Downsizing Blog
Food Stamp Use Soars and Stigma Fades
California Shows Need to Revive Federalism
Justice Grants and Federalism
Federal Assumption of Medicaid Costs
From the standpoint of Americans who prefer less government, one of the worst developments of the 20th century was the federal subsidization of state and local spending. The result has been bigger government at all levels. Medicaid represents the largest portion of federal money to the states. The states administer their own Medicaid programs, but the federal government picks up 50 to 83 percent of the tab depending on a state’s income. The estimated price tag of the federal share for fiscal year 2009 is $260 billion.
Neutering the Spenders
The Washington Examiner reports on projects funded by the economic stimulus package passed earlier this year that most taxpayers will find either dubious or objectionable.
D.C. Squanders Federal AIDs Money
The Washington Post has delivered an exposé on the rampant corruption and waste occurring in the District of Columbia’s HIV/AIDs Administration. According to the Post, “the agency receives about $100 million a year, largely from the federal government, for prevention, medical care, housing, case management and support services.”
States Increase Lobbying
When the economy was growing, state and local governments spent money as if the good times would never end. But in the face of stagnant revenues, state and local governments are now spending record amounts of taxpayer money lobbying the federal government for a larger piece of Uncle Sam’s deficit-fueled budget.
Injustice of Federal Subsidies
Ohio lawmakers are hot under the collar about federal stimulus dollars possibly helping Georgia bid away one of its big employers. Here’s the Dayton Daily News:
NCR’s news release touting its decision to move jobs from Dayton to the Atlanta, Ga. suburbs includes one factoid that has Ohio lawmakers in a fury: The City of Columbus, Ga. plans to use federal stimulus dollars to buy a building and construct another to accommodate the 870 manufacturing jobs expected to come to the that Atlanta suburb. ‘The fact that economic stimulus dollars were used to move an Ohio company to Georgia at taxpayer expense is an outrage,’ said state Sen. Jon Husted.
Added U.S. Rep. Pat Tiberi, R-Columbus: “Federal stimulus money is being used to create winners and losers among workers in different states and that’s just not right; it’s dirty.”
All I can say to both parties is that’s what you get for building an imperial city on the Potomac and spending the last few decades destroying the constitutional principle of federalism. As I’ve described in this study, regional warfare over federal subsidies has escalated in recent years. It’s horribly wasteful, and it’s getting worse.
Endless Earmarks
One sure way to create an uprising against big government would be to sign up every American voter to Senator Tom Coburn’s daily email reports on pork spending. I should take news about pork in stride, but I can’t help myself. I get disgusted every time I read the Coburn blasts.
Today’s item that turned my stomach was from the Waterbury Republican American (Connecticut):
Independence in 1776 to Dependence on 1776
I recently updated data I presented last year on the total number of federal subsidy programs.
It turns out that the federal government currently operates 1,776 subsidy programs. These include subsidies for states, cities, individuals, non-profit groups, and businesses.
As the chart shows, the number of subsidy programs has increased 25 percent since 2000.

George W. Bush: He’s no Thomas Jefferson.