Devolution, Block Grants, and Federalism

Devolution and Block Grants

  • Devolution: The return of authority for federal programs to the states, decentralizing program control and administration to increase state autonomy in economic and social policy.
  • Block Grants: A form of grant-in-aid that provides federal money for public policies while increasing state, local, and regional discretion on spending and reducing federal influence.
  • Presidential Initiatives:
    • Richard Nixon: Promised after his 1968 election to roll back national authority expansion, utilizing block grants as a primary tactic.
    • Ronald Reagan: Promised in his 1980 Republican Party nomination speech to transfer government operations and funding sources to state and local levels, expanding block grant usage for social welfare programs.
  • Block Grant Applications:
    • Department of Health and Human Services: Provides block grants to treat drug and alcohol addictions and assist those with mental illness.
    • U.S. Department of Energy: Provides block grants to help state and local governments reduce energy use, reliance on oil and gas, and enhance energy efficiency.

Federal Revenue Sharing

  • Definition: A practice where the federal government distributed tax money to states with no strings attached, allowing funds to be used for any governmental purpose.
  • Termination: Ended in 1986 due to mounting federal deficits, which continue to prevent its usage.

Social Welfare Policy Reform

  • Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA): Signed by Democratic president Bill Clinton to devolve federal social welfare programs to the states.
  • Transition from AFDC to TANF: PRWORA replaced Aid to Families with Dependent Children (AFDC)—a legacy of Roosevelt's New Deal—with Temporary Assistance for Needy Families (TANF).
  • TANF Structure: Utilized block grants to give states broader authority to establish and enforce program rules, introducing work requirements and placing time limits on welfare assistance.