politics of federalism & federal grants. types of grants categorical-formula - congress...
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Politics of Federalism & Federal Grants
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Types of Grants• Categorical-Formula - Congress appropriates funds for
specific purposes such as school lunches or for building highways
– Subject to detailed federal conditions
• Project - Congress appropriates a certain sum, which is allocated to state and local units and sometimes to nongovt. agencies, based on applications from those who wish to participate
• Block - broad grants to states for prescribed activities—welfare, child care, education, social services, preventive health care, and health services—with only a few strings attached
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Types of Federal Grants
• In 1996 there was a shift from Categorical Grants to Block Grants
Purposes of Federal Grants to State and Local Governments
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The Changing Purpose of
Federal Grants to State and
Local Governments
Budget of the U.S. Government, Fiscal Year 2005, table 12.2.
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Federal Grants to State and Local Governments, 1984-2004
Budget of the U.S. Government, Fiscal Year 2002, Historical Tables, table 6.1, and Budget of the U.S. Government, Fiscal Year 2005, table 12.1.
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Federal Aid and Federal Control
• Conditions of aid – tell state governments what they must do if they wish to receive grant money
• Unfunded mandates – programs that the federal govt. requires states to implement w/out federal funding– Ex.) NCLB, Americans w/ Disabilities Act
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The Devolution Revolution
• Devolution initiatives returned program management of things like welfare to the states, with some federal guidelines
• Devolution proponents harbor a deep-seated ideological mistrust of the federal government and believe that state governments are more responsive to the people
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The Politics of Federal Grants: Devolution
The Republican “Contract with America” called for devolution-- the transfer of political and economic power to the states
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The Politics of Federal Grants: Devolution
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Positives and Negatives of Federalism
• Negative view: Federalism blocks progress and protects powerful local interests
• Positive view: Federalism contributes to governmental strength, political flexibility, and fosters individual liberty– Federalist #10: small political units allow
all relevant interests (factions) to be heard
– Federalism increases political activity
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The Growth of Big Government
Why has the power of the national
government grown over the last two centuries?
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The Future of Federalism
The persistence of international terrorism, the war in Afghanistan
and Iraq, and rising deficits all ensure a
substantial role for the national government in
the years to come