A(iKl( I I/l L i:.\l. AriMtdl'KIAl ION lUl.U IWM. 375 



up tlioir fuiuls witJj ronsonahlf proinptiu'Ks rHii.HC (Vnijrri's.H to )n>Iicvo 

 that there an' avnihihlr funds for cnrrvin^ on a pn»^rain mMirnillv all 

 over the I'nitrd Statrs. whilr, as a rnatt»T of fart l|n>^«> tuilaiircs uri' 

 actually available for the most part withui a verv few SluteH. 



Mr. lirniANAN. \a*[ me hco if I understand v«»u: ('on^jreH« Iih-h 

 adopte<l a thn-e-year |)«'riod as the average, and t1ie States ran lake 

 their proportion of tin* money approf)riated within that period of 

 time '. 



Mr. MacDona!,!). Yes. sir. 



Mr. BrcHANAN. We will say that hve Stales during; the first vear 

 fail to take up Si .00(1. ()()() (»f their respective allotments for that 

 vear: Then then* will aeeumulate m the Treasurv for ihr fiiNt vear 

 i;5.()()().()()(). for the second year $.').()()().()(>(). auiifor the third year 

 S'). ()()().()()(), making at the end of the thn'c-year period S;1.'».0((().(M)(» 

 that would revert to the Treasiu'V, if the States faile«l to take up those 

 amounts durini; that three-year period. Is that true^ 



Mi-. Ma('I)().\ali>. No, sir. 



Mr. Bl cilANAN. Then what would heconu* of that moneys We 

 will say that live States fail to take up .SI .ooo.ooi) ea«h of their 

 allotnuMits for the three-vear perio<l. and I want to know what 

 becomes of that SI. ").<)()(), ()(')(). 



Mr. MacDonai.d. \\ the en<l of the three-year period, the first 

 S"), 000, 000 wouUl <;o hack into the 'I'reasurv, and he reapportioned 

 ainonfT the States that ha<l jjone ahead. It wouhl be lost for that 

 individual State, but not lost to the total fund. 



Mr. Bi'CHANAN. Then the S-'>,000,00() wouM rcMiain in the Trt-asury 

 for three years ( 



Mr. MacDonali). Yes. sir. 



Mr. BrcHANAN. Before it would he allotted to the other States^ 



Mr. MacDonali). Yes, sir. Then the next S."). 000. 000 would be 

 available for the next three-year period. 



Mr. Buchanan. Then it would be reallotted at the end of the 

 fourth year ^ 



Mr. MacUonald. Yes. sir. 



Mr. Blxhanan. And the last $5,000,000 would be reallotted at 

 the end of five years to the other States that took their appropria- 

 tions ( 



.STATES TAKE LP ALLOTMENT BEFORE THREE-YEAR LIMIT E.\PIRE». 



Mr. MacDonald. Y^es, sir. What actually happens is that the 

 States can he three years behind, but if they put in their project 

 agreements and have their contracts sijjncd up by the end of the fiscal 

 year durinj; which that particular allotment would lapse, they 

 can continually hold on to their funds. They can work two years 

 behind the average, and still hold their funds. There have been no 

 funds to lapse for any State yet. ami I do not think there will be. 

 because all of them are proceeding at a sulJicicnt rat(> to comi^ within 

 the three-year limit. 



Mr. Bi'CHANAN. The provision recpiiring that procedure is em- 

 bodied in th(^ law ^ 



Mr. MacDonald. Y^es, sir. Taking the balance which we should 

 have in the Treasury at the end of this fiscal year, and a.ssuming that 

 all the States draw all of the Federal aid that they have earned, 

 and we think thev will earn as much as thev did hvst vear. we would 



