I should like the distinguished chairman to inform me whether that is not true. Mr. McCONNELL. Yes. We have provided for payments where those cases of impact cross State lines. The particular case that the gentleman has mentioned has been checked and will be taken care of under the provisions of H. R. 6078.

Mr. HARRIS. Whether they are working for the contractors in establishments such as I have mentioned or directly for the Department of Defense? Mr. McCONNELL. That is right. Mr. HARRIS. I thank the gentleman very much.

Mr. McCONNELL. Mr. Chairman, I yield myself another minute in order to answer a question of the gentlewoman from Massachusetts [Mrs. ROGERS].

Mrs. ROGERS of Massachusetts. Mr. Chairman, I understand that in the last bill there was $400,000 for impacted areas for school purposes, and in this bill there is upwards of $350,000; is that correct?

Mr. McCONNELL. If I understand the question, the gentlewoman is asking about her own particular area?

Mrs. ROGERS of Massachusetts. Massachusetts, that is right.

Mr. McCONNELL. It is about $350,000. Mrs. ROGERS of Massachusetts. And it was $400,000 in the last bill?

It can thus be seen that the number of "Federally connected" children has grown steadily since the inception of this program. So too has the cost of discharging the Federal responsibility for the operation and maintenance and maintenance of schools in these areas. The burden on local school districts because of substantially increased enrollments is expected to continue, and the loss of taxable property also is a continuing one. In both cases, since the Federal Government is responsible for this impact, reasonable Federal assistance should be forthcoming.

There is only one other point which I would like to bring up at this time. It may well be that the point already is well understood, but it seems worth reiterating.

The chairman of our committee and others have mentioned that we are proposing only a 2-year extension of the present law-to June 30, 1956. In other words, although the problem can be described fairly as a continuing one, only a temporary extension is now being sought.

The reason for this recommendation lies in the fact that the long-range problem of Federal responsibility in the edu

ered by a commission. President Eisen

Mr. FRELINGHUYSEN. Mr. Chairman, I have no intention of taking very much of the Committee's time. I feel there is no disagreement about the advisability of extending this legislation; and, as a member of the committee, I would like to say that I enjoyed working with the subcommittee. I believe we explored the various aspects of this question thoroughly, and I think the solution is an excellent one.

Mr. Chairman, it seems unlikely that there will be any serious disagreement regarding the extension of Public Law 874 for a 2-year period, as proposed by the bill which we are presently considering. For the general information of the members, however, I would like to mention briefly why there is a continuing need for Federal assistance in the operation and maintenance of schools in the so-called impacted school districts.

It is authoritatively estimated, for the fiscal year 1953, that there will be some 750,000 children in 2,300 school districts with respect to whom payments will be made under Public Law 874. Expenditures under this law for this period are estimated at $60,500,000. This total of 750,000 children includes those who reside on Federal property or who reside with parents employed on Federal property, or who both reside on Federal property and have parents who are employed there. In the fiscal year 1952 there were about 620,000 children in these categories. While in fiscal 1951 there were only 442,000 such children, expenditures

sage recommended that a commission study thoroughly the proper relationship between Federal, State, and local programs in these fields. Presumably their findings and recommendations can be thoroughly discussed by the next Congress when permanent legislation may be considered. In the meantime the localities adversely affected by Federal activities can be assured of continued assistance and can make their plans accordingly.

In closing, I would like to say that I enjoyed working on the subcommittee which considered this bill. Some of the problems which we discussed were technical and involved, and some appeared controversial. It is my belief that these questions have been thoroughly explored and that the bill under consideration is an equitable one.

Mr. BARDEN. Mr. Chairman, I have no further requests for time.

Mr. McCONNELL. Mr. Chairman, I yield such time as he may require to the gentleman from California [Mr. HOLT].

Mr. HOLT. Mr. Chairman, at this time, as a freshman member of the subcommittee which was in charge of extending and amending Public Laws 815 and 874, I should like to compliment my colleagues and our chairman for the nonpartisan attitude with which the hearings and the final writing of the legislation was undertaken and completed. I did not take time last week when the House passed Public Law 815 to speak on it, and I should just like to refer to it briefly in these remarks.

As a member of the committee, I did all within my power to see to it that the Federal Government met its obligations as far as the construction phase of Federal aid to education in federally im

mittee included in the legislation $95 million which were back entitlements that were due districts, but there were not the necessary appropriations available at the time to meet that obligation. I should like to point out that both Public Laws 815 and 874 are temporary legislation wherein the Federal Government meets its responsibility in the school districts that are seriously burdened by Federal activities. I might add that hundreds of thousands of children have had schoolhouses and teachers that they could not have had otherwise. These laws eliminated much of the chaotic condition that existed before 1950, a condition that resulted from numerous separate appropriations to a large number of Federal agencies for educational purposes.

These statutes are necessarily complex. It has thus far been impossible to devise formulas for measuring eligibility and entitlements which are objective enough to avoid extensive interpretations. So these statutes, although clearly the best thus far enacted to care for the problems, are nevertheless something less than ideal.

Public Law 874 provides temporary financial assistance for the maintenance and operation of schools in areas affected by Federal activities. The purpose of this bill before us is to extend the provisions of this law for an additional 2 years only.

The committee attempted to help the small, hard-hit school districts, in particular, and give recognition to those States that help themselves as much as possible in providing funds for the maintenance and operation of schools.

We also attempted to follow the theory that the Federal Government must assume the responsibility of a local taxpayer because, in reality, it takes the

place of a local taxpayer when it assumes ownership of land in a given school district.

In short, we attempted to achieve an to assist school districts and, at the same equitable distribution of Federal funds

time, provide incentive for States to help themselves.

I should like to thank the Department of Health, Education, and Welfare for their assistance to the committee and

the staff of the Committee on Education and Labor, and I also would like to say that we received a great deal of assistance from those most sincere superintendents of schools who testified before our committee.

Mr. REES of Kansas. Mr. Chairman, first I want to commend the membership of the Committee on Education and Labor for bringing this legislation to the floor of the House for our consideration. I realize that there are a number of provisions in this bill that are not completely satisfactory to each and all of the Members of the House. I do think, however, that, generally speaking, the committee has done well in working out legislation on an extremely complicated and difficult problem.

The Fourth District of Kansas is particularly interested in this legislation for the reason that our district is one of

those that includes a number of defenseimpacted areas. It is necessary that the assistance provided in this legislation be approved in order that the children in such areas be given opportunity for education. The local taxing districts are presently contributing all they can provide under the law.

Mr. McCONNELL. Mr. Chairman, I Mr. Chairman, I yield such time as he may desire to the gentleman from Virginia [Mr. BROYHILL].

Mr. BROYHILL. Mr. Chairman, the House in previous actions has already approved the principle of granting Federal assistance in financing schools to the many communities in this country who have been deprived of tax revenue by virtue of the occupation of valuable land by the United States Government. The measure we have under consideration merely implements that action and carries out the intent of Congress.

I have spoken several times before on this subject. So have many of my colleagues. It is unnecessary for me to burden the House with a repetition of the arguments previously advanced. They are sound and valid arguments, arguments that have been accepted as such by the majority of the Members of this body.

But since one of the counties I have the honor to represent in Congress, namely, Arlington County, has been mentioned in past debate as an example and is known to most Members, I feel it

incumbent upon me to point out that 17 percent of the total area of his county is owned and occupied by Uncle Sam. Mr. Chairman, this is not wasteland that would produce little or no taxable revenue. These Federal holdings have been taken from the most valuable land areas

in the county. The commissioner of revenue of Arlington County has estimated that taxes lost by reason of Government land ownership amount to the

staggering sum of $4,962,223 a year while all other properties in the entire county yield only $6,096,888. In other words, the value of the federally owned property amounts to 45 percent of the total value of the entire community.

This represents, in my opinion, Mr. Chairman, one of the most flagrant examples of tax chiseling in the history of our country. And the tax evader in this case is none other than the United States Government. Scores of other communities throughout the Nation are affected to a lesser extent. They find themselves unable to provide the necessary services to their citizens without the assistance of the Government.

It is not an exaggeration to say that without aid to compensate for Government tax evasion the educational facilities provided by many counties in America would be seriously impaired. Every American child is entitled by birthright to a decent education. But unless Uncle Sam stops removing taxable land and property from the tax rolls; or unless this Government compensates for such tax evasion, thousands of kids will be deprived of one of the greatest assets of our form of government-a public education.

We must not permit the Federal Government to evade its just obligations at

the expense of our children. We must insist that adequate measures be provided to alleviate the plight which many communities, including those in my own district, find themselves facing. We must in one way or another make up for the loss in tax revenue occasioned by Government ownership and occupation of large land areas.

The measure we are considering today is an important measure not only because it is a just measure, but more important, it deals with the future welfare of our children. We must provide them with the opportunity to a free education. We must give them good teachers and decent educational facilities.

Mr. Chairman, I sincerely hope that sometime in the near future this Congress will adopt a sound program which will deal with the problem of tax-free Government lands. I have given much thought to this problem and I believe that we can work out a plan acceptable to both the Government and the affected communities which will take Uncle Sam off the list of tax evaders. I believe that a program of Government compensation in lieu of taxes is the most sensible solution to this vexing problem. Under such a program it will no longer be necessary to depend on Federal educational grants. Mr. Chairman, I intend to introduce such a bill in the immediate future after consultation with some of the best tax experts in the Nation. yield myself 31⁄2 minutes. Mr. McCONNELL. Mr. Chairman, I

Mr. Chairman, we were asked during last week's debate, by the gentleman from Kentucky [Mr. GOLDEN] about the Wolf Creek Dam and Reservoir.

Wolf Creek Dam and Reservoir is a Federal project located in Wayne CounFederal project located in Wayne County, Ky. The project involves 90,409 acres of Federal property acquired in 1949, and Wayne County receives approximately

$5,500 per year under section 2 of Public Law 874-payment in lieu of taxes.

Russell County has approximately 10 3A pupils and 110 3B pupils for which they receive a payment of approximately $11,000. With the same number of children they will receive about $14,000 under H. R. 6078. This increase is brought about by the amendment which places a floor in computing the local contribution rate-the local contribution rate has been approximately $44 per pupil and will be raised to about $57.50 per pupil.

In closing I would like to do something I have not done before in either of these debates; I would like very much to pay tribute to my colleagues on the Committee on Education and Labor. It has been a joy for me to work with them. They have given me their confidence and their loyalty which I prize very highly. I cannot say how much I have felt the real honor that I have received in being able to associate with these men in working out this legislation which is so difficult and so emotionally charged.

I want to pay a public tribute to the men and also I want to pay special tribute to the ranking minority member, the gentleman from North Carolina [Mr. BARDEN]. He and I have cooperated on many pieces of legislation, and I have learned to value his counsel highly.

Mr. BARDEN. Mr. Chairman, I yield such time as he may desire to the gentleman from Oklahoma [Mr. JARMAN).

Mr. JARMAN. Mr. Chairman, though H. R. 6078 does not make the provision for federally impacted areas that our school needs require and for which we had hoped, still we all recognize the financial demands upon our Federal Government. Under all the circumstances, the committee has done a fine, impartial job and I rise at this time to pay tribute to the work of the committee.

Mr. BARDEN. Mr. Chairman, I yield such time as he may desire to the gentleman from Kansas [Mr. MILLER].

Mr. MILLER of Kansas. Mr. Chairman, I wish to express my appreciation for the fine, thorough manner in which our chairman has conducted these hearings and brought forth this bill. I am in thorough accord with its provisions.

This bill provides equal justice, as nearly as may be, to all school districts anywhere within the borders of the United States.

I am sorry I cannot say as much for the bill which passed the House last week, providing for buildings and facilities in impacted districts. I advocated and voted for the Elliott amendment which provided equal treatment in all cases, even though some school officials were derelict in the performance of their duties. I still think that as a matter of common justice this amendment should have passed. In my opinion, denial of housing and facilities to schoolthe budget. This bill contains no such children is not a good way to balance deficiency and should be passed.

GENERAL LEAVE TO EXTEND

Mr. BARDEN. Mr. Chairman, I would like to make the general request that all Members have the right to revise and extend their remarks.

The CHAIRMAN. Is there objection

to the request of the gentleman from

North Carolina?

There was no objection.
The CHAIRMAN.

The time of the gentleman from North Carolina has expired; all time under the rule has expired.

The Clerk will read the bill for amendment.

The Clerk read as follows:

Be it enacted, etc., That (a) the first sentence of section 2 (a) of the act of September 30, 1950 (Public Law 874, 81st Cong.), is amended by striking out "three succeeding fiscal years" and inserting in lieu thereof "five succeeding fiscal year."

(b) Such section 2 (a) is further amended by inserting "with respect to the property so acquired" after the phrase "other Federal payments" wherever such phrase appears therein.

(c) Section 2 (b) (1) of such act is amended by inserting after "act" the following: ", and property taxes paid with respect to Federal property, whether or not such taxes are paid by the United States."

SEC. 2. (a) (1) Subsections (a) and (b) of section 3 of such act are amended to read as follows:

"CHILDREN RESIDING ON, OR WHOSE PARENTS ARE EMPLOYED ON, FEDERAL PROPERTY "Children of persons who reside and work on Federal property

"SEC. 3. (a) For the purpose of computing the amount to which a local educational

agency is entitled under this section for any fiscal year ending prior to July 1, 1956, the Commissioner shall determine the number of children who were in average daily attendance at the schools of such agency, and for whom such agency provided free public education, during the preceding fiscal year, and who, while in attendance at such schools, resided on Federal property and (1) did so with a parent employed on Federal property situated in whole or in part in the same State as the school district of such agency or situated within reasonable commuting distance from the school district of such agency, or (2) had a parent who was on active duty in the uniformed services (as defined in section 102 of the Career Compensation Act of 1949).

"Children of persons who reside or work on

Federal property

"(b) For such purpose, the Commissioner shall also determine the number of children who were in average daily attendance at the schools of a local educational agency, and for whom such agency provided free public education, during the preceding fiscal year (other than those specified in subsection (a) hereof) and who, while in attendance at such schools, either resided on Federal property, or resided with a parent employed on Federal property situated in whole or in part in the same State as such agency or situated within reasonable commuting distance from the school district of such agency."

(2) Such section is further amended by striking out subsections (d), (e), and (f), by redesignating subsections (c) and (g) as subsections (d) and (e), respectively, and by inserting after subsection (b) the following new subsection:

"Computation of amount of entitlement

"(c) (1) The amount to which a local educational agency is entitled under this section for any fiscal year ending prior to July 1, 1956, shall be an amount equal to (A) the local contribution rate (determined under subsection (d)) multiplied by (B) the sum of the number of children determined under subsection (a) and one-half of the number determined under subsection (b), minus 2 percent of the difference between such sum and the total number of children who were in average daily attendance at the schools of such agency, and for whom such agency provided free public education, during the preceding fiscal year; except that no local educational agency shall be entitled to any payment under this section for any fiscal year unless the sum of the number of children determined under subsection (a) and one-half of the number of children determined under subsection (b) is 10 or more. Notwithstanding the foregoing provisions of this paragraph, whenever and to the extent that, in his judgment, exceptional circumstances exist which make such action necessary to avoid inequity and avoid defeating the purposes of this act, the Commissioner may waive or reduce the 2 percent deduction, or the requirement of 10 or more children, contained in this paragraph, or both. Notwithstanding the foregoing provisions of this paragraph, where the average daily attendance at the schools of any local educational agency during the fiscal year ending June 30, 1939, exceeded 35,000, there shall be a 3 percent deduction in lieu of the 2 percent deduction specified in the first sentence of this paragraph, and the second sentence of this paragraph shall not apply.

"(2) If

"(A) the amount computed under paragraph (1) for a local educational agency for any fiscal year ending prior to July 1, 1956, together with the funds available to such agency from State, local, and other Federal sources (including funds available under section 4 of this act), is, in the judgment of the Commissioner, less than the amount necessary to enable such agency to provide a

level of education equivalent to that maintained in the school districts of the State which, in the judgment of the Commissioner are generally comparable to the school district of such agency;

"(B) such agency is, in the judgment of the Commissioner, making a reasonable tax effort and exercising due diligence in availing itself of State and other financial assistance;

"(C) not less than 50 percent of the total number of children who were in average daily attendance at the schools of such agency, and for whom such agency provided free public education, during the preceding fiscal year resided on Federal property; and

"(D) effective for the fiscal year beginning July 1, 1955, the eligibility of such agency under State law for State aid with respect to the free public education of children residing on Federal property, and the amount of such aid, is determined on a basis no less favorable to such agency than the basis used in determining the eligibility of local educational agencies for State aid, and the amount thereof, with respect to the free public education of other children in the State,

the Commissioner may increase the amount computed under paragraph (1) to the extent necessary to enable such agency to provide a level of education equivalent to that maintained in such comparable school districts; except that this paragraph shall in no case operate to increase the amount computed for any fiscal year under paragraph (1) for a local educational agency above the amount determined by the Commissioner to be the cost per pupil of providing a level of education equivalent to that maintained in such comparable school districts, multiplied by the number of children who were in average daily attendance at the schools of such agency, and for whom such agency provided free public education, during the preceding year and who resided on Federal property during such preceding year, minus the amount of State aid which the Commissioner determines to be available with respect to such children for the year for which the computation is being made."

(b) (1) So much of the subsection of such section 3 herein redesignated as subsection (d) as precedes clause (1) thereof is amended to read as follows:

"Local contribution rate

"(d) The local contribution rate for a local educational agency (other than a local educational agency in Alaska, Hawaii, Puerto Rico, Guam, Wake Island, or the Virgin Islands) for any fiscal year shall be computed by the Commissioner of Education, after consultation with the State educational agency and the local educational agency, in the following manner: ".

(2) Clause (1) of such subsection is amended by striking out "most nearly comparable" and inserting in lieu thereof “generally comparable".

(c) Such subsection is further amended by adding at the end thereof the following new sentences: "In no event shall the local contribution rate for any local educational agency in any State in the continental United States for any fiscal year be less than 50 percent of (i) the aggregate current expenditures, during the second fiscal year preceding such fiscal year, made by all local educational agencies in such State (without regard to the source of the funds from which such expenditures were made), divided by (ii) the aggregate number of children in average daily attendance to whom such agencies provided free public education during such second preceding fiscal year. The local contribution rate for any local educational agency in Alaska, Hawaii, Puerto Rico, Guam, Wake Island, or the Virgin Islands, shall be determined for any fiscal year by the Commissioner in accordance with policies and principles which will, in his judgment, best

effectuate the purposes of this act and most nearly approximate the policies and principles provided herein for determining local contribution rates in other States."

(d). The subsection of such section herein redesignated as subsection (e) is amended by inserting "(other than subsection (c) (2) thereof)" after "this section". The second parenthetical clause contained in such subsection is amended to read as follows: “(but only to the extent such payments are not deducted under the last sentence of section 2 (a)); and, in the case of Federal payments representing an allotment to the local educational agency from United States Forestry Reserve funds, Taylor Grazing Act funds, United States Mineral Lease Royalty funds, Migratory Bird Conservation Act funds, or similar funds, only to the extent that children who reside on or with a parent employed on the property with respect to which such funds are paid are included in determining the amount to which such agency is entitled under this section)".

SEC. 3. Subsection (a) of section 4 of such act is amended to read as follows:

"Increases hereafter occurring

"SEC. 4. (a) If the Commissioner determines for any fiscal year ending prior to July 1, 1956

"(1) that, as a direct result of activities of the United States (carried on either directly or through a contractor), an increase in the number of children in average daily attendance at the schools of any local educational agency has occurred in such fiscal year, which increase so resulting from activities of the United States is equal to at least 5 percent of the number of all children in average daily attendance at the schools of such agency during the preceding fiscal year; and

"(2) that such activities of the United States have placed on such agency a substantial and continuing financial burden; and

"(3) that such agency is making a reasonable tax effort and is exercising due diligence in availing itself of State and other financial assistance but is unable to secure sufficient funds to meet the increased educational costs involved,

then such agency shall be entitled to receive for such fiscal year an amount equal to the product of

"(A) the number of children which the Commissioner determines to be the increase, so resulting from activities of the United States, in such year in average daily attendance; and

"(B) the amount which the Commissioner determines to be the current expenditures per child necessary to provide free public education to such additional children during such year, minus the amount which the Commissioner determines to be available from State, local, and Federal sources for such purpose (not counting as available for such purpose either payments under section 2 of this act or funds from local sources necessary to provide free public education to other children).

For the next fiscal year (except where the determination under the preceding sentence has been made with respect to the fiscal year ending June 30, 1956) such agency shall be entitled to receive 50 percent of such product, but not to exceed for such year the amount which the Commissioner determines to be necessary to enable such agency, with the State, local, and other Federal funds available to it for such purpose, to provide a level of education equivalent to that maintained in the school districts in such State which in his judgment are generally comparable to the school district of such agency. The determinations whether an increase has occurred for purposes of clause (1) hereof and whether such increase meets the 5-percent requirement contained in such clause, for any fiscal year, shall be made on the basis of estimates by the Commissioner made prior

to the close of such year, except that an underestimate made by the Commissioner pursuant to the foregoing provisions of this sentence shall not operate to deprive an agency of its entitlement to any payments under this section to which it would be entitled had the estimate been accurate. The determination under clause (B) shall be made by the Commissioner after considering the current expenditures per child in providing free public education in those school districts in the State which, in the judgment of the Commissioner, are generally comparable to the school district of the local educational agency for which the computation is being made."

SEC. 4. Subsection (c) of section 4 of such act is amended to read as follows:

"Counting of certain children

"(c) In determining under subsection (a) whether there has been an increase in attendance in any fiscal year directly resulting from activities of the United States and the number of children with respect to whom payment is to be made for any fiscal year, the Commissioner shall not count children whose attendance is attributable to activities of the United States carried on in connection with real property which has been excluded from the definition of Federal property by the last sentence of paragraph (1) of section 9, but shall count as an increase directly resulting from activities of the United States an increase in the number of children who reside on Federal property or reside with a parent employed on Federal property."

SEC. 5. Subsection (d) of section 4 of such act is amended to read as follows: "Adjustment for certain decreases in Federal activities

"(d) Whenever the Commissioner determines that

"(1) a local educational agency has made preparations to provide during a fiscal year free public education for a certain number of children to whom subsection (a) applies;

"(2) such preparations were in his judgment reasonable in the light of the information available to such agency at the time such preparations were made; and

"(3) such number has been substantially reduced by reason of a decrease in or cessation of Federal activities or by reason of a failure of any such activities to occur,

the amount to which such agency is otherwise entitled under this section for such year shall be increased to the amount to which, in the judgment of the Commissioner, such agency would have been entitled but for such decrease in or cessation of Federal activities or the failure of such activities to occur, minus any reduction in current expenditures for such year which the Commissioner determines that such agency has effected, or reasonably should have effected, by reason of such decrease in or cessation of Federal activities or the failure of such activities to occur."

SEC. 6. Subsection (b) of section 5 of such act is amended to read as follows:

"Payment

"(b) The Commissioner shall, subject to the provisions of subsection (c), from time to time pay to each local educational agency, in advance or otherwise, the amount which he estimates such agency is entitled to receive under this act. Such estimates shall take into account the extent (if any) to which any previous estimate of the amount to be paid such agency under this act (whether or not in the same fiscal year) was greater or less than the amount which should have been paid to it. Such payments shall be made through the disbursing facilities of the Department of the Treasury and prior to audit or settlement by the General Accounting Office."

SEC. 7. Subsection (c) of section 5 of such act is amended to read as follows: "Adjustments where necessitated by appropriations

"(c) If the funds appropriated for a fiscal year for making the payments provided in this act are not sufficient to pay in full the total amounts to which all local educational agencies are entitled, the Commissioner shall, subject to any limitation contained in the act appropriating such funds, allocate such funds, other than so much thereof as he estimates to be required for section 6, among sections 2, 3, and 4 (a) in the proportion that the amount he estimates to be required under each such section bears to the total estimated to be required under all such sections. The amount thus allocated to any such section shall be available for payment of a percentage of the amount to which each local educational agency is entitled under such section (including, in the case of section 3, any increases under subsection (c) (2) thereof), such percentage to be equal to the percentage which the total funds available for the fiscal year for all such sections is of the total of the amounts the Commissioner estimates to be required under all such sections. In case the amount so allocated to a section for a fiscal year exceeds the total to which all local educational agencies are entitled under such section for such year or in case additional funds become available for carrying out such sections, the excess, or such additional funds, as the case may be, shall be allocated by the Commissioner, among the sections for which the previous allocations are inadequate, on the same basis as is provided above for the initial allocation."

SEC. 8. (a) Section 6 of such act is amended by inserting "(a)" after "SEC. 6."

(b) Such section is further amended by striking out the second sentence and inserting the following in lieu thereof: "To the maximum extent practicable, the local educational agency, or the head of the Federal department or agency, with which any arrangement is made under this section shall take such action as may be necessary to insure that the education provided pursuant to such arrangement is comparable to free public education provided for children in comparable communities in the State, or, in the case of education provided under this section outside the continental United States, Alaska, and Hawaii, comparable to free public education provided for children in the District of Columbia. For the purpose of providing such comparable education, personnel may be employed without regard to the civil-service or classification laws."

(c) Such section is further amended by adding at the end thereof the following

new subsections:

"(b) In any case in which the Commissioner makes such arrangements for the provision of free public education in facilities situated on Federal property, he may also make arrangements for providing free public education in such facilities for children residing in any area adjacent to such property with a parent who, during some portion of the fiscal year in which such education is provided, was employed on such property, but only if the Commissioner determines after consultation with the appropriate State educational agency (1) that the provision of such education is appropriate to carry out the purposes of this act, (2) that no local educational agency is able to provide suitable free public education for such children, and (3) in any case where in the judgment of the Commissioner the need for the provision of such education will not be temporary in duration, that the local educational agency of the school district in which such children reside, or the State educational agency, or both, will make reasonable tui

tion payments to the Commissioner for the education of such children. Such payments may be made either directly or through deductions from amounts to which the local educational agency is entitled under this act, or both, as may be agreed upon between such agency and the Commissioner. Any amounts paid to the Commissioner by a State or local educational agency pursuant to this section shall be covered into the Treasury as miscellaneous receipts.

"(c) In any case in which the Commissioner makes arrangements under this section for the provision of free public education in facilities situated on Federal property in Puerto Rico, Guam, Wake Island, or the Virgin Islands, he may also make arrangements for providing free public education in such facilities for children residing with a parent employed by the United States, but only if the Commissioner determines after consultation with the appropriate State educational agency (1) that the provision of such education is appropriate to carry out the purposes of this act, and (2) that no local educational agency is able to provide suitable free public education for such children.

"(d) The Commissioner may make an arrangement under this section only with a local educational agency or with the head of the Federal department or agency administering the Federal property on which the education is to be provided. Arrangements may be made under this section only for the provision of education in facilities situated on Federal property.

"(e) To the maximum extent practicable, the Commissioner shall limit the total payments made pursuant to any such arrangement for educating children within the continental United States, Alaska, or Hawaii, to an amount per pupil which will not exceed the per pupil cost of free public education provided for children in comparable communities in the State. The Commissioner shall limit the total payments made pursuant to any such arrangement for educating children outside the continental United States, Alaska, or Hawaii, to an amount per pupil which will not exceed the amount he determines to be necessary to provide education comparable to the free public education provided for children in the District of Columbia.

"(f) In the administration of this section, the Commissioner shall not exercise any direction, supervision, or control over the personnel, curriculum, or program of instruction of any school or school system."

SEC. 9. Subsection (d) of section 8 of such act is amended to read as follows:

"(d) No appropriation to any department or agency of the United States, other than an appropriation to carry out this act, shall be available during the period beginning July 1, 1954, and ending June 30, 1956, for the employment of teaching personnel for the provision of free public education for children in any State or for payments to any local educational agency (directly or through the State educational agency) for free public education for children, except that nothing in the foregoing provisions of this subsection shall affect the availability of appropriations for the maintenance and operation of school facilities (1) on Federal property under the control of the Atomic Energy Commission or (2) by the Bureau of Indian Affairs."

SEC. 10. (a) The second sentence of section 9 (1) of such act is amended to read as follows: "Such term includes real property which is owned by the United States and leased therefrom and the improvements thereon, even though the lessee's interest, or any improvement on such property, is subject to taxation by a State or a political subdivision of a State or by the District of Columbia." The last sentence of such section 9 (1) is amended by striking out "Such" and inserting in lieu thereof "Notwithstanding the foregoing provisions of this paragraph, such."

(b) Section 9 (8) of such act is amended by inserting immediately after the words "Puerto Rico," the words "Guam, Wake Island,".

SEC. 11. Such act is amended by adding at the end thereof the following new section: "Election to receive certain payments with the respect to education of Indian children

"SEC. 10. (a) The Governor of any State may elect to have the provisions of this section apply with respect to such State for the fiscal year ending June 30, 1955, or the succeeding fiscal year. Notice of such an election shall be filed with the Secretary of the Interior and with the Commissioner of Education (1) before January 1, 1954, in the case of an election for the fiscal year ending June 30, 1955, and (2) before January 1, 1955, in the case of an election for the fiscal year ending June 30, 1956.

"(b) Whenever the Governor of a State has made such an election and has so filed notice thereof, then with respect to such State for the fiscal year for which such election was made

"(1) an Indian child who does not meet the requirements of clause (1) of section 3 (a) shall be deemed to meet such require

"(2) Subsections (b) (1) and (c) of section 2, and the second sentence of subsection (d) of such section 2; and

"(3) Section 8.

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(c) The amendments made by subsection (c) of the first section and subsection (a) of section 10 shall become effective as of July 1, 1952. Any unobligated portion of appropriations made for the fiscal year ending June 30, 1953, for payments to local educational agencies as authorized by the act of September 30, 1950, shall be available during the fiscal year ending June 30, 1954, to carry out such amendments with respect to the fiscal year ending June 30, 1953."

Mr. McCONNELL. Mr. Chairman, will the gentleman yield?

Mr. HOSMER. I yield.

Mr. McCONNELL. I have discussed this amendment with my colleagues on this side and I believe the same feeling prevails on the other side-they can speak for themselves-but, as far as our side is concerned, we are quite willing to accept the amendment.

Mr. HOSMER. I thank the distinguished gentleman and his committee

shock when the Department of Health, Education, and Welfare notified the district of a legal interpretation which threatens to cut off Federal aid received under the provisions of Public Law 874 by an estimated $70,000.

This decision that school funds must be cut was based on a new interpretation of Federal property contained in the act. This definition reads as follows:

SEC. 9. (1) The term "Federal property" means real property which is owned by the United States or is leased by the United States, and which is not subject to taxation by any State or any political subdivision of a State.

In Boulder City the Federal Government has entered into leases with the local residents on the ground covering their homes or businesses. The amount of acreage covered by these leaseholds amounts to approximately 674 acres out of a total of 67,200 acres in the Federal reservation, or just about 1 percent of belongs to the United States and is not the total. Of course, this leased land

employed on non-Federal property; and "(2) notwithstanding the second sentence of section 9 (2), the term 'child' as used in this act (other than section 6) shall be deemed to include an Indian child.

"(c) As used in this section, the term 'Indian child' means any child of one-fourth or more degree of Indian blood who is recognized as such under the laws of the United States relating to Indian affairs."

SEC. 12. (a) Except where a different effective date is specified, the amendments made by the preceding sections of this act shall become effective July 1, 1954. In the case of any local educational agency which was entitled to payments for the fiscal year ending June 30, 1954, under section 4 (a) of the act of September 30, 1950, as in effect prior to the enactment of this act, with respect to an increase in average daily attendance occurring in such fiscal year, such agency shall be entitled to payments for the fiscal year ending June 30, 1955, in accordance with the provisions following clause (B) of such section as amended by this act; and for such purpose the amount to which such agency was so entitled for the fiscal year ending June 30, 1954, shall be deemed to be the product referred to in such section as amended by this act.

(b) The amendments made by the following provisions of this act shall become effec

tive as of July 1, 1953:

this connection.

Mr. BARDEN. Mr. Chairman, may I Mr. Chairman, may I say that I have no opposition to the amendment. We have discussed it quite fully and, so far as I know, the Members who are present have no objection, so we, too, accept the gentleman's amend

ment.

Mr. YOUNG. Mr. Chairman, I ask unanimous consent to extend my remarks at this point in the RECORD.

The CHAIRMAN. Is there objection to the request of the gentleman from Nevada.

There was no objection. Mr. YOUNG. Mr. Chairman, I rise in support of the amendment offered by the gentleman from California. If this amendment or similar legislation is not adopted, it will be necessary to severely curtail the activities of several schools located in the Boulder City School District in southern Nevada. I should like to briefly outline for the Members of the House the problem that is faced by these schools.

Boulder City, Nev., is a Federal municipality located a few miles north of Hoover Dam. Boulder City is operated

(1) Subsections (b) and (c) of the first by the Bureau of Reclamation and consection;

(2) Subsections (b) (1) and (c) of section 2, and the second sentence of subsection (d) of such section 2;

(3) Section 8; and

(4) Subsection (a) of section 10.

Mr. McCONNELL (interrupting the reading). Mr. Chairman, I ask unanimous consent that the bill may be considered as read, be printed in the RECORD, and be open to amendment at any point. The CHAIRMAN. Is there objection to the request of the gentleman from Pennsylvania?

There was no objection.

tains the headquarters of several Federal agencies which are concerned with the operation of Hoover Dam and the Lake Mead area. It is also the regional headquarters of the Bureau of Reclamation. It also has a Bureau of Mines experimental station and the National Park Service within its city limits.

Prior to the passage of Public Law 874, the Boulder City School District, lying wholly within a Federal reservation of 67,200 acres, received a direct appropriation in the annual Department of Interior appropriation bill. Upon the passage of Public Law 874, the direct ap

Mr. HOSMER. Mr. Chairman, I offer propriation was discontinued. It was

an amendment.

The Clerk read as follows:

Amendment offered by Mr. HOSMER: Page 21, strike out lines 12 to 19, inclusive, and insert in lieu thereof the following:

"(b) The amendments made by the following provisions of this act shall become effective as of July 1, 1953:

felt that any Federal assistance should be administered under the provisions of the newly enacted legislation.

Since September 1950, when Public Law 874 was passed, the Boulder City schools have been doing an excellent job. However, several weeks ago the Boulder

"(1) Subsection (b) of the first section; City School District received a severe

interest held by a private citizen is taxable, and Clark County has applied a school tax on the possessory interest in these leaseholds. The lawyers in the Department of Health, Education, and Welfare have now held that, by so doing, the county has eliminated all these leased lands from being considered in determining the entitlement of the local

schools under Public Law 874. While these 674 acres constitute only about 1 percent of the total acreage in the Federal reservation, this leased property generates over one-half of the local enrollment in the schools. Thus, under this new interpretation the Boulder City schools stand to lose an estimated $70,000 in Federal funds because of a leasehold tax which returns approximately $2,600 per year to the county.

I wish to emphasize that unless this amendment or similar legislation is adopted, these schools will have to severely curtail their operations or possibly close down. There is absolutely no other source of revenue open to them. The unfortunate position in which the citizens of Boulder City find themselves today cannot be blamed on the Boulder City School District or the State of Nevada. It arises simply because Boulder City is a wholly owned and operated Federal installation that is dependent almost entirely for educational assistance on the Federal Government. It is my feeling that the interpretation of law made by the Department of Health, Education, and Welfare is ill advised and not in keeping with the spirit of the law or with the intent of Congress. It is

rather defeating the purpose of the law which was designed to provide for the

educational needs of children on Federal lands. I urge the adoption of this amendment.

The CHAIRMAN. The question is on the amendment offered by the gentleman from California [Mr. HosMER]. The amendment was agreed to. Mr. ROGERS of Colorado. Mr. Chairman, I offer an amendment. The Clerk read as follows: Amendment offered by Mr. ROGERS of Colorado: Page 4, line 17, after "or both", strike