Urban Politics

Federal Urban Policy IV

Overview

• Recap

• Tools of Federal Urban Policy

• Early Efforts (New Deal to Great Society)

• Contemporary Efforts

Recap

• While we have HUD, numerous federal agencies have potential to impact urban government– Urban interests dispersed throughout the

bureaucracy

• Urban issues not center of congressional committee system– Urban interests dispersed throughout the

legislature

Recap

• Keep in mind underlying anti-urban bias– class/race/immigrant– partisan– rural overrepresentation

Tools of Federal Urban Policy

• Federal Government primarily uses its financial leverage to shape and influence urban government

• Variety of financial tools developed and deployed over the years

Tools of Federal Urban Policy

• Categorical Grants– Aid programs where Congress designates a

specific purpose for the grant– Much regulation and/or “red tape” – Frequently includes “matching fund” provision– Lots of competition

Tools of Federal Urban PolicyExamples:

Airports

Highways

Emergency Equipment

Tools of Federal Urban Policy

• National Purpose Grants– Rather than providing specific aid, grants meant

to fulfill broad national goals– Funds distributed to various federal agencies

for general purposes– Apply to agency, but aim and use of the funds

are more general that with the Categorical Grants

Tools of Federal Urban Policy

• Examples– Area Redevelopment Act (1961)

• The Authorized $4.5 million annually over four years for vocational training programs.

– Manpower Development and Training Act (1962)• Authorized a three-year program aimed at retraining workers

displaced by new technology.

– Model Cities Program • Demonstration Cities and Metropolitan Development Act of

1966

Tools of Federal Urban Policy

• Revenue Sharing– Federal government disperses tax receipts

directly to state and in some cases local government authorities

– Funds could be used for any purposes– Limited impact/control of federal regulators– Program lasted from 1972 to 1987

Tools of Federal Urban Policy

• Block Grants– General funds available for community

development, employment, or education– Targeted for some purposes, but not as narrow

as the categorical grant program

Tools of Federal Urban Policy

• Examples in Hudson CountyHousing and community development

Brownfield Reclamation

Recreation

Tools of Federal Urban Policy

• Loan Supports– Lending money to various individuals and

groups– Federal government assumes risk of default, so

allows lenders to lend money to individuals/groups otherwise shut out of private lending market

– FHA, VA

Tools of Federal Urban Policy

• Tax System– Provisions in the tax code impact urban areas

• e.g., mortgage deductions, property tax deductions

• industrial development

• SUVs

Tools of Federal Urban Policy

• Mandates– Require state and municipal government to

comply with specific federal regulations, rules, and procedures

– Direct Orders: legislative commands that must be complied with under threat of prosecution

• Equal Employment Act (1972)• Marine Protection and Sanctuaries Act (1972)

Tools of Federal Urban Policy

Tools of Federal Urban Policy

• Crosscutting Requirements: Rules applicable for one program/goal apply to other programs/grants (e.g., Civil Rights Act of 1964)– In exchange for funds, states/municipalities

agree to the restrictions

Tools of Federal Urban Policy

• Crossover Sanctions: Federal Fiscal sanctions in one program or activity are used to influence state/local policy in another

Tools of Federal Urban Policy

• Highway Beautification Act (1965) allows Dept of Trans to withhold up to 10% of highway construction funds if states do not comply with billboard control requirements

Tools of Federal Urban Policy

• Partial Preemptions: permit the federal government to take over a function of state or local government if the goals of the legislation are unmet

Tools of Federal Urban Policy

• Clear Air Act (1972) sets air quality standards that states are expected to meet

• States/municipalities that fail to do so face EPA imposed standards

Tools of Federal Urban Policy

• Location Effects– Where the federal government chooses to locate

facilities impacts urban development– e.g., transfer of military/defense spending south

and west • 1950 - 1976, defense industry employment rose

35% in “Sun Belt” states, declines 3% in “Frost Belt” states of the northeast

Tools of Federal Urban Policy

• Devolution– Transfer of program from fderal government to

the states• some federal oversight

• some goals that must be met

• latitude of state experimentation

– Example: Personal Responsibility and Work Opportunity Reconciliation Act of 1996