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Federal grant-in-aid programs provide essential funding to state and local governments for various projects, such as infrastructure, education, and healthcare, helping to address public needs and stimulate economic growth. However, they can also lead to dependency on federal funds, potentially undermining local autonomy and decision-making. Additionally, the application process can be complex and competitive, which may disadvantage smaller entities lacking the resources to navigate it effectively. Lastly, the requirements tied to funding can impose restrictions that limit how states and localities allocate resources.
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