Federalism: How Much Do We Need Federal Money?

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Running head: FEDERALISM

Federalism in the Modern Era:
How Much Do We Need Federal Money?
Danielle Diel

Recently there has been a lot of focus on the federal government’s involvement in aid for local economies and public service projects. It is no secret that the United States is currently suffering from the greatest economic downturn since the great depression in the 1930’s and there is a lot of pressure for the government to step in and help the American people. American federalism is indeed very complex and has many different facets and roles that are played. Today I’ll take a look at three articles that deal with federal aid programs and how they affect different communities.

The first article is from The Oakland Tribune out of Oakland, California, it is regarding federal budget cuts and how those living in poverty in The Bay Area have been affected by them. Although the federal government spends more money in California than in any other state, recent budget cuts to federal block grant money has had a huge impact on community outreach programs. These programs are designed to help low income people escape poverty and become self-sufficient, and without them thousands may be left behind. Oakland received more than $9 million in grant money for 2010 – 2011, but that still leaves almost $1.5 million that will have to be cut from community services for low income individuals, the homeless, and those struggling to rebuild a life after serving prison terms. Over all the article highlights how important government funds are to communities and how much they rely on the money to help those in need.

The second article, from Business Week, discusses Oklahoma Senator Brian Bingham’s decision to reject $54 million in federal funding to help establish a state health care exchange in the state. The state, in hopes that the new healthcare bill will be deemed unconstitutional, plans to put together a private exchange that’s separate from the proposed plan by...
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