Tad DeHaven

The bottom line is that it is not a proper role of the federal government to fund local infrastructure projects for the benefit of a business. The bureaucratic inefficiency alone of laundering money through three levels of government (from federal to state to local) is reason enough to terminate the Community Development Block Grant program. Unfortunately, the CDBG program creates a win-win situation for politicians at all levels, which means that taxpayers are going to keep losing unless enough voters come to realize that robbing Peter to pay Paul’s company isn’t good economics.

See this Cato essay for more on fiscal federalism and this essay for more on the community development subsidies.

Tad DeHaven

Tad DeHaven is a budget analyst at the Cato Institute. Previously he was a deputy director of the Indiana Office of Management and Budget. DeHaven also worked as a budget policy advisor to Senators Jeff Sessions (R-AL) and Tom Coburn (R-OK).

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