An Act to amend Public Law 815, 81st Congress, to provide a temporary program of assistance in the construction of minimum school facilities in areas affected by Federal activities, and for other purposes
PL 83-246 (H.R.6049), enacted 08/08/1953

522 
PUBLIC LAW 246-AUG. 8, 1953 
[67 S T A T . 
Public Law 246 
CHAPTER 400 
August 8,1953 
-^^ ACT 
'•"• ^' °"^^^ 
To amend Public Law 815, Eighty-first Congress, to provide a temporary 
program of assistance in the construction of minimum school facilities in areas 
affected by Federal activities, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That the Act of 
20irec2sY.255 September 23, 1950 (Public Law 815, Eighty-first Congress), is 
271-280. 
' amended by adding at the end thereof the following new titles: 
"TITLE III—SCHOOL CONSTRUCTION ASSISTANCE IN 
AREAS W I T H SUBSTANTIAL INCREASES IN FEDER-
ALLY-CONNECTED SCHOOL CHILDREN 
"PURPOSE AND APPROPRIATION 
"SEC. 301. The purpose of this title is to provide assistance for the 
construction of urgently needed minimum school facilities in school 
districts which, since the school year 1951-1952, have had substantial 
increases in school membership as a result of new or increased Federal 
activities. There are hereby authorized to be appropriated for the 
fiscal year ending June 30, 1954, and the succeeding fiscal year such 
sums as the Congress may determine to be necessary for such purpose. 
"PORTION OF APPROPRIATIONS AVAILABLE FOR PAYMENTS 
"SEC. 302. For each fiscal year the Commissioner shall determine the 
portion of the funds appropriated pursuant to section 301 which shall 
be available for carrying out the provisions of sections 309 and 310. 
The remainder of such funds shall be available for paying to local 
educational agencies the Federal share of the cost of projects for the 
construction of school facilities for which applications have been 
approved under section 306. 
u 
ESTABLISHMENT OF PRIORITIES 
" S E C 303. The Commissioner shall from time to time set dates, the 
last of which shall be not later than June 30, 1954, by which appli-
cations for payments under this title with respect to construction 
projects must be filed. If the funds appropriated under this title and 
remaining available on any such date for payments to local educational 
agencies are less than the Federal share of the cost of the projects with 
respect to which applications have been filed prior to such date (and 
for which funds under this title have not already been obligated), 
the Commissioner shall by regulation prescribe an order of priority, 
based on relative urgency of need, for approval of such applications. 
Only applications meeting the conditions for approval under this title 
(other than section 306 (b) (3)) shall be considered applications for 
purposes of the preceding sentence. 
"FEDERAL SHARE FOR ANY PROJECT 
"SEC. 304. Subject to section 305 (which imposes limitations on the 
total of the payments which may be made to any local educational 
agency), the Federal share of the cost of a project under this title shall 
be equal to such cost, but in no case to exceed the cost, in the school 
district of the applicant, of constructing minimum school facilities, 
and in no case to exceed the cost in such district of constructing mini-
mum school facilities for the estimated number of children who will 
67 STAT.] 
PUBLIC LAW 246-AUG. 8, 1953 
523 
be in the membership of the schools of such agency at the close of the 
regular school year 1953-1954 and who will otherwise be without such 
facilities at such time. 
For the purposes of the preceding sentence, 
the number of such children who will otherwise be without such facili-
ties at such time shall be determined by reference to those facilities 
which (A) are built or under contract as of the date set by the Com-
missioner under section 303 for filing applications for payments from 
the funds out of which such Federal share is to be paid, or (B) as of 
the date the application for such project is approved, are included 
in a project for which funds have been set aside under title I I or in 
a project the application for which has been approved under this title. 
a LIMITATION ON TOTAL PAYMENTS TO ANY LOCAL EDUCATIONAL AGENCY 
"SEC. 305. (a) Subject to the limitations in subsections (c) and (d), 
the total of the payments to a local educational agency under this title 
may not exceed the sum of the following: 
" (1) The estimated increase, since the regular school year 1951-
1952, in the number of children residing on Federal property with 
a parent employed on Federal property (situated in whole or in 
part in the same State as the school district of such agency or 
within reasonable commuting distance from such school district), 
multiplied by 95 per centum of the average per pupil cost of con-
structing minimum school facilities in the State in which the 
school district of such agency is situated; and 
" (2) The estimated increase, since the regular school year 1951-
1952, in the number of children residing on Federal property, or 
residing with a parent employed on Federal property (situated in 
whole or in part in the same State as the school district of such 
agency or within reasonable commuting distance from such school 
district), multiplied by 50 per centum of the average per pupil 
cost of constructing minimum school facilities in the State in 
which the school district of such agency is situated; and 
" (3) The estimated increase, since the regular school year 1951-
1952, in the number of children whose membership results directly 
from activities of the United States (carried on either directly or 
through a contractor), multiplied by 45 per centum of the average 
per pupil cost of constructing minimum school facilities in the 
State in which the school district of such agency is situated; but 
this paragraph (3) shall not apply unless the school district of 
NonappUcabUity. 
such agency is partly or wholly situated within an area with 
respect to which, for the purposes of this Act, the President finds: 
(A) that a new defense plant or installation has been or is to be 
provided therein, or an existing defense plant or installation 
therein has been or is to be reactivated or its operation substan-
tially expanded, and (B) that substantial in-migration of defense 
workers or military personnel is required to carry out activities at 
such plant or installation, and (C) after consultation with the 
Commissioner, that the minimum school facilities required for the 
free public education of the children of such defense workers or 
military personnel are not available. 
For purposes of this para-
graph, the Commissioner shall not consider as activities of the 
United States those activities which are carried on in connection 
with real property excluded from the definition of Federal prop-
erty by the last sentence of paragraph (1) of section 210, but shall 
20 use 280. 
^if the local educational agency so elects pursuant to subsection 
(b)) consider as children whose membership results directly from 
activities of the United States children residing on Federal prop-
erty or residing with a parent employed on Federal property. 
524 
PUBLIC LAW 246~AUG. 8, 1953 
[67 ST A T . 
Election. 
Noneligibllity. 
comp a r i s o n o
f In Computing for any local educational agency the number of children 
shipT**** member- ^^ ^^^ increase under paragraph (1), (2), or (8), the estimated number 
of children described in such paragraph who will be in the member-
ship of the schools of such agency at the close of the regular school year 
1953-1954 shall be compared with the estimated number of such chil-
dren in the average daily membership of the schools of such agency 
during the regular school year 1951-1952. 
"(b) If two or more of the paragraphs of subsection (a) apply to a 
child, the local educational agency shall elect which of such paragraphs 
shall apply to such child. 
"(c) A local educational agency shall not be eligible to have any 
amount included in its maximum by reason of paragraph (1), (2), or 
(3) of subsection (a) unless the increase in children referred to in such 
paragraph, prior to the application of the limitation in subsection (d), 
is at least 20 and is equal to at least 5 per centum in the case of para-
graph (1) or (2), and 10 per centum in the case of paragraph (3), of 
the number of all children who were in the average daily membership 
of the schools of such agency during the regular school year 1951-1952, 
and unless, in the case of paragraph (3), the construction of additional 
minimum school facilities for the number of children in such increase 
will, in the judgment of the Commissioner of Education, impose an 
undue financial burden on the taxing and borrowing authority of such 
agency. 
"(d) If (1) the estimated number of non-Federally-connected chil-
dren who will be in the membership of the schools of a local educa-
tional agency at the close of the regular school year 1953-1954 is less 
than (2) 110 per centum of the number of such children who were in 
the average daily membership of such agency during the regular 
school year 1951-1952, the total number of children counted for pur-
poses of subsection (a) with respect to such agency shall be reduced 
by the difference between (1) and (2) hereof. For purposes of this 
subsection, all children in the membership of a local educational 
agency shall be counted as non-Federally-connected children except 
children whose membership in the school years 1951-1952 and 1953-
1954 was compared in computing an increase which meets the require-
ments of subsection (c). 
"(e) Notwithstanding the provisions of subsections (c) and (d) of 
this section, whenever and to the extent that, in his judgment, excep-
tional circumstances exist which make such action necessary to avoid 
inequity and avoid defeating the purposes of this title, the Commis-
sioner may do any one or more of the following: (1) He may waive 
or reduce any percentage requirement or requirements in suDsection 
(c); (2) he may waive the requirement contained in the first sentence 
of subsection (d) or reduce the percentage specified in clause (2) of 
such sentence. 
"APPLICATIONS 
R e d u c t i o n of 
count. 
Waivers, 
Approval. 
20 u s e 275. 
"SEC. 306. (a) No payment may be made to any local educational 
agency under this title except upon application therefor which is sub-
mitted through the appropriate State educational agency and is filed 
with the Commissioner in accordance with regulations prescribed by 
him. 
"(b) The Commissioner shall approve any application if he finds 
(1) that the requirements of section 205 (b) (1) have been met and 
that approval of the project would not result in payments in excess 
of those permitted by sections 304 and 305, (2) after consultation with 
the State and local educational agencies, that the project is not incon-
sistent with over-all State plans for the construction of school facili-
ties, and (3) that there are sufficient Federal funds available to pay 
67 S T A T . ] 
PUBLIC LAW 246-AUG. 8, 1953 
525 
the Federal share of the cost of such project and of all other projects 
for which Federal funds have not already been obligated and appli-
cations for which, under section 303, have a higher priority. 
" (c) No application under this title shall be disapproved in whole or 
in part until the Commissioner of Education has afforded the local 
educational agency reasonable notice and opportunity for hearing. 
u. 
PAYMENTS 
"SEC. 307. (a) Upon approving the application of any local educa-
tional agency under section 306, the Commissioner of Education shall 
pay to such agency an amount equal to 10 per centum of the Federal 
share of the cost of the project. After final drawings and specifica-
tions have been approved by the Commissioner of Education and the 
construction contract has been entered into, the Commissioner shall, 
in accordance with regulations prescribed by him and at such times 
and in such installments as may be reasonable, pay to such agency the 
remainder of the Federal share of the cost of the project. 
Payments 
under this title shall be made through the disbursing facilities of the 
Department of the Treasury and prior to audit or settlement by the 
General Accounting Office. 
"(b) Any funds paid to a local educational agency under this title 
and not expended for the purposes for which paid shall be repaid to 
the Treasury of the United States. 
"ADDITIONAL PAYMENTS 
"SEC. 308. Sums appropriated pursuant to this title, other than 
sums appropriated for administration, shall remain available until 
expended. 
Xot to exceed 10 per centum of the amount so appropriated 
for any fiscal year (exclusive of any sums appropriated for adminis-
tration) may be used by the Commissioner, under regulations pre-
scribed by him, to make grants to local educational agencies where 
(1) the application of such agencies would be approved under this 
title but for the agencies' inability, unless aided by such grants, to 
finance the non-Federal share of the cost of the projects set forth in 
their applications, or (2) although the applications of such agencies 
have been approved, the projects covered by such applications could 
not, without such grants, be completed, because of flood, fire, or similar 
emergency affecting either the work on the projects or the agencies' 
ability to finance the non-Federal share of the cost of the projects. 
Such grants shall be in addition to the payments otherwise provided 
under this title, shall be made to those local educational agencies 
whose need for additional aid is the most urgent and acute, and in so 
far as practicable shall be made in the same manner and upon the 
same terms and conditions as such other payments. 
"WHERE EFFECT OF FEDERAL ACTIVITIES WILL BE TEMPORARY 
"SEC. 309. Notwithstanding the preceding provisions of this title, 
whenever the Commissioner determines that the membership of some 
or all of the children, who may be included in computing under section 
305 the maximum on the total of the payments for any local educa-
tional agency, will be of temporary duration only, such membership 
shall not be included in computing such maximum. 
Instead, the 
Commissioner may make available to such agency such temporary 
school facilities as may be necessary to take care of such membership; 
or he may, where the local educational agency gives assurance that 
at least minimum school facilities will be provided for such children, 
pay (on such terms and conditions as he deems appropriate to carry 
27000 O - 53 - 36 
526 
PUBLIC LAW 246-AUG. 8, 1963 
[67 STAT. 
out the purposes of this title) to such agency for use in constructing 
school facilities an amount equal to the amount which he estimates 
would be necessary to make available such temporary facilities. 
In no 
case, however, may the amount so paid exceed the cost, in the school 
district of such agency, of constructing minimum school facilities for 
such children. 
"CHILDREN FOR WHOM LOCAL AGENCIES ARE UNABLE TO PROVIDE 
EDUCATION 
"SEC. 310, In the case of children who, it is estimated, will reside on 
Federal property on June 30, 1954— 
" (1) if no tax revenues of the State or any political subdivision 
thereof may be expended for the free public education of such chil-
dren ; or 
" (2) if it is the judgment of the Commissioner, after he has con-
sulted with the appropriate State educational agency, that no local 
educational agency is able to provide suitable free public education 
for such children, 
the Commissioner shall make arrangements for constructing or other-
wise providing the minimum school facilities necessary for the educa-
tion of such children. 
To the maximum extent practicable school 
facilities provided under this section shall be comparable to minimum 
school facilities provided for children in comparable communities in 
Nonappiicabiuty. the State. This section shall not apply (A) to children who reside on 
Federal property under the control of the Atomic Energy Commis-
sion, and (B) to Indian children attending Federally-operated Indian 
schools. 
Whenever it will be necessary for the Commissioner to 
provide school facilities for children residing on Federal property 
under this section, the membership of such children may not be 
included in computing under section 305 the maximum on the total 
of the payments for any local educational agency. 
"WITHHOLDING OF PAYMENTS 
"SEC. 311. Whenever the Commissioner of Education, after reason-
able notice and opportunity for hearing to a local educational agency, 
finds (1) that there is a substantial failure to comply with the drawings 
and specifications for the project, (2) that any funds paid to a local 
educational agency under this title have been diverted from the pur-
poses for which paid, or (3) that any assurance given in an application 
is not being or cannot be carried out, the Commissioner may forthwith 
notify such agency that no further payment will be made under this 
title with respect to such agency until there is no longer any failure 
to comply or the diversion or default has been corrected or, if compli-
ance or correction is impossible, until such agency repays or arranges 
for the repayment of Federal moneys which have been diverted or 
improperly expended. 
"TITLE IV—SCHOOL CONSTRUCTION ASSISTANCE 
IN 
OTHER FEDERALLY-AFFECTED AREAS 
"SEC. 401. (a) If the Commissioner determines with respect to any 
local educational agency that— 
" (1) such agency is providing or, upon completion of the school 
facilities for which provision is made herein, will provide free 
public education for children who reside on Federal property, 
and whose membership in the schools of such agency has not 
20 use 271-280. 
formcd and will not form the basis for payments under title I I or 
67 S T A T . ] 
PUBUC LAW 246-AUG. 8, 1953 
527 
I I I of this Act, and that the total number of such children repre-
sents a substantial percentage of the total number of children 
for whom such agency provides free public education; 
" (2) the immunity of such Federal property to taxation by such 
agency has created a substantial and continuing impairment of its 
ability to finance needed school facilities ; 
" (3) such agency is making a reasonable tax effort and is exer-
cising due diligence in availing itself of State and other financial 
assistance available for the purpose; and 
"(4) such agency does not have sufficient funds available to it 
from other Federal, State, and local sources to provide the mini-
mum school facilities required for free public education in its 
school district, 
he may provide the additional assistance necessary to enable such 
agency to provide such facilities, upon such terms and in such amounts 
(subject to the provisions of this section) as the Commissioner may 
consider to be in the public interest; but such additional assistance may 
not exceed the portion of the cost of such facilities which the Commis-
sioner estimates is attributable to children who reside on Federal 
property, and which has not been, and is not to be, recovered by the 
local educational agency from other sources, including payments by 
the United States under any other provisions of this Act or any other 
law, 
"(b) There are hereby authorized to be appropriated for the fiscal 
year ending June 30, 1954, and the succeeding fiscal year such sums, 
not to exceed $20,000,000 in the aggregate, as may be necessary to carry 
out the provisions of this section. 
There are also authorized to be 
appropriated such sums as may be necessary for administration of such 
provisions. 
Amounts so appropriated, other than amounts appropri-
ated for administration, shall remain available until expended, except 
that after June 30, 1955, no agreement may be made to extend assist-
ance under this section. 
"(c) No payment may be made to any local educational agency under 
subsection (a) except upon application therefor which is submitted 
through the appropriate State educational agency and is filed with the 
Commissioner in accordance with regulations prescribed by him, and 
which meets the requirements of section 205 (b) (1). In determining 
the order in which such applications shall be approved, the Commis-
sioner shall consider the relative educational and financial needs of the 
local educational agencies which have submitted approvable applica-
tions and the nature and extent of the Federal responsibility. 
No 
payment may be made under subsection (a) unless the Commissioner 
finds, after consultation with the State and local educational agencies, 
that the project or projects with respect to which it is made are not 
inconsistent with over-all State plans for the construction of school 
facilities. 
All determinations made by the Commissioner under this 
section shall be made only after consultation with the appropriate 
State educational agency and the local educational agency. 
"(d) Amounts paid by the Commissioner to local educational agen-
cies under subsection (a) may be paid in advance of, or by way of 
reimbursement for, work performed or purchases made pursuant to 
the agreement with the Commissioner under this title, and may be paid 
in such installments as the Commissioner may determine. 
All such 
payments shall be made through the disbursing facilities of the Depart-
ment of the Treasury and prior to audit or settlement by the General 
Accounting Office. 
Any funds paid to a local educational agency and 
not expended or otherwise used for the purposes for which paid shall 
be repaid to the Treasury of the United States." 
Appropriations. 
20 use 275. 
Payments. 
528 
PUBLIC LAW 246-AUG. 8, 1953 
[67 STAT. 
20 use 275. 
SEC. 2. (a) Section 205 (b) (1) (F) of such Act is amended by 
striking out "title" and inserting "Act" in lieu thereof. 
20 use 277. 
(IJ) Section 207 (b) of such Act is amended bj^ inserting "or title 
I I I " after "this title" and inserting "or under section 311" after "this 
section". 
20 use 279. 
^(.^ Section 209 (a) of such Act is amended by striking out "title" 
and inserting "Act" in lieu thereof. 
(d) Section 209 (b) of such Act is amended by striking out "title" 
and inserting "Act" in lieu thereof. 
(e) Section 209 (c) of such Act is amended by inserting after the 
first sentence the following new sentence: "There are hereby author-
ized to be appropriated for the fiscal year ending June 30, 1954, such 
sums as may be necessary to carry out the provisions of this title 
other than sections 203 and 204; but such sums (exclusive of any sums 
appropriated for administration) shall not exceed $55,000,000 in the 
aggregate. 
Sums appropriated pursuant to the preceding sentence 
shall be available for paying unpaid entitlements, but no local edu-
cational agency shall be paid from such sums an amount which exceeds 
70 per centum of its unpaid entitlement. 
For the purposes of the 
preceding sentence, the term 'unpaid entitlement' means the amount 
which the Commissioner would be authorized to pay to a local educa-
tional agency from funds appropriated before July 1, 1953, to carry 
out this title, if such funds were sufficient to make such payment, but 
which cannot be paid from such funds; except that such amount shall 
not include any amount to reimburse such agency for any expenditure 
for construction of school facilities under a contract entered into 
before September 30,1950." 
(f) Section 209 (e) of such Act is amended by striking out "title" 
each time it appears in such section and inserting "Act" in lieu thereof, 
by striking out "June 30, 1953" and inserting "June 30, 1955" in lieu 
thereof, and by inserting "authorized, prior to the date of enactment 
of this Act, for the construction of school facilities to be attended by 
Indian children or appropriations" immediately before clause (1) 
thereof. 
20 use 280. 
(g) The second sentence of section 210 (1) of such Act is amended 
to read as follows: "Such term includes real property which is owned 
by the United States and leased therefrom and the improvements 
thereon, even though tlie lessee's interest, or any improvement on such 
property, is subject to taxation by a State or a political subdivision 
of a State or by the District of Columbia." 
The last sentence of such 
section 210 (1) is amended by striking out "Such" and inserting in lieu 
thereof "Notwithstanding the foregoing provisions of this paragraph, 
such". 
(h) Section 210 (5) of such Act is amended to read as follows: 
Determination of 
"^5) Average daily attendance at, and the membership and average 
s c h o o l m e m b e r - . 
V ' 
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ship. etc. 
daily membership ot, school shall be determined in accordance with 
State law or, in the absence of State law governing such a determi-
nation, in accordance with regulations of the Commissioner; except 
that, notwithstanding any other provision of this title, title III, or 
title IV, where the local educational agency of the school district in 
which any child resides makes or contracts to make a tuition payment 
for the free public education of such child in a school situated in 
another school district, for purposes of this title the attendance of 
such child, and for purposes of titles I I I and IV the membership of 
such child, shall be held and considered— 
"(A) if the two local educational agencies concerned so agree, 
and if such agreement is approved by the Commissioner, as 
attendance at (or membership of) a school of the local educa-
tional agency receiving such tuition payment; 
67 
S T A T . ] 
PUBLIC LAW 247-AUG. 8, 1953 
529 
"(B) in the absence of any such approved agreement, as 
attendance at (or membership of) a school of the local educa-
tional agency so making or contracting to make such tuition 
payment. 
In any determination of average dail}^ attendance at or membership 
of schools, children who are not provided free public education (as 
defined in paragraph (4)) shall not be counted." 
(i) Section 210 (7) of such Act is amended by inserting "or mini-
mum" after "complete" in the first sentence thereof and by adding at 
the end thereof the following new sentence: "The cost of constructing 
minimum school facilities in the school district of a local educational 
agency shall be determined by the Commissioner, after consultation 
with the State and local educational agencies, on the basis of such 
information as may be contained in the application of such local 
educational agency and such other information as he may obtain." 
(j) The last sentence of section 210 (10) of such Act is amended 
to read: "Except as used in sections 203, 204, 309, and 310, such term 
does not include interests in land and off-site improvements." 
(k) Section 210 (11) of such Act is amended by inserting at the 
end thereof the following new sentence: "Whether or not school 
facilities are minimum school facilities shall be determined by the 
Commissioner, after consultation with the State and local educational 
agencies, in accordance with regulations prescribed by him." 
(1) The second sentence of section 210 (12) of such Act is amended 
by inserting before the period at the end thereof "or which has 
responsibility for the provision of such facilities". 
(m) Section 105 (a) of such Act is amended by striking out "title" 
and inserting "Act" in lieu thereof. 
SEC. 3. The amendments made by the preceding sections of this Act 
shall become effective July 1,1953. 
Approved August 8, 1953. 
C o n s t r u c t i o n 
costs. 
Minimum 
ties. 
facUi-
20 u s e 255. 
Effective date. 
Public Law 247 
CHAPTER 401 
AN ACT 
To authorize the Coast Guard to accept, operate, and maintain a certain defense 
housing facility at Cape May, New Jersey. 
August 8,1953 
[H. R. 6354] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assemhled^ That the Coast 
Guard is authorized to accept from the Department of the Navy, 
without reimbursement, the fifty-unit defense housing facility at Cape 
May, New Jersey, and to operate and maintain such facility on a rental 
basis for occupancy by Coast Guard personnel and their dependents 
pursuant to the provisions of the Act of July 2, 1945 (59 Stat. 316; 
37U. S. C. l U a ) . 
SEC. 2. The gross amounts of all rents collected shall be deposited 
in the Treasury to the credit of miscellaneous receipts. The appropri-
ation "Operatmg expenses. Coast Guard" shall be available for the 
cost of operation and maintenance of said housing facility. 
SEC. 3. The administration of. this housing facility by the Coast 
Guard shall be in conformity with the administration of similar 
housing projects by the other Armed Forces. 
Approved August 8, 1953. 
Coast Guard. 
Housing facility. 
Cape May, N. J.