GrantsGrants--inin--AidAidCategorical GrantsCategorical Grants –– appropriated by appropriated by Congress for specific purposes; airport Congress for specific purposes; airport building, welfare or school lunches. building, welfare or school lunches. Medicaid and Aid to Families with Medicaid and Aid to Families with Dependent Children = 85% of the Dependent Children = 85% of the spending on Cat. Grants (spending on Cat. Grants (ProjectProject//FormulaFormula))Block GrantsBlock Grants -- appropriated by Congress appropriated by Congress for broad activities; social services, health for broad activities; social services, health services or public education. Ronald services or public education. Ronald Reagan favored this type of grant; New Reagan favored this type of grant; New FederalistsFederalists-- it gives the federal it gives the federal government less control; Governors like government less control; Governors like them; Mayors dislike them.them; Mayors dislike them.

Creeping CategorizationCreeping CategorizationToday, block Today, block grants still exist, grants still exist, but Congress is but Congress is always tempted to always tempted to add add ““stringsstrings”” that that set requirements set requirements for how federal for how federal grants are to be grants are to be spent. Thus, block spent. Thus, block grants are grants are becoming more becoming more categorical. categorical.

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Case Study: Welfare ReformCase Study: Welfare ReformBefore 1996, welfare payments were Before 1996, welfare payments were distributed through a program known as distributed through a program known as Aid to Families with Dependent ChildrenAid to Families with Dependent Children (AFDC). In the 1980s, the program drew (AFDC). In the 1980s, the program drew heavy criticism. There were numerous heavy criticism. There were numerous stories of "stories of "welfare queenswelfare queens", women who ", women who cheated the welfare system, receiving cheated the welfare system, receiving multiple checks each month and growing multiple checks each month and growing wealthy while not working. wealthy while not working. The AFDC system was under constant The AFDC system was under constant attack in the 1980s; these continued in the attack in the 1980s; these continued in the 1990s, with Presidential candidate Bill 1990s, with Presidential candidate Bill Clinton vowing to "end welfare as we know Clinton vowing to "end welfare as we know it."it."

Welfare Reform Act of 1996Welfare Reform Act of 1996Toughening the criteria for receiving Toughening the criteria for receiving welfare was the third point (out of ten) in welfare was the third point (out of ten) in the Republicansthe Republicans‘‘ Contract with AmericaContract with America..Under the 1996 law, no person could Under the 1996 law, no person could receive welfare payments for more than receive welfare payments for more than five years, consecutive or nonconsecutive. five years, consecutive or nonconsecutive. The most controversial change was The most controversial change was transferring welfare to a transferring welfare to a block grantblock grant system. Some states simply kept the system. Some states simply kept the federal rules, but others used the money federal rules, but others used the money for nonfor non--welfare programs.welfare programs.Once there were no strings attached, the Once there were no strings attached, the states could almost completely cut funding states could almost completely cut funding for welfare.for welfare.California Reeling California Reeling -- CaliforniaCalifornia’’s Zigzag on Welfare s Zigzag on Welfare Rules Worries Experts Rules Worries Experts -- Series Series -- NYTimes.comNYTimes.com

""RockinRockin' In The Free World"' In The Free World" Neil Young (1989)Neil Young (1989)

There's colors on the streetThere's colors on the street Red, white and blueRed, white and blue People People shufflinshufflin' their feet' their feet People People sleepinsleepin' in their shoes' in their shoes But there's a But there's a warninwarnin' sign' sign on the road aheadon the road ahead There's a lot of people There's a lot of people sayinsayin'' we'd be better off deadwe'd be better off dead Don't feel like Satan,Don't feel like Satan, but I am to thembut I am to them So I try to forget it,So I try to forget it, any way I can.any way I can.

Keep on Keep on rockinrockin' in the free world,' in the free world,

I see a woman in the nightI see a woman in the night With a baby in her handWith a baby in her hand Under an old street lightUnder an old street light Near a garbage canNear a garbage can Now she puts the kid away,Now she puts the kid away, and she's gone to get a hitand she's gone to get a hit She hates her life,She hates her life, and what she's done to it and what she's done to it

There's one more kidThere's one more kid that will never go to schoolthat will never go to school Never get to fall in love,Never get to fall in love, never get to be cool.never get to be cool.

Keep on Keep on rockinrockin' in the free world,' in the free world,

We got a thousand points of lightWe got a thousand points of light For the homeless manFor the homeless man We got a kinder, gentler,We got a kinder, gentler, Machine gun handMachine gun hand We got department storesWe got department stores and toilet paperand toilet paper Got Got styrofoamstyrofoam boxesboxes for the ozone layerfor the ozone layer Got a man of the people,Got a man of the people, says keep hope alivesays keep hope alive Got fuel to burn,Got fuel to burn, got roads to drive.got roads to drive.

Keep on Keep on rockinrockin' in the free world' in the free world

MandatesMandatesunfunded mandateunfunded mandate –– when the when the federal government requires the states federal government requires the states or businesses to carry out specific or businesses to carry out specific actions or policies, but does not actions or policies, but does not appropriateappropriate any funds for that purpose. any funds for that purpose. ExampleExample: : The The Americans with Americans with Disabilities ActDisabilities Act requires nearly all requires nearly all American business owners to make American business owners to make their business premises available to their business premises available to disabled customers.disabled customers.Unfunded Mandates Reform Act of 1995Unfunded Mandates Reform Act of 1995 S. 1 [104th]: Unfunded Mandates Reform Act of 1995 (S. 1 [104th]: Unfunded Mandates Reform Act of 1995 (GovTrack.usGovTrack.us))NEA: Court Hears NEA Appeal in NCLB Unfunded Mandates LawsuitNEA: Court Hears NEA Appeal in NCLB Unfunded Mandates Lawsuit