[Analytical Perspectives]
[Special Analyses and Presentations]
[9. Aid to State and Local Governments]
[From the U.S. Government Publishing Office, www.gpo.gov]


[[Page 193]]

 
               9.  AID TO STATE AND LOCAL GOVERNMENTS \1\

  State and local governments have a vital constitutional responsibility 
to provide government services. They have the major role in providing 
domestic public services, such as public education, law enforcement, 
roads, water supply, and sewage treatment. The Federal Government 
contributes to that role both by promoting a healthy economy and by 
providing grants, loans, and tax subsidies to State and local 
governments.
---------------------------------------------------------------------------
  \1\ Federal aid to State and local governments is defined as the 
provision of resources by the Federal Government to support a State or 
local program of governmental service to the public. The three primary 
forms of aid are grants, loans, and tax expenditures.
---------------------------------------------------------------------------
  Federal grants help State and local governments finance programs 
covering most areas of domestic public spending, including income 
support, infrastructure, education, and social services. Federal grant 
outlays were $227.8 billion in 1996 and are estimated to increase to 
$244.8 billion in 1997 and $258.8 billion in 1998.
  Grant outlays for payments for individuals, such as Medicaid, are 
estimated to be 62 percent of total grants in 1998; for physical capital 
investment, 15 percent; and for all other purposes, largely education, 
training, and social services, 23 percent.
  States and localities receive direct loans and loan guarantees from 
the Federal Government, mostly for the purpose of rural development. 
Outlays for direct loan and loan guarantee subsidies to State and local 
governments are estimated to be $214 million in 1997 and $53 million 
1998. Information on Federal credit activities appears in Chapter 8, 
``Underwriting Federal Credit and Insurance.''
  Federal aid to State and local governments is also provided through 
tax expenditures. Tax expenditures are revenue losses due to 
preferential provisions of the Federal tax laws, such as special 
exclusions, exemptions, deductions, credits, deferrals, or tax rates.
  The two major tax expenditures benefiting State and local governments 
are the deductibility of personal income and property taxes from gross 
income for Federal income tax purposes, and the exclusion of interest on 
State and local securities from Federal taxation. These provisions, on 
an outlay equivalent basis, are estimated to be $77.6 billion in 1997 
and $79.2 billion in 1998. A detailed discussion of the measurement and 
definition of tax expenditures and a complete list of the amount of 
specific tax expenditures are in Chapter 5, ``Tax Expenditures.'' As 
discussed in that chapter, there are generally interactions among tax 
expenditure provisions, so that the estimates above only approximate the 
aggregate effect of these provisions.
  Tax expenditures that especially aid State and local governments are 
displayed separately at the end of Table 5-5 in that chapter.

               TABLE 9-1.  FEDERAL GRANT OUTLAYS BY AGENCY              
                        (in billions of dollars)                        
------------------------------------------------------------------------
                                                            Estimate    
                    Agency                       1996  -----------------
                                                Actual    1997     1998 
------------------------------------------------------------------------
Agriculture..................................    17.1     18.3     19.0 
Department of Commerce.......................     0.5      0.5      0.5 
Department of Education......................    16.2     17.8     19.4 
Department of Energy.........................     0.2      0.2      0.2 
Department of Health and Human Services......   129.1    138.8    148.6 
Department of Housing and Urban Development..    21.4     23.2     23.4 
Department of Interior.......................     1.7      2.1      2.1 
Department of Justice........................     1.4      2.5      4.6 
Department of Labor..........................     7.0      7.2      8.1 
Department of Transportation.................    26.0     25.9     25.3 
Department of Treasury.......................     0.4      0.4      0.4 
Environmental Protection Agency..............     2.8      2.7      2.8 
Federal Emergency Management Agency..........     2.0      3.1      3.0 
Other agencies...............................     2.0      2.0      1.5 
                                              --------------------------
  Total......................................   227.8    244.8    258.8 
------------------------------------------------------------------------

  Table 9-1 shows the distribution of grants by agency. Grant outlays 
for the Department of Health and Human Services are estimated to be 
$148.6 billion in 1998, 57 percent of total grants, much more than any 
other agency.

                  HIGHLIGHTS OF THE FEDERAL AID PROGRAM

  Major proposals in this budget affect Federal aid to State and local 
governments and the important relationships between the levels of 
government. Through the use of grants, the Federal government can share 
with State and local governments the cost and, ultimately, the benefits 
of a better educated, healthier, and safer citizenry. The Administration 
is committed to a Federal system that is more efficient and effective 
and to improving the design and administration of Federal grants.
  This budget continues the Administration's commitment to giving State 
and local governments increased flexibility. Through the use of grants 
agencies can create partnerships with State and local governments that 
focus on joint goals and the progress made toward meeting them.

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  In addition, this budget proposes several initiatives to successfully 
implement welfare reform and new initiatives to improve educational 
facilities, and set new standards for educational achievement.
  Medicaid.--Under current law, outlays for Medicaid are projected to be 
$104.4 billion in 1998. The Administration is proposing several reforms 
and initiatives that will combine to increase outlays to $105.8 billion 
in 1998, and result in an outlay savings of $9.3 billion over the next 5 
years. The President's budget proposes reforms to Medicaid that would 
preserve the entitlement to health coverage for the most vulnerable 
Americans--children, people with disabilities, and the elderly, while 
reducing the rate of growth in Federal spending.
  In order to preserve coverage for the most vulnerable Americans, the 
Administration proposes $1.0 billion in additional outlays for 
children's health initiatives and welfare reform. This will ensure that 
low income people do not lose Medicaid as a result of the transition 
from Aid to Families with Dependent Children to the new program, 
Temporary Assistance for Needy Families. The transitional Medicaid 
program that provides health insurance coverage for those leaving 
welfare to work would also be extended.
  The plan reduces the growth in Medicaid costs by imposing a ``per 
capita cap'' on Federal Medicaid spending and reducing and retargeting 
Disproportionate Share Hospital payments. Finally, the plan gives States 
more flexibility to administer their programs more efficiently. For 
example, the so-called ``Boren Amendment'' is modified for hospitals and 
nursing homes to allow States more flexibility to negotiate provider 
payment rates. States are also given the flexibility to adopt managed 
care, move populations needing long-term care from nursing homes to 
home- and community-based settings, and expand coverage to any person 
whose income is under 150 percent of the poverty line without Federal 
waivers.
  Health Insurance.--The ``Healthy Kids'' initiative proposes to provide 
$750 million in annual grants to States to build on recent State 
successes in partnering with insurers, providers, employers, schools, 
and others to develop innovative ways to provide coverage to children. 
States would be given the flexibility to design benefits and copayments 
for the program. The program would aid an estimated 1 million children.
  The Budget also proposes $25 million a year in grants that States can 
use for technical assistance in setting up voluntary purchasing 
cooperatives. These grants will help States empower small businesses to 
access and purchase more affordable health insurance through the use of 
voluntary cooperatives.
  Education.--Funds for the ``America Reads'' challenge, $2.75 billion 
over 5 years, are proposed to help States and communities ensure that 
all children are reading independently and well by the end of third 
grade. The budget requests $4.3 billion to fund Head Start, an increase 
of $324 million over 1997, allowing an estimated 36,000 additional 
children to participate in the program. With the proposed funding, the 
Head Start program would serve 836,000 children in 1998. The budget also 
proposes to leverage new school construction and renovation projects 
through a $5 billion fund for school districts with substantial need.
  Training.--The Administration is requesting $250 million in budget 
authority for 1998 for grants to out-of-school youths in high poverty 
areas, including designated Empowerment Zones and Empowerment 
Communities. The grants would help to reduce significant unemployment 
among out-of-school youth through employment and training assistance, 
combined with other Federal assistance. The budget also proposes $2.4 
billion in budget authority for 1998 for Job Training Partnership Act 
programs that provide training, job search assistance, and related 
services to help laid-off workers find new jobs as quickly as possible 
and economically disadvantaged adults become economically self 
sufficient.
  Welfare reform.--The budget seeks to capitalize on opportunities to 
move people from welfare to work granted by the enactment of the 
Personal Responsibility and Work Opportunities Reconciliation Act of 
1996. Funds for the ``Welfare to Jobs Challenges'' would help States and 
cities move a million of the hardest-to-employ welfare recipients into 
lasting jobs by the year 2000.
  Transportation.--The budget includes more than $25 billion in outlays 
for transportation grants to State and local governments in 1998. Of 
this amount, grants to maintain and improve surface transportation 
infrastructure include almost $20 billion in outlays for highway 
projects and $4 billion in outlays for mass transit. The budget request 
for these surface transportation programs concentrates on capital re-
investment, local decision making, and flexibility as hallmarks for 
reauthorization of the Intermodal Surface Transportation Efficiency Act 
of 1992.
  Housing.--The budget proposes a second round of funding for 
Empowerment Zones and Enterprise Communities. The first round has 
already proven successful in leveraging private sector funds and 
promoting economic opportunity and community-wide revitalization. In 
addition, the Brownfield Redevelopment proposal would enable cities to 
clean up polluted sites, returning them to productive uses that create 
jobs and to address the economic development needs of communities in and 
around such sites.
  Housing aid for State and local governments under the Community 
Development Block Grant program and the Department of Housing and Urban 
Development's (HUD) homeless funding would be continued at existing 
levels in 1998. The HOME block grants would be reduced slightly; 
however, more low-income households would be assisted through HUD's 
rental programs. The special housing assistance program for low-income 
persons suffering with AIDS would also be expanded.
  Rural Development.--The 1998 Budget proposes to fund rural 
infrastructure and business development programs through a new 
``performance partnership,'' the Rural Community Advancement Program 
(RCAP), en-


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acted as part of the 1996 Farm Bill. The RCAP proposal builds 
on the Administration's 1996 and 1997 budgets that proposed to modify 
the way funding for rural development programs was distributed in order 
to increase the flexibility of United States Department of Agriculture 
(USDA) State Directors to target Federal assistance to the highest-
priority needs of each State. The RCAP consolidates funding for 12 USDA 
rural development activities. The 1998 Budget proposes a total program 
level of $2.4 billion, a $127 million increase from the program level 
enacted in 1997. In addition to the flexible program plan originally 
proposed by the Administration, the RCAP includes authority for new 
rural development block grants to the States.
  Environment.--The budget requests $725 million in capitalization 
grants for the new Drinking Water State Revolving Funds. The President 
signed the Safe Drinking Water Act Amendments into law in 1996, 
fulfilling the goals the President outlined in 1993--to reinvent the 
Nation's safe drinking water legislation to better protect public 
health, and to authorize the creation of new Drinking Water State 
Revolving Funds to help hundreds of communities protect their citizens 
from harmful contaminants. The State Revolving Funds provide low-
interest loans to municipalities to help them meet the requirements of 
the new Safe Drinking Water Act Amendments.
  Additional information on these and other Federal aid proposals are in 
the 1998 Budget volume. Information on performance based partnerships 
and other management initiatives can be found in Section IV, ``Improving 
Performance in a Balanced Budget World.'' Information on the other grant 
programs discussed above can be found in Section V, ``Creating 
Opportunity, Demanding Responsibility, and Strengthening Community.'' 
Chapter 1 of Section V, ``Strengthening Health Care,'' focuses on health 
issues. Chapter 2, ``Investing in Education and Training,'' discusses 
education and training programs to help State and local communities and 
their schools. Chapter 3, ``Protecting the Environment,'' discusses 
environmental issues. Chapter 7, ``Implementing Welfare Reform,'' 
focuses on implementing and strengthening welfare reform.

                         HISTORICAL PERSPECTIVES

  In recent decades, Federal aid to State and local governments has 
become a major factor in the financing of certain government functions. 
The rudiments of the present system date back to the Civil War. The 
Morrill Act, passed in 1862, established the land grant colleges and 
instituted certain federally-required standards for States that received 
the grants, as is characteristic of the present grant programs. Federal 
aid was later initiated for agriculture, highways, vocational education 
and rehabilitation, forestry, and public health. In the depression 
years, Federal aid was extended to meet income security and other social 
welfare needs. However, Federal grants did not become a significant 
factor in Federal Government expenditures until after World War II.
  Table 9-2 displays trends in Federal grants to State and local 
governments since 1960. Section A shows Federal grants by function. 
Functions with a substantial amount of grants are shown separately. 
Grants for the national defense, energy, veterans benefits and services, 
and the administration of justice functions are combined in the ``other 
functions'' line in the table. 

                                           Table 9-2.  TRENDS IN FEDERAL GRANTS TO STATE AND LOCAL GOVERNMENTS                                          
                                                          (Outlays; dollar amounts in billions)                                                         
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                  Actual                                                     Estimate                   
                                 -----------------------------------------------------------------------------------------------------------------------
                                   1960    1965    1970    1975    1980    1985    1990    1995    1996    1997    1998    1998    2000    2001    2002 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                        
A. Distribution of grants by                                                                                                                            
  Natural resources and                                                                                                                                 
   environment..................     0.1     0.2     0.4     2.4     5.4     4.1     3.7     4.1     3.9     4.1     4.0     3.8     4.0     4.1     4.0
  Agriculture...................     0.2     0.5     0.6     0.4     0.6     2.4     1.3     0.8     0.6     0.7     0.7     0.6     0.6     0.6     0.6
   Transportation...............     3.0     4.1     4.6     5.9    13.0    17.0    19.2    25.8    26.0    25.9    25.3    24.9    24.8    24.6    24.6
   Community and regional                                                                                                                               
   development..................     0.1     0.6     1.8     2.8     6.5     5.2     5.0     7.2     7.9     9.3     8.9     9.0     7.2     6.0     5.7
   Education, training,                                                                                                                                 
   employment, and social                                                                                                                               
   services.....................     0.5     1.1     6.4    12.1    21.9    17.8    23.4    34.1    34.0    35.9    38.6    41.8    42.8    43.1    42.6
   Health.......................     0.2     0.6     3.8     8.8    15.8    24.5    43.9    93.6    97.7   103.4   111.7   117.6   124.1   131.2   139.3
   Income security..............     2.6     3.5     5.8     9.4    18.5    27.2    35.2    55.1    53.4    59.9    62.6    63.9    64.2    64.5    65.8
   General government...........     0.2     0.2     0.5     7.1     8.6     6.8     2.3     2.2     2.1     2.2     1.6     1.5     1.6     1.8     1.9
   Other........................     0.0     0.1     0.1     0.9     1.2     0.9     1.4     2.0     2.3     3.4     5.5     6.8     7.1     6.6     6.0
                                 -----------------------------------------------------------------------------------------------------------------------
     Total......................     7.0    10.9    24.1    49.8    91.4   105.9   135.3   225.0   227.8   244.8   258.8   270.0   276.4   282.6   290.5
                                                                                                                                                        
B. Composition:                                                                                                                                         
  Current dollars:                                                                                                                                      
     Payments for individuals                                                                                                                           
     \1\........................     2.5     3.7     8.7    16.8    32.6    49.3    75.7   141.2   142.8   152.1   159.6   165.9   171.7   178.8   188.1
     Physical capital \1\.......     3.3     5.0     7.1    10.9    22.5    24.9    27.2    39.6    40.4    41.1    39.9    39.5    38.9    38.1    37.5
     Other grants...............     1.2     2.2     8.3    22.2    36.2    31.6    32.5    44.2    44.7    51.5    59.4    64.7    65.8    65.6    64.9
                                 -----------------------------------------------------------------------------------------------------------------------
    Total.......................     7.0    10.9    24.1    49.8    91.4   105.9   135.3   225.0   227.8   244.8   258.8   270.0   276.4   282.6   290.5
  Percentage of total grants:                                                                                                                           
     Payments for individuals                                                                                                                           
     \1\........................     35%     34%     36%     34%     36%     47%     56%     63%     63%     62%     62%     61%     62%     63%     65%
     Physical capital \1\.......     47%     46%     29%     22%     26%     24%     20%     18%     18%     17%     15%     15%     14%     13%     13%
     Other grants...............     17%     20%     34%     45%     40%     30%     24%     20%     20%     21%     23%     24%     24%     23%     22%
                                 -----------------------------------------------------------------------------------------------------------------------
    Total.......................    100%    100%    100%    100%    100%    100%    100%    100%    100%    100%    100%    100%    100%    100%    100%
  Constant (FY 1992) dollars:                                                                                                                           
    Payments for individuals \1\    10.7    15.1    30.0    43.0    56.7    65.2    81.9   131.0   129.7   134.5   137.5   139.2   140.3   142.3   145.7
     Physical capital \1\.......    15.0    21.3    23.8    22.3    33.5    29.5    28.0    37.4    37.2    37.0    35.0    33.7    32.4    31.0    29.7
     Other grants...............     7.6    11.9    33.1    61.3    65.5    40.9    34.9    41.4    40.5    45.6    51.2    54.4    53.9    52.3    50.5
                                 -----------------------------------------------------------------------------------------------------------------------
    Total.......................    33.4    48.2    86.9   126.6   155.7   135.6   144.7   209.7   207.5   217.1   223.7   227.2   226.6   225.6   225.9
                                                                                                                                                        
C. Total grants as a percent of:                                                                                                                        
  Federal outlays:                                                                                                                                      
    Total.......................      8%      9%     12%     15%     15%     11%     11%     15%     15%     15%     15%     15%     15%     15%     15%
     Domestic programs \2\......     18%     18%     23%     22%     22%     18%     17%     22%     21%     21%     21%     21%     21%     21%     20%
   State and local expenditures.     19%     20%     24%     27%     31%     25%     21%     25%     24%      NA      NA      NA      NA      NA      NA
   Gross domestic product.......      1%      2%      2%      3%      3%      3%      2%      3%      3%      3%      3%      3%      3%      3%      3%
                                                                                                                                                        
D. As a share of total State and                                                                                                                        
 local capital spending:                                                                                                                                
  Federal capital grants........     25%     26%     26%     26%     36%     31%     23%     25%     24%      NA      NA      NA      NA      NA      NA
   State and local source                                                                                                                               
   financing....................     75%     74%     74%     74%     64%     69%     77%     75%     76%      NA      NA      NA      NA      NA      NA
                                 -----------------------------------------------------------------------------------------------------------------------
    Total.......................    100%    100%    100%    100%    100%    100%    100%    100%    100%    100%    100%    100%    100%    100%    100%
--------------------------------------------------------------------------------------------------------------------------------------------------------
NA = Not available.                                                                                                                                     
* 0.5 percent or less.                                                                                                                                  
\1\ Grants that are both payments for individuals and capital investment are shown under capital investment.                                            
\2\ Excludes national defense, international affairs, net interest, and undistributed offsetting receipts.                                              

  Federal grants for transportation increased to $3.0 billion, or 43 
percent of all Federal grants, in 1960 after initiation of aid to States 
to build the Interstate Highway System in the late 1950s.
  By 1970 there had been significant increases in the relative amounts 
for education, training, employment, social services, and health 
(largely Medicaid).
  In the early and mid-1970s, major new grants were created for natural 
resources and environment (construction of sewage treatment plants), 
community and regional development (community development block grants), 
and general government (general revenue sharing).
  Since the late 1970s changes in the relative amounts among functions 
reflected steady growth of grants for health (Medicaid) and income 
security and restraint in most other areas. The functions with the 
largest amount of grants are health and income security, with combined 
proposed estimated grant outlays of $174.3 billion or 67 percent of 
estimated total grant outlays in 1998.
  Section B of the Table shows the composition of grants divided into 
three major categories: payments for individuals, grants for physical 
capital, and other grants.\2\ Grant outlays for payments for 
individuals, which are mainly entitlement programs in which the Federal 
Government and the States share the costs, have grown significantly as a 
percent of total grants. They increased from 36 percent of the total in 
1980 to 63 percent of the total in 1995. They are projected to remain at 
a little more than 60 percent of the total for the next several years.
---------------------------------------------------------------------------
  \2\ Certain housing grants are classified in the budget as both 
payments for individuals and physical capital spending. In the text and 
tables in this section, these grants are included in the category for 
physical capital spending.
---------------------------------------------------------------------------
  These grants are distributed through State or local governments to 
provide cash or in-kind benefits that constitute income transfers to 
individuals or families. The major grant in this category is Medicaid, 
which had outlays of $92.0 billion in 1996, increasing to a proposed 
$105.8 billion in 1998. Welfare payments to States (Aid to Families with 
Dependent Children (Pre 1997) and Temporary Assistance for Needy 
Families), child nutrition programs, and housing assistance are also 
large grants in this category.
  Grants for physical capital assist States and localities with 
construction and other physical capital activities. The major capital 
grants are for highways, but there 



[[Page 196]]

are also grants for airports, mass transit, sewage treatment plant construction, community development, and other facilities. Grants for physical capital were almost half of total grants in 1960, shortly after grants began for construction of the Interstate Highway System. The relative share of these outlays has declined, as payments for individuals have grown. In 1998, grants for physical capital are estimated to be 15 percent of total grants.
  The other grants are primarily for education, training, employment, 
and social services. These grants increased to 45 percent of total 
grants by 1975, and are projected to be 23 percent of total grants in 
1998.
  Section B of Table 9-2 also shows these three categories in constant 
dollars. In constant 1992 dollars, total grants increase from $144.7 
billion in 1990 to an estimated $223.7 billion in 1998, an average 
annual increase of 5.6 percent. Grants for payments to individuals 
increase from $81.9 billion in 1990 to an estimated $137.5 billion in 
1998, an average annual increase of 6.7 percent; grants for physical 
capital increase from $28.0 billion in 1990 to an estimated $35.0 
billion in 1998, an average annual increase of 2.8 percent, and other 
grants increased from $34.9 billion in 1990 to an estimated $51.2 
billion in 1998, an average annual increase of 4.9 percent.

[[Page 197]]

  Section C of this table shows grants as a percentage of Federal 
outlays, State and local expenditures, and gross domestic product. 
Grants have increased as a percentage of total Federal outlays from 11 
percent in 1990 to an estimated 15 percent in 1998. Grants as a 
percentage of domestic spending are estimated to be 21 percent in 1998.
  As a percentage of total State and local expenditures, grants have 
increased from 21 percent in 1990 to 24 percent in 1996.
  Section D shows the relative contribution of physical capital grants 
in assisting States and localities with capital spending. Federal 
capital grants have increased slightly from 23 percent of State and 
local spending in 1990 to 24 percent in 1996.

     OTHER INFORMATION ON FEDERAL AID TO STATE AND LOCAL GOVERNMENTS

  Additional information regarding aid to State and local governments 
can be found elsewhere in this budget and in other documents.
  Major public physical capital investment programs providing Federal 
grants to State and local governments are identified in Chapter 6, 
``Federal Investment Spending and Capital Budgeting.''
  Data for summary and detailed grants to State and local governments 
can be found in many sections of a separate document entitled Historical 
Tables. Section 12 of that document is devoted exclusively to grants to 
State and local governments. Additional information on grants can be 
found in Section 6 (Composition of Federal Government Outlays); Section 
9 (Federal Government Outlays for Investment: Major Physical Capital, 
Research and Development, and Education and Training); Section 11 
(Federal Government Payments for Individuals); and Section 15 (Total 
(Federal and State and Local) Government Finances).
  In addition to these sources, a number of other sources of information 
are available that use slightly different concepts of grants, provide 
State-by-State information, or provide information on how to apply for 
Federal aid.
  Government Finances, published annually by the Bureau of the Census in 
the Department of Commerce, provides data on public finances, including 
Federal aid to State and local governments.
  The Survey of Current Business, published monthly by the Bureau of 
Economic Analysis in the Department of Commerce, provides data on the 
national income and product accounts (NIPA), a broad statistical concept 
encompassing the entire economy. These accounts include data on Federal 
grants to State and local governments. Data using the NIPA concepts 
appear in this volume in Chapter 19, ``National Income and Product 
Accounts.''
  The Budget Information for States (BIS) provides estimates of State-
by-State funding allocations for the largest formula grant programs for 
the past, present, and budget year. These programs comprise 
approximately 85 percent of total Federal aid to State and local 
governments. The document is prepared by the Office of Management and 
Budget soon after the Budget is released.
  The Federal Expenditures by State, a report prepared by the Bureau of 
the Census, shows Federal spending by State for grants and other 
spending for the most recently completed fiscal year.
  The Consolidated Federal Funds Report is an annual document that shows 
the distribution of Federal spending by State and county areas and by 
local governmental jurisdictions. It is released by the Bureau of the 
Census in the spring.
  The Federal Assistance Awards Data System (FAADS), provides 
computerized information about current grant funding. Data on all direct 
assistance awards are provided quarterly by the Bureau of the Census to 
the States and to the Congress.
  The Catalog of Federal Domestic Assistance is a primary reference 
source for communities wishing to apply for grants and other domestic 
assistance. The Catalog is prepared by the General Services 
Administration with data collected by the Office of Management and 
Budget and is available from the Government Printing Office. The basic 
edition of the Catalog is usually published in June and an update is 
generally published in December. It contains a detailed listing of grant 
and other assistance programs; discussions of eligibility criteria, 
application procedures, and estimated obligations; and related 
information.

                       DETAILED FEDERAL AID TABLE

  Table 9-3, ``Federal Grants to State and Local Governments--Budget 
Authority and Outlays,'' provides detailed budget authority and outlay 
data for grants.


[[Page 198]]

             Table 9-3. FEDERAL GRANTS TO STATE AND LOCAL GOVERNMENTS--BUDGET AUTHORITY AND OUTLAYS             
                                            (in millions of dollars)                                            
----------------------------------------------------------------------------------------------------------------
                                            Budget Authority                             Outlays                
                               ---------------------------------------------------------------------------------
 Function, Agency and Program       1996         1997          1998          1996         1997          1998    
                                  Actual      Estimate      Estimate       Actual      Estimate      Estimate   
----------------------------------------------------------------------------------------------------------------
National defense:                                                                                               
  Department of Defense--                                                                                       
   Military:                                                                                                    
    Military Construction:                                                                                      
      Military construction,                                                                                    
       Army National Guard....  ...........  ............  ............          15             9             4 
  Federal Emergency Management                                                                                  
   Agency:                                                                                                      
      Emergency management                                                                                      
       planning and assistance  ...........  ............  ............          23   ............  ............
                               ---------------------------------------------------------------------------------
      Total, national defense.  ...........  ............  ............          38             9             4 
                               =================================================================================
Energy:                                                                                                         
  Department of Energy:                                                                                         
    Energy Programs:                                                                                            
      Energy conservation.....         138           150      191               225           166           160 
  Tennessee Valley Authority:                                                                                   
      Tennessee Valley                                                                                          
       Authority fund.........         256           269      276               256           269           276 
                               ---------------------------------------------------------------------------------
      Total, energy...........         394           419      467               481           435           436 
                               =================================================================================
Natural resources and                                                                                           
 environment:                                                                                                   
  Department of Agriculture:                                                                                    
    Natural Resources                                                                                           
     Conservation Service:                                                                                      
      Resource conservation                                                                                     
       and development........  ...........  ............  ............           3             2             1 
      Watershed and flood                                                                                       
       prevention operations..         150           133       40               228           252            70 
    Forest Service:                                                                                             
      State and private                                                                                         
       forestry...............          80            71       71                81            81            71 
  Department of Commerce:                                                                                       
    National Oceanic and                                                                                        
     Atmospheric                                                                                                
     Administration:                                                                                            
      Operations, research,                                                                                     
       and facilities.........          27            31        7                26            26             4 
      Coastal zone management                                                                                   
       fund...................           2             4        3                 1             9             4 
  Department of the Interior:                                                                                   
    Bureau of Land Management:                                                                                  
      Miscellaneous permanent                                                                                   
       payment accounts.......          78           184       73                78           184            73 
    Minerals Management                                                                                         
     Service:                                                                                                   
      National forests fund,                                                                                    
       payment to States......           3             3        3                 3             3             3 
      Leases of lands acquired                                                                                  
       for flood control,                                                                                       
       navigation, and allied                                                                                   
       purposes...............           1             1        1                 1             1             1 
    Office of Surface Mining                                                                                    
     Reclamation and                                                                                            
     Enforcement:                                                                                               
      Regulation and                                                                                            
       technology.............          52            50       46                53            50            47 
      Abandoned mine                                                                                            
       reclamation fund.......         140           143      143               140           149           156 
    Bureau of Reclamation:                                                                                      
      Bureau of reclamation                                                                                     
       loan subsidy...........          12            15       10                13            21            11 
    United States Fish and                                                                                      
     Wildlife Service:                                                                                          
      Cooperative endangered                                                                                    
       species conservation                                                                                     
       fund...................           8            14       14                 8             9            11 
      Wildlife conservation                                                                                     
       and appreciation fund..           1             1        1                 1             1             1 
      Sport fish restoration..         236           326      305               219           259           288 
      Miscellaneous permanent                                                                                   
       appropriations.........         240           203      210               219           225           230 
    National Park Service:                                                                                      
      Urban park and                                                                                            
       recreation fund........  ...........  ............  ............           4             4             2 
      Land acquisition and                                                                                      
       State assistance.......           2             2        1                 2            22            18 
      Historic preservation                                                                                     
       fund...................          36            37       46                41            45            44 
      Everglades restoration                                                                                    
       fund...................  ...........  ............      64        ...........  ............           32 
      Miscellaneous permanent                                                                                   
       appropriations.........  ...........            1        1        ...........            1             1 
    Departmental Management:                                                                                    
      Everglades watershed                                                                                      
       protection.............         200   ............  ............  ...........           75           125 
      Everglades restoration                                                                                    
       account................  ...........           10       10        ...........           10            10 
  Environmental Protection                                                                                      
   Agency:                                                                                                      
      State and Tribal                                                                                          
       Assistance Grants......       2,813         2,910    2,793             2,573         2,499         2,521 
      Abatement, control, and                                                                                   
       compliance loan subsidy  ...........  ............  ............           4             2             1 
      Hazardous substance                                                                                       
       superfund..............         120           130      335               140           135           189 
      Leaking underground                                                                                       
       storage tank trust fund          39            51       61                62            53            56 
                               ---------------------------------------------------------------------------------
      Total, natural resources                                                                                  
       and environment........       4,240         4,320    4,238             3,900         4,118         3,970 
                               =================================================================================
Agriculture:                                                                                                    
  Department of Agriculture:                                                                                    
    Cooperative State                                                                                           
     Research, Education, and                                                                                   
     Extension Service:                                                                                         
      Extension activities....         428           426      418               403           419           420 
      Cooperative state                                                                                         
       research activities....         222           222      222               223           233           222 

[[Page 199]]

    Agricultural Marketing                                                                                      
     Service:                                                                                                   
      Payments to States and                                                                                    
       possessions............           1             1        1                 1             1             1 
    Farm Service Agency:                                                                                        
      State mediation grants..           2             2        4                 2             2             3 
      Commodity credit                                                                                          
       corporation fund.......           9             2   ............           9             2   ............
    Natural Resources                                                                                           
     Conservation Service:                                                                                      
      Outreach for socially                                                                                     
       disadvantaged farmers..           1             1        5                 3             4             5 
                               ---------------------------------------------------------------------------------
      Total, agriculture......         663           654      650               641           661           651 
                               =================================================================================
Commerce and housing credit:                                                                                    
  Department of Commerce:                                                                                       
    National Oceanic and                                                                                        
     Atmospheric                                                                                                
     Administration:                                                                                            
      Promote and develop                                                                                       
       fishery products and                                                                                     
       research pertaining to                                                                                   
       American fisheries.....           6   ............       3                 4            11             5 
    National Institute of                                                                                       
     Standards and Technology:                                                                                  
      Industrial technology                                                                                     
       services...............           6             6        6                 4             4             4 
                               ---------------------------------------------------------------------------------
      Total, commerce and                                                                                       
       housing credit.........          12             6        9                 8            15             9 
                               =================================================================================
Transportation:                                                                                                 
  Department of                                                                                                 
   Transportation:                                                                                              
    Coast Guard:                                                                                                
      Research, development,                                                                                    
       test, and evaluation...           1             1        1                 1             1             1 
      Port safety development.          15             5   ............          15             5   ............
      Boat safety.............          40            35       50                40            26            37 
    Federal Aviation                                                                                            
     Administration:                                                                                            
      Grants-in-aid for                                                                                         
       airports (Airport and                                                                                    
       airway trust fund).....       1,550         2,230    2,347             1,655         1,519         1,395 
    Federal Highway                                                                                             
     Administration:                                                                                            
      Orange County (CA) toll                                                                                   
       road demonstration                                                                                       
       project subsidy........  ...........  ............  ............  ...........            1             1 
      State infrastructure                                                                                      
       banks..................  ...........          150   ............  ...........           22            79 
      Highway-related safety                                                                                    
       grants.................          -7            -1   ............          11             8             4 
      National motor carrier                                                                                    
       safety program.........          41            79      100                73            79            84 
      Transportation                                                                                            
       infrastructure credit                                                                                    
       program................  ...........  ............     100        ...........  ............           50 
      Federal-aid highways....      17,949        22,053   22,232            19,366        19,370        19,366 
      State infrastructure                                                                                      
       banks (Highway trust                                                                                     
       fund)..................  ...........  ............     150        ...........  ............           30 
      Miscellaneous                                                                                             
       appropriations.........  ...........  ............  ............         237           180           141 
      Miscellaneous highway                                                                                     
       trust funds............  ...........  ............  ............          85            66            64 
    National Highway Traffic                                                                                    
     Safety Administration:                                                                                     
      Highway traffic safety                                                                                    
       grants.................         113           165      225               140           157           166 
    Federal Railroad                                                                                            
     Administration:                                                                                            
      Direct loan financing                                                                                     
       program................  ...........           59   ............  ...........           21            21 
      Local rail freight                                                                                        
       assistance.............  ...........  ............  ............          13             7             7 
      Railroad rehabilitation                                                                                   
       activities.............          10            10   ............           9             4             6 
      Railroad research and                                                                                     
       development............           1             1        1        ...........            1             1 
      Conrail commuter                                                                                          
       transition assistance..  ...........  ............  ............           2             2            12 
      Northeast corridor high-                                                                                  
       speed rail                                                                                               
       infrastructure program.           1            10       10                 1             3             8 
    Federal Transit                                                                                             
     Administration:                                                                                            
      Research, training, and                                                                                   
       human resources........  ...........  ............  ............           3             6             4 
      Interstate transfer                                                                                       
       grants-transit.........  ...........  ............  ............           1            27            11 
      Washington metropolitan                                                                                   
       area transit authority.         200           200   ............         195           208           156 
      Formula grants..........       2,052         2,148   ............       1,799         2,209         1,675 
      Transit planning and                                                                                      
       research...............          58            68   ............          57            47            67 
      Discretionary grants                                                                                      
       (Highway trust fund)...       1,665         2,880      800             2,224         1,880         1,706 
      Washington metropolitan                                                                                   
       area transit authority                                                                                   
       (Highway trust fund)...  ...........  ............     200        ...........  ............            4 
      Formula programs                                                                                          
       (Highway trust fund)...  ...........  ............   3,971        ...........  ............          171 
      Miscellaneous expired                                                                                     
       accounts...............  ...........  ............  ............          12             7             5 
    Research and Special                                                                                        
     Programs Administration:                                                                                   
      Pipeline safety.........          12            13       13                11            14            13 
      Emergency preparedness                                                                                    
       grants.................           7             6        6                 6             7             7 
  Washington Metropolitan Area                                                                                  
   Transit Authority:                                                                                           
      Interest payments.......  ...........  ............  ............           1   ............  ............
                               ---------------------------------------------------------------------------------
      Total, Transportation...      23,708        30,112   30,206            25,957        25,877        25,292 
                               =================================================================================

[[Page 200]]

Community and regional                                                                                          
 development:                                                                                                   
  Department of Agriculture:                                                                                    
    Rural Development:                                                                                          
      Rural community                                                                                           
       advancement program....  ...........  ............     589        ...........  ............          574 
    Rural Utilities Service:                                                                                    
      Distance learning and                                                                                     
       medical link subsidy...           8             9       21                10            24            19 
      Rural water and waste                                                                                     
       disposal loans subsidy.         207            60   ............         175           104   ............
      Emergency community                                                                                       
       water assistance grants           5   ............  ............           8             7   ............
      Rural water and waste                                                                                     
       disposal grants........         324           413   ............         351           391   ............
    Rural Housing Service:                                                                                      
      Rural community facility                                                                                  
       loans subsidy..........          51            11   ............          33            20   ............
      Rural housing assistance                                                                                  
       grants.................  ...........            6   ............  ...........            1   ............
      Rural community fire                                                                                      
       protection grants......           2             1        2                 3             2             2 
    Rural Business--                                                                                            
     Cooperative Service:                                                                                       
      Rural cooperative                                                                                         
       development grants.....           2             3        3                 2             3             3 
      Local technical                                                                                           
       assistance and planning                                                                                  
       grants.................  ...........            1   ............  ...........            1   ............
      Rural business and                                                                                        
       industry loans subsidy.           6             6   ............           5             6   ............
      Rural business                                                                                            
       enterprise grants......          33            30   ............          28            33   ............
    Forest Service:                                                                                             
      Southeast alaska                                                                                          
       economic disaster fund.         110   ............  ............          23            47            20 
  Department of Commerce:                                                                                       
    Economic Development                                                                                        
     Administration:                                                                                            
      Economic development                                                                                      
       assistance programs....         346           355      320               394           443           387 
  Department of Housing and                                                                                     
   Urban Development:                                                                                           
    Community Planning and                                                                                      
     Development:                                                                                               
      Community development                                                                                     
       block grants...........       4,650         4,600    4,600             4,545         4,837         4,641 
      Urban development action                                                                                  
       grants.................  ...........  ............  ............          27            60            45 
      Supplemental assistance                                                                                   
       for facilities to                                                                                        
       assist the homeless....  ...........  ............  ............           5             3   ............
      Community development                                                                                     
       loan guarantees subsidy          33            33       29                 1            23            35 
      Brownfields                                                                                               
       redevelopment..........  ...........  ............      25        ...........  ............            1 
      Empowerment zones and                                                                                     
       enterprise communities.  ...........  ............     100        ...........  ............            2 
  Department of the Interior:                                                                                   
    Bureau of Indian Affairs:                                                                                   
      Operation of Indian                                                                                       
       programs...............         107           113      124               102           109            96 
      Indian guaranteed loan                                                                                    
       subsidy................           5            37        5                11            37             5 
  Appalachian Regional                                                                                          
   Commission:                                                                                                  
      Appalachian regional                                                                                      
       commission.............         164           154      159               230           191           181 
  Federal Emergency Management                                                                                  
   Agency:                                                                                                      
      Emergency management                                                                                      
       planning and assistance         121           132      128               111           128           129 
      Disaster relief.........       2,714         1,056    2,487             1,786         2,874         2,759 
                               ---------------------------------------------------------------------------------
      Total, community and                                                                                      
       regional development...       8,888         7,020    8,592             7,850         9,344         8,899 
                               =================================================================================
Education, training,                                                                                            
 employment, and social                                                                                         
 services:                                                                                                      
  Department of Commerce:                                                                                       
    National                                                                                                    
     Telecommunications and                                                                                     
     Information                                                                                                
     Administration:                                                                                            
      Public broadcasting                                                                                       
       facilities, planning                                                                                     
       and construction.......          14            13   ............          23            23            19 
      Information                                                                                               
       infrastructure grants..          22            21       36                24            31            28 
  Department of Education:                                                                                      
    Office of Elementary and                                                                                    
     Secondary Education:                                                                                       
      School construction.....  ...........  ............   5,000        ...........  ............        1,250 
      America Reads Challenge.  ...........  ............     200        ...........  ............           24 
      Indian education........          50            58       60                75            64            58 
      Impact aid..............         693           730      648               945           895           697 
      Chicago litigation                                                                                        
       settlement.............  ...........  ............  ............           1             4             4 
      Education Reform........         516           677    1,245               265           676           716 
      Education for the                                                                                         
       disadvantaged..........       5,879         7,670    8,053             7,006         7,219         7,458 
      School improvement                                                                                        
       programs...............       1,145         1,363    1,194             1,140         1,414         1,318 
    Office of Bilingual                                                                                         
     Education and Minority                                                                                     
     Languages Affairs:                                                                                         
      Bilingual and immigrant                                                                                   
       education..............         176           262      324               160           212           271 
    Office of Special                                                                                           
     Education and                                                                                              
     Rehabilitative Services:                                                                                   
      Special education.......       3,007         3,790    3,983             2,991         3,191         3,510 
      Rehabilitation services                                                                                   
       and disability research       2,237         2,300    2,371             2,194         2,467         2,411 
      American printing house                                                                                   
       for the blind..........           7             7        7                 5             9             7 
    Office of Vocational and                                                                                    
     Adult Education:                                                                                           
      Vocational and adult                                                                                      
       education..............       1,330         1,466    1,535             1,323         1,573         1,466 

[[Page 201]]

     Office of Postsecondary                                                                                     
     Education:                                                                                                 
      Student financial                                                                                         
       assistance.............          31            50   ............          79            44            40 
      Higher education........          32            33       39                29            33            34 
    Office of Educational                                                                                       
     Research and Improvement:                                                                                  
      Education research,                                                                                       
       statistics, and                                                                                          
       improvement............           3           204       55                16            33           147 
  Department of Health and                                                                                      
   Human Services:                                                                                              
    Administration for                                                                                          
     Children and Families:                                                                                     
      State legalization                                                                                        
       impact assistance                                                                                        
       grants.................  ...........  ............  ............          -2             2   ............
      Payments to States for                                                                                    
       the job opportunities                                                                                    
       and basic skills                                                                                         
       training program.......       1,000         1,000   ............         931           324            89 
      Family preservation and                                                                                   
       support................         225           240      255               126           186           227 
      Social services block                                                                                     
       grant..................       2,381         2,500    2,380             2,484         2,694         2,621 
      Children and families                                                                                     
       services programs......       4,524         5,096    5,239             4,494         4,781         5,097 
      Payments to states for                                                                                    
       foster care and                                                                                          
       adoption assistance....       4,322         4,445    4,311             3,691         3,789         4,071 
    Administration on Aging:                                                                                    
      Aging services programs.         829           830    1,278               818           851           914 
  Department of the Interior:                                                                                   
    Bureau of Indian Affairs:                                                                                   
      Operation of Indian                                                                                       
       programs...............          78            88       93                96            86            74 
  Department of Labor:                                                                                          
    Employment and Training                                                                                     
     Administration:                                                                                            
      Training and employment                                                                                   
       services...............       2,998         3,513    3,750             3,231         3,459         3,519 
      Community service                                                                                         
       employment for older                                                                                     
       Americans..............          82           102   ............         101            88            78 
      Welfare to work jobs....  ...........  ............     750        ...........  ............          600 
      State unemployment                                                                                        
       insurance and                                                                                            
       employment service                                                                                       
       operations.............         135           173      192                96           117           165 
      Federal unemployment                                                                                      
       benefits and allowances         123           114      119                99           107           110 
      Unemployment trust fund.         995         1,010    1,011             1,082         1,016         1,011 
  Corporation for National and                                                                                  
   Community Service:                                                                                           
      Domestic volunteer                                                                                        
       service programs,                                                                                        
       Operating expenses.....         128           136      163               115           132           152 
      National and community                                                                                    
       service programs,                                                                                        
       operating expenses.....         141           140      209               105           124           163 
  Corporation for Public                                                                                        
   Broadcasting:                                                                                                
      Corporation for public                                                                                    
       broadcasting...........          92            87       83                92            87            83 
  National Endowment for the                                                                                    
   Arts:                                                                                                        
      National endowment for                                                                                    
       the arts: Grants and                                                                                     
       administration.........          27            28       35                38            26            28 
  Institute of Museum and                                                                                       
   Library Services:                                                                                            
      Office of Museum                                                                                          
       Services: Grants and                                                                                     
       administration.........           5             5        6                 5             9             5 
      Office of Libraries:                                                                                      
       Grants and                                                                                               
       administration.........         126           129      132               156           160           135 
                               ---------------------------------------------------------------------------------
      Total, education,                                                                                         
       training, employment,                                                                                    
       and social services....      33,353        38,280   44,756            34,034        35,926        38,600 
                               =================================================================================
Health:                                                                                                         
  Department of Agriculture:                                                                                    
    Food Safety and Inspection                                                                                  
     Service:                                                                                                   
      Salaries and expenses...          41            42       43                41            42            43 
  Department of Health and                                                                                      
   Human Services:                                                                                              
    Health Resources and                                                                                        
     Services Administration:                                                                                   
      Health Resources and                                                                                      
       Services...............       1,846         2,147    2,131             2,762         2,007         2,083 
    Centers for Disease                                                                                         
     Control and Prevention:                                                                                    
      Disease control,                                                                                          
       research, and training.         615           611      559               701           829           823 
    Substance Abuse and Mental                                                                                  
     Health Services                                                                                            
     Administration:                                                                                            
      Substance abuse and                                                                                       
       mental health services.       1,885         2,184    2,206             2,083         1,905         2,089 
    Health Care Financing                                                                                       
     Administration:                                                                                            
      Program management......  ...........  ............     775        ...........  ............          775 
      Grants to States for                                                                                      
       Medicaid...............      82,142       101,212   100,975           91,990        98,542       105,801 
  Department of Labor:                                                                                          
    Occupational Safety and                                                                                     
     Health Administration:                                                                                     
      Salaries and expenses...          68            77       79                67            76            78 
    Mine Safety and Health                                                                                      
     Administration:                                                                                            
      Salaries and expenses...           6             6        6                 6             6             6 
                               ---------------------------------------------------------------------------------
      Total, health...........      86,603       106,279   106,774           97,650       103,407       111,698 
                               =================================================================================
Income security:                                                                                                
  Department of Agriculture:                                                                                    
    Agricultural Marketing                                                                                      
     Service:                                                                                                   
      Funds for strengthening                                                                                   
       markets, income, and                                                                                     
       supply (section 32)....         431           406      461               435           450           417 
    Rural Housing Service:                                                                                      
      Rural housing for                                                                                         
       domestic farm labor                                                                                      
       grants.................          10             6   ............          18            18   ............

[[Page 202]]

      Supervisory and                                                                                           
       technical assistance                                                                                     
       grants.................  ...........  ............  ............           1             1   ............
      Rural housing                                                                                             
       preservation grants....           4   ............  ............           8   ............  ............
    Food and Consumer Service:                                                                                  
      Food stamp program......       3,108         3,659    4,266             3,030         3,662         4,246 
      Commodity assistance                                                                                      
       program................         317           307      272               301           342           278 
      Special supplemental                                                                                      
       nutrition program for                                                                                    
       women, infants, and                                                                                      
       children (WIC).........       3,691         3,827    4,105             3,676         3,765         3,986 
      Child nutrition programs       7,846         8,535    7,672             7,757         8,140         8,372 
  Department of Health and                                                                                      
   Human Services:                                                                                              
    Administration for                                                                                          
     Children and Families:                                                                                     
      Family support payments                                                                                   
       to States..............      18,014         6,958      607            16,670         6,426         3,024 
      Temporary assistance for                                                                                  
       needy families.........         111        13,658   16,756        ...........       12,365        16,586 
      Low income home energy                                                                                    
       assistance.............       1,080         1,005    1,000             1,067         1,097           996 
      Refugee and entrant                                                                                       
       assistance.............         365           384      350               319           381           358 
      Payments to States for                                                                                    
       the child care and                                                                                       
       development block grant         935            19    1,000               933           959           998 
      Contingency fund........  ...........           45       80        ...........           23            96 
      Child care entitlement                                                                                    
       to States..............  ...........        1,967    2,175        ...........        1,592         1,922 
      Children's research and                                                                                   
       technical assistance...  ...........  ............      21        ...........  ............            1 
  Department of Housing and                                                                                     
   Urban Development:                                                                                           
    Public and Indian Housing                                                                                   
     Programs:                                                                                                  
      Public housing operating                                                                                  
       fund...................       2,800   ............   2,900             2,688         1,521         1,421 
      Annual contributions for                                                                                  
       assisted housing.......       6,749   ............  ............      11,939        11,603         8,637 
      Drug elimination grants                                                                                   
       for low-income housing.         290           320      290               259           210           347 
      Revitalization of                                                                                         
       severely distressed                                                                                      
       public housing projects                                                                                  
       (HOPE VII).............         480           550      524               110           283           409 
      Public housing capital                                                                                    
       fund...................  ...........  ............   2,500        ...........  ............           13 
      Housing certificate fund  ...........        2,768    7,153        ...........          811         3,443 
      Preserving existing                                                                                       
       housing investment.....  ...........        5,750   ............  ...........        1,532         1,962 
    Community Planning and                                                                                      
     Development:                                                                                               
      Emergency shelter grants                                                                                  
       program................  ...........  ............  ............          30             6   ............
      Supportive housing                                                                                        
       program................  ...........  ............      -6               148           157           144 
      Homeless assistance                                                                                       
       grants.................         823           823      823               186           285           474 
      Shelter plus care.......  ...........  ............      -4                43            50            50 
      Home investment                                                                                           
       partnership program....       1,400         1,400    1,309             1,206         1,445         1,440 
      Youthbuild program......  ...........  ............      30                41            25            15 
      Innovative homeless                                                                                       
       initiatives                                                                                              
       demonstration program..  ...........  ............  ............          20            19            17 
      Housing opportunities                                                                                     
       for persons with AIDS..  ...........          196      204        ...........          133           165 
    Housing Programs:                                                                                           
      Congregate services.....  ...........  ............  ............           8             7             7 
      Section 8 moderate                                                                                        
       rehabilitation, single                                                                                   
       room occupancy.........  ...........  ............  ............          21            55            51 
      Homeownership and                                                                                         
       opportunity for people                                                                                   
       everywhere grants (HOPE                                                                                  
       grants)................  ...........          -30   ............          63            80            51 
  Department of Labor:                                                                                          
    Employment and Training                                                                                     
     Administration:                                                                                            
      Unemployment trust fund.       2,311         2,345    2,634             2,298         2,345         2,554 
  Federal Emergency Management                                                                                  
   Agency:                                                                                                      
      Emergency food and                                                                                        
       shelter program........         100           100      100               100           100           100 
                               ---------------------------------------------------------------------------------
      Total, income security..      50,865        54,998   57,222            53,375        59,888        62,580 
                               =================================================================================
Veterans benefits and                                                                                           
 services:                                                                                                      
  Department of Veterans                                                                                        
   Affairs:                                                                                                     
    Veterans Health                                                                                             
     Administration:                                                                                            
      Medical care............         207           232      245               207           232           245 
    Construction:                                                                                               
      Grants for construction                                                                                   
       of State extended care                                                                                   
       facilities.............          47            47       41                57            44            47 
      Grants for the                                                                                            
       construction of State                                                                                    
       veterans cemeteries....           1             1       10                 2             3             2 
                               ---------------------------------------------------------------------------------
      Total, veterans benefits                                                                                  
       and services...........         255           280      296               266           279           294 
                               =================================================================================
Administration of justice:                                                                                      
  Department of Health and                                                                                      
   Human Services:                                                                                              
    Administration for                                                                                          
     Children and Families:                                                                                     
      Violent crime reduction                                                                                   
       programs...............          19            17       77                10            15            21 
  Department of Housing and                                                                                     
   Urban Development:                                                                                           
    Fair Housing and Equal                                                                                      
     Opportunity:                                                                                               
      Fair housing activities.          30            30       39                32            24            27 
  Department of Justice:                                                                                        
    Legal Activities:                                                                                           
      Assets forfeiture fund..         155           165      175               155           163           172 

[[Page 203]]

    Office of Justice                                                                                           
     Programs:                                                                                                  
      Justice assistance......          57            67       96               222            39           137 
      State and local law                                                                                       
       enforcement assistance.         366           333   ............         137           240           431 
      Juvenile justice program         126           146      215                52            92           212 
      Crime victims fund......         219           509      168               143           341           276 
      Violent crime reduction                                                                                   
       programs...............       1,808         2,036    2,153               391           852         1,715 
      Community oriented                                                                                        
       policing services......       1,400         1,420    1,545               313           784         1,693 
  Department of the Treasury:                                                                                   
    Departmental Offices:                                                                                       
      Department of the                                                                                         
       Treasury forfeiture                                                                                      
       fund...................          60            60       60                54            53            54 
    Violent crime reduction                                                                                     
     programs:                                                                                                  
      Violent crime reduction                                                                                   
       programs...............           8             8        8                 7             8             8 
  Equal Employment Opportunity                                                                                  
   Commission:                                                                                                  
      Salaries and expenses...          26            28       27                23            28            27 
  Ounce of Prevention Council:                                                                                  
      Ounce of prevention                                                                                       
       council................           2             2        9        ...........            1             4 
  State Justice Institute:                                                                                      
      State Justice Institute:                                                                                  
       Salaries and expenses..           4             5        5                 8             4             4 
                               ---------------------------------------------------------------------------------
      Total, administration of                                                                                  
       justice................       4,280         4,826    4,577             1,547         2,644         4,781 
                               =================================================================================
General government:                                                                                             
  Department of Agriculture:                                                                                    
    Forest Service:                                                                                             
      Payments to states                                                                                        
       northern spotted owl                                                                                     
       guarantee, Forest                                                                                        
       Service................  ...........          130      125        ...........          130           125 
      Forest Service permanent                                                                                  
       appropriations.........         284           127      127               277           127           127 
  Defense--Civil:                                                                                               
    Corps of Engineers--Civil:                                                                                  
      Permanent appropriations           6             6        6                 6             6             6 
  Department of Energy:                                                                                         
    Energy Programs:                                                                                            
      Payments to States under                                                                                  
       Federal Power Act......           3             3        3                 2             3             3 
  Department of the Interior:                                                                                   
    Bureau of Land Management:                                                                                  
      Payments in lieu of                                                                                       
       taxes..................         114           114      102               113           114           102 
    Minerals Management                                                                                         
     Service:                                                                                                   
      Mineral leasing and                                                                                       
       associated payments....         454           546      581               454           546           581 
    United States Fish and                                                                                      
     Wildlife Service:                                                                                          
      National wildlife refuge                                                                                  
       fund...................          20            18       17                17            19            17 
    Insular Affairs:                                                                                            
      Assistance to                                                                                             
       territories............          73            65       67                58            70            69 
      Trust Territory of the                                                                                    
       Pacific Islands........  ...........  ............  ............           7             9             9 
      Payments to the United                                                                                    
       States territories,                                                                                      
       fiscal assistance......          81            83       85                81            83            85 
  Department of the Treasury:                                                                                   
    Departmental Offices:                                                                                       
      Payment to DC financial                                                                                   
       responsibility and                                                                                       
       management assistance                                                                                    
       authority..............  ...........           12   ............  ...........           12   ............
    Bureau of Alcohol, Tobacco                                                                                  
     and Firearms:                                                                                              
      Internal revenue                                                                                          
       collections for Puerto                                                                                   
       Rico...................         221           230      230               221           230           230 
    United States Customs                                                                                       
     Service:                                                                                                   
      Miscellaneous permanent                                                                                   
       appropriations.........         110           123      127               110           123           127 
  Commission on National and                                                                                    
   Community Service:                                                                                           
      Salaries and expenses...  ...........  ............  ............           6   ............  ............
  District of Columbia:                                                                                         
      Federal payment to the                                                                                    
       District of Columbia...         712           719      150               712           719           150 
                               ---------------------------------------------------------------------------------
      Total, general                                                                                            
       government.............       2,078         2,176    1,620             2,064         2,191         1,631 
                               =================================================================================
      Total, grants...........     215,339       249,370   259,407          227,811       244,794       258,845 
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