The End of Federalism: Big Labor Edition

Conn Carroll / May 11, 2009

Last week we noted that the Obama administration’s stimulus package had made the federal government, for the first time in our nation’s history, the main source of income for state and local governments. We warned at the time:

[A]s states become more dependent on federal funding, they begin to lose their ability to set priorities and make policy decisions that are best-suited to their specific needs.

This Friday the Obama administration made that fear a reality when they threatened to rescind billions of dollars in federal stimulus money from California unless the state reversed their decision to lower home health care worker salaries from $12.10 to $10.10. (more…)