Federal Subsidies to the States

Archive Report

Theories of Federal Aid

Several factors are now directing public attention to the American subsidy system. Chief among them are the rapid growth of federal aid to the states in recent years, the method of apportioning such grants and the conditions attached to the federal payments, the new forms being taken by federal aid, and the extension of federal functions involved in the growth of the system. Current efforts to relieve economic distress have led to the introduction at the present session of Congress of various measures to extend or modify the federal-aid system. Unofficial proposals looking to changes in the system are also being advanced by interested groups and individuals. Prominent among these is the proposal to relieve the states, at least temporarily, of ...

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