The conditional spending power or the ability of Congress and the executive
to attach conditions to grants in aid and entitlement programs, has become
a vital source of authority to monitor and regulate the activites of both
the states and individual citizens. If there were meaningful political or l
egal limits upon the conditional spending power, it would be no more proble
matic than any of the other policy mechanisms available for achieving Feder
al ends, but such limits presently do not exist. As a consequence, conditio
nal aid may function to promote state sovereignty and the rights of citizen
ship, but it also may serve to undermine them. Contrary to recent developme
nts ostensibly limiting the reach of Federal regulatory authority, arguably
coercive and even unconstitutional applications of conditional aid are sup
ported and encouraged by both the federal judiciary and contemporary politi
cs. This article explains how and why this is the case, and assesses prospe
cts for reform.