US Presidency
1982

The growth in these Federal programs has, in the words of one intergovernmental commission, made the Federal Government more pervasive, more intrusive, more unmanageable, more ineffective and costly, and above all, more [ un ] accountable. Let's solve this problem with a single, bold stroke: the return of some $ 47 billion in Federal programs to State and local government, together with the means to finance them and a transition period of nearly 10 years to avoid unnecessary disruption. I will shortly send this Congress a message describing this program. I want to emphasize, however, that its full details will have been worked out only after close consultation with congressional, State, and local officials. Starting in fiscal 1984, the Federal Government will assume full responsibility for the cost of the rapidly growing Medicaid program to go along with its existing responsibility for Medicare. As part of a financially equal swap, the States will simultaneously take full responsibility for Aid to Families with Dependent Children and food stamps.