[Analytical Perspectives]
[Special Analyses and Presentations]
[10. Aid to State and Local Governments]
[From the U.S. Government Publishing Office, www.gpo.gov]
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10. 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 $317.2 billion in 2001 and are estimated to increase to
$346.5 billion in 2002 and $376.4 billion in 2003.
Grant outlays for payments for individuals, such as Medicaid, are
estimated to be 64.3 percent of total grants in 2003; for physical
capital investment, 15.2 percent; and for all other purposes, largely
education, training, and social services, 20.5 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 $80.1
billion in 2002 and $82.9 billion in 2003. 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 6, ``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 6-5 in that chapter.
Table 10-1. FEDERAL GRANT OUTLAYS BY AGENCY
(In billions of dollars)
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2001 2002 2003
Agency Actual Estimate Proposed
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Department of Agriculture.................. 20.2 21.8 22.4
Department of Commerce..................... 0.4 0.8 0.6
Department of Education.................... 24.0 28.1 33.0
Department of Energy....................... 0.2 0.3 0.4
Department of Health and Human Services.... 183.1 201.2 220.1
Department of Housing and Urban Development 26.2 28.0 29.4
Department of the Interior................. 2.7 2.6 2.7
Department of Justice...................... 6.2 4.3 7.2
Department of Labor........................ 7.7 8.9 8.6
Department of Transportation............... 36.7 38.7 38.4
Department of the Treasury................. 0.5 0.5 0.4
Department of Veterans Affairs............. 0.4 0.5 0.5
Environmental Protection Agency............ 3.8 3.7 4.0
Federal Emergency Management Agency........ 3.2 4.8 6.7
Other agencies............................. 1.8 2.3 2.1
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Total................................... 317.2 346.5 376.4
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Table 10-1 shows the distribution of grants by agency. Grant outlays
for the Department of Health and Human Services are estimated to be
$220.1 billion in 2003, 58.5 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 the
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, which includes interagency work on standard and streamlined
forms and processes. Each of the Federal grant-making agencies is
responsible for working individually and collectively under the auspices
of the Federal Financial Assistance Management Improvement Act of 1999
(P.L. 106-107) to simplify grants and provide an electronic option for
grantees to conduct business with the Federal government.
Highlights of grants to State and local governments follow. For
additional information on grants, see the
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detailed Table 10-3 in this Chapter, and discussions in the Budget
volume.
Federal Emergency Management Agency
The budget provides the Federal Emergency Management Agency (FEMA)
with $3.5 billion in budget authority in 2003 to create a grant program
to improve State and local terrorism preparedness. While State and local
jurisdictions will have discretion to tailor the assistance to meet
local needs, it is anticipated that more than one-third of the funds
will be used to improve communications. It is further assumed that an
additional one-third will be used to equip State and local first
responders and that the remainder will be used for training, planning,
technical assistance and administration. The First Responder State/Local
Preparedness grant program would consolidate several existing programs,
including a first responder grant previously funded within the
Department of Justice (funded at $635 million in 2002). As part of this
consolidation, FEMA will take over the functions of Justice's Office of
Domestic Preparedness. The program would also encompass the recently
created FEMA FIRE grant program (funded at $360 million in 2002).
Education
The budget requests $36.1 billion in 2003 budget authority for the
Department of Education for grants to States and local governments for
education, an increase of $2.0 billion above the 2002 amount of $34.1
billion. The education proposals in this budget will help States improve
accountability for school and student performance, increase flexibility,
and support proven programs.
The Department of Education seeks to ensure equal access to education
and promote educational excellence for all students throughout the
Nation. It promotes educational excellence and access in elementary and
secondary education by providing formula and competitive grants to
States and local educational agencies in areas of national priority.
The budget requests $11.4 billion for Title I grants to school
districts to help raise student achievement in the Nation's most
impoverished communities. At this level, funding will have increased 85
percent since 1993. Major reform is underway for Title I grants which
have fallen short in meeting their objectives. Historically, Title I has
done little to raise student achievement as measured by test scores of
low-income students. For instance, reading scores of at-risk students
have remained flat over this period. However, in light of this year's
legislative reforms, the Administration believes that the program now
holds promise for improving performance by the schools and for the
students who face the most challenges. Schools that receive Title I
funds must show academic progress each year, both for students overall
and for each student group, to ensure that all groups of students are
proficient in reading and math within 12 years. If a school that
receives Title I funds does not improve for three consecutive years,
parents can use Federal funds for outside educational assistance from a
public or private tutor of their choice. The budget builds a foundation
for success by investing $1.0 billion in 2003 in the Reading First
program, a $100 million increase over 2002. Reading is the foundation
skill for all other learning. The President's goal is to ensure that all
students can read at grade level by the end of the third grade. The
Reading First program, initiated through the new Elementary and
Secondary Education Act (ESEA), will provide funds to States to support
only the most proven reading practices. The budget includes $75 million
for Early Reading First, the same level as 2002, to develop model
programs to help children in high-poverty communities prepare for
school. The budget also proposes $387 million for the second year of
Federal support of States' development of annual reading and math
assessments for grades 3 through 8. These assessments will be used to
monitor the yearly progress of schools under the new requirements of
ESEA.
The budget proposes $665 million for performance-based grants to
States to promote English language acquisition. Under the new law,
students served by this program must also show adequate yearly progress,
thus giving States a strong incentive to improve student performance on
annual assessments.
The budget proposes $2.9 billion for the Teacher Quality State Grants
program to recruit, train, and retain qualified teachers. This funding
should assist States in ensuring that all new teachers in schools
receiving Title I funds are highly qualified as required by the new
ESEA.
Children with disabilities are among those at greatest risk of being
left behind. The Individuals with Disabilities Education Act (IDEA)
establishes the right of children with disabilities to a free and
appropriate public education. To help States and localities meet their
responsibilities toward children with disabilities, the budget proposes
$9.4 billion for the Special Education grant to States program for 2003,
a $1.0 billion increase. This total includes $437 million for States to
identify and serve infants and toddlers with disabilities, a $20 million
increase. In many cases, this early intervention can reduce or even
eliminate the need for special education as children grow up.
As part of the President's initiative to tie budget decisions to
program performance, this budget will launch a multi-year effort to
reform job training programs across the Federal government, target
resources to programs with documented effectiveness, and eliminate
funding for ineffective, duplicative, and overlapping programs. As part
of this initiative, the budget proposes a new $30 million incentive
grant, which will be allocated to State Vocational Rehabilitation (VR)
agencies based on their performance in helping individuals with
disabilities obtain competitive jobs. While nationwide State VR agency
performance has improved in recent years, there is still wide variation
among States.
Training and Employment
The budget reflects the Administration's continued efforts to reform
the Nation's workforce development
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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 (JTPA) was repealed and all
States began to fully implement the WIA requirements. However, the WIA's
authorization will expire in 2003, providing the Administration an
opportunity to evaluate critically the current program structure,
financing, and performance. The Administration will undertake that work
in the coming year, and the 2004 Budget will outline a proposal to
further consolidate training programs. In 2003, estimates indicate that
more than $9.3 billion will be available for investments in job training
and other dislocated worker services, including $5 billion in new budget
authority and $4.3 billion in unspent resources carried forward into
2003.
The Administration is proposing short- and longer-term legislative
reforms to promote flexibility and strengthen the Unemployment Insurance
(UI) and Employment Service (ES) programs. Near-term reforms are
designed to meet the immediate needs of unemployed workers during the
current economic slowdown. Longer-term reforms will enable more workers
to receive extended UI benefits; reduce employers' Federal payroll
taxes, spurring economic growth; and allow States to control their own
administrative funding. The budget also includes two proposals to
strengthen financial management of the UI program and help States cut
wasteful benefit overpayments. These proposals would enable the
Inspector General to uncover fraudulent benefits schemes and train
States to detect and reduce overpayments; and assist States in their
efforts to use existing databases to eliminate fraudulent payments to
ineligible claimants. The budget proposes $12 million for these efforts.
The Administration also is encouraging greater competition and
participation by faith-based and community organizations in Federal
grant programs. To this end, the Department of Labor has scrutinized its
grant program applications to remove barriers. For example, it
discovered that under the Women in Apprenticeship and Non-traditional
Occupations (WANTO) program, applicants were required to demonstrate a
``history of commitment to economic and social justice.'' The Department
of Labor dropped this restrictive language, and received 37
applications, more than twice the average received in recent years. Of
the 11 actual grant recipients, 4 were new applicants who never had
received a WANTO grant.
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) in
the Department of Health and Human Services. The Administration requests
$6.7 billion for Head Start for 2003, a $130 million increase above
2002. The President has proposed to reform Head Start and return it to
its original focus getting children ready to learn. The Department of
Health and Human Services and the Department of Education have formed a
taskforce to assess ways to improve Head Start and lay the groundwork
for the proposed transfer to the Department of Education as part of the
program's reauthorization.
The budget requests $1.7 billion for the Social Services Block Grant
for 2003. 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 $7.5 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 2003, the programs will serve an
estimated 26.3 million lunches and 7.7 million breakfasts daily. 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 budget
provides $4.8 billion in 2003 for WIC, including a $150 million
contingency fund. The request is sufficient to serve 7.8 million persons
monthly and the contingency fund will ensure that the program can expand
to serve an increasing number of eligible persons should that be
necessary for any reason.
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. The Child Care Development Fund is funded through both the
Child Care and Development Block Grant ($2.1 billion proposed for 2003)
and the Child Care Entitlement to States ($2.7 billion proposed for
2003).
Health
This budget proposes $172.0 billion in outlays for 2003 grants to
State and local governments for health, $16.4 billion more than for
2002.
Transitional Medicare Low-Income Drug Assistance.--The Administration
proposes to begin to phase in comprehensive drug coverage for lower-
income Medicare beneficiaries up to 150 percent of poverty, as
envisioned in all major prescription drug proposals. This proposal would
allow States to expand drug coverage to Medicare beneficiaries up to 100
percent of poverty--about $12,000 for a family of two--at current
Medicaid matching rates, much like existing programs that subsidize
Medicare premiums and cost-sharing for low-income Medicare
beneficiaries. Further, as an added incentive for States to expand
coverage up to 150 percent
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of poverty--about $17,000 for a family of two--the Federal government
would pay 90 percent of the States' costs of expansion above 100 percent
of poverty with States being responsible for the remaining 10 percent.
This policy eventually would expand drug coverage for up to 3 million
beneficiaries currently without prescription drug assistance.
Medicaid.--Medicaid is the largest grant program, with outlays
projected to be $160.1 billion in 2003, including the changes proposed
in this budget. In 2001, this Federal-State health care program served
about 37 million low-income Americans, primarily children, pregnant
women, the elderly, and those with disabilities. The Federal Government
spent $129.4 billion, 57 percent of the total program in 2001, while
States spent $98.4 billion or 43 percent. Medicaid covers one-fourth of
the Nation's children and is the largest single purchaser of maternity
care and nursing home and other long-term care services. The elderly and
disabled made up one-third of Medicaid enrollees in 2001, but accounted
for approximately two-thirds of spending on benefits. Medicaid pays for
over one-third of the Nation's long-term care services.
The Administration proposes several Medicaid initiatives. One
initiative would extend for one year Transitional Medicaid Assistance,
which provides health insurance coverage to former welfare recipients
who would otherwise lose Medicaid eligibility due to earnings from
employment. The Administration also proposes to strengthen management
and enforcement of Federal payment policies for hospital, nursing home,
and school-based health services. The General Accounting Office and the
Department of Health and Human Services' Inspector General have
identified questionable Medicaid claiming practices for these services,
and have recommended increased Federal oversight.
State Children's Health Insurance Program.--The State Children's
Health Insurance Program (SCHIP) was established in 1997 in the Balanced
Budget Act to make available approximately $40 billion over 10 years for
States to provide health care coverage to low-income, uninsured
children. The Balanced Budget Act of 1997 authorized annual allotments
that are available to States for three years; remaining funds were then
to be redistributed among the States and available for one additional
year before returning to the Treasury. According to current estimates,
$3.2 billion in funds will return to the Treasury at the end of 2002 and
2003. The Administration proposes to extend the availability of these
expiring funds until 2006. According to current estimates, this
extension will allow every State to retain some funds. This proposal
will enable more States to maintain their current coverage levels as
well as provide additional health insurance coverage to more Americans
under the Administration's Health Insurance Flexibility and
Accountability (HIFA) initiative. SCHIP gives States broad flexibility
in program design while protecting beneficiaries through basic Federal
standards. Approximately 4.6 million children were enrolled in SCHIP
programs in 2001.
Health Insurance Flexibility and Accountability Initiative.--In August
2001, the Administration introduced the HIFA demonstration initiative,
which gives States the flexibility they need to design innovative ways
to increase access to health insurance coverage for the uninsured. The
HIFA initiative:
Encourages States to develop comprehensive health insurance
coverage approaches that utilize available Medicaid and SCHIP
funding to address insurance coverage for individuals with
incomes less than twice the official poverty level.
Gives States the programmatic flexibility to increase health
insurance coverage through support of private group health
coverage.
Simplifies the waiver application process by providing clear
guidance and data templates.
Increases accountability in the State and Federal
partnership by ensuring that Medicaid and SCHIP funds are
effectively being used to increase health insurance coverage.
The Administration will continue to build on the HIFA initiative to
give States the flexibility they need to extend coverage to more of the
neediest residents and reduce the number of uninsured.
Bioterrorism.--The budget requests over $1.4 billion to assist States
and localities prepare for, identify and respond to acts of
bioterrorism. The President's proposal will improve the ability of State
public health laboratories to identify dangerous agents, allow hospitals
to conduct training exercises with the State public health and emergency
departments, improve coordination between hospitals on a regional basis
and allow them to purchase better equipment, and improve the
communication between State public health and emergency response systems
in the case of an attack.
Community Health Centers.--This budget requests Federal spending to
assist State and local governments in increasing access to health care
by increasing the number of community health center sites. Community
health centers (CHCs) provide family-oriented, preventive and primary
health care to over 11 million patients through a network of over 3,400
health centers sites. CHCs are successfully improving the health status
of the Nation's underserved populations. The budget builds on the 2002
Community Health Centers Presidential Initiative to increase the number
of health center sites by 1,200 to serve an additional 6.1 million
patients by 2006.
Natural Resources and Environment
The Administration requests over $900 million for the Land and Water
Conservation Fund (LWCF), of which $575 million is for grants and
assistance programs. Traditionally, funds from the LWCF have been used
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. Last year, the LWCF funded two of the
President's priorities, both of which recognize that Federal acquisition
is not always the best or only way to con
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serve land and other natural resources. These programs, which include
the Landowner Incentive Grants and Private Stewardship Grants, provide
new ways to cooperate with private landowners to enhance habitat for
imperiled species and encourage conservation efforts on private lands.
The budget funds the Cooperative Conservation Initiative (CCI) by
allocating $100 million in matching funds for natural resource
conservation projects. Projects can range from working with The Nature
Conservancy to removing invasive species from Channel Islands National
Park, to working with local communities to reclaim abandoned mine sites.
Half of these funds would be allocated through cost-shared programs
between non-Federal partners and the Department of Interior's National
Park Service, Fish and Wildlife Service, and Bureau of Land Management.
The other half would be distributed to States as part of the LWCF State
Grant program.
The Administration's focus on endangered species involves working with
partners to prevent species from being on the endangered species list in
the first place and to recover those already listed. The President's
budget provides over $200 million in 2003 for such activities through
various grant programs, including the Cooperative Endangered Species
Conservation Fund, State and Tribal Wildlife Grant, Landowner Incentive
Grant and Private Stewardship Grant programs. These programs emphasize
working with and encouraging States and landowners to protect a variety
of species and their habitat, thereby garnering matching funds and their
support of these conservation efforts.
The Administration also proposes $171 million in grant funding in 2003
under the recent Brownfields authorizing legislation. This fully funds,
at the authorized level of $50 million, the new grant program to
establish State response programs for oversight of private clean-up
activities. This also provides $121 million in grants to States, tribes
and municipalities for Brownfields clean-up activities. These grants
will be used to characterize and assess the contamination of properties,
capitalize revolving loan funds used for clean-up, and provide job
training, among other activities.
Administration of Justice
The budget increases funding for counter-terrorism and homeland
security measures by reducing grants and other programs that have
accomplished their mission, failed to demonstrate a clear impact on
crime, or have been extensively earmarked by Congress. Despite spending
billions of dollars since 1994, virtually no evidence links the
Department of Justice's grant programs to the Nation's falling crime
rate, and most lack verifiable measures of performance. The President's
proposal continues to support flexible grant funding for State and local
law enforcement by merging Byrne Grants, Local Law Enforcement Block
Grants, and the Community Oriented Policing Services Hiring Grants into
a new $800 million Justice Assistance Grant Program. While Department of
Justice grants are reduced by a net total of $1.2 billion, this is more
than offset by the budget's proposal for $3.5 billion in the Federal
Emergency Management Agency assistance to improve the terrorism
preparedness and crisis response capabilities of State and local first
responders, including police, fire, and rescue personnel.
Transportation
Grant outlays for transportation are estimated to be $38.4 billion in
2003 to assist with transportation infrastructure and related programs,
including highways, transit, airports and other areas.
Highways and Transit.--The budget requests $22.1 billion in budgetary
resources in 2003 for the Federal-aid highways program to maintain and
improve surface transportation infrastructure, along with improvements
in the physical condition and safety of the facilities.
Under the Transportation Equity Act for the 21st Century (TEA-21),
highway spending is adjusted each year according to a formula in law
that reflects the most recent data on highway-related receipts. In 2000,
2001, and 2002 highway spending was increased significantly by these
annual adjustments. However, for 2003 this formula will produce a
reduction in the amount of new commitments of highway spending, due in
large part to a previous overestimate of actual receipts in 2001. Even
so, in 2003 actual spending on highway construction, including the
continuation of prior-year projects, will fall less than three percent
from its all-time high in 2002. Highway spending in 2003 will be 40
percent higher than in 1998, the first year of TEA-21. These
infrastructure programs help reduce congestion and expand travel
options. The Department of Transportation also has several programs that
regulate highway and pipeline safety to reduce accidents and fatalities.
The budget requests $7.1 billion in budgetary resources in 2003 to
assist State and local governments with mass transit programs.
Airports.--The budget requests $3.4 billion in budgetary resources in
2003 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. Of
this amount, $83 million is for the essential air service program.
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 2003 in CDBG grants for improving
housing, public works and services, promoting economic development, and
acquiring or clearing land. While it favors poorer communities, the
current distribution of CDBG formula funds includes many grants to
higher-income cities and counties. The budget proposes a legislative
change to reduce
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grants to the wealthiest one-percent of eligible communities. These
savings allow for the funding of a $16 million initiative to improve
housing and economic conditions in the Colonias, which are communities
within 150 miles of the U.S.-Mexican border that lack adequate
infrastructure and other basic services. In addition, the CDBG formula
program grows by $95 million in 2003, giving communities an increase in
their annual CDBG allocations. As 2000 Census data become available the
Department of Housing and Urban Development will develop proposals for a
new CDBG allocation formula and process, to allocate more to those who
need these funds and will use them effectively.
The budget proposes to streamline the Department of Housing and Urban
Development's efforts to promote community and economic development by
eliminating two Community Planning and Development programs--the Rural
Housing and Economic Development grants and Round II Empowerment Zones
(EZs) grants. Since 1999, these three programs have received over $430
million. Evaluations and other performance information provide no
convincing evidence that these are effective programs. The savings from
eliminating these programs will be reinvested in the CDBG program.
The budget supports approaches for increasing affordable housing.
There is a $100 million increase for the HOME block grant, a flexible
program that localities can tailor to their particular housing needs.
This program will produce about 23,000 new affordable rental units in
2003 and rehabilitate another 23,000.
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 and help build rural community facilities
such as fire stations and medical centers, and 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. Department of Agriculture 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 $2.8 billion
in loans and grants for RCAP for 2003.
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 of budget authority and outlays for all grants to
State and local governments is in Table 10-3 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 10-2 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, social security, and the
veterans benefits and services functions are combined in the ``other
functions'' line in the table.
Table 10-2. TRENDS IN FEDERAL GRANTS TO STATE AND LOCAL GOVERNMENTS
(Outlays; dollar amounts in billions)
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Actual Estimate
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1960 1965 1970 1975 1980 1985 1990 1995 2000 2001 2002 2003 2004 2005 2006 2007
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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 4.9 5.3 5.5 5.6 5.6 5.6 5.5
Agriculture........................ 0.2 0.5 0.6 0.4 0.6 2.4 1.3 0.8 0.7 0.8 0.9 0.8 0.9 0.9 0.9 0.9
Transportation..................... 3.0 4.1 4.6 5.9 13.0 17.0 19.2 25.8 32.2 36.7 38.7 38.4 35.6 34.9 35.2 36.4
Community and regional development. 0.1 0.6 1.8 2.8 6.5 5.2 5.0 7.2 8.7 9.5 11.6 14.2 14.9 14.3 12.6 12.4
Education, training, employment, 0.5 1.1 6.4 12.1 21.9 17.1 21.8 30.9 36.7 40.1 45.9 51.6 54.2 55.2 55.8 56.8
and social services...............
Health............................. 0.2 0.6 3.8 8.8 15.8 24.5 43.9 93.6 124.8 139.3 155.6 172.0 185.2 200.6 217.9 237.7
Income security.................... 2.6 3.5 5.8 9.4 18.5 27.9 36.8 58.4 68.7 76.1 80.0 82.8 84.4 84.9 85.7 86.0
Administration of justice.......... ....... ....... * 0.7 0.5 0.1 0.6 1.2 5.3 6.6 4.7 7.6 8.5 5.5 5.0 5.0
General government................. 0.2 0.2 0.5 7.1 8.6 6.8 2.3 2.3 2.1 2.4 2.6 2.2 3.4 2.2 2.3 2.2
Other.............................. * 0.1 0.1 0.2 0.7 0.8 0.8 0.8 0.9 1.0 1.2 1.3 1.3 1.3 1.4 1.4
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Total............................ 7.0 10.9 24.1 49.8 91.4 105.9 135.3 225.0 284.7 317.2 346.5 376.4 394.0 405.4 422.6 444.4
B. Distribution of Grants by BEA
Category:
Discretionary...................... N/A 2.9 10.2 21.0 53.3 55.5 63.3 94.0 116.7 131.1 143.7 155.4 156.8 154.5 153.7 154.8
Mandatory.......................... N/A 8.0 13.9 28.8 38.1 50.4 72.0 131.0 168.0 186.2 202.8 221.0 237.1 250.9 268.9 289.5
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Total............................ 7.0 10.9 24.1 49.8 91.4 105.9 135.3 225.0 284.7 317.2 346.5 376.4 394.0 405.4 422.6 444.4
C. Composition:
Current dollars:
Payments for individuals \1\..... 2.5 3.7 8.7 16.8 32.6 50.1 77.3 144.4 182.6 203.9 223.2 242.1 256.6 272.9 291.6 313.3
Physical capital \1\............. 3.3 5.0 7.1 10.9 22.6 24.9 27.2 39.6 48.7 53.4 56.8 57.2 55.5 53.7 54.0 54.2
Other grants..................... 1.2 2.2 8.3 22.2 36.2 30.9 30.9 41.0 53.4 59.9 66.5 77.2 81.8 78.8 77.0 76.8
----------------------------------------------------------------------------------------------------------------------------------------------------------
Total.......................... 7.0 10.9 24.1 49.8 91.4 105.9 135.3 225.0 284.7 317.2 346.5 376.4 394.0 405.4 422.6 444.4
Percentage of total grants:
Payments for individuals \1\..... 35.3% 34.1% 36.2% 33.6% 35.7% 47.3% 57.1% 64.2% 64.1% 64.3% 64.4% 64.3% 65.1% 67.3% 69.0% 70.5%
Physical capital \1\............. 47.3% 45.7% 29.3% 21.9% 24.7% 23.5% 20.1% 17.6% 17.1% 16.8% 16.4% 15.2% 14.1% 13.3% 12.8% 12.2%
Other grants..................... 17.4% 20.2% 34.5% 44.5% 39.6% 29.2% 22.8% 18.2% 18.8% 18.9% 19.2% 20.5% 20.8% 19.4% 18.2% 17.3%
----------------------------------------------------------------------------------------------------------------------------------------------------------
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% 100.0%
Constant (FY 1996) dollars:
Payments for individuals \1\..... 11.3 15.9 31.7 45.4 60.2 70.7 90.8 147.4 169.9 185.7 199.8 211.9 219.6 228.2 238.2 249.9
Physical capital \1\............. 15.8 22.4 25.2 23.9 36.1 31.8 30.3 40.4 45.4 48.6 50.6 49.7 47.1 44.5 43.6 42.7
Other grants..................... 8.3 12.8 36.1 67.2 72.2 44.5 36.8 42.0 46.8 51.0 55.3 62.7 64.9 60.9 58.0 56.5
----------------------------------------------------------------------------------------------------------------------------------------------------------
Total.......................... 35.3 51.2 92.9 136.5 168.5 147.0 157.9 229.8 262.2 285.3 305.8 324.3 331.6 333.7 339.8 349.1
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% 16.9% 17.7% 18.0% 17.8% 17.8% 18.0%
Domestic programs \2\............ 18.0% 18.3% 23.2% 21.7% 22.2% 18.2% 17.1% 21.6% 22.0% 22.9% 22.2% 23.2% 23.4% 23.2% 23.1% 23.2%
State and local expenditures....... 19.2% 20.1% 24.1% 27.1% 30.4% 24.2% 21.0% 25.1% 24.4% 25.2% 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% 3.3% 3.4% 3.4% 3.3% 3.3% 3.3%
E. As a share of total State and
local gross investments:
Federal capital grants............. 24.6% 25.5% 25.4% 25.9% 35.4% 30.2% 21.9% 25.8% 22.1% 23.0% N/A N/A N/A N/A N/A N/A
State and local own-source 75.4% 74.5% 74.6% 74.1% 64.6% 69.8% 78.1% 74.2% 77.9% 77.0% N/A N/A N/A N/A N/A N/A
financing.........................
----------------------------------------------------------------------------------------------------------------------------------------------------------
Total............................ 100.0% 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.
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. 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 $344.8
billion or 92 percent of total grant outlays in 2003.
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 $172.0 billion in 2003. 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 required 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
[[Page 243]]
annual appropriations process. Outlays for mandatory grant programs are
estimated to be $221.0 billion in 2003. The three largest mandatory
grant programs are Medicaid, with estimated outlays of $160.1 billion in
2003, Temporary Assistance for Needy Families, $19.4 billion in 2003,
and Food Stamp grants for State administration and child nutrition
programs, with combined outlays of $14.6 billion in 2003.
The funding level for discretionary grant programs is determined
annually through appropriations acts. Outlays for discretionary grant
programs are estimated to be $155.4 billion in 2003. Table 10-3 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
[[Page 244]]
Chapter 25 ``Budget System and Concepts and Glossary'' in this volume.
Section C of Table 10-2 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 57.1 percent of the total
in 1990 to 64.3 percent of the total in 2001. While payments for
individuals will comprise the same percent of grants in 2003 as 2001,
they are estimated to increase to an estimated 70.5 percent of the total
by 2007.
---------------------------------------------------------------------------
\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.
Temporary Assistance for Needy Families, Food Stamps administration,
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 payments for individuals have grown. In 2003, grants for
physical capital are estimated to be 15.2 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 20.5 percent of total grants in
2003.
Section C of Table 10-2 also shows these three categories in constant
dollars. In constant 1996 dollars, total grants increase from $157.9
billion in 1990 to an estimated $324.3 billion in 2003, 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 6.7
percent per year; grants for physical capital an average of 3.9 percent
per year, and other grants an average of 4.2 percent per year.
In contrast to these increases, outlays for total grants in constant
1996 dollars decreased during the 1980s, 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 17.7 percent in 2003. Grants as a
percentage of domestic spending are estimated to be 23.2 percent in
2003.
As a percentage of total State and local expenditures, grants have
increased from 21.0 percent in 1990 to 25.2 percent in 2001.
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 23.0 percent of State and local gross investment in 2001.
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 7,
``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 17, ``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
[[Page 245]]
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 prepared by the Bureau of the
Census.
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 10-3, ``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 246]]
Table 10-3. FEDERAL GRANTS TO STATE AND LOCAL GOVERNMENTS--BUDGET AUTHORITY AND OUTLAYS
(in millions of dollars)
----------------------------------------------------------------------------------------------------------------
Budget Authority Outlays
Function, Category, Agency and ---------------------------------------------------------------------------------
Program 2001 2002 2003 2001 2002 2003
Actual Estimate Estimate Actual Estimate Estimate
----------------------------------------------------------------------------------------------------------------
NATIONAL DEFENSE
Discretionary:
Federal Emergency Management
Agency:
Emergency management 47 91 71 47 91 71
planning and assistance..
---------------------------------------------------------------------------------
Total, discretionary.... 47 91 71 47 91 71
---------------------------------------------------------------------------------
Total, national 47 91 71 47 91 71
defense..............
=================================================================================
ENERGY
Discretionary:
Department of Energy:
Energy Programs:
Energy conservation..... 195 275 361 177 250 350
---------------------------------------------------------------------------------
Total, discretionary.... 195 275 361 177 250 350
=================================================================================
Mandatory:
Tennessee Valley Authority:
Tennessee Valley Authority 315 329 338 315 329 338
fund.....................
---------------------------------------------------------------------------------
Total, mandatory........ 315 329 338 315 329 338
---------------------------------------------------------------------------------
Total, energy......... 510 604 699 492 579 688
=================================================================================
NATURAL RESOURCES AND
ENVIRONMENT
Discretionary:
Department of Agriculture:
Natural Resources
Conservation Service:
Watershed rehabilitation ........... 2 ............ ........... 1 ............
program................
Resource conservation ........... ............ ............ 1 1 ............
and development........
Emergency watershed 82 34 41 66 64 75
protection.............
Forest Service:
State and private 236 221 133 131 215 160
forestry...............
Management of national 6 5 5 6 5 5
forest lands for
subsistence uses.......
Department of Commerce:
National Oceanic and
Atmospheric
Administration:
Operations, research, 5 5 5 3 3 3
and facilities.........
Pacific coastal salmon 110 157 110 35 290 110
recovery...............
Department of the Interior:
Office of Surface Mining
Reclamation and
Enforcement:
Regulation and 51 57 52 51 57 56
technology.............
Abandoned mine 196 185 157 146 117 116
reclamation fund.......
Bureau of Reclamation:
Bureau of Reclamation 12 7 ............ 13 12 3
loan subsidy...........
United States Fish and
Wildlife Service:
Commercial salmon ........... ............ ............ ........... 5 ............
fishery capacity
reduction..............
State and tribal 50 60 60 ........... 20 38
wildlife grants........
Federal aid in wildlife 50 ............ ............ 50 ............ ............
restoration............
Cooperative endangered 105 96 91 20 63 100
species conservation
fund...................
Wildlife conservation 1 ............ ............ 1 ............ ............
and appreciation fund..
Stewardship grants...... ........... 10 10 ........... 2 5
Landowner incentive ........... 40 50 ........... 6 16
program................
Miscellaneous permanent 3 3 3 2 3 2
appropriations.........
National Park Service:
Urban park and 30 30 ............ 1 8 21
recreation fund........
National recreation and 1 1 ............ 1 1 ............
preservation...........
Land acquisition and 90 144 200 10 23 55
State assistance.......
Historic preservation 94 74 67 55 127 89
fund...................
Environmental Protection
Agency:
State and tribal 3,671 3,738 3,464 3,548 3,466 3,737
assistance grants \1\....
Hazardous substance 171 171 175 141 170 170
superfund................
Leaking underground 64 63 62 61 65 71
storage tank trust fund..
---------------------------------------------------------------------------------
Total, discretionary \1\ 5,028 5,103 4,685 4,342 4,724 4,832
=================================================================================
[[Page 247]]
Mandatory:
Department of the Interior:
Bureau of Land Management:
Miscellaneous permanent 7 15 27 7 15 26
payment accounts.......
Minerals Management
Service:
National forests fund, 4 3 3 4 3 3
Payment to States......
Leases of lands acquired 2 1 1 2 1 1
for flood control,
navigation, and allied
purposes...............
United States Fish and
Wildlife Service:
Federal aid in wildlife 289 213 226 223 232 276
restoration............
Sport fish restoration.. 301 357 338 291 311 331
Departmental Management:
Everglades watershed ........... ............ ............ 6 6 6
protection.............
Everglades restoration 2 ............ ............ 2 3 1
account................
Department of the Treasury:
Financial Management
Service:
Payment to terrestrial 5 5 5 5 5 5
wildlife habitat
restoration trust fund.
---------------------------------------------------------------------------------
Total, mandatory........ 610 594 600 540 576 649
---------------------------------------------------------------------------------
Total, natural 5,638 5,697 5,285 4,882 5,300 5,481
resources and
environment \1\......
=================================================================================
AGRICULTURE
Discretionary:
Department of Agriculture:
Departmental
Administration:
Outreach for socially 3 3 3 2 3 3
disadvantaged farmers..
Cooperative State
Research, Education, and
Extension Service:
Extension activities.... 454 465 448 449 502 455
Research and education 246 252 242 232 246 247
activities.............
Integrated activities... 19 15 15 3 11 14
Agricultural Marketing
Service:
Payments to States and 1 1 1 1 1 1
possessions............
Farm Service Agency:
State mediation grants.. 3 3 3 2 2 3
---------------------------------------------------------------------------------
Total, discretionary.... 726 739 712 689 765 723
=================================================================================
Mandatory:
Department of Agriculture:
Office of the Secretary:
Fund for rural America.. 10 ............ ............ 11 4 11
Farm Service Agency:
Commodity Credit 56 117 107 56 117 107
Corporation fund.......
---------------------------------------------------------------------------------
Total, mandatory........ 66 117 107 67 121 118
---------------------------------------------------------------------------------
Total, agriculture.... 792 856 819 756 886 841
=================================================================================
COMMERCE AND HOUSING CREDIT
Mandatory:
Department of Commerce:
National Oceanic and
Atmospheric
Administration:
Promote and develop 5 11 4 6 11 8
fishery products and
research pertaining to
American fisheries.....
---------------------------------------------------------------------------------
Total, mandatory........ 5 11 4 6 11 8
---------------------------------------------------------------------------------
Total, commerce and 5 11 4 6 11 8
housing credit.......
=================================================================================
TRANSPORTATION
Discretionary:
Department of
Transportation:
Coast Guard:
Boat safety............. ........... ............ ............ 1 ............ ............
Federal Aviation
Administration:
Grants-in-aid for 3 3 4 2,020 2,801 3,273
airports (Airport and
airway trust fund) \1\.
[[Page 248]]
Federal Highway
Administration:
State infrastructure ........... -6 ............ 3 7 5
banks..................
Appalachian development ........... 200 ............ 83 92 106
highway system.........
Highway-related safety ........... ............ ............ ........... 1 ............
grants.................
Appalachian development 254 ............ ............ 9 111 67
highway system (Highway
trust fund)............
Federal-aid highways \1\ 23 24 24 27,098 28,040 27,297
Miscellaneous 605 148 ............ 58 408 257
appropriations.........
Miscellaneous highway 1,210 100 ............ 71 306 309
trust funds............
Federal Motor Carrier
Safety Administration:
National motor carrier 160 191 173 110 180 183
safety program.........
Motor carrier safety.... ........... 5 10 ........... 4 9
Border enforcement ........... ............ 18 ........... ............ 16
program................
National Highway Traffic
Safety Administration:
Highway traffic safety 202 212 214 196 218 222
grants.................
Federal Railroad
Administration:
Emergency railroad ........... ............ ............ 4 ............ ............
rehabilitation and
repair.................
Local rail freight ........... ............ ............ 1 1 ............
assistance.............
Alaska railroad 30 20 ............ 28 25 37
rehabilitation.........
Railroad research and 3 4 2 2 2 3
development............
Conrail commuter ........... ............ ............ 2 1 ............
transition assistance..
Federal Transit
Administration:
Research, training, and ........... ............ ............ 1 1 1
human resources........
Job access and reverse 100 125 150 39 67 95
commute grants.........
Interstate transfer ........... ............ ............ 3 3 2
grants-transit.........
Washington Metropolitan ........... ............ ............ 116 54 36
Area Transit Authority.
Formula grants \1\...... 4,517 3,565 3,839 4,078 3,713 3,535
Capital investment 2,695 2,991 3,036 1,902 1,771 2,366
grants \1\.............
Transit planning and 156 101 105 102 132 139
research...............
Discretionary grants ........... ............ ............ 722 714 386
(Highway trust fund,
mass transit account)..
Research and Special
Programs Administration:
Pipeline safety......... 22 19 19 14 19 19
---------------------------------------------------------------------------------
Total, discretionary \1\ 9,980 7,702 7,594 36,663 38,671 38,363
=================================================================================
Mandatory:
Department of
Transportation:
Federal Aviation
Administration:
Grants-in-aid for 2,594 3,173 3,400 ........... ............ ............
airports (Airport and
airway trust fund) \1\.
Federal Highway
Administration:
Federal-aid highways \1\ 32,632 34,822 30,855 ........... ............ ............
Research and Special
Programs Administration:
Emergency preparedness 17 13 13 10 15 13
grants.................
---------------------------------------------------------------------------------
Total, mandatory \1\.... 35,243 38,008 34,268 10 15 13
---------------------------------------------------------------------------------
Total, transportation 45,223 45,710 41,862 36,673 38,686 38,376
\1\..................
=================================================================================
COMMUNITY AND REGIONAL
DEVELOPMENT
Discretionary:
Department of Agriculture:
Rural Development:
Rural community 1,090 710 696 803 684 673
advancement program....
Rural Utilities Service:
Distance learning and 27 49 31 10 16 27
telemedicine program...
Rural Business--
Cooperative Service:
Rural cooperative 33 8 9 3 26 14
development grants.....
Forest Service:
Southeast Alaska 5 ............ ............ 7 7 1
economic disaster fund.
Department of Commerce:
Economic Development
Administration:
Economic development 443 353 335 356 479 450
assistance programs....
Department of Housing and
Urban Development:
Public and Indian Housing
Programs:
Moving to work.......... ........... ............ ............ 3 3 ............
Community Planning and
Development:
Community development 5,112 7,000 4,732 4,939 5,235 5,878
block grants \1\.......
[[Page 249]]
Urban development action ........... ............ ............ 1 10 10
grants.................
Community development 30 15 7 7 11 15
loan guarantees subsidy
Brownfields 25 25 25 4 26 31
redevelopment..........
Empowerment zones/ 185 45 ............ 31 89 104
enterprise communities.
Office of Lead Hazard
Control and Healthy
Homes:
Lead hazard reduction... 100 110 126 86 95 101
Department of the Interior:
Bureau of Indian Affairs:
Operation of Indian 149 153 149 125 146 149
programs...............
Indian guaranteed loan 5 6 5 4 6 5
subsidy................
Federal Emergency Management
Agency:
Emergency management 267 499 3,629 217 380 1,904
planning and assistance
\1\......................
Disaster relief \1\....... 3,055 5,498 1,546 2,734 4,122 4,567
National pre-disaster ........... ............ 300 ........... ............ 75
mitigation fund..........
Disaster assistance for ........... ............ ............ 46 54 19
unmet needs..............
National flood mitigation 20 20 20 13 21 23
fund.....................
Appalachian Regional 70 64 59 86 105 87
Commission.................
Delta Regional Authority.... 19 9 9 ........... 1 9
Denali Commission........... 55 91 30 11 90 76
---------------------------------------------------------------------------------
Total, discretionary \1\ 10,690 14,655 11,708 9,486 11,606 14,218
=================================================================================
Mandatory:
Department of the Interior:
Bureau of Indian Affairs:
Indian direct loan ........... 4 ............ 1 4 ............
subsidy................
---------------------------------------------------------------------------------
Total, mandatory........ ........... 4 ............ 1 4 ............
---------------------------------------------------------------------------------
Total, community and 10,690 14,659 11,708 9,487 11,610 14,218
regional development
\1\..................
=================================================================================
EDUCATION, TRAINING,
EMPLOYMENT, AND SOCIAL
SERVICES
Discretionary:
Department of Commerce:
National
Telecommunications and
Information
Administration:
Public 30 29 32 15 27 33
telecommunications
facilities, planning
and construction.......
Information 22 6 ............ 9 20 20
infrastructure grants..
Department of Education:
Office of Elementary and
Secondary Education:
Reading excellence...... 277 195 ............ 124 263 258
Indian education........ 113 117 117 76 110 116
Impact aid.............. 987 1,136 1,133 1,021 1,146 1,116
Chicago litigation ........... ............ ............ 1 1 ............
settlement.............
Education reform........ 611 ............ ............ 987 888 241
Education for the 9,102 11,650 13,325 8,619 9,353 11,783
disadvantaged..........
School improvement 4,432 6,959 6,501 2,721 4,269 5,992
programs \1\...........
Office of English Language
Acquisition:
English language 353 622 622 344 477 570
acquisition............
Office of Special
Education and
Rehabilitative Services:
Special education....... 5,817 8,371 9,391 5,552 6,625 7,895
Rehabilitation services 137 181 207 118 236 198
and disability research
American Printing House 12 14 14 11 19 14
for the Blind..........
Office of Vocational and
Adult Education:
Vocational and adult 1,777 1,893 1,863 1,651 1,756 1,843
education..............
Office of Postsecondary
Education:
Higher education........ 377 365 365 300 443 374
Office of Student
Financial Assistance:
Student financial 55 67 ............ 43 63 54
assistance.............
Office of Educational
Research and Improvement:
Education research, 150 ............ ............ 86 216 40
statistics, and
assessment.............
Department of Health and
Human Services:
Administration for
Children and Families:
Promoting safe and 3 68 223 3 17 88
stable families........
Children and families 7,607 8,080 8,130 6,614 7,403 7,967
services programs......
Administration on Aging:
Aging services programs. 1,104 1,201 1,342 949 1,137 1,295
[[Page 250]]
Department of the Interior:
Bureau of Indian Affairs:
Operation of Indian 243 271 251 230 270 251
programs...............
Department of Labor:
Employment and Training
Administration:
Training and employment 4,090 3,827 3,399 3,132 4,025 4,201
services \1\...........
Community service 97 101 97 102 99 100
employment for older
Americans..............
State unemployment 193 167 156 119 201 217
insurance and
employment service
operations \1\.........
Unemployment trust fund. 1,049 1,052 874 1,100 896 890
Corporation for National and
Community Service:
Domestic volunteer service 74 81 100 70 81 92
programs, operating
expenses.................
National and community 242 213 339 239 228 275
service programs,
operating expenses.......
Corporation for Public 360 375 390 360 375 390
Broadcasting...............
District of Columbia:
District of Columbia
General and Special
Payments:
Federal payment for 17 17 17 17 17 17
resident tuition
support................
Institute of American Indian
and Alaska Native Culture
and Arts:
Payment to the institute.. ........... ............ 1 ........... ............ 1
National Endowment for the
Arts:
National Endowment for the 34 34 34 32 38 36
Arts: grants and
administration...........
Challenge America arts 3 7 7 1 6 7
fund.....................
Institute of Museum and
Library Services:
Office of Museum Services: 23 24 25 22 33 33
grants and administration
Office of Library 203 193 175 167 226 226
Services: grants and
administration...........
---------------------------------------------------------------------------------
Total, discretionary \1\ 39,594 47,316 49,130 34,835 40,964 46,633
=================================================================================
Mandatory:
Department of Education:
Office of Special
Education and
Rehabilitative Services:
Rehabilitation services 2,400 2,482 2,533 2,389 2,258 2,515
and disability research
Department of Health and
Human Services:
Administration for
Children and Families:
Job opportunities and ........... ............ ............ 4 4 3
basic skills training
program................
Promoting safe and 300 305 305 258 281 284
stable families........
Social services block 1,725 1,700 1,700 1,852 1,803 1,793
grant..................
Department of Labor:
Employment and Training
Administration:
Training and employment ........... ............ -138 ........... ............ -4
services...............
Welfare to work jobs.... ........... ............ ............ 659 491 120
State unemployment ........... ............ 138 ........... ............ 84
insurance and
employment service
operations.............
Federal unemployment 132 132 132 141 131 132
benefits and allowances
---------------------------------------------------------------------------------
Total, mandatory........ 4,557 4,619 4,670 5,303 4,968 4,927
---------------------------------------------------------------------------------
Total, education, 44,151 51,935 53,800 40,138 45,932 51,560
training, employment,
and social services
\1\..................
=================================================================================
HEALTH
Discretionary:
Department of Agriculture:
Food Safety and Inspection
Service:
Salaries and expenses... 47 43 43 43 43 43
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 2,218 2,538 2,499 1,820 2,283 2,492
services...............
Centers for Disease
Control and Prevention:
Disease control, 2,536 2,660 2,496 2,106 2,356 2,745
research, and training
\1\....................
Substance Abuse and Mental
Health Services
Administration:
Substance abuse and 2,156 2,289 2,307 2,098 2,229 2,234
mental health services.
Department of Labor:
Occupational Safety and
Health Administration:
Salaries and expenses... 88 90 90 88 90 90
Mine Safety and Health
Administration:
Salaries and expenses... 8 8 8 8 8 8
---------------------------------------------------------------------------------
[[Page 251]]
Total, discretionary \1\ 7,054 7,629 7,444 6,164 7,010 7,613
=================================================================================
Mandatory:
Department of Health and
Human Services:
Centers for Medicare and
Medicaid Services:
Grants to States for 129,504 144,816 160,070 129,434 144,926 160,070
medicaid...............
State children's health 6,283 3,115 3,175 3,699 3,689 4,322
insurance fund.........
State grants and 62 67 72 2 18 30
demonstrations.........
---------------------------------------------------------------------------------
Total, mandatory........ 135,849 147,998 163,317 133,135 148,633 164,422
---------------------------------------------------------------------------------
Total, health \1\..... 142,903 155,627 170,761 139,299 155,643 172,035
=================================================================================
INCOME SECURITY
Discretionary:
Department of Agriculture:
Food and Nutrition
Service:
Food donations programs. 151 151 1 134 150 45
Commodity assistance 140 150 145 136 159 147
program................
Special supplemental 4,044 4,387 4,751 4,085 4,426 4,727
nutrition program for
women, infants, and
children (WIC) \1\.....
Child nutrition programs 13 7 7 7 5 5
Department of Health and
Human Services:
Administration for
Children and Families:
Low income home energy 2,000 2,000 1,700 2,161 1,830 1,692
assistance.............
Refugee and entrant 324 353 344 345 351 385
assistance.............
Payments to States for 1,993 2,093 2,093 1,369 1,910 2,055
the child care and
development block grant
Payments to States for ........... ............ 60 ........... ............ 9
foster care and
adoption assistance....
Department of Housing and
Urban Development:
Public and Indian Housing
Programs:
Public housing operating 3,235 3,495 3,530 3,137 3,385 3,458
fund...................
Drug elimination grants 309 -11 ............ 309 312 247
for low-income housing.
Revitalization of 574 574 574 487 552 608
severely distressed
public housing (HOPE
VI)....................
Native Hawaiian Housing ........... ............ 10 ........... ............ 1
Block Grant............
Public housing capital 2,993 2,843 2,426 3,550 3,656 3,553
fund...................
Native American housing 649 649 647 684 711 740
block grant............
Housing certificate fund 8,798 10,618 12,156 9,530 10,130 10,453
Community Planning and
Development:
Homeless assistance 1,023 1,123 1,130 965 1,062 1,199
grants.................
Home investment 1,796 1,846 2,084 1,424 1,551 1,600
partnership program....
Youthbuild program...... ........... ............ ............ ........... 1 ............
Emergency food and ........... ............ 153 ........... ............ 153
shelter program........
Housing opportunities 257 277 292 241 250 260
for persons with AIDS..
Rural housing and 25 25 ............ 17 25 25
economic development...
Housing Programs:
Homeownership and -3 ............ ............ 21 25 1
opportunity for people
everywhere grants (HOPE
grants)................
Housing for special 994 1,024 1,024 774 847 885
populations............
Department of Labor:
Employment and Training
Administration:
State unemployment 4 4 ............ ........... 8 ............
insurance and
employment service
operations.............
Unemployment trust fund. 2,439 2,793 2,734 2,364 2,793 2,734
Federal Emergency Management
Agency:
Emergency food and shelter 140 140 ............ 140 140 ............
program..................
---------------------------------------------------------------------------------
Total, discretionary \1\ 31,898 34,541 35,861 31,880 34,279 34,982
=================================================================================
Mandatory:
Department of Agriculture:
Agricultural Marketing
Service:
Funds for strengthening 717 888 640 776 696 640
markets, income, and
supply (section 32)....
Food and Nutrition
Service:
Food stamp program...... 3,874 3,899 3,698 3,664 3,833 3,900
Child nutrition programs 9,466 9,932 10,407 9,409 10,167 10,665
Department of Health and
Human Services:
Administration for
Children and Families:
Payments to States for 3,517 3,908 3,978 3,706 4,018 4,074
child support
enforcement and family
support programs.......
Contingency fund........ ........... ............ 2,000 ........... ............ 45
[[Page 252]]
Payments to States for 6,401 6,622 6,609 5,710 6,098 6,422
foster care and
adoption assistance....
Child care entitlement 2,565 2,710 2,710 2,336 2,529 2,730
to States..............
Temporary assistance for 16,689 16,689 17,008 18,583 18,334 19,354
needy families.........
---------------------------------------------------------------------------------
Total, mandatory........ 43,229 44,648 47,050 44,184 45,675 47,830
---------------------------------------------------------------------------------
Total, income security 75,127 79,189 82,911 76,064 79,954 82,812
\1\..................
=================================================================================
SOCIAL SECURITY
Discretionary:
Social Security
Administration:
Federal disability 4 14 16 ........... 11 15
insurance trust fund.....
---------------------------------------------------------------------------------
Total, discretionary.... 4 14 16 ........... 11 15
---------------------------------------------------------------------------------
Total, social security 4 14 16 ........... 11 15
=================================================================================
VETERANS BENEFITS AND SERVICES
Discretionary:
Department of Veterans
Affairs:
Veterans Health
Administration:
Medical care............ 328 367 406 328 367 406
Construction:
Grants for construction 100 100 100 60 91 95
of State extended care
facilities.............
Grants for the 25 25 32 17 21 25
construction of State
veterans cemeteries....
---------------------------------------------------------------------------------
Total, discretionary.... 453 492 538 405 479 526
---------------------------------------------------------------------------------
Total, veterans 453 492 538 405 479 526
benefits and services
=================================================================================
ADMINISTRATION OF JUSTICE
Discretionary:
Department of Health and
Human Services:
Administration for
Children and Families:
Violent crime reduction ........... ............ ............ 84 25 4
programs...............
Department of Housing and
Urban Development:
Fair Housing and Equal
Opportunity:
Fair housing activities. 46 46 46 39 37 46
Department of Justice:
Office of Justice
Programs:
Justice assistance \1\.. 580 1,025 443 290 643 1,041
State and local law 2,907 2,636 1,537 585 1,706 3,906
enforcement assistance
\1\....................
Juvenile justice 300 318 263 263 230 423
programs...............
Community oriented 1,040 1,051 1,382 1,356 1,057 1,015
policing services......
Violent crime reduction ........... ............ ............ 3,092 ............ ............
programs, State and
local law enforcement
assistance.............
Executive Office of the
President:
Emergency response fund 710 ............ ............ ........... ............ ............
(primarily mass transit)
\1\......................
Equal Employment Opportunity
Commission:
Salaries and expenses..... 30 30 30 30 30 30
Federal Drug Control
Programs:
High-intensity drug 171 226 206 136 182 218
trafficking areas program
\1\......................
State Justice Institute:
State Justice Institute: 7 3 ............ 7 2 ............
salaries and expenses....
---------------------------------------------------------------------------------
Total, discretionary \1\ 5,791 5,335 3,907 5,882 3,912 6,683
=================================================================================
Mandatory:
Department of Justice:
Legal Activities and U.S.
Marshals:
Assets forfeiture fund.. 228 203 215 200 214 190
Office of Justice
Programs:
Crime victims fund...... 484 558 592 437 450 668
Department of the Treasury:
Departmental Offices:
Treasury forfeiture fund 94 88 88 94 88 88
---------------------------------------------------------------------------------
[[Page 253]]
Total, mandatory........ 806 849 895 731 752 946
---------------------------------------------------------------------------------
Total, administration 6,597 6,184 4,802 6,613 4,664 7,629
of justice \1\.......
=================================================================================
GENERAL GOVERNMENT
Discretionary:
Department of the Interior:
Bureau of Land Management:
Payments in lieu of 199 210 165 197 210 165
taxes..................
Insular Affairs:
Trust Territory of the ........... ............ ............ 1 2 2
Pacific Islands........
Department of Labor:
Employment and Training
Administration:
Workers compensation ........... 175 ............ ........... 140 35
programs...............
Department of the Treasury:
Internal Revenue Service:
Processing, assistance, 10 11 11 10 11 11
and management.........
District of Columbia:
District of Columbia
Courts:
Federal payment to the 105 112 159 95 112 154
District of Columbia
courts.................
Defender services in 34 34 32 28 34 32
District of Columbia
courts.................
Crime victims 18 ............ ............ ........... 18 ............
compensation fund......
Federal payment for ........... 24 ............ ........... 21 3
family court act.......
District of Columbia
Corrections:
Payment to the District 134 30 ............ 144 69 ............
of Columbia corrections
trustee, operations....
District of Columbia
General and Special
Payments:
Federal support for 49 31 1 22 56 1
economic development
and management reforms
in the District........
Federal payment for ........... 216 15 ........... 216 15
emergency planning and
security cost in the
District of Columbia
\1\....................
---------------------------------------------------------------------------------
Total, discretionary \1\ 549 843 383 497 889 418
=================================================================================
Mandatory:
Department of Agriculture:
Forest Service:
Forest Service permanent 322 393 398 200 393 398
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 13 114 115 9 108 115
payment accounts.......
Minerals Management
Service:
Mineral leasing and 1,045 666 670 1,045 666 670
associated payments....
United States Fish and
Wildlife Service:
National wildlife refuge 17 21 21 18 21 21
fund...................
Insular Affairs:
Assistance to 78 79 70 87 71 78
territories............
Payments to the United 106 106 106 105 106 106
States territories,
fiscal assistance......
Department of the Treasury:
Bureau of Alcohol, Tobacco
and Firearms:
Internal revenue 334 246 235 334 246 235
collections for Puerto
Rico...................
United States Customs
Service:
Refunds, transfers, and 90 105 107 90 105 107
expenses of operation,
Puerto Rico............
Corps of Engineers--Civil
Works:
Permanent appropriations.. ........... 8 8 ........... 8 8
---------------------------------------------------------------------------------
Total, mandatory........ 2,008 1,741 1,733 1,891 1,727 1,741
---------------------------------------------------------------------------------
Total, general 2,557 2,584 2,116 2,388 2,616 2,159
government \1\.......
=================================================================================
Total, Grants....... 334,697 363,653 375,392 317,250 346,462 376,419
Discretionary..... 112,009 124,735 122,410 131,067 143,651 155,427
Mandatory......... 222,688 238,918 252,982 186,183 202,811 220,992
----------------------------------------------------------------------------------------------------------------
\1\ Includes funding for the Emergency Response Fund enacted in response to the events of September 11, 2001.
For additional information on this funding, see the 2003 Budget volume.