Devolution, Block Grants, and Revenue Sharing in Federalism

Devolution decentralizes the control and administration of federal programs to return authority to the states, increasing state autonomy in economic and social policy.
President Richard Nixon began efforts to roll back national authority after his election in 1968 by utilizing block grants.
Block grants are a type of grant-in-aid that provides federal funding while granting state, local, and regional authorities control over how funds are spent, lessening federal influence.
President Ronald Reagan expanded the use of block grants for social welfare programs after pledging to transfer government operations and funding to state and local levels in his 1980 Republican Party nomination speech.
Specific federal block grant uses include:
- Department of Health and Human Services block grants to establish treatment programs for drug and alcohol addictions and assist individuals c struggling with mental illness.
- U.S. Department of Energy block grants to assist state and local governments in reducing energy use, decreasing reliance on oil and gas, and improving energy efficiency.

Revenue sharing involved the federal government apportioning tax money to the states with no strings attached, allowing funds to be used for any governmental purpose.
Federal revenue sharing ended in 1986, with ongoing federal deficits preventing its continuation.

Democratic president Bill Clinton signed the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA), devolving social welfare programs to the states.
PRWORA replaced the Roosevelt New Deal-era Aid to Families with Dependent Children (AFDC) with Temporary Assistance for Needy Families (TANF).
TANF introduced work requirements and placed time limits on receiving welfare assistance.
Block grants provided states with increased authority to establish and enforce the rules governing welfare programs.