Twenty years ago cooperative federalism, in the form of federal grant-in-aid programs administered by state and local governments, was applauded almost without reservation as the best means of helping the handicapped, the educationally disadvantaged, the poor, and other groups with special needs. More recently these same programs have been criticized for excessive regulations and red tape, bureaucratic ineptitude, and high cost. The criticisms have been used to justify efforts to curb federal domestic spending and terminate many grants-in-aid. In When Federalism Works, Paul E. Peterson, Barry G. Rabe, and Kenneth K. Wong examine the new conventional wisdom about federal grants. Through documentary research and hundreds of interviews with local, state, and federal administrators and elected officials, they consider the implementation and operation of federal programs for education, health care, and housing in four urban areas to learn which programs worked, when, and why. Why did rent subsidy programs encounter seemingly endless difficulties, while special education was a notable success? Why did compensatory education fare better in Milwaukee than in Baltimore? Among the factors the authors find significant are the extent to which a program is directed toward groups in need, the political and economic circumstances of the area in which it is implemented, and the degree of professionalism among those who administer it at all levels of government. When Federalism Works provides a solid introduction to the most important grant-in-aid programs of the past twenty years and a thoughtful assessment of where they might be going.

Grants are a form of federal assistance consisting of payments in cash or in kind for a specified purpose and they represent an important tool for achieving national objectives. They vary greatly, including in the types of programs they fund, the methods they use to allocate funds to recipients, and the amount of discretion they give to the grant recipient on how the funds are spent. The Office of Management and Budget (OMB) has previously estimated that grants to state and local governments represent roughly 80 percent of all federal grand funding, with the balance going to recipients such as non-profit organizations, research institutions, or individuals. This book provides an overview of federal funding levels in a time of fiscal constraint, with a focus on the challenge of continuing to support the current scope and breadth of federal grants to state and local governments.

This two-volume set contains a report and hearings on the federal grants-in-aid program held by the Subcommittee on Intergovernmental Relations of the House Committee on Government Operations. Included is the history of federal grants-in-aid, their impact on the cities, and recommendations urging a greater degree of cooperation among the various levels of government.