Statement of Administration Policy: H.R. 2491 - Department of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Bill, FY 1994

(House Rules)
(Sponsors: Natcher (D), Kentucky; Louis Stokes (D), Ohio)

This Statement of Administration Policy expresses the Administration's views on H.R. 2491, the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Bill, FY 1994, as reported by the House Appropriations Committee. The Committee is to be commended for supporting essential housing, veterans, environmental protection, science, and space programs. The Administration supports the Committee bill and will work with the House to address our concerns, the most critical of which are discussed below.

President's Investment Program

While agreeing with many of the decisions made by the Committee and understanding the difficult choices it faced, the Administration is concerned that the Committee did not provide funding for some of the Administration's key investment programs. These programs include the Community Investment Program, the National Service Initiative, and Community Development Banks.

These concerns could be satisfactorily addressed through a reallocation of funding from lower-priority programs. The Administration is committed to working with the House to identify reductions, in an effort to provide funding for those investment proposals that are not yet authorized.

Community Investment Program

The Committee has not funded the request for the Community Investment Program (CIP). The CIP provides critical hon-tax elements of the Administration's proposed economic empowerment initiative and is an integral part of the President's policing and public safety initiative. Combined with the $500 million that was appropriated for the program in FY 1993, the requested funding would provide needed law enforcement, job training, day care, community development, and other programs to assist distressed communities throughout the country.

National Service Initiative

The Committee has not funded the request for the National Service Initiative. This program is a Presidential priority. The President's request would: (1) meet community needs by providing service opportunities in the areas of education, environment, public safety, and human services; (2) provide opportunities for 25,000 Americans to serve in FY 1994; and (3) help national service participants pay for higher education with an educational award of $5,000 for each year of service (maximum of two years). The President's request would also provide for increased participation in the most successful activities of the Commission on National and Community Service and ACTION.

Community Development Banks

The Administration urges the House to restore the modest funding request for the community Development Bank initiative. The President's request of $60 million would provide funding for financial institutions serving low-income distressed areas to expand the availability of loans and credit for housing and business purposes in these traditionally under-served communities. This initiative is an integral component of the Administration's commitment to restoring the economic health and vitality of the nation's urban and rural areas.

National Aeronautics and Space Administration (NASA)

The Administration commends the Committee for providing funding for the Space Station and New Technology Investments consistent with the President's budget amendment for NASA, which was submitted to Congress on June 21, 1993. The Space Station request is the result of an extensive design review that was conducted by NASA and confirmed by an independent panel. The amended request reflects the budget reductions identified by the review as well as improvements to program management.

Likewise, the Administration supports the Committee's full funding of the New Technology Investments, which would set a new direction for NASA's technology and applications programs and would strengthen our national capabilities in space and aeronautics.

Environmental Protection Agency

The Administration commends the Committee for specifically identifying $80 million in requested funding for water infrastructure grants for Mexican border projects in support of the North American Free Trade Agreement (NAFTA) . The Administration urges the House to similarly identify the $70 million requested for water infrastructure projects in Tijuana, Mexico, which also supports NAFTA and is currently authorized in section 510 of the 1987 Water Quality Act. The funding is needed to address major water quality problems in the border area resulting from Mexican sewage flows from Tijuana.