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Prior to the creation of the Transportation Department, the under secretary of Commerce for transportation administered the functions now associated with the DOT. Just before he left office in June 1965, Federal Aviation Administration Administrator Najeeb Halaby suggested to President Lyndon Johnson that transportation be elevated to a cabinet-level post, and that the FAA be folded into the DOT. In his January 1966 State of the Union address, Johnson announced his intention to do just that. Two months later, on March 6, 1966, he sent Congress a bill to establish DOT. After much compromise with Congress, Johnson signed into law the Transportation Department enabling act on Oct. 15, 1966. The final version of the bill left out the Maritime Administration, and the actions of the FAA administrator relating to safety, and the decisions of the National Transportation Safety Board were designated “administratively final” with appeals only to the courts. The reorganization created the fourth largest federal agency and brought approximately 95,000 employees in to the new organization. Thirty-one previously scattered federal elements were grouped under the wing of one cabinet department.
(DOT)
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