In fiscal year 1982, Congress accepted President Reagan's proposals to cut federal aid to state and local governments and increase the role of state governments in the administration of federal aid. In field research conducted at Princeton University the extent to which state and local governments replaced lost federal aid with their own revenues or found other ways to continue services previously funded by federal aid was examined. The overall impact of the changes on American federalism was also addressed in the research.
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STAA, 1982, Surface Transportation Assistance Act, Public Law 97-424 United States Statutes at Large volume 96, pages 2097–2200 (US Government Printing Office, Washington, DC)