4

Accelerated amortization of defense facilities, for holders of certificates

of necessity. Specific concessions to small business under the Technical Amendments

Act of 1958.
Liberalized depreciation schedules.

Tax credits to modernize plants and machinery.
Authorized deductions on income tax computations are of particular

assistance to particular groups of individuals, such as borrowers

(including home mortgagors), the elderly, blind, and sick. Any reduction in taxes will, of course, benefit certain individuals

and firms more than others.

IV. INDIRECT ASSISTANCE TO SPECIFIC ECONOMIC GROUPS

Financing of highway construction, costs of which may be borne

unequally, resulting, some maintain, in a subsidy to the trucking

industry. Financing of airport construction. Construction of air navigation aids: Traffic control equipment,

weather reporting facilities, radio beams, instrument landing

systems. Improvements to harbors, dredging of rivers, construction of canals,

and assisting in financing construction of canals, and marine naviga

tional aids. Protective tariffs. Government purchase restrictions under the Buy American Act. Reserving coastal trade and trade with noncontiguous areas of the

United States to American-flag shipping. Cargo preference: Several laws stipulating various kinds of cargo

preference; e.g., requiring goods purchased for the Army and Navy, exports financed by Government loans, and half of foreign aid shipments to be transported in American-flag vessels.

Department of Labor: Bureau of Labor Stati:
Department of the Interior: Bureau of Mines
Post Office Department.
Treasury Department: Internal Revenue Ser
Board of Governors of the Federal Reserve S
Civil Aeronautics Board.
Federal Communications Commission.
Federal Trade Commission.
Housing and Home Finance Agency.
Interstate Commerce Commission.

Securities and Exchange Commission.
Maps, charts, and aids to navigation by the C

Survey and Geological Survey. Crop estimates by the Crop Reporting Service. Weather forecasts by the Environmental Servi

(weather bureau). Scientific and indústrial research by such agenci

Bureau of Standards, Geological Survey, Bure Service, Fish and Wildlife Service, Tennessee Bureau of Public Roads, Department of Agr

Drug Administration, and the Atomic Energy ( Certain postal services provided free and various

such as second- and third-class mail and rural fi Management and technical assistance to small k

redevelopment agencies. Assistance to small business in obtaining Govern Protection against sawtimber fires on privately o Land grants and land sales to U.S. citizens. Construction and assistance in maintaining prin

roads.

V. GOVERNMENT Economic PROGRAMS WITH INCIDENTAL

ECONOMIC EFFECTS SIMILAR TO THOSE OF SUBSIDIES

Letting of Government contracts for supplies, research, and develop

ment, etc. Special provisions favoring (1) small businesses and (2) depressed

areas in awarding of Government contracts. Disposal of surplus property, e.g., manufacturing plants, ships, and

many other items, at less than market value. Stockpiling of minerals and other strategic materials. Silver purchasing.

VII. LENDING AND LOAN GUARANTEE P:

FEDERAL AGENCIES
A. Direct loan programs
Department of Agriculture:

Rural Electrification Administration: Loans,

tives, to provide electric power and telepho Farmers Home Administration: Loans to fari

the family-type farm and encourage better include operating, ownership, rural hous emergency loans. Loans are also made fr and sewage systems, small watershed proje

housing. Commodity Credit Corporation: Loans to

modities as collateral. Department of Commerce: Economic Developm

Loans for industrial, commercial, and public fad

ment areas. Department of Health, Education, and Welfare:

Office of Education: Loan funds for student

struction, and acquisition of teaching equip

VI. FREE SERVICES OR SERVICES Below Cost, OFFERED BY THE

FEDERAL GOVERNMENT

Statistical information of many kinds of importance to business,

industry, and labor. The more important Federal agencies furnishing statistical services free or at small charge to the public are:

Department of Agriculture.
Department of Commerce: Bureau of the Census; Office of

Business Economics.

VIII. INSURANCE PROGRAMS UNDERTAKEN B

GOVERNMENT

Department of Stute:

Agency for International Development: Loans to promote multilateral trade and economic development and other loans to develop resources of underdeveloped nations, by use of funds derived from export sale of U.S. agricultural commodi

ties. Department of the Interior:

Bureau of Commercial Fisheries: Loans to fisheries. Export-Import Bank: Loans to finance exports and imports and to

promote economic development in lesser developed countries." Housing and Home Finance Agency:

Federal National Vortgage Association: Purchase of Govern

ment-insured mortgages Urban Renewal Administration: Loans to local public agencies for

slum clearance and urban renewal projects.! Community Facilities Administration: Construction loans for college

housing, for public facilities, and for facilities for the elderly. Public Housing Administration: Loans to local authorities for con

struction of low-rent public housing.' Office of Economic Opportunity:

Loans to combat poverty in rural areas.
Loans to small businesses and individuals interested in estab-

lishing small businesses. Small Business Administration:

Business loans to small businesses.
Disaster loans to small businesses.
Purchases of debentures of and loans to small business invest-

ment companies.

Loans to State and local development companies. Veterans' Administration: Direct housing loans in rural areas and

small towns. B. Loan guarantee and insurance programs Housing and Home Finance Agency, Federal Housing Administration:

Insures wide range of real estate loans. Veterans' Administration: Housing, business, and farm loans to

veterans guaranteed. Farmers Home Administration: Insures farm ownership and soil and

water conservation loans. Commodity Credit Corporation: Private loans on commodities

guaranteed. Maritime Administration: Guarantees private construction loans and

mortgages on most types of passenger and cargo-carrying vessels. Civil Aeronautics Board: Guarantees loans for aircraft purchases by

local air services and other small airlines. Interstate Commerce Commission: Guarantees loans to railroads for

certain purposes under Transportation Act of 1958. Defense Production Act (sec. 301): Authorizes guarantees by various

agencies on loans to defense contractors and subcontractors. Export-Import Bank. Small Business Administration.

Agricultural crop insurance: Federal Crop Insura Bank deposit insurance: Federal Deposit Insurang Savings and loan association deposit insurance:]

Loan Insurance Corporation. Federal employees group life insurance: Civil Seri Federal employees civil service retirement insur

Commission. Health insurance for Federal employees (parti

Service Commission. U.S. Government life insurance: Veterans' Admin National service life insurance: Veterans Adminis Veterans' special term life insurance: Veterans' A Old-age and survivors insurance: Bureau of Old

Insurance. Disability insurance: Bureau of Old-Age and Surv Service-disabled veterans' insurance: Veterans' Ad Unemployment insurance (jointly with the States)

ment Security. Railroad unemployment and sickness insurance: I

Board. Maritime war risk insurance: Varitime Administr Aviation war risk insurance: Department of Comi IX. FEDERAL GRANTS-IN-AID PAYMENTS TO:

GOVERNMENTS, Fiscal YEAR 1 Department of Agriculture:

Basic scientific research grants.
Child nutrition progrims.
Commodity Credit Corporation.
Consumer and Marketing Service: Meat and
Cooperative agricultural extension work.
Cooperative projects in marketing,
Cooperative State research services.
Cropland adjustment program (Greenspan).
Food stamp program.
Forest protection, utilization, and restoration
Nationa! forest and school funds: Shared revi
National grasslands: Shared revenues.
Commodity distribution program.
Rural and municipal water and waste disposi
School milk program.
Watershed protection, flood prevention, and

tion and development.
Department of Commerce:
Economic Development Administration:

Development facilities grants.
Economic development center and te

assistance.
Planning and research.
State Technical Services.

2

Currently sell-supporting. ? Several of these programs do not now involve net losses to the Federal Government. Insurance and loan guarantee programs involve Federal commitments which could result in losses to the Government at some future time. These programs are in the nature of subsidies in the sense of providing insurance or loan guarantee services not available or available only at higher cost from private enterprise.

Department of Defense:
Department of the Army:

Civil Defense.
Flood control lands: Shared revenues.

National Guard centers: Construction.
Federal Power Commission: Payments to States under Federal Power

Act-shared revenues.
Funds appropriated to the President:

Accelerated public works program.
Appalachian regional development programs.
Disaster relief and State and local preparedness.
Office of Economic Opportunity:

Adult work training and development.
Community action programs.
Neighborhood Youth Corps.

Work experience and training:
Department of Health, Education, and Welfare:
Office of Education:

American Printing House for the Blind.
Arts, humanities, and educational broadcasting activities.
Colleges of agricultural and the mechanical arts.
Construction:

Assistance to public schools.

Higher educational activities.
Cooperative vocational education.
Defense educational activities.
Educational improvement for the handicapped.
Elementary and secondary educational activities.
Equal education opportunities program.
Higher educational activities.
Library construction and community services.
Schools in federally affected areas.

Teacher Corps.
Public Health Service:

Air pollution.
Chronic disease.
Communicable disease activities.
Community health services.
Comprehensive health planning services.
Construction: Hospital, health education, and health re-

search facilities.
Control of tuberculosis and venereal diseases.
Dental and nursing resources and services.
Health manpower education and utilization.
Mental health research and services.
Regional medical programs.

Urban, industrial, and radiological health.
Social and Rehabilitation Service:

Administration on Aging.
Maintenance payment grants.
Maternal and child health and welfare services.
Medical assistance grants.
Mental retardation.
Public assistance grants.

Department of Health, Education, and Welfare-
Social and Rehabilitation Service Continue

Rehabilitation services and facilities gra
Social services training and demonstrati

Work incentive activities.
Department of Housing and Urban Development

Low-income housing demonstration program
Low-rent public housing.
Metropolitan development.
Model cities program.
Neighborhood facilities.
Open space land grants.
Urban planning assistance.
Urban renewal.
Urban transportation.

Water and sewer facilities.
Department of the Interior:

Bureau of Indian Affairs.
Commercial fisheries research and developme
Federal Water Pollution Control Administra

Waste treatment works construction.

Water supply and pollution control.
Fish and wildlife restoration and managemer
Land and water conservation fund.
Mineral Leasing Act payments: Shared rever

National wildlife refuge fund.
Department of Justice: Law enforcement assistan
Department of Labor:
Manpower development:

Training allowances.

Classroom instruction.
Unemployment compensation and employme

tration.
National Foundation on the Arts and the Human
Tennessee Valley Authority: Shared revenues.
Department of Transportation:
Federal Highway Administration:

Beautification.
Forest and public land highways.
Highway safety.
Highway trust fund.
Landscaping and scenic enhancement.

Urban Nass Transportation Administra
Veterans' Administration.
Water Resources Council.

X. FEDERAL AID PAYMENTS TO INDIVIDUALS,

STATES
Department of Agriculture:

Agriculture conservation program.
Commodity Credit Corporation.
Conservation reserve program.
Cropland adjustment program.
Cropland conversion program.
Great Plains conservation program.