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three levels of government-local, State, and Federal. Here are a few of the more prominent national purposes underlying the provision of Federal funds for education.


1. To encourage and develop specific educational programs that are vital to the national health and welfare.

2. To contribute to the education of children where there is a direct Federal responsibility, such as for those residing on Federal properties, in communities affected by Federal activities, or where Federal ownership of property deprives local school authorities of normal tax


3. To provide educational services essential to the national defense, but which are not the responsibility of any local community, State, or segment of the population.

4. To assist the States and communities to study school housing problems created by unusually high birth rates and shifts in population which demand educational efforts that are burdensome under these conditions.

5. To promote the exchange of information and of students, teachers, professors, technicians, and leaders with other countries, for the improvement of international relationships.

6. To assist able students in obtaining higher education where limited means would deprive the individual of training that may serve a national interest.

7. To promote the general welfare of the Nation through research that will develop new areas of learning and train more scientists.

References to these and many other purposes underlying the national interest in education are to be found in the Public Laws that provide Federal funds for educational programs which the people believe to be essential for the national welfare. Some other purposes might be gleaned from the many bills introduced in Congress at recent sessions. These may become significant purposes for the future and indicate national trends. One such purpose taken from bills proposing Federal aid for elementary and secondary education would be: To supply essential funds to the States which are financially unable to maintain a level of education that is acceptable to the Nation. This might be designated as an equalization purpose.



No single method of distributing Federal funds appears to be preferred. The public laws have described many different ways of distributing or expending Federal funds for educational and related activities. Methods have been adapted to the kinds of aids

and to the purposes of the Congress in providing the funds. Some of the distribution enactments have provided for Federal funds to be: (1) alloted on the basis of land areas; (2) distributed in proportion to population figures; (3) awarded to the States as flat grants; (4) given on condition that matching amounts are provided from State and local sources; (5) provided as the cost of a special program or of operating a school; (6) apportioned to meet obligations such as payments in lieu of taxes on federally owned property; (7) allocated as equalization aid to provide greater assistance to the financially weaker areas; (8) granted to cover the cost of tuition and of other educational expenses of individuals; and (9) granted on a contractual basis for research programs in various colleges, universities, and industries.

All of these nine methods of distributing Federal funds for education may be noted among the approximately 180 different Federal activities summarized in the report of the Hoover Commission and in the more recent report on about 275 activities in education presented by the Legislative Reference Service of the Library of Congress. Some Federal programs employ a combination of two or more methods. Instances of the use of these methods in the various Federal programs in education are noted in the following paragraphs.


Federal assistance for the early development of public education in the States was given in proportion to land areas. For example, Congress granted to several States the sixteenth section of each township from the public domain to help with the establishment and operation of a system of education. Under this plan of granting aid, about three-fourths of the States received assistance somewhat proportioned to the areas.


First Federal grants for the establishment of colleges of agriculture and mechanic arts were roughly proportioned to the population. A provision of the Morrill Act of 1862 authorized grants of 30,000 acres to the States for each Senator and each Representative in Congress. Since the numbers of Representatives were determined in proportion to the population, these Federal grants were larger for the more populous States. Population has also been used in determining amounts of Federal assistance for vocational education, agriculture experiment stations, and agricultural extension services.

Numbers of children from 5 to 17 years of age, pupil enrollment figures, and average daily attendance are sometimes used as refined measures of population data. For example, numbers of children of

school age are used in the distribution of school lunch funds and they were employed in the allotment of funds for the school facilities survey. Similarly, average daily attendance data are used in determining allocations of Federal funds for assistance to the schools in federally affected areas.


The allocation of equal amounts to the States annually is described as a flat-grant procedure. This method of distribution has been employed in allotting funds to land-grant colleges, to agricultural experiment stations, and to the agricultural extension service. Frequently, this kind of distribution is used in conjunction with some other base so that States receive Federal aid in proportion to the size of the educational project, but no State receives less than a certain minimum. In accomplishing this purpose, a portion of the appropriated funds are allotted by the flat-grant procedure and additional grants are calculated in recognition of some other measures of obligation or need.


Several of the enactments appropriating Federal funds for educational purposes have contained provisions requiring that State and local revenues be expended for the same purpose at least to the extent that funds are supplied from Federal sources. This dollar for dollar matching is required as a minimum from nonfederal sources. Many States and local school districts provide more than the minimum amounts. Typical of Federal aid programs which employ matching at a dollar for dollar or some other rate are those for vocational education, for agricultural experiment stations, and for school lunches.


The Congress has often appropriated funds to cover the full cost of establishing and operating a service it regarded as essential or as the exclusive responsibility of the Federal Government. This is true for such educational projects as the Military Academy, the Naval Academy, the Federal Merchant Marine Schools, Howard University, and schools for Indians. The Federal Government has also paid the full costs of operating other programs such as those for veterans' education, school savings, surplus property utilization, and certain parts of the program for vocational rehabilitation.


Aid to public education which is provided as an obligation of the Federal Government arising from the nontaxable status of federally owned property, can be regarded as payment in lieu of taxes.

Such property was probably taxed prior to the Federal acquisition. The consequent loss of normal taxes on the property under Federal ownership reduces the local government funds available for public education. The change is frequently accompanied by an increase in the educational load.

Some Federal payments in lieu of taxes are not exclusively for schools, but are also for other services of local government. Funds appropriated by Congress in recent years to help communities affected by war activities have been distributed partially in recognition of the tax loss on federally purchased property.


Funds which are allocated so that proportionately larger amounts are given to the financially less able States are classified as equalization aids. This plan is used to a certain extent in the distribution of Federal funds for school food services. The National School Lunch Act, described on page 59, provides for lower State and local matching rates in States having lower per capita income payments to individuals. This provision secures larger shares for the less wealthy States and produces some equalization.

Bills considered by Congress over the past 10 years would indicate that there is a national interest in more equalization aids. According to the distribution formulas included in some of these bills, Federal funds allocated to the States for the program of elementary and secondary education, would be roughly inversely proportional to State financial ability. Equalization aid of this kind would help the States to establish more satisfactory foundation programs of education.


The Federal Government is operating a number of programs in which the cost of tuition and other expenses related to attending school are allowed from Federal funds. Probably the most noteworthy is the large program for veterans' education described in chapter V. Here, the Federal Government pays tuition to the institution; makes allowances for books, equipment, and supplies; and provides a subsistence allowance to the student. Similar allowances for tuition, subsistence, and travel expenses are paid to individuals in the teacher and student exchange programs of the State Department. Individuals in many branches of the Federal service also qualify for tuition, salary, and expense allowances while they are attending universities to prepare themselves for more important services to the Nation.


The Department of Defense, the Atomic Energy Commission, and other Federal Offices have contracted for important programs of research to be conducted by colleges, universities and industries. These programs seek new facts and new developments, and they are also interested in the selection and training of scientists. The procedure of contracting with an educational institution for research illustrates one other method that is used by the Federal Government in allocating funds for education.


In citing examples of the various methods of distributing Federal funds for education some programs are mentioned more than once. For instance, the funds allocated for school lunches use at least three methods. Amounts for the States are determined partially on the basis of numbers of children of school age; they can be approved only if they are matched by State and local funds; and they are proportionately larger for the States having low per capita income payments to individuals. In a similar way several of the Federal funds for education are allocated in accordance with more than one basis for distribution. Congress adopts the methods for each aid, which appear to be most effective in obtaining the maximum educational value from each appropriation.


Federal funds for educational programs may be separated into two groups. In one, would be grouped the funds expended on educational programs that are national in scope. They are not the obligation of any States or segment of the population and cannot be reported State by State. Examples of these are the appropriations for the operation of military schools and academies. Other funds, including allotments for veterans education, assistance to the federally affected school districts, and aid for vocational education can be separated into amounts which are allocated to the various States and Territories.

Both of these kinds of reports are included. Those in the first group indicate the level at which the Federal Government is supporting national programs, while those in the second group provide answers to the question. "How much Federal assistance did our State receive"?

Interest in the extent and adequacy of Federal assistance to the States for educational programs has increased in recent years. Evidence on this is contained in the many bills proposing Federal

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