Dr. Daniel Sutter discusses his recent Mercatus working paper, “Welfare Block Grants as a Guide for Medicaid Reform.” Sutter reviews the history of the 1996 federal welfare reform, which was controversial at the time but has since been considered a bipartisan success that has empowered states to design welfare programs best suited to their populations. He explains how the waiver and block granting mechanisms in welfare reform could provide a model for a similar reform of Medicaid that reduces spending and transfers more control from Washington to the states.