[Analytical Perspectives]
[Special Analyses and Presentations]
[9. Aid to State and Local Governments]
[From the U.S. Government Publishing Office, www.gpo.gov]
9. AID TO STATE AND LOCAL GOVERNMENTS /1/
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\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, loan subsidies, and tax expenditures.
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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.
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 $284.7 billion in 2000 and are estimated to increase to
$316.3 billion in 2001 and $350.1 billion in 2002.
Grant outlays for payments for individuals, such as Medicaid, are
estimated to be 63.6 percent of total grants in 2002; for physical
capital investment, 16.1 percent; and for all other purposes, largely
education, training, and social services, 20.3 percent.
Federal aid to State and local governments is also provided through
tax expenditures. Tax expenditures are the result of special exclusions,
exemptions, deductions, credits, deferrals, or tax rates in the Federal
tax laws.
The two major tax expenditures benefitting 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 public purpose bonds from Federal taxation.
These provisions, on an outlay equivalent basis, are estimated to be
$102.7 billion in 2001 and $108.0 billion in 2002. 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 2000 -----------------
Actual 2001 2002
------------------------------------------------------------------------
Department of Agriculture.................... 19.0 20.5 21.2
Department of Commerce....................... 0.5 0.7 0.6
Department of Education...................... 22.2 24.5 27.1
Department of Energy......................... 0.1 0.2 0.3
Department of Health and Human Services...... 162.5 184.5 208.3
Department of Housing and Urban Development.. 25.1 26.7 27.8
Department of the Interior................... 2.2 2.7 2.6
Department of Justice........................ 4.8 4.2 5.8
Department of Labor.......................... 7.3 8.3 9.1
Department of Transportation................. 32.2 35.3 38.3
Department of the Treasury................... 0.5 0.5 0.4
Department of Veterans Affairs............... 0.4 0.4 0.5
Environmental Protection Agency.............. 3.5 3.6 3.8
Federal Emergency Management Agency.......... 2.5 2.4 2.5
Other agencies............................... 1.8 1.8 1.8
--------------------------
Total....................................... 284.7 316.3 350.1
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Table 9-1 shows the distribution of grants by agency. Grant outlays
for the Department of Health and Human Services are estimated to be
$208.3 billion in 2002, 59.5 percent of total grants, more than five
times as much as 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 working with State and local governments to make our
Federal system more efficient and effective and to improving the design,
administration, and financial management of Federal grant programs. One
way the Administration will do this is by expanding a government-wide
effort to use electronic processing in the administration of grant
programs.
This budget reflects 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 common goals and the progress made toward
meeting them. The Administration's efforts to improve the grant
administration process will include efforts to consolidate grants that
support programs with similar missions to create one flexible grant, and
ex
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pand transfer authorities for public health grants to remove barriers to
target resources.
In addition, this budget proposes several initiatives to help all
children read by the third grade; improve the services provided to
Indian children to address their unique educational and cultural needs;
assist low income working parents obtain quality after school childcare
with a strong educational component; establish positive incentives for
private landowners and local communities to preserve land and protect
imperiled species; aid counties along the Southwest Border with costs
associated with federally-referred drug cases; and expand transportation
and employment options for people with disabilities.
Highlights of grants to State and local governments follow. For
additional information on grants, see the detailed Table 9-3 in this
Chapter, A Blueprint for New Beginnings (February 28, 2001), or Section
III of the Budget volume.
Education
The budget requests $29.8 billion in 2002 program level for the
Department of Education for grants to States and local governments for
education, an increase of $3.3 billion above the 2001 amount of $26.5
billion. These program levels do not equate with 2001 and 2002 budget
authority, which are distorted by advance appropriations. The budget
proposes to reverse the misleading budget practice of using advance
appropriations simply to avoid spending limitations. The education
proposals in this budget will help States improve accountability for
school and student performance, enhance teacher quality, increase
flexibility, and support innovative programs.
The President's plan would grant States and school districts
unprecedented freedom from rules and regulations--in exchange for
accountability for results. States will establish accountability systems
built on high standards, annual tests, measurable goals, rewards for
success, and sanctions for failure. They will be required to test
students every year in grades 3-8 in math and reading so that parents,
teachers, and communities will know if their schools and students are
meeting State academic standards. The budget provides $320 million to
support the costs of developing new assessments. Once accountability
systems are in place, a new Federal fund will reward States and schools
that improve student achievement.
The budget requests $9.1 billion for Title I Grants to Local
Educational Agencies (LEAs) to help improve achievement among students
most at-risk of not reaching State academic standards. The Title I
program enables high-poverty schools to provide extra educational
assistance to their students so they can catch up with their peers. The
President's plan would require States to set measurable performance
targets to ensure that all groups of disadvantaged students improve, and
would hold schools accountable for meeting those goals. Schools that
fail to meet performance targets will receive help to turn themselves
around. The Administration seeks $400 million for 2002 within Title I
Grants to LEAs for low-performing schools, a $175 million or 78 percent
increase over 2001. States and districts will use these funds to provide
technical assistance and intensive interventions to improve achievement
in schools that are failing to make sufficient academic gains. Students
in schools that are consistently low-performing will have the option of
transferring to a better public school, or of using their share of
Federal Title I funds to seek supplemental educational services or
private school alternatives. This combination of accountability for
improved achievement among all groups of students, extra help for
struggling schools, and the unacceptability of chronic failure, provides
powerful incentives for all Title I schools to use their funds on
effective, proven practices in order to achieve results.
The budget builds a foundation for success by investing $900 million
for 2002 in the Reading First initiative to help all children read by
third grade. This new program will provide funds to States that
establish comprehensive reading programs in kindergarten through second
grade. States would be required to implement scientifically-proven
reading programs, train K-2 teachers in proven teaching practices,
implement effective reading interventions for students who are falling
behind, and use a reading diagnostic test in K-2 to identify students
early who have reading difficulties. Ensuring that children receive
effective reading instruction means that more children will get the help
they need before they fall too far behind, and will result in fewer
referrals to special education in later years. The budget also includes
$75 million for the Early Reading First initiative that helps implement
research-based reading practices in existing pre-school and Head Start
programs that feed into participating elementary schools. This program
will help ensure that children enter school ready to learn to read.
The budget proposes $2.6 billion in 2002, an increase of $0.4 billion
above 2001, to prepare, train, and recruit a high-quality teaching
force. States would have the flexibility to invest these funds to
address their most pressing quality improvement needs, whether it be to
alleviate shortages, enhance skills, or reform the certification
process. The President's plan combines funding from the largest Federal
teacher programs, including the Class Size Reduction program and
Eisenhower Professional Development programs into a streamlined,
performance-based grant to States and school districts.
The Administration supports a streamlined educational technology fund
that consolidates eight overlapping programs into one flexible $817
million fund for 2002. The President believes that technology must be
used to improve learning and that Federal funding for educational
technology must focus on results. This performance-based formula grant
will provide States greater discretion to make educational technology an
effective learning tool, and ensure that more technology funds reach the
classroom.
In addition to these reforms, the Administration is seeking
administrative improvements in the E-rate pro
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gram to ensure that this program provides greater flexibility to schools
and libraries in how they use their E-rate discounts, while reducing the
administrative burden they have faced in applying for educational
technology funds. The E-rate program, or Education Rate, is administered
by the Federal Communications Commission and provides discounts for
schools and libraries to purchase high-speed Internet access, internal
wiring, and telecommunications services. The Administration also
proposes $80 million in matching grants, through the Department of
Housing and Urban Development's Community Development Block Grant, to
support Community Technology Centers in high poverty areas.
A variety of other innovative programs to improve the educational
development of the Nation's students is proposed, or expanded from
previous funding levels.
The budget provides $200 million for an expanded Math and
Science Partnership program, administered by the National
Science Foundation in coordination with the Department of
Education, in order for States to join with institutions of
higher education to strengthen K-12 math and science
instruction and curriculum.
The Administration proposes to consolidate Bilingual
Education, Foreign Language Assistance, and Immigrant
Education funds into a $460 million formula-driven grant to
provide school districts with added flexibility in exchange
for more effective transitioning of Limited-English proficient
(LEP) students into English fluency and improving their
overall achievement levels. Funds will be distributed to
States based on their shares of LEP and immigrant students.
The Administration requests $116 million to support formula
grants to local educational agencies and Bureau of Indian
Education (BIA)-operated schools to implement programs that
address the unique educational and cultural needs of Indian
children. This level of funding will also fund the second
cohort of Native American teachers through the American Indian
Teacher Corps Initiative and continue funding for the American
Indian Administrator Corps.
The most direct form of accountability is a parent's
ability to choose the school his or her child will attend. The
Administration is committed to expanding the educational
choices that parents and students have. Under the new Choice
and Innovation fund, the Administration proposes to
consolidate ten programs to create a $471 million fund that
provides States with the flexibility to pursue a range of
effective education reform strategies and to address areas of
State and local need.
The President's plan for improving school safety and drug-
use prevention emphasizes research-based practices, includes
tougher enforcement of existing gun laws, grants teachers
control over their classrooms, improves cooperation between
school districts and law enforcement, and stresses
accountability for results. Under the $644 million Safe and
Drug Free Schools and Communities program, districts will be
held accountable for the effectiveness of their crime
prevention and drug outreach activities, and students trapped
in persistently dangerous schools will have the option to
transfer to a safer alternative.
The Administration request includes $846 million for a more
flexible after-school program that allows States and school
districts to award Federal funds to private and faith-based
entities, thereby empowering local communities to provide a
wider array of choices for students and parents. Expanding
access to high-quality before- and after-school programs is a
key strategy in providing students safe and supervised
environments and extending learning time to improve student
achievement. States would conduct grant competitions to
support before and after-school programs that are proven to be
effective and advance statewide academic achievement goals.
This program will be supplemented by a new $400 million
initiative in the Department of Health and Human Services for
After School Certificates within the Child Care and
Development Block Grant to help low income working parents
obtain quality after school childcare with a strong
educational component.
The Administration requests $8.1 billion for 2002, $1.0
billion more than 2001, for three special education programs
that serve more than six million children with disabilities
from birth to age 21. This increased funding will further help
States and local school districts meet their obligations under
the Individuals with Disabilities Education Act.
The budget proposes $1.1 billion for the Impact Aid
program, $137 million more than the 2001 appropriation. The
request provides a significant increase for the Impact Aid
construction program to improve the quality of public school
buildings and eliminate the backlog of repairs and
construction for schools on or near military facilities and
those serving children from Native American lands.
Training and Employment
The budget reflects the Administration's continued support to reform
the Nation's workforce development system and provide job training
opportunities to help workers succeed in the economy of the 21st
Century.
The Workforce Investment Act (WIA) of 1998 took full effect on July
1, 2000, as the Job Training Partnership Act was repealed and all States
began to fully implement the WIA requirements. The WIA calls for a
customer-driven job training system that: (1) streamlines services
through One-Stop Career Centers; (2) empowers individuals with the
information and resources they need to choose the training that is right
for them; (3) provides universal access to a core set of employ
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ment services such as job search assistance; (4) increases
accountability; (5) ensures a strong role for the private sector and the
local boards who develop and oversee programs; (6) facilitate State and
local flexibility; and (7) improve the quality of youth job training
services. The budget proposes $5.1 billion for these activities, which
does not equate with 2002 budget authority, which is distorted by
advance appropriations. The budget proposes to reverse the misleading
budget practice of using advance appropriations simply to avoid spending
limitations.
In order to enhance the employment prospects of individuals with
disabilities, the budget includes $20 million for competitive grants to
partnerships or consortia to provide new services and information for
individuals with disabilities who want to return to work. These
partnerships would work with the One-Stop system to augment its
capabilities to provide timely and accurate information that people with
disabilities need to get jobs and learn about the benefits available to
them when they return to work. In addition, the partnerships would
improve local service delivery by coordinating the State and local
agencies and disability organizations that help individuals with
disabilities prepare to enter or reenter the workforce.
Social Services
The Head Start program gives low-income children a comprehensive
approach to child development, stressing language and cognitive
development, health, nutrition, and social competency. Head Start is
administered by the Administration for Children and Families (ACF). The
Administration requests $6.3 billion for Head Start, a $125 million
increase over the 2001 level. In 2002, Head Start will serve
approximately 916,000 children. Within the overall total of children
served, approximately 55,000 children under age three will participate
in the Early Head Start component. The Administration proposes to reform
Head Start and return it to its original purpose--education. Head Start
programs will be required to adopt a proven core curriculum that makes
school readiness--pre-reading and numeracy--its top priority. The budget
includes an Early Reading First program within the Department of
Education for research-based reading programs in existing pre-school
programs, including Head Start programs. Planning is also underway to
move Head Start to the Department of Education to reinforce the emphasis
on school readiness.
This budget requests $1.7 billion in budget authority for the Social
Services Block Grant (SSBG). This program provides flexible funds to
States for social services for low-income individuals and families.
Income Support
Food and nutrition assistance.--This budget requests $9.9 billion in
budget authority for grants for the National School Lunch and School
Breakfast Programs, which provide free or low-cost nutritious meals to
children in participating schools. In 2002, the programs will serve an
estimated 28.0 million lunches and 8.4 million breakfasts daily. By
2005, the program aims to reduce the average percent of calories from
saturated fat in school lunches to 10 percent, down from 12 percent in
1998-1999. The Special Supplemental Nutrition Program for Women,
Infants, and Children (WIC) provides vouchers for nutritious
supplemental food packages, nutrition education and counseling, and
health and immunization referrals to low-income women, infants, and
children. The program reached an average of nearly 7.2 million people
each month in 2000. Participation in 2001 is projected to exceed 7.2
million women, infants, and children monthly, and the budget proposes
$4.1 billion, an increase of $94 million, to serve 7.25 million people
monthly in 2002.
Other income security.--The Child Care and Development Fund provides
grants to States for the purposes of providing low-income families with
financial assistance for child care, improving the quality and
availability of child care, and establishing, expanding, or conducting
early childhood development programs and before- and after-school
programs. In 2000, Federal child care funding provided child care
services for approximately 1.8 million children from low-income working
families or whose parents are moving from welfare to work. The budget
proposes a new $400 million after school certificate program within the
Child Care and Development Block Grant, raising the total request to
$2.2 billion in budget authority. The new program would provide grants
to States to assist up to 500,000 parents in obtaining after-school
child care with a high-quality education focus.
Health
This budget proposes $164.0 billion in outlays for 2002 grants to
State and local governments for health, $22.2 billion more than for
2001.
Immediate Helping Hand (IHH).--The Immediate Helping Hand initiative
provides critical assistance to our Nation's most vulnerable senior
citizens for the cost of their prescription drugs. This budget provides
$46.0 billion for 2001-2005 to States to help low-income Medicare
beneficiaries pay for their prescriptions. This proposal builds on
coverage that is already in place in more than half the States and would
provide benefits to 9.5 million vulnerable Medicare beneficiaries who
currently do not have any other prescription drug coverage. The plan is
unique because needy seniors will be able to get help with their
prescription drug costs this year.
Medicaid.--Medicaid is the largest grant program, with outlays
projected to be $142.4 billion in 2002, including the changes proposed
in this budget. This Federal-State health care program served about 33.4
million low-income Americans in 2000. The Federal Government spent
$117.9 billion, 57 percent of the total, on the program in 2000 while
States spent $88.9 billion, or 43 percent. Medicaid covers a fourth of
the Nation's
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children and is the largest single purchaser of maternity care as well
as of nursing home services and other long-term care services. The
program covers almost two-thirds of nursing home residents. The elderly
and disabled made up a third of Medicaid enrollees in 2000, but
accounted for approximately two-thirds of spending on benefits. Medicaid
serves at least half of all adults living with AIDS (and up to 90
percent of children with AIDS), and is the largest single payer of
direct medical services to adults living with AIDS. Medicaid pays for
over one-third of the Nation's long-term care services. Medicaid spends
more on institutional care today than it does for home and community-
based care, but the mix of payments is expected to be almost equal in 10
years.
Current restrictions and requirements in the Medicaid program may be
inhibiting the ability of States to operate the program efficiently. In
addition to taking steps to further address the Medicaid ``upper payment
limit'' loophole, the Administration plans to consult with the States on
the development of ideas to increase State flexibility, control Medicaid
costs, and ensure the fiscally prudent management of the Medicaid
program.
State Children's Health Insurance Program.--The State Children's
Health Insurance Program (S-CHIP) was established in 1997 in the
Balanced Budget Act to provide $24 billion over five years for States to
expand health insurance coverage to low-income, uninsured children. S-
CHIP provides States with broad flexibility in program design while
protecting beneficiaries through basic Federal standards. In 2000, 3.3
million children were enrolled in S-CHIP, which is a 70 percent increase
over 1999 enrollment.
Other health.--This budget requests Federal spending for certain
public health programs that assist State and local governments in
increasing access to health care by increasing the number of community
health center sites and addressing heart disease, diabetes, and
childhood obesity. The budget includes a Community and Migrant Health
Center Initiative to increase access to health care by increasing the
number of community health center sites by 1,200 over five years. In
2002, the number of health center sites will increase by almost 100. The
Administration proposes $1.3 billion in 2002 for this effort, an
increase of $124 million over 2001. The Administration also proposes the
Healthy Communities Innovation Fund Initiative, which supports grants
that will make available approximately $400 million within existing
grant activities to target innovative solutions in areas of health risks
such as heart disease, adult and childhood Type II diabetes, and
childhood obesity.
Natural Resources and Environment
The Administration requests $900 million from the Land and Water
Conservation Fund (LWCF) to acquire and conserve lands in national
parks, forests, refuges, and public lands, and provide grants to States
for broad conservation and outdoor recreation purposes. The National
Park Service (NPS) requests $450 million in budget authority for 2002
for LWCF matching grants to States in support of State and local
conservation and outdoor recreation efforts. In 2002, two new programs
are proposed that would establish positive incentives for private
landowners and local communities to protect imperiled species and
restore habitat: $50 million in matching grants to help States establish
Landowner Incentive Programs to help private landowners protect
imperiled species, and $10 million to establish a Private Stewardship
Grant Program to provide funding for private conservation initiatives.
The budget assists State and local governments to add 400 miles of
recreational trails, 850 miles of recreational river corridors, and
169,000 acres of recreational parkland, through the LWCF State grants
and NPS partnerships. In addition, the States and Tribes would receive
$1.1 billion in grants in 2002, the highest level ever, to administer
delegated programs and other responsibilities pursuant to Environmental
Protection Agency (EPA) statutes. Included in this total is $25 million
in new funding for State enforcement programs, reflecting a shift in
enforcement responsibilities in delegated States from Federal
enforcement to expanded State enforcement. The total also includes $25
million in grant funding to help States better integrate their
environmental information systems.
Funding is provided for EPA State Wastewater Grants to fund the Clean
Water State Revolving Funds at $850 million and the newly authorized
Sewer Overflow Control Grant program at $450 million. The EPA Drinking
Water State Revolving Fund is funded at $823 million.
Administration of Justice
The Administration requests $4.3 billion in budget authority for 2002
to help State and local governments fight crime, including $567 million
to assist crime victims and $154 million in Department of Justice
initiatives to help State and local governments protect young people
from gun-related violence. As part of the U.S. Attorney's Project
Sentry, $20 million in grants will be available to help establish
partnerships for reducing youth gun violence. The budget also proposes
$50 million for grants to encourage States to get tough on gun criminals
with increased arrests, prosecutions, and public awareness campaigns. In
addition, $75 million will be allocated to Project ChildSafe, a new
Federal, State and local partnership to ensure that child safety locks
are made available for every handgun in America. As part of the
Administration's broader strategy for reducing the supply and demand for
drugs, $50 million is proposed for a new grant program within the Office
of Justice Programs to aid counties along the Southwest Border with the
costs of detaining and prosecuting drug cases referred to them by U.S.
Attorneys. To combat the significant problem of violence against women,
the budget proposes $391 million, an increase of $103 mil
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lion over 2001, to fund both existing and new programs authorized in the
Violence Against Women Act of 2000.
This budget proposes to reduce a number of Department of Justice
State and local assistance programs from their 2001 level, mainly those
that have already served their primary purpose or are less essential to
core Federal law enforcement objectives. These reductions include a net
reduction of $182 million in the Community Oriented Policing Services
program, which has well exceeded its initial goal of funding 100,000 new
officers; $451 million from State Prison Grants, which have accomplished
their goal of encouraging State ``truth in sentencing'' policies; $299
million from the State Criminal Alien Assistance Program, which
contributes little to reducing violent crime; $122 million from Local
Law Enforcement Block Grants, which fund areas covered by other Justice
programs; and elimination of the $69 million Byrne discretionary grant
program, whose competitive procedures have been eroded by legislative
mandates.
Transportation
The Administration requests $45.0 billion in budgetary authority in
2002 for grants to State and local governments to assist with
transportation infrastructure and related programs, including highways,
transit, airports and other areas.
Highways and Transit.--The budget requests $31.6 billion in budgetary
resources in 2002 for the Federal-aid highways program to maintain and
improve surface transportation infrastructure. Within this program,
competitive matching grants are funded at $100 million and pilot
programs are funded at $45 million, to promote access to alternative
methods of transportation, a new initiative to expand transportation
options for people with disabilities.
In addition, the budget requests $212 million in budget authority for
highway traffic safety grants to increase seat belt use, decrease
alcohol related fatalities, and improve State safety data. The budget
includes $210 million for grants to States to enforce Federal and State
standards for commercial motor vehicle safety inspections, traffic
enforcement, and compliance reviews. This budget requests $6.6 billion
in budgetary resources for 2002 to assist State and local governments
with mass transit.
Airports.--The budget requests $3.3 billion in budgetary resources in
2002 for the Airport Improvement Program (AIP), which will enhance the
Nation's airport system through increasing safety and security, reducing
system delays and providing new capacity to meet anticipated demands.
Community and Regional Development
Community development.--Community Development Block Grants (CDBG)
provide funds for various community development activities directed
primarily at low-and moderate-income persons. This budget requests $4.7
billion in budget authority for 2002 in CDBG grants for improving
housing, public works and services, promoting economic development, and
acquiring or clearing land. The University Partnerships Program, a set-
aside within CDBG, provides grants to academic institutions including
Historically Black Colleges and Universities, Hispanic Serving
Institutions, and Tribal Colleges. The Indian CDBG, also a set- aside
within the CDBG program, focuses mainly on public infrastructure,
community facilities, and economic development on reservations.
The Department of Commerce's Economic Development Administration
(EDA) provides assistance to communities to help build capacity and
address long-term economic challenges through its nationwide program
delivery network. EDA's public works grants help build or expand public
facilities to stimulate industrial and commercial growth, such as
industrial parks, business incubators, access roads, water and sewer
lines, and port and terminal developments. EDA also assists communities
in addressing sudden and severe economic downturns and in adjusting to
downsizing and closure of defense facilities. The President's budget
requests $335 million of budget authority for EDA grants and targets 40
percent of EDA grants to areas of highest distress nationwide in 2002.
The budget also proposes $165 million in grant funding and tax
incentives for Empowerment Zones (EZs) to carry out 10-year, community-
wide strategic plans to revitalize designated areas.
Area and regional development.--The budget provides flexible funding
to meet the needs of rural areas through the Rural Community Advancement
Program (RCAP). RCAP provides grants, loans, and loan guarantees to
stimulate economic development, help build rural community facilities,
such as health clinics, day care centers as well as water and wastewater
systems. Under RCAP, States have increased flexibility within the three
funding streams for Water and Wastewater, Community Facilities, and
Business and Industry. USDA State Directors have the authority to
transfer up to 25 percent of the funding among any of these programs to
tailor RCAP assistance to the specific rural economic development needs
of individual States. The budget proposes $2.9 billion in loans and
grants for RCAP.
To fulfill the Federal government's commitments to the District of
Columbia under the Revitalization Act, the Administration's budget
provides $494 million for District courts and corrections, including
$201 million to house the District's sentenced felon population, $147
million for the Court Services and Offender Supervision Agency, and $146
million for the DC Courts. In addition, the budget provides $17 million
to continue the District's Tuition Assistance Grant Program.
Other Functions
Discussions of these and other Federal aid programs can be found in
the main budget volume in Section III, and elsewhere. As noted earlier,
a detailed listing
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of budget authority and outlays for all grants to State and local
governments is in Table 9-3 in this chapter.
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, 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
reflect 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,
training, employment, and social services; and transportation, with
combined estimated grant outlays of $325.4 billion or 93 percent of
total grant outlays in 2002.
The increase in total outlays for grants overall since 1990 has been
driven by increases in grants for health, which more than tripled from
$43.9 billion in 1990 to an estimated $164.0 billion in 2002. The income
security; education, training, employment, and social services; and
transportation functions also increased substantially, but at a slower
rate than the increase for health.
Section B of the Table shows the distribution of grants divided into
mandatory and discretionary spending.
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 and are usually not limited by the annual
appropriations process. Outlays for mandatory grant programs are
estimated to be $212.0 billion in 2002. The three largest mandatory
grant programs are Medicaid, with estimated outlays of $142.4 billion in
2002, temporary assistance for needy families, $17.3 billion in 2002,
and food stamp grants for State administration and child nutrition
programs, with combined outlays of $13.9 billion in 2002.
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 $138.1 billion in 2002.
Table 9-3 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 24 ``Budget System and
Concepts and Glossary'' in this volume.
Section C of Table 9-2 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 55.9 percent of the total
in 1990 to 62.2 percent of the total in 2000. While payments for
individuals will comprise 63.6 percent of grants in 2002, they are
estimated to increase to an estimated 66.0 percent of the total by 2006.
---------------------------------------------------------------------------
\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 $117.9 billion in 2000, increasing to an estimated
$142.4 billion in 2002. Temporary assistance for needy families, food
stamps, 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 for construction of the
Interstate Highway System. The relative share of these outlays has
declined, as pay
[[Page 202]]
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 2000 2001 2002 2003 2004 2005 2006
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
A. Distribution of grants by function:
Natural resources and environment........... 0.1 0.2 0.4 2.4 5.4 4.1 3.7 4.0 4.6 5.1 5.1 5.1 5.2 5.2 5.1
Agriculture................................. 0.2 0.5 0.6 0.4 0.6 2.4 1.3 0.8 0.7 0.8 0.8 0.8 0.8 0.8 0.8
Transportation.............................. 3.0 4.1 4.6 5.9 13.0 17.0 19.2 25.8 32.2 35.3 38.3 40.2 41.8 43.6 44.9
Community and regional development.......... 0.1 0.6 1.8 2.8 6.5 5.2 5.0 7.2 8.7 8.7 9.0 9.0 8.7 8.6 8.3
Education, training, employment, and social 0.5 1.1 6.4 12.1 21.9 17.8 23.4 34.1 42.1 46.8 51.8 56.7 58.1 59.6 61.2
services............................
Health...................................... 0.2 0.6 3.8 8.8 15.8 24.5 43.9 93.6 124.8 141.8 164.0 177.0 192.6 196.9 208.9
Income security............................. 2.6 3.5 5.8 9.4 18.5 27.2 35.2 55.1 63.2 69.6 71.3 73.5 75.3 77.0 78.6
Justice..................................... --- --- * 0.7 0.5 0.1 0.6 1.2 5.1 4.5 6.0 7.5 5.4 4.5 4.5
General government.......................... 0.2 0.2 0.5 7.1 8.6 6.8 2.3 2.3 2.3 2.7 2.6 2.6 3.8 2.6 2.7
Other....................................... * 0.1 0.1 0.2 0.7 0.8 0.8 0.8 0.9 0.9 1.1 1.2 1.2 1.2 1.2
------------------------------------------------------------------------------------------------------------------------------------------------
Total..................................... 7.0 10.9 24.1 49.8 91.4 105.9 135.3 225.0 284.7 316.3 350.1 373.6 392.9 400.0 416.2
B. Distribution of Grants by BEA Category:
Discretionary............................... NA 2.9 10.2 21.0 53.3 55.5 63.3 94.0 116.7 127.1 138.1 146.5 147.4 150.1 153.1
Mandatory................................... NA 8.0 13.9 28.8 38.1 50.4 72.0 131.0 168.0 189.2 212.0 227.1 245.5 249.8 263.1
------------------------------------------------------------------------------------------------------------------------------------------------
Total..................................... 7.0 10.9 24.1 49.8 91.4 105.9 135.3 225.0 284.7 316.3 350.1 373.6 392.9 400.0 416.2
C. Composition:
Current dollars:............................
Payments for individuals \1\.............. 2.5 3.7 8.7 16.8 32.6 49.3 75.7 141.2 177.1 199.4 222.6 237.9 255.3 261.2 274.6
Physical capital \1\...................... 3.3 5.0 7.1 10.9 22.6 24.9 27.2 39.6 48.7 52.9 56.3 57.5 59.0 60.7 62.1
Other grants.............................. 1.2 2.2 8.3 22.2 36.2 31.6 32.5 44.2 58.9 63.9 71.1 78.3 78.7 78.1 79.5
------------------------------------------------------------------------------------------------------------------------------------------------
Total................................... 7.0 10.9 24.1 49.8 91.4 105.9 135.3 225.0 284.7 316.3 350.1 373.6 392.9 400.0 416.2
Percentage of total grants:
Payments for individuals \1\.............. 35.3% 34.1% 36.2% 33.6% 35.7% 46.6% 55.9% 62.8% 62.2% 63.1% 63.6% 63.7% 65.0% 65.3% 66.0%
Physical capital \1\...................... 47.3% 45.7% 29.3% 21.9% 24.7% 23.5% 20.1% 17.6% 17.1% 16.7% 16.1% 15.4% 15.0% 15.2% 14.9%
Other grants.............................. 17.4% 20.2% 34.5% 44.5% 39.6% 29.9% 24.0% 19.7% 20.7% 20.2% 20.3% 20.9% 20.0% 19.5% 19.1%
------------------------------------------------------------------------------------------------------------------------------------------------
Total.................................... 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Constant (FY 1996) dollars:
Payments for individuals \1\............... 11.3 15.9 31.7 45.4 60.2 69.7 88.9 144.1 165.0 180.5 196.6 204.7 214.3 213.9 219.5
Physical capital \1\...................... 15.8 22.4 25.2 23.9 36.1 31.8 30.3 40.4 45.5 47.9 49.5 49.2 49.0 49.1 48.8
Other grants.............................. 8.3 12.8 36.1 67.2 72.2 45.5 38.7 45.3 52.1 54.8 59.3 63.4 62.0 59.8 59.2
------------------------------------------------------------------------------------------------------------------------------------------------
Total................................... 35.3 51.2 92.9 136.5 168.5 147.0 157.9 229.8 262.5 283.2 305.4 317.3 325.4 322.8 327.4
D. Total grants as a percent of:
Federal outlays:
Total..................................... 7.6% 9.2% 12.3% 15.0% 15.5% 11.2% 10.8% 14.8% 15.9% 17.0% 17.9% 18.5% 18.9% 18.4% 18.7%
Domestic programs \2\..................... 18.0% 18.3% 23.2% 21.7% 22.2% 18.2% 17.1% 21.6% 22.0% 22.9% 23.6% 24.0% 24.1% 23.3% 23.3%
State and local expenditures................ 19.2% 20.1% 24.1% 27.1% 30.4% 24.2% 21.0% 25.1% 24.7% N/A N/A N/A N/A N/A N/A
Gross domestic product...................... 1.4% 1.6% 2.4% 3.2% 3.3% 2.6% 2.4% 3.1% 2.9% 3.1% 3.2% 3.3% 3.3% 3.1% 3.1%
E. As a share of total State and local gross
investment:
Federal capital grants...................... 24.6% 25.5% 25.4% 25.9% 35.4% 30.2% 21.9% 25.8% 21.4% N/A N/A N/A N/A N/A N/A
State and local own-source financing......... 75.4% 74.5% 74.6% 74.1% 64.6% 69.8% 78.1% 74.2% 78.6% N/A N/A N/A N/A N/A N/A
------------------------------------------------------------------------------------------------------------------------------------------------
Total..................................... 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% N/A N/A N/A N/A N/A N/A
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
N/A = Not available.
* 50 million 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.
ments for individuals have grown. In 2002, grants for physical capital
are estimated to be 16.1 percent of total grants.
The other grants are primarily for education, training, employment,
and social services. These grants increased to 44.5 percent of total
grants by 1975, and are projected to be 20.3 percent of total grants in
2002.
Section C of Table 9-2 also shows these three categories in constant
dollars. In constant 1996 dollars, total grants increase from $157.9
billion in 1990 to an estimated $305.4 billion in 2002, an average
increase of 5.7 percent per year. During this same period, grants for
payments to individuals are estimated to increase an average of 6.8
percent per year; grants
[[Page 203]]
for physical capital an average of 4.2 percent per year, and other
grants an average of 3.6 percent per year.
The real growth in grants during the 1990s is in contrast to the
1980s. During the period between 1980 and 1990, outlays for total grants
in constant 1996 dollars decreased from $168.5 billion in 1980 to $157.9
billion in 1990.
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 10.8
percent in 1990 to an estimated 17.9 percent in 2002. Grants as a
percentage of domestic spending are estimated to be 23.6 percent in
2002.
As a percentage of total State and local expenditures, grants have
increased from 21.0 percent in 1990 to 24.7 percent in 2000.
Section E shows the relative contribution of physical capital grants
in assisting States and localities with gross investment. After a slight
increase to 25.8 percent in 1995, Federal capital grants have declined
to be 21.4 percent of State and local gross investment in 2000.
OTHER INFORMATION ON FEDERAL AID TO STATE AND LOCAL GOVERNMENTS
Additional information regarding aid to State and local governments
can be found elsewhere in this budget and in other documents.
Major public physical capital investment programs providing Federal
grants to State and local governments are identified in Chapter 6,
``Federal Investment Spending and Capital Budgeting.''
Data for summary and detailed grants to State and local governments
can be found in many sections of a separate document entitled Historical
Tables. Section 12 of that document is devoted exclusively to grants to
State and local governments. Additional information on grants can be
found in Section 6 (Composition of Federal Government Outlays); Section
9 (Federal Government Outlays for Investment: Major Physical Capital,
Research and Development, and Education and Training); Section 11
(Federal Government Payments for Individuals); and Section 15 (Total
(Federal and State and Local) Government Finances).
In addition to these sources, a number of other sources of
information are available that use slightly different concepts of
grants, provide State-by-State information, provide information on how
to apply for Federal aid, or display information about audits.
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 16, ``National Income and Product
Accounts.''
The Budget Information for States (BIS) report 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 Aid to States, a report prepared by the Bureau of the Census,
shows Federal spending by State for grants 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 prepared 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.
The Federal Audit Clearinghouse maintains an on-line database (http:/
/harvester.census.gov/sac) that provides access to summary information
about audits conducted under OMB Circular A-133, ``Audits to States,
Local Governments, and Non-Profit Organizations.'' Information is
available for each audited entity, including the amount of Federal money
expended by program and whether there were audit findings.
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 204]]
Table 9-3. FEDERAL GRANTS TO STATE AND LOCAL GOVERNMENTS--BUDGET AUTHORITY AND OUTLAYS
(in millions of dollars)
----------------------------------------------------------------------------------------------------------------
Budget Authority Outlays
Function, Category, Agency and ---------------------------------------------------------------------------------
Program 2000 2001 2002 2000 2001 2002
Actual Estimate Estimate Actual Estimate Estimate
----------------------------------------------------------------------------------------------------------------
NATIONAL DEFENSE
Discretionary:
Department of Defense--
Military:
Research, Development,
Test, and Evaluation:
Research, development, 2 2 2 2 2 2
test, and evaluation,
Army...................
---------------------------------------------------------------------------------
Total, discretionary.... 2 2 2 2 2 2
---------------------------------------------------------------------------------
Total, national 2 2 2 2 2 2
defense..............
=================================================================================
ENERGY
Discretionary:
Department of Energy:
Energy Programs:
Energy conservation..... 169 190 311 124 166 313
---------------------------------------------------------------------------------
Total, discretionary.... 169 190 311 124 166 313
=================================================================================
Mandatory:
Tennessee Valley Authority:
Tennessee Valley Authority 309 313 328 309 313 328
fund.....................
---------------------------------------------------------------------------------
Total, mandatory........ 309 313 328 309 313 328
---------------------------------------------------------------------------------
Total, energy......... 478 503 639 433 479 641
=================================================================================
NATURAL RESOURCES AND
ENVIRONMENT
Discretionary:
Department of Agriculture:
Natural Resources
Conservation Service:
Resource conservation ........... ............ ............ 1 1 ............
and development........
Watershed and flood 44 52 28 66 62 79
prevention operations..
Forest Service:
State and private 100 203 121 98 178 143
forestry...............
Management of national ........... 6 5 1 6 5
forest lands for
subsistence uses.......
Department of Commerce:
National Oceanic and
Atmospheric
Administration:
Operations, research, 120 135 5 91 101 3
and facilities.........
Pacific coastal salmon 58 110 110 1 167 110
recovery...............
Department of the Interior:
Office of Surface Mining
Reclamation and
Enforcement:
Regulation and 61 51 51 54 51 57
technology.............
Abandoned mine 181 196 154 152 153 120
reclamation fund.......
Bureau of Reclamation:
Bureau of Reclamation 12 12 7 10 17 7
loan subsidy...........
United States Geological
Survey:
Surveys, investigations ........... 3 ............ ........... 3 ............
and research...........
United States Fish and
Wildlife Service:
Commercial salmon 5 ............ ............ ........... 5 ............
fishery capacity
reduction..............
State wildlife grants... ........... 50 ............ ........... 8 10
Land acquisition........ ........... ............ 60 ........... ............ 24
Cooperative endangered 23 105 55 13 27 63
species conservation
fund...................
Wildlife conservation 1 1 ............ 1 1 ............
and appreciation fund..
Miscellaneous permanent 2 3 3 2 2 3
appropriations.........
National Park Service:
Urban park and ........... 29 ............ 1 3 6
recreation fund........
National recreation and 2 ............ ............ 1 1 ............
preservation...........
Land acquisition and 43 90 450 7 51 22
State assistance.......
Historic preservation 75 94 37 52 106 74
fund...................
Environmental Protection
Agency:
State and tribal 3,446 3,621 3,289 3,192 3,393 3,533
assistance grants........
Hazardous substance 287 171 171 240 141 170
superfund................
Leaking underground 59 64 62 58 61 64
storage tank trust fund..
---------------------------------------------------------------------------------
Total, discretionary.... 4,519 4,996 4,608 4,041 4,538 4,493
=================================================================================
[[Page 205]]
Mandatory:
Department of the Interior:
Bureau of Land Management:
Miscellaneous permanent 7 12 13 2 12 13
payment accounts.......
Minerals Management
Service:
National forests fund, 3 5 5 3 5 5
Payment to States......
Leases of lands acquired 1 2 2 1 2 2
for flood control,
navigation, and allied
purposes...............
United States Fish and
Wildlife Service:
Federal aid in wildlife 226 287 240 232 216 233
restoration............
Sport fish restoration.. 303 301 352 285 295 311
Departmental Management:
Everglades watershed ........... ............ ............ 25 17 ............
protection.............
Everglades restoration 1 2 ............ 1 2 2
account................
Department of the Treasury:
Financial Management
Service:
Payment to terrestrial 5 5 5 5 5 5
wildlife habitat
restoration trust fund.
---------------------------------------------------------------------------------
Total, mandatory........ 546 614 617 554 554 571
---------------------------------------------------------------------------------
Total, natural 5,065 5,610 5,225 4,595 5,092 5,064
resources and
environment..........
=================================================================================
AGRICULTURE
Discretionary:
Department of Agriculture:
Departmental
Administration:
Outreach for socially 3 3 3 4 3 3
disadvantaged farmers..
Cooperative State
Research, Education, and
Extension Service:
Extension activities.... 424 433 413 437 421 460
Research and education 238 268 240 224 265 240
activities.............
Integrated activities... 14 15 15 ........... 6 11
Agricultural Marketing
Service:
Payments to States and 1 1 1 1 1 1
possessions............
Farm Service Agency:
State mediation grants.. 3 3 3 3 2 2
---------------------------------------------------------------------------------
Total, discretionary.... 683 723 675 669 698 717
=================================================================================
Mandatory:
Department of Agriculture:
Office of the Secretary:
Fund for rural America.. 20 10 15 11 8 11
Farm Service Agency:
Commodity Credit 44 136 109 44 136 109
Corporation fund.......
---------------------------------------------------------------------------------
Total, mandatory........ 64 146 124 55 144 120
---------------------------------------------------------------------------------
Total, agriculture.... 747 869 799 724 842 837
=================================================================================
COMMERCE AND HOUSING CREDIT
Mandatory:
Department of Commerce:
National Oceanic and
Atmospheric
Administration:
Promote and develop 1 5 5 3 6 5
fishery products and
research pertaining to
American fisheries.....
---------------------------------------------------------------------------------
Total, mandatory........ 1 5 5 3 6 5
---------------------------------------------------------------------------------
Total, commerce and 1 5 5 3 6 5
housing credit.......
=================================================================================
TRANSPORTATION
Discretionary:
Department of
Transportation:
Coast Guard:
Boat safety............. ........... ............ ............ 9 1 ............
Federal Aviation
Administration:
Grants-in-aid for 2,799 2,623 2,969 1,578 2,173 2,764
airports (Airport and
airway trust fund) \1\.
Research, engineering 46 48 50 46 48 50
and development
(Airport and airway
trust fund)............
[[Page 206]]
Federal Highway
Administration:
State infrastructure ........... ............ ............ 19 8 8
banks..................
Appalachian development ........... ............ ............ 101 79 43
highway system.........
Highway-related safety ........... ............ ............ 1 1 ............
grants.................
Appalachian development ........... 254 ............ ........... 69 104
highway system (Highway
trust fund)............
Federal-aid highways \1\ 28,860 33,158 34,098 23,494 25,027 27,194
Miscellaneous ........... 605 ............ 133 254 320
appropriations.........
Miscellaneous highway ........... 1,182 ............ 42 354 510
trust funds............
Federal Motor Carrier
Safety Administration:
National motor carrier 105 177 205 99 134 185
safety program \1\.....
Motor carrier safety \1\ ........... ............ 5 ........... ............ 4
National Highway Traffic
Safety Administration:
Highway traffic safety 197 202 212 181 210 217
grants \1\.............
Federal Railroad
Administration:
Emergency railroad ........... ............ ............ 3 4 ............
rehabilitation and
repair.................
Local rail freight ........... ............ ............ 1 ............ ............
assistance.............
Alaska railroad 15 30 ............ 11 52 18
rehabilitation.........
Railroad research and 2 3 3 1 2 2
development............
Conrail commuter ........... ............ ............ 3 3 ............
transition assistance..
Federal Transit
Administration:
Research, training, and ........... ............ ............ ........... 2 ............
human resources........
Job access and reverse 75 100 125 17 45 65
commute grants \1\.....
Interstate transfer ........... ............ ............ 1 5 2
grants-transit.........
Washington Metropolitan ........... ............ ............ 109 107 71
Area Transit Authority.
Formula grants \1\...... 4,641 3,287 3,592 2,792 3,216 3,191
Capital investment 2,492 2,694 2,841 1,071 961 1,572
grants \1\.............
Transit planning and 138 90 90 72 98 114
research \1\...........
Discretionary grants ........... ............ ............ 1,200 983 614
(Highway trust fund,
mass transit account)..
Research and Special
Programs Administration:
Pipeline safety......... 15 21 18 13 17 17
---------------------------------------------------------------------------------
Total, discretionary \1\ 39,385 44,474 44,208 30,997 33,853 37,065
=================================================================================
Mandatory:
Department of
Transportation:
Federal Highway
Administration:
Federal-aid highways.... 739 758 739 1,217 1,399 1,248
Research and Special
Programs Administration:
Emergency preparedness 24 13 13 8 12 13
grants.................
---------------------------------------------------------------------------------
Total, mandatory \1\.... 763 771 752 1,225 1,411 1,261
---------------------------------------------------------------------------------
Total, transportation. 40,148 45,245 44,960 32,222 35,264 38,326
=================================================================================
COMMUNITY AND REGIONAL
DEVELOPMENT
Discretionary:
Department of Agriculture:
Rural Development:
Rural community 584 843 596 479 647 602
advancement program....
Rural Utilities Service:
Distance learning and 21 27 27 7 18 19
telemedicine program...
Rural Business--
Cooperative Service:
Rural cooperative 6 31 6 4 4 25
development grants.....
Forest Service:
Southeast Alaska 22 5 ............ 10 7 7
economic disaster fund.
Department of Commerce:
Economic Development
Administration:
Economic development 424 421 335 356 431 428
assistance programs....
Department of Housing and
Urban Development:
Public and Indian Housing
Programs:
Moving to work.......... 5 ............ ............ ........... 3 ............
Community Planning and
Development:
Community development 4,809 5,113 4,722 4,955 4,940 5,036
block grants...........
Urban development action ........... ............ ............ 10 10 10
grants.................
Community development 30 30 15 7 20 20
loan guarantees subsidy
National cities in 5 ............ ............ 5 ............ ............
schools community
development program....
[[Page 207]]
Brownfields 25 25 25 4 25 30
redevelopment..........
Urban empowerment zones. 55 185 150 7 49 92
Office of Lead Hazard
Control:
Lead hazard reduction... 80 100 110 95 95 95
Department of the Interior:
Bureau of Indian Affairs:
Operation of Indian 174 142 148 119 125 131
programs...............
Indian guaranteed loan 5 5 5 5 9 5
subsidy................
Federal Emergency Management
Agency:
Emergency management 174 267 255 142 219 254
planning and assistance..
Disaster relief........... 2,295 1,115 956 2,234 1,901 2,070
Disaster assistance for ........... ............ ............ 50 90 54
unmet needs..............
National flood mitigation 20 20 20 13 23 20
fund.....................
Appalachian Regional 59 70 59 125 108 100
Commission.................
Delta Regional Authority.... ........... 18 18 ........... 2 5
Denali Commission........... 20 30 30 38 13 39
---------------------------------------------------------------------------------
Total, discretionary.... 8,813 8,447 7,477 8,665 8,739 9,042
---------------------------------------------------------------------------------
Total, community and 8,813 8,447 7,477 8,665 8,739 9,042
regional development.
=================================================================================
EDUCATION, TRAINING,
EMPLOYMENT, AND SOCIAL
SERVICES
Discretionary:
Department of Commerce:
National
Telecommunications and
Information
Administration:
Public 13 31 31 12 24 26
telecommunications
facilities, planning
and construction.......
Information 6 22 5 8 15 20
infrastructure grants..
Department of Education:
Office of Elementary and
Secondary Education:
Reading excellence \2\.. 56 277 ............ 27 180 234
Indian education........ 75 113 113 64 82 105
Impact aid.............. 901 985 1,122 875 1,121 1,109
Chicago litigation ........... ............ ............ 2 2 ............
settlement.............
Education reform........ 964 611 ............ 965 1,234 674
Education for the 8,667 8,938 10,969 8,511 8,432 9,355
disadvantaged \2\......
School improvement 1,357 4,417 6,281 2,394 2,936 3,744
programs \2\...........
Office of Bilingual
Education and Minority
Languages Affairs:
Bilingual and immigrant 329 353 460 319 370 351
education..............
Office of Special
Education and
Rehabilitative Services:
Special education \2\... 2,036 5,816 8,147 4,696 5,535 6,652
Rehabilitation services 120 133 173 104 185 161
and disability research
American Printing House 10 12 12 9 15 12
for the Blind..........
Office of Vocational and
Adult Education:
Vocational and adult 851 1,778 1,771 1,448 1,669 1,731
education \2\..........
Office of Postsecondary
Education:
Higher education........ 281 376 307 152 347 354
Office of Student
Financial Assistance:
Student financial 40 55 55 24 49 55
assistance.............
Office of Educational
Research and Improvement:
Education research, 100 56 ............ 166 174 61
statistics, and
assessment.............
Department of Health and
Human Services:
Administration for
Children and Families:
Promoting safe and 3 3 3 3 3 3
stable families........
Children and families 5,004 7,607 7,832 5,843 6,325 7,480
services programs \2\..
Administration on Aging:
Aging services programs. 933 1,103 1,098 884 1,017 1,086
Department of the Interior:
Bureau of Indian Affairs:
Operation of Indian 51 78 101 50 71 100
programs...............
Department of Labor:
Employment and Training
Administration:
Training and employment 2,227 4,065 3,681 2,957 3,641 4,494
services \2\...........
Community service 97 97 97 99 108 97
employment for older
Americans..............
State unemployment 163 193 177 225 165 175
insurance and
employment service
operations.............
Unemployment trust fund. 962 982 982 961 957 982
Corporation for National and
Community Service:
Domestic volunteer service 71 73 77 70 72 75
programs, operating
expenses.................
[[Page 208]]
National and community 229 242 218 204 263 230
service programs,
operating expenses.......
Corporation for Public
Broadcasting:
Corporation for Public 190 224 230 190 206 217
Broadcasting.............
District of Columbia:
District of Columbia
General and Special
Payments:
Federal payment for 17 17 17 17 17 17
resident tuition
support................
National Endowment for the
Arts:
National Endowment for the 34 34 34 31 39 36
Arts: grants and
administration...........
Challenge America arts ........... 3 3 ........... 1 3
fund.....................
Institute of Museum and
Library Services:
Office of Museum Services: 6 8 5 6 6 11
grants and administration
Office of Library 151 175 152 152 155 203
Services: grants and
administration...........
---------------------------------------------------------------------------------
Total, discretionary \2\ 25,944 38,877 44,153 31,468 35,416 39,853
=================================================================================
Mandatory:
Department of Education:
Office of Elementary and
Secondary Education:
Reading excellence \2\.. ........... ............ 195 ........... ............ ............
Education for the ........... ............ 6,758 ........... ............ ............
disadvantaged \2\......
School improvement ........... ............ 1,765 ........... ............ ............
programs \2\...........
Office of Special
Education and
Rehabilitative Services:
Special education \2\... ........... ............ 5,072 ........... ............ ............
Rehabilitation services 2,339 2,400 2,481 2,463 2,196 2,455
and disability research
Office of Vocational and
Adult Education:
Vocational and adult ........... ............ 791 ........... ............ ............
education \2\..........
Department of Health and
Human Services:
Administration for
Children and Families:
Job opportunities and ........... ............ ............ 15 9 3
basic skills training
program................
Promoting safe and 289 300 495 239 271 316
stable families........
Social services block 1,775 1,725 1,700 1,827 1,906 1,809
grant..................
Children and families ........... ............ 1,400 ........... ............ ............
services programs \2\..
Payments to States for 5,697 6,401 6,682 5,453 6,055 6,549
foster care and
adoption assistance....
Department of Labor:
Employment and Training
Administration:
Training and employment ........... ............ 1,772 ........... ............ ............
services \2\...........
Welfare to work jobs.... -137 -50 ............ 527 850 690
Federal unemployment 132 132 132 133 141 136
benefits and allowances
---------------------------------------------------------------------------------
Total, mandatory \2\.... 10,095 10,908 29,243 10,657 11,428 11,958
---------------------------------------------------------------------------------
Total, education, 36,039 49,785 73,396 42,125 46,844 51,811
training, employment,
and social services..
=================================================================================
HEALTH
Discretionary:
Department of Agriculture:
Food Safety and Inspection
Service:
Salaries and expenses... 43 47 48 43 47 48
Department of Health and
Human Services:
Food and Drug
Administration:
Salaries and expenses... 1 1 1 1 1 1
Health Resources and
Services Administration:
Health resources and 2,028 2,215 2,344 2,028 2,215 2,344
services...............
Centers for Disease
Control and Prevention:
Disease control, 1,881 2,502 2,497 1,611 2,006 2,386
research, and training.
Substance Abuse and Mental
Health Services
Administration:
Substance abuse and 2,012 2,152 2,212 1,931 2,027 2,109
mental health services.
Department of Labor:
Occupational Safety and
Health Administration:
Salaries and expenses... 82 88 88 82 88 88
Mine Safety and Health
Administration:
Salaries and expenses... 6 8 8 6 8 8
---------------------------------------------------------------------------------
Total, discretionary.... 6,053 7,013 7,198 5,702 6,392 6,984
=================================================================================
[[Page 209]]
Mandatory:
Department of Health and
Human Services:
Health Care Financing
Administration:
Grants to States for 117,744 128,853 142,423 117,921 128,853 142,423
medicaid...............
State children's health 4,259 4,249 3,115 1,220 4,032 3,355
insurance fund.........
State grants and ........... 62 67 ........... 16 29
demonstrations.........
Immediate helping hand ........... 2,500 11,200 ........... 2,500 11,200
prescription drug plan.
---------------------------------------------------------------------------------
Total, mandatory........ 122,003 135,664 156,805 119,141 135,401 157,007
---------------------------------------------------------------------------------
Total, health......... 128,056 142,677 164,003 124,843 141,793 163,991
=================================================================================
INCOME SECURITY
Discretionary:
Department of Agriculture:
Food and Nutrition
Service:
Food donations programs. 141 151 151 137 150 150
Commodity assistance 133 140 135 132 138 135
program................
Special supplemental 4,032 4,044 4,137 3,950 4,085 4,129
nutrition program for
women, infants, and
children (WIC).........
Child nutrition programs 14 13 9 7 7 5
Department of Health and
Human Services:
Administration for
Children and Families:
Low income home energy 2,000 1,700 1,700 1,495 2,241 1,525
assistance.............
Refugee and entrant 377 324 324 280 326 324
assistance.............
Payments to States for 1,178 1,993 2,193 1,065 1,677 2,062
the child care and
development block grant
Department of Housing and
Urban Development:
Public and Indian Housing
Programs:
Public housing operating 3,138 3,235 3,385 2,836 3,217 3,336
fund...................
Drug elimination grants 310 309 ............ 288 317 313
for low-income housing.
Revitalization of 575 574 574 379 460 552
severely distressed
public housing (HOPE
VI)....................
Public housing capital 2,884 2,993 2,293 3,690 3,718 3,583
fund...................
Native American housing 620 649 649 643 707 669
block grant............
Housing certificate fund 3,671 8,099 11,283 8,803 9,092 9,722
\2\....................
Community Planning and
Development:
Homeless assistance 1,020 1,023 1,023 885 1,000 1,200
grants.................
Home investment 1,636 1,796 1,796 1,479 1,736 1,857
partnership program....
Youthbuild program...... ........... ............ ............ 1 1 ............
Housing opportunities 232 257 277 215 216 219
for persons with AIDS..
Rural housing and 25 25 ............ 8 24 25
economic development...
Housing Programs:
Congregate services..... ........... ............ ............ 2 ............ ............
Homeownership and -19 ............ ............ 25 25 25
opportunity for people
everywhere grants (HOPE
grants)................
Housing for special 911 996 1,001 720 988 1,025
populations............
Department of Labor:
Employment and Training
Administration:
Unemployment trust fund. 2,366 2,364 2,414 2,359 2,364 2,414
Federal Emergency Management
Agency:
Emergency food and shelter 110 140 140 110 140 140
program..................
---------------------------------------------------------------------------------
Total, discretionary \2\ 25,354 30,825 33,484 29,509 32,629 33,410
=================================================================================
Mandatory:
Department of Agriculture:
Agricultural Marketing
Service:
Funds for strengthening 710 738 710 523 750 639
markets, income, and
supply (section 32)....
Food and Nutrition
Service:
Food stamp program...... 3,774 3,878 3,806 3,508 3,558 3,752
Child nutrition programs 9,436 9,466 9,932 9,053 9,748 10,189
Department of Health and
Human Services:
Administration for
Children and Families:
Payments to States for 1,010 3,321 3,448 2,906 3,439 3,453
child support
enforcement and family
support programs.......
Child care entitlement 2,367 2,567 2,717 2,237 2,423 2,555
to States..............
Temporary assistance for 16,689 16,689 16,679 15,464 17,080 17,260
needy families.........
Department of Housing and
Urban Development:
Public and Indian Housing
Programs:
Housing certificate fund ........... ............ 3,057 ........... ............ ............
\2\....................
---------------------------------------------------------------------------------
[[Page 210]]
Total, mandatory \2\.... 33,986 36,659 40,349 33,691 36,998 37,848
---------------------------------------------------------------------------------
Total, income security 59,340 67,484 73,833 63,200 69,627 71,258
=================================================================================
SOCIAL SECURITY
Discretionary:
Social Security
Administration:
Federal disability 6 14 14 6 14 14
insurance trust fund.....
---------------------------------------------------------------------------------
Total, discretionary.... 6 14 14 6 14 14
---------------------------------------------------------------------------------
Total, social security 6 14 14 6 14 14
=================================================================================
VETERANS BENEFITS AND SERVICES
Discretionary:
Department of Veterans
Affairs:
Veterans Health
Administration:
Medical care............ 318 343 369 318 343 369
Construction:
Grants for construction 90 100 50 104 85 91
of State extended care
facilities.............
Grants for the 25 25 25 12 17 21
construction of State
veterans cemeteries....
---------------------------------------------------------------------------------
Total, discretionary.... 433 468 444 434 445 481
---------------------------------------------------------------------------------
Total, veterans 433 468 444 434 445 481
benefits and services
=================================================================================
ADMINISTRATION OF JUSTICE
Discretionary:
Department of Health and
Human Services:
Administration for
Children and Families:
Violent crime reduction 92 ............ ............ 97 84 29
programs \3\...........
Department of Housing and
Urban Development:
Fair Housing and Equal
Opportunity:
Fair housing activities. 44 46 46 33 37 37
Department of Justice:
Office of Justice
Programs:
Justice assistance...... 151 263 304 65 147 455
State and local law 1,520 2,767 1,933 475 1,760 3,270
enforcement assistance.
Juvenile justice 242 263 268 177 158 383
programs...............
Community oriented 595 1,037 855 1,390 1,210 926
policing services......
Violent crime reduction 1,184 ............ ............ 2,049 ............ ............
programs, State and
local law enforcement
assistance.............
Court Services and Offender
Supervision Agency for the
District:
Federal payment to Court 93 ............ ............ 66 ............ ............
Services and Offender
Supervision Agency for
the District of Columbia.
Equal Employment Opportunity
Commission:
Salaries and expenses..... 29 30 30 46 42 45
State Justice Institute:
State Justice Institute: 7 7 7 8 7 7
salaries and expenses....
---------------------------------------------------------------------------------
Total, discretionary.... 3,957 4,413 3,443 4,406 3,445 5,152
=================================================================================
Mandatory:
Department of Justice:
Legal Activities and U.S.
Marshals:
Assets forfeiture fund.. 305 240 208 220 275 246
Office of Justice
Programs:
Crime victims fund...... 500 509 567 386 657 490
Department of the Treasury:
Departmental Offices:
Treasury forfeiture fund 98 88 88 108 88 88
---------------------------------------------------------------------------------
Total, mandatory........ 903 837 863 714 1,020 824
---------------------------------------------------------------------------------
Total, administration 4,860 5,250 4,306 5,120 4,465 5,976
of justice...........
=================================================================================
[[Page 211]]
GENERAL GOVERNMENT
Discretionary:
Department of the Interior:
Bureau of Land Management:
Payments in lieu of 134 200 150 133 200 150
taxes..................
Insular Affairs:
Trust Territory of the ........... ............ ............ 2 2 2
Pacific Islands........
District of Columbia:
District of Columbia
Courts:
Federal payment to the 100 105 111 86 107 114
District of Columbia
courts.................
Defender services in 34 34 34 26 39 34
District of Columbia
courts.................
Crime victims ........... 18 ............ ........... 18 ............
compensation fund......
District of Columbia
Corrections:
Payment to the District 175 134 33 158 144 43
of Columbia corrections
trustee, operations....
District of Columbia
General and Special
Payments:
Federal support for 34 43 ............ 83 43 ............
economic development
and management reforms
in the District........
Federal Drug Control
Programs:
High-intensity drug 158 172 206 143 161 223
trafficking areas program
---------------------------------------------------------------------------------
Total, discretionary.... 635 706 534 631 714 566
=================================================================================
Mandatory:
Department of Agriculture:
Forest Service:
Forest Service permanent 213 227 393 213 227 393
appropriations.........
Department of Energy:
Energy Programs:
Payments to States under 3 3 3 3 3 3
Federal Power Act......
Department of the Interior:
Bureau of Land Management:
Miscellaneous permanent 104 8 120 105 8 114
payment accounts.......
Minerals Management
Service:
Mineral leasing and 691 1,094 983 691 1,094 983
associated payments....
United States Fish and
Wildlife Service:
National wildlife refuge 19 18 18 19 18 18
fund...................
Insular Affairs:
Assistance to 70 78 69 74 66 77
territories............
Payments to the United 148 104 104 147 104 104
States territories,
fiscal assistance......
Department of the Treasury:
Bureau of Alcohol, Tobacco
and Firearms:
Internal revenue 297 315 246 297 315 246
collections for Puerto
Rico...................
United States Customs
Service:
Refunds, transfers, and 90 96 101 90 96 101
expenses of operation,
Puerto Rico............
Corps of Engineers:
Permanent appropriations.. 9 8 8 17 8 8
---------------------------------------------------------------------------------
Total, mandatory........ 1,644 1,951 2,045 1,656 1,939 2,047
---------------------------------------------------------------------------------
Total, general 2,279 2,657 2,579 2,287 2,653 2,613
government...........
=================================================================================
Total, Grants....... 286,267 329,016 377,682 284,659 316,265 350,061
Discretionary \1\ 115,953 141,148 146,551 116,654 127,051 138,092
\2\..............
Mandatory \1\ \2\. 170,314 187,868 231,131 168,005 189,214 211,969
----------------------------------------------------------------------------------------------------------------
\1\ Budget authority for certain transportation programs is classified as mandatory in other budget
presentations.
\2\ The Administration proposes to reverse the misleading budget practice of using advance appropriations simply
to avoid spending limitations. In order to avoid overstating discretionary budget authority in 2002, language
is proposed to designate the advance appropriation budget authority, appropriated in 2001, as direct
(mandatory) spending.
\3\ Amounts for 2001 and 2002 are part of the children and families services programs in the Department of
Health and Human Services.