The recently adjourned 84th Congress enacted more legislation favorable to local government than any Congress in history.

This spectacular success can be attributed to the teamwork of municipalities, both large and small, acting through their state leagues of municipalities and the American Municipal Association.

Every city, town and village in the nation will benefit from national legislation on highways, water pollution control, disposal of federal surplus property, housing, social security, census of governments, library aid, flood insurance and municipal water supply.

Measures passed by the second session of the Congress of major interest to local officials are:

Perhaps the most important single piece of legislation is the Road Bill (Federal-Aid Highway Act 1956-Public Law 627). During the next 13 years the nation will undertake an enormous pay-as-you-go road program. There will be fewer traffic jams, increased safety, stepped-up community development, and more jobs in highway construction and related industry. A 41,000-mile Interstate System of superhighways will connect every part of the nation. The federal government will contribute 90 percent of the cost of these highways or $25 billion. The states will pay the remaining 10 percent or $2.7 billion. Federal contributions to the regular federal-aid primary, secondary, and urban highway systems if continued at the level authorized for the first three years will be $8.75 billion over the life of the program. Federal funds for these highways will he matched 50-50 by the states. The total program for all systems during the 13 years will approximate $37.59 billion in federal funds plus $13.1 billion in state matching funds. This is a grand total of $50.7 billion.

Road construction within urban areas will total $15 billion on the Interstate System and $5 billion on the regular federal-aid highways. This legislation establishes the new principle of concentrating federal road construction in the areas of greatest traffic density, namely, in urban communities. Municipalities, both large and small, will have greatly improved roads either directly through the federal-aid highway program or indirectly by virtue of state and local funds freed by the expanded federal program.

Federal help for construction of municipal sewage treatment plants is made available by the Water Pollution Control Act (P.L. 660) which provides a $500 million, 10-year construction program. Each year $50 million is authorized for matching grants for local treatment works with the federal government contributing up to 30 percent of the cost and the municipality the remaining 70 percent. There is a limit of $250,000 of federal contributions to any one project. Congress provided the full $50 million for construction grants for fiscal 1957. Federal funds are also made available for research into improved, less costly treatment processes. Funds for construction grants may be used for advance planning of treatment facilities including engineering, architectural, legal, fiscal, and economic investigations and studies and for surveys, designs, plans, working drawings, specifications, procedures and other activities in the preparation of treatment plans. Funds are available for alteration, expansion or extensions to existing treatment plants as well as for construction of new plants and include the necessary intercepting sewers, outfall sewers and related pumping and power equipment.

Perhaps this legislation more than any other proves the old adage that "in unity there is strength." Because of the limitation of $250,000 of federal funds for any one project this measure is of relatively less importance to New York City and to the other larger cities where treatment plant construction costs run into the hundreds of millions. It is, however, of vital importance to our neighboring smaller municipalities in New York State and to smaller cities throughout the country. We were accordingly pleased to join with our fellow officials in the New York State Conference of Mayors and the AMA in support of this legislation. Through New York City's long association in the league movement we have come to believe that the promotion of sound local government is a common goal and that we have a responsibility to act in cooperation with other local officials to achieve this goal.

Federal surplus property which the Federal Civil Defense Administrator determines to be useful for civil defense purposes will be donated to state and local civil defense agencies. The law (P.L. 655) gives civil defense equal priority with welfare and educational institutions to receive hundreds of millions of dollars worth of donable federal surplus made available annually. Such material previously has been donated to tax-supported medical institutions, hospitals, clinics, health centers, schools, colleges, and universities. To reduce administrative costs the program will be operated by the Department of Health, Education, and Welfare, which, acting through federal surplus property agencies, already has established a national distribution system. State, city, town and county civil defense organizations are eligible to receive surplus items free of charge except for the cost of care and handling. Congress also extended until July 31, 1958 the authority of the General Services Administrator to dispose of non-donable federal surplus items by private or negotiated sales to municipalities. Efforts by AMA to make such disposal mandatory upon the Administrator failed. Since the power for such sales existed in the past and has not been used, there is little hope that the extension of authority will improve the chances of municipalities to purchase such items.

Controversy over the number of units of public housing nearly resulted in no housing legislation in this session. Congress resolved the question by agreeing to the 35,000 units each year for the next two years as originally requested by President Eisenhower. In addition to the 70,000 units, the Congress approved the carrying over of any of the 45,000 units authorized this year which are not put under contract by July 31, 1956. The "workable program" as a prerequisite for public housing was added at the last moment. A Senate proposal to add 75,000 units of low-rent housing in the next 5 years for exclusive use of the elderly was defeated. Instead local housing agencies are empowered to design special units for the elderly from their regular public housing allocation. No additional public housing units are authorized for this purpose.

In the slum clearance and urban renewal program the local share of the net project cost for urban renewal is limited to one-third. Financial assistance to people displaced by urban renewal projects to cover the cost of moving was set at $100 per family. Up to $2,000 is authorized for the moving expenses of businesses. Urban planning grant authority (Section 307) was increased from $5 million to $10 million. The public facilities loan program was extended to cover Puerto Rico, Alaska, The District of Columbia and United States' territories and possessions.

Social security benefits were liberalized

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for all members including those employed by municipalities. The retirement age for women was lowered from 65 to 62 years. A provision also was added which will allow insured workers who become disabled to retire with full benefits at the age of 50. To meet the costs of the liberalized program the rates of contributions were increased and were earmarked for a special trust fund. Effective January 1, 1957, contributions for both the employee and employer will be increased from the present 2 percent to 2 1/4 percent of the employee's salary. The upper limit on the salary from which contributions are to be taken remains at the present $4,200. Social security also was extended on a voluntary, local option basis to municipal policemen and firemen in the states of North Carolina, South Carolina, Florida, Oregon and South Dakota.

Congress appropriated $1,750,000 to conduct the Census of Governments authorized for the year 1957. This study will provide data of great value to the efficient operation of municipal government. The study will determine the number and nature of local governmental units in the United States. Data will also be assembled on municipal finances. For the first time the census will study the relationship of property value to local real estate assessments.

Federal aid for library services to small towns and villages and rural areas is authorized by P.L. 597. The expenditure of $7.5 million a year each year for the next five years is authorized for the purpose of providing library service to incorporated and unincorporated places of 10,000 population or less. The federal funds will be allotted to the states on the basis of a flat sum of $40,000 plus an additional allotment on the basis of the state's rural population. Allotments must be matched by the states on the basis of the per capita income of the state as compared with the national per capita income. To receive funds each state must prepare a state plan for extending public library services to these areas. The Congress reduced the amount of appropriations authorized in the act to the level of $2,050,000 for fiscal year 1957.

Cities, towns, counties and other political subdivisions of the state are eligible to participate in the new flood insurance program approved by Congress. The measure provides for a $100 deductible clause for any loss plus 6 percent of the balance of the claim. There is an upper limit for the total insurance of any public body of $250,000. Municipalities are not covered under the terms of a loan guarantee program designed to aid in the rehabilitation of flood victims. Premiums for flood insurance are to be set by the Housing and Home Finance Agency. The federal government is authorized to absorb all administrative costs of the program and up to 40 percent of the cost of the premiums. After June 30, 1959, the state in which the property is located will be required to pay half of the cost of this subsidy.

Municipalities located near the sites of proposed federal dams will find it possible to obtain federal help in developing local water supplies. Under the terms of the Rivers and Harbors Act the Corps of Engineers when planning flood and irrigation dams is to take local interests into consideration in developing water supplies for domestic, industrial, municipal and other purposes. In the case of municipalities there is no requirement that the community absorb the actual capita cost of adjusting the project to accommodate water supply needs. There is a provision, however, that the Secretary of the Army shall determine the additional construction cost required for the water system, including interest, and shall amortize this cost which is payable by municipalities over the economic life of the project (not to exceed 50 years). In other words, municipalities will not be required to put up capital funds for the additional construction required but will have to repay this cost over the life of the project presumably through the purchase of water.

A measure to provide a limited experimental program of payments in lieu of taxes to municipalities on federally owned property was reported favorably by a Senate Committee but was set aside in the closing minutes of Senate debate.

A bill providing for an expanded program of juvenile delinquency control including federal assistance to municipalities was approved by the Senate too late for consideration by the House.

A program of liberal aid to so-called "depressed areas" passed the Senate but failed to be approved by the House.

Civil Defense legislation to create a cabinet level department of civil defense was introduced but no further action was taken.

A measure to require federal agencies to withhold municipal income taxes from the salary of federal employees failed once again to be reported by the House Ways and Means Committee.