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Updated: May 21, 2025
During my Administration, total grants-in-aid to State and local governments have increased by more than 40 percent, from $68 billion in Fiscal Year 1977 to $96 billion in Fiscal Year 1981. This significant increase in aid has allowed States and localities to maintain services that are essential to their citizens without imposing onerous tax burdens.
Above all, I think we must work together and find ways in which the multitudes of small jurisdictions can be brought together more efficiently. During the past 3 years we have returned to State and local governments about $40 billion in grants-in-aid. This year alone, 70 percent of our Federal expenditures for domestic programs will be distributed through the State and local governments.
The details of a program to enlarge and improve the opportunities for our people to acquire good homes will be presented to the Congress by special message on January 25. This program will include: Modernization of the home mortgage insurance program of the Federal Government; Redirection of the present system of loans and grants-in-aid to cities for slum clearance and redevelopment;
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