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


ANALYTICAL PERSPECTIVES

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               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 $234.2 billion in 1997 and are estimated to increase to 
$250.9 billion in 1998 and $271.3 billion in 1999.
  Grant outlays for payments for individuals, such as Medicaid, are 
estimated to be 61 percent of total grants in 1999; for physical capital 
investment, 16 percent; and for all other purposes, largely education, 
training, and social services, 22 percent.
  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 $70.5 billion in 1998 
and $73.2 billion in 1999. 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                       1997  -----------------
                                                actual    1998     1999 
------------------------------------------------------------------------
Department of Agriculture....................     17.9     19.1     19.3
Department of Commerce.......................      0.5      0.5      0.5
Department of Education......................     16.5     16.9     19.8
Department of Energy.........................      0.2      0.2      0.2
Department of Health and Human Services......    130.7    140.9    152.0
Department of Housing and Urban Development..     22.3     24.2     24.5
Department of the Interior...................      2.0      2.2      2.0
Department of Justice........................      2.7      3.2      4.5
Department of Labor..........................      7.0      8.0      8.8
Department of Transportation.................     26.8     27.7     28.4
Department of the Treasury...................      0.4      0.4      3.8
Department of Veterans Affairs...............      0.3      0.3      0.3
Environmental Protection Agency..............      2.9      2.7      3.1
Federal Emergency Management Agency..........      2.2      2.8      2.6
Other agencies...............................      1.7      1.8      1.5
                                              --------------------------
  Total......................................    234.2    250.9    271.3
------------------------------------------------------------------------

  Table 9-1 shows the distribution of grants by agency. Grant outlays 
for the Department of Health and Human Services are estimated to be 
$152.0 billion in 1999, 56 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, 
Federal agencies can create partnerships with State and local 
governments that focus on joint goals and the progress made toward 
meeting them.
  In addition, this budget proposes several initiatives to successfully 
implement welfare reform, new initiatives to improve educational 
facilities, and set new standards for educational achievement. 
Additional in

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formation on these and other proposals can be found in the main budget 
volume.
  Medicaid.--Medicaid is the largest grant program. Outlays for Medicaid 
are projected to be $107.7 billion in 1999. To promote program integrity 
in Medicaid, the Administration is considering an incentive project that 
encourages States to measure errors and fraud in State Medicaid programs 
and develop performance measures. These projects would help States 
identify problem areas in their Medicaid programs, target program 
integrity resources more effectively, and measure the success of their 
efforts to reduce errors and combat fraud.
  As part of the new Children's Health Insurance Program that was 
enacted in the Balanced Budget Act of 1997, the budget proposes to allow 
school and child care center staff to enroll children into Medicaid 
temporarily on the presumption that they are eligible. This proposal 
also would enable Medicaid to cover the costs related to providing this 
temporary coverage, rather than force States to cover the costs from 
their CHIP allotment. In addition, the budget proposes to expand the use 
of a special $500 million Medicaid fund, now aimed at outreach for 
children losing welfare, to fund outreach to all children. Finally, the 
budget would also enable states to provide Medicaid and CHIP assistance 
to legal immigrant children who entered the United States after the 
President signed the 1996 welfare law.
  Other Health.--The new Children's Health Insurance Program that was 
enacted in the Balanced Budget Act of 1997 will help extend health 
insurance coverage to as many as 5 million uninsured children. The 
budget includes $1.8 billion in outlays for grants to States to provide 
health insurance coverage to eligible low-income children and $34 
million in increased funding for Puerto Rico and the other four 
territories. Because States have the option to expand children's health 
insurance coverage through the State grant program, through Medicaid or 
through a combination of the two, the Medicaid outlays described above 
include $1.2 billion for CHIP expenditures.
  The Budget also assumes that a portion of receipts from tobacco 
legislation would support the kind of activities recommended by States' 
Attorneys General and supported by the President, such as grants to 
states, cessation programs, assistance to farmers and other state public 
health programs. Funding for these activities is shown in the general 
government function.
  Education.--This Budget includes $7.9 billion in outlays for Title I 
of the Elementary and Secondary Education Act to help school provide 
educational services to over 10 million children in poor communities. 
Title I provides funds to raise the educational achievement of 
disadvantaged children. The Budget requests an additional $3.8 billion 
over five years to fund Head Start. More than 26,000 regular Head Start 
slots and 10,000 Early Start slots would be added in 1999 to the roughly 
830,000 low-income children who will be served by Head Start in 1998.
  Training.--The Budget proposes $1.5 billion to fund the dislocated 
worker assistance program to provide readjustment services, job search 
assistance, training, and other services to help an estimated 686,000 
dislocated workers find new jobs as quickly as possible.
  Welfare-to-work.--To help reach the Temporary Assistance for Needy 
Families (TANF) employment goal for welfare recipients, the Budget 
includes $3.0 billion in additional targeted funds over 2 years (1998 
and 1999) to provide formula and competitive grants to States and local 
communities in order to give long-term welfare recipients the job 
placement services, transitional employment, and job retention and 
support services they need to achieve economic self-sufficiency.
  Transportation.--The Budget includes more than $28.3 billion in 
outlays for transportation grants to States and local governments for 
1999. Of this amount grants to maintain and improve surface 
transportation infrastructure include more than $22.6 billion in outlays 
for highways and $3.8 billion in outlays for mass transit. In addition 
$1.6 billion in outlays are proposed for grants to improve the Nation's 
airports.
  Housing.--The Budget proposes a second round of funding for 
Empowerment Zones and Enterprise Communities to stimulate the public-
private partnerships needed for large scale job creation. The first 
round has already proven successful in leveraging private sector funds 
and promoting economic opportunity and community-wide revitalization. In 
addition, the Brownfields Redevelopment Initiative would be extended to 
allow cities to clean up polluted sites, returning them to productive 
uses that create jobs and address the economic development needs of 
communities in and around those sites.
  Rural Development.--The Administration proposes to give States, 
localities, and Tribes more flexibility in how they use the Department 
of Agriculture's rural development grants and loans for businesses, 
water and wastewater facilities, and community facilities such as day 
care centers and health clinics. The 1996 Farm Bill authorized this 
approach through a new Rural Community Assistance Program (RCAP), 
combining 12 separate USDA programs into a Performance Partnership that 
can tailor assistance to the unique economic development needs of each 
rural community. The Budget proposes $2.9 billion in loans and grants 
for RCAP, 4 percent more than in 1998, and the full flexibility that the 
1996 Farm Bill envisioned.
  Environment.--The budget proposes $775 million in capitalization 
grants for Drinking Water State Revolving Funds (SRFs), which make low-
interest loans to help municipalities meet the requirements of the Safe 
Drinking Water Act Amendments. These funds help ensure that Americans 
have safe, clean, drinking water. In addition, $1.1 billion in 
capitalization grants are proposed for Clean Water SRFs to help 
municipalities reduce beach closure and keep waterways safe and clean.
  General Government.--Federal revenue generated from national forests 
and other public lands has been shared with States and local governments 
since the

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early 1920's. In some parts of the country, declining or unstable 
revenue has resulted in varying levels of funds for needed local 
government programs such as roads and schools. The Budget includes 
proposals in the Department of Agriculture Forest Service and Department 
of the Interior to provide stable, guaranteed payments to States and 
counties that are not directly tied to current revenue generated from 
public lands, such as from timber sales.

                         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, commerce and housing credit and 
the veterans benefits and services functions are combined in the ``other 
functions'' line in the table. 

  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, income security, education and 
transportation with combined proposed estimated grant outlays of $246.5 
billion or 91 percent of estimated total grant outlays in 1999.
  Section B of the table shows the distribution of grants divided into 
mandatory and discretionary spending, the major categories in the Budget 
Enforcement Act (BEA).
  Funding for grant programs classified as mandatory occurs in 
authorizing legislation. Funding levels for mandatory programs can only 
be changed by changing eligibility criteria or benefit formulas 
established in law. They are not subject to the annual appropriations 
process. Outlays for mandatory grant programs are estimated to be $164.2 
billion in 1999. The three largest mandatory grant programs are 
Medicaid, with proposed outlays of $107.7 billion in 1999, Temporary 
Assistance to Needy Families, $15.9 billion in 1999, and grants for the 
Food Stamp and Child nutrition programs, with combined outlays of $12.7 
billion in 1999.
  The funding level for discretionary grant programs is subject to 
approval by Congress annually through appropriations acts. Outlays for 
discretionary grant programs are estimated to be $108.3 billion in 1999. 
The three largest discretionary grant programs are Federal-aid for 
highways ($20.4 billion in 1999), education for the disadvantaged ($7.9 
billion in 1999), and Head Start and other children and family services 
programs ($5.5 billion in 1999). Table 9-3. ``Federal Grants To State 
And Local Governments'' at the end of this chapter identifies 
discretionary and mandatory grant programs separately. For more 
information on the Budget Enforcement Act and these categories, see 
Chapter 23. ``Budget System and Concepts and Glossary'' in this volume.
  Section C 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 $95.6 billion in 1997, increasing to an estimated 
$107.7 billion in 1999. 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 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

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                                                               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      1999      2000      2001      2002      2003  
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
A. Distribution of grants by                                                                                                                                                                    
 function:                                                                                                                                                                                      
  Natural resources and environment..      0.1      0.2      0.4      2.4      5.4       4.1       3.7       4.1       3.9       4.1       4.2       4.1       4.4       4.4       4.2       4.1
   Agriculture.......................      0.2      0.5      0.6      0.4      0.6       2.4       1.3       0.8       0.6       0.6       0.7       0.7       0.7       0.7       0.7       0.7
  Transportation.....................      3.0      4.1      4.6      5.9     13.0      17.0      19.2      25.8      26.0      26.8      27.7      28.4      28.7      28.8      29.0      29.1
  Community and regional development.      0.1      0.6      1.8      2.8      6.5       5.2       5.0       7.2       7.9       8.2       9.2       9.0       8.5       7.6       6.7       5.9
  Education, training, employment,                                                                                                                                                              
   and social services...............      0.5      1.1      6.4     12.1     21.9      17.8      23.4      34.1      34.0      34.7      36.2      40.0      42.7      43.1      43.7      44.3
  Health.............................      0.2      0.6      3.8      8.8     15.8      24.5      43.9      93.6      97.7      99.0     105.4     113.7     120.9     129.7     139.0     149.8
  Income security....................      2.6      3.5      5.8      9.4     18.5      27.2      35.2      55.1      53.4      55.0      61.2      64.4      67.4      68.9      70.1      71.2
  General government.................      0.2      0.2      0.5      7.1      8.6       6.8       2.3       2.2       2.1       2.2       2.3       5.4       5.8       6.4       6.7       7.1
  Justice............................      0.0      0.0      0.0      0.7      0.5       0.1       0.6       1.2       1.5       2.8       3.3       4.8       4.5       4.5       4.1       3.6
  Other..............................      0.0      0.1      0.1      0.2      0.7       0.8       0.8       0.8       0.8       0.7       0.7       0.8       0.8       0.9       0.8       0.9
                                      ----------------------------------------------------------------------------------------------------------------------------------------------------------
    Total............................      7.0     10.9     24.1     49.8     91.4     105.9     135.3     225.0     227.8     234.2     250.9     271.3     284.3     295.1     304.9     316.6
                                                                                                                                                                                                
B. Distribution of Grants by major                                                                                                                                                              
 BEA Category:                                                                                                                                                                                  
  Discretionary......................       NA      2.9     10.1     21.0     53.2      55.5      63.4      94.0      94.0      96.2     101.8     107.0     109.4     109.9     108.0     106.5
  Mandatory..........................       NA      8.0     13.9     28.8     38.1      50.4      72.0     131.0     133.9     138.0     149.1     164.2     174.8     185.2     196.9     210.1
                                      ----------------------------------------------------------------------------------------------------------------------------------------------------------
    Total............................      7.0     10.9     24.1     49.8     91.4     105.9     135.3     225.0     227.8     234.2     250.9     271.3     284.3     295.1     304.9     316.6
                                                                                                                                                                                                
C. 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     144.2     156.8     166.0     176.1     188.1     198.9     211.2
    Physical capital \1\.............      3.3      5.0      7.1     10.9     22.6      24.9      27.2      39.6      40.4      41.5      44.1      44.4      45.3      45.0      43.8      43.2
    Other grants.....................      1.2      2.2      8.3     22.2     36.2      31.6      32.5      44.2      44.7      48.5      50.1      60.9      62.9      62.0      62.2      62.2
                                      ----------------------------------------------------------------------------------------------------------------------------------------------------------
    Total............................      7.0     10.9     24.1     49.8     91.4     105.9     135.3     225.0     227.8     234.2     250.9     271.3     284.3     295.1     304.9     316.6
                                                                                                                                                                                                
  Percentage of total grants:                                                                                                                                                                   
    Payments for individuals \1\.....      35%      34%      36%      34%      36%       47%       56%       63%       63%       62%       62%       61%       62%       64%       65%       67%
    Physical capital \1\.............      47%      46%      29%      22%      25%       24%       20%       18%       18%       18%       18%       16%       16%       15%       14%       14%
    Other grants.....................      17%      20%      34%      45%      40%       30%       24%       20%       20%       21%       20%       22%       22%       21%       20%       20%
                                      ----------------------------------------------------------------------------------------------------------------------------------------------------------
    Total............................     100%     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     130.6     129.1     127.0     135.2     140.1     145.3     151.8     156.9     162.9
    Physical capital \1\.............     15.0     21.3     23.8     22.3     33.6      29.5      28.0      36.7      36.5      36.6      38.1      37.4      37.3      36.2      34.3      33.0
    Other grants.....................      7.6     11.9     33.1     61.3     65.4      40.9      34.9      40.9      39.9      42.2      42.7      50.7      51.2      49.2      48.1      47.0
                                      ----------------------------------------------------------------------------------------------------------------------------------------------------------
    Total............................     33.4     48.2     86.9    126.6    155.7     135.6     144.7     208.2     205.5     205.8     215.9     228.3     233.8     237.1     239.4     242.9
                                                                                                                                                                                                
D. Total grants as a percent of:                                                                                                                                                                
  Federal outlays:                                                                                                                                                                              
    Total............................       8%       9%      12%      15%      15%       11%       11%       15%       15%       15%       15%       16%       16%       16%       16%       16%
    Domestic programs \2\............      18%      18%      23%      22%      22%       18%       17%       22%       21%       21%       21%       22%       22%       22%       22%       22%
  State and local expenditures.......      19%      20%      24%      27%      31%       25%       21%       25%       24%       24%       N/A       N/A       N/A       N/A       N/A       N/A
  Gross domestic product.............       1%       2%       2%       3%       3%        3%        2%        3%        3%        3%        3%        3%        3%        3%        3%        3%
                                                                                                                                                                                                
E. As a share of total State and                                                                                                                                                                
 local capital spending:                                                                                                                                                                        
  Federal capital grants.............      25%      26%      26%      26%      36%       31%       23%       27%       26%       25%       N/A       N/A       N/A       N/A       N/A       N/A
  State and local source financing...      75%      74%      74%      74%      64%       69%       77%       73%       74%       75%       N/A       N/A       N/A       N/A       N/A       N/A
                                      ----------------------------------------------------------------------------------------------------------------------------------------------------------
    Total............................     100%     100%     100%     100%     100%      100%      100%      100%      100%      100%       N/A       N/A       N/A       N/A       N/A       N/A
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
N/A = 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                                                                                       


for construction of the Interstate Highway System. The relative share of 
these outlays has declined, as payments for individuals have grown. In 
1999, grants for physical capital are estimated to be 16 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 22 percent of total grants in 
1999.
  Section C 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 $228.3 billion in 1999, an average 
annual increase of 5.2 percent. Grants for payments to individ

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uals increase from $81.9 billion in 1990 to an estimated $140.1 billion 
in 1999, an average annual increase of 6.1 percent; grants for physical 
capital increase from $28.0 billion in 1990 to an estimated $37.4 
billion in 1999, an average annual increase of 3.3 percent, and other 
grants increased from $34.9 billion in 1990 to an estimated $50.7 
billion in 1999, an average annual increase of 4.8 percent.
  Section D 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 16 percent in 1999. Grants as a 
percentage of domestic spending are estimated to be 22 percent in 1999.
  As a percentage of total State and local expenditures, grants have 
increased from 21 percent in 1990 to 24 percent in 1997.
  Section E 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 25 percent in 1997.

     OTHER INFORMATION ON FEDERAL AID TO STATE AND LOCALGOVERNMENTS

  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 18, ``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.
  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. This table displays discretionary and mandatory grant 
programs separately.

[[Page 218]]



             Table 9-3.  FEDERAL GRANTS TO STATE AND LOCAL GOVERNMENTS--BUDGET AUTHORITY AND OUTLAYS            
                                            (in millions of dollars)                                            
----------------------------------------------------------------------------------------------------------------
                                            Budget Authority                             Outlays                
Category, Function, Agency and ---------------------------------------------------------------------------------
            Program                 1997         1998          1999          1997         1998          1999    
                                  Actual      Estimate      Estimate       Actual      Estimate      Estimate   
----------------------------------------------------------------------------------------------------------------
         Discretionary                                                                                          
Energy:                                                                                                         
  Department of Energy:                                                                                         
    Energy Programs:                                                                                            
      Energy conservation.....         150           155      191               168           160           165 
                               ---------------------------------------------------------------------------------
      Total, energy...........         150           155      191               168           160           165 
                               =================================================================================
Natural resources and                                                                                           
 environment:                                                                                                   
  Department of Agriculture:                                                                                    
    Natural Resources                                                                                           
     Conservation Service:                                                                                      
      Resource conservation                                                                                     
       and development........  ...........  ............  ............           2             1             1 
      Watershed and flood                                                                                       
       prevention operations..         265            47       49               174           279            68 
    Forest Service:                                                                                             
      State and private                                                                                         
       forestry...............          90            94       79               101           100            78 
  Department of Commerce:                                                                                       
    National Oceanic and                                                                                        
     Atmospheric                                                                                                
     Administration:                                                                                            
      Operations, research,                                                                                     
       and facilities.........           7             3        3                 2             2             2 
      Coastal zone management                                                                                   
       fund...................           4             4   ............           5             8   ............
  Department of the Interior:                                                                                   
    Office of Surface Mining                                                                                    
     Reclamation and                                                                                            
     Enforcement:                                                                                               
      Regulation and                                                                                            
       technology.............          51            50       51                51            50            51 
      Abandoned mine                                                                                            
       reclamation fund.......         164           164      167               182           167           148 
    Bureau of Reclamation:                                                                                      
      Bureau of reclamation                                                                                     
       loan subsidy...........          13            12       12                10            20            11 
    United States Fish and                                                                                      
     Wildlife Service:                                                                                          
      Cooperative endangered                                                                                    
       species conservation                                                                                     
       fund...................          14            14       17                 9            11            14 
      Wildlife conservation                                                                                     
       and appreciation fund..           1             1        1                 1             1             1 
      Miscellaneous permanent                                                                                   
       appropriations.........           2             2        2                 2             2             2 
    National Park Service:                                                                                      
      Urban park and                                                                                            
       recreation fund........  ...........  ............       2                 2             3             2 
      Land acquisition and                                                                                      
       State assistance.......  ...........  ............  ............          20            20             9 
      Historic preservation                                                                                     
       fund...................          37            41      101                40            45            62 
  Environmental Protection                                                                                      
   Agency:                                                                                                      
    Environmental Protection                                                                                    
     Agency:                                                                                                    
      State and Tribal                                                                                          
       Assistance Grants......       2,910         3,213    2,903             2,719         2,553         2,781 
      Hazardous substance                                                                                       
       superfund..............         143           131      335               135           140           227 
      Leaking underground                                                                                       
       storage tank trust fund          51            56       61                53            55            59 
                               ---------------------------------------------------------------------------------
      Total, natural resources                                                                                  
       and environment........       3,752         3,832    3,783             3,508         3,457         3,516 
                               =================================================================================
Agriculture:                                                                                                    
  Department of Agriculture:                                                                                    
    Departmental                                                                                                
     Administration:                                                                                            
      Outreach for socially                                                                                     
       disadvantaged farmers..           1             3       10                 2             5            10 
    Cooperative State                                                                                           
     Research, Education, and                                                                                   
     Extension Service:                                                                                         
      Extension activities....         426           423      419               420           420           420 
      Research and education                                                                                    
       activities.............         222           222      216               207           223           227 
      Integrated research,                                                                                      
       education, and                                                                                           
       extension competitive                                                                                    
       grants program.........  ...........  ............       4        ...........  ............            2 
    Agricultural Marketing                                                                                      
     Service:                                                                                                   
      Payments to States and                                                                                    
       possessions............           1             1        1                 1             1             1 
    Farm Service Agency:                                                                                        
      State mediation grants..           2             2        4                 3             2             3 
                               ---------------------------------------------------------------------------------
      Total, agriculture......         652           651      654               633           651           663 
                               =================================================================================
Commerce and housing credit:                                                                                    
  Department of Commerce:                                                                                       
    National Institute of                                                                                       
     Standards and Technology:                                                                                  
      Industrial technology                                                                                     
       services...............           6             6        7                 4             4             4 
                               ---------------------------------------------------------------------------------
      Total, commerce and                                                                                       
       housing credit.........           6             6        7                 4             4             4 
                               =================================================================================
Transportation:                                                                                                 
  Department of                                                                                                 
   Transportation:                                                                                              
    Coast Guard:                                                                                                
      Port safety development.           5   ............  ............           5   ............  ............

[[Page 219]]

                                                                                                                
      Boat safety.............          35            35   ............          26            30            18 
    Federal Aviation                                                                                            
     Administration:                                                                                            
      Grants-in-aid for                                                                                         
       airports (Airport and                                                                                    
       airway trust fund).....       1,460         1,700    1,700             1,489         1,554         1,636 
    Federal Highway                                                                                             
     Administration:                                                                                            
      Orange County (CA) toll                                                                                   
       road demonstration                                                                                       
       project subsidy........  ...........  ............  ............           1             1             1 
      State infrastructure                                                                                      
       banks..................         150   ............  ............           2            84            32 
      Appalachian development                                                                                   
       highway system.........  ...........          300   ............  ...........           81           123 
      Highway-related safety                                                                                    
       grants.................  ...........  ............  ............           9             4             2 
      Motor carrier safety                                                                                      
       program................          79            85      100                78            80            89 
      Transportation                                                                                            
       infrastructure credit                                                                                    
       enhancement program....  ...........  ............     100        ...........  ............           75 
      Federal-aid highways....      19,455        21,262   21,257            18,422        19,533        20,393 
      State infrastructure                                                                                      
       banks (Highway trust                                                                                     
       fund)..................  ...........  ............     150        ...........  ............           30 
      Miscellaneous                                                                                             
       appropriations.........  ...........  ............  ............         178           123           108 
      Miscellaneous highway                                                                                     
       trust funds............  ...........  ............  ............          56            64            53 
    National Highway Traffic                                                                                    
     Safety Administration:                                                                                     
      Highway traffic safety                                                                                    
       grants.................         162           180      227               142           171           199 
    Federal Railroad                                                                                            
     Administration:                                                                                            
      Emergency railroad                                                                                        
       rehabilitation and                                                                                       
       repair.................          19   ............  ............  ...........            8             8 
      Direct loan financing                                                                                     
       program................          59   ............  ............          21            21            18 
      Local rail freight                                                                                        
       assistance.............  ...........  ............  ............           7             4             4 
      Alaska railroad                                                                                           
       rehabilitation.........          10            10   ............           8             6             6 
      Railroad research and                                                                                     
       development............           1             3        1                 1             1             1 
      Conrail commuter                                                                                          
       transition assistance..  ...........  ............  ............           2             2            11 
    Federal Transit                                                                                             
     Administration:                                                                                            
      Research, training, and                                                                                   
       human resources........  ...........  ............  ............           5             3             2 
      Interstate transfer                                                                                       
       grants-transit.........  ...........  ............  ............          18            19             5 
      Washington metropolitan                                                                                   
       area transit authority.         200           200   ............         214           202           152 
      Formula grants..........       2,149         2,500   ............       2,199         2,054         1,710 
      Transit planning and                                                                                      
       research...............          55            61   ............          53            50            63 
      Major capital                                                                                             
       investments (Highway                                                                                     
       trust fund, mass                                                                                         
       transit account).......       1,898         2,000      876             2,002         1,738         1,698 
      Washington metropolitan                                                                                   
       area transit authority                                                                                   
       (Highway trust fund,                                                                                     
       mass transit account)..  ...........  ............      50        ...........  ............            1 
      Formula programs                                                                                          
       (Highway trust fund,                                                                                     
       mass transit account)..  ...........  ............   3,709        ...........  ............          185 
      Miscellaneous expired                                                                                     
       accounts...............  ...........  ............  ............           8             2             1 
    Research and Special                                                                                        
     Programs Administration:                                                                                   
      Pipeline safety.........          13            14       15                12            13            14 
                               ---------------------------------------------------------------------------------
      Total, Transportation...      25,750        28,350   28,185            24,958        25,848        26,638 
                               =================================================================================
Community and regional                                                                                          
 development:                                                                                                   
  Department of Agriculture:                                                                                    
    Rural Development:                                                                                          
      Rural community                                                                                           
       advancement program....         654           644      706               627           645           640 
    Rural Utilities Service:                                                                                    
      Distance learning and                                                                                     
       medical link subsidy...           9            13       15                 3            22            25 
    Rural Housing Service:                                                                                      
      Rural community fire                                                                                      
       protection grants......           1             2   ............           2             2             1 
    Rural Business--                                                                                            
     Cooperative Service:                                                                                       
      Rural cooperative                                                                                         
       development grants.....           3             3        6                 2             4             6 
    Forest Service:                                                                                             
      Southeast Alaska                                                                                          
       economic disaster fund.  ...........  ............  ............          47            13            13 
  Department of Commerce:                                                                                       
    Economic Development                                                                                        
     Administration:                                                                                            
      Economic development                                                                                      
       assistance programs....         404           340      368               400           417           401 
  Department of Housing and                                                                                     
   Urban Development:                                                                                           
    Community Planning and                                                                                      
     Development:                                                                                               
      Community development                                                                                     
       block grants...........       4,854         4,924    4,725             4,517         4,989         4,959 
      Urban development action                                                                                  
       grants.................          -4   ............  ............          30            50            30 
      Economic development                                                                                      
       initiative.............  ...........  ............     400        ...........  ............            8 
      Supplemental assistance                                                                                   
       for facilities to                                                                                        
       assist the homeless....  ...........  ............  ............           2             2   ............
      Community development                                                                                     
       loan guarantees subsidy          32            30       30                 3            16            19 
      Brownfields                                                                                               
       redevelopment..........  ...........           25       50        ...........            1            10 
      Urban empowerment zones.  ...........            5   ............  ...........  ............            2 
      Homeownership zones.....  ...........  ............      25        ...........  ............            1 
    Office of Lead Hazard                                                                                       
     Control:                                                                                                   
      Lead hazard reduction...  ...........  ............      85        ...........  ............            1 

[[Page 220]]

                                                                                                                
  Department of the Interior:                                                                                   
    Bureau of Indian Affairs:                                                                                   
      Operation of Indian                                                                                       
       programs...............         151           119      131               110           117           112 
      Indian guaranteed loan                                                                                    
       subsidy................          37             5        5                33             5             5 
  Federal Emergency Management                                                                                  
   Agency:                                                                                                      
    Federal Emergency                                                                                           
     Management Agency:                                                                                         
      Emergency management                                                                                      
       planning and assistance         133           159      119               108           144           138 
      Disaster relief.........       3,696           256      246             2,041         2,602         2,376 
      Pre-disaster mitigation.  ...........  ............      45        ...........  ............           22 
  Appalachian Regional                                                                                          
   Commission:                                                                                                  
    Appalachian Regional                                                                                        
     Commission:                                                                                                
      Appalachian regional                                                                                      
       commission.............         154           164       60               236           159           176 
      Delta region economic                                                                                     
       development program....  ...........  ............      24        ...........  ............            2 
                               ---------------------------------------------------------------------------------
      Total, community and                                                                                      
       regional development...      10,124         6,689    7,040             8,161         9,188         8,947 
                               =================================================================================
Education, training,                                                                                            
 employment, and social                                                                                         
 services:                                                                                                      
  Department of Commerce:                                                                                       
    National                                                                                                    
     Telecommunications and                                                                                     
     Information                                                                                                
     Administration:                                                                                            
      Public                                                                                                    
       telecommunications                                                                                       
       facilities and digital                                                                                   
       broadcast applications                                                                                   
       program................          13            19       14                17            21            21 
      Information                                                                                               
       infrastructure grants..          21            20       22                28            27            25 
  Department of Education:                                                                                      
    Office of Elementary and                                                                                    
     Secondary Education:                                                                                       
      America Reads Challenge.  ...........  ............     260        ...........  ............           14 
      Indian education........          58            60       65                51            52            65 
      Impact aid..............         730           805      686               651         1,001           716 
      Chicago litigation                                                                                        
       settlement.............  ...........  ............  ............  ...........            5             2 
      Education Reform........         677         1,100    1,090               427           648         1,095 
      Education for the                                                                                         
       disadvantaged..........       7,772         7,852    8,469             7,187         6,231         7,923 
      School improvement                                                                                        
       programs...............       1,323         1,427    1,345             1,187         1,282         1,362 
    Office of Bilingual                                                                                         
     Education and Minority                                                                                     
     Languages Affairs:                                                                                         
      Bilingual and immigrant                                                                                   
       education..............         254           324      332               171           268           318 
    Office of Special                                                                                           
     Education and                                                                                              
     Rehabilitative Services:                                                                                   
      Special education.......       3,784         4,560    4,590             3,067         3,584         4,075 
      American printing house                                                                                   
       for the blind..........           7             7        7                 7             8             7 
    Office of Vocational and                                                                                    
     Adult Education:                                                                                           
      Vocational and adult                                                                                      
       education..............       1,458         1,478    1,501             1,375         1,306         1,467 
    Office of Postsecondary                                                                                     
     Education:                                                                                                 
      Student financial                                                                                         
       assistance.............          50            25   ............          43            50            20 
      Higher education........          33            55       39                32            34            49 
    Office of Educational                                                                                       
     Research and Improvement:                                                                                  
      Title I--Education                                                                                        
       research, statistics,                                                                                    
       and improvement........         204            45      205                44           159            67 
  Department of Health and                                                                                      
   Human Services:                                                                                              
    Administration for                                                                                          
     Children and Families:                                                                                     
      Children and families                                                                                     
       services programs......       5,087         5,408    5,676             4,876         5,233         5,519 
    Administration on Aging:                                                                                    
      Aging services programs.         832           865      871               828           851           860 
  Department of the Interior:                                                                                   
    Bureau of Indian Affairs:                                                                                   
      Operation of Indian                                                                                       
       programs...............          79            90      106                90            80            84 
  Department of Labor:                                                                                          
    Employment and Training                                                                                     
     Administration:                                                                                            
      Training and employment                                                                                   
       services...............       3,513         3,647    3,809             3,324         3,643         3,440 
      Community service                                                                                         
       employment for older                                                                                     
       Americans..............         102            97       97                88           100            97 
      State unemployment                                                                                        
       insurance and                                                                                            
       employment service                                                                                       
       operations.............         200           203      192               105           233           180 
      Unemployment trust fund.         980           981      982             1,032           981           974 
  Corporation for National and                                                                                  
   Community Service:                                                                                           
    Corporation for National                                                                                    
     and Community Service:                                                                                     
      Domestic volunteer                                                                                        
       service programs,                                                                                        
       Operating expenses.....         135           162      175               143           152           168 
      National and community                                                                                    
       service programs,                                                                                        
       operating expenses.....          72            77       90                65            55            81 
  Corporation for Public                                                                                        
   Broadcasting:                                                                                                
    Corporation for Public                                                                                      
     Broadcasting:                                                                                              
      Corporation for public                                                                                    
       broadcasting...........          87            83       83                87            83            83 
  National Endowment for the                                                                                    
   Arts:                                                                                                        
    National Endowment for the                                                                                  
     Arts:                                                                                                      
      National endowment for                                                                                    
       the arts: Grants and                                                                                     
       administration.........          28            32       47                28            34            33 

[[Page 221]]

                                                                                                                
  Institute of Museum and                                                                                       
   Library Services:                                                                                            
    Institute of Museum and                                                                                     
     Library Services:                                                                                          
      Office of Museum                                                                                          
       Services: Grants and                                                                                     
       administration.........           6             5        6                 6             8             5 
      Office of Library                                                                                         
       Services: Grants and                                                                                     
       administration.........         128           129      131               132           171           129 
                               ---------------------------------------------------------------------------------
      Total, education,                                                                                         
       training, employment,                                                                                    
       and social services....      27,633        29,556   30,890            25,091        26,300        28,879 
                               =================================================================================
Health:                                                                                                         
  Department of Agriculture:                                                                                    
    Food Safety and Inspection                                                                                  
     Service:                                                                                                   
      Salaries and expenses...          42            43       42                42            43            42 
  Department of Health and                                                                                      
   Human Services:                                                                                              
    Health Resources and                                                                                        
     Services Administration:                                                                                   
      Health Resources and                                                                                      
       Services...............       1,682         1,762    1,793             1,080         1,132         1,151 
    Centers for Disease                                                                                         
     Control and Prevention:                                                                                    
      Disease control,                                                                                          
       research, and training.         678           666      674               596           643           666 
    Substance Abuse and Mental                                                                                  
     Health Services                                                                                            
     Administration:                                                                                            
      Substance abuse and                                                                                       
       mental health services.       2,195         2,197    2,280             1,622         2,164         2,193 
  Department of Labor:                                                                                          
    Occupational Safety and                                                                                     
     Health Administration:                                                                                     
      Salaries and expenses...          77            78       81                76            77            80 
    Mine Safety and Health                                                                                      
     Administration:                                                                                            
      Salaries and expenses...           6             6        6                 6             6             6 
                               ---------------------------------------------------------------------------------
      Total, health...........       4,680         4,752    4,876             3,422         4,065         4,138 
                               =================================================================================
Income security:                                                                                                
  Department of Agriculture:                                                                                    
    Food and Nutrition                                                                                          
     Service:                                                                                                   
      Commodity assistance                                                                                      
       program................         307           282      317               319           290           315 
      Special supplemental                                                                                      
       nutrition program for                                                                                    
       women, infants, and                                                                                      
       children (WIC).........       3,803         3,921    4,078             3,863         3,946         4,049 
  Department of Health and                                                                                      
   Human Services:                                                                                              
    Administration for                                                                                          
     Children and Families:                                                                                     
      Low income home energy                                                                                    
       assistance.............       1,215         1,000    1,100             1,221         1,074         1,077 
      Refugee and entrant                                                                                       
       assistance.............         380           377      369               277           363           361 
      Payments to States for                                                                                    
       the child care and                                                                                       
       development block grant          19         1,003    1,183               909           980         1,068 
  Department of Housing and                                                                                     
   Urban Development:                                                                                           
    Public and Indian Housing                                                                                   
     Programs:                                                                                                  
      Public housing operating                                                                                  
       fund...................  ...........        2,900    2,818             1,530         3,090         2,861 
      Annual contributions for                                                                                  
       assisted housing.......      -3,725   ............  ............      12,142         4,263         1,854 
      Drug elimination grants                                                                                   
       for low-income housing.         290           310      310               291           288           273 
      Revitalization of                                                                                         
       severely distressed                                                                                      
       public housing (HOPE                                                                                     
       VI)....................         550           550      550               205           405           524 
      Public housing capital                                                                                    
       fund...................  ...........        2,500    2,550        ...........        3,810         3,511 
      Preserving existing                                                                                       
       housing investment.....       5,753   ............  ............       1,483   ............  ............
      Native American housing                                                                                   
       block grant............  ...........          600      600        ...........           81           240 
      Section 8 reserve                                                                                         
       preservation account...  ...........         -550   ............  ...........          350         2,176 
      Housing certificate fund       2,768         6,191    4,874                51         3,550         4,428 
      Welfare-to-work housing                                                                                   
       vouchers...............  ...........  ............     283        ...........  ............           27 
    Community Planning and                                                                                      
     Development:                                                                                               
      Home loan guarantee                                                                                       
       subsidy................  ...........  ............      11        ...........  ............            3 
      Emergency shelter grants                                                                                  
       program................  ...........  ............  ............           4             2   ............
      Supportive housing                                                                                        
       program................  ...........           -6   ............         159           146           112 
      Homeless assistance                                                                                       
       grants.................         823           823    1,150               319           609           798 
      Shelter plus care.......  ...........           -4   ............          58            47            49 
      Home investment                                                                                           
       partnership program....       1,400         1,500    1,883             1,211         1,559         1,525 
      Youthbuild program......  ...........  ............      45                32             8             5 
      Innovative homeless                                                                                       
       initiatives                                                                                              
       demonstration program..  ...........  ............  ............          21            17            16 
      Housing opportunities                                                                                     
       for persons with AIDS..         196           204      225               130           168           176 
    Housing Programs:                                                                                           
      Congregate services.....  ...........  ............  ............           7             7             7 
      Section 8 moderate                                                                                        
       rehabilitation, single                                                                                   
       room occupancy.........  ...........  ............  ............          25            58            56 
      Homeownership and                                                                                         
       opportunity for people                                                                                   
       everywhere grants (HOPE                                                                                  
       grants)................         -30   ............  ............          49            51            42 
      Housing for special                                                                                       
       populations............  ...........          839   ............  ...........          650           759 
  Department of Labor:                                                                                          
    Employment and Training                                                                                     
     Administration:                                                                                            
      Unemployment trust fund.       2,345         2,485    2,590             2,293         2,421         2,638 

[[Page 222]]

                                                                                                                
  Federal Emergency Management                                                                                  
   Agency:                                                                                                      
    Federal Emergency                                                                                           
     Management Agency:                                                                                         
      Emergency food and                                                                                        
       shelter program........         100           100      100               100           100           100 
                               ---------------------------------------------------------------------------------
      Total, income security..      16,194        25,025   25,036            26,699        28,333        29,050 
                               =================================================================================
Veterans benefits and                                                                                           
 services:                                                                                                      
  Department of Veterans                                                                                        
   Affairs:                                                                                                     
    Veterans Health                                                                                             
     Administration:                                                                                            
      Medical care............         230           241      271               230           241           271 
    Construction:                                                                                               
      Grants for construction                                                                                   
       of State extended care                                                                                   
       facilities.............          47            80       37                41            47            52 
      Grants for the                                                                                            
       construction of State                                                                                    
       veterans cemeteries....           1            10       10                 6             2             5 
                               ---------------------------------------------------------------------------------
      Total, veterans benefits                                                                                  
       and services...........         278           331      318               277           290           328 
                               =================================================================================
Administration of justice:                                                                                      
  Department of Health and                                                                                      
   Human Services:                                                                                              
    Administration for                                                                                          
     Children and Families:                                                                                     
      Violent crime reduction                                                                                   
       programs...............          17            72       84                10            32            62 
  Department of Housing and                                                                                     
   Urban Development:                                                                                           
    Fair Housing and Equal                                                                                      
     Opportunity:                                                                                               
      Fair housing activities.          30            30       52                28            22            29 
  Department of Justice:                                                                                        
    Office of Justice                                                                                           
     Programs:                                                                                                  
      Justice assistance......          66           104       82               217            82            85 
      State and local law                                                                                       
       enforcement assistance.         331           504   ............         257           242           497 
      Juvenile crime control                                                                                    
       and prevention programs         145           211      260                74           182           244 
      Violent crime reduction                                                                                   
       programs...............       2,036         2,382    2,409             1,172         1,164         1,909 
      Community oriented                                                                                        
       policing services......       1,420         1,430    1,420               616           838         1,241 
    Violent Crime Reduction                                                                                     
     Trust Fund:                                                                                                
      Violent crime reduction                                                                                   
       trust fund.............  ...........  ............  ............  ...........  ............  ............
  District of Columbia                                                                                          
   Offender Supervision                                                                                         
   Defender and Courts Se:                                                                                      
    District of Columbia                                                                                        
     Offender Supervision                                                                                       
     Defender and Courts Se:                                                                                    
      Salaries and expenses...  ...........  ............      59        ...........  ............           47 
  Equal Employment Opportunity                                                                                  
   Commission:                                                                                                  
    Equal Employment                                                                                            
     Opportunity Commission:                                                                                    
      Salaries and expenses...          28            28       29                25            25            14 
  Ounce of Prevention Council:                                                                                  
    Ounce of Prevention                                                                                         
     Council:                                                                                                   
      Ounce of prevention                                                                                       
       council................           1   ............  ............           1   ............  ............
  State Justice Institute:                                                                                      
    State Justice Institute:                                                                                    
      State Justice Institute:                                                                                  
       Salaries and expenses..           6             7        6                 6             7             8 
                               ---------------------------------------------------------------------------------
      Total, administration of                                                                                  
       justice................       4,080         4,768    4,401             2,406         2,594         4,136 
                               =================================================================================
General government:                                                                                             
  Department of the Interior:                                                                                   
    Bureau of Land Management:                                                                                  
      Payments in lieu of                                                                                       
       taxes..................         114           120      120               114           120           120 
    Insular Affairs:                                                                                            
      Trust Territory of the                                                                                    
       Pacific Islands........  ...........  ............  ............           6            10            10 
  District of Columbia:                                                                                         
    District of Columbia:                                                                                       
      Federal payment to the                                                                                    
       District of Columbia...         719   ............  ............         719   ............  ............
      Federal payment for                                                                                       
       Management Reform......  ...........            8   ............  ...........            8   ............
      Payment to the District                                                                                   
       of Columbia Corrections                                                                                  
       Trustee, Operations....  ...........          169      185        ...........          169           185 
      Payment to the District                                                                                   
       of Columbia Corrections                                                                                  
       Trustee for                                                                                              
       correctional                                                                                             
       facilities,                                                                                              
       construction, and                                                                                        
       repair.................  ...........          302   ............  ...........          302   ............
      Federal support for                                                                                       
       economic development                                                                                     
       and management reforms                                                                                   
       in the District........  ...........          190      100        ...........          190           100 
      Federal payment to the                                                                                    
       District of Columbia                                                                                     
       Criminal Justice System  ...........          151   ............  ...........          151   ............
      Federal payment for                                                                                       
       Medicare Coordinated                                                                                     
       Care Demonstration                                                                                       
       Project................  ...........            3   ............  ...........  ............  ............
      Federal Payment to the                                                                                    
       District of Columbia                                                                                     
       Courts.................  ...........  ............     142        ...........  ............          142 
                               ---------------------------------------------------------------------------------
      Total, general                                                                                            
       government.............         833           943      547               839           950           557 
                               ---------------------------------------------------------------------------------

[[Page 223]]

                                                                                                                
      Total, discretionary....      94,132       105,058   105,928           96,166       101,840       107,021 
                               =================================================================================
           Mandatory                                                                                            
Energy:                                                                                                         
  Tennessee Valley Authority:                                                                                   
    Tennessee Valley                                                                                            
     Authority:                                                                                                 
      Tennessee Valley                                                                                          
       Authority fund.........         272           264      303               272           264           303 
                               ---------------------------------------------------------------------------------
      Total, energy...........         272           264      303               272           264           303 
                               =================================================================================
Natural resources and                                                                                           
 environment:                                                                                                   
  Department of the Interior:                                                                                   
    Bureau of Land Management:                                                                                  
      Miscellaneous permanent                                                                                   
       payment accounts.......         123            76       74               123            77            74 
    Minerals Management                                                                                         
     Service:                                                                                                   
      National forests fund,                                                                                    
       payment to States......           4             3        3                 4             3             3 
      Leases of lands acquired                                                                                  
       for flood control,                                                                                       
       navigation, and allied                                                                                   
       purposes...............           1             1        1                 1             1             1 
    United States Fish and                                                                                      
     Wildlife Service:                                                                                          
      Federal aid in wildlife                                                                                   
       restoration............         203           189      199               220           227           211 
      Sport fish restoration..         316           321      286               230           290           297 
    National Park Service:                                                                                      
      Miscellaneous permanent                                                                                   
       appropriations.........  ...........  ............  ............  ...........  ............  ............
    Departmental Management:                                                                                    
      Everglades watershed                                                                                      
       protection.............  ...........  ............  ............          35           165   ............
      Everglades restoration                                                                                    
       account................  ...........  ............       1        ...........  ............            1 
                               ---------------------------------------------------------------------------------
      Total, natural resources                                                                                  
       and environment........         647           590      564               613           763           587 
                               =================================================================================
Agriculture:                                                                                                    
  Department of Agriculture:                                                                                    
    Office of the Secretary:                                                                                    
      Fund for rural America..          36   ............      50        ...........           14            16 
    Farm Service Agency:                                                                                        
      Commodity credit                                                                                          
       corporation fund.......           1            37       50                 1            37            50 
                               ---------------------------------------------------------------------------------
      Total, agriculture......          37            37      100                 1            51            66 
                               =================================================================================
Commerce and housing credit:                                                                                    
  Department of Commerce:                                                                                       
    National Oceanic and                                                                                        
     Atmospheric                                                                                                
     Administration:                                                                                            
      Promote and develop                                                                                       
       fishery products and                                                                                     
       research pertaining to                                                                                   
       American fisheries.....  ...........            4        3                 5             7             3 
                               ---------------------------------------------------------------------------------
      Total, commerce and                                                                                       
       housing credit.........  ...........            4        3                 5             7             3 
                               =================================================================================
Transportation:                                                                                                 
  Department of                                                                                                 
   Transportation:                                                                                              
    Federal Highway                                                                                             
     Administration:                                                                                            
      Federal-aid highways....       1,847           890      774             1,882         1,890         1,707 
    Research and Special                                                                                        
     Programs Administration:                                                                                   
      Emergency preparedness                                                                                    
       grants.................           6             7       13                 6             6             8 
                               ---------------------------------------------------------------------------------
      Total, Transportation...       1,853           897      787             1,888         1,896         1,715 
                               =================================================================================
Community and regional                                                                                          
 development:                                                                                                   
  Department of Agriculture:                                                                                    
    Rural Development:                                                                                          
      Rural empowerment zones/                                                                                  
       enterprise community                                                                                     
       grants.................  ...........  ............      20        ...........  ............  ............
  Department of Housing and                                                                                     
   Urban Development:                                                                                           
    Community Planning and                                                                                      
     Development:                                                                                               
      Urban empowerment zones.  ...........  ............     150        ...........  ............            3 
                               ---------------------------------------------------------------------------------
      Total, community and                                                                                      
       regional development...  ...........  ............     170        ...........  ............            3 
                               =================================================================================
Education, training,                                                                                            
 employment, and social                                                                                         
 services:                                                                                                      
  Department of Education:                                                                                      
    Office of Elementary and                                                                                    
     Secondary Education:                                                                                       
      Class size reduction and                                                                                  
       teacher financing......  ...........  ............   1,100        ...........  ............           55 

[[Page 224]]

                                                                                                                
    Office of Special                                                                                           
     Education and                                                                                              
     Rehabilitative Services:                                                                                   
      Rehabilitation services                                                                                   
       and disability research       2,254         2,327    2,379             2,243         2,269         2,536 
    Office of Vocational and                                                                                    
     Adult Education:                                                                                           
      Vocational and adult                                                                                      
       education..............           7   ............  ............           7             6             2 
  Department of Health and                                                                                      
   Human Services:                                                                                              
    Administration for                                                                                          
     Children and Families:                                                                                     
      State legalization                                                                                        
       impact assistance                                                                                        
       grants.................  ...........  ............  ............          -5   ............  ............
      Job opportunities and                                                                                     
       basic skills training                                                                                    
       program................       1,000   ............  ............         445           152             6 
      Family preservation and                                                                                   
       support................         240           255      275               216           236           252 
      Social services block                                                                                     
       grant..................       2,500         2,299    1,909             2,571         2,443         2,049 
      Payments to states for                                                                                    
       foster care and                                                                                          
       adoption assistance....       4,445         4,311    5,142             4,047         4,224         4,803 
  Department of Labor:                                                                                          
    Employment and Training                                                                                     
     Administration:                                                                                            
      Welfare to work jobs....  ...........        1,488    1,488        ...........          466         1,299 
      Federal unemployment                                                                                      
       benefits and allowances         114           119      182               120           106           133 
                               ---------------------------------------------------------------------------------
      Total, education,                                                                                         
       training, employment,                                                                                    
       and social services....      10,560        10,799   12,475             9,644         9,902        11,135 
                               =================================================================================
Health:                                                                                                         
  Department of Health and                                                                                      
   Human Services:                                                                                              
    Health Care Financing                                                                                       
     Administration:                                                                                            
      Program management......  ...........  ............      20        ...........  ............           20 
      Grants to States for                                                                                      
       Medicaid...............     101,212        99,591   102,184           95,552       100,960       107,707 
      State children's health                                                                                   
       insurance fund.........  ...........        4,235    4,249        ...........          379         1,868 
                               ---------------------------------------------------------------------------------
      Total, health...........     101,212       103,826   106,453           95,552       101,339       109,595 
                               =================================================================================
Income security:                                                                                                
  Department of Agriculture:                                                                                    
    Agricultural Marketing                                                                                      
     Service:                                                                                                   
      Funds for strengthening                                                                                   
       markets, income, and                                                                                     
       supply (section 32)....         407           496      450               534           463           417 
    Food and Nutrition                                                                                          
     Service:                                                                                                   
      Food stamp program......       3,318         3,553    3,698             3,122         3,673         3,659 
      Child nutrition programs       8,529         7,968    9,099             8,141         8,664         8,937 
  Department of Health and                                                                                      
   Human Services:                                                                                              
    Administration for                                                                                          
     Children and Families:                                                                                     
      Family support payments                                                                                   
       to states..............       6,958           607    2,641             5,345         4,376         3,168 
      Contingency fund........  ...........           20       28        ...........           14            23 
      Child care entitlement                                                                                    
       to States..............       1,967         2,071    3,922             1,398         1,835         3,226 
      Temporary assistance for                                                                                  
       needy families.........      13,411        16,700   16,998             9,726        13,802        15,933 
      Children's research and                                                                                   
       technical assistance...  ...........  ............       8        ...........  ............            1 
                               ---------------------------------------------------------------------------------
      Total, income security..      34,590        31,415   36,844            28,266        32,827        35,364 
                               =================================================================================
Administration of justice:                                                                                      
  Department of Justice:                                                                                        
    Legal Activities and U.S.                                                                                   
     Marshals:                                                                                                  
      Assets forfeiture fund..         189           196      206               163           192           202 
    Office of Justice                                                                                           
     Programs:                                                                                                  
      Crime victims fund......         525           361      180               223           453           363 
  Department of the Treasury:                                                                                   
    Departmental Offices:                                                                                       
      Department of the                                                                                         
       Treasury forfeiture                                                                                      
       fund...................          60            60       60                53            54            54 
                               ---------------------------------------------------------------------------------
      Total, administration of                                                                                  
       justice................         774           617      446               439           699           619 
                               =================================================================================
General government:                                                                                             
  Department of Agriculture:                                                                                    
    Forest Service:                                                                                             
      Payments to states                                                                                        
       northern spotted owl                                                                                     
       guarantee, Forest                                                                                        
       Service................         135           130      270               135           130           270 
      Forest Service permanent                                                                                  
       appropriations.........         125           111        7               125           111             7 
  Department of Energy:                                                                                         
    Energy Programs:                                                                                            
      Payments to States under                                                                                  
       Federal Power Act......           3             3        3                 3             3             3 
  Department of the Interior:                                                                                   
    Minerals Management                                                                                         
     Service:                                                                                                   
      Mineral leasing and                                                                                       
       associated payments....         565           586      607               565           586           607 

[[Page 225]]

                                                                                                                
    United States Fish and                                                                                      
     Wildlife Service:                                                                                          
      National wildlife refuge                                                                                  
       fund...................          20            20       20                20            20            20 
    Insular Affairs:                                                                                            
      Assistance to                                                                                             
       territories............          65            68       66                67            69            67 
      Payments to the United                                                                                    
       States territories,                                                                                      
       fiscal assistance......          81            89       98                81            89            98 
  Department of the Treasury:                                                                                   
    Bureau of Alcohol, Tobacco                                                                                  
     and Firearms:                                                                                              
      Internal revenue                                                                                          
       collections for Puerto                                                                                   
       Rico...................         205           210      235               205           210           235 
    United States Customs                                                                                       
     Service:                                                                                                   
      Miscellaneous permanent                                                                                   
       appropriations.........         107           110      111               107           110           111 
    Allowances:                                                                                                 
      Miscellaneous activities                                                                                  
       to be authorized in                                                                                      
       tobacco legislation....  ...........  ............   3,425        ...........  ............        3,425 
  Corps of Engineers:                                                                                           
    Corps of Engineers:                                                                                         
      Permanent appropriations           6             6        6                 6             6             6 
                               ---------------------------------------------------------------------------------
      Total, general                                                                                            
       government.............       1,312         1,333    4,848             1,314         1,334         4,849 
                               ---------------------------------------------------------------------------------
      Total, mandatory........     151,257       149,782   162,993          137,994       149,082       164,239 
                               =================================================================================
      Total, grants...........     245,389       254,840   268,921          234,160       250,922       271,260 
----------------------------------------------------------------------------------------------------------------