Hoover Institution

11/25/2024 | Press release | Distributed by Public on 11/24/2024 20:52

The Budgetary Impact of the Abandonment of Federalism

In most high school and college courses on American government, students are taught that the federal powers are limited and that there is a sharp division between federal and state government responsibilities. When it comes to federal spending, nothing could be further from the truth. No state or local activity is beyond the reach of the federal government's check-writing machine. The original limitations on the scope of federal spending power no longer exist. Indeed, the breadth of federal spending is so large that it is hard to think of a state or local government activity that isn't also financed by the federal government.