Robert Jay Dilger
Senior Specialist in American National Government
The federal government is expected to provide state and local governments more than $625 billion in federal grant-in-aid funding in FY2011, encompassing a wide range of public policies, such as health care, transportation, income security, education, job training, social services, community development, and environmental protection. The central role of federal grants-in-aid in American domestic policy was demonstrated by the prominent role grants-in-aid had in the American Recovery and Reinvestment Act of 2009 (ARRA; P.L. 111-5). ARRA provided more than $325 billion for federal grants-in-aid to state and local governments.
Congress has a central role in determining the scope and nature of federal grant-in-aid programs. In its legislative capacity, Congress first determines what it wants to accomplish and then decides whether a grant-in-aid program is the best means to achieve it. Congress then selects which of the six grant mechanisms to use (project categorical grant, formula categorical grant, formula-project categorical grant, open-end reimbursement categorical grant, block grant, or general revenue sharing), and crafts legislation to accomplish its purpose, incorporating the chosen grant instrument. As with all legislation generally, Congress oversees the program’s implementation to ensure that the federal administrating agency is held accountable for making certain that congressional expectations concerning program performance are met.
Federalism scholars agree that congressional decisions concerning the scope and nature of federal grant-in-aid programs are influenced by both internal and external factors. Internal factors include congressional party leadership and congressional procedures; the decentralized nature of the committee system; the backgrounds, personalities, and ideological preferences of individual congressmen; and the customs and traditions (norms) that govern congressional behavior. Major external factors include input provided by voter constituencies, organized interest groups, the President, and executive branch officials. Although not directly involved in the legislative process, the Supreme Court, through its rulings on federalism issues, also influences congressional decisions concerning federal grant-in-aid programs.
Overarching all of these factors is the evolving nature of cultural norms and expectations concerning government’s role in American society. Over time, the American public has become increasingly accepting of government activism in domestic affairs generally, and of federal government activism in particular. Federalism scholars attribute this increased acceptance of, and sometimes demand for, government action as a reaction to the industrialization and urbanization of American society, technological innovations in communications which have raised awareness of societal problems, and exponential growth in economic interdependencies brought about by an increasingly global economy.
This report provides an historical synopsis of the evolving nature of federal grant-in-aid programs, focusing on the role Congress has played in defining the scope and nature of those programs. It begins with an overview of contemporary federal grant-in-aid programs and then examines their evolution over time, focusing on the internal and external factors that have influenced congressional decisions concerning federal grant-in-aid programs. It concludes with an assessment of the scope and nature of the contemporary federal grants-in-aid system and raises several issues for congressional consideration, including possible ways to augment congressional capacity to provide effective oversight of this system.
Date of Report: April 20, 2011
Number of Pages: 38
Order Number: R40638
Price: $29.95
Follow us on TWITTER at http://www.twitter.com/alertsPHP or #CRSreports
Document available via e-mail as a pdf file or in paper form.
To order, e-mail Penny Hill Press or call us at 301-253-0881. Provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery. Phone orders are preferred and receive priority processing.
Senior Specialist in American National Government
The federal government is expected to provide state and local governments more than $625 billion in federal grant-in-aid funding in FY2011, encompassing a wide range of public policies, such as health care, transportation, income security, education, job training, social services, community development, and environmental protection. The central role of federal grants-in-aid in American domestic policy was demonstrated by the prominent role grants-in-aid had in the American Recovery and Reinvestment Act of 2009 (ARRA; P.L. 111-5). ARRA provided more than $325 billion for federal grants-in-aid to state and local governments.
Congress has a central role in determining the scope and nature of federal grant-in-aid programs. In its legislative capacity, Congress first determines what it wants to accomplish and then decides whether a grant-in-aid program is the best means to achieve it. Congress then selects which of the six grant mechanisms to use (project categorical grant, formula categorical grant, formula-project categorical grant, open-end reimbursement categorical grant, block grant, or general revenue sharing), and crafts legislation to accomplish its purpose, incorporating the chosen grant instrument. As with all legislation generally, Congress oversees the program’s implementation to ensure that the federal administrating agency is held accountable for making certain that congressional expectations concerning program performance are met.
Federalism scholars agree that congressional decisions concerning the scope and nature of federal grant-in-aid programs are influenced by both internal and external factors. Internal factors include congressional party leadership and congressional procedures; the decentralized nature of the committee system; the backgrounds, personalities, and ideological preferences of individual congressmen; and the customs and traditions (norms) that govern congressional behavior. Major external factors include input provided by voter constituencies, organized interest groups, the President, and executive branch officials. Although not directly involved in the legislative process, the Supreme Court, through its rulings on federalism issues, also influences congressional decisions concerning federal grant-in-aid programs.
Overarching all of these factors is the evolving nature of cultural norms and expectations concerning government’s role in American society. Over time, the American public has become increasingly accepting of government activism in domestic affairs generally, and of federal government activism in particular. Federalism scholars attribute this increased acceptance of, and sometimes demand for, government action as a reaction to the industrialization and urbanization of American society, technological innovations in communications which have raised awareness of societal problems, and exponential growth in economic interdependencies brought about by an increasingly global economy.
This report provides an historical synopsis of the evolving nature of federal grant-in-aid programs, focusing on the role Congress has played in defining the scope and nature of those programs. It begins with an overview of contemporary federal grant-in-aid programs and then examines their evolution over time, focusing on the internal and external factors that have influenced congressional decisions concerning federal grant-in-aid programs. It concludes with an assessment of the scope and nature of the contemporary federal grants-in-aid system and raises several issues for congressional consideration, including possible ways to augment congressional capacity to provide effective oversight of this system.
Date of Report: April 20, 2011
Number of Pages: 38
Order Number: R40638
Price: $29.95
Follow us on TWITTER at http://www.twitter.com/alertsPHP or #CRSreports
Document available via e-mail as a pdf file or in paper form.
To order, e-mail Penny Hill Press or call us at 301-253-0881. Provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery. Phone orders are preferred and receive priority processing.
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