The Constitution, according to Greve, envisions a different kind of federalism: a “competitive federalism” that allows state to compete for citizens by each offering their own mix of taxes and government services.
This is exactly what President Reagan tried to accomplish in his 1982 State of the Union address when he proposed a deal for Democrats: Let the federal government take over Medicaid, cutting the states out of the program entirely, but eliminate all federal K-12 programs in return.
While states would have lost some control over health care, they would have become completely free of federal K-12 regulatory burdens. And voters would then know who to blame if health care or education services came up short.
Democrats ultimately rejected Reagan’s offer, but Reagan is also the only president ever to decrease the size of federal grants to states during his presidency.
Join the Conversation
VIP members get the ability to comment on articles.