An Act to provide for the extension of Head-start, community action, community economic development, and other programs under the Economic Opportunity Act of 1964, to provide for increased involvement of State and local governments in antipoverty efforts, and for other purposes.
PL 93-644 (H.R.14449), enacted 01/04/1975

88 STAT. ] 
PUBLIC LAW 93-644-JAN. 4, 1975 
2291 
SCHOOL BUS DRIVER TRAINING 
SEC. 126. (a) Chapter 4 of title 23, United States Code, is amended 
by adding at the end thereof the following new section: 
*'§ 406. School bus driver training 
"(a) The Secretary is authorized to make grants to the States for 
the purpose of carrying out State programs approved by him of driver 
education and training for persons driving school buses. 
"(b) A State program under this section shall be approved by the 
Secretary if such program— 
"(1) provides for the establishment and enforcement of qualifi-
cations for persons driving school buses; 
"(2) provides for initial education and training and for 
refresher courses; 
"(3) provides for periodic reports to the Secretary on the 
results of such program; and 
"(4) includes persons driving publicly operated, and persons 
driving privately operated, school buses. 
"(b) Not less than $7,500,000 of the sums authorized to carry out 
section 402 of this title for fiscal year 1976 shall be obligated to carry 
out this section. Such sums shall be apportioned among the States 
in accordance with the formula established under subsection (c) of 
section 402 of this title. The Federal share payable on account of 
any project to carry out a program under this title shall not exceed 
70 per centum of the cost of the project." 
(b) The analysis of chapter 4, title 23, United States Code, is 
amended by adding at the end thereof the following: 
"406. School bus driver training.". 
Approved January 4, 1975. 
23 u s e 401, 
23 u s e 
Grants. 
Reports. 
23 u s e 402. 
Public Law 93-644 
AN ACT 
To provide for the extension of Headstart, community action, community economic 
development, and other programs under the Economic Opportunity Act of 1964, 
to provide for increased involvement of State and local governments in anti-
poverty efforts, and for other purposes. 
January 4, 197 5 
[H.R. 14449] 
Be it enacted hy the Senate and House of Representatwes 
of the 
United States of America in Congress assembled^ That this Act may 
be cited as the "Headstart, Economic Opportunity, and Community 
Partnership Act of 1974". 
STATEMENT OF PURPOSE 
Headstart, Eco-
nomic Opportu-
nity, and Commu-
nity Partnership 
Act of 1974. 
42 u s e 2701 
note. 
SEC. 2. It is the purpose of this Act to extend programs under the 
Economic Opportunity Act of 1964, including Headstart, community 
action, and community economic development programs; and to pro-
vide for increased involvement of State and local governments in anti-
poverty efforts by authorizing a community partnership program. 
42 u s e 2706 
note. 
42 u s e 2701 
note. 
2292 
PUBLIC LAW 93-644-JAN. 4, 1975 
[88 STAT. 
SHORT TITLE AND DEFINITIONS 
SEC. 3. The Economic Opportunity Act of 1964 is amended by add-
ing after section 2 the following new sections: 
"SHORT TITLE 
se?v°^r Ac'i o
f 
"^^^' ^^^- "^^^^ *^^^^ ^^^ *^*^®^ ^^ through I X of this Act may be 
^ervices c o 
(^[IQ^ g
^
g ^j^g 'Commuuity Services Act of 1974'. 
42 use 2701 
note. 
a 
"DEFINITIONS 
42 use 2706. 
ugj,^_ ^^Qg. As uscd in this Act— 
"(1) the term 'State' means a State, the District of Columbia, 
the Commonwealth of Puerto Eico, Guam, American Samoa, the 
Virgin Islands, and the Trust Territory of the Pacific Islands; 
" (2) the term 'United States' when used in a geographical sense 
includes all those places named in the previous sentence and all 
other places continental or insular^ subject to the jurisdiction of 
the United States; 
Post, p. 2292. 
"(3) the term 'financial assistance' when used in title II, part 
42 use 2861. 
]g of title III, and title VIII includes assistance advanced by 
Pr,x,i 
r ^ O ^ O z l 
' 
,
- 
-
1
1
1 
grant, agreement, or contract, but does not include the procure-
ment of plant or equipment, or goods or services; 
"(4) the term 'Secretary' means the Secretary of Health, Edu-
cation, and Welfare; 
" (5) the term 'Administration' means the Community Services 
Administration; and 
" (6) the term 'Director' means the Director of the Community 
Services Administration.". 
RESEARCH AND DEMONSTRATION PROGRAMS 
SEC. 4. Title I of the Economic Opportunity Act of 1964 is amended 
to read as follows: 
Post, p. 
2324. 
42 
use 
2711. 
"TITLE II—RESEARCH AND DEMONSTRATIONS 
"STATEMENT OF PURPOSE 
"SEC. 101. The purpose of the title is to stimulate a better focusing of 
all available local, State, private, and Federal resources upon the 
goal of enabling low-income families, and low-income individuals of 
all ages, including persons of limited English-speaking ability, in 
rural and urban areas to attain the skills, knowledge, and motivations 
and secure the opportunities needed for them to become fully self-
sufficient. 
88 STAT. ] 
PUBLIC LAW 93-644-JAN. 4, 1975 
2293 
"RESEARCH, DEMONSTRATION, AND PILOT PROJECTS 
"SEC. 102. (a) The Director may provide financial assistance 
''^ use 2712. 
through grants or contracts for research, demonstration, or pilot 
projects conducted by public or private agencies which are designed 
to test or assist in the development of new approaches or methods that 
will aid in overcoming special problems or otherwise furthering the 
purposes of this title. 
"(b) The Director shall establish an overall plan to govern the 
approval of research, demonstration, and pilot projects and the use 
of all research authority under this title. Such plan shall set forth 
specific objectives to be achieved and priorities among such objectives. 
In formulating the plan, the Director shall consult with other Federal 
agencies for the purpose of minimizing duplication among similar 
activities or projects and determining whether the findings resulting 
from any such projects may be incorporated into one or more programs 
for which those agencies are responsible. 
"(c) No project shall be commenced under this section unless a plan 
setting forth such proposed project has been submitted to the chief 
executive officer of the State in which the project is to be located and 
such plan has not been disapproved by him within thirty days of such 
submission, or, if so disapproved, has been reconsidered by the 
Director and found by him to be fully consistent with the provisions 
and in furtherance of the purposes of this title. 
"(d) In making grants or contracts under this title, the Director 
shall give due consideration to requests for funds by applicants receiv-
ing financial assistance under this title in any fiscal year shall be made 
available for programs or projects receiving financial assistance under 
section 221 or 235 of this Act. 
42 use 28O8. 
Post, 
p. 2296. 
"CONSULTATION 
"SEC. 103. In carrying out projects under this title, the Director 
'*2 use 2713. 
shall, whenever feasible, arrange to obtain the opinions of program 
participants about the strengths and weaknesses of programs. 
"ANNOUNCEMENT OF RESEARCH, DEMONSTRATION, AND PILOT PROJECTS 
"SEC. 104. (a) The Director shall make a public announcement 
concerning— 
"(1) the title, purpose, intended completion date, identity of 
the grantee or contractor, and proposed cost of any grant or con-
tract with a private or non-Federal public agency or organization 
for any research, demonstration, or pilot project under this title; 
and 
"(2) the results, findings, data, or recommendations made or 
reported as a result of such research, demonstration, or pilot 
project. 
42 u s e 2714, 
2294 
PUBLIC LAW 93-644-JAN. 4, 1975 
[88 STAT. 
studies, submit-
1 to congres-
onal commit-
"(b) The public announcements required by subsection (a) of this 
section shall be made within thirty days of making any such grant 
or contract, and the public announcements required by subsection (b) 
of this section shall be made within thirty days of the receipt of such 
results, findings, data, or recommendations. 
"(c) The Director shall take necessary action to assure that all 
studies, proposals, and data produced or developed with Federal funds 
employed under this title shall become the property of the United 
States, 
"(d) The Director shall publish studies of the results of activities 
carried out pursuant to this title not later than ninety days after 
the completion thereof. The Director shall submit to the appropriate 
committees of the Congress copies of all such studies. 
PROHIBITION OF FEDERAL CONTROL 
42 u s e 2715. 
"SEC. 105. Nothing contained in this title shall be construed to 
authorize any department, agency, officer, or employee of the United 
States to exercise any direction, supervision, or control over the cur-
riculum, program of instruction, administration, or personnel of any 
educational institution or school system." 
COMMUNITY ACTION PROGRAMS 
42 u s e 2790. 
Delegation of 
functions. 
42 u s e 2824. 
Post, 
p. 2296. 
Repeals. 
42 u s e 2809. 
Emergency 
Energy eonserva-
tion Services. 
SEC. 5. (a) Section 210 of the Economic Opportunity Act of 1964 is 
amended— 
(1) in subsection (a) thereof, by inserting "or an Indian tribal 
government," before the word "which" the second place it appears 
therein; and 
(2) by repealing subsection (f) thereof. 
(b) Section 210 of such Act is further amended by adding at the 
end thereof the following new subsection 
"(f) In carrying out his responsibilities under this part the Director 
may delegate functions other than policymaking functions and the 
final approval of grants and contracts to a State, in accordance with 
criteria and guidelines established by him, such functions as he deems 
appropriate, except that no such delegation shall take place unless all 
the community action agencies within such State formally indicate 
their approval of such proposed delegation, except that whenever such 
delegated functions include the authority to approve programs within 
such State the Director shall make available to the State, in addition 
to an amount not less than the amount made available to such State 
for State agency assistance under section 231 in the previous fiscal 
3'ear, an amount in each fiscal year equal to such State's shai-e (as 
determined by the formula set forth in the second sentence of section 
235(a)) of the aggregate amount made available during the fiscal 
year ending June 30, 1974, for the operation of regional offices of the 
Office of Economic Opportunity.". 
(c)(1) Paragraph (1) of section 222(a) of such Act is repealed. 
(2) Paragraph (2) of section 222(a) of such Act is repealed. 
(3) Paragraph (6) of section 222(a) of such Act is repealed. 
(4) Paragraph (8) of section 222(a) of such Act is repealed. 
(5) Paragraph (9) of section 222(a) of such xlct is repealed. 
(d)(1) Section 222(a) of the Economic Opportunity Act of 1964 
is amended by inserting after paragraph (11) the following: 
"(12) a program to be know^n as 'Emergency Energy Conservation 
Services' designed to enable low-income individuals and families. 
88 STAT. ] 
PUBLIC LAW 93-644-JAN. 4, 1975 
2295 
including the elderly and the near poor, to participate in energy 
conservation programs designed to lessen the impact of the high cost 
of energy on such individuals and families and 'to reduce individual 
and family energy consumption. The Director is authorized to provide 
financial and other assistance for programs and activities, including, 
but not limited to, an energy conservation and education program; 
winterization of old or substandard dwellings, improved space condi-
tioning, and insulation; emergency loans, grants, and revolving funds 
to install energy conservation technologies and to deal with increased 
housing expenses relating to the energy crisis; alternative fuel supplies, 
special fuel voucher or stamp programs; alternative transportation 
activities designed to save fuel and assure continued access to training, 
education, and employment; appropriate outreach efforts; furnishing 
personnel to act as coordinators, providing legal or technical assistance, 
or otherwise representing the interests of the poor in efforts relating 
to the energy crisis; nutrition, health, and other supportive services 
in emergency cases; and evaluation of programs and activities under 
this paragraph. Such assistance may be provided as a supplement to 
any other assistance extended under the provisions of this Act or under 
other provisions of Federal law. The Director, after consultation with 
the Administrator of the Federal Energy Office and appropriate 
Federal departments and agencies shall establish procedures and take 
other appropriate action necessary to insure that the effects of the 
energy crisis on low-income persons, the elderly, and the near poor 
are taken into account in the formulation and administration of 
programs relating to the energy crisis. 
"(13) A program to be known as 'Summer Youth Recreation' 
designed to provide recreational opportunities for low-income children 
during the summer months. Funds made available for this section 
shall be allocated by the Director, after consultation with the Secretary 
of Labor, among prime sponsors and other agencies designated under 
title I of the Comprehensive Employment and Training Ac^ of 1973 
^9 use sii. 
on the basis of (1) the relative number of public assistance recipients 
in the area served by such prime sponsor or agency, as compared to 
the Nation; (2) the relative number of unemployed persons in such 
area as compared with the Nation; and (3) the relative number of 
related children living with families with incomes below the poverty 
line in such area, as compared to the Nation. That part of any allot-
ment which the Director determines will not be needed may be real-
lotted, at such dates during the fiscal year as the Director may fix, to 
the extent feasible, in proportion to the original allotments. In making 
allocations under this section, the Director shall insure, to the maxi-
mum extent possible, that for the program commencing in the fiscal 
year ending June 30, 1975, and for the program in each succeeding 
fiscal year no prime sponsor or other designated agency shall receive 
an amount less than the amount received for such programs during 
the fiscal year ending June 30,1973, or the fiscal year ending June 30, 
1974, whichever is higher. 
(2) Section 226(d) and section 228(c) are each amended by strik- jsls"^*^ ^^^^' 
ing out "shall make whatever arrangements are necessary" and 
inserting in lieu thereof "is authorized to make whatever arrangements 
are necessary". 
(e) (1) Section 225(a) of the Economic Opportunity Act of 1964 
^2 use 2812. 
is amended by striking out the third sentence thereof and inserting 
in lieu thereof the following: "The remainder shall be allotted among 
the States, in accordance with the latest available data, so that equal 
Summer Youth 
Recreation. 
2296 
PUBLIC LAW 93^44-JAN. 4, 1975 
[88 STAT. 
proportions are distributed on the basis of (1) the relative number 
of public assistance recipients in each State as compared to all States, 
(2) the relative number of unemployed persons in each State as com-
pared to all States, and (3) the relative number of related children 
living with families with incomes below the poverty line in each State 
as compared to all States. For purposes of this subsection, the Director 
shall utilize the criteria of poverty used by the Bureau of the Census 
in compiling the 1970 decennial census. The Director shall insure that 
for the fiscal year ending June 30, 1975, and for each succeeding fis-
42 use 2808. 
QQ\ year, no State shall be allotted for programs under section 221 and 
Ante, p. 2294. 
sectiou 222(a) an amount which is less than the amount received for 
use within such State for programs described in such sections during 
the fiscal year ending June 30,1974.". 
42 use 2812. 
^2) Section 225(c) of such Act is amended by striking out "shall 
not exceed 90 per centum of the approved cost of the assisted pro-
grams or activities and thereafter shall not exceed 80 per centum of 
such costs" and inserting in lieu thereof the following: "shall not 
exceed 80 per centum of the approved cost of the assisted programs or 
activities with respect to fiscal year 1975, and 70 per centum of such 
costs with respect to fiscal year 1976, and shall not exceed 60 per centum 
of such costs with respect to fiscal year 1977, except that in the case 
of community action agencies receiving such financial assistance 
annually of $300,000 or less, such financial assistance shall not exceed 
75 per centum of such costs with respect to fiscal year 1976, and shall 
not exceed 70 per centum of such costs with respect to fiscal year 1977". 
(f) The Economic Opportunity Act of 1964 is further amended 
by inserting after section 234 thereof the following new sections: 
"DEMONSTRATION COMMUNITY PARTNERSHIP AGREEMENTS 
42 use 2828. 
"SEC. 235. (a) The Director may provide financial assistance from 
funds appropriated to carry out this section to community action 
agencies or public or private nonprofit agencies designated under 
42 use 2790. 
section 210 for programs authorized under this title, and to State 
economic opportunity offices for programs and activities authorized 
42 use 2824. 
under section 231(a). Financial assistance extended to a community 
action agency or other agency pursuant to this section may be used 
for new programs or to supplement existing programs and shall not 
exceed 50 per centum of the cost of such new or supplemental 
})rograms. 
"(b) Matching local and State funds supplied under this section 
shall be in cash and shall represent State and local initiatives newly 
obligated within the previous year to the purposes of the grant-
supported activity; and no program shall be approved for assistance 
under this section unless the Director satisfies himself (1) that the 
activities to be carried out under such program will be in addition 
to. and not in substitution for. activities previously carried on with-
out Federal assistance, (2) that funds or other resources devoted 
to programs designed to meet the needs of the poor within the com-
munity, area, or State will not be diminished in order to provide the 
contributions required under this section. The requirement imposed by 
the preceding sentence shall be subject to such regulations as the 
Secretary may adopt and promulgate establishing objective criteria 
for determinations covering situations where a strict application of 
that requirement would result in unnecessary hardship or otherwise 
be inconsistent with the purposes sought to be achieved. 
88 STAT. ] 
PUBLIC LAW 93-644-JAN. 4, 1975 
2297 
"(c) The provisions of section 242 of this Act shall not apply to 
^^ "^^ 2834. 
assistance provided under this section. 
"INTERGOVERNMENTAL ADVISORY COUNCIL ON COMMUNITY SERVICES 
"SEC. 236. (a) There shall be established within the Office of Eco- 
Jj^ usc^28T9"'* 
nomic Opportunity or successor authority an Intergovernmental 
Advisory Council on Community Services (referred to in this section 
as the 'Council'). 
"(b) The Council shall be composed of nine members who shall be 
Membership. 
appointed by the President as follows: 
"(i) Three members shall be appointed from among represent-
atives of States and county and municipal governments or orga-
nizations which represent such governmental units, selected on 
an equitable political and geographic basis after considering rec-
ommendations made by the National Governors' Conference, the 
National League of Cities-United States Conference of Mayors, 
the National Association of Counties and similar organizations 
representative of State and local government. 
" (ii) Three members shall be appointed from among represent-
atives of community action agencies and other grantees under 
this Act or organizations which represent such agencies and 
grantees, selected on an equitable political and greographic basis 
after considering recommendations previously made by the 
Director of the Office of Economic Opportunity. 
"(iii) Three members shall be appointed from among repre-
sentatives of labor, management, and other sectors which have 
demonstrated active interest in community action and antipoverty 
programs. 
" (c) The Council shall—• 
"(1) encourage the formation of community partnership agree-
ments ; 
"(2) review the substance of such agreements and any regula-
tions, guidelines, or other program criteria with respect thereto 
and advise the Director thereon prior to final approval thereof ; 
"(3) evaluate the effectiveness of such agreements in meeting 
the purposes of this Act; 
"(4) conduct a continuing survey throughout the Nation on 
the extent to which, and terms under which, public and private 
resources have been and may be available for antipoverty efforts; 
"(5) identify and encourage means of increasing resources 
available for such activities; and 
"(6) submit annual reports to the President and to the Con- presid°eTt Ind 
gress on or before March 1,1976, and March 1, 1977, with respect congre's".^" 
to its activities and findings, together with such recommendations 
for legislation as it may deem appropriate. 
"(d) The Director shall provide the Council with such information 
as shall be necessary for the Council to discharge its functions under 
this section and shall furnish the Council with copies of all grant 
applications within ten days of receipt thereof. 
(( 
FUNDS AVAILABLE 
"SEC. 237. There is also authorized to be appropriated not to exceed 
"
^
^ ^^^ 2^^°* 
$50,000,000 to carry out section 235 during the fiscal year 1975, and 
^"'^' p- 2296, 
such sums as may be necessary during each of the two succeeding fiscal 
years, except that in no event may more than 1 2 ^ per centum of such 
additional amounts be used in any one State." 
2298 
PUBLIC LAW 93-644-JAN. 4, 1975 
[88 STAT. 
ASSISTANCE TOK MIGRANT AND OTHER SEASONALLY EMPLOYED 
FARMWORKERS AND THEIR FAMILIES 
SEC. 6. (a) Section 312(b) (3) of the Economic Opportunity Act of 
42 use 2862. 
1964 is amended by striking out "and training" and inserting in lieu 
thereof "and developmental programs". 
(b) The Economic Opportunity Act of 1964 is further amended by 
inserting after section 314 thereof the following new section: 
'SPECIAL RESPONSIBILITIES 
42 u s e 2f 
42 u s e 2865 
note 
29 u s e 873. 
"SEC. 315. The Director shall be responsible for coordinating pro-
grams under this part with other Federal programs designed to assist 
or serve migrant and seasonal farmworkers, and for reviewing and 
monitoring such programs." 
(c) In providing financial assistance under the provisions of part 
42 use 2861. 
B of title I I I of the Economic Opportunity Act of 1964, the Director 
shall give special consideration to any public or private nonprofit 
agency which has previously received financial assistance thereunder 
for the provision of services for migrant and other seasonally 
employed farmworkers and their families, taking into account financial 
assistance provided to any such agency under section 303 of the Com-
prehensive Employment and Training Act of 1973. 
COMPREHENSIVE H E A L T H SERVICES 
SEC. 7. Title IV of the Economic Opportunity Act of 1964 is 
amended to read as follows: 
"TITLE IV—COMPEEHENSIVE HEALTH SEKVICES 
"COMPREHENSIVE 
HEALTH 
SERVICES 
42^usc^2Xr'' 
"SEC. 401. (a) The Secretary shall establish within the Department 
of Health, Education, and Welfare a 'Comprehensive Health Services' 
program which shall include— 
"(1) programs to aid in developing and carrying out compre-
hensive health services projects focused upon the needs of urban 
and rural areas having high concentrations or proportions of 
poverty and marked inadequacy of health services for the poor. 
These projects shall be designed— 
"(A) to make possible, with maximum feasible use of 
existing agencies and resources, the provision of comprehen-
sive health services, such as preventive medical, diagnostic, 
treatment, rehabilitation, family planning, narcotic addic-
tion and alcoholism prevention and rehabilitation, mental 
health, dental, and followup services, together with necessary 
related facilities and services, except in rural areas where the 
lack of even elemental health services and personnel may 
require simpler, less comprehensive services to be established 
first; and 
"(B) to assure that these services are made readily acces-
sible to low-income residents of such areas, are furnished in 
a manner most responsive to their needs and with their par-
ticipation and wherever possible are combined with, or 
included within, arrangements for providing employment, 
education, social, or other assistance needed by the families 
and individuals served except that pursuant to such regula-
88 STAT. ] 
PUBLIC LAW 93-644-JAN. 4, 1975 
2299 
tions as the Secretary of Health, Education, and Welfare 
may prescribe, persons provided assistance through pro-
grams assisted under this paragraph who are not members 
of low-income families may be required to make payment, 
or have payment made in their behalf, in whole or in part 
for such assistance; and 
"(2) programs to provide financial assistance to public or pri-
vate agencies to projects designed to develop knowledge or 
enhance skills in the field of health services for the poor. Such 
projects shall encourage both prospective and practicing health 
professionals to direct their talents and energies toward provid-
ing health services for the poor. 
Funds for financial assistance under paragraph (1) of this subsection 
shall be allotted according to need, and capacity of applicants to make 
rapid and effective use of that assistance, and may be used as neces-
sary, to pay the full costs of projects. Before approving any project, 
the Secretary shall solicit and consider the comments and recom-
mendations of tlie local medical associations in the area and shall con-
sult with appropriate Federal, State, and local health agencies and 
take such steps as may be i-equired to assure that the program will be 
carried on under competent professional supervision and that exist-
ing agencies providing related services are furnished all assistance 
needed to permit them to plan for participation in the program and 
for the necessary continuation of those related services. In carrying 
out the provisions of paragraph 2 of this subsection, the Secretary 
is authorized to provide or arrange for training and study in the field 
of health services for the poor. 
"(c) Pursuant to regulations prescribed by him, the Secretary may 
arrange for the payment of stipends and allowances (including travel 
and subsistence expenses) for pereons undergoing such training and 
study and for their dependents. 
"(d) The Secretary shall achieve effective coordination of programs 
and projects authorized under this section with other related activities. 
,, . , 
DRUG REHABILITATION 
AND ALCOHOLIC COUNSELING 
PROGRAMS 
"SEC. 402. In addition to the authority conferred under section 401 of 
this title the Secretary is authorized, as part of the Comprehensive 
Health Services program, to carry out the following programs: 
"(1) An 'Alcoholic Counseling and Recovery' program designed 
to discover and treat the disease of alcoholism. Such program should 
be community based, serve the objective of the maintenance of the fam-
ily structure as well as the recovery of the individual alcoholic, 
encourage the use of neighborhood facilities and the services of recov-
ered alcoholics as counselors, and emphasize the reentry of the alcoholic 
into society rather than the institutionalization of the alcoholic. 
"(2) A 'Drug Rehabilitation' program designed to discover the 
causes of drug abuse and addiction, to treat narcotic and drug addic-
tion and the dependence associated with di-ug abuse, and to rehabili-
tate the drug abuser and drug addict. Such program should deal with 
the abuse or addiction resulting from the use of narcotic drugs such as 
heroin, opium, and cocaine, stimulants such as amphetamines, depres-
sants, marihuana, hallucinogens, and tranquilizers. Such program 
sliould be community based, serve the objective of the maintenance of 
the family structure as Avell as the recovery of the individual drug 
abuser or addict, encourage the use of neighborhood facilities and the 
services of recovered drug abusers and addicts as counselors, and 
emphasize the reentry of the drug abuser and addict into society rather 
42 u s e 2902 
2300 
PUBLIC LAW 93-644-JAN. 4, 1975 
[88 STAT. 
than his institutionalization. The Director is authorized to undertake 
special programs aimed at promoting employment opportunities for 
rehabilitated addicts or addicts enrolled and participating in metha-
done maintenance treatment or therapeutic programs, and assisting 
employers in dealing with addiction and drug abuse and dependency 
problems among foi'merly hardcore unemployed so that they can be 
maintained in employment. In undertaking such programs, the Direc-
tor shall give special priority to veterans and employers of significant 
numbers of veterans, with priority to those areas within the States 
having the highest percentages of addicts. The Director is further 
authorized to establish procedures and policies which will allow clients 
to complete a full course of rehabilitation even though they become 
non-low-income by virtue of becoming employed as a part of the reha-
bilitation process but there shall be no change in income eligibility 
criteria for initial admission to treatment and rehabilitation programs 
under this Act." 
HEADSTAKT AND FOLLOW 
THROUGH 
SEC. 8. (a) Title V of the Economic Opportunity Act of 1964 is 
amended by striking out the heading thereof and all of such title pre-
ceding part B thereof (which is hereby redesignated as part D) and 
inserting in lieu thei'eof the following: 
Headstart- 
"TITLE V—HEADSTART AND FOLLOW THROUGH 
Follow Through 
Act. 
SHORT 
TITLE 
42 use 2921. 
"SEC. 501. This title may be cited as the "Headstart-Follow 
Through Act" (hereinafter in this title referred to as the "Act"), 
"STATEMENT OF PURPOSE 
42 use 2 922. 
"SEC. 502. In recognition of the role which Project Headstart has 
played in the effective delivery of comprehensive health, educational, 
nutritional, social, and other services to economically disadvantaged 
children and their families, the Act extends the authority for appro-
priation of funds for that program. 
" P O L I C Y 
W I T H 
R E S P E C T 
T O INDIAN AND MIGRANT ('HILDREN 
42 use 2923. 
"SEC. 503. In carrying out the purposes of part A the Secretary shall 
continue the administrative ari'angement responsible for meeting the 
needs of migrant and Indian children and shall assure that appropriate 
funding is provided to meet such needs. 
"PART A—HEADSTART PROGRAMS 
" F I N A N ( lAL 
A S S I S T A N C E FOR HEADSTART 
PROGRAMS 
42 use 2928. 
"SEC. 511. The Secretary may, upon application by an agency which 
is eligible for designation as a Headstart agency pursuant to section 
514, provide financial assistance to such agency for the planning, con-
duct, administration, and evaluation of a Headstart program focused 
primarily upon children from low-income families who have not 
reached the age of compulsory school attendance which (1) will pro-
vide such comprehensive health, nutritional, educational, social, and 
other services as will aid the children to attain their full potential, and 
(2) will provide for direct participation of the parents of such chil-
dren in the development, conduct, and overall program direction at 
the local level. 
88 STAT. ] 
PUBLIC LAW 93-644-JAN. 4, 1975 
2301 
AUTHORIZATION OF APPROPRIATIONS 
"SEC. 512. There are authorized to be appropriated for carrying out 
'•^ use 2928a. 
the purposes of this part such sums as may be necessary for fiscal years 
1975 through 1977. 
"ALLOTMENT OF FUNDS; LIMITATIONS ON ASSISTANCE 
"SEC. 513. (a) Of the sums appropriated pursuant to section 512 '
*
2 use 2928b. 
for any fiscal year beginning after June 30, 1975, the Secretary shall 
allot not more than 2 per centum among Guam, American Samoa, the 
Trust Territory of the Pacific Islands, and the Virgin Islands, accord-
ing to their respective needs. In addition, the Secretary shall reserve 
not more than 20 per centum of the sums so appropriated for use in 
accordance with such criteria and procedures as he may prescribe. The 
remainder shall be allotted among the States, in accordance with the 
latest satisfactory available data, so that equal proportions are distrib-
uted on the basis of (1) the relative number of public assistance recip-
ients in each State as compared to all States, and (2) the relative 
number of related children living with families with incomes below the 
, , 
poverty line in each State as compared to all States; but there shall be 
made available, for use by Headstart programs within each State, no 
less funds for any fiscal year than were obligated for use by Headstart 
programs within such State with respect to fiscal year 1975. Allocation 
of such increases within each State shall, to the extent feasible, be made 
in such manner as to reflect the proportionate increases in program 
costs incurred by grantees, in accordance with regulations which the 
Secretary shall prescribe for this purpose. For the purpose of this sub-
section, the Secretary shall utilize the criteria of poverty used by the 
Bureau of the Census in compiling the 1970 decennial census. 
- -
' ' 
"(b) Financial assistance extended under this part for a Headstart 
program shall not exceed 80 per centum of the approved costs of the 
assisted program or activities, except that the Secretary may approve 
assistance in excess of such percentage if he determines, in accord-
ance with regulations establishing objective criteria, that such action 
is required in furtherance of the purposes of this part. Non-Federal 
contributions may be in cash or in kind, fairly evaluated, including but 
not limited to plant, equipment, or services. The Secretary shall not 
require non-Federal contributions in excess of 20 per centum of the 
approved costs of programs or activities assisted under this part. 
"(c) No programs shall be approved for assistance under this part 
unless the Secretary is satisfied that the services to be provided under 
such program will be in addition to, and not in substitution for, com-
parable services previously provided without Federal assistance. The 
requirement imposed by the preceding sentence shall be subject to such 
regulations as the Secretary may prescribe. 
"(d) The Secretary shall establish policies and procedures designed ^ud^en''''^^^'^ 
to assure that for fiscal year 1975 not less than 10 per centum of the 
total number of enrollment opportunities in Headstart programs in 
the Nation shall be available for handicapped children and that for 
fiscal year 1976 and thereafter no less than 10 per centum of the total 
number of enrollment opportunities in Headstart programs in each 
State shall be available for handicapped children (as defined in para-
graph (1) of section 602 of the Education of the Handicapped Act) 
20 use 1401 „ 
and that services shall be provided to meet their special needs. The Sec- 
Report to eon-
retary shall report to the Congress at least annually on the status of ^'^^^^* 
handicapped children in Headstart programs, including the number of 
children being served, their handicapping conditions, and the services 
being providM such children. 
2302 
PUBLIC LAW 93-644-JAN. 4, 1975 
[88 STAT. 
"(e) The Secretary shall adopt appropriate administrative meas-
ures to assure that the benefits of this part will be distributed equitably 
between residents of rural and urban areas. 
'DESIGNATION OF HEADSTART AGENCIES 
42 u s e 2928c. 
"SEC. 514. (a) The Secretary is authorized to designate as a Head-
start agency any local public or private nonprofit agency which (1) 
has the power and authority to carry out the purposes of this part and 
perform the functions set forth in section 515 within a community, and 
(2) is determined by tho Secretary to be capable of planning, con-
ducting, administering, and evaluating, either directly or by other 
arrangements, a Headstart program. 
"(b) For the purposes of this title, a community may be a city, 
county, multicity, or multicounty unit within a State, an Indian reser-
vation, or a neighborhood or other area (irrespective of boundaries 
or political subdivisions) which provides a suitable organization base 
and possesses the commonality of interest needed to operate a Head-
start program. 
Priority. 
ii ^^^ jj^ ^^iQ admiuistratiou of the provisions of this section, the 
Secretary shall give priority in the designation of Headstart agencies 
to any local public or private nonprofit agency which is receiving 
funds under any Headstart program on the date of the enactment of 
this Act, except that the Secretary shall, before giving such priority, 
determine that the agency involved meets program and fiscal require-
ments established by the Secretary. 
ii 
42 u s e 2928d. 
42 u s e 2928e. 
POWERS AND FUNCTIONS OF HEADSTART AGENCIES 
"SEC. 515. (a) In order to be designated as a Headstart agency 
under this part, an agency must have authority under its charter or 
applicable law to receive and administer funds under this part, funds 
and contributions from private or local public sources which may be 
used in support of a Headstart program, and funds under any Fed-
eral or State assistance program pursuant to which a public or private 
nonprofit agency (as the case may be) organized in accordance with 
this part, could act as grantee, contractor, or sponsor of projects appro-
priate for inclusion in a Headstart program. Such an agency must 
also be empowered to transfer funds so received, and to delegate 
powers to other agencies, subject to the powers of its governing board 
and its overall program lesponsibilities. This power to transfer funds 
and delegate powers must include the power to make transfers and 
delegations covering comDonent projects in all cases where this will 
contribute to efficiency and effectiveness or otherwise further program 
objectives. 
"(b) In order to be so designated, a Headstart agency must also 
(1) establish effective procedures by which parents and area residents 
concerned will be enabled to influence the character of programs affect-
ing their interests, (2) provide for their regular participation in the 
implementation of such programs, and (3) provide technical and 
other support needed to enable parents and area residents to secure 
on their own behalf available assistance from public and private 
sources. 
"SUBMISSION OF PLANS TO GOVERNORS 
"SEC. 516. In carrying out the provisions of this part, no contract, 
agreement, grant, or other assistance shall be made for the purpose 
of carrying out a Headstart program within a State unless a plan 
to information. 
88 STAT. ] 
PUBLIC LAW 93-644-JAN. 4, 1975 
2303 
setting forth such proposed contract, agreement, grant, or other 
assistance has been submitted to the Governor of the State, and such 
plan has not been disapproved by the Governor within thirty days 
of such submission, or, if so disapproved, has been reconsidered by 
the Secretary and found by him to be fully consistent with the pro-
visions and in furtherance of the purposes of this part. Funds to 
cover the costs of the proposed contract, agreement, grant, or other 
assistance shall be obligated from the appropriation which is current 
at the time the plan is submitted to the Governor. This section shall 
not, however, apply to contracts, agreements, grants, loans, or other 
assistance to any institution of higher education in existence on the 
date of enactment of this Act. 
"ADMINISTRATIVE REQUIREMENTS AND STANDARDS 
"SEC. 517. (a) Each Headstart agency shall observe standards of 
"
^
^ use 2928f. 
organization, management, and administration which will assure, 
so far as reasonably possible, that all program activities are conducted 
in a manner consistent with the purposes of this part and the objective 
of providing assistance effectively, efficiently, and free of any taint 
of partisan political bias or personal or family favoritism. Each such 
, 
agency shall establish or adopt rules to carry out this section, which 
shall include rules to assure full staff accountability in matters 
governed by law, regulations, or agency policy. Each agency shall ^ PubUc ace; 
also provide for reasonable public access to information, including " 
"'" 
but not limited to public hearings at the request of appropriate 
community groups and reasonable public access to books and 
records of the agency or other agencies engaged in program activities 
or operations involving the use of authority or funds for which it 
is responsible. Each such agency shall adopt for itself and other 
agencies using funds or exercising authority for which it is respon-
sible, rules designed to establish specific standards 
governing 
salaries, salary increases, travel and per diem allowances, and other 
employee benefits; to assure that only persons capable of discharging 
their duties with competence and integrity are employed and that 
employees are promoted or advanced under impartial procedures 
calculated to improve agency performance and effectiveness; to guard 
against personal or financial conflicts of interests; and to define 
employee duties in an appropriate manner which will in any case 
preclude employees from participating, in connection with the 
performance of their duties, in any form of picketing, protest, or other 
direct action which is in violation of law. 
"(b) No financial assistance shall be extended under the Act in any 
case in which the Secretary determines that the costs of developing 
and administering a program assisted under the Act exceed 15 per 
centum of the total cosfs, including non-Federal contributions to such 
costs, of such program. The Secretary shall establish by regulation, 
criteria for determining (i) the costs of developing and administering 
such program and (ii) the total costs of such program. In any case 
in which the Secretary determines that the cost of administering such 
program does not exceed 15 per centum and such total costs but is, in 
his judgment, excessive, he shall forthwith require the recipient of such 
financial assistance to take such steps prescribed by him as will elim-
inate such excessive administrative cost, including the sharing by one 
or more Headstart agencies of a common director and other adminis-
trative personnel. The Secretary may waive the limitation prescribed 
by this paragraph for specific periods of time not to exceed six months 
Rules and reg-
ulations. 
2304 
PUBLIC LAW 93-644-JAN. 4, 1975 
[88 STAT. 
whenever he determines that such a waiver is necessary in order to 
carry out the purposes of the Act. 
"(c) The Secretary shall prescribe rules or regulations to supple-
ment subsection (a) of this section, which shall be binding on all agen-
cies carrying on Headstart program activities with financial assistance 
under this part. He may, where appropriate, establish special or 
simplified requirements for smaller agencies or agencies operating 
in rural areas. Policies and procedures shall be established to insure 
that indirect costs attributable to the common or joint use of facilities 
and services by programs assisted under this part and other programs 
shall be fairly allocated among the various programs which utilize 
such facilities and services. 
• Jde'^a\''Re'°rste 
"^^^ ^^ l^sist thirty days prior to their effective date, all rules, 
egis er. j-^g^j^^^Qj^g^ guideliues, instructions, and application forms shall be 
published in the Federal Register and shall be sent to each grantee 
with the notification that each such grantee has the right to submit 
comments pertaining thereto to the Secretary prior to the final adop-
tion thereof. 
"PARTICIPATION IN HEADSTART PROGRAMS 
42 use 2 9
2 8g. 
"SEC. 518. (a) The Secretary shall by regulation prescribe eligi-
bility for the participation of persons in Headstart programs assisted 
under this part. Such criteria may provide (1) that children from 
low-income families shall be eligible for participation in programs 
assisted under this part if their families are below the poverty line, or 
if their families are eligible or in the absence of child care would 
potentially be eligible for public assistance; and (2) pursuant to such 
regulations as the Secretary shall prescribe that programs assisted 
under this part may include, to a reasonable extent, participation 
of children in the area served who would benefit from such programs 
but whose families do not meet the low-income criteria prescribed 
pursuant to clause (1). 
"(b) The Secretary shall not prescribe any fee schedule or other-
wise provide for the charging of any fees for participation in Head-
start programs, unless such fees are authorized by legislation hereafter 
enacted. Nothing in this subsection shall be construed to prevent the 
families of children who participate in Headstart programs and who. 
are willing and able to pay the full cost of such participation from 
doing so. 
"APPEALS, NOTICE, AND HEARING 
42 use 2 928h. 
"SEC. 519. The Secretary shall prescribe procedures to assure that— 
"(1) special notice of and an opportunity for a timely and 
expeditious appeal to the Secretary will be provided for an 
agency or organization which desires to serve as a delegate agency 
under this part and whose application to the Headstart agency 
has been wholly or substantially rejected or has not been acted 
upon within a period of time deemed reasonable by the Secretary, 
in accordance with regulations which he shall prescribe; 
"(2) financial assistance under this part shall not be suspended, 
except in emergency situations, unless the recipient agency has 
been given reasonable notice and opportunity to show cause why 
such action should not be taken; and 
"(3) financial assistance under this part shall not be termi-
nated, an application for refunding shall not be denied, and a 
suspension of financial assistance shall not be continued for longer 
than thirty days, unless the recipient has been afforded reasonable 
notice and opportunity for a full and fair hearing. 
88 STAT. ] 
PUBLIC LAW 93-644-JAN. 4, 1975 
2305 
'RECOT^DS AND AUDITS 
( ' T 
"SEC. 520. (a) Each recipient of financial assistance under this part 
'
*
2 use 2928i. 
shall keep such records as the Secretary shall prescribe, including 
records which fully disclose the amount and disposition by such 
recipient of the proceeds of such financial assistance, the total cost of 
the project or undertaking in connection with which such financial 
assistance is given or used, the amount of that portion of the cost of 
the project or undertaking supplied by other sources, and such other 
records as will facilitate an effective audit. 
"(b) The Secretary and the Comptroller General of the United 
States, or any of their duly authorized representatives, shall have 
access for the purpose of audit and examination to any books, docu-
ments, papers, and records of the recipients that are pertinent to the 
financial assistance received under this part. 
"TECHNICAL ASSISTANCE AND TRAINING 
"SEC. 521. The Secretary may provide, directly or through grants or 
'^^ "^*^ 292 sj. 
other arrangements, (1) technical assistance to communities in 
developing, conducting, and administering programs under this part, 
and (2) training for specialized or other personnel needed in connec-
tion with Headstart programs. 
42 u s e 292Bk. 
RESEARCH, DEMONSTRATION, AND PILOT PROJECTS 
"SEC. 522. (a) The Secretary may provide financial assistance 
through grants or contracts for research, demonstration, or pilot proj-
ects conducted by public or private agencies which are designed to 
test or assist in the development of new approaches or methods that 
will aid in overcoming special problems or otherwise in furthering the 
purposes of this part. 
"(b) The Secretary shall establish an overall plan to govern the 
approval of research, demonstration, or pilot projects and the use of 
all research authority under this part. Such plan shall set forth specific 
objectives to be achieved and priorities among such objectives. 
"ANNOUNCEMENT or RESEARCH, DEMONSTRATION, AND PILOT PROJECTS 
CONTRACTS 
"SEC. 523. (a) The Secretary shall make a public announcement 
'*2 use 2923/. 
concerning— 
" (1) the title, purpose, intended completion date, identity of the 
grantee or contractor, and proposed cost of any grant or contract 
with a private or non-Federal public agency or organization for 
any research, demonstration, or pilot project under this title; and 
"(2) the results, findings, data, or recommendations made or 
reported as a result of such activities. 
"(b) The public announcements required by subsection (a) of this 
section shall be made within thirty days of making such grants or 
contracts, and the public announcements required by subsection (b) 
of this section shall be made within thirty days of the receipt of such 
results. 
"(c) The Director shall take necessary action to assure that all 
studies, proposals, and data produced or developed with Federal funds 
employed under this title shall become the property of the United 
States. 
"(d) The Director shall publish studies of the results of activities 
carried out pursuant to this title not later than ninety days after the 
2306 
PUBLIC LAW 93-644-JAN. 4, 1975 
[88 STAT. 
Studies, submit- Completion thereof. The Director shall submit to the appropriate 
ta to congres- 
committees of the Congress copies of all such studies. 
;ongre 
sional commit 
42 u s e 2928m. 
Studies 
summarie 
mittal to 
sional co 
tees 
and 
s, sub-
congres-
mmit-
42 u s e 2928n. 
Post, 
p. 2316. 
42 u s e 2929. 
''EVALUATION 
''SEC. 524. (a) The Secretaiy shall provide, directly or through 
grants or contracts, for the continuing evaluation of programs under 
this part, including evaluations that measure and evaluate the impact 
of programs authorized by this part, in order to determine their effec-
tiveness in achieving stated goals, their impact on related programs, 
and their structure and mechanisms for delivery of services, including, 
where appropriate, comparisons with appropriate control groups 
composed of persons who have not pai'ticipated in such programs. 
Evaluations shall be conducted by persojis not directly involved in the 
administration of the program or project evaluation. 
"(b) Prior to obligating funds for the programs and projects cov-
ered by this part with respect to fiscal ^ear 1976, the Secretary shall 
develop and publish general standards tor evaluation of program and 
project effectiveness in achieving the objectives of this part. The extent 
to which such standards have been met shall be considered in deciding 
whether to renew or supplement financial assistance authorized under 
this part. 
"(c) In carrying out evaluations under this part, the Secretary may 
require Headstart agencies to provide for independent evaluations. 
"(d) In carrying out evaluations under this part, the Secretary 
shall, whenever feasible, arrange to obtain the specific views of persons 
participating in and served by programs and projects assisted under 
this part about such programs and projects. 
" (e) The Secretary shall publish the results of evaluative research 
and summaries of evaluations of program and project impact and 
effectiveness not later than ninety days after the completion thereof. 
The Secretary shall submit to the appropriate committees of the Con-
gress copies of all such research studies and evaluation summaries. 
"(f) The Secretary shall take the necessary action to assure that all 
studies, evaluations, proposals, and data produced or developed with 
assistance under this part shall become the property of the United 
States. 
''POVERTY LINE 
"SEC. 525. (a) The Secretary shall revise annually (or at any shorter 
interval he deems feasible and desirable) a poverty line which, except 
as provided in section 711, shall be used as a criterion of eligibility for 
participation in Headstart programs. 
"(b) The revision required by subsection (a) of this section shall 
be accomplished by multiplying the official poverty line (as defined 
by the Office of Management and Budget) by the percentage change in 
the Consumer Price Index during the annual or other interval imme-
diately preceding the time at which the revision is made. 
"(c) Revisions required by subsection (a) of this section shall be 
made and issued not more than thirty days after the date on which 
the necessary Consumer Price Index data becomes available. 
"PART B—FOLLOW THROUGH PROGRAMS 
"FINANCIAL ASSISTANCE FOR FOLLOW THROUGH PROGRAMS 
"SEC. 551. (a)(1) The Secretary is authorized to provide financial 
assistance in the form of grants to local educational agencies, combina-
tions of such agencies, and, as provided in paragraph (2) of this 
88 STAT. ] 
PUBLIC LAW 93-644-JAN. 4, 1975 
2307 
subsection, any other public or appropriate nonprofit private agencies, 
organizations, and institutions for the purpose of carrying out Follow 
Through programs focused primarily on children from low-income 
families in kindergarten and primary grades, including such children 
enrolled in private nonprofit elementary schools, who were previously 
enrolled in Headstart or similar programs. 
"(2) Whenever the Secretary determines (A) that a local educa-
tional agency receiving assistance under paragraph (1) is unable or 
unwilling to include in a Follow Through program children enrolled 
in nonprofit private schools who would otherwise be eligible to par-
ticipate therein, or (B) that it is otherwise necessary in order to 
accomplish the purposes of this section, he may provide financial assist-
ance for the purpose of carrying out a Follow Through program to 
any other public or appropriate nonprofit private agency, organization, 
or institution. 
"(3) Programs to be assisted under this section shall provide such 
comprehensive services as the Secretary determines will aid in the 
continued development of children described in paragraph (1) to their 
full potential. Such projects shall provide for the direct participation 
of the parents of such children in the development, conduct, and 
overall direction of the program at the local level. If the Secretary 
determines that participation in the project of children who are not 
Prom low-income families will serve to carry out the purposes of this 
section, he may provide for the inclusion of such children from non-
low-income families, but only to the extent that their participation 
will not dilute the effectiveness of the services designed for children 
described in paragraph (1) of this subsection. 
u 
AUTHORIZATION OF APPROPRIATIONS 
"SEC. 552. (a) There are authorized to be appropriated for carry- 
"^^ use 29293. 
ing out the purposes of this part $60,000,000 for the fiscal year 1975, 
and for each of the two succeeding fiscal years. Funds so appropriated 
shall remain available for obligation and expenditure during the fiscal 
year succeeding the fiscal year for which they are appropriated. 
"(b) Financial assistance extended under this part for a Follow 
Through program shall not exceed 80 per centum of the approved costs 
of the assisted program or activities, except that the Secretary may 
approve assistance in excess of such percentage if he determines, in 
accordance with regulations establishing objective criteria, that such 
action is required in furtherance of the purposes of this part. Non-Fed-
eral contributions may be in cash or in kind, fairly evaluated, including 
but not limited to plant, equipment, or services. The Secretary shall 
not require non-Federal contributions in excess of 20 per centum of the 
approved costs of programs or activities assisted under this part. 
"(c) No project shall be approved for assistance under this part 
unless the Secretary is satisfied that the services to be provided under 
such project will be in addition to, and not in substitution for, services 
previously provided without Federal assistance. The requirement 
imposed by the preceding sentence shall be subject to such regulations 
as the Secretary may adopt. 
" R E S E A R C H , 
DEMONSTRATION, AND PILOT PROJECTS; 
EVALUATION; 
AND 
TECHNICAL ASSISTANCE ACTIVITIES 
"SEC. 553. (a) In conjunction with other activities authorized by 
this part, the Secretary may— 
"(1) provide financial assistance, by contract or otherwise, for 
research, demonstration, or pilot projects conducted by public 
42 u s e 2929b. 
2308 
PUBLIC LAW 93-644-JAN. 4, 1975 
[88 STAT. 
or private agencies which are designed to test or assist in the 
development of new approaches or methods that will aid in 
overcoming special problems or otherwise in furthering the pur-
poses of this part; 
"(2) provide, directly or through grants or contracts, for the 
continuing evaluation of projects assisted under this part, includ-
ing evaluations that describe and measure the impact of such proj-
ects, their effectiveness in achieving stated goals, their impact 
on related programs, and their structure and mechanisms for 
delivery of services, including, where appropriate, comparisons 
with appropriate control groups composed of persons who have 
not participated in such projects, which evaluations shall be con-
ducted by persons not directly involved in the administration of 
the project evaluated; and 
"(3) provide, directly or through grants or other appropriate 
arrangements, (A) technical assistance to Follow Through pro-
grams in developing, conducting, and administering programs 
under this part, and (B) training for specialized or other per-
sonnel which is needed in connection with Follow Through pro-
grams. 
"SPECIAL CONDITIONS 
42 use 2929c. 
"SEC. 554. (a) Recipients of financial assistance imder this part shall 
provide maximum employment opportunities for residents of the area 
to be served, and to parents of children who are participating in proj-
ects assisted under this part. 
"(b) Financial assistance under this part shall not be suspended 
for failure to comply with applicable terms and conditions, except 
in emergency situations, nor shall an application for refunding be 
denied, unless the recipient agency has been given reasonable notice 
and opportunity to show cause why such action should not be taken. 
"(c) Financial assistance under this part shall not be terminated for 
failure to comply with applicable terms and conditions unless the 
recipient has been afforded reasonable notice and opportunity for a full 
and fair hearing, 
"PART C—GENERAL PROVISIONS 
u 
DEFINITIONS 
42 use 2930. 
u^^^ 
^^^^ /^g ^^gg^ jj^ ^j^ig ^j^-jg^ ^hc term— 
" (1) 'Secretary' means the Secretary of Health, Education, and 
Welfare; 
"(2) 'State' means a State, the Commonwealth of Puerto Rico, 
the District of Columbia, Guam, American Samoa, the Virgin 
Islands, and the Trust Territory of the Pacific Islands; except 
that when used in section 513 (a) of this title, the term means only 
a State, Puerto Rico, or the District of Columbia; and 
" (3) 'financial assistance' includes assistance provided by grant, 
agreement, or contract, and payments may be made in install-
ments and in advance or by way of reimbursement with neces-
sary adjustments on account of overpayments or underpayments. 
Ante, p. 2301, 
LABOR STANDARDS 
42 u s e 2930a. 
"SEC. 572. All laborer's and mechanics employed by contractors or 
subcontractors in the construction, alteration, or repair, including 
painting and decorating of projects, buildings, and works which are 
federally assisted under this title shall be paid wages at rates not less 
40 use 
note. 
276a 
5 u s e 
app. 
40 use 
42 use 
276c. 
2930b, 
88 STAT. ] 
PUBLIC LAW 93-644-JAN. 4, 1975 
2309 
than those prevailing on similar construction in the locality as deter-
mined by the Secretary of Labor in accordance with the Davis-Bacon 
Act, as amended (40 IJ.S.C. 276a—276a-5). The Secretary of Labor 
shall have, with respect to such labor standards, the authority and 
functions set forth in Reorganization Plan Numbered 14 of 1950 (15 
F.R. 3176; 64 Stat. 1267; 5 U.S.C. 133—133z-15), and section 2 of the 
Act of June 1, 1934, as amended (48 Stat, 948, as amended; 40 U.S.C. 
276(C)). 
"COMPARABILITY or WAGES 
"SEC. 573, (a) The Secretary shall take such action as may be neces-
sary to assure that persons employed in carrying out programs 
financed under this title shall not receive compensation at a rate which 
is (1) in excess of the average rate of compensation paid in the area 
where the program is carried out to a substantial number of the 
persons providing substantially comparable services, or in excess of 
the average rate of compensation paid to a substantial number of the 
persons providing substantially comparable services in the area of the 
person's immediately preceding employment, whichever is higher, or 
(2) less than the minimum wage rate prescribed in section 6(a) (1) of 
the Fair Labor Standards Act of 1938. 
29 use 2 06. 
"NONDISCRIMINATION PROVISIONS 
"SEC. 574. (a) The Secretary shall not provide financial assistance 
'^^ use 2930c. 
for any program, project, or activity under this title unless the grant 
or contract with respect thereto specifically provides that no person 
with responsibilities in the operation thereof will discriminate with 
respect to any such program, project, or activity because of race, creed, 
color, national origin, sex, political affiliation, or beliefs. 
"(b) No person in the United States shall on the ground of sex be 
excluded from participation in, be denied the benefits of, be subjected 
to discrimination under, or be denied employment in connection with 
any program or activity receiving assistance under this title. The 
Director shall enforce the provisions of the preceding sentence in 
accordance with section 602 of the Civil Rights Act of 1964. Section 
^^ use 2000.1.1. 
603 of such Act shall apply with respect to any action taken by the 
"^^ use 20ooci.2. 
Secretary to enforce such sentence. This section shall not be construed 
as affecting any other legal remedy that a person may have if that 
person is excluded from participation in, denied the benefits of, sub-
jected to discrimination under, or denied employment in connection 
with, any program, project, or activity receiving assistance under this 
title. 
"SEC. 575, No individual employed or assigned by any Headstart 
'•2 use 2930d. 
agency or other agency assisted under this title shall, pursuant to or 
during the performance of services rendered in connection with any 
program or activity conducted or assisted under this part by such 
Headstart agency or such other agency, plan, initiate, participate in, or 
otherwise aid or assist in the conduct of any unlawful demonstration, 
rioting, or civil disturbance. 
u 
POLITICAL A C T I V I T I E S 
"SEC. 576. (a) For purposes of chapter 15 of title 5 of the United 
^^ use 2930e. 
States Code any agency which assumes responsibility for planning, 
^ use isoi. 
developing, and coordinating Headstart programs and receives assist-
38-194 O - 76 -63 Pt. 2 
2310 
PUBLIC LAW 93-644-JAN. 4, 1975 
[88 STAT. 
5 use 1502. 
ance under this title shall be deemed to be a State or local agency; and 
for purposes of clauses (1) and (2) of section 1502(a) of such title any 
agency receiving assistance under this part shall be deemed to be a 
State or local agency. 
"(b) Programs assisted under this title shall not be carried on in a 
manner involving the use of program funds, the provision of services, 
or the employment or assignment of personnel in a manner supporting 
or resulting in the identification of such programs with (1) any 
partisan or nonpartisan political activity or any other political activ-
ity associated with a candidate, or contending faction or group, in an 
election for public or party office, (2) any activity to provide voters or 
prospective voters with transportation to the polls or similar assistance 
in connection with any such election, or (3) any voter registration 
activity. The Secretary, after consultation with the Civil Service 
Commission, shall issue rules and regulations to provide for the 
enforcement of this section, which shall include provisions for sum-
mary suspension of assistance or other action necessary to permit 
enforcement on an emergency basis. 
a 
ADVANCE FUNDING 
42 use 2930f. 
'State. 
"SEC. 577. For the purpose of affording adequate notice of funding 
available under this title, appropriations for carrying out this part are 
authorized to be included in an appropriation Act for the fiscal year 
preceding the fiscal year for which they are available for obligation." 
(b) The Economic Opportunity Act of 1964 is further amended by 
^"^'•^- 
striking out "Director" each place it appears in sections 522 and 523 
and inserting in lieu thereof "Secretary", by striking out "and the 
Secretary of Health, Education, and Welfare" in section 522(d), and 
by striking out "their jurisdictions" in section 522(d) and inserting 
in lieu thereof "his jurisdiction". 
2/33"^'^ ^^^^' 
(*^) Sections 521 through 523 of the Economic Opportunity Act of 
1964 are redesignated as sections 581 through 583, respectively. 
42 use s 101. 
(d)(1) Section 2 of the Child Abuse Prevention and Treatment Act 
is amended by adding at the end thereof the following new subsection: 
"(c) The Secretary may carry out his functions under subsection 
(b) of this section either directly or by way of grant or contract.". 
42 use 5103. 
j^2) Section 4 of such Act is amended by adding at the end thereof 
the following new subsection: 
"(e) For the purpose of this section, the term 'State' includes each 
of the several States, the District of Columbia, the Commonwealth of 
Puerto Rico, American Samoa, the Virgin Islands, Guam and the 
Trust Territories of the Pacific". 
ADMINISTRATION 
SEC. 9. (a) Section 601 of the Economic Opportunity Act of 1964 
is amended to read as follows: 
"COMMUNITY SERVICES ADMINISTRATION 
42 use 2941. 
"SEC. 601. Upon the date of enactment of the Headstart, Economic 
Ante. p. 2291. 
Opportunity, and Community Partnership Act of 1974, there is estab-
lished within the executive branch an agency known as the 'Com-
munity Services Administration' which shall be headed by a Director 
and which shall be, in all respects and for all purposes, the successor 
authority to the Office of Economic Opportunity. The Director of the 
Administration shall be appointed by the President by and with the 
advice and consent of th-? Senate. The Director shall be compensated 
88 STAT. ] 
PUBLIC LAW 93-644-JAN. 4, 1975 
2311 
at a rate equal to the rate in effect for the compensation of the Director 
of the Office of Economic Opportunity on the date of the enactment of 
such Act. 
"(b) There shall also be in the Administration one Deputy Director 
and Assistant Directors who shall be appointed by the President, by 
and with the advice and consent of the Senate. The Deputy Director 
and the Assistant Directors shall perform such functions as the Direc-
tor may prescribe. The Deputy Director and the Assistant Directors 
shall be compensated at a rate equal to the rate in effect for the Deputy 
Director and the Assistant Directors, respectively, of the Office of 
Economic Opportunity on the date of enactment of the Headstart, 
Economic Opportunity, and Community Partnership Act of 1974. 
^"'^' P- 2291. 
"(c) Subject to the provisions of subsection (e) of this section, the 
Administration shall be an independent agency. The Director shall 
have the responsibility for carrying out titles I, II, III-B, VI, VII, 
and I X of this Act. The functions of the Director with respect to car- 
^2"usc*286^i^" 
rying out titles I, I I (except section 232), I I I - B , VI, VII, and I X 2941. 
of this Act shall not be delegated to any other officer not directly ,3^8^'' ^" ^^^^' 
responsible, both with respect to program operation and administra-
tion, to the Director. Beginning after June 15,1975, the policymaking 
functions, including the final approval of grants and contracts, of the 
Director, shall not be delegated to any regional office or official. 
"(d) (1) All official actions taken by the Director of the Office of 
Economic Opportunity, his designee, or any other person under the 
authority of the Economic Opportunity Act of 1964 which are in force ^^'^^ "^^ ^^^^ 
on the date of the enactment of the Headstart, Economic Opportunity, 
and Community Partnership Act of 1974, and for which there is con-
tinuing authority under the provisions of this Act, shall continue in 
full force and effect until modified, superseded, or revoked by the 
Director. 
" (2) All references to the Office of Economic Opportunity, or to the 
Director of the Office of Economic Opportunity, in any statute, reor-
ganization plan, executive order, regulation, or other official document 
or proceeding shall, on and after such date, be deemed to refer to the 
Adrainistration, or to the Director, as the case may be. 
"(3) No suit, action, or other proceeding, and no cause of action, 
by or against the Office of Economic Opportunity, or any action by 
any officer thereof acting in his official capacity, shall abafJe by reason 
of the enactment of the Headstart, Economic Opportunity, and Com-
munity Partnership Act of 1974. 
"(4) Persons appointed by the President, by and with the advice 
and consent of the Senate, to positions in the Office of Economic 
Opportunity, requiring appointment by and with such advice and con-
sent, may, if the President so desires, continue to serve in comparable 
positions in the Administration; but the President may submit to the 
Senate nominations for appointment to any or all positions in the 
Administration, requiring the advice and consent of the Senate. 
" (e) (1) After March 15,1975, the President may submit to the Con- 
Reorganization 
^ ' ^ ' 
. 
. . 
1 
' 
^ ' I 
^ • 
, , 
,t 
• • 
n 
plan, submittal to 
gress a reorganization plan which, subject to the provisions of para- congress, 
graph (2) of this subsection, shall take effect if such reorganization 
plan is not disapproved by enactment of a joint resolution which shall 
be considered in Congress in accordance with the provisions of para-
graph (3) of this subsection and the procedures established with 
respect to reorganization plans by chapter 9 of title 5, United States 
Code, except to the extent otherwise provided in this Act. 
" (2) A reorganization plan submitted in accordance with the provi-
sions of paragraph (1) shall pro 
vide— 
5 use 901, 
2312 
PUBLIC LAW 93-644-JAN. 4, 1975 
[88 STAT. 
" (A) for establishing in the Department of Health, Education, 
and Welfare a Community Services Administration— 
" (i) which shall be headed by a Director, 
"(ii) which shall be the principal agency, and the Director 
of which shall be the principal officer, for carrying out titles 
42"usc"2^8^6f; 
I' I I ' III-B, y i , and I X of this Act, and which, with respect 
2941. 
' 
to such provisions, shall be the successor authority to the 
Posf, p. 2328. 
Community Services Administration established by subsection 
(a) of this section, 
" (iii) the Director of which shall be, in the performance 
of his functions, directly responsible to the Secretary, and 
"(iv) in which no policymaking functions, including the 
final approval of grants or contracts, of the Director shall be 
delegated to any regional office or official. 
"(B) for establishing in the Department of Commerce a Com-
munity Economic Development Administration— 
" (i) which shall be headed by a Director, 
" (ii) which shall be the principal agency, and the Director 
of which shall be the principal officer, for carrying out title 
Post, p. 2315. 
Y j j ^^ ^Yiis Act, and which, with respect to such provisions, 
shall be the successor authority to the Community Services 
Administration established by subsection (a) of this section, 
"(iii) the Director of which shall be, in the performance 
of his functions, directly responsible to the Secretary, and 
"(iv) in which no policymaking functions, including the 
final approval of grants or contracts, of the Director shall 
be delegated to any regional office or official. 
"(3) For the purpose of this subsection and chapter 9, title 5, 
5 use 901, 
United States Code, to the extent incorporated by this subsection, 
the following provisions apply: 
"Resolution." 
"(A) The term 'resolution' means a joint resolution the matter 
after the resolving clause of which is: 'That the Congress of the 
United States disapproves the Community Services Administra-
tion Reorganization Plan transmitted to the Congress by the 
President on 
, 19—,.' The blank spaces therein are to 
be appropriately filled. 
"(B) If, prior to the passage by one House of the joint reso-
lution of that House with respect to the reorganization plan, such 
House receives from the other House a joint resolution with 
I'espect to the same plan, then the following procedure applies: 
"(i) If no resolution of the first House with respect to 
such plan has been referred to committee, no other resolution 
with respect to the same plan may be reported or (despite 
the provisions of section 912(a) of title 5, United States 
Code) be made the subject of a motion to discharge. 
" (ii) If a resolution of the first House with respect to such 
plan has been referred to committee— 
"(I) the procedure with respect to that or other reso-
lutions of such House with respect to such plan which 
have been referred to committee shall be the same as if 
no resolution from the other House with respect to such 
plan had been received; but 
"(II) on any vote on final passage of a resolution of 
the first House with respect to such plan the resolution 
from the other House with respect to such plan shall be 
automatically substituted for the resolution of the first 
House." 
88 STAT. ] 
PUBLIC LAW 93-644-JAN. 4, 1975 
2313 
"(4) The transfers authorized under subparagraphs (A) and (B) 
of paragraph (3) of this subsection shall be effective 30 days after 
the last date on which such reorganization plan could be disapproved 
under this subsection. 
"(f) In the event that the reorganization plan pursuant to subsection 
(e) takes effect, the Director of the Community Services Administra-
tion and the Director of the Community Economic Development 
Administration shall each be appointed by the President, by and with 
the advice and consent of the Senate, except that the person serving 
as Director of the independent Community Services Administration 
pursuant to the advice and consent of the Senate may, if the President 
notifies the Congress accordingly, continue to serve as Director of the 
Community Services Administration within the Department of 
Health, Education, and Welfare; but the President may in such event 
submit to the Senate a nomination for such position. 
"(g) In the event that the reorganization plan pursuant to sub-
section (e) of this section takes effect, on the effective date thereof 
the property, records, and unexpended balances of appropriations, 
allocations, and other funds employed, used, held, available, or to be 
made available in connection with the functions of the Director of the 
independent Community Services Administration, established by sub-
section (a) of this section, shall be transferred to the Director of the 
Community Services Administration, within the Department of 
Health, Education, and Welfare and to the Director of the Economic 
Development Administration within the Department of Commerce, 
as appropriate. All grants, applications for grants, contracts, and 
other agreements awarded or entered into by the Director of the inde-
pendent Community Services Administration shall continue to be 
recognized so that there is no disruption of ongoing activities for 
which there is continuing authority. 
"(h) (1) In the event that the reorganization plan pursuant to sub-
section (e) of this section takes effect, on the effective date thereof all 
Federal personnel employed by the independent Community Services 
Administration under the authorization and appropriations for the 
Economic Opportunity Act of 1964, transferred to the Community ^J^^ "^'^ ^^°^ 
Services Administration within the Department of Health, Education, 
and Welfare or to the Community Economic Development Adminis-
tration within the Department of Commerce shall, to the extent feasi-
ble, be assigned to related functions and organizational units in the 
appropriate Administration, without loss of salary, rank, or other 
benefits, including the right to representation and to the existing basic 
collective-bargaining agreement. 
"(2) In the event that the reorganization plan pursuant to subsec-
tion (e) of this section takes effect, on the effective date thereof all 
official actions taken by the Director of the independent Community 
Services Administration, his designee, or any other person under the 
puthority of the Economic Opportunity Act of 1964 which are in 
force on such date, and for which there is continuing authority under 
tlie provisions of this Act, shall continue in full force and effect until 
modified, superseded, or revoked by the Director of the Community 
Services Administration within the Department of Health, Education 
and Welfare or the Director of the Community Economic Develop-
ment Administration 
within the Department of Commerce, as 
appropriate. 
"(3) In the event that the reorganization plan submitted pursuant 
to subsection (e) of this section takes effect, on the effective date 
thereof all references to the independent Community Services Admin-
istration or to the Director of that Administration in any statute, 
reorganization plan, executive order, regulation, or other official docu-
2314 
PUBLIC LAW 93-644-JAN. 4, 1975 
[88 STAT. 
ment or proceeding shall, on and after such date, be deemed to refer 
to the Community Services Administration within the Department 
of Health, Education and Welfare, or the Director of the Community 
Economic Development Administration, in the Department of Com-
merce as appropriate, or to the Director of either such Administration, 
as the case may be. 
"(4) In the event that the reorganization plan submitted pursuant 
to subsection (e) of this section takes effect, on the effective date 
thereof no suit, action, or other proceeding, and no cause of action, 
by or against the independent Community Services Administration, 
or any action by any officer thereof acting in his official capacity, shall 
abate by reason of the taking effect of such plan." 
^^p^^^- 
(b) Section 28 of the Economic Opportunity Amendments of 1972 
^
4
2 use 2942 
(§6 Stat. 705, September 19, 1972) is repealed effective on the date 
on which a reorganization plan is effective under subsection (c) of 
tliis section. 
note "^"^ ^^°^ 
(c) The Economic Opportunity Act of 1964 is further amended 
by— 
(1) 
striking out "Office of Economic Opportunity" and 
42 use 2942. 
J'Office" cach time that they appear in section 602(d) and 
inserting in lieu thereof "Community Services Administration"; 
(2) striking out "Office of Economic Opportunity" in section 
603(c) and inserting in lieu thereof "Community 
Services 
Administration"; 
(3) striking out "in the Office" in section 605(a) and inserting 
in lieu thereof "in the Community Services Administration"; 
(4) striking out "Office of Economic Opportunity" in section 
632(2) and inserting in lieu thereof "Community Services 
Administration"; 
(5) striking out "of the Office of Economic Opportunity" in 
42 use 2979. 
scctiou 637(b) (2), and inserting in lieu thereof "of the Commu-
nity Services Administration"; and 
Repeal. 
(Q) repealing section 609 of such Act. 
(d) Section 625 of the Economic Opportunity Act of 1964 is 
amended to read as follows: 
42 use 2943 
42 use 2945 
42 use 2974. 
42 use 2949. 
li CRITERIA FOR DETERMINING ELIGIBILITY 
42 use 297id. 
"SEC. 625. (a) Every agency administering programs authorized by 
this Act in which the poverty line is a criterion of eligibility shall 
revise the poverty line at annual intervals, or at any shorter interval 
it deems feasible and desirable. 
"(b) The revision required by subsection (a) of this section shall 
be accomplished by multiplying the official poverty line (as defined 
by the Office of Management and Budget) by the percentage change 
in the Consumer Price Index during the annual or other interval 
immediately preceding the time at which the revision is made. 
"(c) Revisions required by subsection (a) of this section shall be 
made and issued not more than thirty days after the date on which 
the necessary consumer price index data becomes available." 
"(e) The Economic Opportunity Act of 1964 is further amended 
by inserting after section 625 the following new sections: 
(; 
CRIMINAL PROVISIONS 
42 use 297if. 
"SEC. 626. (a) Whoever, being an officer, director, agent, or 
employee of, or connected in any capacity with, any agency receiving 
financial assistance under this Act embezzles, willfully misapplies, 
steals, or obtains by fraud any of the moneys, funds, assets, or 
property 
which are the subject 
of 
a grant or contract 
of 
88 STAT. ] 
PUBLIC LAW 93-644-JAN. 4, 1975 
2315 
assistance pursuant to this Act, shall be fined not more than $10,000 
or imprisoned for not more than two years, or both; but if 
the amount so embezzled, misapplied, stolen, or obtained by fraud 
does not exceed $100, he shall be fined not more than $1,000 or 
imprisoned not more than one year, or both. 
"(b) Whoever, by threat of procuring dismissal of any person 
from employment or of refusal to employ or refusal to renew a con-
tract of employment in connection with a grant or contract of 
assistance under this Act induces any person to give up any money 
or thing of any value to any person (including such grantee agency), 
shall be fined not more than $1,000 or imprisoned not more than one 
year, or both. 
a WITHHOLDING CERTAIN FEDERAL TAXES BY ANTIPOVERTY AGENCIES 
"SEC. 627. Upon notice from the Secretary of the Treasury or his 
'^^ "^^ 297ig. 
delegate that any person otherw^ise entitled to receive a payment made 
pursuant to a grant, contract, agreement, loan or other assistance made 
or entered into under this Act is delinquent in paying or depositing (1) 
the taxes imposed on such person under chapters 21 and 23 of the 
Internal Revenue Code of 1954, or (2) the taxes deducted and withheld ^^^^ ^^^ ^^°^' 
by such person under chapters 21 and 24 of such Code, the Director 
26 use 3401. 
shall suspend such portion of such payment due to such person, which, 
if possible, is sufficient to satisfy such delinquency, and shall not make 
or enter into any new grant, contract, agreement, loan or other assist-
ance under this Act with such person until the Secretary of the 
Treasury or his delegate has notified him that such person is no longer 
delinquent in paying or depositing such tax or the Director determines 
that adequate provision has been made for such payment. In order 
to effectuate the purpose of this section on a reasonable basis the 
Secretary of the Treasury and the Director shall consult on a quarterly 
basis." 
COMMUNITY ECONOMIC 
DEVELOPMENT 
SEC. 10. (a) Title VII of the Economic Opportunity Act of 1964 is 
amended to read as follows: 
"TITLE VII—COMMUNITY ECONOMIC DEVELOPMENT 
"STATEMENT or 
PURPOSE 
"SEC. 701. The purpose of this title is to encourage the development 
''^ use 2981. 
of special programs by which the residents of urban and rural low-
income areas may, through self-help and mobilization of the com-
munity at large, with appropriate Federal assistance, improve the 
quality of their economic and social participation in community life 
in such a way as to contribute to the elimination of poverty and the 
establishment of permanent economic and social benefits. 
"DEFINITION 
"SEC. 702. As used in this title the term 'community development 
''^ ^^'^ 298ia. 
corporation' means a nonprofit organization responsible to residents 
of the area it serves which is receiving financial assistance under part 
A of this title and any organization more than 50 per centum of which 
is owned by such an organization, or otherwise controlled b}^ such 
an organization, or designated by such an organization for the purpose 
of this title. 
2316 
PUBLIC LAW 93-644-JAN. 4, 1975 
[88 STAT. 
a 
AUTHORIZATION OV APPROPRIATIONS 
42 u s e 2981b. 
"SEC. 703. For the purpose of carrying out this title, there are 
authorized to be appropriated $39,000,000 and such additional sums 
as may be necessary for fiscal year 1975 and such sums as may be 
necessary for each of the two succeeding fiscal years. 
"PART A—URBAN AND RURAL SPECIAL IMPACT PROGRAMS 
"STATEMENT OF PURPOSE 
42 use 2 982. 
"SEC. 711. Thc purposc of this part is to establish special programs 
of assistance to nonprofit private locally initiated community devel-
opment corporations which (1) are directed to the solution of the 
critical problems existing in particular communities or neighborhoods 
(defined without regard to political or other subdivisions or bound-
aries) within those urban and rural areas having concentrations or 
substantial numbers of low-income persons; (2) are of sufficient size, 
scope, and duration to have an appreciable impact in such commu-
nities, neighborhoods, and rural areas in arresting tendencies toward 
dependency, chronic unemployment, and community deterioration; (3) 
hold forth the prospect of continuing to have such impact after the 
termination of financial assistance under this part, and (4) provide 
financial and other assistance to start, expand, or locate enterprises 
in or near the area to be served so as to provide employment and 
ownership opportunities for residents of such areas, including those 
who are disadvantaged in the labor market because of their limited 
speaking, reading, and writing abilities in the English language. 
"ESTABLISHMENT AND SCOPE OF PROGRAMS 
42 use 2982a. 
"SEC. 712. (a) The Director is authorized to provide financial assist-
ance in the form of grants to nonprofit and for profit community 
development corporations and other affiliated and supportive agencies 
and organizations associated with qualifying community development 
corporations for the payment of all or part of the cost of programs 
which are designed to carry out the purposes of this part, Financial 
assistance shall be provided so that each community economic devel-
opment program is of sufficient size, scope, and duration to have an 
appreciable impact on the area served. Such programs may include— 
"(1) community economic and business development programs, 
including but not limited to: (A) programs which provide finan-
cial and other assistance (including equity capital) to start, 
expand, or locate businesses in or near the area served so as to 
provide employment and ownership opportunities for residents of 
such areas, and (B) programs for small businesses located in or 
owned by residents of such areas; 
"(2) community development including industrial parks and 
housing activities which contribute to an improved environment 
and which create new training, employment, and ownership 
opportunities for residents of such area; 
"(3) training and public service employment programs and 
related services for unemployed or low-income persons which 
support and complement community development programs 
financed under this part, including, without limitation, activities 
such as those described in the Comprehensive Employment and 
2 9 use 801 
Training Act of 1973; and 
"(4) social service programs which support and complement 
community economic development programs financed under this 
part, including but not limited to child care, educational services, 
88 STAT. ] 
PUBLIC LAW 93-644-JAN. 4, 1975 
2317 
health services, credit counseling, energy conservation, and pro-
grams for the maintenance of housing facilities. 
"(b) The Director shall conduct programs assisted under this part 
so as to contribute, on an equitable basis between urban and rural 
areas, to the elimination of poverty and the establishment of perma-
nent economic and social benefits in such areas. 
"FINANCIAL ASSISTANCE REQUIREMENTS 
"SEC. 713. (a) The Director, under such regulations as he may 
establish, shall not provide financial assistance for any community 
economic development program under this part unless he determines 
that— 
"(1) such community development corporation is responsible 
to residents of the area served (i) through a governing body not 
less than 50 per centum of the members of which are area residents 
and (ii) in accordance with such other guidelines as may be estab-
lished by the Director, except that the composition of the govern-
ing bodies of organizations owned or controlled by the community 
development corporation need not be subject to such residency 
requirement; 
"(2) the program will be appropriately coordinated with local 
planning under this title, with housing and community develop-
ment programs, with employment and training programs, and 
with other relevant planning for physical and human resources 
in the areas served ; 
"(3) adequate technical assistance is made available and com-
mitted to the programs being supported; 
" (4) such financial assistance will materially further the pur-
poses of this part; 
"(5) the applicant is fulfilling or will fulfill a need for services, 
supplies, or facilities which is otherwise not being met; 
"(6) all projects and related facilities will, to the maximum 
feasible extent, be located in the areas served; 
"(7) projects will, where feasible, promote the development 
of entrepreneurial and management skills and the ownership or 
participation in ownership of assisted businesses and housing, 
cooperatively or otherwise, by residents of the area served ; 
"(8) projects will be planned and carried out with the fullest 
possible participation of resident or local businessmen and rep-
resentatives of 
financial 
institutions, including participation 
through contract, joint venture, partnership, stock ownership or 
membership on the governing boards or advisory councils of such 
projects consistent with the self-help purposes of this title; 
"(9) no participant will be employed on projects involving 
political parties, or the construction, operation, or maintenance of 
so much of any facility as is used or to be used for sectarian in-
struction or as a place for religious worship; 
"(10) the program will not result m the displacement of 
employed workers or impair existing contracts for services, or 
result in the substitution of Federal or other funds in connection 
with work that would otherwise be performed ; 
"(11) the rates of pay for time spent in work-training and edu-
cation, and other conditions of employment, will be appropriate 
and reasonable in the light of such factors as the type of work, 
geographical region, and proficiency of the participant; 
"(12) the program will, to the maximum extent feasible, con-
tribute to the occupational development or upward mobility of 
individual participants; 
42 use 29«2b. 
2318 
PUBLIC LAW 93-644-JAN. 4, 1975 
[88 STAT. 
"(13) preference will be given to low-income or economically 
disadvantaged residents of the areas served in filling jobs and 
training opportunities; and 
" (14) training programs carried out in connection with projects 
financed under this part shall be designed wherever feasible to 
provide those persons who successfully complete such training 
with skills which are also in demand in communities, neighbor-
hoods, or rural areas other than those for which programs are 
established under this part. 
"(b) Financial assistance under this section shall not be extended 
to assist in the relocation of establishments from one location to 
another if such relocation would result in an increase in unemploy-
ment intlie area of original location. 
"(c) The level of financial assistance for related purposes under 
this Act, or any other program for Federal financial assistance, to the 
area served by a special impact program shall not be diminished in 
order to substitute funds authorized by this part. 
li FEDERAL SHARE OF PROGRAM 
COSTS 
42 use 2982c. 
"SEC. 714. Federal assistance to any program carried out pursuant 
to this part, including grants used by community development cor-
porations for capital improvements, shall (1) not exceed 90 per centum 
of the cost of such program including costs of administration unless 
the Director determines that the assistance in excess of such percent-
age is required in furtherance of the purposes of this part, and (2) 
be made available for deposit to the order of the grantee, under condi-
tions which the Director deems appropriate, within thirty days fol-
lowing approval of the grant agreement by the Director and such 
grantee of the grant agreement. Non-Federal contributions may be in 
cash or in kind, fairly evaluated, including but not limited to plant, 
equipment, and services. Capital investments made with funds granted 
as a result of the Federal share of the costs of programs carried out 
under this title, and the proceeds from such capital investments, shall 
not be considered Federal property. Upon investment, title rights vest 
in the community development corporation. The Federal Government 
retains the right to direct that on severance of the grant relationship 
the assets purchased continue to be used for the original purpose for 
which they were granted. 
"PART B—SPECIAL RURAL PROGRAMS 
"STATEMENT OF PURPOSE 
42 use 2983. 
"SEC. 721. It Is the purpose of this part to meet the special economic 
needs of rural communities or areas with concentrations or substantial 
numbers of low-income persons by providing support to self-help 
programs which promote economic development and independence, as 
a supplement to existing similar programs conducted by other depart-
ments and agencies of the Federal Government. Such programs should 
encourage low-income families to pool their talents and resources so 
as to create and expand rural economic enterprise. 
"FINANCIAL ASSISTANCE 
42 use 2983a. 
"SEC. 722. (a) The Director is authorized to provide financial assist-
ance, including loans having a maximum maturity of 15 years and in 
amounts not resulting in an aggregate principal indebtedness of more 
than $3,500 at any one time, to any low-income rural family where, 
in the judgment of the Director, such financial assistance has a rea-
sonable possibility of effecting a permanent increase in the income of 
88 STAT. ] 
PUBLIC LAW 93-644-JAN. 4, 1975 
2319 
such families, or will contribute to the improvement of their living or 
housing conditions, by assisting or permitting them to— 
"(1) acquire or improve real estate or reduce encumbrances or 
erect improvements thereon; 
"(2) operate or improve the operation of farms not larger 
than family sized, including but not limited to the purchase of 
feed, seed, fertilizer, livestock, poultry, and equipment; or 
"(3) participate in cooperative associations, or to finance non-
agricultural enterprises which will enable such families to 
supplement their income. 
"(b) The Director is authorized to provide financial assistance to 
local cooperative associations in rural areas containing concentra-
tions or substantial numbers of low-income persons for the purpose 
of defraying all or part of the costs of establishing and operating 
cooperative programs for farming, purchasing, marketing, process-
ing, and to improve their income as producers and their purchasing 
power as consumers, and to provide such essentials as credit and health 
services. Costs which may be defrayed shall include but not be limited 
to— 
" (1) administrative costs of staff and overhead; 
" (2) costs of planning and developing new enterprises; 
" (3) costs of acquiring technical assistance; and 
"(4) initial capital where it is determined by the Director that 
the poverty of the families participating in the program and the 
social conditions of the rural area require such assistance. 
II 
LIMITATION ON 
ASSISTANCE 
"SEC. Y23. (a) No financial assistance shall be provided under this 
"
^
^ use 2983b. 
part unless the Director determines that— 
"(1) any cooperative association receiving assistance has a 
minimum of fifteen active members, a majority of which are low-
income rural persons; 
"(2) adequate technical assistance is made available and com-
mitted to the programs being supported; 
"(3) such financial assistance will materially further the pur-
poses of this part; and 
"(4) the applicant is fulfilling or will fulfill a need for services, 
supplies, or facilities which is otherwise not being met. 
" (b) The level of financial assistance for related purposes under this 
Act to the area served by a program under this part shall not be 
diminished in order to substitute funds authorized by this part. 
"PART C—DEVELOPMENT LOANS TO COMMUNITT ECONOMIC 
DEVELOPMENT PROGRAMS 
a 
DEVELOPMENT LOAN FUND 
"SEC. 731. (a) The Director is authorized to make or guarantee loans 
'•^ use 2984. 
(either directly or in cooperation with banks or other organizations 
through agreements to participate on an immediate or deferred basis) 
to community development corporations, and families and local 
cooperatives eligible for financial assistance under this title, for busi-
ness, housing, and community development projects which the Director 
determines will carry out the purposes of this part. No loans, guar-
antees, or other financial assistance shall be provided under this 
section unless the Director determines that— 
"(1) there is reasonable assurance of repayment of the loan; 
loans 
2320 
PUBLIC LAW 93-644-JAN. 4, 1975 
[88 STAT. 
"(2) the loan is not otherwise available on reasonable terms 
from private sources or other Federal, State, or local programs; 
and 
"(3) the amount of the loan, together with other funds avail-
able, is adequate to assure completion of the project or achieve-
ment of the purposes for which the loan is made. 
Interest rate on Loaus madc b j the Director pursuant to this section shall bear the 
interest at a rate not less than a rate determined by the Secretary of 
the Treasury taking into consideration the average market yield on 
outstanding Treasury obligations of comparable maturity, plus such 
additional charge if any, toward covering other costs of the program 
as the Director may determine to be consistent with its purposes, 
except that, for the five years following the date in which funds are 
initially available to the borrower, the rate of interest shall be set 
at a rate considered appropriate by the Director in light of the par-
ticular needs of the borrower which rate shall not be lower than 1 per 
centum. All such loans shall be repayable within a period of not more 
than thirty years. 
" (b) The Director is authorized to adjust interest rates, grant mora-
toriums on repayment of principal and interest, collect or compro-
mise any obligations held by him, and to take such other actions in 
respect to such loans as he shall determine to be necessary or appro-
priate, consistent with the purposes of this section. 
"(c) (1) To carry out the lending and guaranty functions author-
ized under this part, there shall be established a Development Loan 
Fund consisting of two separate accounts, one of which shall be a 
revolving fund called the Rural Development Loan Fund and the 
other of which shall be a revolving fund called the Community Devel-
opment Loan Fund. The capital of each such revolving fund shall 
remain available until expended. 
"(2) The Rural Development Loan Fund shall consist of the 
42 use 2 841. 
remaining funds provided for in part A of title I I I of this Act and 
such amounts as may be deposited in such Fund by the Director out 
of funds made available from appropriations for the purposes of carry-
ing out this part. The Director shall utilize the services of the 
Farmers Home Administration in administering the Fund. 
"(3) The Community Development Loan Fund shall consist of 
such amounts as may be deposited in such fund by the Secretary out of 
funds made available from appropriations for the purpose of carry-
ing out this subchapter. The Secretary may make deposits in the 
Community Development Loan Fund in any fiscal year in which he 
has made available for grants to community development corpora-
tions under part B of this title not less than $60,000,000 out of funds 
made available from appropriations for the purpose of carrying out 
this title. 
"ESTABLISHMENT or 
MODEL, COMMUNITY ECONOMIC DEVELOPMENT 
FINANCE 
CORPORATION 
"SEC. 732. (a) To the extent he deems appropriate, the Director shall 
utilize funds available under this part to prepare a plan of action for 
the establishment of a Model Community Economic Development 
Finance Corporation to provide a user-controlled independent and 
professionally operated long-term financing vehicle with the principal 
purpose of providing financial support for community economic devel-
opment corporations, cooperatives, other affiliated and supportive 
agencies and organizations associated with community economic devel-
opment corporations, and other entities eligible for assistance under 
this title. 
Ante, p. 2318. 
42 use 2984a. 
88 STAT. ] 
PUBLIC LAW 93-644-JAN. 4, 1975 
2321 
"(d) Not later than June 1, 1975, the Director shall submit to the ^/^^^^^'^^^^^^^f 
appropriate committees of the Congress the plan required by this commluees^.'""^ 
section. 
"PART D—SUPPORTIVE PROGRAMS AND ACTIVITIES 
TRAINING AND TECHNICAL ASSISTANCE 
"SEC. 741. (a) The Director shall provide, directly or through 
grants, contracts or other arrangements, such technical assistance and 
training of personnel as may be required to effectively implement the 
purposes of this title. No financial assistance shall be provided to any 
public or private organization under this section unless the Director 
provides the beneficiaries of these services with opportunity to partici-
pate in the selection of and to review the quality and utility of the serv-
ices furnished them by such organization. 
"(b) Technical assistance to community development corporations 
and both urban and rural cooperatives may include planning, man-
agement, legal preparation of feasibility studies, product development, 
marketing, and the provision of stipends to encourage skilled profes-
sionals to engage in full-time activities under the direction of a com-
munity organization financially assisted under this title. 
"(c) Training for employees of community development corpora-
tions and for employees and members of urban and rural cooperatives 
shall include, but not be limited to, on-the-job training, classroom 
instruction, and scholarships to assist them in development, manage-
rial, entrepreneurial, planning, and other technical and organizational 
skills which will contribute to the effectiveness of programs assisted 
under this subchapter. 
" A P P L I C A T I O N S o r O T H E R FEDERAL RESOURCES 
SMALL BUSINESS ADMIN-
ISTRATION PROGRAMS 
42 use 2985. 
42 use 2985a. 
"SEC. 742. (a) (1) Funds granted under this part which are invested 
directly or indirectly, in a small business investment company or a local 
development company, limited small business investment company 
shall be included as "private paid-in capital and paid-in surplus," 
"combined paid-in capital and paid-in surplus," and "paid-in capital" 
for purposes of sections 302, 303, and 502, respectively, of the Small 
Business Investment Act of 1958. 
^^ ^^^ ^^^' 
"(2) Within ninety days of the enactment of this title, the Admin- 
Reguiauons. 
istrator of the Small Business Administration, after consultation with 
the Secretary, shall prescribe such regulations as may be necessary and 
appropriate to insure the availability to community development cor-
porations of such programs as shall further the purposes of this part. 
" (b) (1) Areas selected for assistance under this title shall be deemed arfa\'^.^'"'^°^"'^"' 
'redevelopment areas' within the meaning of section 401 of the Public 
42 use 3161. 
Works and Economic Development Act of 1965, shall qualify for 
assistance under the provisions of title I and title 11 of that Act, and ^^\\ ^^^ ^^^'' 
shall be deemed to have met the overall economic development pro-
gram requirements of section 202 (b) (10) of such Act. 
^2 use 3142. 
"(2) Within ninety days of the enactment of this title, the Secre-
tary shall prescribe regulations which will insure that community 
development corporations and cooperatives shall qualify for assistance 
and shall be eligible to receive such assistance under all such pro-
grams of the Economic Development Administration as shall further 
the purposes of this title. 
2322 
PUBLIC LAW 93-644-JAN. 4, 1975 
[88 STAT. 
(( 
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT PROGRAMS 
42 use 2985b. 
"SEO. 743. The Secretary of Housing and Urban Development, after 
consultation with the Director, shall take all necessary steps to assist 
community development corporations and local cooperative associa-
tions to qualify for and receive (1) such assistance in connection with 
technical assistance, counseling to tenants and homeowners, and loans 
to sponsors of low- and moderate-income housing under, section 106 
1
2 use 1701X. ^
j
-
f ^^g Housing and Urban Development Act of 1968 as amended by 
Ante, p. 735. 
sectiou 811 of the Housing and Community Development Act of 1974, 
(2) such land for housing and business location and expansion under 
Ante, p. 633. 
^j^j^ J Qf ^^ Housiug and Community Development Act of 1974, and 
(3) such funds for comprehensive planning under section 701 of the 
40 use 461. 
Housing Act of 1954 as amended by section 401 of the Housing and 
Ante, p. 686. 
Community Development Act of 1974, as shall further the purposes 
of this Act. 
" D E P A R T M E N T OF AGRICULTURE AND FARMERS HOME ADMINISTRATION 
PROGRAMS 
42 use 2985c. 
"SEC. 744. (a) The Secretary of Agriculture or, where appropriate, 
the Administrator of the Farmers Home Administration, after con-
sultation with the Director, shall take all necessary steps to insure that 
community development corporations and local cooperative associa-
tions shall qualify for and shall receive (1) such assistance in con-
nection with housing development under the Housing Act of 1949, 
(2) such assistance in connection with housing, business, industrial, 
and community development under the Consolidated Farmers Home 
Administration Act of 1961 and the Rural Development Act of 1972, 
and (3) such further assistance under all such programs of the United 
States Department of Agriculture, as shall further the purposes of 
this title. 
"(b) On or before six months after the enactment of this title, and 
annually thereafter, the Secretary shall submit to the Congress a 
detailed report setting forth a description of all Federal agency pro-
grams which he finds relevant to achieving the purposes of this part 
and the extent to which such programs have been made available to 
community development corporations receiving financial assistance 
under this part including specifically the availability and effectiveness 
of programs referred to in subsection (a) of this section. Where 
appropriate, the report required under this subsection also shall con-
tain recommendations for the more effective utilization of Federal 
agency programs for carrying out the purposes of this title. 
42 use 
note. 
7 u s e 
note. 
Report 
gress. 
: 1441 
1921 
to eon-
« 
COORDINATION AND ELIGIBILITY 
42 use 2985d. 
"SEC. 745. (a) The Director shall take all necessary and appropriate 
steps to encourage Federal departments and agencies and State and 
local governments to make grants, provide technical assistance, enter 
into contracts, and generally support and cooperate with community 
development corporations and local cooperative associations. 
" (b) Eligibility for assistance under other Federal programs shall 
not be denied to any applicant on the ground that it is a community 
development corporation or any other entity assisted under this title. 
" E V A L U A T I O N 
AND 
RESEARCH 
42 use 2985e. 
"SEC. 746. (a) Each program for which grants are made under this 
title shall provide for a thorough evaluation of the effectiveness of the 
program in achieving its purposes, which evaluation shall be conducted 
88 STAT. ] 
PUBLIC LAW 93-644-JAN. 4, 1975 
2323 
hj such public or private organizations as the Director, in consultation 
with existing grantees familiar with programs carried out under this 
Act, may designate, and all or part of the costs of evaluation may be 
paid from funds appropriated to carry out this part. In evaluating 
the performance of any community development corporation funded 
under part A of this title, the criteria for evaluation shall be based 
upon such program objectives, goals, and priorities as are consistent 
with the purposes of this title and were set forth by such community 
development corporation in its proposal for funding as approved and 
agreed upon by the Director or as subsequently modified from time to 
time by mutual agreement between the Director and such community 
development corporation. 
"(b) The Director shall conduct, either directly or through grants 
or other arrangements, research designed to suggest new programs and 
policies to achieve the purposes of this title in such ways as to pro-
vide opportunities for employment, ownership, and a better quality 
of life for low-income residents. 
u 
PLANNING GRANTS 
"SEC. 747. In order to facilitate the purposes of this title, the Direc- 
"
^
^ "^*^ 2985f. 
tor is authorized to provide financial assistance to any public or private 
nonprofit agency or organization for planning of community economic 
development programs and cooperative programs under this title. 
"NONDISCRIMINATION PROVISIONS 
"SEC. 748. (a) The Director shall not provide financial assistance for 
^2 use 2985g. 
any program, project, or activity under this title unless the grant or 
contract with respect thereto specifically provides that no person with 
responsibilities in the operation thereof will discriminate with respect 
to any such program, project, or activity because of race, creed, color, 
national origin, sex, political affiliation, or beliefs. 
"(b) No person in the United States shall on the ground of sex be 
excluded from participation in, be denied the benefits of, be subjected 
to discrimination under, or be denied employment in connection with 
any program or activity receiving assistance under this title. The 
Director shall enforce the provisions of the preceding sentence in 
accordance with section 602 of the Civil Rights Act of 1964. Section 
^^ use 2oood.i. 
603 of such Act shall apply with respect to any action taken by the 
-
^
2 use 2000.1-2. 
Secretary to enforce such sentence. This section shall not be construed 
as affecting any other legal remedy that a person may have if that 
person is excluded from participation in, denied the benefits of, sub-
jected to discrimination under, or denied employment in connection 
with, any program, project, or activity receiving assistance under 
this title." 
NATIVE AMERICAN PROGRAMS 
SEC. 11. The Economic Opportunity Act of 1964 is further amended 
by inserting after title "VTI thereof the following new title V I I I : 
43 u s e 1061 
note. 
2324 
PUBLIC LAW 93-644-JAN. 4, 1975 
[88 STAT. 
Native Ameri- 
"TITLE VIII—NATIVE AMERICAN PROGRAMS 
can Programs Act 
of 1974. 
"SHORT TITLE 
42 use 2 991. 
"SEC. 801. This title may be cited as the 'Native American Programs 
Act of 1974'. 
"STATEMENT or PURPOSE 
42 use 2991a. 
"SEC. 802. The purpose of this title is to promote the goal of eco-
nomic and social self-sufficiency for American Indians, Hawaiian 
Natives and Alaskan Natives. 
" F I N A N C I A L 
ASSISTANCE FOR 
NATIVE AMERICAN PROJECTS 
42 use 2991b. 
"SEC. 803. (a) The Secretary is authorized to provide financial assist-
ance to public and nonprofit private agencies, including but not limited 
to, governing bodies of Indian tribes on Federal and State reserva-
tions, Alaskan Native villages and regional corporations established 
by the Alaska Native Claims Settlement Act, and such public and 
nonprofit private agencies serving Hawaiian Natives, and Indian 
organizations in urban or rural nonreservation areas, for projects per-
taining to the purposes of this title. In determining the projects to be 
assisted under this title, the Secretary shall consult with other Federal 
agencies for the purpose of eliminating duplication or conflict among 
similar activities or projects and for the purpose of determining 
whether the findings resulting from those projects may be incorporated 
into one or more programs for which those agencies are responsible. 
"(b) Financial assistance extended to an agency under this title 
shall not exceed 80 per centum of the approved costs of the assisted 
project, except that the Secretary may approve assistance in excess 
of such percentage if he determines, in accordance with regulations 
establishing objective criteria, that such action is required in further-
ance of the purposes of this title. Non-Federal contributions may be 
in cash or in kind, fairly evaluated, including but not limited to plant, 
equipment, and services. The Secretary shall not require non-Federal 
contributions in excess of 20 per centum of the approved costs of pro-
grams or activities assisted under this title. 
"(c) No project shall be approved for assistance imder this title 
unless the Secretary is satisfied that the activities to be carried out 
under such project will be in addition to, and not in substitution for, 
comparable activities previously carried out without Federal assist-
ance, except that the Secretary may waive this requirement in any 
case in which he determines, in accordance with regulations establish-
ing objective criteria, that application of the requirement would result 
in unnecessary hardship or otherwise be inconsistent with the purposes 
of this title. 
" T E C H N I C A L ASSISTANCE AND TRAINING 
42 u s e 2991c. 
"SEC. 804. The Secretary may provide, directly or through other 
arrangements, (1) technical assistance to public and private agencies 
in developing, conducting, and administering projects under this title, 
and (2) short-term in-service training for specialized or other per-
sonnel which is needed in connection with projects receiving financial 
assistance under this title. 
"RESEARCH, DEMONSTRATION, AND PILOT PROJECTS 
42 use 299id. 
«SEC. 805. (a) The Secretary may provide financial assistance 
through grants or contracts for research, demonstration, or pilot proj-
88 STAT. ] 
PUBLIC LAW 93-644-JAN. 4, 1975 
2325 
ects conducted by public or private agencies which are designed to test 
or assist in the development of new approaches or methods that will aid 
in overcoming special problems or otherwise furthering the purposes 
of this title. 
"(b) The Secretary shall establish an overall plan to govern the 
approval of research, demonstration, and pilot projects and the use 
of all research authority under this title. The plan shall set forth 
specific objectives to be achieved and priorities among such objectives. 
" A N N O U N C E M E N T 
o r 
R E S E A R C H , 
D E M O N S T R A T I O N , 
OR riLOT 
PROJECTS 
"SEC. 806. (a) The Secretary shall make a public announcement 
"
^
^ use 299ie. 
concerning— 
"(1) the title, purpose, intended completion date, identity of 
the grantee or contractor, and proposed cost of any grant or 
contract with a private or non-Federal public agency for a 
research, demonstration, or pilot project; and 
"(2) except in cases in which the Secretary determines that 
it would not be consistent with the purposes of this title, the 
results, findings, data, or recommendations made or reported as 
a result of such activities. 
"(b) The public announcements required by subsection (a) shall 
be made within thirty days of making such grants or contracts, and 
the public announcements inquired by subsection (b) of this section 
shall be made within thirty days of the receipt of such results. 
a SUBMISSION OF PLANS TO STATE AND LOCAL OFFICIALS 
"SEC. 807. (a) No financial assistance may be provided to any 
'^^ use 29911. 
project under section 803 of this title or any research, demonstration, 
or pilot project under section 805 of this title, which is to be carried 
out on or in an Indian reservation or Alaskan Native village, unless 
a plan setting forth the project has been submitted to the governing 
body of that reservation or village and the plan has not been dis-
approved by the governing body within thirty days of its submission. 
"(b) No financial assistance may be provided to any project under 
section 803 of this title or any research, demonstration, or pilot project 
under section 805 of this title, which is to be carried out in a State 
other than on or in an Indian reservation or Alaskan Native village 
or Hawaiian Homestead, unless the Secretary has notified the chief 
executive officer of the State of his decision to provide that assistance. 
"(c) No financial assistance may be provided to any project under 
section 803 of this title or any research, demonstration, or pilot 
project under section 805 of this title, which is to be carried out in a 
city, county, or other major political subdivision of a State, other 
than on or in an Indian reservation or Alaskan Native village, or 
Hawaiian Homestead, unless the Secretary has notified the local gov-
erning officials of the political subdivision of his decision to provide 
that assistance. 
"RECORDS AND AUDITS 
"SEC. 808. (a) Each agency which receives financial assistance 
'
*
^ ^^^ 2991;; 
under this title shall keep such records as the Secretary may prescribe, 
including records which fully disclose the amount and disposition by 
that agency of such financial assistance, the total cost of the project 
in connection with which such financial assistance is given or used, 
the amount of that portion of the cost of the project supplied by other 
2326 
PUBLIC LAW 93-644-JAN. 4, 1975 
[88 STAT. 
sources, and such other records as will facilitate an effective audit. 
"(b) The Secretarj^ and the Comptroller General of the United 
States, or any of their duly authorized representatives, shall have 
access for the purpose of audit and examination to any books, docu-
ments, papers, and records of any agency which receives financial 
assistance under this title that are pertinent to the financial assistance 
received under this title. 
42 use 2991h. 
42 use 2992. 
Studies and 
summaries, sub' 
mittal to congres 
tees 
"APPEALS, NOTICE, AND HEARING 
"SEC. 809. The Secretary shall prescribe procedures to assure that— 
"(1) financial assistance under this title shall not be suspended, 
except in emergency situations, unless the assisted agency has 
been given reasonable notice and opportunity to show cause why 
such action should not be taken; and 
"(2) financial assistance under this title shall not be termi-
nated, and application for refunding shall not be denied, and a 
suspension of financial assistance shall not be continued for longer 
than thirty days, unless the assisted agency has been afforded 
reasonable notice and opportunity for a full and fair hearing. 
u 
EVALUATION 
"SEC. 810. (a) The Secretary shall provide, directly or through 
grants or contracts, for the evaluation of projects assisted under this 
title, including evaluations that describe and measure the impact of 
such projects, their effectiveness in achieving stated goals, their impact 
on related programs, and their structure and mechanisms for delivery 
of services, including, where appropriate, comparisons with appropri-
ate control groups composed of persons who have not participated in 
such projects. Evaluations shall be conducted by persons not directly 
involved in the administration of the program or project evaluated. 
"(b) Prior to obligating funds for the programs and projects 
covered by this title with respect to fiscal year 1976, the Secretary 
shall develop and publish general standards for evaluation of program 
and project effectiveness in achieving the objectives of this title. The 
extent to which such standards have been met shall be considered in 
deciding whether to renew or supplement 
financial 
assistance 
authorized under this title. 
"(c) In carrying out evaluations under this title, the Secretary 
may require agencies which receive assistance under this title to 
provide for independent evaluations. 
"(d) In carrying out evaluations under this title, the Secretary 
shall, whenever feasible, arrange to obtain the specific views of persons 
participating in and served by programs and projects assisted under 
this title about such programs and projects. 
"(e) The Secretary shall publish the results of evaluative research 
and summaries of evaluations of program and project impact and 
effectiveness not later than ninety days after the completion thereof. 
The Secretary shall submit to the appropriate committees of the Con-
^ 
gress copies of all such research studies and evaluation summaries. 
sionai commi't. 
"("f) The Secretary shall take the nccessarv actiou to assuTC that all 
studies, evaluations, proposals, and data produced or developed with 
assistance under this title shall become the property of the United 
States. 
88 STAT. ] 
PUBLIC LAW 93-644-JAN. 4, 1975 
2327 
u 
4 0 
note. use 276a 
5 u s e app. 
42 
42 
use 
use 
276c. 
2992b, 
LABOR STANDARDS 
"SEC. 811. All laborers and mechanics employed by contractors or 
'^^ "^^ 2992a. 
subcontractors in the construction, alteration, or repair, including 
painting or decorating, of buildings or other facilities in connection 
with projects assisted under this title, shall be paid wages at rates not 
less than those prevailing on similar construction in the locality, as 
determined by the Secretary of Labor in accordance with the Davis-
Bacon Act. The Secretary of Labor shall have, with respect to such 
labor standards, the authority and functions set forth in Reorganiza-
tion Plan Numbered 14 of 1950, and section 2 of the Act of June 1, 
1934. 
"DELEGATION or 
AUTHORITY 
"SEC. 812. (a) The Secretary is authorized to delegate to the heads 
of other depaiiments and agencies of the Federal Government any of 
his functions, powers, and duties under this title, as he may deem 
appropriate, and to authorize the redelegation of such functions, pow-
ers, and duties by the heads of such departments and agencies. 
"(b) Departments and agencies of the Federal Government shall 
exercise their powers, duties, and functions in such manner as will 
assist in carrying out the objectives of this title. 
"(c) Funds appropriated for the purpose of carrying out this title 
may be transferred between departments and agencies of the Gov-
ernment, if such funds are used for the purposes for which they are 
authorized and appropriated. 
"SEC. 813. As used in this title, the term— _ 
^2 use 2992c. 
" (1) 'financial assistance' includes assistance advanced by grant, 
agreement, or contract, but does not include the procurement of 
plant or equipment, or goods or services; 
" (2) 'Indian reservation or Alaskan Native village' includes the 
reservation of any federally or State recognized Indian tribe, 
including any band, nation, pueblo, or rancheria, any former 
reservation in Oklahoma, any community under the jurisdiction 
of an Indian tribe, including a band, nation, pueblo, or rancheria, 
with allotted lands or lands subject to a restriction against aliena-
tion imposed by the United States or a State, and any lands of or 
under the jurisdiction of an Alaskan Native village or group, 
including any lands selected by Alaskan Natives or Alaskan 
Native organizations under the Alaska Native Claims Settlement 
Act: 
"(3) 'Native Hawaiian' means any individual any of whose 
ancestors were natives of the area which consists of the Hawaiian 
Islands prior to 1778. 
(( 
AUTHORIZATION OF APPROPRIATIONS 
"SEC. 814. There are authorized to be appropriated for the purpose 
of carrying out the provisions of this title, such sums as may be neces-
sary for fiscal years 1975 through 1977." 
42 u s e 2992d. 
EVAIiUATION 
SEC. 12. Title I X of the Economic Opportunity Act of 1964 is 
amended to read as follows: 
2328 
PUBLIC LAW 93-644-JAN. 4, 1975 
[88 STAT. 
"TITLE IX—EVALUATION 
42 u s e 2995. 
Ante, 
p. 2294. 
Ante, 
p. 2292. 
Report to con-
gressional com-
mittees. 
42 u s e 2948. 
Studies and 
summaries, sub-
mittal to congres-
sional commit-
tees. 
PROGRAM AND PROJECT EVALUATION 
"SEC. 901. (a) (1) The Director shall, directly or through grants or 
contracts, measure and evaluate the impact of all programs authorized 
by this Act and of poverty-related programs authorized by other Acts, 
in order to determine their effectiveness in achieving stated goals, 
their impact on related programs, and their structure and mechanisms 
for delivery of services, including where appropriate, comparisons 
with appropriate control groups composed of persons who have not 
participated in such programs. Evaluations shall be conducted by per-
sons not directly involved in the administration of the program or 
project evaluated. 
"(2) In carrying out his responsibilities under this section, the 
Director, in the case of research, demonstrations, and related activities 
carried out under title I of this Act, shall, after taking into considera-
tion the views of State agencies and community action agencies des-
ignated pursuant to section 210 of this Act, on an annual basis— 
"(A) reassess priorities to which such activities should be 
directed; and 
"(B) review present research, demonstration, and related activ-
ities to determine, in terms of the purpose specified for such 
activities in section 102(a) of this Act, whether and on what basis 
such activities should be continued, revised, or terminated. 
"(3) The Director shall, within 12 months after the date of enact-
ment of this Act, and on each April 1 thereafter, prepare and furnish 
to the appropriate committees of the Congress a complete report on 
the determination and review carried out under paragraph (2) of 
this subsection, together with such recommendations, including any 
recommendations for additional legislation, as he deems appropriate. 
"(b) Prior to obligating funds for the programs and projects 
covered by this Act with respect to fiscal year 1976, the Director shall 
develop and publisli general standards for evaluation of program 
and project effectiveness in achieving the objectives of this Act. The 
extent to which such standards have been met shall be considered in 
deciding whether to renew or supplement financial assistance author-
ized under any section of this Act. Keports submitted pursuant to sec-
tion 608 of this Act shall describe the actions taken as a result of these 
evaluations. 
"(c) In carrying out evaluations under this title, the Director shall, 
whenever feasible, arrange to obtain the specific views of persons 
participating in and served by programs and projects assisted under 
this Act about such programs and projects, and shall consult, when 
appropriate, with State agencies and community action agencies 
designated pursuant to section 210, in order to provide for jointly 
sponsored objective evaluation studies on a State or areawide basis. 
"(d) The Director shall publish the results of evaluative research 
and summaries of evaluations of program and project impact and 
effectiveness not later than ninety days after the completion thereof. 
The Director shall submit to the appropriate committees of the Con-
gress copies of all such research studies and evaluation summaries. 
"(e) The Director shall take the necessary action to assure that all 
studies, evaluations, proposals, and data produced or developed with 
assistance under this Act shall become the property of the United 
States. 
88 STAT. ] 
PUBLIC LAW 93-644-JAN. 4, 1975 
2329 
li COOPERATION OF AND CONSULTATION W I T H OTHER FEDERAL AGENCIES 
42 u s e 2995a. 
" S E C 902. (a) Such information and cooperation as the Director 
may deem necessary for purposes of the evaluations conducted under 
this title shall be made available to him, upon request, by the agencies 
of the executive branch. 
"(b) In carrying out evaluations under this title, the Director shall 
consult with the heads of other Federal agencies carrying out activities 
related to the subject matter of those evaluations. 
'' VALUATION BY OTHER ADMINISTERING 
AGENCIES 
" S E C 903. The head of any agency administering a program author- 
42 use 2995b. 
ized under this Act may, with respect to such program, conduct evalu-
ations and take other actions authorized under this title to the same 
extent and in the same manner as the Director under this part. Nothing 
in this section shall preclude the Director from conducting such evalu-
ations or taking such actions otherwise authorized under this title 
with respect to such programs." 
CONGRESSIONAL REVIEW 
SEC. 13. (a) The Senate Committee on Labor and Public Welfare J,l^^^ 
^^^^ 
and the House Committee on Education and Labor shall conduct joint 
study which shall include— 
(1) a consideration of an appropriate administrative agency 
for the conduct of programs after July 1, 1975, under title VII 
of the Economic Opportunity Act, 
^"^^' P- 2315. 
(2) review the extent to which programs and activities con-
ducted under title VII of the Economic Opportunity Act meet the 
overall need in the Nation for community economic development 
programs and the resources available from public and private 
funds in meeting those needs, and 
(3) the extent to which there is maximum utilization of the 
resources of all Federal agencies having responsibilities under 
title VII of the Economic Opportunity Act, and other public and 
private agencies and organizations. 
(b) The Senate Committee on Labor and Public Welfare and the 
Report. 
House Committee on Education and Labor shall submit such reports 
as they deem appropriate on their findings, together with any recom-
mendations for further legislation, not later than one year after enact-
ment of this title. 
EXTENSION o r PROGRAM AUTHORITY 
SEC 14. (a) Sections 245,321, and 615 of the Economic Opportunity 
Act of 1964, are each amended by striking out "eight succeeding fiscal ^2 use 2837, 
years" and inserting in lieu thereof "eleven succeeding fiscal years", ^svi, 2 965. 
(b) Section 523 of such Act (redesignated as section 583 by section 
'•^ use 2933. 
3(c) of this Act) is amended by striking out "seven succeeding fiscal 
years" and inserting in lieu thereof "ten succeeding fiscal years". 
AUTHORIZATION OF APPROPRIATIONS 
42 u s e 2707. 
SEC 15. (a) (1) For the purpose of carrying out title I, title IT, 
title III, title IV, title V, title VI, title VII, title VIII, and title I X 
of the Economic Opportunity Act of 1964, there are authorized to be 
42" use"284^1^* 
Ante, 
pp. 2298-
2328. 
2330 
PUBLIC LAW 93-645-JAN. 4, 1975 
[88 STAT. 
42 use 2808. 
42 use 2701 
note. 
appropriated such sums as may be necessary for each, of the fiscal 
years 1975 through 1977. 
(2) For the purpose of carrying out the programs authorized under 
section 221 there is authorized to be appropriated $330,000,000 for 
the fiscal year 1975 and such sums as may be necessary for each of 
the two succeeding fiscal years. 
(b) Unless the Congress has passed or formally rejected legislation 
extending the authorizations of appropriations for carrying out any 
title of the Economic Opportunity Act of 1964 specified in subsection 
(a) of this section, or adopts a concurrent resolution providing that 
the provisions of this subsection shall not apply, the authorizations of 
appropriations specified in subsection (a) are hereby automatically 
extended for one additional fiscal year beyond the terminal year 
specified in the Economic Opportunity Act of 1964 or in this section. 
REPEAI/ER 
42 use 2705. 
42 use 2703. 
SEC. 16. (a) Section 115 of the Economic Opportujiity Amend-
ments of 1969 IS repealed. 
(b) Section 301 of the Economic Opportunity Amendments of 1967 
is repealed. 
Approved January 4, 1975. 
January 4, 1975 
[H. R.14689] 
Public Law 93-645 
AN ACT 
To provide for a plan for the preservation, interpretation, development, and use 
of the historic, cultural, and architectural resources of the Lowell Historic 
Ganal District in Lowell, Massachusetts, and for other purposes. 
Lowell Historic 
Canal District 
eommission. 
Establishment. 
16 use 461 
note. 
Membership. 
16 use 461 
note. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That for the purpose 
of preserving and interpreting for the educational and inspirational 
benefit of present and future generations the unique and significant 
contribution to our national heritage of certain historic and cultural 
lands, waterways, and edifices in the city of Lowell, Massachusetts 
(the cradle of the industrial revolution in America as well as America's 
first planned industrial city) with emphasis on harnessing this unique 
urban environment for its educational value as well as for recreation, 
there is hereby established the Lowell Historic Canal District Com-
mission (hereinafter referred to as the "Commission"), the purpose of 
which shall be to prepare a plan for the preservation, interpretation, 
development, and use, by public and private entities, of the historic, 
cultural, and architectural resources of the Lowell Historic Canal Dis-
trict in the city of Lowell, Massachusetts. 
SEC. 2. (a) The Commission shall consist of nine members, as 
follows: 
(1) the Secretary of the Interior, the Secretary of Housing 
and Urban Development, the Secretary of Transportation, and 
the Secretary of Commerce, all ex officio; and