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N351 The Economics Of Federalism

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Grand Canyon University
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Running head: THE ECONOMICS OF FEDERALISM
1
The Economics of Federalism
Institution affiliation
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THE ECONOMICS OF FEDERALISM 2
Introduction
Since the inception of the US constitution, the federal government and state government's
interdependence is becoming stronger and stronger. Dilger & Beth (2016) highlight that the
states once enjoyed their independence from the federal government. However, the states
government places additional demands on the central government. It means that the federal
government plays a considerable role in the states' affairs and local government. With the
establishment of the feudal constitution, the federal government divides the portion of its
resources to the state governments. It is involved in the states affairs by funding and overseeing
sectors such as health care, transportation, energy, education, and public safety.
Description of block grants, categorical grants, and unfunded mandates
Dilger & Beth (2016) allude that the federal government supports and funds some state
activities through grants, including categorical grants, block grants, or unfunded mandates.
Block grants are the amount of money reimbursed by the federal government to local and state
governments to fund ongoing programs or projects. The government releases block grants to the
counties or states to support programs such as education, substance abuse, crime prevention,
public health, community, etcetera. The federal government has less oversight for the block
grants. State and local governments have great flexibility in implementing and designing
programs.
Categorical grants are the amount of money allocated by Congress to states or counties to
fund a specific program or project. Unlike block grants, categorical grants are only spent to
perform a specific intended task (Dilger, 2015). It lacks flexibility as the federal government
strictly monitors how it is spent on whether the intended goal was achieved. An unfunded

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Running head: THE ECONOMICS OF FEDERALISM 1 The Economics of Federalism Institution affiliation Date 2 THE ECONOMICS OF FEDERALISM Introduction Since the inception of the US constitution, the federal government and state government's interdependence is becoming stronger and stronger. Dilger & Beth (2016) highlight that the states once enjoyed their independence from the federal government. However, the states’ government places additional demands on the central government. It means that the federal government plays a considerable role in the states' affairs and local government. With the establishment of the feudal constitution, the federal government divides the portion of its resources to the state governments. It is involved in the states’ affairs by funding and overseeing sectors such as health care, transportation, energy, education, and public safety. Description of block grants, categorical grants, and unfunded mandates Dilger & Beth (2016) allude that the federal government supports and funds some state activities through grants, including categorical grants, block grants, or unfunded mandates. Block grants are the amount of money reimbursed by the federal government to local and state governments to fund ongoing programs or projects. The government releases block grants to the counties or states to support programs such as education, substance abuse, crime prevention, public health, community, etcetera. The federal government has less oversight for the block ...
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