Reagan's New Federalism gets lawmakers' warning

Two Frost Belt congressional leaders warned Sunday that President Reagan's revised New Federalism plan must be tailored to the needs of distressed cities and states if it is to win backing on Capitol Hill.

In a joint statement, Reps. Robert Edgar (D) of Pennsylvania and Stewart McKinney (R) of Connecticut said the New Federalism debate focuses too much on which level of government gets responsibilities, programs, and funding, and too little on the needs of distressed areas. The president is expected to outline a revised plan this week.

Friday, Mr. Reagan sent Congress an urban policy report that, in line with the New Federalism, called for the return of ''maximum authority and discretion'' to state and local governments. An earlier, more strongly worded draft of the report was roundly condemned by US mayors last month.

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