How Government Block Grants Shift Risk to States

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How Government Block Grants Shift Risk to States

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In this episode of Government Spending with Fexingo, Lucas and Luna explore how block grants have become a quiet but powerful tool for federal cost-shifting. Using the social services block grant as a case study—its funding has been cut by 40% in real terms since 2000 while states absorb rising demand—they unpack the fiscal logic behind this shift. Lucas explains the original 1980s rationale, the tension between flexibility and accountability, and the hidden burden state budgets carry when federal funding grows slower than inflation. Luna questions whether the data on outcomes is even measurable. The episode ends with a look at how Washington's grant strategy forces hard tradeoffs in state legislatures, with no perfect answer. #BlockGrants #SocialServicesBlockGrant #Federalism #StateBudgets #FiscalPolicy #GovernmentSpending #Economics #PolicyTransfer #CostShifting #WelfareReform #ReaganEra #FederalFunding #StateFiscalStress #BudgetTradeoffs #OutcomeMeasurement #FexingoBusiness #BusinessPodcast #PublicFinance Keep every episode free: buymeacoffee.com/fexingo

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