As in recent years, detailed recommendations concerning most appropriations for the national defense program are postponed until the spring.  In connection with the war activities of the United States Maritime Commission and certain other agencies, however, I now make specific recommendations for the fiscal year 1947.  No additional authorizations or appropriations will be necessary for the Maritime Commission since sufficient balances will be left after the above-mentioned rescissions to carry out the program now contemplated for the fiscal year 1947.

2.  Aftermath of war

Nearly one-third—­11 billion dollars—­of estimated Federal expenditures in the fiscal year 1947 will be for purposes that are largely inherited from the war—­payments to veterans, interest on the Federal debt, and refunds of taxes.

(a) For veterans.

“Veterans’ pensions and benefits” has become one of the largest single categories in the Federal Budget.  I am recommending for this purpose total appropriations of 4,787 million dollars for the fiscal year 1947.  Expenditures in the fiscal year are estimated, under present legislation, at 4,208 million dollars.  These expenditures will help our veterans through their readjustment period and provide lasting care for those who were disabled.

The Congress has provided unemployment allowances for veterans during their readjustment period.  Expenditure of 850 million dollars for this purpose is anticipated for the fiscal year 1947.  In addition, readjustment allowances for self-employed veterans are expected to cost 340 million dollars in the fiscal year 1947.

On May 28, 1945, in asking the Congress to raise the ceiling on benefits for civilian unemployed to not less than 25 dollars a week during the immediate reconversion period, I suggested that the Congress also consider liberalizing veterans’ allowances.  Elsewhere in this Message I reiterate my recommendation with respect to emergency unemployment compensation.  I also recommend increasing veterans’ unemployment allowances from 20 dollars to 25 dollars a week.  This would involve additional expenditures estimated at approximately 220 million dollars for the fiscal year.

Included in the 1947 Budget is an expenditure of 535 million dollars for veterans’ education under provisions of the Servicemen’s Readjustment Act.  This amount includes both tuition expenses and maintenance allowances.  It is expected that half a million veterans will be enrolled in our schools and colleges during the year.

The ultimate benefit which veterans receive from the loan guarantee provisions of the Servicemen’s Readjustment Act depends largely on the success of our stabilization program in restraining building costs and real estate values.  Under the revised procedure contained in recent amendments, the administrative workload will be minimized by the almost complete transfer of authority for approving the guarantees to private lending agencies and private appraisers designated by the Veterans Administration.  This authority carries with it the responsibility for restricting the guarantees to loans on reasonably valued properties.  Costs of the program, other than for administration, are estimated at 21 million dollars in the fiscal year 1947.