on
the
federal
matching
share
of
medicaid
costs,
a
condition
not imposed on states.
Virgin Island health and social service
are discriminatory and limit the
ceilings
that
officials claimed
local government's ability to provide service to territorial
They believe the Virgin Islands should be considered
residents.
Puerto Rico beaS a state for the purpose of program funding.
lieved that all programs available to states should be fully
Although Puerto Rico does receive
available to Puerto Rico.
statelike treatment for most federal programs, ‘there are some
exceptions; it is excluded from the Supplemental Security ,Income
program, as are all other territories except NMI, and receives
set funding levels for Aid to Families with Dependent Children,
Medicaid, and the Social Services and Nutrition Assistance Block
A consulting firm under contract with the Puerto Rican
Grants.
government estimated that Puerto Rico would have gained about
$1
in
billion in federal program benefits
receiving the same benefits as states.
In
fiscal
year
1981
its comprehensive economic study of Puerto Rico
in December 1979,
ings,
issued
the Department of Commerce stated that
"There is no apparent
underlying the mixture
and
by
consistent rationale
of exclusions, ceil-
differential
matching
rates
that
are currently applied by Congress to Puerto
Rico in its Federal program participation.”
As far as we could determine, the conclusion reached then by the
Commerce study remains true today.
THE FEDERAL GOVERNMENT
RECOGNIZES PROBLEMS AND HAS
TAKEN SOME CORRECTIVE ACTION
In recent years,
the United States has shown greater under-
standing and flexibility in dealing with the territories'
unique
‘conditions.
Legislation has been passed to provide special
treatment, such as Title V of Public Law 95-134 enacted in 1977
which authorized federal agencies to consolidate certain grants
to the territories to minimize administrative burdens created by
application and reporting procedures.
Under this law, federal
agencies may permit a territory to submit a single application
for a consolidated grant.
Territorial program officials said
that grant consolidation bas significantly eased program admini-
stration.
The
.
Congress
limitations;
has
Public
also
Law
recognized
96-205
the
enacted
territories"
in
1980
funding
directed
the
Department of the Interior to waive matching requirements for
all grants to the territories, and other federal departments
were
required
to
waive matching
37
5000244
requirements
for grants
under