The "Answer Desk" of President Ford's 1976 campaign committee, the President Ford Committee, compiled this fact book for use by persons campaigning on behalf of the President. It contains background information on the Fords and Senator Robert Dole, along with information on the President's programs, accomplishments, and views on issues.
The Ford Library staff scanned and converted to electronic form the September 8, 1976 version of the Fact Book (a March 5, 1976 version was used during the primaries). Throughout the Fact Book, the Answer Desk staff used underlining to emphasize major points. In converting this information for use on the Web, all underlined passages have been converted to italics and underlined headings have been converted to bold.
PRESIDENT FORD -- BACKGROUND
GERALD R. FORD, 38th President of the United States, was born in Omaha, Nebraska, July 14, 1913. He attended public schools in Grand Rapids, Michigan; received a Bachelor of Arts degree from the University of Michigan in 1935; and an LL.B. from Yale University Law School in 1941.
In 1942 he entered the U.S. Navy, serving almost four years during World War II and participated in 3rd and 5th carrier operations aboard the aircraft carrier U.S.S. Monterey for two years. He was discharged in 1946 as a Lt.Commander and resumed the practice of law.
President Ford was elected to the U.S. House of Representatives in 1948 and reelected every two years through 1972, serving 25 years in the House. He was elected Chairman of the Republican Conference in 1963, and chosen Minority Leader in 1965, a position he held in the 89th, 90th and lst Session of the 93rd Congresses. He also was permanent chairman of the 1968 and 1972 Republican National Conventions.
In November 1963, he was made a member of the Presidential Commission investigating the assassination of President John F. Kennedy and authored (with the late John R. Stiles) the book, Portrait of the Assassin (1965).
President Ford was nominated Vice President on October 12, 1973, to succeed Spiro T. Agnew, who resigned, and was confirmed December 6. He succeeded to the Presidency August 9, 1974, following the resignation of Richard Nixon.
President Ford is the recipient of the following awards:
American Political Science Association's Distinguished Congressional Service Award, 1961.
American Good Government Society's George Washington Award, 1966.
American Academy of Achievement's Golden Plate Award as "Giant of Accomplishment", 1971.
AMVETS Silver Helmet Award, 1971.
Boy Scouts of America "Silver Buffalo Award" for distinguished service to our country and its youth, 1975.
The President and Mrs. Ford are active members of the Episcopal church.
He has received Honorary Doctor of Laws degrees from:
University of Pennsylvania
Notre Dame University
Ohio State University
University of Michigan
Michigan State University
Western Michigan University
The Citadel
(and numerous colleges).
President Ford received all-city and all-state football honors in Grand Rapids during high school, and he was a member of the University of Michigan's national championship football teams in 1932 and 1933. In 1934 he was named the University of Michigan's most valuable player. He served as assistant varsity football coach at Yale while a law student there.
He married Elizabeth Bloomer on October 15, 1948, and they are the parents of four children:
Michael Gerald - Born March 14, 1950
John Gardner - Born March 16, 1952
Steven Meigs - Born May 19, 1956
Susan Elizabeth - Born July 6, 1957.
Mrs. Gerald R. Ford (Elizabeth Anne Bloomer) was born in Chicago, Illinois, on April 8, 1918, the daughter of Hortense and William Stephenson Bloomer. She moved to Grand Rapids, Michigan, with her family, when she was three years old.
At the age of eight, Betty Bloomer began studying dance, which developed into a lifelong interest. After graduation from Central High School in Grand Rapids in 1936, she attended two summer sessions of the Bennington School of Dance in Vermont, where she first met Martha Graham. She continued her dance career with Miss Graham in New York City, eventually as a member of the Martha Graham Concert group. She also modeled part-time with the John Powers Agency.
Betty Bloomer returned to Grand Rapids in 1941 and became a fashion coordinator for a department store. She also formed her own dance group and taught dance to handicapped children.
On October 15, 1948, she married Gerald R. Ford, who was elected to the U.S. House of Representatives from Michigan's 5th District only weeks after their wedding.
The Fords lived in Alexandria, Virginia, and became the parents of four children. Mrs. Ford's activities during the 1950's and 1960's concentrated on her husband and family. Keeping up with three sons, Mike, Jack, Steve, and daughter, Susan, left time only for extensive involvement with the Republican Party and the Episcopal Church.
Her husband's confirmation as Vice President in 1973 brought new responsibilities, which increased when he became President in August, 1974.
As First Lady, Mrs. Ford has continued her interest in the arts and handcrafts and focused attention on handicapped children and women's issues.
President and Mrs. Gerald R. Ford are the parents of three sons and a daughter. The Fords share an enthusiasm for sports, the outdoors and each other. Separated by different pursuits and individual interests, the family gathers each Christmas for a skiing vacation in Colorado and maintains close touch through frequent calls and letters.
The oldest child, Michael Gerald (Mike), was born March 14, 1950. Mike and his wife, the former Gayle Brumbaugh, live in Essex, Massachusetts, where Mike is a student at Gordon-Cornwell Theological Seminary. Mike plans to work with young people after completing his theological studies. Gayle has a master's degree in social work and shares Mike's interest in youth, particularly in counseling young people and college students.
John Gardner (Jack) was born March 16, 1952. Jack recently was named Director of Youth Marketing and Special Projects for Worldmark Travel Inc. He will help develop programs for student travel and coordinate production of a student guide book to the United States. Jack was graduated from Utah State University at Logan, Utah, in 1975, with a major in forestry. A former member of the U.S. Forest Service fire fighting crew and a former park ranger with the National Park Service, Jack is the only Ford son living in the White House.
Steven Meigs (Steve), was born May 19, 1956. In January 1976, Steve enrolled at California Polytechnic University as an animal science major to pursue his interest in learning about raising horses. He will continue to work part-time at a nearby ranch. Steve's interest in the outdoors has meant three summers on a ranch in Alaska, the study of grizzly bears and work on a cattle ranch and dairy farm.
Susan Elizabeth (Susan), the youngest of the Ford children, was born July 6, 1957. She attends Mount Vernon College in the District of Columbia and works part-time as a photographer. Susan was graduated in 1975 from Holton Arms School in Washington, D.C. Like her brothers, Susan is a skiing enthusiast. Her particular interests are photography, needlepoint, and plants. She also oversees care of the family pets, Shan, the Siamese cat; Liberty, a Golden Retriever; and Misty, Liberty's pup.
Income and Tax Information for the President and Mrs. Ford - 1966/1974 Deductions
Year Gross Taxable Medical Contri- State, Interest Federal All Taxes As
Income Income butions Local & Income % of Gross
Other Tax Income
Taxes
1966 59,513.65 50,267.90 277.79 1335.00 1012.55 20.41 17,389.05 31%
1967 71,608.55 60,827.53 150.00 2960.00 1071.02 22,896.16 33 1/2%
1968 68,952.43 56,759.55 150.00 2353.20 3089.68 22,617.43 37%
1969 80,741.98 67,838.99 611.98 2125.50 3565.51 29,610.90 41%
1970 94,322.11 80,944.31 1001.18 1892.50 3348.91 385.21 35,121.09 41%
1971 71,114.58 55,308.68 1886.45 2187.00 4090.02 592.43 20,390.53 34 1/2%
1972 67,927.41 53,723.20 150.00 2286.25 4036.85 221.00 2O,296.75 36%
1973 92,745.40 77,867.06 150.00 2760.20 4297.38 170.76 31,997.58 39%
1974 147,683.10 128,472.96 150.00 5849.00 5984.71 2726.43 56,296.49 42%
1975 - The President and Mrs. Ford's Tax Returns for 1975 have not yet been prepared. The
following figures are available:
Gross Income Federal Income Tax Withheld Payment of Michigan Income Tax (Estimated)
250,000.00 + 106,200. 00 9,123. 00
THE HONORABLE GERALD R. AND ELIZABETH B. FORD
STATEMENT OF NET WORTH
DECEMBER 31, 1975
ASSETS
Cash in Banks $ 1,239
Securities:
Ford Paint and Varnish Co. - Debenture Bonds $ 9,031
Central Telephone of Illinois - Stock 2,734
Stein Roe Farnum Balance Fund - Stock 1,208 12,973
Cash Value - Life Insurance:
Gerald R. Ford (Face Value $ 25,000.00) $ 8,267
Elizabeth B. Ford (Face Value $ 5,000.00) 1,634 9,901
U. S. Congressional Retirement Fund - Contributed Cost 53,701
Real Estate:
Residence - Alexandria, Virginia $90,000
Condominium - Vail, Colorado 90,000
Rental Dwelling - Grand Rapids, Michigan 30,000
Cabin - South Branch Township, Michigan
(1/4 Interest) 2,000 212,000
Furnishings and Personal Effects:
Residence $ 20,000
Condominium 6,000
Rental Dwelling 2,000 28,000
Automobiles and Other Vehicles 6,875
TOTAL ASSETS $ 324,689
LIABILITIES
General Bills Outstanding $ 1,200
NET WORTH $ 323,489
THE HONORABLE GERALD R. AND ELIZABETH B. FORD
NOTES TO STATEMENT OF NET WORTH
DECEMBER 31, 1975
The Cash in Bank consists of accounts at the Central Bank N.A. Grand Rapids, a business account and a personal account at the First National Bank of Washington.
The Debenture Bonds are with the Ford Paint and Varnish Co.
The Stock consists of 135 Shares of Central Telephone of Illinois and 72.206 Shares of Stein Roe Farnum Balance Fund.
All securities were valued as of December 31, 1975.
The cash value Life Insurance was supplied by New England Mutual Life Insurance Company.
The U. S. Congressional Retirement Fund represents your contributed cost to December 31, 1975.
The value of the Real Estate, Furnishings and Personal Effects represent estimated market values determined by you and are in excess of the original cost.
The automobiles and other vehicles consist of a 1974 Jeep, 1972 Jeep and a 1971 Mustang. These vehicles were valued by Orson E. Coe owner of Coe Pontiac, Grand Rapids, Michigan.
The general bills outstanding are estimated miscellaneous items unpaid at December 31, 1975.
Grand Rapids, Mich., Oct. 29, 1973
Hon. Howard W. Cannon,
Chairman, U.S. Senate Committee on Rules and Administration, the Capitol, Washington, D.C.
Dear Sir:
In accordance with Congressman Gerald R. Ford's request, we have prepared and are submitting to you the enclosed statement of his and Mrs. Ford's net worth as of September 30, 1973. The statement of net worth should be considered in conjunction with the notes to the statement which are attached.
This firm has served as Congressman Ford's tax accountants since 1949 and we are generally familiar with all of his financial records and transactions.
For purposes of preparing this statement of net worth, we have relied upon the complete financial information provided by Congressman Ford each year, and stored in this office, consisting of check books, bank statements, cancelled checks, and deposit slips. The market values of Real Estate and furnishings were supplied by Congressman Ford and represent his estimate of current values.
Sincerely,
Robert J. McBain
Certified Public Accountant
Gerald R. And Elizabeth B. Ford, statement of net worth, Sept. 30, 1973
Assets:
Cash in banks $1,001
Savings Account--Grand Rapids Mutual Federal 281
Securities:
Ford Paint and Varnish Co.--debenture bonds 9,031
Central Telephone of Illinois--stock 3,240
Stein Roe Farnum Balance Fund--stock 1,299
Subtotal 13,570
Cash value--life insurance
Gerald R. Ford (face value $25,000) 6,990
Elizabeth B. Ford (face value $5,000) 1,497
Subtotal 8,487
U.S. Congressional Retirement Fund--contributed cost 40,414
Real Estate:
Residence--Alexandria, Va 70,000
Condominium--Vail, Colo 65,000
Rental dwelling--Grand Rapids, Mich 25,000
Cabin--South Branch Township, Mich (1/4 interest) 2,000
Subtotal 102,000
Furnishings:
Residence 12,000
Condominium 5,000
Rental dwelling 2,000
Subtotal 19,000
Automobiles and other vehicles 6,725
Total assets 261,078
Liabilities:
Notes payable--National Bank of Washington 3,200
General bills outstanding 1,500
Total liabilities 4,700
Net worth 256,378
Gerald R. And Elizabeth B. Ford, Notes to Statement of Net Worth,
September 30, 1973
The cash in banks consists of an account at Sergeant at Arms, Washington, D.C., Central Bank, Grand Rapids, Michigan and Union Bank and Trust Co., Grand Rapids, Michigan.
The debenture bonds--Ford Paint and Varnish Co. are due on July 1, 1975
The stock securities consist of 135 shares of Central Telephone of Illinois and 60 shares of Stein Row, Farnum Balance Fund valued at market value on September 30, 1973.
The cash value--life insurance was supplied by New England Mutual Life Insurance Co.
The U.S. Congressional retirement fund represents Congressman Ford's contributed cost to September 30, 1973.
The real estate and furnishings represent estimated market value supplied by Congressman Ford, which are in excess of original cost and values determined by property tax assessments.
The automobiles and other vehicles which consist of a 1968 Chrysler, 1972 Jeep, 1969 Mustang, 1971 Mustang, and a 1972 Motorcycle, were valued by Berger Chevrolet Co., Grand Rapids, Michigan.
The notes payable--National Bank of Washington, are short-term notes maturing at 30-day intervals.
The general bills outstanding are estimated miscellaneous items unpaid at September 30, 1973.
Decisive action--the hallmark of forceful leadership--has been taken by President Ford to deal with both foreign and domestic problems.
For example, during his first two years in the White House, the President:
Did not hesitate to send the U.S. Air Force and the U.S. Marines to take back the American freighter Mayaguez, illegally seized by Cambodian Communists.
Wielded the power of the Presidential veto 55 times as a major weapon to battle inflation--saving American taxpayers over $9.2 billion in the process as Congress upheld 45 of the vetoes.
Betty Ford voiced the sentiments of most Americans in a Parade Magazine interview published on August 15, 1976, when she said she wants her husband:
". . . to be our President for the next four years because he has leadership and honesty and courage. He's already proven himself . . . Why change our leadership when we have a President who's set the country on a good course, who's laid the groundwork for a healthy economy, who's maintaining the peace against formidable odds?"
President Ford's major accomplishments include:
- Cutting inflation by more than half.
The inflation rate was going up at 12.2 percent a year when President Ford took office.
The inflation rate was down to 4.6 percent for the first half of 1976.
- Nearly 4 million people have found jobs since the bottom of the recession.
At the recession low in March, 1975, a total of 84.1 million persons had jobs.
In July, 1976, employment had risen to a historic high of 87.9 million, an increase of 3.8 million from the March 1975 low.
- Unemployment has decreased.
Unemployment reached a high rate of 8.9 percent in May, 1975.
In July, 1976, the unemployment rate was down to 7.8 percent, and the President's economic advisors believe that it will fall below 7 percent before year's end.
- Key economic indicators are going up steadily.
During the past year:
Housing starts have risen by 38 percent.
The Gross National Product has gone up about 10 percent.
Real per capita disposable income has gone up by nearly 5 percent.
- Farmers are doing well.
Net farm income reached $26 billion this year, a record high.
Farm exports also are at a record high of $22 billion.
- Growth of crime has been cut by over 75 percent.
Crime was increasing at a rate of 18 percent a year when President Ford took office.
The rate of increase went down to 9 percent last year.
The growth rate was cut to 4 percent in the first quarter of this year.
- Dangerous downward trends in defense spending have been reversed.
Congress cut proposed defense budgets by almost $50 billion in the 10 years before President Ford took office.
President Ford reversed that trend this year, persuading Congress to vote a major increase in defense spending.
- Alliances with the Atlantic Community and Japan have never been stronger.
When President Ford took office, there was great turmoil and uncertainty in the world over the constancy of American will and leadership.
Now the industrialized democracies are carrying forward a program of cooperation in economics, energy, East-West diplomacy, anti-terrorism, arms control and in relations with developing nations.
- For the first time in over a decade, the U.S. is at peace abroad.
The Nation was still deeply embroiled in Southeast Asia and tensions were high in the Middle East when President Ford took office.
Today, Mr. Ford is the first President since Dwight Eisenhower who can run for election to the Nation's highest office without a single American fighting overseas.
- The Nation is at peace with itself.
The U.S. was rocked by scandal and inner doubts about its leaders and institutions when President Ford took office.
Today the strain of scandal has been erased from the White House, doubts have been replaced by growing trust and confidence, and the mood of the country has brightened perceptibly.
CHRONOLOGY OF SIGNIFICANT EVENTS
IN THE FIRST TWO YEARS
1974
August 9 - Gerald R. Ford becomes the 38th President of the United States
August 12 - President Ford appears before joint session of Congress. He urged Congress to cooperate in fighting inflation, and to use restraint in wage and price action. He admonished General Motors on price hike.
August 12 - President Ford exercised his veto power for the first time, vetoing a bill to upgrade deputy U.S. Marshals because it would create serious pay inequities with other Federal law enforcement personnel.
August 17 - President Ford signed his first legislation -- The Forest and Rangeland Renewable Resources Act.
August 15-18 - President Ford received his first visit by a foreign head of state -- King Hussein of Jordan.
August 20 - The President selects former Governor of New York, Nelson A. Rockefeller, to be his Vice-President.
August 22 - President Ford proclaimed August 26 as Women's Equality Day, declaring that "Americans must deal with those inequities that still linger as barriers to the full participation of women in the Nation's life."
August 22 - Signed "with great pleasure" a bill "of perhaps historic significance" substituting a single block grant for community development for seven categorical programs such as urban renewal and model cities.
August 28 - President Ford holds his first press conference as President.
September 8 - President Ford pardons former President Richard Nixon in the national interest.
September 16 - The President announced his program to give Viet Nam era draft evaders and military deserters a chance to earn return through performing alternative service. His programs included establishment of a Clemency Review Board to review cases of those already convicted by a military court.
September 18 - The President addressed the 29th session of the United Nations General Assembly, declaring that "We are committed to pursuit of a more peaceful, stable and cooperative world."
September 20 - President Ford announced appointment of Ronald H. Nessen as his Press Secretary.
September 28 - The President announced formation of the Economic Policy Board to oversee formulation, coordination, and the implementation of all economic policy.
October 9 - President Ford sent Secretary of State Henry A. Kissinger on a peace-seeking mission to the Middle East.
October 15 - The President signed the Federal Elections Campaign Act Amendments of 1974.
October 17 - President Ford appeared before the House Judiciary Subcommittee on Criminal Justice to review the facts and circumstances that were the basis for his pardon of former President Richard Nixon.
November 17 - The President departs for visit to Japan -- the first visit to that country by an American President -- and to South Korea and the Soviet Union.
November 23 - President Ford and Leonid Brezhnev, General Secretary of the Communist Party of the U.S.S.R., meet in Vladivostok, U.S.S.R. Progress is made toward a comprehensive 10-year pact for curbing offensive nuclear weapons.
November 24 - Ford and Brezhnev reach a tentative agreement to limit the number of all offensive nuclear weapons.
December 2 - Ford announces details of an agreement reached between himself and Brezhnev which puts a "firm ceiling" on the arms race.
December 10 - The Senate confirmed the President's nomination of Nelson A. Rockefeller as Vice President.
December 16 - President Ford and French President Giscard d'Estaing announce their plan for the two countries to coordinate energy policies.
December 17 - Following the U.S. Steel Corporation decision to raise prices 10 percent, President Ford orders Wage and Price Control Council to investigate and obtain justification for such action.
December 23 - U.S. Steel says it will lower price increase after Ford Administration's challenge.
December 27 - The President signed a bill creating a temporary Commission to study the paperwork generated by the Federal Government.
1975
January 1 - President Ford signed the Privacy Act of 1974, representing an advance in protecting a right precious to every American the right of individual privacy.
January 1 - The President announced his intention to nominate James T. Lynn as Director of the Office of Management and Budget.
January 3 - President Ford signed the Trade Act of 1974, reaffirming the deep American commitment to an open world economic order and interdependence as essential conditions of mutual economic health.
January 4 - The President named a Blue Ribbon panel, chaired by Vice President Rockefeller, to review CIA activities.
January 9 - President Ford signed an executive order establishing a National Commission on the Observance of International Women's Year, 1975.
January 13 - The President proposed $16 billion tax cut. He said the Nation must fight inflation, recession and energy dependence.
January 14 - The President announced his intention to nominate Edward H. Levi as Attorney General and William T. Coleman, Jr. to be Secretary of Transportation.
January 15 - President Ford delivered his State of the Union message before a joint session of Congress, describing the State of the Union as "not good." He called for support of his programs for a tax cut and for energy independence, and asked Congress not to tie his hands in foreign policy.
March 10 - Carla A. Hills was sworn in as Secretary of Housing and Urban Development.
March 20 - Saigon forces withdrawing from the North in disorderly retreat.
March 27 - U.S. airlifts refugees from Vietnam.
March 29 - The President announced in an address to the Nation his decision to sign the Tax Reduction Act of 1975, providing for a $23 billion tax cut.
April 4 - Unemployment at 8.7 percent. Eight million out of work. Highest point since 1941. President Ford will recommend extension of unemployment compensation benefits.
April 15 - Cambodia falls to Khymer Rouge.
April 24 - Vietnam war officially ends.
April 25 - President Ford urges Congress to extend the General Revenue Sharing program.
May 12 - Cambodia seizes U.S. merchant ship, Mayaguez. Military action ordered by the President successfully rescues ship and crew.
May 28 - President Ford departs on trip to Europe for NATO summit meeting and to visit Spain, Italy, and Austria to meet with President Sadat of Egypt.
June 6 - Unemployment peaks at 9.2 percent in May. Number employed increased for second month.
June 19 - President Ford authorized establishment of the President Ford Committee to promote his nomination for election in 1976.
June 19 - The President sent Congress a special message outlining a program to combat crime.
July 15 - President Ford sends a message to the Soviet Cosmonauts and the American Astronauts, hailing their joint space mission as "blazing a new trail of international space cooperation."
July 19 - President Ford formally announces his candidacy for election in 1976.
July 26 - The President departs on his second trip to Europe -- "a mission of peace and progress" -- for visits to West Germany, Poland, Romania, and Yugoslavia, and to Helsinki to meet leaders of 34 other nations and sign the final act of the European Security Conference.
August 8 - David Mathews sworn in as Secretary of Health, Education and Welfare.
September 4 - Under the auspices of President Ford and Secretary of State Kissinger, Egypt and Israel sign second-stage Sinai withdrawal agreement in Geneva.
September 27 - Privacy Act takes effect.
October 6 - President Ford tied new tax cuts to spending Cuts. In a television speech, he asked reduction of $28 Billion in taxes and in spending.
October 8 - The President asks Congress to establish a National Commission on Regulatory Reform.
October 20 - GNP grew at an annual rate of 11.2 percent during the third quarter.
October 29 - President Ford urges financial restraint and review for New York City. Refuses to support Federal help for New York at this time. Proposes bankruptcy legislation.
November 2 - To increase efficiency and effectiveness of the Administration, President Ford rearranges the Cabinet. Kissinger gives up National Security Council post. Schlesinger and Colby resign.
November 4 - President names Rumsfeld to Defense, Richardson to Commerce, Bush to CIA, Scowcroft to NSC, Cheney as White House Chief of Staff. Rockefeller withdraws name for consideration for Vice President.
November 15 - President Ford to Paris for economic summit.
November 20 - President awaits New York City/State move before giving aid. Awaits "concrete action."
November 26 - New York Legislature votes tax increase. Banks and teachers union agree to joint plan to avert New York City default.
November 27 - Citing new spirit of cooperation by New York officials President Ford asks $2.3 billion U.S. loans for New York City to help finance plan to avert default. Trade surplus for 9th consecutive month. Exports in October topped imports by $1.08 billion. Productivity gaining.
November 29 - The President departs for visits to People's Republic of China, the Philippines, and Indonesia.
December 7 - President Ford announces in Honolulu a Pacific Doctrine of "peace with all and hostility toward none."
December 17 - President Ford Opposes U.S. combat role in Angola War.
December 19 - Soviets to continue paying higher prices for U.S. grain.
December 21 - President Ford succeeds in fight over tax cut bill. Temporary tax cut enacted.
December 22 - President Ford signs Energy Policy Conservation Act.
December 31 - The President formally proclaimed 1976 as the Bicentennial Year.
1976
January 3 - President Ford vetoes common situs picketing bill.
January 6 - Administration announces the President will name Anne L. Armstrong as Ambassador to the Court of St. James.
January 19 - President Ford delivers State of the Union address to Joint Session of Congress -- proposes "new realism" -- broader role for State and local governments -- greater individual initiative -- a stronger defense budget.
January 24 - President Ford underwent his annual physical examination which he said he passed with "flying colors".
February 7 - Labor Department announces the unemployment rate substantially lower in January -- the biggest monthly decline since late 1959. Jobless rate declined to 7.8 percent from 8.3 in December.
February 17 - The President announced reorganization of the Government's intelligence community "with a comprehensive set of public guidelines" for all intelligence activities.
February 18 - President Ford sent to the Senate for ratification a treaty with Spain providing for continuation of U.S. use of military bases in Spain.
February 19 - The President limits U.S. surveillance of citizens' lives
February 25 - President Ford sent to Congress a special message proposing legislation to consolidate Medicaid and 15 categorical Federal health programs into a $10 billion block grant to the States.
February 26 - President Ford edges past Reagan by 1,250 votes in New Hampshire primary, taking 17 of 21 delegates, Begins a string of victories before a loss in North Carolina.
March 17 - President Ford proposes legislation to virtually end Federal electronic surveillance of American citizens.
March 24 - President Ford sends a message to the Congress requesting a special supplemental appropriation for the production of a vaccine to combat swing influenza,
March 27 - President Ford declared today he will not "play Russian roulette" with national security by allowing Congressional Democrats to cut his military spending.
March 30 - President Ford threatens to veto any defense spending bill that he deems inadequate.
April 16 - President Ford resolves inter-agency dispute in favor of a fast buildup of the country's first strategic oil reserve as a protection against another foreign embargo.
April 20 - GNP for first quarter of 1976 has 7.5 percent "real rise". First quarter figures show inflation rate at 3.7 percent.
May 14 - President Ford urges Congress to adopt timetable for fundamental and extensive reform of government's regulatory program and agencies.
May 18 - President Ford officially revises Federal Elections Commission clearing way for resumption of Federal campaign subsidies.
May 28 - President Ford signs treaty on underground nuclear explosives with Soviet Union, controlling and limiting number of nuclear test explosions.
June 5 - Joblessness cut to 17-month low. 7.3 percent out of work in May.
June 24 - President Ford sends sweeping busing legislation to Congress.
June 27 - President Ford hosts Economic Summit in Puerto Rico. Issues call for a worldwide economic effort.
July 4 - The President leads the Nation's Bicentennial celebration. Speaks at Valley Forge and Independence Hall; reviews the tall ships in New York.
July 7 - Queen Elizabeth visits the President.
July 15 - Visit by Chancellor Schmidt.
July 17 - Administration issues revised economic forecasts showing better prospects for inflation and unemployment.
July 21 - Viking I lands on Mars.
July 21 - During the first six months of 1976 inflation rate was cut to 4.6 percent from the 12.2 rate in the latter part of 1974.
August 6 - Labor Department announces that employment rose by more than 400,000 in July to a new record high of 87.9 million, up 3.8 million from March 1975 recession low.
August 19 - President Ford nominated by Republican National Convention for election November 2nd.
PRESIDENT FORD -- ISSUES
--Overview--
AMERICA'S HERITAGE
One over-riding, non-political fact underlies American agriculture production. In one corn-belt and Great Plains area--starting from Ohio on the east to the Rocky Mountains on the west, from the Canadian border on the north to the high plains of Texas on the south--we have the world's largest contiguous land mass with fertile soil, a good growing climate, adequate rainfall, and topography that lends itself to a high mechanization.
In our vast irrigated valleys of the west we have intensive farm production unrivaled anywhere.
From our rich pastures and croplands of the southeast come. further essential agriculture diversification. And the farms and dairies of the northeastern region provide a wealth of farm production close to our heaviest population areas.
Truly, America has been blessed with farm lands unequaled any place on earth. This magnificent natural resource is managed by skilled farmers operating highly capitalized farms under a free market incentive system.
The American farmer, by far the most productive in the world, continues to grow more food for an expanding U. S. population and for fast increasing export markets.
Uncertainties abound in agriculture and always will. Weather is the major variable, but such other factors as inflation, changing consumer demand, inflation, strikes, currency revaluations, and international sales all make farming a high risk vocation.
THE FORD FARM POLICY
The basic tenet embodied in President Ford's farm policy is to keep government out of the business of farming to the extent possible. The American farmer has come a long way from the past when his planting acreage was prescribed by the government, the prices for his crops largely determined by the government, and large surpluses were held at great expense in government storage.
Since passage of the Agriculture and Consumer Protection Act of 1973, the government has, in fact, largely moved out of the farming business, and the United States, under President Ford, has had three years of the highest net farm income in history. Net farm income in the past three years has averaged $28.5 billion, compared with $12.9 billion average during the last three years under a Democratic President.
"We must sell grain, not pile it up in storage," President Ford told farmers in Springfield, Illinois, last March, "That is the program of my Administration."
The President went on to specify some of his other views:
"I am firmly opposed to the government holding your reserves in a government bin or warehouse. I'm against policies that would have farmers producing again for a government storage bin and a government check.
"I am firmly opposed to any international reserve that would put your farm products under control of an international body where this country could be outvoted fifty to one-or even by one hundred to one.
"I am firmly opposed to subsidized imports. I don't want American farmers competing against the treasuries of foreign governments."
FARM EXPORT POLICY
One result of the reduction of government involvement in agriculture has been vastly increased production, with surpluses being sold to alleviate hunger abroad. The value of agricultural products shipped to foreign countries in the farm year 1975-76 will reach $22.1 billion more than triple what they were in 1970.
To a large extent, it is the American farmer who has enabled this country to withstand the economic shock of quadrupled oil prices for imported oil, for which we paid $27 billion in 1975.
Over one-half the grain moving across international boundaries today is grown by the American farmer. President Ford believes that if the United States is to maintain dependable export markets for its food products, then it must be a reliable supplier.
To maintain this reliability, the United States has concluded long-term purchase agreements with the major countries around the world, from Western European nations to Japan. But in recent years, the Soviet Union, with which we had no such long-term contract, has entered the market with great unpredictability because of its inability to provide adequately for its own needs.
In Knoxville, Tennessee, President Ford spoke to this problem and its effect on the economy:
"We have had some very wide fluctuations in the purchase of grain, corn, wheat and soybeans from the Soviet Union. One year . . . it was around 55 million bushels, the next year it went up to 599 million bushels, and the next year it dropped down to 75 million bushels. The peaks and valleys have caused serious disruptions in our markets in the United States."
President Ford worked out a comprehensive five-year agreement with the Russians that benefits all Americans -- grain farming communities, workers, farmers and consumers. Under this agreement the Soviet Union committed itself to purchase a minimum of six million metric tons of grain per year -representing $1 billion in annual export earnings.
This agreement will:
Give us a more stable, long-term foreign market
Assure a more consistent flow of payments from abroad
Insure the American farmer that the Soviet Union will be a regular buyer for grain at market prices
Facilitate the hiring of labor, the purchase of new farming machinery, and the general stimulation of agriculture and business
Provide jobs for American transportation workers and seamen.
"We have transformed occasional and erratic customers into regular customers. We have averted an outcry every year that the Russians are coming to make secret purchases in our markets. The private marketing system has been preserved. Record exports are moving right now."
AGRICULTURE AND POLITICS
President Ford has refused to play politics with the food produced by the American farmer. When pressed to cut off exports to Russia because of its involvement in Angola, the President said:
"The linkage of grain diplomacy would mean disruption and hardship for you, the farmer, a serious increase in tensions between the world's two superpowers, and no effect whatsoever in Angola."
By contrast, Jimmy Carter has stated that he would consider using agricultural produce as a weapon to accomplish foreign policy objectives in both the Soviet Union and Middle East.
Carter was asked, "In the case of the Soviet Union doing things like intervening in Angola, would you favor using our economic leverage to get the Russians to cease and desist?" He replied, "Yes I would."
Washington Post
August 8, 1976
Carter says a new cut off of oil shipments to the United States would be "an economic declaration of war" and that he would "Instantly and without further debate" suspend U.S. exports of food, weapons, spare parts, oil drilling rigs and oil pipes to the offenders.
Associated Press, 7/8/76
SCALING DOWN GOVERNMENT INVOLVEMENT
The policy of the Ford Administration is to scale down in an orderly fashion the costs to the government formerly devoted to managing the individual farmer. Outlays for farm income stabilization (price supports, direct payments) will decline by $630 million in 1977. Legislation is being proposed to eliminate conservation practices. The program in 1977 will be cut by nearly half. As President Ford said to the farmers of Wisconsin last April:
"Farming is too important to be left to the politicians in or out of Washington."
President Ford expressed his commitment to the American farmer in a speech last spring in St. Louis:
"We start this Bicentennial year with justifiable pride in our agricultural strength and progress. The last three years have been the highest on record in the terms of net farm income . . . . I pledge to do everything in my power of the Presidency to keep farm income high and it will be."
Secretary of Agriculture Earl Butz, speaking for the President last year, told of his and President Ford's pride in the American farmer's use of the free market:
"Agriculture is doing fine on its own; fields are filled with growing crops, and the flight of rural people to the cities has ended. At the same time, American taxpayers also no longer have to pay up to $1 million a day to store inefficiently produced, government-owned grain. We still have the reserves, but now individual farmers and grain dealers hold the grain until they choose to sell it on the free market . . . ."
ENDING GOVERNMENT REGULATION
The President has repeatedly said that he believes that a necessary condition of a healthy economy is freedom from the petty tyranny of massive government regulation:
"We are wasting literally millions of working hours costing billions of consumers' dollars because of bureaucratic red tape. The American farmer, who not only feeds 215 million Americans but-also millions worldwide, has shown how much more he can produce without the shackles of government control."
President Ford believes that America's farmers must profit if America is to profit. There must be enough income for farmers to replace machinery, conserve and enrich the soil and adopt new techniques and buy essential supplies.
Above all, President Ford is ending government regulation of the American farm -- to make the American farmer truly independent, able to take the greatest advantage of the free enterprise system. In a speech before the farmers of America at the convention of the American Farm Bureau, President Ford said:
"You believe in a farm policy that builds strong markets at home and abroad, and so do I. Some nations with other political philosophies have virtually the same tractors and the same combines that you use in your fields, but their farmers do not have the same incentives. They don't have the greatest piece of farm machinery ever built -- free enterprise. . . .
"The American farmer died for freedom on the bridge at Concord 200 years ago. The least that America can do today is to let the farmer live in freedom from the stifling interference and control of big .government."
AGRICULTURAL POLICY COMMITTEE
The President announced on March 5, 1975 a reorganization of the Administration's agricultural policy-making machinery -- a new Agricultural Policy Committee has been formed with Secretary of Agriculture Earl Butz as Chairman.
In making this announcement, the President said:
". . . I am today asking . . . Secretary (Butz) to assume a new and vital role in strengthening America's agricultural policy making within the Executive Branch.
"The Secretary will be the Chairman of a new Cabinet-level Agricultural Policy Committee that I have created. This committee will consolidate all agricultural policy-making functions of existing Executive Branch committees . . . . This new Committee -- and its leadership -- reasserts the importance I attach to Secretary Butz as my chief agricultural policy advisor and spokesman."
President Gerald R. Ford
Springfield, Illinois
March 5, 1976
This new Committee consolidates agricultural policy-making into one group which reports directly to the President and will advise him on the formulation, coordination and implementation of all agricultural policy. The scope of the Committee will include both domestic and international issues.
The new Committee replaces the International Food Review Group, chaired by the Department of State, and the EPB/NSC Food Committee, co-chaired by the Department of State and the Treasury.
TAX PROPOSALS TO PRESERVE THE FAMILY FARM
". . . For the sake of future generations we must preserve the family farm . . . I will propose estate tax changes so that . . . family farms can be handed down from generation to generation without having to be sold to pay taxes."
President Ford
State-of-Union Message
January, 1976
BACKGROUND
The death of an owner of a farm can create major financial problems for the heirs, particularly if they wish the business to remain in the family. Unless sufficient liquid assets are available (or become available upon the death of the owner) to pay the estate tax liability, heirs may be compelled to sell the farm.
President Ford has called upon the Congress to pass legislation permitting heirs of owners of small farms to defer the first payment of estate taxes for five years and amortize the balance over 20 years at 4 percent simple interest. This will ease significantly the current problem faced by heirs of being forced to sell farms that have been in a family for years in order to pay estate taxes.
And, President Ford recently called upon the Congress to increase the estate tax exemption from $60,000 to $150,000:
"To further encourage the revitalization of rural America, I have proposed an increase in estate tax exemption from $60,000 to $150,000
President Ford
Rockford, Illinois
March 11, 1976
THE PRESIDENT'S PROPOSAL
The President has proposed a number of changes in the Federal estate tax laws to make it easier to continue the family ownership of a small farm or business. The proposed changes would stretch out the estate tax payment period so that Federal estate taxes can be paid out of the income of the farm or business. No payment will be required for five years and 20 years will be allowed for full payment of estate taxes at a 4 percent interest rate. This reform will help ensure the survival of smaller farms and businesses for future generations and allow them to expand their current operations.
These changes would liberalize the present rules under section 6166 of the Internal Revenue Code which permit the payment in 10 annual installments of estate taxes attributable to a family farm or other closely-held business constituting a substantial part of an estate (35 percent of the total estate or 50 percent of the taxable estate). Currently, interest on deferred estate tax payments is charged at the normal rate of overdue tax payments (currently 9 percent, but 7 percent effective February 1, 1976).
This first proposal has the following features:
At the estate's option, a five-year moratorium will apply to payment of that portion of the tax liability attributable to an ownership interest in a family farm or other closely-held business qualifying for ten-year installment payments under present section 6166 of the Internal Revenue Code. No interest will accrue during the five-year moratorium period and no principal or interest payments will be required during that period.
At the end of the five-year period, the deferred tax will, at the estate's option, be payable in equal annual installments over the next 20 years.
Interest on the installments will be reduced to 4 percent per annum from the 7 percent rate generally applicable to deferred tax payments.
The five-year moratorium and twenty-year extended payment provisions will apply only to the estate tax liability attributable to the first $300,000 in value of the family farm or business. Between $300,000 and $600,000 there will be a dollar-for-dollar reduction in the value of the farm or business qualifying for the moratorium and extended payment provisions. That portion of the tax not qualifying will continue to be subject to ten-year installment payments with the 7 percent interest rate.
In addition to these changes, the estate tax exemption would be increased from the current $60,000 to $150,000. This would partially offset the effects of inflation on the exemption originally set in 1942.
Overview
"The United States Government, under the Constitution and the law, is committed to the guarantee of the fundamental rights of every American. My Administration will preserve these rights and work toward the elimination of all forms of discrimination against individuals on the basis of their race, color, religion, national origin, or sex."
Thus did President Ford tell of his commitment to the preservation of the fundamental rights of all Americans. President Ford has a twenty-five year record of achievement in ending racial discrimination, beginning with his earliest service in the House of Representatives to the present.
The President's efforts to end racial discrimination are well-known. Throughout his years in Congress, then-Congressman Ford was active in formulating, and voted for every major piece of legislation aimed at ending discrimination based on race, from the Civil Rights Bills of the 1950's; to the Civil Rights Act of 1964 and the Voting Rights Act of 1965; and extensions and strengthening of these and other Acts through the 1970's. In August, 1974, President Ford signed legislation amending the Voting Rights Act of 1965, extending the temporary provisions of the Act for seven years and expanding coverage of the Act to language-minority citizens.
And President Ford has carried out his beliefs in the American system of equal opportunity for all in his actions as well as in his words. Notables such as Secretary of Transportation William T. Coleman; John Calhoun, Special Assistant to the President; Arthur Fletcher, Deputy Assistant to the President for Urban Affairs; and Constance Newman, Assistant Secretary for Consumer Affairs, in the Department of Housing and Urban Development, lead the list of Black Americans appointed to positions of leadership and responsibility in President Ford's Administration. In another recent action to fight more subtle discrimination against Americans, President Ford:
Supported legislation to amend the Equal Credit Opportunity Act, which presently covers sex and marital status to include prohibition against any creditor discriminating on the basis of race, color religion, or national origin against any credit applicant in any aspect of a credit transaction.
The Ford Administration has shown real commitment to the concerns of Black Americans in the critical areas of Civil Rights, Equal Opportunity, Employment, Business opportunities, and Education, and Housing. Activities in these areas are summarized below:
Civil Rights
Total outlays for civil rights activities will increase from $2.9 billion in 1975 to $3.9 billion in 1977.
Outlays for civil rights enforcement will grow to $430 million in 1977, an increase of 24% over 1975.
In 1977, outlays for equal-opportunity in the military services, including the U.S. Coast Guard, will total more than $40 million. An additional $19 million will be expended for contract compliance, fair housing and title VI activities.
Equal Employment Opportunity
As of November 30, 1975, over one fifth (21%) of Federal employees were from minority groups. Recent surveys have reflected a continuing trend of more minorities in the middle and upper grade and pay levels.
Outlays for Federal civil service equal employment opportunity programs (including upward mobility) will increase by 29% in the years, 1975 to 1977, to $188 million.
The budget of the Equal Employment Opportunity Commission will increase from $56 million in 1975 to $68 million in 1977.
Executive Order 11246, as amended, prohibits the practice of discrimination in Federal contracts, sub-contracts, and on federally assisted construction projects. In 1977, Federal agencies responsible for implementing this order will spend $40 million compared to $18.1 million in 1972. Approximately 570,000 new hires and promotions will be effected by such affirmative action goals.
The President directed Secretaries Coleman, Usery and Mathews and Attorney General Levi to review existing Federal Affirmative Action Programs to make recommendations as to how the programs can be made to work more effectively without placing unreasonable burdens on Federal contractors.
Minority Enterprise
Small Business Administration's (SBA) direct and guaranteed loans to minority enterprises have increased from $41.3 million in 1968 to $226 million in 1975. As a part of the Administration's continuing strong support of efforts to expand minority participation in private enterprise, SBA expects to provide over $465 million in loan and loan guarantees to about 8,600 minority enterprises in 1977.
The Office of Minority Business Enterprise (OMBE) will continue to provide financial assistance at a level of $50 million to support efforts to create and expand business ownership opportunities for minorities and stimulate private, State and local initiatives in this area.
SBA will expand its management assistance program for minority firms by $3 million in 1977. SBA will also increase procurement subsidies by $3 million for minority contractors to facilitate participation in the 8(a) program.
Under SBA's 8(a) procurement program, sole source contracts with minority firms are expected to increase from $32 million in 1975 to $350 million in 1977.
74 Minority Enterprise Small Business Investment Companies (MESBICS) are currently in operation with Federal matching funds of $43 million and private capital investment of $40 million.
A combined private sector/Government program has resulted in a substantial increase in the deposits of the Nation's 71 minority-owned banks. These deposits totalled $1.3 billion as of June 30, 1975, compared with $396 million in 31 minority-owned banks at the start of the program, September 30, 1970.
Educational Opportunities
Under the emergency school aid program, Federal aid will be continued to help overcome the effects of minority group isolation in school systems. In 1977, this program is proposed for operation at a requested level of nearly $250 million, including some $35 million for civil rights advisory services.
In 1977, $110 million will be obligated in order to support the improvement of developing institutions, including Black colleges.
In 1977, $1.9 billion will be provided for disadvantaged students at the elementary and secondary levels.
Office of Child Development activities -- primarily in the Head Start Program -- will receive $434 million in 1977 and serve more than 430,000 children.
Housing
Expenditures for the enforcement of laws against discrimination in housing will increase to more than $8 million in 1977.
An experimental program will carry on its test of the effectiveness of direct cash assistance programs as a means of dealing with the fundamental problem -- inadequate income -- in achieving the goal of a decent home for all Americans.
The lower income housing assistance program will continue to provide a more flexible form of housing assistance. In 1977, support will be provided for 400,000 units.
Anti-Poverty and Social Programs
In 1977, a $2 billion Child Nutrition Reform program will go into effect, eliminating complex and overlapping bureaucracy, and giving states more responsibility in meeting the needs of feeding poor children.
The Comprehensive Employment and Training Act of 1977 will provide some 515,000 training and employment opportunities for the unemployed and disadvantaged, while the Work Incentive (WIN) program will place 175,000 welfare recipients in unsubsidized jobs.
--Overview--
Since President Ford took office in 1974, many of his legislation proposals and administrative actions have been directed at reducing the problems consumers face in today's marketplace.
Federal Deposit Insurance Increase
In October 1974, the President signed Public Law 93-495, doubling the ceiling on Federal insurance provided to bank, credit union, and savings and loan company depositors--from $20,000 to $40,000. The law protects charge customers from the effects of billing errors, and prohibits discrimination based on sex or marital status in granting and denying credit.
Repeal of Fair Trade Laws
Last December the President was especially pleased to sign H. L. 6971, repealing the "fair trade" laws. At that time the President said:
"The best way to ensure that consumers are paying the most reasonable price for consumer products is to restore competition in the marketplace. This legislation will do that."
Consumer Product Safety Commission
The Consumer Product Safety Commission was established in 1974 to protect Americans from unreasonable risk of injury from the use of hazardous products. In May 1976, the President Ford signed a bill which:
Authorizes the Commission to obtain preliminary injunctions prohibiting distribution of products that present substantial hazard.
Establishes new procedures and timetables within which safety standards must be promulgated.
Authorizes, in specific circumstances, Federal preemption of state laws on product safety, to free industry from having to comply with a bewildering patchwork of state and local standards.
"If consumer product regulation is to have real meaning, adequate tools must be provided the Commission responsible for protecting the American consumer. The Act I have signed provides such tools."
President Ford
May 1976
Other Presidential Initiatives
The President has instituted other measures to protect consumers from unfair business practices and from over-regulation by government. In other major actions to protect and aid consumers, President Ford:
Signed the Truth in Leasing Act and the Equal Credit Opportunity Act, as well as amendments to the Securities Act of 1975 which abolished fixed commissions for stockbrokers.
Ordered an Office of Management and Budget study to assess Postal Service operations and possible improvements.
Directed a drive for reductions in paperwork and reporting requirements from government regulations that raise the cost of doing business and thus raise prices.
Eliminated outdated railroad regulations that discouraged competition.
Opened the Federal rule-making process to greater consumer representation.
Ordered a series of conferences--held in nine cities in January 1976--to collect suggestions from the public on making Federal agencies more responsive to consumer interests.
Established the requirement for major Federal agencies to develop "inflation impact statements" similar to environmental statements for major programs and rules.
Signed P.L. 94-239, which expands the Equal Credit Opportunity Act so that beginning next year, it will be illegal for creditors to discriminate against consumers on the basis of race, color, religion, sex, marital status, age, national origin or receipt of public assistance. The creditor is also required to notify consumers as to exactly why they were denied credit.
Refused import relief for the footwear industry and workers, stating that such a move would not be in the interest of the American consumer and retailer since import restraints would increase shoe prices for consumers.
Signed into law the Medical Device Amendments of 1976 which gives the FDA new authority to assure the safety and effectiveness of medical tools before they are used by consumers. The law also requires manufacturers to repair or replace defective devices or give consumers a refund, and quickly ban a device which is deceptive or presents an unreasonable risk of illness or injury.
Anti-Trust Laws
President Ford has also given renewed emphasis to the nation's historic consumer protection method, anti-trust laws. His proposed budget for Fiscal Year 1977 contains funding for additional personnel in this specific area.
"And I might add that last year I recommended that the penalties for violation of the antitrust laws be increased . . . They were ridiculously low. They have been substantially increased so now those who perpetrate monopolistic practices will really be penalized in dollars as well as . . . any criminal penalties . . ."
President Ford
Fort Myers, Florida
February 14, 1976
Proposals to Congress
Although President Ford's accomplishments in consumer affairs are themselves impressive, he has also proposed to the Congress other legislation in this area:
Financial Institutions Act, to remove Federal restrictions on interest rates on savings accounts.
Motor Carrier Reform Act, to remove excessive regulation of truck and bus companies that leads to empty backhauls, underloading, and circuitous routing.
Aviation Act, to remove artificial-regulatory constraints, to foster more price competition, and to ensure that regulations protect consumer interests rather than special industry interests.
Agenda for Government Reform Act, authorizing a comprehensive review of Federal regulatory activities over the next four years.
President Ford's support in other areas of national interest have also furthered the consumer interest:
Health care--The President supports HEW programs that encourage more health-maintenance organizations and promote "prospective rate reimbursement."
Transportation--promoting car-pooling programs, and signing into law the national 55-m.p.h. speed limit.
"Regulatory reform is one of the most important vehicles for improving consumer protection. Outdated regulatory practices lead to higher prices and reduced services."
President Ford
April, 1975
Departmental Consumer Representation Plan
In recognition of the need for greater consumer protection, as well as consumer input into the decision-making processes of agencies, President Ford, after a meeting of his Cabinet in April of 1975, directed all Federal departments and agencies to develop Consumer Representation Plans. The President believes that this approach represents a more effective alternative than the creation of a wholly new agency for consumer advocacy.
"I am convinced we can resolve by better administration what Congress is attempting to resolve by new laws and a costly new Government agency. The steps we have taken will prove to be responsive to the needs of the American consumer and the concerns of the American public."
To involve the consumers themselves, President Ford then approved a series of White House Conferences on Consumer Representation Plans, which were held in cities across the country during January 1976.
All eleven departments and six agencies have responded with proposals for handling consumer affairs within their own existing structures and for allowing consumer input into their decision-making processes at the very outset, before decisions are made and policies are formed. Each of these proposals was printed in the Federal Register for November 26, 1975, and because of those comments, and further agency introspection, as well as conferences with many consumer organizations, the initial plans have been finalized and will be published within the next few weeks.
Contained in those proposals are many common recommendations and goals which reflected considerable sensitivity and responsiveness to the problems of the consumer. Among them are:
The establishment or upgrading of consumer offices in each agency.
Improved communication techniques such as direct and active solicitation of consumer views for the purpose of providing a more efficient exchange of information and feedback.
Greater involvement of line management and field offices in opening up the decision-making process to consumer input.
More and better coordination with national, state and local consumer groups and public interest concerns.
Simplified rule-making procedures and clearly understood proposals in the Federal Register.
Opposition to a Consumer Protection Agency
President Ford believes that if consumerism is really to save American money, it cannot rely perpetually on adversary procedures, confrontation, and increasingly legalistic measures Furthermore, if the currently perceived problem is "unresponsive bureaucracy" what is the advantage of creating simply another government agency to add its own lawsuits to the dockets of our overloaded courts, its own costs to the tax burden of the consumer?
"I do not believe that we need yet another Federal bureaucracy in Washington, with its attendant costs of $60 million for the first three years and hundreds of additional Federal employees, in order to achieve better consumer representation and protection in Government. At a time when we are trying to cut down on both the size and cost of Government, it would be unsound to add another layer of bureaucracy instead of improving on the underlying structure."
-- Overview --
The rate of serious crime -- murder, forcible rape, robbery aggravated assault, burglary, larceny and auto theft -- was 18 per cent higher in 1974 than in 1973. That was the sharpest increase in the forty-four years that the F. B. I. has collected and reported crime statistics. Since 1960, the crime rate has more than doubled, despite the billions of dollars which have been spent on law enforcement programs. More significantly, the number of crimes involving the threat of violence or actual violence has also increased.
The personal and social toll that crime exacts from our citizens is enormous. Yet, the law continues to center its attention more on the rights of the criminal defendant than on the victims of crime.
President Ford believes that it is time for law to concern itself more with the rights of the people it exists to protect. The victims of crime are his primary concern.
The President believes that the Federal government can and must play an important role in combatting crime by:
Providing leadership to State and local governments enacting a model criminal code and improving the quality of the Federal criminal justice system;
Enacting and vigorously enforcing laws covering criminal conduct within the Federal jurisdiction that cannot be adequately regulated at the State or local level; and
Providing financial and technical assistance to State and local governments and law enforcement agencies, thereby enhancing their ability to enforce the law.
To accomplish these objectives, President Ford has:
Addressed to the Congress a comprehensive special message on crime, calling for the enactment of laws (1) establishing mandatory minimum sentences for most persons committing violent Federal crimes, particularly crimes involving the use of a dangerous weapon, (2) prohibiting the domestic manufacture or sale of so-called "Saturday Night Specials" that have no apparent use other than against human beings, (3) extending for an additional five years the Law Enforcement Assistance Administration and authorizing up to $6.8 billion of Federal assistance to State and local governments to fight crime; and (4) providing for economic compensation to the victims of Federal crimes.
Initiated at the national level a policy review committee on drug abuse to develop a better program for dealing with the national abuse problem and the costs, criminal and social, it exacts from our society.
Directed the Department of Justice to develop enforcement priorities in the area of white collar crime -- which in 1974 cost the public more than $40 billion.
Endorsed the recommendation of the Judicial Conference of the United States for the creation of fifty-one additional Federal District Court judgeships throughout the country. This, coupled with the enactment of legislation expanding the criminal jurisdiction of U. S. magistrates, will enable the relatively small number of Federal District Court Judges to focus their attention on the most significant criminal cases.
In his 1976 State of the Union message to the Nation, President Ford repeated his call for the enactment of this strong crime-control program. In addition, he asked Congress to:
Increase the number of U. S. Marshals and U. S. Attorneys prosecuting Federal crimes.
Add 500 Federal agents in the 11 largest metropolitan high-crime areas.
And, in order to curb the illicit traffic in hard drugs, establish mandatory fixed sentences for all drug dealers violating Federal law.
CAPITAL PUNISHMENT
President Ford has said that he ". . . favors the use of the death penalty in the Federal criminal system in accordance with proper Constitutional standards". He believes that the death penalty, in appropriate instances, should be imposed upon the conviction of sabotage, murder, espionage and treason.
The President recognizes, however, that there might be circumstances in which flexibility is necessary.
"Of course, the maximum penalty should not be applied if there is duress or impaired mental capacity or similar extenuating circumstances.
"But in murders involving substantial danger to the national security, or when the defendant is a cold blooded hired killer, the use of capital punishment is fully justified."
DRUG ABUSE CONTROL
The President's program to curb drug abuse was spelled out in more detail in a special message to Congress in April. He asked for specific legislation to:
Enable judges to deny bail in the absence of compelling circumstances of a defendant arrested, for dealing in herion [heroin] or dangerous drugs is found (1) to have previously been convicted of a drug felony; (2) to be presently free on parole; (3) to be a non-resident alien; (4) to have been arrested in possession of a false passport; or (5) to be a fugitive or previously convicted of being a fugitive.
Require masters of ships--including pleasure vessels--arriving in a U.S. Port to report immediately to Customs rather than within 24 hours as now required.
Enlarge the authority of Customs officers to search for cash or other monetary intruments [instruments] being smuggled out of the U.S.
Set stiff, mandatory prison sentences for sellers of heroin and other hard drugs.
GUN CONTROL
In a special message to the Congress on June 19, 1975, the President said that he was "unalterably opposed" to Federal Registration of guns or gun owners.
President Ford believes that the way to handle this problem is not by registering guns and gun owners, but by making the use of a gun in the commission of a crime a mandatory penalty.
Responding to a question at the University of New Hampshire on February 8, 1976, the President stated:
My basic philosophy is that we should make it as difficult as possible for the person with a criminal intent to have possession so he can use a handgun.
Number one, I think we should stiffen the penalty for those individuals who commit a crime while in the possession of a handgun. This included for those types of crimes mandatory criminal prison sentences.
In addition, I think we should extend restrictions on the availability of the so-called Saturday night specials.
In addition, in the budget for fiscal 1977, I recommended an additional 500 employees for the Alcohol, Tobacco and Firearms Division of the Department of the Treasury, so that they can move into major metropolitan areas of high crime and incidents and really go after the trading of handguns in those areas where the danger is the greatest.
-- Overview --
". . . It is . . . my duty to do all that I can to reduce the level of danger by diplomatic means, so my policy for national security can be summed up in three words--peace through strength. I believe it is far better to seek negotiations with the Soviet Union based on strength than to permit a runaway nuclear arms race and risk a nuclear holocaust."
President Ford
The White House
February, 1976
President Ford believes that a strong defense posture gives weight to our values and our views in international negotiations; assures the vigor of our alliances; and sustains our efforts to promote settlements of international conflicts. Only from a position of strength can the United States negotiate a balanced agreement to limit the growth of nuclear arms. Only a balanced agreement can serve our interest and minimize the threat of nuclear confrontation. President Ford has said that he is:
"determined to resist unilateral disarmament."
"committed to keeping America's defenses second to none."
Fourteen years on the Defense Appropriation Subcommittee while a Congressman, gave President Ford an in depth understanding of the elements required for a truly comprehensive national defense policy. Since taking office, President Ford's Administration has:
Continued development of the modern B-1 international bomber and Trident strategic submarine;
Streamlined our conventional combat strength by shifting support personnel to combat functions; and
Continued the technical modernization of our land and Naval forces and increased new ship construction.
Today, for the first time in a decade and a half, America is at peace. But preservation of both world peace, and our freedom, rests on the maintenance of a balance of power between the U.S. and the U.S.S.R. Hence, our position relative to the Soviet Union stands at the forefront of our foreign policy, our security arrangements, and our military planning and posture around the world.
Defense spending--measured in terms of what a defense dollar can buy--has steadily declined over the last seven years. Federal spending for services and support for individuals--health, social security, and other benefits--and the amount of money sent to the states in the form of grants, often to supplement many of these services--has nearly doubled over that time. While states, counties, cities, individuals, and the Federal Government contribute at each level to these health, income maintenance, and social improvement programs, only the Federal Government can constitutionally maintain the national defense. Thus, only the Federal budget reflects its cost. And the percentage of this budget devoted to defense is now the lowest (24.4%) since Pearl Harbor.
Over the years United States policy has been to seek a reduction of international tensions and a corresponding decrease in military expenditures, through negotiations and discussions. President Ford believes, however, that the incentive to achieve effective agreements will exist only if the United States and its allies remain at least as strong as those of potential adversaries. It has been clearly established that the U.S.S.R. has steadily increased its army, navy, and air force in recent years. Consequently, President Ford has decided that it is time to halt the downward trend in defense spending.
To maintain the military balance, the President has submitted a defense budget for 1977 which provides a real increase of $7.4 billion in total obligational authority in defense spending to buy new weapons systems; to improve readiness of existing forces; and to increase selected combat forces. In supporting his FY 77 defense request for $114.6 billion in total obligational authority, President Ford said:
"In my Presidency, I have proposed the two largest peacetime defense budgets in American history as the best assurance of deterring aggression and maintaining our own national security."
The President's budget increases are designed, above all, to maintain and improve U.S. military capabilities:
The new main battle tank for the Army will move from the development to the production phase. President Ford told the Armed Forces Committee last May, "As we saw, vividly saw in the 1973 Middle East war, tanks played a central role in ground combat. And as part of our budget for FY 77, which I submitted to Congress in January of this year, we are going to make sure that American soldiers have nothing but the best in this very crucial area."
New helicopters and anti-tank missile systems will reinforce the Army's arsenal.
Production will begin on the Trident submarine missile fleet, with the keel of the first vessel already laid.
Tactical air forces will be strengthened with additions of the F-15, F-16, and F-18 high performance aircraft.
Launching the procurement phase of over 200 B-1 bombers to replace aging B-52's.
Continued development of the cruise missile and an improved intercontinental ballistic missile.
Improvements in the combat power, equipment and readiness of the National Guard and the Reserve components.
To his initial budget request for 16 new Navy ships -- a 25% increase over the average ship-building in the previous nine years -- the President later asked for additional money for five more ships plus advance funding for a new Nimitz-class aircraft carrier. Among the new ships will be three more nuclear powered attack submarines, and eight guided missile frigates.
And, to moderate the increase in resources that are required to maintain U.S. military strength, President Ford has proposed the following measures to increase the efficiency of the defense establishment:
Restrain the growth in compensation levels;
Reduce civilian personnel positions by consolidating headquarters and other base facilities;
Eliminate dual compensation for Federal employees on active duty for training with the National Guard or Reserves;
Reduce temporary duty and permanent change-of-station travel;
Reduce petroleum consumption for proficiency flying programs through greater use of small aircraft and ground training aids; and
Hold new construction below 1976 levels.
Speaking on March 29, in support of the Defense budget, President Ford stated:
"I want to serve notice today that if the Congress sends me a defense budget that shortchanges the future safety of the American people, I will veto that defense bill, unprecedented though that might be, and go directly to our fellow citizens, 215 million strong, on this life and death issue. Nothing is more vital than our national security."
President Ford emphasized his commitment to a strong, vital national defense this way:
"I am convinced that adequate spending for national defense is an insurance policy for peace we cannot afford to be without."
Before the Armed Force Committee in Louisville, Kentucky, President Ford set forth these principles:
"We owe our soldiers, sailors, airmen and marines the finest tools, the finest equipment, the finest leadership that this country can provide. And we are going to provide it. . . . We are strong today, We are well-prepared to deter war, as we have, But if deterrence . . . should fail we are well-prepared to control the conflict and to avoid nuclear confrontation. Our job is to make sure America remains strong, and I promise you as Commander in Chief and as President that we will remain strong in the future, as we have in the past."
--Overview--
President Ford, in his 1976 State of the Union Message--in the same forthright manner in which he first addressed the American people as President--talked about the difficulties that confronted the nation's economy in 1975:
". . . 1975 was a year of hard decision, difficult compromises, and a new realism that taught us something important about America . . ."
President Ford's realistic policies in 1975 were the right prescription for the nation's economic ills:
The worst recession since World War II turned around last April.
Double digit inflation of greater than 12% was cut by more than half to 4.6% for the first half of 1976.
In July, 3.8 million more Americans were at work than in March, 1975, at the recession low.
Last year's progress is continuing in 1976. Reduction in the rate of inflation is expected to coincide with a healthy recovery in the standard of living. Real gross national product is expected to grow by over 6 percent in 1976 and by another 6 percent in 1977.
Real GNP for the first quarter of 1976 grew at an annual rate of 9.2%, with a growth rate of 4.3% in the second quarter.
Some of the more important economic indicators are shown on page 6.
THE PRESIDENT"S ECONOMIC PROGRAM
President Ford's economic policies, outlined in his State of the Union Message, are designed to keep the economy on an upward path toward two central long-term objectives:
Sustained economic growth without inflation
Productive jobs for all who seek work.
SPENDING RESTRAINTS: TOWARD A BALANCED FEDERAL BUDGET BY 1979
"We all know from recent experience what runaway inflation does to ruin every other worthy purpose. We are slowing it; we must stop it cold . . .
"The way to a healthy non-inflationary economy has become increasingly apparent; the government must stop spending so much and borrowing so much of our money; more money must remain in private hands where it will do the most good. To hold down the cost of living, we must hold down the cost of government."
The President's budget recommended $394.2 billion in Federal outlays for FY 1977, a reduction of nearly $29 billion in the projected growth of Federal Government spending. As a result of this spending restraint, the Federal deficit would be reduced from an estimated $76 billion in FY 1976 to $43 billion in FY 1977.
Under President Ford's budget, the growth of Federal Spending would be cut in half, down to 5.5%. By further cutting this growth, the President will achieve a balanced budget by 1979. (See "Federal Spending")
The Congress has ignored the President's call for budgetary restraint, passing instead budgetary resolutions that are $15-20 billion over the President's target.
TAX CUTS
President Ford's budget reductions for FY 1977 allow him to seek further permanent tax cuts for the American people. The President has called for a total of $28 billion in permanent tax reductions. The President's proposed permanent tax reduction is $10 billion more than the temporary tax reduction (annualized) enacted in December. These tax reductions are firmly tied to budget reductions:
". . . My recommendations for a firm restraint on the growth of Federal spending and for greater tax reduction are simple and straightforward: For every dollar saved in cutting the growth of the Federal budget we can have an added dollar of Federal tax reduction . . ."
The President's permanent program has the following major features:
an increase in the personal exemption from $750 to $1,000.
substitution of a single standard deduction--$2,500 for married couples filing jointly and $1,900 for single taxpayers--for existing low income allowance and percentage standard deduction.
a reduction in individual income tax rates,
a permanent 10 percent investment tax credit,
a reduction in the maximum corporate income tax rate from 48 percent to 46 percent and making permanent the current temporary tax cuts on the first $50,000 of corporate income,
a program to stimulate construction of new electric utility facilities to insure that long-run economic growth is not limited by capacity shortages in the production of electricity.
Again, the Congress has neglected to act on the President's recommendation for deeper tax cuts, tied to spending cuts.
JOB CREATION AND EMPLOYMENT
"One test of a healthy economy is a job for every American who wants to work.
Government--our kind of government--cannot create that many jobs. But the Federal Government can create conditions and incentives for private business and industry to make more and more jobs."
President Gerald R. Ford
State of the Union Message
1976
President Ford has undertaken a program which will put the unemployed back to work--not by creating "make-work" jobs the American taxpayer has to pay for--but by creating conditions and incentives for private business and industry to make more and better jobs. The President's approach to the unemployment problem has embraced three main concepts:
Alleviating the economic hardship for those who are unemployed through extending unemployment insurance coverage to 12 million additional workers and temporarily extending the period of time individuals may receive unemployment insurance benefits from 39 to 65 weeks.
Providing increased funds for established and proven Federal programs including Comprehensive Employment Training Act (CETA), summer youth employment and public service employment.
Stimulating economic activity in the private sector --to create new, permanent jobs--through a reduction in individual and corporate income taxes and encouraging increased investment in America's economic future through a series of tax incentives.
President Ford has proposed four new programs to promote additional investment and create real, permanent new jobs in the private sector:
Tax cuts.
Accelerated depreciation for construction of plants and equipment in high unemployment areas.
Broadening stock ownership potential among low and middle income working Americans through tax incentives.
Estate tax proposals which would
stretch out the payment period for federal estate taxes
increase the estate tax exemption from the current $60,000 to $150,000.
OTHER AREAS: ENERGY
Taking a longer look at America's future, President Ford knows that there can be neither sustained growth nor more jobs unless we continue to have an assured supply of energy to run our economy. In his recent State of the Union Message, President Ford made this point:
". . . Domestic production of oil and gas is still declining. Our dependence on foreign oil at high prices is still too great, draining jobs and dollars away from our economy at the rate of $125 per year for every American.
He again urged the Congress to move ahead immediately on the remainder of comprehensive energy proposals to make America invulnerable to the foreign oil cartel.
SUMMARY
In summary, President Ford's economic plan has been comprehensive and compassionate. It has brought us out of the worst recession since World War II. More than two million more Americans are at work than at the bottom of the recession. Inflation has been slashed in half, to 6.9% for 1975. The cost of food is holding steady for the first time in years . . . the dollar is holding its value.
The President's policies have been aimed at accomplishing two primary goals:
Sustained economic growth without inflation.
Productive jobs for all who seek work.
His program of economic growth focuses on spending restraint in the Federal government--The President's budget for FY 77 is $29 billion less than projected. And the growth of Federal spending has been cut in half, to 5.5%. A balanced budget can be reached by 1979.
Tax cuts matching Federal spending cuts of $28 billion.
In creating jobs for those who seek work, President Ford has taken measures to:
Stimulate creation of new, permanent jobs in the private sector through reductions in individual and corporate taxes;
Alleviate economic hardship of those temporarily unemployed by temporarily extending and broadening unemployment coverage; and
Provide temporarily increased funds for proven Federal job-training programs.
And, the President has taken action to ensure the future health of the economy by:
Undertaking major regulatory reforms.
Developing and implementing a major, comprehensive national energy policy to create energy independence by 1985.
JOB CREATION AND UNEMPLOYMENT
"One test of a healthy economy is a job for every American who wants to work.
Government--our kind of government--cannot create that many jobs. But the Federal Government can create conditions and incentives for private business and industry to make more and more jobs.
Five out of six jobs in this country are in private business and industry. Common sense tells us this is the place to look for more jobs and to find them faster.
I mean real, rewarding, permanent jobs . . ."
(President Gerald R. Ford
1976 State of the Union Message)
Last year, unemployment or the prospect of being unemployed, coupled with rising prices for food, fuel, energy, clothing, and goods and services in general brought hardship for many Americans. Recession and inflation in 1975 were associated with a number of unique circumstances, including
Continued excessive Federal spending over the past 15 years, and the deficits incurred by such spending, set in motion a wave of inflation and other severe adjustments that are still being felt.
Deficit financing throughout the 60's contributed to an accelerating inflation rate.
In September, 1974, the President convened an Economic Summit Conference to solicit the ideas of economists, businessmen and labor leaders on the state of the economy and the direction government policy should take. Few persons at that time foresaw the magnitude of the downturn; but as unemployment rose from 5.3 percent to 6.6 percent and the real Gross National Product fell at a $23.4 billion rate in the fourth quarter of 1974 the President took action.
In January, 1975 the President called for immediate reductions in both personal and business taxes. In March, the Congress passed and the President signed the Tax Reduction Act of 1975.
Beginning in December 1974, the Administration, in cooperation with the Congress, also took a series of actions to reduce the hardships of unemployment.
By acting as promptly as information warranted, the government was able to contribute importantly to stemming the downturn and starting the economy steadily upward. Spurred by a strong increase in the production of goods and services and a marked improvement in the inventory positions of business, real GNP increased at an annual rate of growth of 8.6 percent during the third and fourth quarters of 1975. The number of jobs increased by over 2.6 million from the March low, and the unemployment rate fell from 8.9 percent in May, 1975 to 7.5 percent in March 1976. The employment gains coupled with a significant moderation in the rate of inflation produced significant gains in real disposable income over the last three quarters of the year.
Despite this progress in increasing the number of jobs, the task ahead is great.
President Ford has undertaken a program which will put the unemployed back to work--not be [by] creating "make-work" jobs the American taxpayer has to pay for--but by creating conditions and incentives for private business and industry to make more and better jobs. The President's approach to the unemployment problem has embraced three main concepts:
Alleviating the economic hardship for those who are unemployed through extending unemployment insurance coverage to 12 million additional workers and temporarily extending the period of time individuals may receive unemployment insurance benefits from 39 to 65 weeks.
Providing increased funds for established and proven Federal programs including comprehensive Employment Training Act (CETA), summer youth employment and public service employment.
Stimulating economic activity in the private sector--to create new, permanent jobs--through a reduction in individual and corporate income taxes and encouraging increased investment in America's economic future through a series of tax incentives.
Proven Job Programs
The 1977 budget includes funding for a number of proven, job-related community programs:
Block grants to communities for construction of such things as sewerage, municipal parks, and urban renewal will be increased from $2.75 billion for FY 1976 to $3.2 billion for FY 1977.
The 1977 Budget includes $249 million for EDA public works and business development projects focused on developing permanent employment opportunities for residents of economically depressed areas of the country.
The 1977 Budget also includes $42 million for the Regional Action Planning Commissions (RAPC) of the Department of Commerce.
And, in proven job-training programs including:
$400 million for the CETA public service employment program which will fund (50,000 jobs).
$1.6 billion for state and local CETA programs which will provide 466,000 training and employment opportunities for 1.3 million enrollees.
$414 million for national CETA programs.
The CETA Summer Youth Employment Program which will fund 672,000 jobs.
Promoting Investment to Create New Jobs
President Ford has proposed four new programs to promote additional investment and create new jobs:
- Tax Cuts
The President proposed permanent reductions in individual and corporate income taxes and a permanent increase in the investment tax credit. Details of these proposals are outlined above.
- Accelerated Depreciation for Construction of Plants and Equipment in High Unemployment Areas
To speed up plant expansion and the purchase of new equipment in high unemployment areas, the President proposed permitting very rapid depreciation for business constructing new plants, purchasing equipment, or expanding existing facilities in areas experiencing unemployment in excess of 7 percent.
The program would accelerate the construction of new industrial and commercial facilities in areas of high unemployment where new jobs are most needed. It would immediately benefit the construction industry--one of the most depressed industries in the economy--and would create productive, permanent, well-paying jobs in the private sector.
- Broadening Stock Ownership
The President proposed tax incentives to encourage broadened stock ownership by low and middle income working Americans by allowing deferral of taxes on certain funds invested in common stocks. Widespread stock ownership will promote more stable financial markets; strengthen economic, social and political support for the free market system; and help employees build a reasonable estate.
- Estate Tax Proposal for Family Farms and Businesses
The President proposed a change in the Federal estate tax laws to make it easier to continue the family ownership of a small farm or business. The proposed changes would stretch out the estate tax payment period so that Federal estate taxes can be paid out of the income of the farm or business. No payment will be required for five years and 20 years will be allowed for full payment of estate taxes at a 4 percent interest rate. This reform will help ensure the survival of smaller farms and businesses for future generations and allow them to expand their current operations.
And recently, President Ford called for an increase in the inheritance tax exemption, for all taxpayers, from $60,000 to $150,000.
TAX CUTS FOR INDIVIDUALS
"My recommendations for a firm restraint on the growth of Federal spending and for greater tax reduction are simple and straight forward. For every dollar saved in cutting the growth in the Federal budget we can have an added dollar of Federal tax reduction."
President Gerald R. Ford
State of the Union Message, 1976
President Ford believes that by holding down the growth in Federal spending we can afford additional tax cuts and return to the people who pay taxes more decision-making power over their own lives. In December, 1975, the President signed legislation to extend the 1975 tax reductions for the first six months of 1976 -- and in his State of the Union message, he proposed that, effective in July 1, 1976, the American taxpayer receive an additional tax cut of $10 billion -- for a total of $28 billion in tax cuts tor the individual tax payer and for businesses.
Calendar Year 1977 and Beyond
The President's permanent program has the following major features:
an increase in the personal exemption from $750 to $1000.
substitution of a single standard deduction -- $2,500 for married couples filing jointly and $1,800 for single taxpayers -- for the existing low income allowance and percentage standard deduction.
a reduction in individual income tax rates
Calendar Year 1976
Since taxpayers compute their taxes on a calendar year basis, the President is proposing tax liability changes for calendar year 1976 that mesh his permanent proposal with the Revenue Adjustment Act of 1975 and approximate the effect of applying in 1976 the current temporary tax cuts for six months and the President's permanent tax cuts for six months. The President's full proposed tax liability changes will apply for 1977 and subsequent years.
The President's proposals would result in lower withholding tax rates -- and higher take-home pay -- effective July 1, 1976. The lower withholding tax rates would reflect the full impact of the tax cuts proposed by the President last October and would remain constant in 1977.
President Ford's tax reduction proposals mean that, for a family of four making $15,000 a year, there will be $227 more in take home pay annually -- extra cash that can really be used. Coupled with anti-inflationary measures that President Ford has taken over the last 18 months, which have cut inflation in half, the American taxpayer is finally getting something for his money.
Figure 1: KEY ECONOMIC STATISTICS
- EMPLOYMENT
3.8 million more people were at work in June 1976 than at the March 1975 recession low.
Employment was at a historical high of 87.9 million persons in July.
Unemployment steadily dropped, from 8.9% in May, 1975 to 7.8% in January, to 7.5% through March and April. A sharp expansion of nearly 700,000 in the labor force caused the unemployment rate to increase to 7.8% in July from 7.5% in June and 7.3% in May, but the downward trend is clear.
- INFLATION
The inflation rate for 1975 was 6.9%, half of its 1974 12.2% high.
The 12.2% inflation rate in the latter part of 1974 was cut by over half to 4.6% during the first six months of 1976. In July, the Consumer Price Index was up only 5.4% from July 1975.
- WHOLESALE PRICE INDEX
The Wholesale Price Index (WPI) dropped .5% in February--the fourth straight month in which this key indicator either dropped or held steady. The WPI rose only .2% in March, and .8% in April for a total of only a .1% increase over the six months ending in April. In May the WPI rose .3%; in June .4% and in July only .3% again.
- HOUSING
In July 1976, housing starts were at a seasonally adjusted annual rate of 1,387,000, up 14.9% from July, 1975.
- TOTAL INDUSTRIAL PRODUCTION
In seasonally adjusted real terms, total industrial production in June 1976, was up .3% from the previous month, and up 11.6% from the same month in 1975.
- RETAIL SALES
Retail sales, in current dollars, seasonally adjusted, were at $53.21 billion in July, 1976, up 8% from the same month a year ago.
- GROSS NATIONAL PRODUCT
The Gross National Product (GNP), in constant 1972 dollars, increased at a 4.3% annual rate in the second quarter of 1976, after increasing at a 9.2% annual rate in the first quarter of the year.
- PERSONAL INCOME
Personal income, in current dollars was at a seasonally adjusted rate of $13.9 billion in July 1976, up 1% from the previous month. It was the biggest monthly rise since August last year.
- COMPOSITE INDEX OF LEADING INDICATORS
The Composite Index of Leading Indicators showed a gain of .3% for June, 1976 over the previous month, and has increased in 14 of the past 15 months.
- NEW DOMESTIC CAR SALES
New domestic car sales through mid-August were up 19.1% over last year, with employment in that industry sharply up from last year.
--Overview--
"The education of our children is vital to the future of the United States. From the start, our Founding Fathers knew that ignorance and free government could not coexist. Our Nation has acted from the beginning on the sound principle that control over our schools should remain at the State and local level. Nothing could be more destructive of the diversity of thought and opinion necessary for National progress than an excess of control by the central government."
President Ford
March 1, 1976
"Our schools are no better than we make them. They can provide a solid educational foundation for our children. They can provide a training ground for leadership development. They can offer an opportunity for expanded technical knowledge and cultural enrichment through continued education. They can become a center for community involvement. But the future our schools provide is in large measure dependent upon our involvement."
President Ford
May 10, 1975
It is President Ford's concern, above all else, that all Americans receive a quality education.
Major Revisions of and Reform of Existing Education Programs
President Ford believes that public education is primarily a state and local responsibility. The Federal government helps, however, to assure that children with special needs, such as the handicapped and disadvantaged, receive an equal educational opportunity. President Ford has proposed four major efforts in the field of education for 1977:
Consolidation of 24 categorical programs under the Financial Assistance for Elementary and Secondary Education Act into a single block grant (see below).
Provision of aid to school districts facing problems in eliminating discrimination.
Reform of the Impact Aid Program.
Full funding of basic educational opportunity grants for all eligible undergraduate post-secondary students.
The major vehicle for reform will be the Financial Assistance for Elementary and Secondary Education Act which was submitted to the Congress in March, 1976. In addition to the major consolidation noted above, this legislation would:
Bring under the block grant umbrella Titles I-V of the Elementary and Secondary Education Act of 1965, the Education of the Handicapped Act, the Vocational Educational Act of 1963, and the Adult Education Act.
Continue to assure that funds Are available to the States and localities prior to the start of the school year.
Minimize the intrusiveness and burden of Federal regulations while continuing appropriate Federal support for education.
The Handicapped
Funds will be allocated to States on a formula basis. Three-quarters of the Federal funds will have to be used to serve the disadvantaged and the handicapped. The remaining quarter may be spent on any program consistent with the purposes of the programs consolidated in the block grant.
Public Participation
The Act will require state plans to be developed with full public participation. Each State will have to certify that funds ($2.5 billion) will have been used for purposes required by the law and consistent with the State plan. Actual use of funds will be verified by an independent audit to be conducted by the State.
Non-Discrimination, Non-Public School
The Act will also require that to receive funds the State may not discriminate against a participant on the basis of race, sex, national origin or handicapping conditions.
In addition, non-public school children will continue to be served on an equitable basis as under the program to be consolidated.
Elementary and Secondary Education
By law and tradition, State and local governments have the responsibility for providing free and universal public education. Over time, the Federal Government has furnished increasing assistance to State and local governments to support elementary and secondary education. The Federal government today supports about 7% of the total cost of elementary and secondary education. The bulk of that support is channeled through numerous narrow categorical programs. The Federal effort has helped to assure that children with special needs receive an equal educational opportunity.
However, Federal assistance has also led to the promulgation of layers of rules and regulations and to the impositions of administrative burdens at the local level which are unrelated to the development of programs of quality education. Although Federal, State and local efforts overlap, the rules often earmark Federal funds for specified, often narrow purposes. As a result the test often becomes not whether children are helped, but whether the State or community meets the rules. As the President has noted:
"Too often we have fund [found] ourselves asking whether Federal forms have been properly filled out, not whether children have been properly educated."
Emergency School Aid
President Ford has requested continued financial assistance to those school districts that are in the process of eliminating discrimination. Increased support will be provided for Title IV of the Civil Rights Act of 1964 which will provide greater advisory support and technical assistance to help educational institutions move toward equality of educational opportunity.
Reform of Impact Aid Program
Recognizing that Federal activities provide an economic benefit to host communities, President Ford has proposed reform of the Impact Aid Program. These reforms would limit Federal aid to those school-districts where free education is provided for children whose parents both live and work on Federal property. Since Federal property is exempt from local taxes, these families do not contribute to the cost fo [of] education as other families do, and Federal contributions are therefore fully justified. This proposal will save nearly $285 million in 1977 and approximately $330 million in 1978.
Higher Education
Two principles underlie President Ford's support for the provision of Federal funds for higher education:
No student should be denied access to a post-secondary education because of financial barriers. Those in need should receive grants; others with higher family incomes should be helped to borrow to meet the costs.
In most cases, aid should be provided to the individuals rather than to institutions. In this way, the student -- who is the ultimate consumer in the education process -- can exercise choice, not on the basis of the aid that a school receives, but on the basis of the kind of education the student wants. Aid to institutions should be limited to carefully defined objectives or supplementary to direct student aid.
President Ford's budget for FY 77 provides $6.3 billion for higher education, including $4.3 billion for the G.I. Bill. This will provide assistance to approximately 2.4 million students enrolled in colleges, universities and other post-secondary institutions across the country. The budget also proposes:
A request of $1.379 billion for the Basic opportunity Grant program (with supplemental).
A funding level of $44 million for the State Student Incentive Grant program.
$400 million in subsidies for loans made under the Guaranteed Student Loan program.
$250 million for the College Work-Study program.
$110 million for the Developing Institutions program.
$60 million for Special Programs for the Disadvantaged.
Budget Outlays for Education
Substantial Federal educationally related expenditures are directed toward activities whose purposes are not primarily educational. The Federal Government invests in specialized education for many activities, the largest of which is defense related and the second largest is in the health field. An estimated $8.7 billion in outlays will be provided in 1977 which indirectly benefit education, but are directed toward other purposes.
In 1977 total Federal outlays for education are estimated to be $18.2 billion. By general category these are estimated to be:
$9.2 billion for programs whose primary purpose is education.
$4.6 billion for elementary and secondary education. This includes $3.3 billion to be funded under the block grant program.
$3.6 billion for higher education.
$1.0 billion for adult, continuing, and other education.
Other Actions
In other actions since taking office, President Ford, in 1974, signed H.R. 69 which extended the Elementary and Secondary Education Act, the impact aid laws, the Adult Education Act, the Bilingual Education Act, and the Indian Educational Act through Fiscal Year 1977, and the Emergency School Aid Act through Fiscal Year 1976.
Provisions of that Act:
Authorized aid to States and local school districts for the education of disadvantaged students.
Prohibited the use of all Federal funds (except Impact Aid) for busing activities.
Established a Deputy Commissioner for a new Bureau of Handicapped.
Provided financial assistance to State and local agencies to establish equal educational opportunity for children of limited English-speaking ability.
Consolidated existing authorities into a new categorical grant program focusing funds on metric education, women's educational equality, consumer, gifted career, and community schools.
Extended the current Adult Education Law for 4 years and established a new 15% set aside from State funds for innovative programs and teacher training.
Provided 2 new Vocational Education Act categorical authorities dealing with bilingual education.
Extended the Indian Education Act program for special projects for Indian education and programs for Indian children in public schools through FY 78.
Authorized a new Reading Improvement Program with categorical programs for 1975-1978 to be distributed to States on school age population formula.
Liberalized veterans cost of instruction payment institutional eligibility, to require only 10% of undergraduates to be veterans.
Extends present Ethnic Heritage Studies program through FY 1978.
BUSING
The President has stated that he is firmly opposed to the use of court-ordered busing as a means of achieving racial balance in our schools. Nonetheless, he has repeated his intention to enforce the laws of the country and the order of the Courts as is his Constitutional duty.
The President has stated that ". . . without any hesitation or qualification . . . if the Court says something has to be done, it will be done, as far as this Administration is concerned."
It is President Ford's concern, above all else, that all Americans receive a quality education.
To help alleviate some of the burden imposed by court-ordered busing, and to explore better ways to bring a quality education while upholding the law and the courts, the President has:
Proposed the Desegregation Assistance Act of 1975 to target to school districts in the process of desegregation support on the basis of need.
Ordered the Department of Justice and Health, Education and Welfare, to undertake an extensive review of the effect of busing.
In a February 3, 1976 interview, President Ford discussed his support of the Esch Amendment which he recently signed into law:
. . . I am against segregation. I believe that we have to move forward in the area of desegregation but I think we can do it in a better way than has been tried under some of the court orders in various cities in our country.
The way I would recommend is for the courts to utilize what is called the Esch Amendment. It was legislation passed by the Congress which I signed that lists the steps that should be taken by the courts in seeking to achieve desegregation and to accomplish quality education. And busing is the last of the seven steps that should be taken by the courts.
School Desegregation Standards and Assistance Act
In June 1976, after months of study by Administration officials and meetings by the President with large numbers of concerned groups, the President sent to Congress the School Desegregation Standards and Assistance Act.
The purpose of this legislation is to maintain progress toward the orderly elimination of illegal segregation in public schools while preserving community control of schools. The legislation would set guidelines for Federal courts concerning the use of busing in school desegregation cases. It would require that courts determine the extent to which acts of unlawful discrimination have caused a greater degree of racial concentration in school or school system than would have existed otherwise and to confine the relief provided to correcting the racial imbalance caused by those unlawful acts. The legislation would also limit the duration of court-ordered busing generally to a period of no longer than five years.
In his message of transmittal, the President noted that:
"First, for all of my life I have held strong personal feelings against racial discrimination. I do not believe in a segregated society. We are a people of diverse background, origins, and interests, but we are still one people-Americans--and so much we live.
"Second, it is the duty of every President to enforce the law of the land. When I became President, I took an oath to preserve, protect and defend the Constitution of the United States. There must be no misunderstanding about this--I will uphold the Constitutional rights of every individual in the country. I will carry out the decisions of the Supreme Court. I will not tolerate defiance of the law.
"Third, I am totally dedicated to quality education in America--and to the principle that public education is predominantly the concern of the community in which people live. Throughout the history of our Nation, the education of our children, especially at the elementary and secondary levels, has been a community endeavor. The concept of public education is now written into our history as deeply as any tenent [tenet] of American belief."
--Overview--
Early in his Administration, President Ford said that he would not sit by and watch the Nation continue to talk about an energy crisis and do nothing about it. Nor, he said, would he accept half-way measures which failed to change the direction that has made our nation so vulnerable to foreign economic interests.
The President proposed firm, but necessary measures designed to achieve energy independence for the U.S. by 1985, and to regain our position of world leadership in energy. To accomplish this objective, President Ford recommended to the Congress the first comprehensive national energy program specifically designed to reduce dependence on foreign oil, by:
increasing domestic energy production;
promoting the conservation of scarce energy supplies; and
new domestic energy supplies, including fossil, nuclear, solar, and geothermal energy sources.
It was no easy task, however, to accomplish the President's goal of a comprehensive national energy policy. The diverse and sometimes competing interests of many Americans led to months of national debate. President Ford's strong leadership resulted in a solid step forward in December with his signing of the Energy Policy and Conservation Act of 1975. In signing the compromise bill, President Ford said:
"This legislation is by no means perfect. It does not provide all the essential measures that the Nation needs to achieve energy independence as quickly as I would like.
"First, this bill will enable the U.S. to meet a substantial portion of the mid-term goals for energy independence that I set forth . . . Second, the pricing provisions of this legislation, properly implemented, will permit the gradual phasing out of controls on domestic oil . . . and should give industry sufficient incentive to explore, develop and produce new fields in the Outer Continental Shelf, Alaska, and potential new reserves in the lower 48 states . . . Third, . . . this legislation represents the most constructive bill we are likely to work out at this time . . .
". . . On balance, . . . I find that this legislation is constructive and puts into place the first elements of a comprehensive energy policy."
The measure contains these important provisions:
Strategic Petroleum reserves for use in emergency.
Provisions for the decontrol of oil prices after 40 months.
Standby energy emergency authorities to enable the President to deal with severe energy emergencies that may arise in the future.
Coal conversion authorities to permit the conversion of oil and gas fired utility and industrial boilers to coal.
Assistance for States in developing energy conservation programs.
President Ford took other actions to get the U.S. on the road to energy independence. The President:
Signed into law an act creating the Energy Research and Development Administration, and presented a $2.3 billion energy research and development budget for FY '76;
Launched a voluntary automobile efficiency program to increase gasoline mileage, and a voluntary energy conservation program in industry;
Took administrative steps to accelerate leasing of the Outer Continental Shelf to find and develop oil and gas reserves while providing, at the same time, protection for the environment;
Took actions which led to reduced energy use by the Federal government;
Increased international cooperation in the energy field through our support of the International Energy Agency.
The President knows that there is a great deal more to do. In his State-of-the-Union message for 1976, he said:
"Taking a longer look at America's future there can be neither sustained growth nor more jobs unless we continue to have an assured supply of energy to run our economy. Domestic production of oil and gas is still declining. Our dependence on foreign oil at high prices is still too great, draining jobs and dollars away from our own economy at the rate of $125 per year for every American. . . .
I again urge the Congress to move ahead immediately on the remainder of my energy proposals to make America invulnerable to the foreign oil cartel . . . "
Other proposals which he has submitted to the Congress and which are vital to the achievement of energy independence would:
Reduce domestic natural gas shortage;
Allow production from national petroleum reserves;
Stimulate effective conservation, including revitalization of our railroads and the expansion of our urban transportation systems;
Develop more and cleaner energy from our vast coal resources;
Expedite clean and safe nuclear power production;
Create a new national Energy Independence Authority to stimulate vital energy investment;
And accelerate development of technology to capture energy from the sun and the earth for this and future generations.
President Ford has, from the outset of his Administration, shown strong leadership in setting the nation's energy policy, to finally enter the road to energy independence.
-- Overview --
President Ford is deeply committed to achieving a balance between the needs of the environment and the needs of a dynamic, growing economy.
"I am committed to the Nation's effort to clean up the environment. At the same time, I am concerned about the costs and impact on the economy. We can't do it all tomorrow."
The budget submitted for Fiscal Year 1977 by the President included an outlay of $4.5 billion for the Environmental Protection Agency. Out of this total, 84% was earmarked for use in sewage treatment construction. The policy highlights of this budget include:
An effort to continue to make progress in cleaning our lakes and streams by emphasizing expenditures for sewage treatment plants.
Greater priority will be given to catching up on the backlog of sewage treatment plants needed to solve immediate water quality problems while at the same time Federal commitments to projects of marginal effectiveness will be reduced.
Additional aid will be given to States for the implementation of the Safe Drinking Water Act in order to assist them in assuming primary enforcement responsibility.
A continuation of efforts aimed at assisting State and local pollution abatement agencies meet the environmental goals through the continued funding of their programs. This will include funds to aid in the implementation of the Safe Drinking Water Act, the Clean Air Act, and the Federal Water Pollution Control Act.
On December 4, 1974 the President transmitted to Congress a proposal for 37 new additions to our National Wilderness Preservation System, this would add over 9 million more acres to the Wilderness System. The President has just recently proposed the use of $1.5 billion over the next ten years in order to increase the size of the National Park System.
One of the first bills the President signed upon entering office was the Forest and Rangeland Renewable Resources Planning Act of 1974. This bill provides a process which should permit better choices to be made in the management of the Nation's vital renewable resources.
On February 27, 1976 the President stated:
"It is a measure of our progress as a Nation that today, in the 200th year of American Independence, we are in the midst of a dynamic movement to restore, protect and preserve our environment and, at the same time, the objective of providing a better life for ourselves and for our children and grandchildren."
Speaking at Yellowstone National Park on August 29, 1976, President Ford unveiled the Bicentennial Land Heritage Act. This program proposes to spend $1.5 billion during the next ten years, and will more than double our present acreage of land for national parks.
" Now it is our turn to make our gift outright to those who will come after us 15 years, 40 years, 100 years from now. What better way can we add a new dimension to our third century of freedom."
Meeting with leaders of the Nation's ethnic organizations at the White House in May of this year, the President said:
"A sense of neighborhood, a sense of belonging, of cultural identification, are threatened. I can appreciate your deep concern for the future of institutions which you work so very hard to establish--the ethnic church, the school, the credit union, the fraternal lodge.
"As we enter our third century, I believe that we can have a rebirth of individual freedom and that we can protect the diverse heritage which gives so much strength and so much richness to our society. Working together, we can achieve these goals."
President Ford's remarks underscore his conviction that cultural diversity is one of America's greatest strengths.
Shortly after assuming office, President Ford established an Ethnic Affairs Office in the White House with responsibility to ensure a rich and continuing dialogue between the White House and the Nation's ethnic communities.
Actions and Accomplishments
In the two years of his Presidency, Mr. Ford has:
Invited over 500 Italian, Eastern European, Greek, Hispanic, and other leaders to the White House for discussions and review of Federal policy affecting ethnic communities.
Provided funds for an Ethnic Heritage Studies Program.
Established a Presidential Committee on Urban Development and Neighborhood Revitalization to develop better Deferal [Federal] programs for our Nation's neighborhoods.
Through the Immigration and Naturalization Service created an Advisory Committee for Spanish-speaking peoples.
Added to the Bureau of the Census an ad hoc Committee for Spanish-speaking people.
Created a statistical census base for Hispanics by signing into law H.R. 92.
Appointed the first Hispanic Special Assistant to the President.
Advocated and signed legislation extending the protection of the Voting Rights Act to the Spanish-speaking and other Americans who do not speak English.
Increased from $42 million to $70 million Federal assistance for bilingual/bicultural education programs.
President Ford has met with leaders of virtually every ethnic community in this Nation and has, with pride, asked members of all of America's ethnic communities to serve in his Administration.
In addition, the President has held 121 meetings with foreign leaders, and has visited 14 countries in his two years in office, including Belgium, Germany, Poland, Finland, Romania, and Yugoslavia. These visits have helped maintain the country's relations with the homelands of many of America's ethnic citizens.
The Ford White House has followed an open-door policy. The President has welcomed discussion of the problem affecting these communities and is responsible for bold achievements in this area.
--Overview--
In the past decade, the Federal budget has been growing at an average rate of over 10% every year. President Ford has repeatedly asserted his intention to halt this trend. It is one of his primary goals to make the Federal government fiscally responsible:
. . . To put it simply, we must decide whether we shall continue in the direction of recent years -- the path toward bigger Government, higher taxes, and higher inflation -- or whether we shall now take a new direction -- bringing to a halt the momentous growth of Government, restoring our prosperity, and allowing each of you a greater voice in your own future.
To accomplish this, the President believes that (1) the Federal government must make a substantial and permanent cut in Federal taxes, and (2) make a substantial reduction in the growth of Federal spending. President Ford called upon the Congress to join him in restraining Federal spending by placing a $395 billion limit on FY 77 expenditures -- some $28 billion below projected spending for that year. Specific actions that he has taken include:
Setting a 5% limit on Federal pay increases
Using the Presidential veto power to save the taxpayer over $9.2 billion. Congress has overriden [overridden] only ten of President Ford's 56 vetoes.
In his speech to the nation on October 6, 1975, President Ford said:
. . . If we cut only taxes but do not cut the growth of Government spending, budget deficits will continue to climb, the Federal Government will continue to borrow too much money from the private sector, we will have more inflation, and ultimately we will have more unemployment . . . In 1962, the Federal budget for the first time in our history ran over $100 billion. In only 8 years, the budget doubled in size. In the coming fiscal year, unless we act, it doubles again to over $400 billion . . . (M)uch of the increase in each year's budget is required by programs already on the statute books . . . If we don't slow it down, Federal spending could easily jump to more than $420 billion -- without a single new Federal program.
The President has pointed to the financial experience of our biggest and richest city -- New York -- as a profound lesson to all Americans about the dangers of living beyond our means:
". . . Though we are . . . the richest Nation in the world, there is a practical limit to our public bounty, just as there is to New York City's . . . If we go on spending more than we have, providing more benefits and more services than we can pay for, then a day of reckoning will come to Washington and the whole country just as it has to New York City . . . When that day of reckoning comes, who will bail out the United States of America?"
President Ford means what he says when he talks about fiscal responsibility -- his speeches about cutting the budget and saving money are not just rhetoric. His views on holding down Federal spending are simple: for every dollar saved in cutting the growth in the Federal budget, there can be another dollar saved by the taxpayer in tax reductions. The budget he has submitted for FY 1977 cuts the rate of growth of Federal spending in half, for the first time in a decade of increasing federal budgets. President Ford's budget for FY 77 -$394.2 billion -- was even less than he had promised. By holding down the growth in Federal spending, the President has been able to ask for additional tax cuts -- nearly $10 billion more than the Congress agreed to in December. This means a total tax cut of $28 billion for the American taxpayer, because of President Ford's fiscal restraint.
CUTTING THE GROWTH OF FEDERAL SPENDING
"We all know from recent experience what runaway inflation does to ruin every other worthy purpose. We are slowing it; we must stop it cold . . .
The way to a healthy non-inflationary economy has become increasingly apparent; the government must stop spending so much and borrowing so much of our money; more money must remain in private hands where it will do the most good. To hold down the cost of living, we must hold down the cost of government . . . "
President Gerald R. Ford
The Federal budget is an important step toward reversing the long-term trend in Federal spending. President Ford proposes to cut the rate of growth of Federal spending, year to year, to 5.5% -- less than half the average rate experienced over the last ten years.
At the same time, President Ford has proposed further, permanent income tax reductions so that individuals and business can spend and invest these dollars instead of having the Federal Government collect and spend them.
In proposing his budget, the President was determined to achieve fairness and balance:
between the taxpayer and those who will benefit by Federal spending;
between national security and other pressing needs;
between our own generation and the world we want to leave to our children;
between those in some need and those most in need;
between the programs we already have and those we would like to have;
between aid to individuals and aid to State and local governments;
between immediate implementation of a good idea and the need to allow time for transition;
between the desire to solve our problems quickly and the realization that for some problems, good solutions will take more time; and
between Federal control and direction to assure achievement of common goals and the recognition that State and local governments and individuals may do as well or better without restraints.
President Ford's budget recommended $394.2 billion in Federal outlays for FY 1977, a reduction of nearly $29 billion in the projected growth of Federal Government spending.
As a result of this spending restraint, the Federal deficit would be reduced from an estimated $76 billion in FY 1976 to $43 billion in FY 1977. By continuing to check the growth in Federal spending, the budget can be balanced in FY 79. Significant spending restraint coupled with tax cuts will foster sustained economic growth without inflation.
The combination of tax and spending changes that he has proposed will set the nation on a course that not only leads to a balanced budget within three years, but also improves the prospects for the economy to stay on a growth path that can be sustained.
"…This is not a policy of the quick fix; it does not hold out the hollow promise that we can wipe out inflation and unemployment overnight. Instead, it is an honest, realistic policy -- a policy that says we can steadily reduce inflation and unemployment if we maintain a prudent, balanced approach . . . "
(Budget Message of the President,
Jan. 21, 1976)
--Overview--
In his August, 1974, speech before a joint session of Congress, President Ford expressed his belief that a successful foreign policy has to rest on a strong national defense, one able to command respect from adversaries and to provide leadership to friends:
"A strong defense is the surest way to peace . . . Weakness invites war . . ."
Since taking office, President Ford has continued to add to the record of leadership in foreign affairs and in maintaining a strong national defense that he built in his 25 years in the Congress. As President, he has pursued a realistic foreign policy, reaching to all areas of the globe in his efforts to strengthen allies and to minimize the danger of needless confrontation between ourselves and potential adversaries.
President Ford talked about his policy of peace through strength in a recent interview:
". . . the United States will meet with super powers, the Soviet Union and with China and others, and seek to relax tensions so that we can continue a policy of peace through strength. If we are strong militarily, which we are, and if we continue that strength, we can negotiate with the Soviet Union, with China and with others in order to maintain that peace. I think we ought to talk about the realities--the negotiation for a lowering of a strategic nuclear ballistic type capability. We ought to talk about trade. We ought to talk abut [about] science and those things in an atmosphere where we are dealing from strength."
In pursuing a more constructive relationship with the Soviet Union, President Ford, in the short time he has been in office, has been able to:
Bring our two countries towards the completion of a reliable strategic arms limitation agreement, based on the principles of strict equality agreed to at Vladivostok in November, 1974 -- an agreement that will ultimately limit the strategic arms buildup of both sides for a 10-year period; and to
Achieve a long-term grain agreement with the Soviet Union that is good for American farmers and that will minimize the impact on food prices for American consumers.
In the Middle East, President Ford seized an historic opportunity to help the area move towards a secure, just, and [c]omprehensive peace settlement. During the Spring of 1975, the President held an extensive series of meetings with important leaders in the area, including Egyptian President Sadat, Israeli Prime Minister Rabin, Jordan's King Hussein, Syrian Deputy Prime Minister Khaddam and others. Shortly thereafter, in early September, an interim agreement of potentially great importance was reached between Israel and Egypt. This agreement reaffirmed and strengthened the 1973 ceasefire, widened the buffer zone, and, most importantly, committed both sides to settle their differences by peaceful means. As but one result, the Suez Canal was opened to Israel for non-military shipping for the first time in years.
In carrying out his wide-ranging and comprehensive foreign policy, the President has, in other areas:
Brought our alliance relations to their greatest health and solidarity in decades. We now coordinate closely in economic areas, as at the Rambouillet and Puerto Rico Summits, and on energy matters, as in the International Energy Agency. The President has led the NATO Alliance in the development of positions for the Mutual and Balanced Force Reduction Talks with the Soviet Union and the Warsaw Pact, and he has worked for the standardization and more efficient use of defense resources within the NATO Alliance.
Underscored our commitments to our Asian allies, Australia, Korea, New Zealand, Indonesia, and, to Japan, in the first visit of an American President to that country; and
Continued to seek better understanding and cooperation with the world's most populous nation. In a visit to the Peop1e's Republic of China in December 1975, President Ford had useful and constructive discussions with China's leaders, reaffirming the durability of this important new relationship.
President Ford fully recognizes the responsibility that accompanies American economic power. He has committed his Administration to policies which will bring about an improved international economy and stable growth serving the interests of America and the world. Stable economic growth is critical to solving the problems of the developing world and President Ford has taken concrete steps, to ensure that our country plays a constructive leadership role in meeting these challenges:
At the 1975 UN Special Assembly, the U.S. set forth comprehensive proposals in food, trade, and raw materials.
The Paris Conference on International Economic Cooperation brought together the industrial, developing and oil producing nations to strengthen economic and energy arrangements for the mutual benefit of all.
At the World Food Conference in Rome, the United States pledged to meet 60% of the world food aid target to ensure the basic needs of the poorest nations.
The pursuit of peace requires decisive action:
When the Cambodians illegally seized the U.S.S. Mayaguez, President Ford ordered, and personally directed, the recovery of the ship and its crew by U.S. Marines. The right of innocent passage on the open sea was upheld by President Ford's assured, firm response to the situation.
Similarly, when North Koreans brutally murdered two U.S. officers in the DMZ, President Ford's firm response upheld our rights in the DMZ and elicited significant North Korean concessions assuring the safety of our personnel in their peacekeeping role.
President Ford's pursuit of peace has been based on a realistic understanding of world affairs and a commitment to a strong national defense. The President has pledged to maintain a national defense second to none, and to modernize and upgrade our capabilities. He has:
Proposed a real increase of $7.4 billion for the fiscal year 1977 defense budget.
Continued development of the modern B-1 intercontinental bomber and the Trident strategic submarine.
Streamlined our conventional combat strength by shifting personnel to combat functions.
Continued the technical modernization of our land forces, new ship construction, and modernization for our Naval forces.
Without question, President Ford has built a solid record of achievement in foreign affairs:
Our volunteer military forces are strong and ready.
Our principal diplomatic and military alliances are solid.
America has launched a serious dialogue between the industrial and non-industrial world.
A lasting Middle East peace agreement is possible.
Sino-American rleations [relations] have been put on a durable basis.
And most importantly, America is at peace.
CUBA
Recent Cuban intervention in the domestic affairs of other nations such as their attempt to interefere [interfere] in the U.S. relationship with Puerto Rico and their massive involvement in the Angola conflict, is unacceptable and precludes any improvement in relations between the United States and Cuba at this time.
While we acceded to persistent Latin American demands within the Organization of American States that each government be free to determine and follow its own policy with respect to relations with Cuba, the administration nonetheless has maintained the U.S. bilateral prohibition against trade with Cuba. The President has made clear that no improvement in U.S. relations with Cuba is possible as long as Cuba pursues such interventionist policies.
President Ford reaffirmed this position on February 28, 1976:
"When you look at the fact that he (Castro) took the initiative to try and upset the problems in Puerto Rico, when he took aggressive action in Africa some 4,000 or 5,000 miles from Cuba where he sent 12,000 mercenary forces, I see nothing but an aggressive, anti-freedom movement and so, under Fidel Castro, unless there is a 180 degree turn, I can't imagine any change . . ."
And on July 29, 1976, he said:
"My administration will continue a policy of friendship toward the people, and I underline the people, of Cuba. But, I add very emphatically, we will not accept intervention by the Fidel Castro regime in the affairs of other countries. We will not accept the counsel of those who would give in to Fidel Castro."
THE MIDDLE EAST
President Ford's policy in the Middle East is to take advantage of what is now an historic opportunity to help the area move to a secure, just and comprehensive peace settlement. So long as this conflict remains unsolved, it poses the constant danger to us of renewed war, international crisis and economic disruption, strains in our major alliances and nuclear confrontation with the Soviet Union. These are intolerable dangers. Because the United States is in a unique position of trust with all the parties, we have -- at their request -- been engaged for the last two years in a peacemaking effort without precedent in three decades. The President is determined that this effort continue until the achievement of a negotiated peace as foreseen by the UN Security Council Resolutions 242 and 338.
Because President Ford believes that this nation can make a decisive contribution to world peace, he has:
Conducted an intensive series of meetings with Egyptian President Sadat, Israeli Prime Minister Rabin, Jordan's King Hussein, Syrian Deputy Prime Minister Khaddam, and other important leaders in the area, to advance the negotiating process.
Brought about a second interim agreement in September, 1975, between Egypt and Israel. This agreement reaffirms and strengthens the ceasefire, and widens the buffer zone. It publicly commits both sides to settle the Middle East conflict by peaceful means and to refrain from use or threat of force or military blockade, and permit non-military Israeli cargoes to use the Suez Canal. This is the first agreement between Israel and an Arab country that was not simply to halt fighting or disentangle military forces.
Submitted foreign assistance requests to the Congress, including assistance to Israel and moderate Arab states, to strengthen their ties with us and their survival against extremist pressures which seek to undermine the process of peace. We will maintain, as we have for decades, military supply programs commensurate with Israel's defense needs and our commitments to her survival and security. The President has proposed U.S. assistance to Israel of $4.2 billion for a 27-month period, over 40% of all U.S. aid to Israel since 1948. At the same time, American support has been requested to help nations in the moderate Arab world who are our friends and supporters of the peace process.
President Ford intends to maintain our peace effort, to prevent the momentum of events in that volatile region from rushing again towards war. This effort serves important. American interests, and interest of world peace, our moral commitments in the area and the desire of the American people to see the specter of war and dislocation banished from the Middle East. Any stagnation of the negotiating effort poses intolerable risks to the interests of the United States -- economic, political, and security -- and to world peace. The President is determined to move forward until the achievement of a final, just, and durable peace.
THE PANAMA CANAL
Every President since Franklin Roosevelt has recognized a need to modernize our relationship with Panama concerning the Canal. President Ford believes that modernization is possible, and his Administration is discussing with Panama the possibility of arriving at such a treaty relationship. The goal of these negotiations is to reach an agreement which will accomodate [accommodate] the needs of both the United States and Panama, while protecting our basic interests in defense and operation of the Canal. The President will not propose to the Congress any agreement with Panama that will not protect our vital national interests.
"We will absolutely insist that our interests and the defense of the Canal and of the use of the Canal be maintained. That is why the negotiations have been going on so long under five Presidents and why there is no settlement of the issues right now . . ."
President Gerald R. Ford
February 18, 1976
- Overview -
"The health of our people is one of our nation's most vital resources."
President Ford
February 26, 1976
Significant progress has been made in improving the health of the Nation's people during the last 25 years, as can be seen in the continued reductions in the infant mortality rate; increases in life expectancy, and the conquering of some communicable diseases. This progress has come under a largely private health care system with the support of public funds.
In the past 10 year period (1965-1975) Federal spending for health has increased from $5 billion to $37 billion. With greater Federal funding has come a multitude of Federal programs, regulations and restrictions--all motivated by the best of intentions but each adding to the confusion and overlap and inequity that now characterizes our efforts at the national level.
To resolve these problems, President Ford recently asked the Congress to enact the Financial Assistance for Health Care Act which will consolidate Medicaid and categorical Federal health programs into a $10 billion block grant to the States. The President proposed that future Federal funding for this new program be increased annually in increments of $500 million plus the amounts needed after 1980 to ensure that no State will in the future receive less under this proposal than it received in Fiscal year 1976.
This comprehensive block grant proposal, discussed in the following pages, was only the most recent of a great number of actions taken by President Ford over the last year and a half. His other initiatives and accomplishments have fallen into six main categories of health care:
Health Care for Older Americans
Resources and Planning
Services
Medical Research
Disease Prevention
Medical Costs
FORD ADMINISTRATION HEALTH ACCOMPLISHMENTS
Health Care for Older Americans
In his recent State of the Union Message, President Ford proposed protection against catastrophic health expenditures for Medicare beneficiaries. This will be accomplished in two ways:
First, the President proposed extending Medicare benefits by providing coverage for unlimited days of hospital and skilled nursing facility care for beneficiaries
Second, he proposed to limit the out-of-pocket expenses of beneficiaries, for covered services, to $500 per year for hospital and skilled nursing services and $250 per year for physician and other non-institutional medical services.
This will mean that each year over a billion dollars of benefit payments will be targeted for handling the financial burden of prolonged illness. Millions of older persons live in fear of being stricken by an illness that will call for expensive hospital and medical care over a long period of time. Most often they do not have the resources to pay the bills. The members of their families share their fears because they also do not have the resources to pay such large bills. The President summarizes his concerns this way:
"We have been talking about this problem for many years. We have it within our power to act now so that today's older persons will not be forced to live under this kind of a shadow. I urge the Congress to act promptly."
Resources and Planning
Expansion of National Health Services Corps which places health professionals in critical health manpower shortage areas.
Improved coordination in the Federal financing programs (Social Security Administration, Social and Rehabilitation Service) with the resources, services, and research programs (Public Health Service); and unification of health policy development.
Services
Initiated coordination of rural health activities funded by the National Health Services Corp, migrant health program, community health center program and the area health education center program to serve individuals in rural areas.
Strengthened program in nursing home improvement in which the quality of life and care in skilled nursing facilities is being improved through enforcement and new standards, including patients' rights. A survey of almost 300 skilled nursing homes provided essential data on the quality of care, and preliminary material is being published and discussed with rpoviders [providers] and consumers.
Improved coordination of child health activities, to concentrate on health needs of children.
Implementation of the Professional Standards Reveiw [Review] Organization program (over half the country now covered by PSROs), aimed at assuring quality and containing costs of service.
Increased availability of kidney dialysis and transplant services (for person with end-stage renal disease).
Medical Research
Continued major investment in research on cancer and heart disease.
Building of comprehensive research plan for the field of aging.
Initiation of more research related to arthritis.
Continued development of vaccine for hepatitis.
Disease Prevention
Initiated the largest public health activity in U.S. history with a program to immunize all Americans against swine influenza and prevent a pandemic of that disease.
Reversal of alarming trend toward lower levels of protective immunization among U.S. children.
Screening of 1,300,000 children at high risk from lead poisoning, resulting in 85,000 of them with increased lead absorption being subsequently placed under pediatric management and 13,000 receiving hospital treatment.
Continued successful disease surveillance (programs unsurpassed anywhere in the world) of such killer diseases as plague, yellow fever, cholera.
Increased emphasis on health hazards of the workplace, including more research on possible carcinogenic agents.
Increased attention to Federal policies affecting nutrition--The Public Health Services has developed a comprehensive nutrition policy statement; published proposed food nutritional labeling regulations to uncrease [increase] consumers' ability to select a nutritional and adequate diet; initiation of nationwide (award-winning) consumer education program on nutritional labels and their uses.
Expansion in the review of over-the counter drugs for safety and efficacy; improvement of warning labels on cosmetics; further support legislation to strengthen Food and Drug Administration review of medical devices.
Medical Costs
Continued attention to total costs, and rates of increase in costs (at all-time highs) through the Summit Conference on Inflation.
Recommendation of new legislation and usage of existing authorities to control the cost rise under Medicare and Medicaid.
Continued emphasis on potential inflation impact of Federal programs.
Controlling of governmental expenditures for drugs by establishing "maximum-allowable-cost" regualtions [regulations].
-- Overview --
President Ford and his Administration repeatedly demonstrated his concern for and commitment to Spanish speaking Americans by:
Providing active support for the 1975 Amendments to the Voting Rights Act of 1965, including support for specific voting guarantees for Spanish speaking and other language minority Americans;
Sponsoring White House meetings on Bilingual Education, Equal Employment Opportunity Programs, Minority Business Enterprise, Consumer matters and Ethnic Concerns;
Supported an increase in appropriations for bilingual education programs (from approximately 45 million to 70 million dollars);
Providing ombudsman-type services to Hispanic Americans seeking to participate in Federal programs and benefits;
Providing senior White House representation at major Hispanic community events;
Lending support for minority business development efforts through the issuance of a December 1974 memorandum on Minority Business Enterprise;
Appointing qualified Hispanic American citizens to major boards and advisory councils including the Presidential Clemency Board, the National Council on Educational Research, the Commission on International Women's Year, the Legal Services Corporation Board of Directors, the President's Manpower Planning Commission, the Corporation for Public Broadcasting Board of Directors and many others;
Providing support for the Civil Service Commission's Spanish Speaking Program through the issuance of a Presidential Memorandum in March 1973.
And, President Ford has taken strong measures to assure the meaningful involvement of Hispanics at all levels of government. He has either appointed, promoted or retained in office well more than 50 Hispanic super grade and management level Hispanics including Bert Gallegos, Director of the Community Services Administration; Alex Armandaris, Director of OMBE; Raymond Telles, EEOC Commissioner; Carmen Maymi, Director of the Women's Bureau; Sam Martinez, Federal Regional Council Chairman; Joe Maldonado, Regional Director of HEW (San Francisco); Gilda Bojorquez Gjurich, IWY Commissioner; Rudy Cervantes, Manpower Planning Commissioner; Rudolph Montejano, National Board of Directors of the Legal Services Corporation; Gilbert Pompa, National Deputy Director of the Community Relations Service, Department of Justice; Victor Rivera, Regional Director of SBA (Denver); Edward Aguirre, Regional Commissioner of Education (San Francisco); Edward Baca, Regional Commissioner of Education (Dallas); Edward Pena, Director of Compliance, EEOC: Lorenzo Ramirez, Regional Director of EEOC (Dallas); Angel Rivera, Associate Administrator for Field Operations, CSA; Carlos Villareal, Postal Rate Commissioner; Eddie Mercado, Regional Director of EEOC (New York); Roger Moure [Ford Library note: This document has his first name wrong, his name really was Rupert Moure], Executive Officer, US Public Health Service, HEW; John Molina, Director of Bilingual Education, U.S. Office of Education HEW; John Rodriquez; Assistant Commissioner of Education, HEW; and many others.
The list is lengthy. In fact, at no time in the history of our nation have so many Hispanics occupied important decision-making posts in the Federal Government than under the present Administration.
- Overview -
The President has repeatedly said that the health of the housing industry is of critical importance to the Nation's well-being. During his Administration, he has made a strong commitment to assist the recovery of the housing industry by:
Authorizing $13 billion in mortgage purchases by Government National Mortgage Association for the purchase of home and multi-family project mortgages at below-market interest rates.
Curtailing the excessive Federal spending that has required heavy borrowing from the private sector in order to reduce interest rates for home mortgages.
In his State of the Union message for 1976, President Ford candidly noted that 1975 was a disappointing year in the housing industry. But he also pointed out:
". . . the housing industry is improving. With lower interest rates and available mortgage money, we can have a healthy recovery in 1976."
To spur that recovery, President Ford directed HUD to provide housing assistance for 975,000 families, over a two year period (FY 1976-77) programs which will expand housing opportunities, spur construction, and help to house moderate and low income families. To reach this
400,000 low income families will be provided subsidies under a rental housing program through FY 76; 400,000 additional families will be provided with subsidies in FY 77, including 125,000 units of new construction or substantial rehabilitation. This "Section 8" program will pay the difference between percentage of family income and the rent charge the landlord.
Mortgage subsidies will be approved for an additional 175,000 families in FY 76-FY 77 with moderate incomes to help them buy newly constructed or substantially rehabilitated homes, under the revised Section 235 homeownership assistance program.
Note - July figures for housing starts were: 1,387,000 (at seasonally an adjusted rate) up 15% above rate of 1,207,000 for July 1975.
On September 15, 1976, President Ford initiated a program to reduce down payments on lower and middle-priced housing by up to 50%. The President's proporal [proposal] will lower the monthly mortgage payments in the early years of home ownership and then, increase them as a family's income rises.
HOME OWNERSHIP
Improving the quality of housing available to low and moderate income families is one of the key objectives of President Ford's housing policies.
Past emphasis on building large Federal Housing projects for direct rental to poor families--projects that in many cases soon were plagued by vandalism--has been replaced with the rent supplement program. By relying on the private sector for the construction, financing and maintenance of housing for lower income families, these families are given more freedom of choice in seeking a place to live.
Moderate income families have seen an increase in the maximum Federal Mortgage Insurance they can get toward the purchase of a new home.
The President has sought to pursue economic policies, including tight control of unnecessary federal spending, to hold down inflation, reduce interest rates, cut taxes, increase purchasing power and thus, make available more funds for home mortgages.
President Ford's home purchase policy has sought to make available to homeowners the mortgage credit they need at reasonable interest rates, and to moderate extreme swings in mortgage credit availability.
The President recently announced an accelerated homeownership program that would:
reduce down payments on FHA loans for lower and middle price houses by up to 50%.
accelerate implementation of a new Federal Guaranty Program to lower monthly payments in the early years of homeownership and gradually increase them as family income increases.
URBAN COMMUNITY DEVELOPMENT
President Ford is committed to returning more power to State and local authorities to deal with their local problems, free from unnecessary Federal red tape.
In one of his early actions as President, signifying major progress toward this goal, President Ford signed the Housing and Community Development Act of 1974.
This Act, along with the General Revenue Sharing Program, forms the cornerstone of the President's urban policy and marks a complete and welcome reversal in the way the Federal government tries to help urban communities solve their problems. Local officials are provided the resources to deal with the particular need of their communities as they think best instead of being told from Washington exactly what they must do.
Under the new approach:
A single block grant for community development replaces seven rigid categorical grant programs such as model cities and urban renewal.
The President's budget provides $3.25 billion for block grants in 1977, about $450 million more than in 1976 and nearly a billion dollars more than the $2.47 billion provided for the old categorical programs in 1972.
President Ford demonstrated his concern with the growing problems facing many older cities when he established, on June 30, 1976, a Commission on Urban Development and Neighborhood Revitalization to recommend to him, by October 1, ways to revitalize urban areas and neighborhoods. HUD Secretary Carla Hills is chairman of the Commission.
--Overview--
Information acquired by intelligence gathering sources is a fundamental component in the formulation of the foreign policy of the United States. A major objective of that policy is to provide for national security, which in the 70's requires preparation against economic reprisal and international terrorism as well as the threat of military action. Achieving this objective requires effective and responsible, covert intelligence operations to secure the necessary information.
The disclosure of past abuses in intelligence gathering activities carried on by previous administrations and the recent unauthorized disclosures of sensitive intelligence information have led to calls for changes in the operation of foreign intelligence gathering agencies. President Ford has taken unprecedented affirmative action in response to this need to strengthen -- as well as to limit -- agency activity. In February 1976, the President issued an Executive Order which detailed a comprehensive plan:
Specifying the responsibilities, and
Defining the scope of activity of the various members of the intelligence gathering community.
Implementation of the provisions of the Order will:
Minimize inefficiency and repetition of agency effort, and
Maximize accountability for supervision of agency activity and prevention of abuse of power.
The President has stated that his plan has two basic objectives:
"First to ensure that we have the best possible information on which to base our policies toward other nations;--And second, to ensure that our foreign intelligence agencies do not infringe on the rights of American citizens."
President Ford strongly believes that while controls may be necessary to prevent abuse, an effective program for intelligence gathering is vital to the national interest. In his State of Union message the President said:
"The crippling of our foreign intelligence services increases the danger of American involvement in direct armed conflict. Our adversaries are encourged [encouraged] to attempt new adventures while our own ability to monitor events and to influence events short of military action is undermined."
Major Reforms
To implement an effective intelligence program which respects individual rights, President Ford's Executive Order:
Defines the scope of authority and the duties of the senior officials of the intelligence community, the CIA, the Secretary of State, the Secretary of the Treasury, the Secretary of Defense and the FBI.
Establishes strict guidelines on collection of intelligence by foreign intelligence agencies to prevent abuses through the use of electronic surveillance, unconsented physical searches, illegal invasion of the mail, and the unauthorized examination of Federal tax returns.
Restricts the use of drugs for experimentation on human subjects by foreign intelligence agencies.
Curtails CIA activity in private business or academic institutions without the prior knowledge of senior officials of those bodies.
Emphasizes the need for prompt declassification of classified material where possible.
Confines the FBI to use of electronic surveillance authorized by the President and specifically approved by the Attorney General.
Prohibits U.S. Government employees from engaging in or conspiring to engage in political assassination.
Establishes the Intelligence Oversight Board, a body of private citizens appointed by the President to review activities of questionable legality and to review guidelines to prevent abuse.
Provides for disciplinary and/or legal action to be taken against those who disclose or threaten to disclose classified intelligence information.
Oversight
Prevention of abuse demands that independent oversight be an integral part of a national intelligence scheme. The President established the Intelligence Oversight Board and enlarged the Foreign Intelligence Advisory Board to meet the needs of effective oversight. The President has charged the Oversight Board:
". . . to act as an independent auditor on what takes place within the intelligence community. You are not to be influenced by the White House on the one hand, and you are not to be influenced by the intelligence community on the other, and your responsibility is an independent area of responsibility."
The Foreign Intelligence Advisory Board, established by President Eisenhower and recently enlarged by President Ford, functions as a non-partisan body to advise the President on the effectiveness of foreign intelligence efforts.
One of the most important features of these oversight bodies is that they are composed of private citizens from outside the Government. Such public participation broadens the perspective needed for responsible intelligence gathering.
President Ford recognizes the need for Congressional support to implement certain procedures for intelligence gathering. He has proposed legislation to define the circumstances under which the use of electronic surveillance to obtain foreign intelligence information will be appropriate.
The President also respects the appropriateness of Congressional oversight. He has stated:
"It is clearly the business of the Congress to organize itself to deal with these matters . . . I believe good Congressional oversight is essential so that the Congress and the American people whom you represent can be assured that the foreign intelligence agencies are adhering to the law in all of their activities."
The problem of leaks of sensitive intelligence information from Congressional sources to the public has threatened the cooperation established between the Executive and the Congress to operate an effective intelligence program. The President has made two recommendations to Congress to restore confidence and mutual trust between these two branches of the government:
Congress should "establish a Joint Foreign Intelligence Oversight Committee . . . (to) facilitate the efforts of the Administration to keep the Congress fully informed of foreign intelligence activities."
The House and the Senate need to ". . . establish firm rules to ensure that foreign intelligence secrets will not be improperly disclosed" and to establish ". . . effective measures to deal with unauthorized disclosure."
No other administration in recent times has responsibly acknowledged the shortcomings of intelligence operations and has equally as responsibly met the challenge to set specific guidelines to restore public confidence in this much-needed activity. The program outlined by President Ford is an historic and purposeful effort to make the government and its vital intelligence activities responsible to the needs of the American people.
--Overview--
In a recent special message to Congress, President Ford reaffirmed his commitment to meeting the needs of older Americans, and to draw on their strengths in resolving the problems of America. He asked Congress to:
". . . help our nation demonstrate by its deeds a deep concern for the dignity and worth of our older persons. By doing so, our nation will continue to benefit from the contributions that older persons can make to the strengthening of their nation."
President Ford noted that the single greatest threat to the quality of life of older Americans is inflation. His first economic priority has been to fight inflation -- and his programs have cut nearly in half the double digit inflation experienced in 1974. But, he said,
". . . the retired, living on fixed incomes, have been particularly hard hit, and the progress we have made . . . has not benefitted them enough."
To meet this problem, the President included in his budget request for fiscal year 1977, a full cost of living increase in Social Security benefits, that will help bolster the purchasing power of 32 million older Americans. Because the President is determined that the Social Security system must remain fiscally sound, he has also requested legislation to increase payroll taxes by three-tenths of one percent for employees and employers so that payments will not exceed revenues.
In a major new program to alleviate the burden of catastrophic illness, President Ford has proposed:
Extending Medicare benefits by providing coverage for unlimited days of hospital and skilled nursing facility care for beneficiaries, and
Limiting the out-of-pocket expenses of beneficiaries for covered services, to $500 per year for hospital and skilled nursing services, and $250 per year for physical and other non-institutional medical services.
Millions of older persons, he said, live in fear of being stricken by an illness that will call for expensive hospital and medical care over a long period of time.
"Most often they do not have the resources to pay the bills . . . We have been talking about this problem for many years. We have it within our power to act now so that today's older persons will not be forced to live under this kind of a shadow."
These actions are only the most recent of many taken by the Ford Administration to help older Americans. Over the last year and a half -- from the first days of his Administration, President Ford:
Signed a $22.8 billion anti-recession tax-cut bill that included payment of $50 each to some million individuals receiving Social Security, Railroad Retirement, and Supplemental Security Income benefits -- many older persons were also benefited by extension of unemployment compensation benefits, tax rebates, and 1975 tax reductions. Families caring for elderly persons were benefitted by a liberalization of the tax deduction rules.
Signed into law the Employee Retirement Income Security Act, providing new protections and guarantees to 35 million persons covered by private employee benefit plans, including provision for greater equity in tax treatment of private retirement savings, and insuring that participants do not lose benefits because of restrictive eligibility provisions or because the plan did not accumulate sufficient funds to meet its obligations.
Signed the Housing and Community Development Act of 1974, which, among other things, provides for subsidized housing for low-income renters and authorizes direct, low-interest loans for housing for the elderly.
Signed into law Title XX of the Social Security Act which provides 2.5 billion dollars to the states for social services. Under Title XX older persons will receive increased services, planned and implemented by state and local governments -- needs and services determined not in Washington but at the local level, with the participation of the older Americans who will receive the services. And lastly, under President Ford's new Title XX proposal, states would no longer be required to give the federal government money in order to obtain federal monies in return.
President Ford has supported the concept of the Older Americans Act since its inception in 1965. This past November the President strengthened the Act when he signed into law amendments creating new services and goals. Under President Ford's Administration -- $272 million -- almost seven times the amount available three years earlier -- went to this program. Through the Administration on Aging, created by this Act, a national network on aging composed of state, area and nutrition agencies has been established. As an example of what the Act does, nutrition agencies serve older persons over 300,000 hot meals a day, five days a week at 5,000 locations. This network helps older people to:
Know what resources are available
Secure services enabling them to live in their own homes.
Meet their needs for transportation
Provide for the weatherization of their homes.
Obtain legal services
Continue to be involved by serving in full-time, part-time and volunteer positions serving the community.
Cope with housing problems
Have a meaningful voice in setting priorities for meeting their needs at the local level.
And, in developing health care for elderly Americans, the President has directed his Administration to develop programs that will lead to better use of present and potential resources for delivery of services to the elderly with the goal of improving health and quality of life. Actions in this area include:
Research at the National Institute on Aging into the physical effects of aging and into the effects of the physical and social environment on the aging process.
Collection of information on nursing homes nationally to recommend sound policies to improve and rate quality of long-term care for the elderly.
Development of a national rating system for nursing homes receiving Medicaid and Medicare funds.
President Ford's commitment both to resolving the problems of older Americans -- and in using their talents -- is great. A statement from his February 9, 1976 message to Congress reflects his beliefs:
"Today's older persons have made invaluable contributions to the strengthening of our nation. They have provided the nation with a vision and strength that has resulted in unprecedented advancements in all of the areas of our life. Our national moral strength is due in no small part to the significance of their contributions."
-Overview-
In his very first speech before the Congress on August 12, 1974, President Ford told the American people of his strong belief in the rights of privacy:
"There will be no illegal tappings (taping), eavesdropping, buggings, or break-ins by my Administration. There will be hot pursuit of tough laws to prevent illegal invasion of privacy in both government and private activities . . ."
The President, in stating his belief and support for the right of privacy, was following up on the commitment he had made earlier as Vice President, when he chaired the Domestic Council Committee on the Right of Privacy. On December 31, 1974, President Ford carried out his earlier promise, when he signed the Privacy Act of 1974 -- landmark legislation, which came about as a result of his leadership and the cooperative efforts of the Congress, Executive Branch, Federal agencies, and his Domestic Council Committee.
The Privacy Act gives Americans a greater say in the records about them are kept -- and it eliminates needless intrusions on personal privacy through the keeping of extraneous records. This Act has four key purposes. It assures that:
There are no Federal government personal record-keeping systems whose very existence is secret.
Federal personal information files are limited to those which are clearly necessary.
Individuals have an opportunity to see what information about them is kept and to challenge its accuracy.
Personal information collected for one purpose will not be used for another purpose without the consent of the individual.
The President has kept his promise -- he has exerted strong leadership and, with the cooperation he fostered under this leadership, put into effect strong legislation to protect the privacy of the American people.
--Overview--
"A necessary condition of a healthy economy is freedom from the petty tyranny of massive government regulation. We are wasting literally millions of working hours costing billion of consumer's dollars because of bureaucratic red tape."
President Gerald R. Ford
State of The Union Message, 1976
One of the major goals President Ford has set for his administration is to cut big Government down to size, ". . . to make it more manageable, more responsive, more efficient, and less costly."
The President has been particularly concerned over the need for reform of regulatory agencies which over the years have intruded to an increasing degree into the lives of the individual and of businessmen. There are now more than 5100 Federal forms that have to be filled out by individuals and businesses at all levels, from the small businessman to the large corporation. President Ford has said that:
". . . Although most of today's regulations affecting business are well-intentioned, their effect, whether designed to protect the environment or the consumer, often does more harm than good. They can stifle the growth of our standard of living and contribute to inflation . . . "
There are four principle [principal] objectives of President Ford's regulatory reform program which can be summarized as follows:
- To benefit consumers by encouraging increased competition;
- To increase understanding of the costs of regulations;
- To improve methods of achieving the objectives of regulation;
- And, to substitute increased antitrust enforcement for administrative regulation.
To reform regulation of the transportation industry, President Ford's Administration developed landmark legislative proposals:
The Aviation Act of 1975, submitted in October 1975, will improve the airline regulatory environment by fostering price competition and by allowing existing airlines to serve new markets and new carriers to enter the industry.
The Motor Carrier Reform Act, introduced in November, 1975, will increase competition in the motor carrier industry and provide shippers and consumers with a wider range of services and prices.
The Railroad Revitalization and Regulatory Act of 1976, which President Ford submitted in May 1975 and signed this February, provides long overdue regulatory reform, making it possible to reorganize the bankrupt Northeast and Midwest railroads; and the act authorizes necessary financial assistance for upgrading rail facilities.
Other Administration legislative initiatives have been passed by the Congress and signed by the President:
Fair Trade Laws. The repeal of these laws, which allowed manufacturers to dictate the retail price for their products, can save consumers an estimated $2 billion per year.
Securities. President Ford signed the Securities Act Amendments of 1975 last June, to promote competition among stockbrokers and to establish a national stock market system.
To assist him in carrying out his regulatory reforms, President Ford has already appointed new chairmen for ten of the twelve independent and regulatory agencies -- Civil Aeronautics Board, Federal Trade Commission, Equal Employment Opportunity Commission, Federal Maritime Commission, National Labor Relations Board, the Securities and Exchange Commission, the Consumer Product Safety Commission, The Federal Home Loan Bank Board, the Federal Trade Commission and the Nuclear Regulatory Commission, charging each with the task of revitalizing and modernizing the procedures of their agencies.
In October 1974, President Ford initiated his reform program by asking Congress to sponsor jointly a National Commission on Regulatory Reform to study the problems of Government regulation; but so far, the Congress has taken no action. The President knows that the nation can't wait for the Congress to move, so he has undertaken his own independent actions. Since taking office, President Ford has:
Met with Commissioners of the 10 independent regulatory agencies, directing them to improve regulatory procedures through the use of improved cost-benefit analysis of regulations, to reduce delays and backlogs in the regulatory process, to become more responsive to consumer interests, and to eliminate unnecessary regulations.
Created a White House Domestic Council Review Group on Regulatory Reform to work with the Congress and the regulatory agencies to assess the impact of Federal regulations on individuals, consumer prices and inflation, and on the efficiency of the market place.
Directed executive branch departments and agencies of the Federal government to evaluate the inflation impact of major proposed legislation, rules and regulations.
Initiated a major program to modernize Federal economic regulation of U.S. transportation. These proposals -- The Aviation Act of 1975, the Motor Carrier Reform Act, and the Railroad Revitalization Act -- are designed to eliminate antiquated regulations, improve customer service, and increase competition in those industries.
Established the Commission on Federal Paperwork to assess the impact of Government reporting requirements on businesses and individuals. To assure action in the short-run, the Administration is working now to eliminate unnecessary Government paperwork requirements.
Submitted, last March, the Financial Institutions Act which will enable small savers to earn higher interest on savings accounts and provide more diversified financial services to all customers.
President Ford believes that the General Revenue Sharing program, initiated in 1972, has been a resounding success, as it supports and embodies his belief in the concept of Federalism -- that unique aspect of the American system which permits and promotes creativity and freedom of action simultaneously at three levels of government. He has said that "Federalism enables our people to approach their problems through the governments closest to them, rather than looking to an all-powerful central bureaucracy for every answer."
General Revenue Sharing is an effective, efficient and equitable program providing general purpose fiscal assistance to the States and units of local government. For this reason, President Ford sent to the Congress for action the State and Fiscal Assistance Act Amendments of 1975 which authorize the extension and revision of General Revenue Sharing. The principal elements of the renewal legislation that he has proposed include:
Retention of the basic revenue sharing formula now in use.
Authorization of funds for another five and three-quarters years.
Continuation of the current level and method of funding, with annual increases of $150 million.
Increased public participation in determining the use of shared revenues.
Improved enforcement of the civil rights provisions to insure that revenue sharing funds are not used in a discriminatory manner.
The President again strongly urged passage of this legislation in his State of the Union message of January 19, 1976:
"Last year I strongly recommended a five-year extension of the existing revenue sharing legislation which thus far has provided $19 billion to help State and local units of government solve problems at home. This program has been effective with decision making transferred from the Federal government to locally elected officials. Congress must act this year or State and local units of government will have to drop programs or raise local taxes."
In the same effort to return decision making to the local control, President Ford has recommended the consolidation of some 59 Federal programs and the provision of flexible Federal dollar grants to help states, cities, and local agencies in such important areas as health, education, child nutrition, and social services:
"This flexible system will do the job better and do it closer to home."
--Overview--
President Ford believes the small business sector of our strong economy is vital to job creation, competition and technological innovation.
The small business sector of the United States includes nearly 10 million enterprises, employs 58 percent of the private labor force, produces approximately 48 percent of the gross business product, and provides a livelihood for 100 million Americans.
To strengthen this vital part of our economy, President Ford has:
Cut by 12 percent the number of forms required by Federal reports, thereby reducing the paperwork burden on America's businessmen and businesswomen, and eliminating untold millions of dollars spent by the Federal agencies just for reading, handling, and filing them.
Proposed reducing the maximum corporate tax rate and making permanent the currently temporary exemption on the first $50,000 of income. If approved, these tax cuts will affect thousands of small firms and help generate thousands of more jobs.
Proposed a change in the Federal estate tax laws to make it easier to continue the family ownership of a small farm or business. The proposed changes would stretch out the estate tax payment period so that Federal estate taxes could be paid out of the income of the farm or business. No payment would be required for five years. Twenty years would be allowed for full payment of estate taxes at a 4 percent interest rate. This reform would help insure the survival of smaller farms and businesses for future generations and allow them to expand their current operations.
In addition, the President has proposed eliminating the 50 percent marital deduction on estate taxes, so that 100 percent of an estate could be transferred tax free to a surviving spouse. He also has proposed an increase in the estate tax exemption from $60,000 to $150,000.
Proposed a 33 1/3 increase in the Small Business Administration's leading guarantee authority - - from $1.5 billion to $2 billion - - despite the austerity budget he submitted to Congress. This will help stimulate the private business sector and create more jobs.
Named the Administrator of the U.S. Small Business Administration to serve on the President's Economic Policy Board which oversees the formulation, coordination and implementation of the Administration's economic policy. It is the first time small business has been represented at such a high level of government.
Asked for reduction in capital gains taxation at an accelerating rate over a period of years. This would remove the tax incentive for small business mergers and made it possible for local interests to acquire and expand sucessful [successful] small businesses. It would unlock investments in business enterprises and permit the most productive employment of capital resources.
Proposed tax incentives to encourage broadened stock ownership of low and middle income working, Americans by allowing deferral of taxes on certain funds invested in common stocks. Widespread stock ownership would promote more stable financial markets, strengthen economic, social, and political support for the free market system, and help employees build a reasonable estate.
But President Ford knows that the Government should not -- and cannot -- run America's business:
"I will do my part, but the rest is up to you . . . I challenge the businessmen and businesswomen of America, and all the productive people of this great country, to roll up your sleeves and show the world that our great free-enterprise system is still hale and hearty, in this Bicentennial year and for the future."
--Overview--
"Compassion and a sense of community -- two of America's greatest strengths throughout history -- tell us we must take care of our neighbors who cannot take care of themselves.
"But everyone realizes that when it comes to welfare, government is not doing the job well. Too many of our welfare programs are inequitable and invite abuse. Worse, we are wasting badly needed resources without reaching many of the truly needy."
President Ford's approach to social programs emphasizes better delivery of services, less red tape through putting more control into state and local hands through block grants, and more help for those who are in need but none for those who don't need it.
In the last two years, despite major economic difficulties, President Ford has undertaken many actions designed to provide better, more efficient social services. The President:
Pressed Congress to pass legislation to consolidate various Federal aid programs into single block grants to the states in such field as helath [health] care, child nutrition and community services.
Twice proposed legislation to reform the food stamp program by concentrating benefits on those truly in need and correcting abuses and inequities.
With the food stamp reform legislation stalled in Congress, directed the Department of Agriculture last February to carry out the reform through administrative regulations.
Called on Congress for legislation to improve the effectiveness of the work incentive and Aid to Families with Dependent Children welfare programs.
Called a White House Conference on Handicapped Individuals to be held in the spring of 1977 to develop recommendations for legislative and administrative actions to aid individuals with handicaps to live their lives with self-reliance, dignity, and integration into community life.
President Ford has recognized that an election year is a difficult time in which to try to make massive and sweeping changes in the inefficient welfare system. But he strongly believes that the improvements he has undertaken and proposed are needed urgently now.
Meanwhile, he has ordered a careful study of alternatives for really comprehensive welfare reform.
Health Care
President Ford's proposed Financial Assistance for Health Care Act would consolidate Medicaid and 15 categorical Federal Health programs into a single $10 billion block grant to the States.
The President's proposal is designed to overcome some of the most serious defects in the present system of Federal financing of health care and to permit States to meet their citizens' health needs more effectively. The program would:
Eliminate state matching requirements.
Distribute Federal health dollars more equitably.
Give States greater flexibility in providing for delivery of health care services to those with low incomes.
Expand public participation in planning health services.
Child Nutrition
President Ford is a strong supporter of Federal action to help provide a healthy diet to children whose families are not able to do so,
In a special message to Congress on March 23, 1976, requesting enactment of the Child Nutrition Reform Act of 1976, the President said:
"I believe that the Federal govenrment [government] has a responsibility to provide nutrition assistance to those most in need.
"At the same time I believe that existing Federal taxpayer subsidies for the meals of children from families able to feed themselves extends that Federal responsibility beyond the appropriate point.
"In addition, under existing law, the 15 programs enacted into detailed legislation with the same objective -- feeding needy and non-needy children -- have resulted in a patchwork of complicated federal controls and regulations."
Without the reform proposed by the President, recent Congressional changes soon will require the Federal government to be spending more money on non-needy children than on the needy children. Children from all families, regardless of income, are now eligible to receive Federal subsidies for school lunches. At the same time, it is estimated that at least 700,000 children from poor families are receiving no nutrition benefits at all.
The reform legislation urged by the President would:
Provide financial assistance to States based on the cost of feeding all needy children.
Consolidate the 15 complicated and overlapping categorical programs into a single block grant to the States.
Save taxpayers nearly $900 million a year by reducing assistance to non-needy children.
Remove unnecessary restrictions and red tape governing the way meals are provided to needy children.
Give concerned individuals and organizations in each State an opportunity to be involved in the planning of child feeding programs.
Unless Congress passes the President's reform proposal, more than $660 million will be used in the 1977 fiscal year to subsidize students from families with annual incomes in excess of $11,000 -- far above the poverty level.
Community Services
In a special message to Congress on February 23, 1976, urging prompt passage of his proposed Financial Assistance for Community Services Act, President Ford said:
"This proposal is in keeping with my philosophy of reducing unnecessary and burdensome Federal restrictions while increasing State and local flexibility and responsibility in the administration of social programs."
The legislation proposed by the President would:
Provide $2.5 billion to be distributed annually by the Federal government to the states for a wide range of social services, including day care, family planning, foster care, special services for the aged, alcohol and drug addiction programs, and homemaker and home health aid programs,
Eliminate the requirement that States must match one State dollar for three Federal dollars.
Require that three-fourths of the Federal funds go to individuals with incomes below the poverty line or who receive Aid to Families with Dependent Children, Supplemental Security Income or Medicaid.
Assure that no State will receive less money as a result of this legislation than it received in the 1976 fiscal year.
President Ford prodded Congress again to pass the community services reform legislation in a special message on July 22, 1976, urging prompt attention to the "unfinished agenda of legislative business."
Food Stamp Reform
President Ford's determined efforts to reform the Food Stamp Program to concentrate benefits on those with greatest need and to eliminate form [from] the program those who are not in need have been blocked by the Democrat-controlled Congress and by court action.
The President has proposed reform legislation to Congress twice, most recently October 20, 1975. Since Congress did not act on his proposal, last February the President directed the Secretary of Agriculture to proceed administratively and to carry out the reform through changes in the regulations. Implementation of the proposed regulations issued on February 27, 1976, has been delayed by a court challenge.
President Ford again called on Congress for action in a special message on July 22, 1976, In an earlier statement, the President declared that "each day that goes by without enactment of the reforms which I have proposed costs the taxpayers more than $3.25 million."
The reform legislation proposed by the President would:
Increase benefits for those really poor, some 24% of those receiving food stamps.
Reduce costs by more than $1.2 billion a year.
Eliminate benefits for the 17% of recipients whose incomes are above the poverty level.
Provide that any family whose net income is below the poverty level ($5050 a year for a family of four) would be eligible for benefits.
Provide a $100 monthly deduction in computing net income, and a $125 deduction for families consisting of at least one member over 60 years of age, in computing eligibility.
Provide that all households receiving food stamps will pay a standard 30% of net monthly income for their food stamp allotment.
Eliminate automatic eligibility to receive food stamps for participants in other welfare programs,
Aid to Families with Dependent Children
President Ford has urged Congress to simplify administration of Aid to Families with Dependent Children Act (AFDC) -- one of the biggest welfare programs that has been much abused.
A major objective of the legislation proposed by the President is to eliminate ineligible persons (either because of fraud or error) from this program and focus Federal funds on the most needy.
The President's proposal -- which he prodded Congress on July 22 to enact after long delay -- includes provisions to:
Eliminate one of the troublesome inequities of the AFDC program by standardizing the disregard for work-related expenses,
Eliminate the dual work registration requirement for unemployed fathers. This would reduce administrative work as well as remove an unnecessary burden on individuals,
Require an applicant for AFDC under the unemployed fathers program to apply for and accept any unemployment compensation benefits to which he is entitled. Under a Supreme Court ruling, an individual who is eligible for unemployment compensation now has the option of applying for either unemployment or AFDC benefits.
Work Incentive
The purpose of the Work Incentive (WIN) program is to help those receiving AFDC benefits become self-supporting through going to work.
The amendments proposed by the President would:
Revise the program to insure that employable WIN applicants and beneficiaries are exposed to job opportunities and would actively search for and accept suitable jobs.
Extend to AFDC applicants the direct placement and labor market exposure employment services now provided only to AFDC recipients.
End the less effective work and training components of the WIN program.
Handicapped
"This Nation's handicapped citizens have a right to live with self-reliance with the same dignity as all of their fellow citizens," President Ford said in his announcement on November 22, 1975, of the first White House Conference on Handicapped Individuals.
The President said he was looking forward to the Conference's recommendations as a step toward helping handicapped persons "realize their full capacity as human beings" and "achieve higher levels of personal and professional fulfillment."
A 28-member National Planning and Advisory Council will direct preparations for the conference, scheduled to be held next May.
In his State of the Union Address the President announced two recommendations in his FY 77 budget that will help the disabled:
A full cost-of-living increase in social security benefits to be paid in the coming year.
Catastrophic health insurance for everybody covered by Medicare. The President said "To finance this added protection, fees for short-term care will go up somewhat, but nobody after reaching age 65 will have to pay more than $500 a year for covered hospital or nursing home care nor more than $250 for one year's doctors' bills."
And, April 28, 1976, the President issued an executive order on Nondiscrimination with Respect to the Handicapped in Federally Assisted Programs. The purpose of the executive order is to provide for consistent implementations within the Federal Government of Section 504 of the Rehabilitation Act of 1974.
WELFARE REFORMS
President Ford believes there is a need for a rationalization of our current collection of programs designed to assist the poor. In an era when we have come face to face with the fact that government's resources are limited we must find a simpler more responsive and accountable means of helping those in need.
In his State of the Union Address on January 19, 1976, the President said about welfare that:
". . . government at all levels is not doing the job well. Too many of our welfare programs are inequitable and invite abuse. Worse, we are wasting badly needed resources without reaching many of the truly needy. Complex welfare programs cannot be reformed overnight. Surely we cannot simply dump welfare into the laps of the 50 States, their local taxpayers or private charities, and just walk away from it. Nor is it the right time for massive and sweeping changes while we are still recovering from a recession. Nevertheless, there are still plenty of improvements we can make."
And, May 3, 1976, in Birmingham, Alabama, the President said:
"I have never believed that a guaranteed annual income was the answer to any of our problems. But, that doesn't mean under any circumstances that I am in agreement with out [our] present welfare program. When you add up all of the welfare programs we have, including food stamps, I think it is a mess and something has to be done about it."
Ford Administration Actions
In his State of the Union Address on January 19, 1976, the President asked Congress for Presidential authority to tighten up rules for eligibility and benefits.
The President will submit later this year the "Income Assistance Simplification Act," legislation granting him authority to adjust various income assistance programs to make these programs more consistent, equitable, and efficient. All changes proposed under this authority would be subject to review and disapproval by the Congress.
The proposed Income Assistance Simplification Act will include:
Program Coverage -- Authority will be sought only for modifications to Federal and Federally assisted means-tested programs which provide benefits to individuals in cash or "in kind," e.g., Food Stamps, AFDC, and SSI.
Scope of Authority -- The Act would give the President authority to modify administrative procedures, eligibility requirements, benefit levels, and program administjration [administration] authority.
Congressional Control -- The Act would preserve Congressional authority over all proposed modifications since the Congress would have an opportunity for review and disapproval.
Duration of Authority -- Five years.
On April 30, 1976, in Lubbock, Texas, the President said:
"We are in the process right now, at the highest level in HEW and other affected agencies, trying to decide whether you can really sufficiently improve a hodge-podge program or whether you ought to go to something like a family assistance program.
"After the end of this study -- which probably will be completed the latter part of December -- we will make a decision. But at the moment, I don't want to pre-judge exactly what our approach ought to be.
"I can assure you that we are going to try to put the emphasis, number one, on helping those who are in need, period. Number two, we are going to try and have a work incentive part of the program, which I think is basically sound. We are going to, if we could, consolidate the many programs that we have that, really, I think, don't help the beneficiary but actually frustrate the beneficiary.
"So those are some of the guidelines that we are trying to use in making a final determination."
--Overview--
President Ford has committed his administration to the development of a transportation system more directly responsive to the needs of the public -- one which will provide the Nation with the best transportation services at the lowest possible cost.
To accomplish this, he submitted to the Congress three major transportation proposals to reform transportation regulation. These proposals include the Aviation Act of 1975, the Railroad Revitalization Act of 1975, and the Motor Carrier Reform Act of 1975. The last is designed to:
Encourage a wider range of services and prices.
Eliminate antitrust immunities and encourage competitive pricing.
Eliminate outdated and unnecessary economic regulation.
Help small businessmen better to meet their transportation needs.
Strengthen the enforcement of motor carrier regulation.
The Railroad Revitalization and Regulatory Reform Act of 1976, which President Ford signed this February, provides long-overdue regulatory reform, make it possible to reorganize the bankrupt Northeast and Midwest railroads, and authorizes necessary financial assistance for upgrading rail facilities. Specifically, this Act:
Provides for more efficient, more competitive, and thus less costly rail transportation.
Will increase competition between various kinds of transportation and encourage a better utilization of resources by assuring that goods are transported by the most efficient means of transportation.
Eliminates certain antitrust immunities which permit carriers to set and hold rates at unreasonably high levels.
Assures that regulation provides adequate protection to consumer interests.
Provides needed financial assistance to the railroad industry.
Encourages speedy and rational restructuring of the railroads which will improve their economic health.
In signing this major piece of legislation, the first significant reform of transportation regulation by any Administration, the President stated:
"The actions set in motion by this legislation will make a significant contribution to our objectives of economic growth through private job creation, energy independence, and a strong private transportation system."
The Aviation Act of 1975, which Congress has not yet acted on, seeks to increase competition within the domestic airline industry by providing fare flexibility and greater freedom of entry to particular air markets throughout the U.S. It would also:
Broaden the availability of charter services.
Allow carriers to transfer route authority freely.
And, lessen Federal regulation of the domestic airline industry.
The President has taken other measures to revitalize the transportation system in the United States including:
Signing into law the National Mass Transportation Assistance Act of 1974, which establishes an $11.8 billion six-year program to support mass transit capital and operating programs.
Transmittal to the Congress of the Federal-Aid Highway Act of 1975, to expedite completion of an inter-city interstate system, and to enhance state and local flexibility in using Federal transportation assistance.
Promoting car pools to save energy--one of his first actions in this connection was the Project Independence report, a joint FEA-DOT effort which was issued in November, 1974.
Initiating legislation to impose waterway user charges to bring this form of transportation into line competitively with alternative modes.
Signing into law in December 1974, the 55 m.p.h. bill, which has saved both lives and fuel.
And signed the Energy Policy and Conservation Act, which has important transportation aspects in terms of fuel economy and conservation, on December 22, 1975.
-- AIR TRANSPORTATION --
One of President Ford's highest priorities for his administration is comprehensive reform of government regulation. And in hardly any other area than air transportation is the need more urgent.
"The airlines don't want their current situation with the CAB changed. They have gotten used to it, they've got a lot of lawyers who enjoy it; and the net result is, we are in the 'status quo' even though the circumstances have changed significantly."
President Ford
April 2, 1976
Thus, among the legislative proposals that the President has submitted to the Congress is an Aviation Act, which if enacted would:
Encourage price competition in the airline industry;
Provide greater freedom of entry for new airline service to particular air markets throughout the U.S.;
Broaden the availability of charter services;
Allow carriers to transfer route authority freely; and
Promote regulation that protects the consumer's interest rather than special industry interests.
By increasing reliance on market forces and decreasing economic regulation, this bill should result in lower fares and increased service for the air-travel consumer.
In July 1976, the Congress passed the Airport and Airway Development Act, originally proposed by President Ford. This Act:
Improves the financial and design planning processes for airports;
Outlines steps to reduce noise near airports;
Provides for a fairer system of assessing user charges.
President Ford's Administration has also endorsed a seven-point program that will help U.S. airlines operating to other countries to compete better with the heavily subsidized airlines of other nations.
-- THE "CONCORDE" SST --
Last year the President responded to the controversial question of whether the "Concorde" should be permitted to operate in the U.S. by ordering a thorough investigation and study. In February 1976, the Secretary of Transportation, William Coleman, completed extensive hearings and authorized a 16-month trial of "Concorde" operations at New York and Washington, D.C., Airports.
"Through these operations . . . we can get specific technical information . . . on . . . noise or any interference with the environment . . . and at the end of that 16-month trial period there will be an evaluation made by the Secretary of Transportation . . . But the only way you can find out is to actually undertake them on a limited basis for a limited period of time, and I fully support Secretary Coleman's decision."
President Ford
April 23, 1976
-- MASS TRANSPORTATION --
"There is a legitimate and major role to be played by the Federal Government in assisting urban mass transit systems. But I emphasize here that the role must be carried out in complete and total partnership with States and localities."
President Ford
September 9, 1976
Since the first few weeks of President Ford's administration, he has reiterated his concern that the revitalization of our cities be conducted according to local and regional plans, with Federal facilitation rather than Federal direction. The President's policy for mass transportation emphasizes the building of an attractive alternative to private vehicles.
The President's concern is formalized in the Statement of National Transportation policy issued in Septmeber [September] 1975:
" Federal policy for urban transportation should at once respond to locally determined transportation goals and serve such national objectives as the enhancement of our cities as vital commercial and cultural centers, control of air pollution, conservation of energy, access to transportation for all citizens and particularly the disadvantaged, facilitation of full employment and more rational use of land."
In fufilling [fulfilling] his policy, the President, on November 26, 1974 signed the National Mass Transportation Assistance Act of 1974 which provides a six-year, $11.8 billion program of financing and planning assistance. The President was directly involved in the development of the Act.
He also signed into law the Federal-Aid Highway Act of 1976. The Act authorizes the use of highway funds for a wider range of transportation needs, permitting individual states much greater flexibility in meeting their individual needs.
The President was particularly pleased to see the implementation, under the Department of Transportation, of a special new program for improving public transportation in America's rural areas. Five hundred million dollars has been authorized for this program over the next four years.
- Overview -
"Of all the important days to be celebrated during America's Bicentennial, none is more worthy of special observance than Veterans Day. Had not the patriotic men and women to whom we pay deserved and grateful tribute on Veterans Day heard and answered freedom's call during the past 200 years, there would be no American Bicentennial of freedom."
President Ford
Proclamation of Veterans Day, 1975
President Ford, a veteran of the Second World War himself, has been thus honoring America's veterans and fighting for their deserved benefits since the days even before he was first selected to the Congress. In 1948 he was named Young Man of the Year by the Grand Rapids Jaycees for his efforts in getting more housing and job-training opportunities for veterans.
Since taking office in 1974, President Ford has:
Submitted a record VA budget for FY 1976 of $18 billion.
Signed Public Law 94-71, raising compensation payments for service-disabled veterans on the same cost-of-living basis enjoyed by other groups receiving Federal benefit increases.
Despite tight constraints he himself placed upon the FY 1977 recommended budget, requested a record amount of more than $4 billion for VA medical care.
Repeatedly praised and honored the many veterans' organizations for their work in alleviating the special needs and problems of veterans returning to the civilian world.
MIAs IN SOUTHEAST ASIA
Of all the personal tragedies affecting the lives of Americans from the war in Vietnam, perhaps the most moving is the lingering doubt many must endure over the fate of servicemen and civilians who remain listed as "missing in action." In trying to bind up the nation's wounds from that war, President Ford has been keeping pressure on the Communist governments of Southeast Asia to cooperate in accounting for the MIAs.
"The world should know that the United States will not falter in its determination to achieve an adequate accounting of our MIAs."
President Ford
Memorial Day, 1975
Later, he made our position unequivocal:
"Our policies toward the new regime of the Peninsula will be determined by their conduct toward us. We are prepared to reciprocate gestures of good will--particularly the return of Americans killed or missing in action, or information about them."
President Ford
Hawaii, Dec. 7, 1975
To encourage the success of private groups organized for the MIAs' cause, and to foster continued public concern, each January President Ford has declared a national day of remembrance for MIAs.
And President Ford has taken an active hand in resolving MIA cases. During his recent visit to the Peoples' Republic of China he discussed this issue with the Chinese leadership, and they provided him information on the fate of 24 Americans who had died on P. R. C. territory or in its waters.
VETERAN'S EDUCATION BENEFITS
The primary purpose of all GI Bill education programs -- World War II, Korean conflict and Vietnam-era -- has been to assist veterans make the transition from military to civilian life by helping them get the education they might have received if they had not served their country in a time of national emergency.
The Vietnam-era GI Bill has served its purpose well. By the end of 1976, over 7 million people will have taken advantage of their education benefits at a cost to the Government of almost $23 billion. But until May of 1975 peacetime volunteers remained fully eligible for all the wartime benefits designed to reward those who entered military service during the period of actual hostilities in Vietnam. President Ford, seeing that the period between cessation of hostilities and termination of wartime benefits was already longer for the Vietnam war than for any previous war, terminated eligibility at that time. However he emphasized that:
". . . the termination actions will in no manner impair the eligibility for full wartime benefits of . . . Vietnam-era veterans already discharged, or those presently serving in our Armed Forces.
"Future veterans disabled in service will continue to receive Veterans Administration compensation and other service-connected benefits on an absolute par with present wartime benefits. Families of those who die in service will receive the same service-connected benefits available to veterans of wartime service."
MEDICAL BENEFITS
President Ford has been especially aware of the needs of those men and women who gave more than just their time. Speaking to the Disabled American Veterans he said:
". . . yours was the ultimate involvement. You gave your muscle, your blood, your courage, and your years. It was a priceless gift . . . that America must never forget, and . . . I salute each and every one of you . . .
"By maintaining, by improving our Veterans Administration we can ensure that veterans will get the help they richly deserve. That is why, even within the tight constraints of the Federal budget for fiscal year 1977, I have recommended a record amount of over four billion dollars for VA medical care."
President Ford has continued implementation of the major recommendations of the 1974 Quality of Care survey of all Va [VA] hospitals. The fiscal 1977 budget he has recommended will provide funds for the balance of more than 9,000 personnel added to the VA medical care staff, and for $200 million in construction work and correction of safety deficiencies in VA hospitals. As President Ford has said,
"Our prime responsibility is to provide the finest medical care for those who were injured in wartime . . ."
Recently, the President approved a program for the construction of all eight new hospitals recommended by the VA on the basis of planning studies by independent contractors. These studies were undertaken in response to a Congressional expression that additional hospitals be built. President Ford's 1977 budget includes funds for the two projects given the highest priority by the Administrator of Veterans' Affairs--Richmond, Virginia; and Bay Pines, Florida. The President plans to seek construction funds for the other six replacement hospitals at the rate of two a year for the succeeding three years. These other locations are:
Martinburg, W. Va.
Portland, Ore.
Seattle, Wash.
Little Rock, Ark
Baltimore, Md.
Camden, N. J.
In announcing his plan, the President said:
"Over one million people are served annually by Veterans Administration hospitals, nursing homes, and domiciliary facilities. They deserve to continue to receive care of the highest quality and the latest in medical research. This requires adequate hospital facilities. The actions I am announcing today reflect my commitment that the Nation's veterans be assured of the finest in quality medical care."
VETERAN'S CEMETERIES
"There is no higher honor or more solemn privilege than to represent our nation in paying tribute to its honored dead . . .
"All who come to Arlington . . . must reflect upon the sacrifices made by those . . . brave Americans who lie in rest on these hillsides, as beneath silent markers at Valley Force [Forge], Gettysburg, and Pearl Harbor."
President Ford
Memorial Day, 1976
President Ford, like the millions of his fellow Americans who also took up arms to defend our freedoms, feels that the real measure of a nation's tribute for its heroes is in providing an honorable final resting place.
"The freedom we enjoy today, these fallen won for us. The way of life that we cherish, they protected for us. The heritage they defended is now in our hands. We are guardians of their trust. Arlington Cemetery is their sacred shrine, but their greatest monument is the America they died to defend."
President Ford
Memorial Day, 1975
In the past year the Veterans Administration has established two new National Cemeteries--Otis Air Force Base, in Massachusetts; and Riverside, California--and it will soon be developing additional cemeteries: one in Pennsylvania, and another in Virginia not far from the nation's capital.
The two cemeteries in Massachusetts and California are planned to include 750,000 gravesites. In the past two years the total number of available gravesites in the National Cemetery System has increased by about 20 per cent.
--Overview--
Since his inauguration in August, 1974, President Ford and the American people have together had to face the many diifculties [difficulties] created by a severe economic crisis, exploitation of our dependence on foreign energy sources, and the consequences of excessive Federal spending and regulation of the private sector. On 55 occasions, the President has said "no" to, or returned to the Congress without his signature, bills which the Democrat-controlled Congress has passed which would have exacerbated or failed to address these problems--bills which would have:
Increased the Federal deficit by billions of dollars.
Increased our dependence on foreign sources of energy.
Increased costs to the consumer.
Duplicated programs already in existence.
The President said earlier this year, "If we are to do what must be done, we must stop doing what need not be done." In carrying out his responsibilities, President Ford has used his veto power to save the taxpayer over $9.2 billion. The Democrat Congress has overridden only eleven of the President's 56 vetoes.
This judicious use of his veto power has been instrumental in reducing the rate of growth in government spending by half, gaining the average American household more than $150 a year.
While some people have opposed his difficult decisions, a majority of Americans support the need to restrain excessive Government expenditures. In a Harris Survey taken earlier this year, 72% of the American citizens polled felt that they did not get full value out of their tax dollars.
The President has not merely opposed these legislative mistakes. In every instance, President Ford proposed better, more workable and responsive alternatives that his many years of leiglsative [legislative] experience allowed him and his advisors to devise. Many of the President's programs have been passed, while others still await Congressional action.
The "Christmas tax cut" bill provides a useful example of this positive use of the veto. In October, President Ford proposed cutting the upcoming Federal budget by $28 billion coupling this with a tax cut of the same amount. He repeatedly asserted that he would veto any tax cut which failed to include a commitment to dollar-for-dollar budget cuts.
Apparently, the Congress didn't believe him, because on December 17, he received a tax cut bill with extended, for only six months, the 1975 tax cuts -- and failed to include any provision for a reduction in federal spending.
As promised, President Ford vetoed this bill, and the Democratic-controlled Congress found itself unable to override his veto. The President and the Congress then worked out a compromise in which the Congress accepted his principle, linking future tax cuts to budgetary restraint. Congress agreed to balance future tax cuts with dollar-for-dollar spending cuts.
Other examples of the costly, inefficient, and poor legislation passed by the Democrat Congress and stopped by President Ford include:
The Surface Mining Control and Reclamation Act (H.R. 25) which would have:
-- cost some 36,000 jobs.
-- caused consumers to pay increased prices for electricity.
-- decreased coal production potentially by as much as 162 million tons, and increased our dependence on foreign oil by 640,000 barrels of oil.
The Emergency Housing Act (H.R. 4485), which would have:
-- cost the American taxpayer an additional $1 billion and increased the Federal deficit by the same amount.
-- duplicated powers already on the books.
Petroleum Price Review Act, which would have:
-- increased domestic petroleum consumption and increased our reliance on foreign oil by 350,000 per day by 1977.
-- cut domestic production of oil.
Recently, President Ford said "no" to a costly, $6.1 billion big-spending public works bill. It was a bill that would have cost every American taxpayer an average of $50. The President said it was an election-year "hoax." His veto was upheld in the Senate because many members of that body saw that he was right.
In each case, the President has proposed a more workable alternative. President Ford has consistently used his veto power wisely, with discretion, in order to save the taxpayer billions of dollars and to constructively solve the difficult problems this country faces.
Exemption of Members of Congress From Certain Local Income Taxes
The 54th Presidential veto was exercised to prevent the Congress from creating still another "narrow and special class of persons"--the Congress itself. This bill would have provided that a Member of Congress need not pay income tax levied by a state or municipality in which the Member lives for the purpose of attending Congress. Upon returning the bill without his approval, the President commented:
As the end of this session of Congress approaches, the American people would be better served if Congress would direct its attention to the important laws that should be passed this year -- to cut taxes and spending; to expand catastrophic health care programs; to limit court ordered bussing; to attack crime and drugs; and to address many other important matters of concern to the American people--rather than enacting legislation such as S. 2447.
--Overview--
The President has long been a strong supporter of greater opportunity for American women.
In 1970, when he was serving as House Minority Leader, Mr. Ford was instrumental in lining up some of the last signatures to obtain a "discharge petition" to free the Equal Rights Amendment from committee, where it had languished for 47 years, and bring it to the floor of the House of Representatives.
In his 1976 Women's Equality Day Proclamation, President Ford said,
"It would be most fitting for the ratification of the Equal Rights Amendment to be accomplished as we begin our third century."
On July 1, 1976, the President directed the Attorney General to review the entire United States Code to determine the need for revising sex-based provisions that are not justified in law nor supported by wise policy. The President made it clear on that occasion that he was determined to eliminate all vestiges of discrimination within the Federal government.
In March of this year, the Secretary of the Treasury presented the Administration's tax proposals. The President recommended the elimination of the estate and gift tax on all transfers between spouses. This proposal is now under consideration by the Congress.
The President has also supposted [supported] the establishment and appointment of the National Commission on the Observance of International Women's Year and he signed the legislation which directs the National Commission to plan and convene a National Women's Conference to be preceded by 56 state and territorial conferences. On July lst of this year, the President accepted the report of the National Commission in a ceremony at the White House.
In March of 1975 the President directed the heads of Federal Departments and agencies to guarantee that all persons have an opportunity to compete on a fair and equal basis for employment and advancement in the federal government. The Chairman of the Civil Service Commission was directed to evaluate this program and report back to the President on an annual basis.
President Ford has also supported and signed the following legislation:
The Housing and Community Development Act, which prohibits discrimination on the basis of sex in housing and mortgage credit lending.
The Equal Credit Opportunity Act of 1974, which prohibits discrimination on the basis of sex and marital status in the granting of consumer credit. The Federal Reserve published regulations to ensure enforcement of equal credit opportunities last October.
The Education Amendments of 1974, which include a section entitled the Women's Education Equity Act, providing funds for the development of curricula and textbooks to advance equality in education.
The Military Procurement Bill of 1975, which permits women to be eligible for appointment and admission to the service academies for classes entering in the calendar year 1976.
President Ford has also directed his Special Assistant for Women to maintain open liaison with over 300 national women's organizations with a combined membership of over 100 million.
Since taking office, the President has emphasized the need to increase the number of women in high-level positions in the federal government. As a result, 14 percent of all new appointments have been women. This is higher than all previous administration.
Among the President's appointments are: Carla Hills, Secretary of Housing and Urban Development; Marjorie Lynch, Under Secretary of Health, Education, and Welfare; Juanita Ashcraft, Assistant Secretary of the Air Force; Judith Connor, Assistant Secretary of Transportation; Constance Newman, Assistant Secretary of Housing and Urban Development; Anne Armstrong, Ambassador to the Court of St. James; Shirley Temple Black, Chief of Protocol; Rosemary Ginn, Ambassador to Luxembourg; Marquita Maytag, Ambassador to Nepal; Mary Olmsted, Ambassador to Papua New Guinea; Betty Southard Murphy, Chairman, National Labor Relations Board; Katherine Bailey, Member, National Transportation Safety Board; Betty Jo Christian, Commissioner, Interstate Commerce Commission; Barbara Anne Simpson, Commissioner, Federal Power Commission; Georgiana Sheldon, Commissioner, Civil Service Commission; Ethel Bent Walsh, reappointed as Vice Chairman, EEOC; Margita White (nomination pending) Commissioner, Federal Communications Commission; Eloise Clark, Assistant Director, National Science Foundation; Mary Richey, U.S. District Judge, Arizona; Elizabeth Kovacavich, U.S. District Judge, Middle District of Florida; Susan Gordon, Assistant Secretary, Department of Health, Education, and Welfare.
On his own staff, in the White House, he has appointed Gwen Anderson, Deputy Assistant to the Counselor to the President; Jeanne M. Holm, Special Assistant to the President; Judith Hope, Associate Director of the Domestic Council; Barbara Greene Kilberg, Associate Counsel; and Virginia Knauer, Special Assistant to the President for Consumer Affairs.
ABORTION
President Ford has stated that he is personally opposed to abortion on demand -- and believes that the 1973 Supreme Court decision went too far in that direction.
The President is also opposed to a constitutional amendment which would totally prohibit abortion -- there are very limited circumstances -- "the illness of a mother, or rape or any of the other unfortunate things that might happen" -- which might make an abortion necessary.
The only Federal action which President Ford would support would be a constitutional amendment giving to the states the authority to make regulations for abortion within that state.
His position is one which he has held consistently over the years. It is based on President Ford's strong belief in the Federal system, which holds that such moral and deeply personal issues should not be settled as a matter of national policy, but rather should be decided by the people closer to home, in their own states.
EQUAL RIGHTS AMENDMENT
President Ford is a long-time supporter of the Equal Rights Amendment and has urged its ratification by the states in numerous speeches and interviews.
In 1970, when ERA first reached the House of Representatives floor, the then House Minority Leader Ford was instrumental in obtaining enough votes to get a discharge petition to free the measure from Committee where it had been for 47 years. A Congresswoman who led the ERA fight said:
"Congressman Ford supplied some real moxie too; he lined up 15 to 16 names right at the end."
On February 4, 1976, during an interview, President Ford told the New Hampshire Times:
"I support ratification of the Equal Rights Amendment and I have urged the adoption of it by the states. The Nation cannot afford discrimination against any individual based solely upon race, creed, sex, or national origin. As we enter our third century as a Nation, it is particularly important that we reaffirm our commitment to equal opportunities for all our citizens."
On July 1, 1976, he stated before a group of 1,000 leaders on the White House lawn:
"Because this Nation is founded on the principle that all citizens share the same rights, what affects the rights of one affects the freedoms of all. The job before us . . . is to bring our national life into harmony with our national philosophy. This is an awesome task. It is a difficult problem. But we faced such tasks before and I think we can win." . . .
"More than half a century after women's sufferage [suffrage] became law, much still remains to be done. . . . Not just compassion but justice and logic dictate that we remove the inequities that still exist."
"Since becoming President, I have supported and signed into law legislation prohibiting sex discrimination in housing, credit, and education. Some of the laws discriminating against women appear petty and even ridiculous. But the fact is, they are all equally inconsistent with the American philosophy of equality."
In his 1976 Women's Equality Day Proclamation, President Ford said:
"To remind all Americans that it is fitting and just to secure legal equality for all women and men, (I) do hereby designate and proclaim August 26, 1976, as Women's Equality Day.
I call upon all the citizens of the United States to mark this day with appropriate activities, and I call upon those States who have not ratified the Equal Rights Amendment to give serious consideration to its ratification and the upholding of our Nation's heritage."
Overview
"I have a lot of faith, I have tremendous belief in what the younger generation of this country is going to do in the years ahead."
President Gerald R. Ford
West Texas State University
April 10, 1976
The President, whose own sense of honesty and integrity has restored trust to government, realizes that the principles and ideals of youth must be honored by all public officials.
The President reared his children to think for themselves and to speak their own minds. It is a close knit family. President Ford is not above listening to advice from his children. He told a high school student during a question-and-answer session at LaCrosse, Wisconsin, on March 27, 1976, that:
"When I was in Congress I got a lot of nonvoting advice from my own four children, believe me."
The young student had asked the President what role he thought people too young to vote could play in government.
President Ford replied:
"Just because you may be about 17 and one-half does not mean you can't be a participant. You can do something to influence others and you can get people to the polls, and we have to get a maximum vote in 1976 to prove to the world that we love and cherish our democracy. We can't neglect the right to vote."
The 18-year Old Vote
The President recalled that when in Congress he strongly supported the constitutional amendment that made it possible for 18-year-olds to vote.
"Many people said it would be unhealthy, that they were not qualified," he added. "I think they are. Their participation has been excellent."
Disadvantaged Youth
Also on the job front, the President signed into law legislation providing $528 million to support 888,100 jobs for disadvantaged youth this summer. He said this action, together with related summer youth programs, would produce summer jobs for 1.5 million young people in the 1976 summer.
Directed the heads of all Federal departments and agencies to cooperate in efforts to provide summer jobs in Government for 54,000 needy youths.
The President called for 26,000 youths to do conservation work under the Department of Agriculture and Interior Department.
Ensuring Equal Opportunity
The President signed in March amendments to the Equal Opportunity Credit Act which bars discrimination against persons in obtaining credit for reasons unrelated to their credit worthiness. This law should help young working people below 21 in obtaining credit which otherwise might have been denied them because of age alone.
Education
In actions relating to education, President Ford:
Supported the concept that aid for college and University students should be provided to the individual students rather than to institutions so that the students can choose the kind of education they want.
Requested full funding of the Basic Opportunity Grants program in both 1976 and 1977 to enable needy students to receive up to $1,400 a year, but no more than half the money needed to meet their educational costs. Additional funds come from loans, work study programs, and resources of the student or his family.
The President's budget for the 1977 fiscal year includes $6.3 billion for higher education, including $4.3 billion for the G.I. Bill. (See Education section for more detail.)
President Ford summed up his beliefs about American youth in remarks at Birmingham, Alabama, on May 3, 1976:
"I deeply believe in America's young people above all else. In 200 years we have forged from a struggling group of colonies to the greatest nation in the history of the world. Our progress in every field has been unprecedented and much of that progress has always been due to the strength and due to the character of young Americans."