American Government › Section C · Federalism › Topic C.3

Intergovernmental relations and grants

Washington rarely runs schools, hospitals or highways itself. Instead it pays and pressures states to do so, through grants that act as carrots and mandates that act as sticks. Following the money is the quickest way to see how federalism works today.

In this topic

  • Carrots and sticks
  • From land to cash
  • Categorical grants
  • Block grants and revenue sharing
  • TANF: an entitlement becomes a block grant
  • Worked example: choosing a grant design
  • Strings attached: South Dakota v. Dole
  • Where pressure becomes coercion
  • Worked example: testing a condition
  • Unfunded mandates
  • Common mistakes to avoid
  • Key takeaways

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