Federal Grants: Design Improvements Could Help Federal Resources Go Further

AIMD-97-7 Published: Dec 18, 1996. Publicly Released: Dec 18, 1996.
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Pursuant to a congressional request, GAO examined the federal grant-in-aid system from the perspective of fiscal impact, focusing on the extent to which the federal grant system succeeds in: (1) encouraging states to use federal dollars to supplement rather than replace their own spending on nationally important activities; and (2) targeting grant funding to states with relatively greater programmatic needs and fewer fiscal resources.

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