The federal government transfers considerable sums to local governments in the form of intergovernmental grants. With the exception of health and welfare programs, most intergovernmental grants to local governments are classified as discretionary spending. In its annual appropriations process, Congress decides how funding for discretionary spending will be broken up among the various agencies, but more detailed decisions about specific uses of funds are left to the executive branch.

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Research Paper

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Working Paper Number

Working Paper 12