Future of Social Programs

Report Outline
Change in Direction Under Nixon
Origins and Growth of Federal Aid
Outlook for President's ‘New Federalism’
Special Focus

Change in Direction Under Nixon

President Nixon's second term may well mark a historic break in the steady expansion of the federal government's role as purveyor of social programs—that is, programs for improving the social and economic conditions of life for particular segments of the population plus programs for general community betterment. The changes Nixon sought in the name of the “new federalism” during his first term are being pushed harder than ever and with less regard for objections from Congress. The new impetus for restructuring the nation's social programs stems from the President's landslide re-election victory, which the White House interprets as a mandate from the people, and from his determination to avert deeper budget deficits or tax increases. To cut back spending, he acted on two ideas embedded in conservative thinking, that of decentralizing government and making it more efficient.

The essence of the “new federalism,” as described by the President in his first year in office, is “to help regain control of our national destiny by returning a greater share of control to state and local authorities.” He proposed at that time “a comprehensive and effective delegation of federal programs to state and local management.” The idea was attractive to most governors, mayors, and members of Congress. The lawmakers took the first step toward implementing the plan by passing the State and Local Fiscal Assistance Act for general revenue sharing in October 1972. Since that time, the administration has aroused suspicion that revenue sharing is being used to phase out social programs that the administration regards with disfavor. Critics of the “new federalism” fear that the programs will not survive state or local option.

The great growth of federal activity in social programing dates from the emergency relief programs instituted 40 years ago to meet the crisis of the Great Depression. At that time, Franklin D. Roosevelt introduced a guiding principle that was new to public policy: that the federal government had a responsibility for maintaining the well-being not only of society as a whole but of the individuals who form it. This concept, backed by legislation and approved by the judiciary, took root during the New Deal. Over the years it fostered a growth of social programs that ultimately touched the lives of virtually every person in the nation. The range of services available through federal sponsorship became extensive: it embraced income-maintenance, a vast array of education, health, housing and community-improvement benefits. Recent additions are consumer and environmental protection.