General Revenue Sharing phase-out (1972–1986)
Congress created General Revenue Sharing in 1972, sending billions to state and local governments with few strings. The program expired in 1986 and was not renewed, cutting a steady federal revenue stream to cities.
Cities absorbed the lost funds through budget cuts, service reductions, or local tax increases.
It stands as a precedent for how local budgets adjust when federal aid disappears.
Grand Rapids now faces a similar, if smaller, adjustment as pandemic-era federal aid phases out.
