Importance of local initiative in targeting of federal aid: The case of UDAGs

Much of the literature on targeting of federal grants to the most needy local governments concentrates on the explanations of population and need. The author proposes that a third explanation, the aggressiveness and competence of city staffs, should receive attention from scholars also. The last major categorical grant program aimed at distressed urban areas, the Urban Development Action Grant program, is examined to find evidence of differences in the rates of submitting applications and successfully receiving funding among the eligible large cities. In a competitive grants program, federal targeting success will be limited because it is dependent on the the initiative and capability of local officials to apply.