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Many projects

cient power systems; oil technology; natural

Department of the Interior

gas; and fuel cells.

Bureau of Reclamation. The Bureau of

that do have

General Science and Research Activities. The

Reclamation provides for the construction,

potential com-

General Science and Research activities

operation, and maintenance of various water

mercial spinoffs

account underwrites research in high-energy

projects that provide power, water supply, irri-

physics and nuclear physics. Many projects

gation, and flood control in the western

can and should

that do have potential commercial spinoffs--

United States. Since its establishment in 1902,

be financed

such as high-speed computing, superconduct-

the bureau's main goal has been to provide

ing magnet technology, and high-power radio

water supply for the agricultural industry in

through the ven-

frequency devices--can and should be

the western United States. One of the most

ture capital mar-

financed through the venture capital markets.

controversial BOR projects is the Animas-La

kets.

Power Marketing Administrations. The federal

Plata project, which siphons the flow of the

government generates electric power at more

Animas River uphill to irrigate low-value

crops.75  This project delivers taxpayer-

than 120 federal dams under the authority of

the five Power Marketing Administrations.

financed irrigation to a specific region and

That electricity is sold to large and profitable

group of corporate farms, an indirect subsidy

electric utility cooperatives at below-market

that is estimated at over $1 million per farm.

rates. These power generators should be priva-

U.S. Geological Survey. The U.S. Geological

tized and prices for the energy produced deter-

Survey provides the public research and scien-

mined by market forces.

tific information about water, land, and min-

eral resources. The information on the loca-

Department of Housing and Urban

tion of energy and mineral resources is valu-

Development

able to mining and oil companies. This agency

Community Development Block Grants. This

could be privatized and the research funded by

multi-billion-dollar program, which grows

the beneficiaries of the information.

every year, consists of thousands of pork-

Department of Transportation

laden earmarks to congressional districts.

Many of the grants go directly to benefit

Federal Aviation Administration Operations

business. In recent years, CDBG money was

and Air Traffic Control. Most of the cost of run-

spent to revitalize a shopping mall in

ning the air traffic control system is paid by

California and to build parking lots in New

taxpayers. The fees charged to register air-

York.7 4

craft are far lower than are needed to finance

the operation of a large and inefficient

Federal Housing Administration Subsidies. The

national air traffic control service. The pas-

Federal Housing Administration subsidizes

senger ticket taxes and the federal fuel taxes

the mortgage banking industry by providing

are inefficient ways of financing this system.

low-rate mortgage insurance to low- and

The market would be best able determine

moderate-income homebuyers. Not surpris-

how to assess price and cover costs of the

ingly, the FHA's staunchest defender is the

benefits received. The air traffic control sys-

Mortgage Bankers Association. The subsidies

tem should be privatized.76

to the mortgage banking industry are partic-

ularly unwarranted, given that there is a

Commercial Space Transportation. This pro-

healthy and expanding private mortgage

gram was created to encourage private space

insurance industry that can and would carry

launches and expendable launch vehicles

the load in the FHA's absence. Moreover,

with taxpayer money. While it is important

because there is no income limit for FHA

that the private sector be allowed to develop

insurance eligibility--just a cap on the size of

commercially viable means of traveling in

the mortgage--many households that would

space, it is not the government's role to pick

not be considered moderate income are able

winners in that market by giving government

to obtain FHA-insured loans.

money to favored aerospace companies. The

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