ABSTRACT
President Ronald Reagan has made federalism a central concern in his administration. He speaks frequently of his deep commitment to revitalizing the federal system and of his desire to return government responsibilities to states and localities. In measuring the true depth of Reagan's commitment to strengthening federalism, however, it is instructive to examine his administration's record on those occasions when the goal of rebalancing federalism, as the president defines it, conflicts with other deeply held values. Domestic program budget cuts have long been an intergral part of President Reagan's approach to federalism because they help to reduce the relative fiscal profile of the federal government while encouraging greater financial independence among state and local governments. All federal programs are not identical in their effects, however, and an intergovernmentally sensitive program of budget cuts could be expected to affect certain federal grants far more than others. Historically, manufacturers' liability for injuries resulting from defective products has been governed by state laws.
