290:, critics of block grants argued that the flexibility block grant programs gave to local governments diminished the ability of federal administrators to evaluate the effectiveness of these programs, especially given that there were often no federal requirements for uniform program data collection across states. Opponents also said that the lack of restriction regarding where local officials spend block grant funding would enable them to retarget resources away from communities with the greatest need, to communities with the greatest political influence. Block grant critics said that the funding for block grants was prone to diminish over time because it was more difficult to regenerate political support for broad-purpose, state-run programs, than for categorical programs focusing on specific purposes.
107:(CRS) advocates, who would like to see Medicaid converted into a block grant, say that block grants assist in reducing the federal deficit, increase government efficiency, redistribute power, improve accountability, and allow for flexibility. Critics, who are specifically against converting Medicaid into block grants, say that block grant "undermine the achievement of national objectives", "reduce government spending on domestic issues" where, for example, the "most vulnerable seniors, individuals with disabilities, and low-income children" would lose their health care through deep cuts in Medicaid. Critics also say that because block grants are decentralized, it is more challenging to "measure block grant performance and to hold state and local government officials accountable for their decisions".
316:, a set of questionnaires developed by the George W. Bush Administration to assess the efficacy of various federal funding programs. Out of the seven PART program types in 2008, 30% of block grant programs were rated "results not demonstrated", and 5% were rated "ineffective". Block grant advocates said that PART's strong weighting of program results in its calculations make it a poor measure for evaluating block grant performance. While PART examines how programs achieve a single outcome, many block grant programs contain multiple outcomes which are often contradictory to each other, and thus the overall impact of block grants may be underestimated.
164:(1953–1961) created "block grants in the health and public welfare fields". In the 1950s, the U.S. Department of Health, Education, and Welfare (HEW) was able to consolidate "child health and welfare, vocational education, and vocational rehabilitation areas" into block grants for public health. But most proposals for block grants repeatedly met rejection in the 1950s. Reasons included a political misalignment between federal and state levels, concerns about a lack or reduction of federal controls, and that giving states wider latitude in spending would be a "more effective and efficient use of public funds."
58:
323:(CRS) report entitled "Block Grants: Perspectives and Controversies" said that there were "21 funded block grants, totaling about $ 50.8 billion in FY2014" which represented "less than 10% of total federal grant-in-aid assistance." The CRS report provided arguments for both side of the debate on the use of block grants. Those who support block grants, say that they were more cost-effective because they reduce federal administrative costs related to state and local government paperwork requirements.
277:, received $ 164 million. In fiscal year 2004, Wyoming was guaranteed to receive at least $ 15 million, California $ 133 million. Wyoming thus received $ 35.3 per person, California only $ 4.7 per person. The formulas for how much money states receive favors small states. Most grant programs have a minimum amount per state, usually 0.5% or 0.75% of the total money given to states in the program. Similar patterns exist for other block grant formulas. An analysis exists in the book
458:
governments, 50 cents is spent on ADHA. Consequently, the authors argue that block grants can achieve important outcomes, and that categorical grants are not necessary to force spending on particular issues. However, block grant critics would likely argue that this 50% spending rate on ADHA is a sign of ineffectiveness, as it means that local governments are spending the rest of the funding on unrelated issues.
258:
give local governments broad flexibility over their use of federal funds, recipients can turn these grants into savings, or spend them on other matters. As a result, it is often difficult to track in detail how these funds are being used, and what greater impact they have, thus making block grants very vulnerable to funding reductions or freezes.
283:. Additionally, individual states may provide block grants to their political subdivisions, such as counties, towns, and school districts. Despite the various theoretical arguments in favor of block grants, existing research has mainly found that block grants are generally ineffective in achieving policy goals.
100:, for example, each state would receive a set amount of money from the federal government. The block grants can be set based on "per capita" or on the needs of the state. Each state has to fill any funding gap if there is a difference between their spending and the amount set by the federal government.
257:
study, since 2000, funding for the 13 major low-income health, housing, and social services block grants has fallen by 37%, after adjusting for inflation and population growth. This sharp reduction in funding can be attributed to the basic structure of block grants. Since block grants are designed to
182:
report, local government officials compared to federal government officials are "closer to the people" and therefore better able to identify local needs. According to the ACIR report, advocates say block grants allow local governments to experiment with new approaches to solving various problems that
297:
In 2009, Carl
Stenberg wrote that block grants "could contribute a greater degree of flexibility to the intergovernmental system, but their potential often overstated and difficult to realize." He said that there was no empirical evidence that block grants reduce administrative costs as these costs
535:
reported on
January 31, 1987, that "The elimination of the program of general revenue sharing on September 30, 1986 after several years of significant cuts in other Federal aid, has prompted layoffs, curtailment of police protection and other services, and higher taxes and user fees in thousands of
177:
article, the authors provided background on health care provisions for the poor in the 1950s and 1960s. Prior to the creation of
Medicaid in 1965, health providers were reimbursed directly on a per-capita basis. When the cap was spent, states were responsible for cutting health costs to make up the
71:
While this increases the town's utility, it does not maximize the town's spending on education. Therefore, if the goal of a grant program is to encourage spending on a particular good, a categorical grant may be more effective in achieving this goal than a block grant, as most block grant critics
457:
On the other hand, there is limited research that suggests that block grants have a positive impact on policy outcomes. One study in the
Netherlands evaluating the ADHA (Assistance in Daily Housekeeping Activities) block grant finds that for each additional euro of grant money given to local
250:(TANF) block grant". The Advisory Commission on Intergovernmental Relations (ACIR), which provided federal intergovernmental expertise, "played an important role in the design and creation of a host of intergovernmental policy initiatives, including block grants. ACIR was eliminated in 1996.
569:
Block grants are fixed sums of money given to state or local governments to support program activities and administration. Compared with other grants, block grants give state and local-level recipients more flexibility in program design and implementation with reduced federal oversight and
343:
study said that, "Unlike block grants, entitlement programs such as
Medicaid and SNAP are highly responsive to changes in need. They grow immediately and automatically when need rises. This growth is critically important during recessions...Programs like Medicaid and SNAP would lose this
143:
had mentioned using CMS' authority to "pursue block grants during a meeting with state
Medicaid directors in the fall" of 2018. Verma promotes block grants but she has "faced heavy scrutiny" from CMS lawyers in her attempts to "insert block grant language into federal guidance."
40:
of a specified amount from a larger government to a smaller regional government body. Block grants have less oversight from the larger government and provide flexibility to each subsidiary government body in terms of designing and implementing programs. Block grants,
66:
The figure demonstrates the impact of an education block grant on a town's budget constraint. According to microeconomic theory, the grant shifts the town's budget constraint outwards, enabling the town to spend more on both education and other goods, due to the
612:
Block grants are a form of grant-in-aid that the federal government uses to provide state and local governments a specified amount of funding to assist them in addressing broad purposes, such as community development, social services, public health, or law
425:
reflecting the expense of operating the London
Underground and the fact the Greater London Authority is unable to raise a transport levy on council tax unlike other metropolitan counties in the UK (though since 2012 the Mayor of London's
293:
The budget for FY 2005 under
President Bush budget converted many federal programs into block grants to save $ 1.8 billion. Eighteen community development block grant programs were consolidated into one Commerce Department program.
160:'s 1949 report recommended the creation of "a system of grants" based "upon broad categories—such as highways, education, public assistance, and public health—as contrasted with the present system of extensive fragmentation." The
378:, had argued for independence even if it meant losing the large annual block grant from the Danish state.) If Greenland were to become an independent country, the annual block grant from Denmark to Greenland would cease.
239:, from 1980 to 2001, the number of federal block grant programs went from 450 to 700. The grants were aimed at a wide range of activities from education to healthcare, transportation, housing and counterterrorism.
178:
difference by restricting who, what and how much care one could access. As a result, only 3.4 million people in the US were able to access these benefits in the 1960s before
Medicaid. According to an October 1977
330:
report, the amount of basic assistance that block grants provide has also fallen, as local governments spend their federal funds on other purposes. For example, in 2015, only half of the funds received from the
335:
block grant were spent on core welfare reform activities such as cash assistance, work activities, and child care. The rest of the funds were spent on a variety of different matters unrelated to the program.
61:
When Town A is offered a block grant of $ 375,000, the budget constraint shifts outwards from AB to CD. Town A chooses point Y on CD, as it spends $ 75,000 more on education and $ 300,000 more on private
1064:
235:
under
President Reagan consolidated 77 existing anti-poverty grants into nine new block grants with a budget representing c.25% less than the programs they replaced. According to the
93:
to individual states and local governments to help support various broad purpose programs, such as law enforcement, social services, public health, and community development.
135:
was creating new guidelines to overhaul Medicaid in order to reduce health care costs for the poor through block grants, bypassing Congress. According to the same article,
179:
171:, Congress enacted the 1966 Partnership for Health Act and the 1968 Omnibus Crime Control and Safe Streets Act of 1968 (Safe Streets Act). In a March 16, 2017
242:
In 1996, HHS and education moved towards "nationalizing trends", there was an attempt made towards devolution of welfare policy. In 1996, Congress "replaced
997:
358:
Greenland receives a block grant from Denmark. The block grant equals about two-thirds of Greenland's government budget or about one-quarter of the entire
1092:
692:
183:
other state and local officials can learn from. Such innovation would not be possible if funding were provided through restrictive categorical grants.
860:
519:
506:
136:
1340:
Kattenberg, Mark; Vermeulen, Wouter. "The stimulative effect of an unconditional block grant on the decentralized provision of care".
1233:
1360:
374:
in 2017, observers considered it a win for the "slow-independence" faction instead of the "now-independence" faction. (His opponent,
1203:
1220:
He said potential economic independence via the exports of natural resources could guarantee Greenland independence from Denmark.
332:
247:
243:
90:
505:
There was a cap on the amount of money available, which is similar to the block grants proposed by the Republicans in 2017. See
340:
327:
254:
1365:
898:
1099:
309:
231:
Revenue sharing lost federal support under Reagan and was replaced by block grants in smaller amounts in 1987. The 1981
642:
266:
161:
1125:
971:
961:
415:
387:
168:
811:
Goodman-Bacon, Andrew J.; Nikpay, Sayeh S. (March 16, 2017). "Per Capita Caps in Medicaid—Lessons from the Past".
813:
262:
173:
787:
607:
430:
has been introduced, allowing the Mayor to attach a levy on property development to serve a similar function).
320:
313:
232:
153:
104:
427:
305:, from 2008 through 2013, categorical grant funding decreased for 29 out of 50 states as did block grants.
302:
132:
17:
194:" was developed and implemented from 1972 to 1986, to replace block grants. Through revenue sharing, the
418:
because only a relatively small percentage of the tax revenue is collected by the devolved governments.
1287:
1052:. Intergovernmental Management for the 21st Century. The Brookings Institution Press. pp. 263–286.
370:
was reelected with a strong majority as the leader of the largest Greenlandic pro-independence party
1023:
399:
236:
353:
215:
1370:
1178:
1048:
Stenberg, Carl (November 1, 2009). Conlan, Timothy J.; Posner, Paul L.; Rivlin, Alice M. (eds.).
782:
753:
1292:
1264:
1179:"Greenland isn't in a rush to fight climate change because it's good for the country's economy"
634:
363:
211:
195:
115:
998:"Block-Granting Low-Income Programs Leads to Large Funding Declines Over Time, History Shows"
225:
57:
626:
496:, in that the latter has stricter and more specific provisions on the how it is to be spent.
755:
422:
279:
1063:
Smith, Joanna; Gasparian, Hovanes; Perry, Nicholas; Capinpin, Fatima (November 18, 2013).
8:
912:
Conlan, Timothy J. (1984). "The Politics of Federal Block Grants: From Nixon to Reagan".
442:
391:
937:
562:
531:
375:
220:
1259:
967:
929:
868:
838:
830:
638:
627:
493:
467:
434:
157:
42:
921:
822:
411:
1315:
892:
754:
United States Advisory Commission on Intergovernmental Relations (October 1977).
191:
103:
Block grants are the topic of debate in the United States. According to the 2014
46:
1151:
960:
Conlan, Timothy J.; Posner, Paul L.; Rivlin, Alice M., eds. (November 1, 2009).
894:
228:, the federal government "distributed $ 4.5 billion to 39,000 municipalities".
472:
438:
395:
167:
In the late 1960s, with both Congress and the White House under control of the
1354:
933:
872:
834:
600:
187:
111:
68:
312:
report, in 2008 block grants received the lowest average score based on the
842:
86:
37:
861:"End of Federal Revenue Sharing Creating Financial Crises in Many Cities"
826:
367:
199:
156:(CRS) report says the first true block grant was in 1966. In 1949, first
140:
893:
Finegold, Kenneth; Wherry, Laura; Schardin, Stephanie (April 21, 2004).
1098:(Report). Budget of the United States, FY2009 Analytical Perspectives.
941:
661:
446:
274:
203:
1065:"Categorical Funds: The Intersection of School Finance and Governance"
298:
were transferred from the federal government to the recipient states.
1234:"Redaktør: Grønlændere vil ikke ofre levestandard for selvstændighed"
693:"How Would Republican Plans for Medicaid Block Grants Actually Work?"
475:, a political tendency in the United States which favors block grants
925:
1319:
403:
224:, in FY 1986 the year before revenue sharing was eliminated by the
127:
119:
97:
270:
1056:
371:
114:
regarding the effectiveness of block grants intensified as the
561:
Finegold, Kenneth; Wherry, Laura; Schardin, Stephanie (2004).
49:
are three types of federal government grants-in-aid programs.
895:"Block Grants : Historical Overview and Lessons Learned"
407:
362:
of Greenland. Economic stability is seen as a basis for full
1288:"Løkke: Selvstændigt Grønland skal klare sig selv økonomisk"
783:"Appendix A. The History of Federal Block Grant Authorities"
714:
1111:
1062:
708:
706:
207:
556:
554:
552:
359:
703:
1204:"Greenland's mineral rush 'could lead to independence'"
180:
U.S. Advisory Commission on Intergovernmental Relations
1087:
1085:
854:
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686:
684:
682:
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678:
560:
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273:
received $ 17.5 million and the most populous state,
594:
592:
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588:
586:
584:
582:
580:
578:
804:
1342:
CPB Netherlands Bureau for Economic Policy Analysis
1082:
849:
810:
713:Pradhan, Rachana; Diamond, Dan (January 11, 2019).
675:
959:
599:Dilger, Robert Jay; Boyd, Eugene (July 15, 2014).
575:
963:Intergovernmental Management for the 21st Century
886:
715:"Trump wants to bypass Congress on Medicaid plan"
1352:
992:
990:
966:. The Brookings Institution Press. p. 368.
445:will be able to collect an equivalent amount of
390:was implemented in the late 1990s, creating the
1339:
1279:
1231:
1024:"$ 2.5 Trillion Budget Plan Cuts Many Programs"
1285:
955:
953:
951:
712:
601:"Block Grants: Perspectives and Controversies"
333:TANF (Temporary Assistance for Needy Families)
1118:
1041:
987:
749:
747:
745:
743:
741:
739:
737:
735:
656:
654:
344:responsiveness if turned into block grants."
110:In February 2017, the national debate in the
441:government to Scotland will be cut, but the
1050:Block Grants and Devolution: A Future Tool?
948:
564:Block Grants: Details of the Bush Proposals
288:Block Grants: Details of the Bush Proposals
52:
1307:
732:
651:
598:
414:have been funded by block grants from the
137:Centers for Medicare and Medicaid Services
1257:
1176:
567:. Washington, D.C.: The Urban Institute.
1225:
1047:
85:A block grant in the United States is a
56:
775:
690:
421:Westminster provides a block grant for
248:Temporary Assistance for Needy Families
244:Aid to Families with Dependent Children
91:federal government of the United States
14:
1353:
1260:"Rundspørge: Selvstændighed eller ej?"
1130:Center on Budget and Policy Priorities
1002:Center on Budget and Policy Priorities
911:
858:
624:
328:Center on Budget and Policy Priorities
1313:
314:Program Assessment Rating Tool (PART)
1100:U.S. Office of Management and Budget
1016:
859:Gruson, Lindsey (January 31, 1987).
757:Block Grants: A Comparative Analysis
518:Compared to 81 million in 2017. See
479:
310:U.S. Office of Management and Budget
190:(1969–1974) a new strategy, called "
1314:Black, Andrew (November 30, 2010).
1286:Ritzaus Bureau (January 19, 2018).
1152:"Danish doubts over Greenland vote"
691:Carroll, Aaron (February 6, 2017).
24:
286:According to a 2004 book entitled
267:Critical Infrastructure Protection
96:Through a block grant program for
25:
1382:
1232:Bjerregaard, M. (July 27, 2017).
1126:"TANF Reaching Few Poor Families"
381:
1361:Devolution in the United Kingdom
629:Public Finance and Public Policy
416:government of the United Kingdom
388:devolution in the United Kingdom
125:According to a January 11, 2019
80:
1333:
1251:
1196:
1170:
1144:
905:
814:New England Journal of Medicine
536:counties, cities and villages."
524:
512:
499:
263:Homeland Security Grant Program
174:New England Journal of Medicine
89:of a specified amount from the
1177:Rossi, M. (October 22, 2016).
788:National Council on Disability
618:
608:Congressional Research Service
486:
452:
402:, the devolved governments of
321:Congressional Research Service
233:Community Services Block Grant
154:Congressional Research Service
105:Congressional Research Service
13:
1:
633:. Worth Publishers. pp.
543:
492:A block grant differs from a
428:Community Infrastructure Levy
147:
75:
1366:Economy of the United States
1069:Center for American Progress
763:. The Commission. p. 58
303:Center for American Progress
269:, the least populous state,
7:
1258:Olsen, D. (July 27, 2017).
914:Political Science Quarterly
461:
437:, the block grant from the
118:decided whether to convert
10:
1387:
351:
347:
122:to a block grant program.
625:Gruber, Jonathan (2015).
400:Northern Ireland Assembly
326:According to a June 2015
261:In 2003, under the state
237:General Accounting Office
162:Eisenhower Administration
1316:"Q&A: Scotland Bill"
354:Greenlandic independence
53:Graphical representation
433:Under the terms of the
192:special revenue sharing
47:general revenue sharing
792:. Washington, DC. 2013
662:"Medicaid 101: MACPAC"
364:political independence
196:United States Congress
116:United States Congress
63:
1093:Crosscutting Programs
226:Reagan administration
198:appropriated federal
60:
27:Government grant type
897:. Washington, D.C.:
827:10.1056/NEJMp1615696
423:Transport for London
308:According to a 2009
301:According to a 2013
280:Sizing Up the Senate
253:According to a 2017
188:Nixon Administration
139:(CMS) Administrator
133:Trump Administration
1158:. November 27, 2008
1102:. 2009. p. 150
1028:The Washington Post
1004:. February 21, 2017
443:Scottish Government
392:Scottish Parliament
366:from Denmark. When
865:The New York Times
697:The New York Times
532:The New York Times
376:Vittus Qujaukitsoq
221:The New York Times
64:
43:categorical grants
1112:National Archives
821:(11): 1005–1007.
494:categorical grant
480:Explanatory notes
468:Categorical grant
435:Scotland Act 2012
158:Hoover Commission
16:(Redirected from
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1210:. July 25, 2012
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1132:. June 16, 2016
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218:. According to
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5:
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1371:Grants (money)
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920:(2): 247–270.
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644:978-0470563588
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610:. p. 27.
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202:to share with
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69:income effect.
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