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States and Cities Pay a High Price for Their Federal Aid

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Publication Date: July 1986

Publisher(s): Heritage Foundation (Washington, D.C.)

Author(s): Stephen Moore

Topic: Government (Central or federal government)

Keywords: Government reform

Type: Report


The Reagan Administration has made useful changes in the grants structure. But so far the reforms have been at the margin. What is needed now is a commitment to terminate the potpourri of assistance programs, and replace them with a Fiscal Equity Grant based on the
financial capacities of states to meet clearly defined needs. This would benefit poorer areas to a far greater extent than the present aid structure, and it would be a decisive victory in the campaign to control federal spending.