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Under the leadership of Lynne V. Cheney, 51, chair of the National Endowment for the Humanities since 1986, funding increased by 20 percent and progress was made toward preserving hundreds of thousands of deteriorating documents in libraries. Cheney has sent a letter to President Bush resigning her post as of Jan. 20, inauguration day. Her term does not expire until 1994, but in a memo to her staff she says she ”felt instinctively that this was the right time to go. I look back on the last 6 1/2 years with a great deal of pride.” Cheney`s husband is Dick Cheney, the Bush administration defense secretery.