The FERA was discontinued in 1935, with the Federal Government then embarking on what it regarded as a sounder method of assisting in the emergency relief problem. It established a federally admin istered and financed work program, the Works Progress Administra tion. At the same time, under the Social Security Act, it provided grants in aid to States for the care of the aged, blind, and children at home. The cessation of Federal grants to States for direct unemploy ment relief had an adverse effect particularly serious in poorer States. In some States, though some meagre provision for assistance was available, no relief was provided to employables for whom there was no place on WPA.
Social Security Act estab lished the principle of Federal assistance to States in special forms of relief. It provides grants-in-aid to States for old age assistance, aid to the blind and aid to dependent children, with requirements for State financial participation and certain standards in State plans as a condition for receiving Federal grants. Prior to the Social Security Act, there had been considerable development of these special forms of relief. In 1934, all except three States had mother's aid laws ; 28 States had laws providing assistance for the aged; and in 1935, 26 States had laws providing assistance to the blind. The Federal act stimulated greatly the enactment of more such laws, and revision of existing laws. In 2939 all but a very few States had legislative pro vision for all of these types of assistance.
in need are cared for chiefly in three ways: general home relief, special types of assistance, work relief. General home relief cares for those not eligible for the special types of assistance or for WPA, and for those eligible for but not receiving these forms of aid. Established need and settle ment are the usual prerequisites for receiving general home relief. Certain additional qualifications are necessary for the special types of assistance. WPA takes care of the major number of employable unem ployed who are certified as to need by relief agencies in the majority of States, but occasionally by WPA itself. In addition, hospital care, institutional care and care of children away from their own homes are provided, though these types of care are overshadowed by the magnitude of the outdoor relief programs.
Relief.--The Federal Govern ment directly administers WPA and establishes the standards for the special types of assistance which States must meet to receive Federal aid. The State governments either administer or supervise the local administration of the special types of assistance. About two-thirds of
the States also have either administrative or supervisory responsibility for general home relief. The local governments in many States directly administer the special types of assistance, and in all except ten States are administratively responsible for general home relief. There has been a trend toward integration of State supervisory or administra tive departments to cover the different types of assistance. In 1939, 45 States had State agencies administering or supervising at least three types of assistance, 22 of them administering or supervising five types of assistance. Several State agencies administered or supervised a completely integrated program. It may be said in general that the administration of special types of assistance is more controlled and on a more permanent basis than the administration of general home re lief which remains quite largely the responsibility of local governmental units. Extremely significant changes, however, have occurred or are occurring, as follows: (I) a decided increase in the strengthening of State supervision of local administration ; (2) an assumption by the State of direct administrative responsibility ; and (3) a tendency toward integration in one central State body of supervisory or admin istrative responsibility. The degree to which these changes have oc curred vary, of course, from State to State.
to 1930, the cost of relief with minor exceptions was borne by local units of government. This ap plied in the majority of instances to the special types of assistance as well as to general home relief. Beginning in 1931, there was an increase in State financial participation in general home relief ; and after 1935, a similar increase for the special types of assistance. In 1939, some State funds for general home relief were provided in two thirds of the States ; all States provided funds for old age assistance; all but two States provided funds for blind assistance ; and all but four States provided funds for aid to dependent children. Usually when financial responsibility is divided between States and local units, the amounts to be contributed by each are determined by a fixed percentage of the total. Some States allow administrative discre tion for the distribution of State funds, with various criteria used for such distribution. The trend in the financing of relief generally paral lels the trends in relief administration and supervision, with more and more responsibilities assumed by the States. For general home relief, the major financial responsibility, if not the exclusive responsibility, remains with the local units of government in most States.