Goals of This Exercise Federalism and the Politics of Grants-in-Aid Since the New Deal, the national government has played an increasing role in encouraging and even coercing states to administer federal policies. Central to this evolving relationship has been the federal government’s use of grants-in-aid to encourage states’ cooperation in implementing federal policies. Increases in federal grant-in-aid outlays throughout the second half of the twentieth century exemplify the increased role of the national government in the federal balance of power. Federal grants have seen a further twofold increase since 2000. Political actors in the national government establish these grant programs with varying degrees of flexibility and discretion given to state governments. Categorical Grants Categorical grants are federal grants given to state and local governments to encourage their cooperation in implementing specific purposes and programs.
Block Grants Block grants are federal grants-in-aid that allow states considerable discretion (within broad limits) about how the funds will be spent.
The Politics of Grants-in-Aid: Devolution When the Republicans took control of Congress after the 1994 elections, their “Contract with America” sought to “devolve” control of many federal programs to the states, often by replacing existing categorical grant programs with block grant programs. Two examples of this approach are welfare reform and crime policy. Devolution in Welfare Reform The Republicans replaced the federal Aid to Families with Dependent Children (AFDC) entitlement welfare program with Temporary Assistance for Needy Families (TANF), which provided block grants to state governments to reform welfare. AFDC: The Federal Role
TANF: Increased State Power
Devolution in Crime Policy With the Taking Back Our Streets Act, the Republicans replaced the specific programs and grants to state and local governments that characterized the Clinton administration’s crime bill with block grants to states, allowing them to fight crime as they saw fit. 1994 Crime Bill
Taking Back Our Streets Act
Examining the Rationality Principle The Rationality Principle: all political behavior has a purpose. All political actors engage in instrumental acts designed to further their individual goals. Answer the following questions: 4. Crime legislation: Consider the differences in the crime problems of Illinois, California, and New York (each of which faces significant challenges with violent crime), on the one hand, versus North Dakota, Kansas, and New Hampshire (more rural states), on the other. What effect does establishing a rule allowing states greater flexibility to address crime have on policy making? How do unfunded mandates affect states?An unfunded mandate is a statute or regulation that requires a state or local government to perform certain actions, with no money provided for fulfilling the requirements. Public individuals or organizations can also be required to fulfill public mandates.
How have unfunded federal mandates affected state and local governments?Unfunded mandates limit state and local flexibility to address more pressing local problems like crime and education. States are often forced to retroactively find the money to pay the bills and compensate by foregoing discretionary actions that may be vitally important to citizens locally.
How does the federal government use grants and mandates to influence state policies?How does the national government use grants and mandates to influence state policies? A categorical grant is used for a specific purpose, or category, for state or local spending. (Ex: natural disaster, airport building, crime fighting) that depends on state's population.
Why do states dislike unfunded mandates?Unfunded mandates are often controversial because they require states or companies to change their practices or products, but expect that they do so without any financial assistance from the government.
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