Twenty years ago cooperative federalism, in the form of federal grant-in-aid programs administered by state and local governments, was applauded almost without reservation as the best means of helping the handicapped, the educationally disadvantaged, the poor, and other groups with special needs. More recently these same programs have been criticized for excessive regulations and red tape, bureaucratic ineptitude, and high cost. The criticisms have been used to justify efforts to curb federal domestic spending and terminate many grants-in-aid. In When Federalism Works, Paul E. Peterson, Barry G. Rabe, and Kenneth K. Wong examine the new conventional wisdom about federal grants. Through documentary research and hundreds of interviews with local, state, and federal administrators and elected officials, they consider the implementation and operation of federal programs for education, health care, and housing in four urban areas to learn which programs worked, when, and why. Why did rent subsidy programs encounter seemingly endless difficulties, while special education was a notable success? Why did compensatory education fare better in Milwaukee than in Baltimore? Among the factors the authors find significant are the extent to which a program is directed toward groups in need, the political and economic circumstances of the area in which it is implemented, and the degree of professionalism among those who administer it at all levels of government. When Federalism Works provides a solid introduction to the most important grant-in-aid programs of the past twenty years and a thoughtful assessment of where they might be going.

Why federalism is pulling America apart—and how the system can be reformed Federalism was James Madison's great invention. An innovative system of power sharing that balanced national and state interests, federalism was the pragmatic compromise that brought the colonies together to form the United States. Yet, even beyond the question of slavery, inequality was built into the system because federalism by its very nature meant that many aspects of an American's life depended on where they lived. Over time, these inequalities have created vast divisions between the states and made federalism fundamentally unstable. In The Divided States of America, Donald Kettl chronicles the history of a political system that once united the nation—and now threatens to break it apart. Exploring the full sweep of federalism from the founding to today, Kettl focuses on pivotal moments when power has shifted between state and national governments—from the violent rebalancing of the Civil War, when the nation almost split in two, to the era of civil rights a century later, when there was apparent agreement that inequality was a threat to liberty and the federal government should set policies for states to enact. Despite this consensus, inequality between states has only deepened since that moment. From health care and infrastructure to education and the environment, the quality of public services is ever more uneven. Having revealed the shortcomings of Madison's marvel, Kettl points to possible solutions in the writings of another founder: Alexander Hamilton. Making an urgent case for reforming federalism, The Divided States of America shows why we must—and how we can—address the crisis of American inequality.

In When Federalism Works, Paul E. Peterson, Barry G. Rabe, and Kenneth K. Wong examine the new conventional wisdom about federal grants.