Urban Response to Federal Program Flexibility

Abstract

Categorical programs, considered the backbone of "creative federalism" in the 1960s, are no longer in vogue in the 1980s. The increasing prominence of block grants in our federal grant system merits a closer look at the likely policy consequences following program consolidation. Our longitudinal study of the Community Development Block Grant in two large cities suggests that the increased level of local discretion resulted in less emphasis on the redistributive needs of low-income residents. Moreover, decisions with respect to the block grant inevitably become part of the local political process, and in these two cities, were influenced by mayoral preferences.