Abstract

the grants for transportation and communication (mostly for highway construction), and for employment security (administration of unemployment compensation and the unemployment service), grew less rapidly than the total.1 Distribution of grants among the states altered in the decade, and the alteration was markedly in favor of the poorer states. Of the nineteen states which received an above-average increase in per capita federal grants 1941-52, all but two (Rhode Island and Missouri) were below average in per capita income 1949-51. The shift occurred because the greatest expansion was in welfare grants which naturally go to the poorer states and because the distribution formulas were altered so as to favor the poorer states. For example, grants for oldage assistance in 1941 could not exceed half a maximum payment of $40 monthly per recipient, whereas in 1951 the federal government

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