education bringing it within the interest and attainment of vastly larger numbers of people than would otherwise have been reached. The whole realm of higher education in this country, and to a lesser degree even in some other countries, has been profoundly influenced by the developments of the land-grant colleges and universities in popularizing higher education. They have demonstrated the partnership of the Federal and State Governments in the maintenance of a system of higher education which is designed to fulfill Federal, State and local needs. They have spread widely the concept that higher education is something in which all the people have a stake. They have, therefore, a place of deep affection in the hearts of the people. They are growing in strength and influence with each passing decade.

Section II

Procedures for Administering Federal Funds for Instruction

AS PREVIOUSLY STATED, the funds for instruction are administered by the Federal Security Agency, Office of Education, and the funds for experiment stations and extension services by the U. S. Department of Agriculture. The following paragraphs will be concerned only with the funds for instruction on the campus.

Federal funds from two sources are used to help the States maintain instruction on the campus. First, the income from the original land grants or scrip (and in some States from subsequent land grants). This income now amounts to about 2 million dollars per year. While about a third of the States still have some of the original land remaining unsold, more than four-fifths 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. Minnesota derives more than half a million dollars annually, while several States derive less than two

thousand dollars. Only three States derive more than one hundred thousand dollars a year.

The handling of these funds is left to the States, subject to the conditions prescribed in Section 5 of the 1862 Act. (See Sec. III for text of the law.) Reports concerning the condition of the fund and the annual income derived are received each year by the Federal Security Agency, Office of Education.

The second source of Federal aid for instruction is the so-called supplementary Morrill Funds for which the Federal Government appropriates $5,030,000, annually. By the second Morrill Act of 1890, each State and the territories of Alaska, Hawaii, and Puerto Rico, receive $25,000. A like amount is provided by the Nelson amendment of 1907. By Section 22 of the Bankhead-Jones Act of 1935, an additional $20,000 was provided for each State and the territory of Hawaii, plus variable amounts from a total of $1,500,000 distributed on the basis of population. The 1890 and 1907 acts are "continuing" appropriations, requiring no congressional action each year. The 1935 act authorizes appropriations which Congress must act upon each year.

The procedure followed involves the following steps:

1. In the annual budget submitted by the Federal Security Agency, 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 Federal Security Administrator submits to the Secretary of the Treasury a certificate indicating the amount to which each State is entitled and the name of the 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. The principal limitation is that the fund must be used for teachers' salaries and/or teaching supplies. The departments of instruction to be aided are limited to agriculture, mechanic arts, English language, mathematics, natural and physical science, economic science, and teacher training.

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 departments 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 to 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 allowed departments.

Allotments to the several States for the year 1951-52 follow:

Variable grants from Bankhead-Jones Act as indicated in this tabulation, being a distribution of $1,500,000 on basis of population, 1950.

The Second Morrill Act and the Nelson Amendment make continuing appropriations. The Bankhead-Jones Act authorizes appropriations; the appropriations are made annually by the Congress.

1 Uniform grants to each State from Second Morrill Act, 1890, ($25,000); Nelson Amendment, 1907, ($25,000); and uniform State grant from Bankhead-Jones Act, 1935, ($20,000); total for each State, $70,000.

"The Negro land-grant college in this State receives a stipulated proportion of funds. Alaska and Puerto Rico do not participate in appropriations authorized by the Bankhead-Jones Act of June 29, 1935.

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, the administration of Federal funds for instruction in the land-grant colleges and universities was carried on by the Department of the Interior. By the Reorganization Act of April 3, 1939, and the President's Reorganization Plan of April 25, 1939, effective July 1, 1939, the Office of Education was transferred from the Department of the Interior to the Federal Security Agency. All the functions of the Secretary of the Interior relating to the administration of the Office of Education were transferred to the Federal Security Administrator. Hence, the legal authority for the administration of the Morrill Act of 1862 and its several amendments and supplements appropriating funds for instruction rests with the Federal Security Administrator. He exercises this authority through the United States Commissioner of Education and the Specialist for Land-Grant Colleges and Universities in the Office of 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.

SEC. 2. And be it further enacted, That the land aforesaid, after being surveyed, shall be apportioned to the several States in sections or subdivisions of sections, not less than one-quarter of a section; and wherever there are public lands in a State, subject to sale at private entry at one dollar and twenty-five cents per acre, the quantity to which said State shall be entitled shall be selected from such lands, within the limits of such State; and the Secretary of the Interior is hereby directed to issue to each of the States, in which there is not the quantity of public lands subject to sale at private entry, at one dollar and twenty-five cents per acre, to which said State may be entitled under the provisions of this act, land scrip to the amount in acres for the deficiency of its distributive share; said scrip to be sold by said States, and the proceeds thereof applied to the uses and purposes prescribed in this act, and for no other purpose whatsoever: Provided, That in no case shall any State to which land scrip may thus be issued be allowed to locate the same within the limits of any other State, or of any territory of the United States; but their assignees may thus locate said land scrip upon any of the unappropriated lands of the United States subject to sale at private entry, at one dollar and twenty-five cents, or less, an acre: And provided further, That not more than one million acres shall be located by such assignees in any one of the States: And provided further, That no such location shall be made before one year from the passage of this act.

SEC. 3. And be it further enacted, That all the expenses of management, superintendence, and taxes from date of selection of said lands, previous to their sales, and all expenses incurred in the management and disbursement of moneys which may be received therefrom, shall be paid by the States to which they may belong, out of the treasury of said States, so that the entire proceeds of the sale of said lands shall be applied, without any diminution whatever, to the purposes hereinafter mentioned.

SEC. 4 (as amended April 13, 1926, 44 Stat. L. 247). That all moneys derived from the sale of lands aforesaid by the States to which lands are apportioned and from the sales of land scrip hereinbefore provided for shall be invested in bonds of the United States or of the States or some other safe bonds; or the same may be invested by the States having no State bonds in any manner after the legislatures of such States shall have assented thereto and engaged that such funds shall yield a fair and reasonable rate of return, to be fixed by the State legislatures, and that the principal thereof shall forever remain unimpaired: Provided, That the moneys so invested or loaned shall constitute a perpetual fund, the capital of which shall remain forever undiminished (except so far as may be provided in section 5 of this act), and the interest of which shall be inviolably appropriated, by each State which may take and claim the benefit of this act, to the endowment, support, and maintenance of at least one college where the leading object shall be, without excluding other scientific and classical studies and including military tactics, to teach such branches of learning as are related to agriculture and the mechanic arts, in such manner as the legislatures of the States may respectively prescribe, in order to promote the liberal and practical education of the industrial classes in the several pursuits and professions in life.

SEC. 5. And be it further enacted, That the grant of land and land scrip hereby authorized shall be made on the following conditions, to which, as