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Federal Grants To States and Localities Cut Deeply in Fiscal Year 2009 Federal Budget

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Publication Date: February 2008

Publisher(s): Center on Budget and Policy Priorities (Washington, D.C.)

Author(s): Iris J. Lav; Phillip Oliff

Special Collection: John D. and Catherine T. MacArthur Foundation

Topic: Government (State or regional government)
Social conditions (Public welfare and social services)

Keywords: City budgets; Economic projections; State budgets; Federal budget

Type: Report


Grants to state and local governments have long been an important way in which the federal government supports and administers programs efficiently.  The new budget, however, continues to significantly erode those grants.  This leaves states and localities the option of either curtailing services or increasing their own taxes to compensate for declining federal funds.