1. Cooperative Federalism
AP US Government
Unit 3: Federalism

2. Q1. Cooperative Federalism (aka: Marble Cake!)
A. Defined: Levels of government share
responsibilities (Cooperate together) to get
government goals accomplished
B. From: 1930s (The Great Depression) to now!
C. No longer clear areas of responsibility, lines blurred

3. Q2. Coop. Fed.: 3 elements of “Shared Programs”
1. Shared costs: to receive federal aid, states must pay for part of a program (ex. Medicaid) 2. Federal guidelines: to receive funding, state programs must follow federal rules and regulations (No Child Left Behind) 3. Shared administration: must follow federal guidelines, but administered according to the state’s directives (means states decide how program is carried out, ex. Medicaid)

4. Q3. Devolution (aka: New Federalism) & its examples
Devolution defined: the transferring of responsibility for policies from federal government to state & local governments (get back to Dual Federalism)
When: W/election of Reagan (1980s) & Republican majority in Congress (1990s)
Use of Block Grants became very popular
Examples include:
Repealing federal speed limit laws
Allowing states more freedom to deal with welfare policy
Making it harder for state prisoners to seek relief in federal courts

5. Q4. Fiscal Federalism (Grants-in-Aid)
Since 1970s:
Fiscal Federalism: the pattern of taxing, spending and providing grants in the federal system
The key to national governments relations with state & local governments under Coop. Fed.
This relationship transfers the burden of paying for local/state services from those who pay state & local taxes to those who pay national taxes (citizens of other states)

6. Q5. Federal $$ over the years!
Federal Grant dollars have increased from $10B in 1950s to over $600B especially since the 1990s!
Currently over $600 Billion
This aid = 25% of all $$$ spent by state & local governments
Makes up 17% of federal tax expenditures (Congress spending of tax $$; 17% of $4 trillion)

7. Q6. Two Categories of Federal Grants-in-aid
Categorical Grants
Block Grants
Categorical Grants make up the BIGGEST portion!

8. Q7. Categorical Grants & their strings
1. 80% of all aid to state and local governments.
2. Federal funding to states for specific purposes, w/lots of strings attached, states can take it or leave it.
(ex. highway funds contingent on drinking age)
3. Ensures state compliance & policy uniformity (all states the same)
Examples of strings:
Non-discrimination provisions: states aid cannot be used for discriminatory purposes against minorities, women or other groups
Union clause: in states where unions legal, cannot pay workers below union established wages
Environmental impact statement
Community involvement in the planning of project

9. Q8. Cross-over sanctions & Cross-cutting requirements (more strings):
Fed. Govt. can use Cross-over sanctions and/or Cross-cutting requirements to grants as part of their condition:
Cross-over sanctions: Use of federal dollars in one program to influence state & local policy in another area.
Ex. Funds for highway construction withheld unless state raises drinking age to 21
Cross-cutting requirements: when a condition on one federal grant in extended to all activities supported by federal funds regardless of their source
Ex. Title VI of Civil Rights Act of 1964: bars discrimination in in use of federal funds because of race, color, national origins, gender or physical disability
If a university illegally discriminates in one program, it may lose federal aid it receives in all areas

10. Q9. 2 types of Categorical Grants
Two types of categorical grants:
Project grants: made on basis of competition application process & merits of project (Biofuel Grant)
Formula Grants: calculation on basis of some need, the formula dictates the amount, formula made up by Congress (School Breakfast Program/Grant)

11. Q10. Block Grants
2nd category of Grants available under Cooperative federalism:
Block grants (Nixon & 1970s):
1. Smaller percentage of grants-in-aid; almost automatically given to the state/local governments
2. Federal funding provided to states in chunks or “blocks” with only broad purpose defined
3. States have greater flexibility with respect to use of federal funds, they get to decide how to spend, examples:
Community Development (housing, anti poverty programs)
Social Services (child abuse prevention, mental health)
Energy Efficiency, etc.
4. Created in 1970s: due to complaints by state & local govts. of long paperwork process & too many strings involved w/categorical grants
5. Popular during Devolution!

12. Q11. Mandates A/B. Defined: C. Medicaid:
New rules/orders with little to no funding by the Fed. Govt.
all/most funding comes from state govts. (unfunded mandate)
makes states wish they never accepted the grant
C. Medicaid:
Healthcare for poor people, administered by states
National to pay majority of the bill, states pick up rest
Medicaid has expanded in past 2 decades (children, pregnant women, elderly poor) this has put strains on state budgets as national has not added funding, states must!
D. Other examples of Unfunded Mandates:
Americans with Disabilities Act: all building and offices must be handicap access ready
Clean Air & Water Act: set standards for how clean without funding, states must monitor and fund
Post 9/11 security laws
No child Left Behind: standards for all in education
(federalism in a hurry)

13. Catalog of Federal Domestic Assistance (CFDA)
Primary Purpose:
To assist users in identifying programs that meet specific objectives of the potential applicant, and to obtain general information on Federal assistance programs.
In addition, the intent of the Catalog is to improve coordination and communication between the Federal government and State and local governments.
Programs defined as:
Any function of a Federal agency that provides assistance or benefits for a State or States, territorial possession, county, city, other political subdivision, grouping, or instrumentality thereof; any domestic profit or nonprofit corporation, institution, or individual, other than an agency of the Federal government.

14. CFDA cont… How does CFDA define :assistance” & “benefits”:
refers to: the transfer of money, property, services, or anything of value, the principal purpose of which is to accomplish a public purpose of support or stimulation authorized by Federal statute (law).
Assistance includes: grants, loans, loan guarantees, scholarships, mortgage loans, insurance, and other types of financial assistance, including property, technical assistance, counseling, statistical, and other expert information; and service activities.
How many programs the CFDA provides:
2296 programs
Top 5 departments in Nat. Gov. issuing most federal assistance:
Dept. of Health & Human Services
Dept. of Interior
Dept. of Agriculture
Dept. of Justice
Dept. of Education

15. CFDA cont… Categorical grants:
1. Make up more than 80% of all aid to state and local governments.
2. Federal funding to states for specific purposes, with lots of strings attached. States can take it or leave it. (ex. highway funds contingent on drinking age)
Two types of categorical grants:
Project grants: made on basis of competition application process & merits of project (Biofuel Grant)
Formula Grants: calculation on basis of some need, the formula dictates the amount, formula made up by Congress (School Breakfast Program/Grant)

16. School Breakfast Program: an example of Formula Grant
When: 1966 through a Congressional Act
Objective: To assist States in providing a nutritious nonprofit breakfast service for school children, through cash grants and food donations.
Eligibility requirements/what you have to agree to:
State and U.S. Territory agencies (except territories subject to the requirements to the Compact of Free Association); public and nonprofit private schools of high school grade and under; public and nonprofit private residential child care institutions, except Job Corps centers
All schools that participate must agree to serve free and reduced price meals to eligible children, and operate a nonprofit breakfast program that is available to all children regardless of race, sex, color, national origin, age, or disability.
Formula funding: yup, did you read it, pretty complicated, designed by Congress, don’t worry, you don’t have to know it, but why its called formula grant!
Requirements (reports, audits, records): Oversight: making sure the terms of grant & all of its strings are being followed, all $$ spent properly on the cause of grant!

17. BIOFUEL Infrastructure Program: an example of Project Grant:
Objective:
To expand infrastructure for renewable fuels, in order to increase the demand for ethanol, by offering competitive grants to States, the Commonwealth of Puerto Rico, and Washington, D.C. Federal funds, matched with state and private contributions, will create innovative ways to distribute higher blends of renewable fuel.
What can Grant be used for:
BIP funds may be used to pay a portion of the costs related to the installation of fuel pumps and related infrastructure dedicated to the distribution of higher ethanol blends, such as “E15” and “E85,” at fueling stations or fleet facilities.
Environmental Impact statement (string):
none required!
How much ($$) made available:
up to $100 million
When was this grant created? How old?:
June of 2015