Federal Subsidies to the States

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.