...................         40,000,000          1,038,000
Technology Literacy...............        250,000,000          3,353,000
------------------------------------------------------------------------

                             virgin islands

    Lost $4,084,895 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
                                                         Virgin Islands 
              Program                 Nationwide cut          cut       
------------------------------------------------------------------------
Adult Training....................        $97,000,000            $63,000
Summer Youth......................        246,000,000            129,000
Dislocated Workers Assistance.....        193,000,000            101,000
Child Care Block Grants...........         98,825,000                155
Social Services Block Grants......        320,000,000                 55
Head Start........................        381,028,000                685
Goals 2000........................        476,652,000            511,000
Title I ESEA LEA Grants...........        434,652,000            787,000
Safe and Drug-Free Schools........         74,022,000            244,000
Teacher Training..................        610,000,000          1,005,000
Immigrant Education...............         50,000,000             98,000
Special Education.................        279,410,000            545,000
Vocational Education..............         27,250,000             16,000
Adult Education...................         40,000,000             26,000
Technology Literacy...............        250,000,000            513,000
------------------------------------------------------------------------

                                vermont

    Lost $10,819,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut       Vermont cut  
------------------------------------------------------------------------
Adult Training....................        $97,000,000           $242,000
Summer Youth......................        246,000,000            603,000
Dislocated Workers Assistance.....        193,000,000            165,000
Child Care Block Grants...........         98,825,000            168,000
Social Services Block Grants......        320,000,000            709,000
Head Start........................        381,028,000            535,000
Goals 2000........................        476,652,000          1,717,000
Title I ESEA LEA Grants...........        434,652,000          1,023,000
Safe and Drug-Free Schools........         74,022,000            362,000
Teacher Training..................        610,000,000          3,015,000
Immigrant Education...............         50,000,000              9,000
Special Education.................        279,410,000            591,000
Vocational Education..............         27,250,000            230,000
Adult Education...................         40,000,000             76,000
Technology Literacy...............        250,000,000          1,250,000
------------------------------------------------------------------------

                               Washington

    Lost $59,772,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut     Washington cut 
------------------------------------------------------------------------
Adult Training....................        $97,000,000         $1,928,000
Summer Youth......................        246,000,000          4,844,000
Dislocated Workers Assistance.....        193,000,000          3,554,000
Child Care Block Grants...........         98,825,000          1,588,000
Social Services Block Grants......        320,000,000          6,531,000
Head Start........................        381,028,000          5,932,000
Goals 2000........................        476,652,000          8,492,000
Title I ESEA LEA Grants...........        434,652,000          2,442,000
Safe and Drug-Free Schools........         74,022,000          1,252,000
Teacher Training..................        610,000,000         10,355,000
Immigrant Education...............         50,000,000            962,000
Special Education.................        279,410,000          5,345,000
Vocational Education..............         27,250,000            569,000
Adult Education...................         40,000,000            591,000
Technology Literacy...............        250,000,000          3,503,000
------------------------------------------------------------------------

                             West Virginia

    Lost $29,759,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
                                                          West Virginia 
              Program                 Nationwide cut          cut       
------------------------------------------------------------------------
Adult Training....................        $97,000,000         $1,006,000
Summer Youth......................        246,000,000          2,473,000
Dislocated Workers Assistance.....        193,000,000          1,886,000
Child Care Block Grants...........         98,825,000            760,000
Social Services Block Grants......        320,000,000          2,227,000
Head Start........................        381,028,000          2,890,000
Goals 2000........................        476,652,000          3,830,000
Title I ESEA LEA Grants...........        434,652,000          3,994,000
Safe and Drug-Free Schools........         74,022,000            586,000
Teacher Training..................        610,000,000          4,955,000
Immigrant Education...............         50,000,000                  0
Special Education.................        279,410,000          1,727,000
Vocational Education..............         27,250,000            269,000
Adult Education...................         40,000,000            401,000
Technology Literacy...............        250,000,000          2,489,000
------------------------------------------------------------------------

                               Wisconsin

    Lost $55,037,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut      Wisconsin cut 
------------------------------------------------------------------------
Adult Training....................        $97,000,000         $1,087,000
Summer Youth......................        246,000,000          2,693,000
Dislocated Workers Assistance.....        193,000,000          1,381,000
Child Care Block Grants...........         98,825,000          1,527,000
Social Services Block Grants......        320,000,000          6,212,000
Head Start........................        381,028,000          5,464,000
Goals 2000........................        476,652,000          8,806,000
Title I ESEA LEA Grants...........        434,652,000          3,195,000
Safe and Drug-Free Schools........         74,022,000          1,341,000
Teacher Training..................        610,000,000         11,288,000
Immigrant Education...............         50,000,000            118,000
Special Education.................        279,410,000          5,205,000
Vocational Education..............         27,250,000            613,000
Adult Education...................         40,000,000            711,000
Technology Literacy...............        250,000,000          4,372,000
------------------------------------------------------------------------

                                Wyoming

    Lost $10,611,000 in the Labor-HHS-Ed Bill, compared to the 
President's FY 1997 Request. Selected cuts include:

------------------------------------------------------------------------
              Program                 Nationwide cut       Wyoming cut  
------------------------------------------------------------------------
Adult Training....................        $97,000,000           $242,000
Summer Youth......................        246,000,000            603,000
Dislocated Workers Assistance.....        193,000,000            142,000
Child Care Block Grants...........         98,825,000            176,000
Social Services Block Grants......        320,000,000            582,000
Head Start........................        381,028,000            517,000
Goals 2000........................        476,652,000          1,716,000
Title I ESEA LEA Grants...........        434,652,000          1,062,000
Safe and Drug-Free Schools........         74,022,000            362,000
Teacher Training..................        610,000,000          3,015,000
Immigrant Education...............         50,000,000                  0
Special Education.................        279,410,000            543,000
Vocational Education..............         27,250,000            211,000
Adult Education...................         40,000,000             55,000
Technology Literacy...............        250,000,000          1,250,000
------------------------------------------------------------------------

                                   David Obey.
                                   Louis Stokes.
                                   Steny H. Hoyer.
                                   Nancy Pelosi.
                                   Nita Lowey.
                  DISSENTING VIEWS OF HON. STENY HOYER

    During subcommittee debate on the Labor-HHS-Education bill, 
I offered an amendment to add $2.6 billion to Head Start, 
elementary and secondary education. As a strong supporter of a 
balanced budget, I believe it is possible to make adequate 
investments in education, job training and health while still 
acting in a fiscally responsible manner and putting our 
budgetary house in order. It is because of these beliefs that I 
voted in favor of the Coalition budget, voted against the 
Republican budget resolution, and voted against this bill.
    Education, job training, and social services such as child 
care are critical investments in the future economic strength 
of this nation. Never before have employment potential, job 
opportunities and earnings been so dependent upon mastery of 
sophisticated skills. While record numbers of children will 
enter public schools over the next six years, the Republican 
budget freezes education spending through 2002. This will 
result in a 17% reduction in the real buying power of the 
federal education dollar, as enrollment rises by more than 6 
percent. The bill approved by the Committee goes even further 
than the Republican budget resolution, and cuts federal 
education funds by more than $400 million.
    The American public understands the critical link between 
education and economic strength. 85% of Americans polled who 
support balancing the budget do not want to cut education to do 
so. The Coalition budget recognizes this, and provides $5 
billion more for education, training and social services than 
the Republican budget resolution. Over the six-year period, the 
Coalition investment in education and job training exceeds 
Republican funding levels by $45.5 billion while achieving a 
budget surplus by 2002.
    This bill eliminates Goals 2000 funding to states to 
support their school reform efforts, while the Coalition budget 
assumes full funding. This bill flat-funds Title I education 
for disadvantaged students and Summer Jobs, while the Coalition 
budget assumes continued growth to give these children and 
youth the education and job skills they need to become 
productive, contributing citizens.
    In addition, the Republican budget assumes cuts in health 
programs which are rejected by the Coalition budget. The 
Coalition budget provides nearly $9 billion more over six years 
than the Republican budget for important health programs such 
as the Healthy Start infant mortality initiative, which is 
eliminated in this bill. In the city of Baltimore, Healthy 
Start reduced the infant mortality rate by 30% in three years. 
It decreased the number of low birthweight babies born to 
participants by 62 percent. When Medicaid costs for hospital 
care for very low birthweight babies range from $30,000 to 
$200,000, investments in health programs such as Healthy Start 
pay for themselves many times over.
    Failure to provide adequate funding for our discretionary 
investments in public education, job training and health is 
short sighted and dangerous. The Republican budget mortgages 
our future by insisting on tax cuts prior to achieving a 
balanced budget. Because the Coalition budget places its 
priority on investments and deficit reduction rather than tax 
cuts, it balances the budget a year sooner and incurs $137 
billion less debt than the Republican budget while providing 
nearly $50 billion more for the education, job training, and 
health programs that build our economic strength and productive 
capacity for the twenty-first century.
                                                    Steny H. Hoyer.

                                
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