Federal Subsidies to the States

December 13, 1924

Report Outline
Questions of Constitutionality

A recommendation against any further extension of the? system of federal aid to the states, which during the last few years has come to be recognised as one of the most important factors operating to centralize authority in the national government, was made by President Goolidge in his budget message at the opening of the present session of Congress.

After calling attention to the fact that the Budget Bureau's estimates for the fiscal year 1926 call for the distribution of more than $109,000,000 to the states under various federal aid acts, the President said:

I am convinced that the broadening of this field of activity is detrimental both to the Federal and State Governments. Efficiency of Federal operations is impaired as their scope is unduly enlarged. Efficiency of State Governments is impaired as they relinquish and turn over to the Federal Government responsibilities which are rightfully theirs. I am opposed to any expansion of these subsidies. My conviction is that they can be curtailed with benefit, to both the Federal and State Governments.

ISSUE TRACKER for Related Reports
Federal/State Government Relations
Apr. 27, 2018  Federal-State Relations
Oct. 15, 2010  States and Federalism
Sep. 13, 1996  The States and Federalism
Feb. 21, 1986  State Financing
May 24, 1985  Federalism under Reagan
Apr. 03, 1981  Reagan's ‘New Federalism’
Feb. 25, 1977  Resurgence of Regionalism
Apr. 07, 1971  State Capitalism
Dec. 23, 1964  Federal-State Revenue Sharing
Jul. 30, 1940  Federal-State Relations Under Grants-in-Aid
Jul. 03, 1937  Regional Planning and Development
Apr. 24, 1936  Reform of Municipal Accounting
Jul. 10, 1933  Regional Planning by the Federal Government
Dec. 13, 1924  Federal Subsidies to the States
State, Local, and Intergovernmental Relations