White House Press Release

IMMEDIATE RELEASE MAY 2, 1945. PRESIDENT RECOMMENDS $80,000,000 CUT IN BUDGETS OF EIGHT AGENCIES The President today recommended to Congress a reduction of more than $80,000,000 in the 1946 budget estimates of eight agencies for the year beginning July 1. Elimination of some agency activities and sharp curtailments in proposed expenditures for others are included in the recommendations. The reductions were recommended because of changing war con- ditions, and followed a review by the President and the Bureau of the Budget of the proposed 1946 budgets of the agencies concerned. Such review and recommendations for repeal of funds was authorized by Con- gress in the Second Deficiency bill of June 28, 1944. As the war progresses, the activities of all agencies will be continually reviewed to achieve economies where they will not interfere with the prosecution of the war. It is anticipated that in addition to the cuts in the 1946 budgets, reserves of many millions of dollars can be set up for the current fiscal year, ending June 30. Recommendations for 1946 budget changes: Office of War Information - A reduction of $12,100,000 from the proposed 1946 budget of $54,100,000 is recommended. War develop ments in the European theater are expected to make possible the end of TRUMAND psychological warfare in that area and a curtailment of information NARA activities and broadcast materials in neutral and allied countries, as By well as a decrease in the domestic branch. The balance of $42,000,000 will allow intensification of OWI activities in the Far Eastern zone War Production Board - Anticipating that the removal of numerous control orders over materials will follow victory in Europe, a reduction of $8,894,000 in the proposed 1946 budget of $48,042,000 is recommended. Office of Censorship - Discontinuance of censorship in some areas following victory in Europe makes possible the recommended re- duction of $4,800,000 in the proposed 1946 budget of $19,150,000. Office of Defense Transportation - Recommended is a reduction of $3,300,000 from the proposed 1946 budget of $11,000,000, made pos- sible by an anticipated improvement by next December 31 in the trans- portation situation. Petroleum Administration for War - A minor reduction of $345,000 from the 1946 proposed budget of $4,345,000 is recommended, due to adjustments possible in the domestic field of operations. (OVER)