2001 Fiscal Year Final Research Report Summary
Research into Reforms of Grants -in aid System in Nixon, Reagan and Clinton Administrations
| Project/Area Number |
11630100
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Public finance/Monetary economics
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| Research Institution | TOKYO KEIZAI UNIVERSITY |
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Principal Investigator |
OKAMOTO Hideo TOKYO KERIZAI UNIVERSITY, Department of Economics, Professor, 経済学部, 教授 (40133920)
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| Project Period (FY) |
1999 – 2001
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| Keywords | New Federalism / Great Society / Federal Grants / Consolidation of Categorical Grants / AFDC / General Revenue Sharing / Welfare State System / TANF |
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| Research Abstract |
We witnessed drastic reforms and restructurings of federal grants systems to state and local governments from 1970' to today. First important reform was creation of General Revenue Sharing system in Nixon administration. Second important restructuring was drastic cuts of federal grants and consolidation of categorical grants in Reagan administration. Third important reform was welfare reform of 1996 in Clinton Administration. Three reforms and restructurings were epoch-making events in the developments of federal grants system in the United States. These events have occurred in relation to the transformation of American post-war political economy.
From the point of view, we can grasp the Great Society of 1960' as development of American welfare state system and Nixon's New Federalism as reconsideration of welfare sate system of 1960'. However, we should grasp 1972 General Revenue Sharing as a progress of welfare sate system rather than a retreat. In contrast to that, Reagan's policy tow
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ard federal grants-in aid system means a frontal attack to the welfare state system. In fact, Reagan succeeded in cutting federal grants drastically and consolidating many categorical grants into block grants by Omnibus Budget Reconciliation Act of 1981. But, his long-cherished dream of bold cutting of welfare programs and federal grants has not come true after that.
The personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996 was drastic reform of welfare program. It abolished the AFDC program and replaced by a block grant to the states called temporary assistance to needy families (TANE). Individual entitlement to family assistance benefits was ended. The statute puts a five-year limit on adults' receipt of cash assistance using TANE funds and is generally severe in treatment of single mother families.
As a result of these grants system reforms, problems of inner city districts and poor people in large cities have been more serious and it may be bigger problems to American society in the future. Less
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