Abstract
The effects of New Federalism on Local Government in the USA. New Federalism was high on President Reagan’s list of priorities. This vast project was to restructure relations between Federal and State governments in order to return to the institutional balance the Founding Fathers had intended. Despite a difficult start, New Federalism did have significant impact on State and local governments. It catalyzed the creation of a new form of local political life that operates in favour of State government to the detriment of local authority. Athough the institutional model has been generally adopted, New Federalism has in fact turned ‘grass roots’ politics upside down.
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