Inside Report (6)

Don't write off Reagan's ''new federalism'' yet.

Despite recent headlines to the contrary, legislation to support the administration's proposed swap of responsibilities with states -- Washington to take on medicaid costs in exchange for state funding of most other welfare - is still being drafted. True, the pace of negotiations has slowed and many state and local officials remain less than thrilled about the whole idea. But the talks could yield a workable proposal.

The White House apparently has given yet another concession. To smooth passage by Congress, the administration has agreed that Washington will fund the food stamp program. Whether this will make a crucial difference when the proposal reaches Capitol Hill sometime in May remains to be seen.

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