These block grants returned to the States the authority and flexibility to deliver health services to their citizens according to regional needs and solutions. They were part of President Reagans "New Federalism." These block grants established in preventive health services. maternal and child health. and alcohol. drug abuse and mental health have proven to be remarkably successful. In contrast. the primary care block grant as proposed by the administration was not passed into law in 1981. participation was made optional and required a new State match. and the authority for Federal funding of community and migrant health centers was retained. Unfortunately. with these restrictions. few States demonstrated Interest in the block grant management of this particular program. When this legislation was considered for reauthorization last year. it became clear that it was premature to completely pass the baton from the Federal Government to the States. Therefore. as a compromise. we authorized new State grants for primary care research. demonstration. and services while increasing the State role in the administration of the longstanding community health center program. It was the intent of Congress that the new State grant funds be used to provide both primary care services in medically underserved areas and to develop programs to meet local needs without further Federal regulatory direction. These grants will provide an opportunity for States to make a transition to assuming increasing responsibility for oversight of community health centers and migrant health centers. This transition period is considered essential to ensure that these centers. which provide services for the poor and most needy among our citizens. continue their proven track record of excellent and economic care. Based on past accomplishments and the successful Senate/House conference related to this legislation last year.