The Evolution of Fiscal Federalism

The Evolution of Fiscal Federalism
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Fiscal federalism in the United States has evolved over time, influenced by historical events like the 9/11 attacks. This evolution includes the use of grants-in-aid, categorical grants, block grants, and federal mandates to shape state policies. Explore the impact and implications of these financial mechanisms in today's federalism landscape.

  • Fiscal federalism
  • Grants-in-aid
  • Categorical grants
  • Block grants
  • Federal mandates

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  1. Chapter 4: Federalism Section 3: Federalism Today (pg.112-115)

  2. Fiscal Federalism The terrorist attacks on 9/11, brought the need for increased national security. This went against New Federalism, however the national gov. has done it in the past: Land Ordinance of 1785 & The Morrill Act of 1862 (both for state universities) This includes Grants-in aid, which started in the 20th century The Gov. gives money to states for many reasons. Examples low-income housing, community arts, energy assistance for the elderly, & disaster programs http://i.ytimg.com/vi/2KmA4MMh5RU/hqdefault.jpg

  3. Grants & Mandates http://image.slidesharecdn.com/federal-grants-and-mandates-1200693407987474-3/95/federal-grants-and-mandates-3-728.jpg?cb=1200664608 Categorical grants, block grants, and federal mandates are among the national government s most important tools for influencing state policy.

  4. Categorical Grants Most federal aid is given to states in this way. These grants can only be used for a specific purpose, such as the building of a new airport of crime- fighting in a certain area. These grants are also used to provide money to areas affected by natural disasters. The amount of money often depends on the state s population and states may have to contribute money in addition to the grant http://image.slidesharecdn.com/federal-grants-and-mandates-1200693407987474-3/95/federal-grants-and-mandates-2-728.jpg?cb=1200664608

  5. Block Grants These are grants that are given for more general purposes or for broad policy areas, such as welfare, public health, community development, or education. States prefer these grants b/c state officials can spend the money as they see fit. Reagan used Block Grants to give power back to the states https://s3.amazonaws.com/lowres.cartoonstock.com/money-banking-education-grants-block_grant-classroom-education_grant-aban1122_low.jpg

  6. Federal Mandates These are funds given to states with demands to carry out certain policies as a condition of receiving grant money. Mandates have been used in enacting civil rights (busing)and environmental policies (Clean Air Act of 1970) Unfunded mandates are a source of conflict b/c there is no money included (voter registration in 1993) https://thinkandinkkansas.files.wordpress.com/2010/09/2-think-and-ink-classroom.jpg

  7. Issues in Federalism Today Poverty-in 1996 Congress allowed states to manage their own welfare systems using federal block grants. Now the number of people on welfare has gone down. Homeland Security- started after 9/11 but during Hurricane Katrina people questioned whether there needed to be better cooperation between the levels of government. http://web.mit.edu/12.000/www/m2010/images/katrina-08-28-2005.jpg

  8. Issues in Federalism Today Environment-many see that the national gov. should regulate this issue b/c state s may not regulate it b/c of state businesses Immigration-The national gov. is suppose to take care of this issue however they have yet to act (since the 1980s). States have to educate, house, etc. these folks. Health Care-Obamacare http://mrortlieb.weebly.com/uploads/8/9/7/6/8976286/6167774.jpg

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