Introduction: In recent decades, the United States has seen a trend toward increasing federalization of the financing of government programs, even as states continue to control the administration of those programs. This can be seen in the most basic fact that federal spending as a share of total government spending has increased from 65 percent to 71 percent between 1993 and 2021 (see figure 10.1). In keeping with the theory of cyclical ratcheting, which states that spending increases during recessions and remains high during the expansions that follow (Hercowitz and Strawczynski 2004), central government spending has accelerated during major crises such as the global financial crisis of 2008 and the COVID-19 pandemic and has not returned to pre-recession levels in the years that followed.