ThinkTankWeekly

Trump Administration’s Proposed Changes to Federal Grants Highlight Problems of Big Government

CATO | 2026-08-07 | economy

Topics: United States

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English Summary

The article critiques the proposed overhaul of federal grantmaking, arguing that the fundamental problem lies in the sheer scale of spending ($1 trillion+) rather than merely political control. It details how these grants undermine state and local autonomy by creating unaccountable 'slush funds' and crowding out private sector initiatives. The author argues that this excessive centralization is detrimental to governance, imposing a massive economic burden through taxation and federal borrowing. Consequently, the policy implication is that reducing or eliminating many grant programs is necessary to restore local self-governance, curb federal overreach, and promote genuine national efficiency.

中文摘要

本文批判了對聯邦撥款機制進行的改革提案,主張其根本問題不在於政治控制,而在於支出規模本身(超過一萬億美元)。文章詳細闡述了這些補助金如何透過設立無法追蹤的「閒置資金」和造成擠出效應,從而削弱州和地方政府的自主權。作者認為,這種過度的中央集權對治理是有害的,不僅透過稅收徵收和聯邦借款帶來巨大的經濟負擔。因此,政策上的啟示是,必須減少或取消許多撥款計畫,才能恢復地方自治、遏制聯邦政府的越界行為,並促進真正的國家效率。

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