President Dwight D. Eisenhower

To the Senate of the United States:

I am returning herewith, without my approval, S. 57, "An act to
extend and amend laws relating to the provision and improvement of
housing and the renewal of urban communities, and for other purposes."

For many months I have been looking forward to approving a sound
and constructive housing bill. New homes are now being built at near
record rates. I have hoped to receive from the Congress legislation that
would further advance the cause of better housing for Americans within
the limits of fiscal responsibility.

To my disappointment, the Congress has instead presented me with
a bill so excessive in the spending it proposes, and so defective in other
respects, that it would do far more damage than good.

First, the bill is extravagant and much of the spending it authorizes
is unnecessary. Its spending authorizations total a minimum of $2.2 bil-
lion--all of which would be available for commitment without further
congressional or Presidential action. The comparable budget recom-
mendations of the administration totaled $810 million.

Its authorizations of $900 million for urban renewal--telescoped into
2 years--are excessive.

Even though we have over 100,000 previously authorized public
housing units as yet unbuilt, the bill would authorize 190,000 more.

A new program of direct Federal lending is authorized for housing
for elderly persons when needs in this area can be adequately met by
private funds invested under the protection of Federal insurance. The col-
lege housing loan program would be continued with increased authoriza-
tions at interest rates below the cost of money to the Treasury and a new
program for college classrooms and related academic facilities at the same
subsidy interest rates would be started. Although the amounts initially
authorized for the latter program would be relatively small, the eventual
demand for these loans would reach staggering proportions. To the extent
that these and other programs merely displace private financing they lead
to Federal spending that is entirely unnecessary.

Second, the bill is inflationary. The spending authorizations of S. 57,
taken together with other seriously objectionable provisions would be in-
flationary and therefore an obstacle to constructive progress toward better

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