Status of Three Rescission Proposals for Fiscal Year 1977

Observations are made on the status of three rescission proposals for fiscal year 1977 under the Impoundment Control Act of 1974. A moratorium has been placed on all proposed plans for the replacement or modification of all dredges by the Corps of Engineers pending completion of a study of national dredging needs. A private study indicated a need for 9 to 11.5 new hopper dredges in addition to the existing fleet of 15 vessels. A total of $8.25 million has been made available for the design and construction of six vessels over 3 or 4 years. It is concluded that if industry fails to expand its hopper dredge fleet in the future, the dredging required to maintain the navagability of waterways may be affected during the time needed to construct an expanded federal fleet. Contract authority of $47.5 million for the purchase of helium by the Bureau of Mines was rescinded. None of the $35 million proposed for rescission under the Highways Crossing Federal Projects has been apportioned to the states. The Federal Highway Administration is holding the entire amount in reserve pending congressional action.