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May 12, 1981
Met with Sen. (Repub.) leaders re the ec. pckg. They seemed enthused & ready to go. Met with 19 Governors who are concerned about the Cong. being reluctant to go for block grants. I’ve had members of Cong. express concern that State govt. might be less able to properly direct aid if they have the authority under a block grant. On this one I’m with the Governors—it’s the only way to go. These programs will be less wasteful if Gov’s. have the flexibility to set priorities.