Federal Seed Money: More Careful Selection and Application Needed

The Federal Government uses seed money programs to help State and local governments initiate projects and services that they might not provide on their own. The projects are started with the presumption that Federal funding can end and be replaced with State, local, and other funding sources to continue the projects. In fiscal year 1977 such programs accounted for about $2 billion in Federal assistance and funded emergency medical services, community mental health centers (CMHC), vocational rehabilitation training services, urban rat control, alcoholism and drug abuse rehabilitation, rural health initiatives, rural public transportation, childhood lead-based paint poisoning prevention, law enforcement, and boating safety programs. The process of selecting programs to receive Federal seed money could not be clearly identified and the programs appear to have started somewhat randomly. The Congress has chosen this approach for some programs, and Federal executive agencies have applied it by administrative action for others.