Through a Glass Darkly: On the Need for Greater Transparency Regarding Federal Funds Going Directly to Texas Local Governments

Federal funds that go directly to Texas’ political subdivisions affect the Texas economy as a whole. But regulation of Texas’ economy is, under the U.S. Constitution, a power that belongs to the state government, not the federal government. The Texas state government needs to take a full reckoning of federal grants sent directly to local governments, because these funds are never “free”—they come with federal requirements that build spending requirements into the system.