US Presidency
1982

This will make welfare less costly and more responsive to genuine need, because it'll be designed and administered closer to the grass roots and the people it serves. In 1984 the Federal Government will apply the full proceeds from certain excise taxes to a grass roots trust fund that will belong in fair shares to the 50 States. The total amount flowing into this fund will be $ 28 billion a year. Over the next 4 years the States can use this money in either of two ways. If they want to continue receiving Federal grants in such areas as transportation, education, and social services, they can use their trust fund money to pay for the grants. Or to the extent they choose to forgo the Federal grant programs, they can use their trust fund money on their own for those or other purposes. There will be a mandatory pass through of part of these funds to local governments. By 1988 the States will be in complete control of over 40 Federal grant programs.