Final answer:
New Federalism is falsely associated with returning power to the national government; it's the reverse, focusing on transferring powers from the federal government to the states. Block grants are a key component, providing states with greater autonomy to address local needs, representing a decentralization effort.
Step-by-step explanation:
New Federalism refers to the transfer of certain powers from the national government back to the states. The claim that New Federalism represents a return of more power to the national government through block grants is false. Instead, New Federalism, particularly during the Nixon and Reagan administrations, signaled a shift toward decentralization, giving states more autonomy over certain programs that had previously been managed at the federal level.
Districts received block grants with fewer stipulations, which granted them more discretion in deciding how to use federal funds. These block grants were part of a strategy to enhance administrative efficiency, reduce public spending, and improve policy outcomes by entrusting the states with both accountability and responsibility for local needs.
The sacrifice on the part of the federal government in adopting this approach was the relinquishment of direct control over how states spend federal monies, thereby acknowledging state sovereignty in allocating resources based on the unique needs of their citizens. Thus, New Federalism essentially works towards decentralization of policy management.