ABSTRACT
In our constitutional framework state and local governments provide extensive direct services to the public. It is the state or local governments, for example, that provide public education, roads, public safety, health services, and environmental protection. However, in many instances, the federal government provides some level of financial support in the form of grants, loans, and tax subsidies to assist states and local governments (see also Nathan, chapter 9 of this volume, on federalism). Because of the magnitude of these grants and loans the federal government bears some responsibility for ensuring that taxpayer-supported grant programs achieve their intended results.
