1. Urban Politics Federal Urban Policy IV

2. Overview Recap Tools of Federal Urban Policy Early Efforts (New Deal to Great Society) Contemporary Efforts

3. 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

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

5. 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

6. 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

7. Tools of Federal Urban Policy Examples: Airports Highways Emergency Equipment

8. 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

9. 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)Manpower Development and Training Act Authorized a three-year program aimed at retraining workers displaced by new technology. –Model Cities Program Demonstration Cities and Metropolitan Development Act of 1966

10. 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

11. 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

12. Tools of Federal Urban Policy Examples in Hudson County HousingHousing and community developmentcommunity development Brownfield Reclamation Recreation

13. 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

14. 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

15. 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)

16. Tools of Federal Urban Policy

17. 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

18. Tools of Federal Urban Policy Crossover Sanctions: Federal Fiscal sanctions in one program or activity are used to influence state/local policy in another

19. 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

20. 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

21. 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

22. 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

23. 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