94th Congress, lst Session House Document No. 94-469

VETO OF THE EMERGENCY EMPLOYMENT

APPROPRIATION ACT, 1975

MESSAGE

FROM

THE PRESIDENT OF THE UNITED STATES VETOING

H.R. 4481, AN ACT MAKING EMERGENCY EMPLOYMENT

APPROPRIATIONS FOR THE FISCAL YEAR ENDING JUNE 30,

1975, AND FOR OTHER PURPOSES

JUNE 2, 1975.-Message and accompanying act ordered to be

printed as a House document

U.S. GOVERNMENT PRINTING OFFICE

38-011 WASHINGTON : 1975
Tn WHITE HOUSE, May 28,1975.

To the House of Representatives:

I return without my approval, H.R. 4481, the Emergency Employinent Appropriation Act.

Earlier this year, I asked the Congress for legislation to deal with

the Nation's most immediate employment problems through an extension of public service jobs and a program of summer youth employ- ment.

The Congress has taken this simple, straightforward and specific

proposal and turned it into a bill containing a host of provisions of

questionable value.

This bill, as presented to me, is not an effective response to the unem ployment problem. It would exacerbate both budgetary and economic

pressures, and its chief impact would be felt long after our current unemployment problems are expected to subside.

The bill authorizes spending of $3.3 billion above my budget re- quests. Almost half of this added spending would occur in fiscal 1976

and an appreciable amount of spending would continue in calendar

year 1977. Economic recovery is expected to be well underway by the

end of 1975, and the accelerative influences of this bill would come

much too late to give impetus to this recovery. Instead, those influ- ences would run the risk of contributing to a new round of inflation

later on.

In my address to the Nation on March 29, announcing my decision to sign the Tax Reduction Act, I stressed the need to keep the 1976

deficit below $60 billion. This bill is one of many being considered by

the Congress that, combined, would increase the deficit to $100 billion or more. Already, Congresional actions and inactions have added $7.3

billion to the 1975 deficit and $4.4 billion to the 1976 deficit.

Such an increase in the Federal budget deficit would lead to an in- crease in Federal borrowing from private financial markets. These

heavy Federal demands for capital could deprive business firms of

funds needed for modernization and expansion of capacity.

Thus, H.R. 4481 would contribute to choking off the very economic

growth it is intended to stimulate.

To help overcome the recession and high unemployment, I have proposed, and the Congress has enacted, a major tax cut. I have also proposed an extension of unemployment compensation benefits, together

with increases, which are included in this bill for public service jobs

and summer employment.

Further stimulus would hurt more than it would help our economy

in the long run. H.R. 4481 provides for too much stimulus, too late,

and I must therefore veto the bill.

The need remains, however, for a bill that would provide the funds

I recommended for immediate and temporary employment through

the public sector and summer youth jobs. Since student summer vaca- tions are close at hand, I urge the Congress to pass such a bill as quickly

as possible. GiSLO . Fois.