By 1969, many successful programs had been initiated by OEO and the CAAs, including Head Start, family planning, community health centers, Legal Services, VISTA, Foster Grandparents, economic development, neighborhood centers, summer youth programs, adult basic education, senior centers, congregate meal preparation, and others.
The concept of using OEO and CAAs as “innovators and the testing ground” for new programs and then spinning off successful programs to be administered by other federal agencies had around since OEO was formed. In President Richard Nixon’s first administration (1968—1972), he transferred programs from OEO to the Department of Health, Education, and Welfare (Head Start) and the Department of Labor (Job Corps, Neighborhood Youth Corps).
Legal Services, Adult Basic Education and Title III Senior Food Programs obtained their own legislation and also spun off from OEO. The OEO staff who worked on each program, the money and the administrative oversight for a substantial part of CAA funding went along with these transfers to the new agencies.
During the first Nixon Administration, one of the OEO Directors was Donald Rumsfeld -- who is now Secretary of Defense. Governor Reagan once again vetoed the legal services grant to the California Rural Legal Assistance program. As Sarge Shriver had done, Director Rumsfeld overrode that veto (CRLA continues to provide legal services to migrant workers to this day). Director Rumsfeld also signed an OEO Instruction describing the mission of the CAA that is still in use today by many states and CAAs.
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The first Nixon Administration also proposed the excellent Family Assistance Plan, which was developed by then Assistant Secretary of HEW Daniel Patrick Moynihan. Unfortunately it did not pass Congress. President Nixon also supported and signed legislation that provided a significant increase in social security benefits for seniors; the senior poverty rate dropped from 34% to 12% overnight.
By the start of their second term in 1973, the Nixon Administration had changed its mind about a wide range of social policies and programs. President Nixon did not request any funds for OEO’s Community Action Program division.
Congress nevertheless provided funds. Nixon appointed Howard Phillips as Director of OEO and told him to dismantle and close the agency and to not spend the money Congress provided, to “impound” it. Acting Director Phillips sent notices to the OEO Regional Offices and the CAAs to cease operations and to close their offices.
After a series of lawsuits, the Federal District Court in Washington, D.C., ruled that the President (a) could not refuse to spend funds that had been appropriated by Congress, and (b) that Acting Director Phillips did not have the authority to take the actions that he had taken. Phillips resigned without having ever been confirmed by the Senate. In response to President Nixon’s concerns about managing Federal spending, the Congress created the “Anti Impoundment and Budget Reconciliation Act of 1974.” In 1981, it was used to eliminate the CSA. We will return to this later.
This paper was originally written by Jim Masters of the Center for Community Futures and published by NACAA for the
25th Anniversary of Community Action in 1989. He updates it here for the 40th Anniversary
Questions or comments? Contact him at jmasters@cencomfut.com
• Background
• LBJ State of the Union
• Creation:1964
• Formative Years: 1964 - 1967
• Restructuring Phase: 1967 - 1968
• Transition Years: 1969 - 1974
• Program Management Years 1974 - 1981
• Block Grant years: 1981 - Present
• The Results and Outcomes Years: 1993 - and into the future
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