An Act to authorize assistance to public and other nonprofit institutions of higher education in financing the construction, rehabilitation, or improvement of needed academic and related facilities in undergraduate and graduate institutions
PL 88-204 (H.R.6143), enacted 12/16/1963

77 STAT. ] 
PUBLIC LAW 88-204-DEC. 16, 1963 
363 
the return post office receipt or telegraph receipt therefor when regis-
tered and mailed or telegraphed as aforesaid shall be proof of service of 
the same. Witnesses summoned before the Commission, its members, 
agent, or agency, shall be paid the same fees and mileage that are 
paid witnesses in the courts of the United States, and witnesses whose 
depositions are taken and the persons taking the same shall severally 
be entitled to the same fees as are paid for like services in the courts 
of the United States. 
(e) No person shall be excused from attending and testifying or 
Privilege 
from producing books, records, correspondence, documents, or other fnctim^nlum 
evidence in obedience to a subpena, on the ground that the testimony 
or evidence required of him mav tend to incriminate him or subject 
him to a penalty or forfeiture; but no individual shall be prosecuted 
or subjected to any penalty or forfeiture (except demotion or removal 
from office) for or on account of any transaction, matter, or thing con-
cerning which he is compelled, after having claimed his privilege 
against self-incrimination, to testify or produce evidence, except that 
such individual so testifying shall not be exempt from prosecution and 
pimishment for perjury committed hi so testifying. 
(f) All process of any court to which application may be made under 
piace of 
this Act may be served in the judicial district wherein the person service. 
required to be served resides or may lie found. 
Approved December 13, 1963. 
Public Law 88-203 
A N A C T 
December 13, 1963 
To amend title V of the Agricultural Act of 1
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purposes. 
Be It enacted hy the Senate atul House of Representatives 
of the 
United States of America in Congress assembled^ Tliat section 510 
Mexican farm 
of the Agricultural Act of 1949, as amended, is amended by striking labor program. 
••December 31, 1963" and inserting "Deceml)er 31, 1964". 
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Approved December 13, 1963. 
7usc neiinote. 
Public Law 88-204 
AN ACT 
To authorize assistance to public and other nonprofit institutions of higher 
education in financing the construction, rehabilitation, or improvement of 
needed academic and related facilities in undergraduate and graduate insti-
tutions. 
December 16, 1963 
[H. R. 6143] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That this Act may 
be cited as the "Higher Education Facilities Act of 1963". 
Higher Educa-
tion Facilities 
Act of 1963. 
FINDINGS AND DECLARATION OF POLICY 
SEC. 2. The Congress hereby finds that the security and welfare 
of the United States require that this and future generations of 
American youth be assured ample opportunity for the fullest develop-
364 
PUBLIC L
A
W 88-204-DEC. 16, 1963 
[77 STAT. 
merit of their intellectual capacities, and that this opportunity will 
be jeopardized unless the Nation's colleges and universities are 
encouraged and assisted in their efforts to accommodate rapidly grow-
ing numbers of youth who aspire to a higher education. The Con-
gress further finds and declares that these n^eds are so great and these 
steps so urgent that it is incumbent upon the Nation to take positive 
and immediate action to meet these needs through assistance to institu-
tions of higher education, including graduate and undergraduate 
institutions, junior and community colleges, and technical institutes, in 
providing certain academic facilities. 
TITLE I—GRANTS FOR CONSTRUCTION OF UNDER-
GRADUATE ACADEMIC FACILITIES 
APPROPRIATIONS AUTHORIZED 
SEC. 101. (a) The Commissioner of Education (hereinafter in this 
Act referred to as the "Commissioner") shall carry out during the 
fiscal year ending June 30, 1964, and each of the four succeeding 
fiscal years, a program of grants to institutions of higher education 
for the construction of academic facilities in accordance wdth this 
title. 
(b) For the purpose of making grants under this title, there is 
hereby authorized to be appropriated the sum of $230,000,000 for the 
fiscal year ending June 30,1964, and each of the two succeeding fiscal 
years; but for the fiscal year ending June 30,1967, and the succeeding 
fiscal vear, only such sums may be appropriated as the Congress may 
hereafter authorize by law. In addition to the sums authorized to be 
appropriated under the preceding sentence, there is hereby authorized 
to be appropriated for the fiscal year ending June 30, 1965, and the 
succeeding fiscal year, for making siuch grajits the difference (if any) 
between the sums authorized to be appropriated under the preceding 
sentence for preceding fiscal years and the aggregate of the sums 
which were appropriated for such preceding years under such 
sentence. 
(c) Sums appropriated pursuant to subsection (b) of this section 
shall remain available for reservation as provided in section 109 until 
the close of the fiscal year next succeeding the fiscal year for which 
they were appropriated. 
ALLOTMENTS 
SEC. 102. Of the funds appropriated pursuant to section 101 for any 
fiscal year, 22 per centum shall be allotted among the States in the 
manner prescribed by section 103 for use in providing academic facili-
ties for public community colleges and public technical institutes. 
The remainder of the funds so appropriated shall be allotted among 
the States in the manner as prescribed in section 104 for use in provid-
ing academic facilities for institutions of higher education other than 
public community colleges and public technical institutes. 
77 STAT. ] 
PUBLIC LAW 88-204-DEC. 16, 1963 
365 
ALLOTMENTS TO STATES EOR PUBLIC COMMUNITY COLLEGES AND PUBLIC 
TECHNICAL INSTITUTES 
SEC. 103. (a) The funds to be allotted for any fiscal year for use in 
providing academic facilities for public community colleges and pub-
lic technical institutes shall be allotted among the States on the basis 
of the income per person and the number of high school graduates of 
the respective States. 
Such allotments shall be made as follows: 
The Commissioner shall allot to each State for each fiscal year an 
amount which bears the same ratio to the funds being allotted as the 
product of— 
(1) the number of high school graduates of the State, and 
(2) the State's allotment ratio (as determined under subsection 
(d)) 
bears to the sum of the corresponding products for all the States. 
(b) The amount of each allotment to a State under this section shall 
be available, in accordance with the provisions of this title, for pay-
ment of the Federal share (as determined under sections 108(b) (3) 
and 401 (d)) of the development cost of approved projects for the con-
struction of academic facilities within such State for public com-
munity colleges and public technical institutes. 
Sums allotted to a 
State for the fiscal year ending June 30, 1964, shall remain available 
for reservation as provided in section 109 until the close of the next 
fiscal year, in addition to the sums allotted to such State for such next 
fiscal year. 
(c) All amounts allotted under this section for the fiscal year end-
ing June 30, 1965, and the succeeding fiscal year, which are not 
reserved as provided in section 109 by the close of the fiscal year for 
which they are allotted, shall be reallotted by the Commissioner, on 
the basis of such factors as he determines to be equitable and reason-
able, among the States which, as determined by the Commissioner, are 
able to use without delay any amounts so reallotted for providing 
academic facilities for public community colleges or public technical 
institutes. Amounts reallotted imder this subsection shall be avail-
able for reservation until the close of the fiscal year next succeeding 
the fiscal year for which they were originally allotted. 
(d) For purposes of this section— 
(1) The "allotment ratio" for any State shall be 1.00 less the 
product of (A) .50 and (B) the quotient obtained by dividing the 
income per person for the State by the income per person for all 
the States (not including Puerto Rico, the Virgin Islands, Ameri-
can Samoa, and Guam), except that (i) the allotment ratio shall 
in no case be less than .33l^ or more than .66%, (ii) the allotment 
ratio for Puerto Rico, the Virgin Islands, American Samoa, and 
Guam shall be .66%, and (iii) the allotment ratio of any State 
shall be .50 for any fiscal year if the Commissioner finds that the 
cost of school construction in such State exceeds twice the median 
of such costs in all the States as determined by him on the basis 
of an index of the average per pupil cost of constructing minimum 
366 
PUBLIC LAW 88-204-DEC. 16, 1963 
[77 STAT. 
school facilities in the States as determined for such fiscal year 
under section 15 (6) of the Act of September 23,1950, as amended 
72 Stat. 557. 
(20 U.S.C. 645), or, in the Commissioner's discretion, on the basis 
of such index and such other statistics and data as the Commis-
sioner shall deem adequate and appropriate; and 
(2) The allotment ratios shall be promulgated by the Commis-
sioner as soon as possible after enactment of this Act, and annually 
thereafter, on the basis of the average of the incomes per person 
of the States and of all the States for the three most recent con-
secutive calendar years for which satisfactory data are available 
from the Department of Commerce. 
(3) The term "high school graduate" means a person who has 
received formal recognition (by diploma, certificate, or similar 
means) from an approved school for successful completion of 
four years of education beyond the first eight years of school-
work, or for demonstration of equivalent achievement. 
For the 
purposes of this section the number of hi^h school graduates shall 
be limited to the number who graduated m the most recent school 
year for which satisfactory data are available from the Depart-
ment of Health, Education, and Welfare. 
The interpretation 
of the definition of "high school graduate" shall fall within the 
authority of the Commissioner. 
ALLOTMENTS TO STATES FOR INSTTTDTTONS OF HIGHER EDUCATION OTHER 
THAN PUBLIC COMMUNITY COLLEGES AND PUBLIC TECHNICAL 
IN-
STITUTES 
SEC. 104. (a) Of the funds to be allotted for any fiscal year for use 
in providin,g academic facilities for institutions of higher education 
other than public community colleges and public technical institutes 
(1) one-half shall be allotted by the Commissioner among the States 
so that the allotment to each State under this clause will be an amount 
which bears the same ratio to such one-half as the number of students 
enrolled in institutions of higher eduction in such State bears to the 
total number of students enrolled in such institutions in all the States; 
and (2) the remaining one-half shall be allotted by him among the 
States so that the allotment to each State under this clause will be 
an amount which bears the same ratio to such remainder as the 
number of students enrolled in grades nine to twelve (both inclusive) 
of schools in such State bears to the total number of students in such 
grades in schools in all the States. For the purposes of this sub-
section, (A) the number of students enrolled in institutions of higher 
education shall be deemed to be equal to the sum of (i) the number of 
full-time students and (ii) the full-time equivalent of the number of 
part-time students as determined by the Commissioner in accordance 
with regulations; and (B) determinations as to enrollment under 
either clause (1) or clause (2) of this subsection shall be made by 
the Commissioner on the basis of data for the most recent year for 
which satisfactory data with respect to such enrollment are available 
to him. 
(b) The amount of each allotment to a State under this section shall 
be available, in accordance with the provisions of this title, for pay-
ment of the Federal share (as determined under sections 108(b) (3) 
and 401(d)) of the development cost of approved projects for the 
construction of academic facilities within such State for institutions 
of higher ed|ucation other than public community colleges and public 
technical in^itutes. Sums allotted to a State for the fiscal year end-
ing June 30, 1964p shall remain available for reservation as provided 
in section 109 imtil the close of the next fiscal year, in addition to the 
sums allotted to such State for such next fiscal year. 
77 STAT. ] 
PUBLIC LAW 88-204-DEC. 16, 1963 
367 
(c) All amounts allotted under this section for the fiscal year ending 
June 30, 1965, and the succeeding fiscal year, which are not ressrved 
as provided in section 109 by the close of the fiscal year for which they 
are allotted, shall be reallotted by the Commissioner, on the basis of 
such factors as he determines to be equitable and reasonable, among 
the States which, as determined by the Commissioner, are able to use 
without delay any amounts so reallotted for providing academic facil-
ities for institutions of higher education other than public community 
colleges and public technical institutes. 
Amounts reallotted under 
this subsection shall be available for reservation until the close of the 
fiscal year next succeeding the fiscal year for which they were 
originally allotted. 
STATE COMMISSIONS AND PLANS 
SEC. 105. (a) Any State desiring to participate in the grant j)ro-
gram under this title shall designate for that purpose an existing 
State agency which is broadly representative of the public and of 
institutions of higher education (including junior colleges and tech-
nical institutes) in the State, or, if no such State agency exists, shall 
establish such a State agency, and submit to the Commissioner through 
the agency so designated or established (hereinafter in this title 
referred to as the "State commission"), a State plan for such partici-
pation. The Commissioner shall approve any such plan which— 
(1) provides that it shall be administered by the State com-
mission ; 
(2) sets forth, consistently with basic criteria prescribed by 
regulation pursuant to section 107, objective standards and 
methods (A) for determining the relative priorities of eligible 
projects for the construction of academic facilities submitted by 
institutions of higher education within the State, and (B) for 
determining the Federal share of the development cost of each 
such project other than a project for a public community college 
or public technical institute (unless such plan provides for a 
uniform Federal share for all such projects); 
(3) provides that the funds allotted (or reallotted) for any 
year under section 103 will be available only for use for the con-
struction of academic facilities for public community colleges and 
public technical institutes, and that funds allotted (or reallotted) 
for any year to the State under section 104 will be availnble only 
for use for the construction of academic facilities for institutions 
of higher education other than public community colleges and 
public technical institutes; 
(4) provides (A) for assigning priorities solely on the basis of 
such criteria, standards, and methods to eligible projects sub-
mitted to the State commission and deemed by it to be otherwise 
approvable under the provisions of this title; and (B) for ap-
proving and recommending to the Commissioner, in the order 
of such priority, applications covering such eligible projects, and 
for certifying to the Commissioner the Federal share, determined 
by the State commission under the State plan, of the development 
cost of the project involved; 
(5) provides for affording to every applicant, which has sub-
mitted to the State commission a project, an opportunity for a 
fair hearing before the State commission as to the priority 
assigned to such project or as to any other determination of the 
State commission adversely affecting such applicant; and 
(6) provides (A) for such fiscal control and fund accounting 
procedures as may be necessary to assure proper disbursement of 
368 
PUBLIC LAW 88-204-DEC. 16, 1963 
[77 STAT. 
and accounting for Federal funds paid to the State commission 
under this title, and (B) for the making of such reports, in such 
form and containing such information, as may be reasonably neces-
sary to enable the Commissioner to perform his functions under 
this title, 
(b) The Commissioner is authorized to expend not exceeding 
$3,000,000 during each of the first two fiscal years of the program under 
this title in such amounts as he may consider necessary for the proper 
and eflS.cient administration of the State plans approved under this 
title, including expenses which he determines were necessary for the 
preparation of such plans. 
ELIGIBILITY FOR GRANTS 
SEC. 106. An institution of higher education shall be eligible for a 
grant for construction of an academic facility under this title (1) in 
the case of an institution of higher education other than a public com-
munity college or public technical institute, only if such construction 
is limited to structures, or portions thereof, especially designed for in-
struction or research in the natural or physical sciences, mathematics, 
modern foreign languages, or engineering, or for use as a library, and 
(2) only if such construction will, either alone or together with other 
construction to be undertaken within a reasonable time, (A) result 
in an urgently needed substantial expansion of the institution's student 
enrollment capacity, or (B) in the case of a new institution of higher 
education, result in creating urgently needed enrollment capacity. 
BASIC CRITERIA FOR DETERMINING PRIORITIES AND FEDERAL SHARE 
SEC. 107. (a) As soon as practicable after the enactment of this Act 
the Commissioner shall by regulation prescribe basic criteria to which 
the provisions of State plans setting forth standards and methods for 
determining relative priorities of eligible construction projects, and 
the application of such standards and methods to such projects under 
such plans, shall be subject. Such basic criteria (1) shall be such as 
will best tend to achieve the objectives of this title while leaving oppor-
tunity and flexibility for the development of State plan standards and 
methods that will beSt accommodate the varied needs of institutions in 
the several States, and (2) shall give special consideration to expan-
sion of undergraduate enrollment capacity. Subject to the foregoing 
requirements, such regulations may establish additional and appropri-
ate basic criteria, including provision for considering the degree to 
which applicant institutions are ejffectively utilizing existing facilities, 
provision for allowing State plans to group or provide for grouping, in 
a reasonable manner, facilities or institutions according to functional 
or educational type for priority purposes, and, in view of the national 
objectives of this Act, provision for considering the degree to which 
the institution serves students from two or more States or from outside 
the United States,; and in no event shall an institution's readiness to 
admit such out-of-State students be considered as a priority factor 
adverse to such institution. 
(b) The Commissioner shall further prescribe by regulation the 
basic criteria for determining the Federal share of the development 
cost of any eligible project under this title within a State other than a 
project for a public community college or public technical institute, 
to which criteria the applicable standards and methods set forth in 
the State plan for such State shall conform in the absence of a uni-
form statewide Federal share specified in or pursuant to such plan. 
5 u s e 1003. 
77 STAT. ] 
PUBLIC LAW 88-204-DEC. 16, 1963 
369 
In the case of a project for an institution of higher education other 
than a public community college or public technical institute, the Fed-
eral share shall in no event exceed 33l^ per centum of its development 
cost; and in the case of a project for a public community college or 
public technical institute, the Federal share shall be 40 per centum of 
its development cost. 
(c) Section 4 of the Administrative Procedure Act shall apply to the 
eo st^t.j23^8. 
prescription of regulations under this section, notwithstanding the 
provisions of clause (2) thereof. 
APPLICATIONS FOR GRANTS AND CONDITIONS FOR APPROVAL 
SEC. 108. (a) Institutions of higher education which desire to obtain 
grants under this title shall submit applications therefor at such time 
or times and in such manner as may be prescribed by the Commissioner, 
and such applications shall contain such information as may be re-
quired by or pursuant to regulation for the purpose of enabling the 
Commissioner to make the determinations required to be made by him 
under this title. 
(b) The Commissioner shall approve an application covering a 
project for construction of an academic facility and meeting the 
requirements prescribed pursuant to subsection (a) if— 
(1) the project is an eligible project as determined under section 
106; 
(2) the project has been approved and recommended by the 
appropriate State commission; 
(3) the State commission has certified to the Commissioner, in 
accordance with the State plan, the Federal share of the develop-
ment cost of the project, and sufficient funds to pay such Federal 
share are available from the applicable allotment of the State 
(including any applicable reallotment to the State); 
(4) the project has, pursuant to the State plan, been assigned 
a priority that is higher than that of all other projects within such 
State (chargeable to the same allotment) which meet all the re-
quirements of this section (other than this clause) and for which 
Federal funds have not yet been reserved; 
(5) the Commissioner determines that the construction w^ill be 
undertaken in an economical manner and will not be of elaborate 
or extravagant design or materials; and 
(6) the Commissioner determines that (in addition to the 
assurance required by section 403 and such assurance as to title 
to the site as he may deem necessary) the application contains or is 
supported by satisfactory assurances— 
(A) that Federal funds received by the applicant will be 
used solely for defraying the development cost of the project 
covered by such application, 
(B) that sufficient funds will be available to meet the non-
Federal portion of such cost and to provide for the effective 
use of the academic facility upon completion, and 
(C) that the facility will be used as an academic facility 
during at least the period of the Federal interest therein (as 
defined in section 404). 
(c) Amendments of applications shall, except as the Commissioner 
may otherwise provide by or pursuant to regulation, be subject to 
approval in the same manner as original applications. 
93-025 0-64-26 
370 
PUBLIC LAW 88-204-DEC. 16, 1963 
[77 STAT. 
AMOUNT o r 
GRANT—PAYMENT 
SEC. 109. Upon his approval of any application for a grant under 
this title, the Commissioner shall reserve from the applicable allotment 
(including any applicable reallotment) available therefor, the amount 
of such grant, which (subject to the limits of such allotment or reallot-
ment) shall be equal to the Federal share (ascertained by him under 
section 108(b) (3)) of the development cost of the project covered by 
such application. The Commissioner shall pay such reserved amount, 
in advance or by way of reimbursement, and in such installments con-
sistent with construction progress, as he may determine. The Com-
missioner's reservation of any amount under this section may be 
amended by him, either upon approval of an amendment of the appli-
cation covering such project or upon revision of the estimated develop-
ment cost of a project with respect to which such reservation was made, 
and in the event of an upward revision of such estimated cost approved 
by him he may reserve the Federal share of the added cost only from 
the applicable allotment (or reallotment) available at the time of 
such approval. 
ADMINISTRATION 
OF STATE 
PLANS 
SEC. 110. (a) The Commissioner shall not finally disapprove any 
State plan submitted under this title, or any modification thereof, with-
out first affording the State commission submitting the plan reason-
able notice and opportunity for a hearing. 
(b) Whenever the Commissioner, after reasonable notice and oppor-
tunity for hearing to the State commission administering a State plan 
approved under this title, finds— 
(1) that the State plan has been so changed that it no longer 
complies with the provisions of section 105 (a), or 
(2) that in the administration of the plan there is a failure to 
comply substantially with any such provision, 
the Commissioner shall notify such State commission that the State 
will not be regarded as eligible to participate in the program under this 
title until he is satisfied that there is no longer any such failure to 
comply. 
JUDICIAL 
REVIEW 
SEC. 111. (a) If any State is dissatisfied with the Commissioner's 
final action with respect to the approval of its State plan submitted 
under section 105 (a) or with his final action under section 110(b), such 
State may appeal to the United States court of appeals for the circuit 
in which such State is located. The summons and notice of appeal may 
be served at any place in the United States. The Commissioner shall 
forthwith certify and file in the court the transcript of the proceedings 
and the record on which he based his action. 
(b) The findings of fact by the Commissioner, if supported by sub-
stantial evidence, shall be conclusive; but the court, for good cause 
shown, may remand the case to the Commissioner to take further evi-
dence, and the Commissioner may thereupon make new or modified 
findings of fact and may modify his previous action, and shall certify 
to the court the transcript and record of the further proceedings. Such 
new or modified findings of fact shall likewise be conclusive if sup-
ported by substantial evidence. 
(c) The court shall have jurisdiction to affirm the action of the 
Commissioner or to set it aside, in whole or in part. 
The judgment of 
the court shall be subject to review by the Supreme Court of the United 
States upon certiorari or certification as provided in title 28, United 
62 Stat. 928. 
States Code, section 1254. 
77 STAT. ] 
PUBLIC LAW 88-204-DEC. 16, 1963 
371 
TITLE II—GRANTS FOR CONSTRUCTION O F GRADUATE 
ACADEMIC FACILITIES 
APPROPRIATIONS 
AUTHORIZED 
SEC. 201. In order to increase the supply of highly qualified per-
sonnel critically needed by the community, industry, government, 
research, and teaching, the Commissioner shall, during the fiscal year 
ending June 30,1964, and each of the four succeeding fiscal years, make 
construction grants to assist institutions of higher education to im-
prove existing graduate schools and cooperative graduate centers, and 
to assist in the establishment of graduate schools and cooperative 
graduate centers of excellence. For the purpose of making grants 
imder this title, there is hereby authorized to be appropiated the sum 
of $25,000,000 for the fiscal year ending June 30,1964, and the sum of 
$60,000,000 each for the fiscal year ending June 30, 1965, and the 
succeeding fiscal year; but for the fiscal year ending June 30,1967, and 
the succeeding fiscal year, only such sums may be appropriated as the 
Congress may hereafter authorize by law. Sums so appropriated for 
the fiscal year ending June 30, 1964, shall remain available for grants 
under this title until the end of the next succeeding fiscal year. 
GRANTS 
-3" 
SEC. 202. (a) Grants under this title may be made to institutions 
of higher education and to cooperative graduate center boards to assist 
them to meet the development costs for projects for constiTiction of 
academic facilities for graduate schools and cooperative graduate 
centers. 
Such grants may be made only upon application therefor at 
such time or times, in such manner, and containing or accompanied by 
such information as the Commissioner finds necessary to determine 
eligibility for the grants and the amounts thereof. 
(b) Grants under this title for construction of academic facilities 
may not exceed 33i/^ per centum of the development cost of any such 
construction project. 
(c) (1) The Commissioner shall not approve any application for a 
grant under this title without the advice of the Advisory Committee 
established under section 203. 
(2) In determining whether to approve applications for grants 
under this title, the order in which to approve such applications, and 
the amount of the grants, the Commissioner shall give consideration 
to the extent to which such projects will contribute to achieving the 
objectives of this title and also the extent to which they will aid in 
attaining a wider distribution throughout the United States of gradu-
ate schools and cooperative graduate centers. 
(d) Notwithstanding the other provisions of this title the total 
of the payments from the appropriations for any fiscal year under this 
title made with respect to projects in any State may not exceed an 
amount equal to 1 2 ^ per centum of such appropriation. 
ADVISORY COMMITTEE 
SEC. 203. (a) There is hereby established in the Office of Education 
an Advisory Committee on Graduate Education, consisting of the 
Commissioner, who shall be Chairman; one representative from the 
Office of Science and Technology in the Executive Office of the Presi-
dent ; one from the National Science Foundation; and eight members 
appointed, without regard to the civil service laws, by the Commis-
sioner with the approval of the Secretary of Health, Education, and 
Welfare. 
Such appointed members shall be selected from leading 
75 Stat. 340. 
372 
PUBLIC LAW 88-204-DEC. 16, 1963 
[77 STAT. 
authorities in the field of education, at least three of whom shall be 
from the field of the humanities, with at least one of these three from 
a graduate school of education. 
(b) The Advisory Committee shall advise the Commissioner (1) 
on the action to be taken with regard to each application for a grant 
under this title, and (2) in the preparation of general regulations and 
with respect to policy matters arising in the administration of this 
title, including the development of criteria for approval of applica-
tions thereunder. 
The Advisory Committee may appoint such special 
advisory and technical experts and consultants as may be useful in 
carrying out its functions. 
(c) Members of the Advisory Committee and special advisory and 
technical experts and consultants appointed pursuant to subsection 
(b) shall, while serving on the business of the Advisory Committee, 
be entitled to receive compensation at rates fixed by the Secretary of 
Health, Education, and Welfare, but not exceeding $75 per day, 
including travel time; and, while so serving away from their homes 
or regular places of business, they may be allowed travel expenses, 
including per diem in lieu of subsistence, as authorized by section 5 
60^Stat. 808; 
of the Administrative Expenses Act of 1946 (5 U.S.C. 73b-2) for 
'"'^ " " 
persons in the Government service employed intermittently. 
TITLE III—LOANS FOR CONSTRUCTION OF ACADEMIC 
FACILITIES 
LENDING AUTHORITY 
SEC. 301. The Commissioner may, in accordance with the provi-
sions of this title, make loans to institutions of higher education or to 
higher education building agencies for construction of academic 
facilities. 
LOAN LIMIT FOR ANY STATE 
SEC. 302. Not more than 12i/^ per centum of the funds provided for 
in this title in the form of loans shall be used for loans to institutions 
of higher education or higher education building agencies within any 
one State. 
ELIGIBILITY CONDITIONS, AMOUNTS, AND TERMS OF LOANS 
SEC. 303. (a) No loan pursuant to this title shall be made unless 
the Commissioner finds (1) that not less than one-fourth of the 
development cost of the facility will be financed from non-Federal 
sources, (2) that the applicant is unable to secure the amount of such 
loan from other sources upon terms and conditions equally as favor-
able as the terms and conditions applicable to loans under this title, 
and (3) that the construction will oe undertaken in an economical 
manner and that it will not be of elaborate or extravagant design or 
materials. 
(b) A loan pursuant to this title shall be secured in such manner, 
and shall be repaid within such period not exceeding fifty years, as 
may be determmed by the Commissioner; and shall bear interest at 
a rate determined by the Commissioner which shall not be less than 
a per annum rate that is one-quarter of 1 percentage point above the 
average annual interest rate on all interest-bearing obligations of the 
United States forming a part of the public debt as computed at the 
end of the preceding fiscal year, adjusted to the nearest one-eighth 
of 1 per centum. 
(c) The Commissioner shall, during the fiscal year ending June 30, 
1964, and each of the four succeeding fiscal years, make loans to insti-
77 STAT. 1 
PUBUC LAW 88^204-DEC. 16, 1963 
373 
tutions of higher education for the construction of academic facilities 
in accordance with the provisions of this title. 
For the purpose of 
making loans under this title, there is hereby authorized to be appro-
priated the sum of $120,000,000 for the fiscal year ending June 30, 
1964, and each of the two succeeding fiscal years; but for the fiscal 
year ending June 30, 1967, and the succeeding fiscal year, only such 
sums may be appropriated as the (Congress may hereafter authorize 
by law. In addition to the sums authorized to be appropriated under 
the preceding sentence, there is hereby authorized to be appropriated 
for the fiscal year ending June 30,1965, and the succeeding fiscal year, 
for making such loans the difference (if any) between the sums 
authorized to be appropriated under the preceding sentence for pre-
ceding fiscal years and the aggregate of the sums which were appro-
priated for such preceding years under such sentence. 
GENERAL PROVISIONS FOR LOAN PROGRAM 
SEC. 304. (a) Such financial transactions of the Commissioner as 
the making of loans and vouchers approved by the Commissioner in 
connection with such financial transactions, except with respect to 
administrative expenses, shall be final and conclusive on all officers of 
the Government. 
(b) The Commissioner is authorized (1) to prescribe a schedule 
of fees which, in his judgment, would be adequate in the aggregate 
to cover necessary expenses of making inspections (including audits) 
and providing representatives at the site of projects in (connection 
with loans under this title, and (2) to condition the making of such 
loans on agreement by the applicant to pay such fees. 
For the pur-
pose of providing such services, the Commissioner may, as authorized 
by section 402(b), utilize any agency, and such agency may accept 
reimbursement or payment for such services from such applicant or 
from the Commissioner, and shall, if a Federal agency, credit such 
amounts to the appropriation or fund against which expenditures 
by such agency for such services have been charged. 
(c) In the performance of, and with respect to, the functions, pow-
ers, and duties vested in him by this title, the Commissioner may— 
(1) prescribe such rules and regulations as may be necessary to 
carry out the purposes of this title; 
(2) sue and be sued in any court of record of a State having 
general jurisdiction or in any district court of the United States, 
and such district courts shall have jurisdiction of civil actions 
arising under this title without regard to the amount in contro-
versy, and any action instituted under this subsection by or against 
the Commissioner shall survive notwithstanding any change in the 
person occupying the office of Commissioner or any vacancy in 
such office; but no attachment, injunction, garnishment, or other 
similar process, mesne or final, shall be issued against the Com-
missioner or property under his control, and nothing herein shall 
be construed to except litigation arising out of activities under 
this title from the application of sections 507(b) and 2679 of title 
28 of the United States Code and of section 367 of the Revised 
62 stat. 9io, 
Statutes (5 U.S.C. 316); 
^8^' ^^ stat 
(3) foreclose on any property or commence any action to pro-
tect or enforce any right conferred upon him by any law, contract, 
or other agreement, and bid for and purchase at any foreclosure 
or any other sale any propertjr in connection with which he has 
made a loan pursuant to this title; and, in the event of any such 
acquisition (and notwithstanding any other provisions of law 
relating to tne acquisition, handling, or disposal of real property 
539. 
374 
PUBLIC LAW 88-204-DEC. 16, 1963 
[77 STAT. 
by the United States), complete, administer, remodel and convert, 
dispose of, lease, and otherwise deal with, such property: Pro-
vided^ That any such acquisition of real property shall not deprive 
anj^ State or political subdivision thereof of its civil or criminal 
jurisdiction in and over such property or impair the civil rights 
under the State or local laws of the inhabitants on such property; 
(4) sell or exchange at public or private sale, or lease, real or 
personal property, and sell or exchange any securities or obliga-
tions, upon such terms as he may fix; 
(5) subject to the specific limitations in this title, consent to the 
modification, with respect to the rate of interest, time of payment 
of any installment of principal or interest, security, or any other 
term of any contract or agreement to which he is a party or which 
has been transferred to him pursuant to this section; and 
(6) include in any contract or instrument made pursuant to this 
title such other covenants, conditions, or provisions (including 
provisions designed to assure against use of the facility, con-
structed with the aid of a loan under this title, for purposes 
described in section 401(a)(2)) as he may deem necessary to 
assure that the purposes of this title will be achieved. 
TITLE IV—GENERAL PROVISIONS 
DEFINITIONS 
SEC. 401. As used in this Act— 
(a) (1) Except as provided in subparagraph (2) of this paragraph, 
the term "academic facilities" means structures suitable for use as 
classrooms, laboratories, libraries, and related facilities necessary or 
appropriate for instruction of students, or for research, or for adminis-
tation of the educational or research programs, of an institution of 
higher education, and maintenance, storage, or utility facilities essen-
tial to operation of the foregoing facilities. 
(2) The term "academic facilities" shall not include (A) any 
facility intended primarily for events for which admission is to be 
charged to the general public, or (B) any gymnasium or other facility 
specially designed for athletic or recreational activities, other than 
for an academic course in physical education or where the Commis-
sioner finds that the physical integration of such facilities with other 
academic facilities included under this Act is required to carry out 
the objectives of this Act, or (C) any facility used or to be used for 
sectarian instruction or as a place for religious worship, or (D) any 
facility which (although not a facility described in the preceding 
clause) is used or to be used primarily in connection with any part of 
the program of a school or department of divinity, or (E) any facility 
used or to be used by a "school of medicine", "school of dentistry", 
"school of osteopathy", "school of pharmacy", "school of optometry", 
"school of podiatry", "school of nursing", or "school o£ public health", 
Ante, p. 169. 
as defined in section 724 of the Public Health Service Act. 
For the 
purposes of this subparagraph, the term "school or departnient of 
divinity" means an institution, or a department or branch of an insti-
tution, whose program is specifically for the education of students to 
prepare them to become ministers of religion or to enter upon some 
other religious vocation or to prepare them to teach theological 
subjects. 
(b) (1) The term "construction" nieans (A) erection of new or 
expansion of existing structures, and the acquisition and installation 
of initial equipment therefor; or (B) acquisition of existing structures 
not owned by the institution involved; or (C) rehabilitation, altera-
77 STAT. ] 
PUBLIC LAW 88-204~DEC. 16, 1963 
375 
tion, conversion, or improvement (including the acquisition and 
installation of initial equipment, or modernization or replacement of 
built-in equipment) of existing structures; or (D) a combination of 
any two or more of the foregoing. 
(2) The term "equipment" includes, in addition to machinery, 
utilities, and built-in equipment and any necessary enclosures or 
structures to house them, all other items necessary for the functioning 
of a particular facility as an academic facility, including necessary 
furniture, except books, curricular and program materials, and items 
of current operating expense such as fuel, supplies, and the like; the 
term "initial equipment" means equipment acquired and installed in 
connection with construction as defined in paragraph (1) (A) or (B) 
of this subsection or, in cases referred to in paragraph (1) (C), equip-
ment acquired and installed as part of the rehabilitation, alteration, 
conversion, or improvement of an existing structure which structure 
would otherwise not be adequate for use as an academic facility; and 
the terms "equipment", "initial equipment", and "built-in equipment" 
shall be more particularly defined by the Commissioner by regulation. 
(c) The term "development cost", with respect to an academic 
facility, means the amount found by the Commissioner to be the cost, 
to the applicant for a grant or loan under this Act, of the construction 
involved and the cost of necessary acquisition of the land on which 
the facility is located and of necessary site improvements to permit its 
use for such facility, but excluding any cost incurred before, or under 
a contract entered into before, the enactment of this Act. There shall 
further be excluded from the development cost— 
(1) in determining the amount of any grant under title I or I I 
of this Act, an amount equal to the sum of (A) any Federal grant 
which the institution has obtained, or is assured of obtaining, 
under any law other than this Act, with respect to the construction 
that is to be financed with the aid of a grant under title I or I I 
of this Act, and (B) the amount of any non-Federal funds 
required to be expended as a condition of such other Federal 
grant; and 
(2) in determining the amount of any loan under title I I I of 
this Act, an amount equal to the amount of any Federal financial 
assistance which the institution has obtained, or is assured of 
obtaining, under any law other than this Act, with respect to the 
construction that is to be financed with the aid of a loan under 
title I I I of this Act; 
(d) The term "Federal share" means, in the case of a project for an 
institution of higher education other than a public commimity college 
or public technical institute, a percentage (as determined under the 
applicable State plan) not in excess of 33i/^ per centum of its develop-
ment cost; and such term means, in the case of a public community 
college or public technical institute, 40 per centum of its development 
cost. 
(e) The term "higher education building agency" means (1) an 
agency, public authority, or other instrumentality of a State author-
ized to provide, or finance the construction of, academic facilities for 
institutions of higher education (whether or not also authorized to 
provide or finance other facilities for such or other educational institu-
tions, or for their students or faculty), or (2) any corporation (no 
part of the net earnings of which inures or may lawfully inure to the 
benefit of any private shareholder or individual) (A) established by 
an institution of higher education for the sole purpose of providing 
academic facilities for the use of such institution, and (B) upon dis-
solution of which all title to any property purchased or built from the 
376 
PUBLIC LAW 88-204-DEC. 16, 1963 
[77 STAT. 
proceeds of any loan made under title I I I of this Act will pass to such 
institution. 
(f) The term "institution of higher education" means an educa-
tional institution in any State which— 
(1) admits as regular students only individuals having a cer-
tificate of graduation from a high school, or the recognized 
equivalent of such a certificate; 
(2) is legally authorized within such State to provide a pro-
gram of education beyond high school; 
(3) provides an educational program for which it awards a 
bachelor's degree, or provides not less than a two-year program 
which is acceptable for full credit toward such a degree, or offers a 
two-year program in engineering, mathematics, or the physical 
or biological sciences which is designed to prepare the student to 
work as a technician and at a semiprofessional level in engineer-
ing, scientific, or other technological fields which require the 
understanding and application of basic engineering, scientific, or 
mathematical principles or knowledge; 
(4) is a public or other nonprofit institution; and 
(6) is accredited by a nationally recognized accrediting agency 
or association listed by the Commissioner pursuant to this para-
graph or, if not so accredited, is an institution whose credits are 
accepted, on transfer, by not less than three institutions which 
are so accredited, for credit on the same basis as if transferred 
from an institution so accredited: Provided^ hoivever, That in the 
case of an institution offering a two-year program in engineering, 
mathematics, or the physical or biological sciences which is 
designed to prepare the student to work as a technician and at a 
semiprofessional level in engineering, scientific, or technological 
fields which require the understanding and application of basic 
engineering, scientific, or mathematical principles or knowledge, 
if the Commissioner determines there is no nationally recognized 
accrediting agency or association qualified to accredit such insti-
tutions, he shall, under section 402(c), appoint an advisory com-
mittee, composed of persons specially qualified to evaluate train-
ing provided by such institutions, which shall prescribe the stand-
ards of content, scope, and quality which must be met in order to 
qualify such institutions for assistance under this Act and shall 
also determine whether particular institutions meet such stand-
ards: Provided^ however^ That the requirements of this clause 
(5) shall be deemed to be satisfied in the case of an institution 
applying for assistance under this Act, if the Commissioner deter-
mines that there is satisfactory assurance that upon completion of 
the project for which such assistance is requested, or upon com-
pletion of that project and others under construction or planned 
and to be commenced within a reasonable time, the institution will 
meet such requirements; and for the purposes of this paragraph 
the Commissioner shall publish a list of nationally recognized 
accrediting agencies or associations which he determines to be 
reliable authority as to the quality of education or training 
offered. 
(^) The term "public community college and public technical 
institute" means an institution of higher education which is under 
public supervision and control and is organized and administered 
principally to provide a two-year program which is acceptable for 
full credit toward a bachelor's degree or a two-year program in 
engineering, mathematics, or the physical or biological sciences which 
is designed to prepare the student to work as a technician and at a 
semiprofessional level in engineering, scientific, or other technological 
77 STAT. ] 
PUBLIC LAW 88-204-DEC. 16, 1963 
377 
fields which require the understanding and application of basic engi-
neering, scientific, or mathematical principles or knowledge, and, if 
a branch of an institution of higher education offering four or more 
years of higher education, is located in a community different from 
that in which its parent institution is located. 
(h) The term "cooperative graduate center" means an institution or 
program created by two or more institutions of higher education which 
will offer to the students of the participating institutions of higher edu-
cation graduate work which could not be offered with the same profi-
ciency and/or economy at the individual institution of higher educa-
tion. The center may be located or the program carried out on the 
campus of any of the participating institutions or at a separate 
location, 
(i) The term "cooperative graduate center board" means a duly con-
stituted board established to construct and maintain the cooperative 
graduate center and coordinate academic programs. The board shall 
be composed of representatives of each of the higher education institu-
tions participating in the center and of the conmnunity involved. At 
least one-third of the board's members shall be community representa-
tives. The board shall elect by a majority vote a chairman from 
among its membership. 
(j) The term "high school" does not include any grade beyond 
grade 12. 
(k) The term "nonprofit educational institution" means an educa-
tional institution owned and operated by one or more corporations or 
associations no part of the net earnings of w^hich inures, or may law-
fully inure, to the benefit of any private shareholder or individual. 
(1) The term "public educational institution" does not include a 
school or institution of any agency of the United States. 
(m) The term "State" includes, in addition to the several States, the 
District of Columbia, the Commonwealth of Puerto Rico, the Virgin 
Islands, Guam, and American Samoa. 
FEDERAL ADMINISTRATION 
SEC. 402. (a) The Commissioner may delegate any of his functions 
under this Act, except the making oi regulations, to any officer or 
employee of the Office of Education. 
(b) In administering the provisions of this Act for which he is 
responsible, the Commissioner is authorized to utilize the services and 
facilities of any agency of the Federal Government and of any other 
public or nonprofit agency or institution in accordance with appro-
priate agreements, and to pay for such services either in advance or by 
way of reimbursement, as may be agreed upon. 
(c) The Commissioner, with the approval of the Secretary of 
Health, Education, and Welfare, may appoint one or more advisory 
committees to advise and consult with the Commissioner with respect 
to the administration of any of his functions under title I or I I I of 
this Act. Members of any such committee, while attending confer-
ences or meetings of the committee, shall be entitled to receive com-
pensation at a rate to be fixed by the Secretary of Health, Education, 
and Welfare, but not to exceed $75 per diem, and while away from 
their homes or regular places of business they may be allowed travel 
expenses, including per diem in lieu of subsistence, as authorized by 
law (5 U.S.C. 73b-2) for persons in the Government service employed 
eo stat. sos; 
intermittently. 
^s stat. 34o. 
378 
PUBI.IC LAW 88-2G4-DEC. 16, 1963 
[77 STAT. 
LABOR 
STANDARDS 
SEC. 408. (a) The Commissioner shall not approve any application 
for a grant or loan under this Act except upon adequate assurance that 
all laborers and mechanics employed by contractors or subcontractors 
in the performance of work on construction assisted by such ^rant or 
loan will 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, as amended (40 U S.C. 
49 Stat. 1011. 
276a-276a-5), and will receive overtime compensation in accordance 
with and subject to the provisions of the Contract Work Hours Stand-
76 Stat. 357. 
ards Act (Public Law 87-581); but, in the case of any nonprofit 
An T
T
c
n 1
.
0
7 
educational institution, the Commissioner may waive the application of 
this subsection in cases or classes of cases where laborers or mechanics, 
not otherwise employed at any time in the construction of the project, 
voluntarily donate their services for the purpose of lowering the costs 
of construction and the Commissioner determines that any amounts 
saved thereby are fully credited to the educational institution under-
taking the construction. 
(b) The Secretary of I^abor shall have, with respect to the labor 
standards specified in subsection (a) of this section, the authority and 
functions set forth in Reorganization Plan Numbered 14 of 1950 (15 
5 use 133^ 1
5 F.R. 3176; 64 Stat. 1267), and section 2 of the Act of June 13,1934, as 
amended (40 U.S.C. 276c). 
40 u s e 327 
note. 
note 
63 Stat. 108 
RECOVERY o r 
PAYMENTS 
SEC. 404. (a) The Congress hereby finds and declares that, if a 
facility constructed with the aid of a grant or grants under title I or 
I I of this Act is used as an academic facility for twenty years follow-
ing completion of such construction, the public benefit accruing to the 
United States from such use will equal or exceed in value the amount 
of such grant or grants. The period of twenty years after completion 
of such construction shall therefore be deemed to be the period of 
Federal interest in such facility for the purposes of this Act. 
(b) If, within twenty years after completion of construction of an 
academic facility which has been constructed in part with a grant or 
grants under title I or I I of this Act— 
(1) the applicant (or its successor in title or jDossession) ceases 
or fails to be a public or nonprofit institution, or 
(2) the facility ceases to oe used as an academic facility, or the 
facility is used as a facility excluded from the term "academic 
facility" by section 401 (a) (2), 
the United States shall be entitled to recover from such applicant (or 
successor) an amount which bears to the then value of the facility (or 
so much thereof as constituted an approved project or projects) the 
same ratio as the amount of such Federal ^ a n t or grants bore to the 
development cost of the facility financed with the aid of such grant or 
grants. Such value shall be determined by a^eement of the parties 
or by action brought in the United States district court for the district 
in which such facility is situated. 
METHOD OF 
PAYMENT 
SEC. 405. Payments under this Act to any State or Federal agency, 
institution of higher education, or any other organization, pursuant to 
a grant or loan, may be made in installments, and in advance or by 
way of reimbursement, with necessary adjustments on account of over-
payments or underpayments. 
77 STAT. ] 
PUBLIC LAW 88-205-DEC. 16, 1%3 
379 
ADMINISTRATIVE APPKOPEIATIONS ArTHORIZED 
SEC. 406. There are hereby authorized to be appropriated for the 
fiscal year ending June 30,1964, and for each fiscal year thereafter, such 
sums as may be necessary for the cost of administering the provisions 
of this Act. 
FEDERAL CONTROL NOT AUTHORIZED 
SEC. 407. No department, agency, officer, or employee of the United 
States shall, under authority of this Act, exercise any direction, super-
vision, or control over, or impose any requirements or conditions with 
respect to, the personnel, curriculum, methods of instruction, or admin-
istration of any educational institution. 
Approved December 16, 1963, 11 a.m. 
Public Law 88-205 
A N A C T 
December 16, 1963 
To amend further the Foreign Assistance Act of 1961, as amended, and for 
-
' 
other purposes. 
Be it enacted hy the Senate and House of Representatwes 
of the 
United States ofATnerica in Congress assembled, That this Act may Foreign Assist-
be cited as the "Foreign Assistance Act of 1963". 
^nce Act of i963. 
PAET I 
CHAPTER 1—POLICY 
SEC. 101. Chapter 1 of part I of the Foreign Assistance Act of 1961, 
as amended, is amended as follows: 
(a) In the chapter heading strike out the words "SHORT TITLE AND". 
(b) Section 101, which relates to short title, is repealed. 
Repeal. 
(c) Section 102, which relates to statement of policy, is amended as 
75 stat. 424. 
follows: 
22 u s e 215 1 
(1) Insert between the fourth and fifth paragraphs the follow 
ing additional paragraph: 
"It is the sense of the Congress that the institution of full invest-
ment guaranty pro-ams under title I I I of chapter 2 of this part with 
75 stat. 429; 
all recipient countries would be regarded as a significant measure of ^^ ^^^' 2^^-
self-help by such countries improvmg the climate for private invest- 2184. 
ment both domestic and foreign.". 
(2) In the last sentence of the seventh paragraph, strike out 
"should emphasize long-range development assistance" and insert 
in lieu thereof "shall emphasize long-range development assist-
ance". 
(3) Immediately after the tenth paragraph insert the following 
new paragraph: 
"It is the sense of the Congress that, in the administration of pro-
grams of assistance under chapter 2 of this part, every possible pre- 
75 stat. 426. 
caution should be taken to assure that such assistance is not diverted „i,l^^*^ ^^^^ 
to short-term emergency purposes (such as budgetary purposes, bal-
ance-of-payments purposes, or military purposes) or any other pur-
pose not essential to the long-range economic development of recipient 
countries." 
(4) The first sentence of the last paragraph is amended by strik-
ing out "Finally, the" and substituting "The", and by inserting 
"(including private enterprise within such countries)" immedi-
ately after "countries". 
(5) Immediately after the first sentence of the last paragraph 
insert the following new sentence: "In particular, the Congress 
note. 
22 u s e 215 1. 
22II3.