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GGD-81-41 1 (1980-12-31)

handle is hein.gao/gaobabbkn0001 and id is 1 raw text is: -q


               UNITED) STATES GENERAL ACCOUNTING OFFICE
                      WASHINGTON, D.C. 20548


 DIVISION                                        111111
 B-201644                                            114115


                                           DECEMBER 31, 1980


The Honorable Henry L. Bellmon
The Honorable Pete V. Domenici
United States Senate

     Subject: Lssessment of whether the Federal grant
               process is beizg politicized during
               election yea   (GGD-81-41)

     In your September 15, 1980, letter, you requested that
we study the possible politicization of the Federal grant
award process in election years. As arranged during our
November 14, 1980, briefing of Senator Domenici's office,
we are providing a summary of the results of our work.

     As the recent national election shows, assertions are
sometimes made that Federal grants are awarded to achieve
political purposes. While our work was by no means suffi-
ciently comprehensive to resolve this issue, the limited
amount of work we did seemed to dispel any notion that such
politicization is of a magnitude to be reflected in gross
award patterns in election versus nonelection years.

    ,Without question, political factors influence the dis-
tribution of grant funds. It is the political process itself
that determines the extent to which factors such as population
and income or other indicators of need are important in the
distribution of program funds. The Congress usually specifies
the rules under which the executive branch operates these pro-
grams. Such specifications widen or narrow applicant eligi-
bility, suggest or mandate criteria for awarding discretionary
grants, or establish a formula to distribute funds.

     A major structural distinction between types of grant
programs is the criteria for fund distribution--formula or
discretionary. In formula programs, which represent the ma-
jority of Federal assistance dollars, the Congress generally

                                                     (017701)

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