Cutting Spending to Revive Federalism | Chris Edwards | Cato Institute: Commentary

Cutting Spending to Revive Federalism Chris Edwards Cato Institute: Commentary

House Republicans have promised major spending reforms, but GOP leaders are tongue-tied when they are asked which specific programs they want to cut. The GOP wants to cut domestic spending to 2008 levels, but that's just an accounting goal.
The GOP needs a larger vision to guide their reforms. Republicans need to communicate to the public how a smaller government would benefit America and what federal agencies and activities are damaging and counterproductive.

A key part of this strategy should be to revive a central theme of the 1981 and 1995 budget-cutting drives — getting the federal government out of what are properly state and local activities. Constitutional federalism has taken a beating as federal aid to the states has doubled over the last decade to $646 billion this year. This aid goes to public housing, community development, urban transit, and hundreds of other local activities.