The appropriations from general and special accounts for the social security program, which cover Federal administrative expenses and grants to States for assistance programs, are estimated at 593 million dollars for the fiscal year 1947, an increase of 57 million dollars over the current year.  The increase anticipates greater administrative workload and higher grants to match increasing State payments.  The social security program does not include all the Federal health services under existing legislation.  For the other health services classified under general government and national defense, appropriations are estimated at 102 million dollars for the fiscal year 1947.

Some expansion in peacetime medical research and other programs of the Public Health Service is provided for in the appropriation estimates for these purposes totaling approximately 87 million dollars for the fiscal year 1947 which are submitted under provisions of existing law.  Part of this will be provided through the social security appropriations, the remainder through other appropriations.  About 28 million dollars is recommended for maternity care and health services for children under existing law, mainly under the emergency provision for the wives and infants of servicemen.  While we should avoid duplication of maternity and child health services which will be provided through the proposed general system of prepaid medical care, legislation is needed to supplement such services.  For medical education, I have recommended legislation authorizing grants-in-aid to public and nonprofit institutions.  The existing sources of support for medical schools require supplementation to sustain the expansion that is needed.

Hospitals, sanitation works, and additional facilities at medical schools will be required for an adequate national health program.  Legislation is now pending in the Congress to authorize grants for the construction of hospitals and health centers and grants and loans for water-pollution control.  I hope the Congress will act favorably on generous authorizing legislation.

7.  Research and education

The Budget provides for continuation and desirable expansion of the research activities that are carried on throughout the Federal establishment and through previously authorized grants to the States.  Additional appropriations will be required for the proposed central Federal research agency which I recommended last September 6.  That agency will coordinate existing research activities and administer funds for new research activities wherever they are needed; it will not itself conduct research.  The plan contemplates expenditures through the new research agency of approximately 40 million dollars for the first year.

These amounts are small in relation to the important contribution they can make to the national income, the welfare of our people, and the common defense.  Expenditures must be limited for the time being by the capacity of research agencies to make wise use of funds.  The maintenance of our position as a nation, however, will require more emphasis on research expenditures in the future than in the past.