© 1996 by CSF Associates Inc.
Deficits and Devolution in the 104th Congress
The Brookings Institution
Deficit reduction was an important impetus for the devolution initiatives thai moved through the 104th Congress, but it was not the only cause. Other objectives, notably building an alliance with Republican governors and transforming the American welfare state, also helped to drive devolution. Although the Republican deficit and devolution agendas appeared mutually reinforcing at first, arguments over the terms of devolution (e.g., entitlement status, program mandates, and funding formulas) helped to slow down and build opposition to those agendas. The use of omnibus legislation helped to gel Republican proposals through the Congress in 1995, but packaging together popular and highly unpopular provisions in a single bill ultimately provided President Bill Clinton with political cover to veto the legislation. The unpopularity of Aid to Families with Dependent Children (AFDC) and Clinton's pledge to "end welfare as we know it" propelled a more limited devolution agenda focused on AFDC in the lead-up to the 1996 presidential election. Devolution ofMedicaid was dropped, however, while Food Stamps and child nutrition programs experienced budget cuts but little devolution.