Section II

Procedures for Administering Federal Funds for Instruction

THE FUNDS for instruction are administered by the U.S. Depart

ment of Health, Education, and Welfare, Office of Education, and the funds for experiment stations and extension services by the U.S. Department of Agriculture.

Federal funds from two sources are used to help the States maintain instruction on the campus. The first source is the income from the original land grants or scrip, and in some States from subsequent land grants. This income now amounts to about $213 million per year. Although 15 of the States still have some of the original land remaining unsold, more than seven-eighths of the annual land-grant income is derived from investments of the sums received from the sale of the land or scrip.

The income from the original grants differs widely in amount among the States. While 6 States derive less than $5,000 annually, and in 12 others the income is less than $10,000, 3 States derive more than $100,000 a year from this endowment fund. For Minnesota the income is more than a million dollars annually.

The handling of these funds is left to the States, subject to the conditions prescribed in section 5 of the 1862 act.1 Reports concerning the condition of the fund and the annual income derived are received each year by the U.S. Department of Health, Education, and Welfare. The second source of Federal aid for instruction is the so-called supplementary Morrill funds for which the Federal Government now appropriates $10,744,000 annually. By the Second Morrill Act of 1890, "each State and the territories of Alaska, Hawaii, and Puerto Rico," receive $25,000. Another $25,000 uniform grant is provided by the Nelson amendment of 1907. By section 22 of the Bankhead-Jones Act of 1935, as amended June 1952 and July 1960, an additional $150,000 was authorized for each State and Puerto Rico, plus variable amounts from $4,300,000 distributed on the basis of population-a total authorization of $11,150,000. The 1890 and 1907 acts are "continuing" appropriations, requiring no congressional action each year. The 1935

1 First Morrill Act of 1862, see p. 54.

act, as amended, authorizes appropriations which Congress must act upon each year.

It is to be noted that the Appropriations Act for 1962 for the Departments of Labor, and Health, Education, and Welfare (Public Law 87-290) carried only $8,194,000 of $11,950,000 authorized by the amendment (Public Law 86-658) to the Bankhead-Jones Act of 1935 (49 Stat. at Large, 436, 439). Under this appropriation each of the States was entitled to receive a uniform grant of $90,000 and pro rata share of the sum of $3,604,000 allotted on the basis of proportionate population as determined by the last decennial census.

The procedure followed involves the following steps:

1. In the annual budget submitted by the Department of Health, Education, and Welfare, items are included covering both the continuing appropriation and the appropriation requiring congressional action.

2. After the budget is acted upon by the Congress, the Secretary of Health, Education, and Welfare submits to the Secretary of the Treasury a certiflcate indicating the amount to which each State is entitled and the name of the officer or officers in each State to which the check or checks should be sent.

3. The Secretary of the Treasury sends, not later than July 31, the checks for funds for the fiscal year ending on the following June 30.

The expenditure of these funds by each land-grant college or university is subject to the conditions appearing in the acts of 1890 and 1907. Expenditures from the funds are limited to instruction and facilities for instruction in agriculture, mechanic arts, English language, mathematics, natural and physical science, economic science, and specialized teacher training for agriculture, the mechanic arts, and home economics.

Since these funds constitute such a small fraction of the amount used for instruction in the institution, this limitation is of little significance. Each institution utilizes teachers paid from other funds side by side with those paid wholly or in part from Federal funds. The objective of the act in 1890 was to assure the support of instruction in subjects believed to be essential for an institution maintained under the provisions of the 1862 act.

At the close of each year each institution submits to the Office of Education, on forms provided by the Office, a report certified by the treasurer and the president of the institution. This report indicates the amount of the funds spent for salaries and for teaching facilities in each of the authorized areas of study.

Allotments to the several States, provided by the legislation, including the July 1960 amendment to the Bankhead-Jones Act, are shown in table 3.

• Two land-grant institutions in this State receive a stipulated proportion of the funds allotted.

Section III

Federal Laws and Rulings

Federal Laws and Rulings Relating to Federal Funds for Instruction for Land-Grant Colleges and Universities

FROM THE passage of the Morrill Act in 1862 to July 1, 1939,

of

Federal funds for instruction in the land-grant colleges and universities were administered by the Department of the Interior. From July 1, 1939 to April 11, 1953, these funds were administered through the Federal Security Agency. Under provisions of the act approved April 1, 1953 (67 Stat., 5 U.S.C. 623), known as the Reorganization Plan I of 1953, the Federal Security Agency was abolished and the Department of Health, Education, and Welfare was created. All functions of the Federal Security Administrator were transferred to the Secretary of Health, Education, and Welfare, and all components of the Agency to the new department. Hence, the legal authority for the administration of the Morrill Act of 1862 and its several amendments and supplements appropriating funds for instruction in the land-grant colleges rests with the Secretary of Health, Education, and Welfare. Apart from the certification of grants, the Secretary exercises this authority through the U.S. Commissioner of Education and the Assistant Commissioner for Higher Education.

Act of July 2, 1862 (First Morrill Act)

[Providing for the Endowment, Support and Maintenance of Colleges of Agriculture and Mechanic Arts]

[AN ACT Donating public lands to the several States and Territories which may provide colleges for the benefit of agriculture and the mechanic arts]

Be it enacted by the Senate and House of Representatives of the United States of America, in Congress assembled, That there be granted to the several States, for the purposes hereinafter mentioned, an amount of public land, to be apportioned to each State a quantity equal to thirty thousand acres for each Senator and Representative in Congress to which the States are respectively entitled by the apportionment under the census of 1860; Provided, That no mineral lands shall be selected or purchased under the provisions of this act.