Injecting federalism to address federal debt

To address America's fiscal problems and reduce federal debt, one solution proposed by Chris Edwards from Cato is to transfer a significant amount of federal spending to the state level. The federal government currently provides over a trillion dollars annually for state and local programs such as education and welfare, even though these activities are best handled locally. Edwards suggests phasing out federal subsidies for state and local programs, like K-12 education and housing, and allowing states to handle them. This would force state politicians to make trade-offs between funding these programs and raising taxes, mirroring the fiscal control measures in place at the state level.