Coordination Efforts of States Described by ACE President Wilson - Volume 15 - Number 40 - American Council on Education - Dec. 3, 1966

Sep 21, 2026

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Federal fiscal 1967 budget reductions ordered by President Johnson cut $5.3 billion from Federal programs, exceeding earlier estimates by over $2 billion, with specific impacts on higher education. Health, Education, and Welfare reductions include $530 million in programs and $275 million in expenditures, with delays for construction and other expenditures. Additional disclosed cutbacks cover allied health personnel, library support, and housing and urban development. The U.S. Office of Education awarded $1,500,184 to nine colleges and universities to address school desegregation through teacher and counselor institutes and related resource centers.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages12

Reading Time30 min

AccessFree to download

Federal Budget Cutbacks and Higher Education Impacts

Health, Education, and Welfare Reductions and Timing

Other Disclosed Cutbacks

Grants for School Desegregation Support

Nine Colleges and Universities Awarded Funding

Program Scope and Authorization

Higher EducationandNational Affairs Coordination Efforts of StatesDescribed by ACE President * * * First Business Firm AwardedContract for VISTA Training American Council on Education·1785 Massachusetts Avenue,N.W.,Washington 36,D.C. December 3,1966 Volume XV,Number 40 President Johnson this week ordered a fiscal 1967 budgetarycutback of $5.3 billion in Federal programs in an effort torestrain the nation's inflationary economy.The President'saction exceeded earlier estimates by more than $2 billion $5.3 Billion in FederalPrograms Cut by PresidentIn Anti-Inflation Effort (see Bulletin,Vol.XV,No.30)and included cuts affecting higher education programs. In making the announcement at his office in Austin,Texas,the President said:"I haveordered a fiscal 1967 budgetary cutback of $5.3 billion in Federal programs.With this re-duction,we plan to achieve a $3 billion cut in Federal spending for the current fiscal year....It is a combination of not asking for funds that were authorized,and not spending funds insome instances which were appropriated.Generally speaking,it is deferring expenditures,so that we do not shove them all into a period of seven months (remaining in the currentfiscal year)and continue to put gasoline on this fire (of inflation)." Exact details were not available from the White House or Federal agencies,but thePresident did spell out some programs,including those of major interest to higher educa-tion,to be affected. In the Department of Health,Education,and Welfare,there will be a reduction of$530 million in programs and $275 million in expenditures.The President said this wouldinclude a deferral of $22 million and a reduction of $3 million in higher education facilities.The $22 million is the difference between the $475 million the 89th Congress authorized forundergraduate facilities under Title I of the Higher Education Facilities Act and the $453 mil-lion it actually appropriated (see Bulletin,Vol.XV,Nos.36 and 37). An HEW spokesman,in commenting on the cutbacks,emphasized the President's state-ment about the timing of expenditures. HEW comptroller James F.Kelly said that each construction project,whether based ona Federal grant or loan,"will be permitted to proceed normally,except to the timing of itsrelease on the market."To avoid peaks of construction,he said,projects will be delayedI'from a month to three months.'" Also to be delayed at HEW are programs such as research and demonstration,anddepartmental expenditures such as travel,printing and purchasing of supplies. Other cutbacks disclosed by the President: ● A deferral of $21 million in programs and $10 million in expenditures in alliedhealth professional personnel programs. # Nine Colleges,UniversitiesTo Help Solve ProblemsOf School Desegregation National Aeronautical and Space Administration:A reduction of $60 million inprograms and $30 million in expenditures."This will require some adjustment in somecontracts that we entered into,maybe with some schools and others,that will requireadjusting,"the President said. ● Aid to libraries:No specific amount was revealed,but the President said cuts of$225 million in programs and $125 million in expenditures would be made "in a group in-cluding the Coast Guard,the National Air Museum,aid to libraries,Food for Peace,andSo on.I ● Housing and Urban Development:Cuts of approximately $1 billion.'We have$987 million in Federal programs,"the President said.I'We believe we can produce anexpenditure reduction of about $546 million.That will mostly be in the field of the add-onsof the Congress.We released $250 million but we had $1 billion.'" The U.S.Office of Education has awarded a total of $1,500,184 to nine colleges and universities which willconduct institutes to help teachers,counselors,and schoolsupervisors deal with problems of school desegregation. Four of the grants will support resource centers at colleges and universities to makeprofessional assistance ava

FAQs

What budget cut did President Johnson order for fiscal 1967?

President Johnson ordered a $5.3 billion reduction in Federal programs for fiscal 1967 to help restrain the nation’s inflationary economy.

Which higher-education-related areas were affected by the Health, Education, and Welfare cutbacks?

The document states reductions in HEW programs and expenditures, including impacts on higher education facilities and deferrals/delays affecting construction timing and other departmental spending.

How much funding did the U.S. Office of Education award, and for what purpose?

The U.S. Office of Education awarded $1,500,184 to nine colleges and universities to conduct institutes helping teachers, counselors, and school supervisors address problems of school desegregation.

Sep 21, 2026

Uploaded by Miles