Abstract

One government social service program that has been affected by the recent shift in political philosophy is the Urban Development Action Grant program (UDAG). Operated since 1977 by the Department of Housing and Urban Development (HUD), UDAG is intended to facilitate the creation of new employment opportunities in economically distressed areas. Awarded by the federal government to local public officials, UDAG funds are allocated to encourage private investment for industrial growth and expansion. These financial incentives, it is argued, serve as a catalyst for new employment opportunities created to assist the poor and the unemployed. In the context of a cost‐benefit analysis, however, the UDAG program may be an example of fiscal extravagance and administrative malfeasance. Three UDAG case studies reported offer a sample of federally subsidized UDAG industrial projects. Discussion of these projects is intended as a partial analysis of the UDAG program. Other issues addressed include the role of federal o...

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