Every term the federal government provides grants to local and state governments. Those funds are accounted for federal outlays and a quarter of spending by local and state governments. Over the past years the intergovernmental grants from federal government that support state and local government that supports state and local programs have fluctuated. These financial transfers fluctuate impacting local and state government and these funds are narrowed which do not met budget items.
The paper summarizes about the funds provided to local governments and the programs they adopt to utilize the funds which are provided by the federal government. The fluctuation occurs because the revenues …show more content…
education and the activities that can improve people life style and productivity and physical capital that includes buildings, infrastructure. If state or local government decided that it cannot handle the spending then it will make then it will make other adjustments so that it would make other changes in the federal spending. If the federal control is less over the working of grant programs then state and local government make ways to operate those programs in more efficient and economic manner. If suppose the federal control is more an administration of grant programs then it will be difficult for the local governments to adopt practices that match to the policymaker’s goals of federal government.
Federal grants are intended to supplement the efforts of local government rather than to replace them. For that reason many grant programs are implemented that include matching requirements that require local government to pay somewhat from nonfederal revenues. If local government have to spend more on a program then they spend their own revenues according to their own policy requirements.
Data …show more content…
Block grants have been implemented that focused on health and drug abuse, maternal and child health, low income people and community development. These block grants is the combination of many grants that provide local government to be flexible for spending decisions.2 The growth in federal grants to state or local government has been for the programs that are useful for individuals that have made directly through payments to service providers on their behalf. These programs include Medicaid, assistance of house, children’s health insurance program. Federal grants have provided more funding to health sector around 48% and 52% is for other