Does Louisiana suffer financial penalties for their state policies?

I remember hearing awhile back about Louisiana suffering some financial penalty because of some policy they refused to adhere to. It was something like gambling or the roads or the legal system or alcohol or something. The idea was that this something would give more money to the state than the penalty took away so they didn’t care that they didn’t get this money from the federal government. Am I remembering incorrectly? I can’t remember what exactly this penalty might be but considering all the blame being thrown around, I think it has some merit.

Factual answers only please. Take your arguments to the GD forum. Thanks.

I’ve always heard it as loss of federal highway funds because of a drinking age of 18. I’ll post a cite when I’ve got one.

Per this site the drinking age in Louisiana, as in every other U.S. state, is 21.

D’oh. I was under the impression that Louisiana did at one point forgo highway money in order to keep the drinking age at 18 but eventually caved on the issue, but I can’t find anything to back that up. In any event, a lot of people around here seem to think that that’s the case; maybe the OP heard the same story?

There are many instances in which federal funds are withheld (or given) for this or that reason. You could probably make that statement of every state in the union.

Lousiana raised the drinking age in 1985 but left a loophole open. It was illegal for people aged 18-20 to buy or possess alcohol, but not illegal for anyone to sell it to them. Sales of alcohol to people aged 18-20 naturally remained high. When threatened with losing federal highway funding, the legislature closed the loophole in 1995.

bibliophage has it right. It was a very well designed series of laws that made it legal in pactice for 18 - 20 year olds to by alcohol in stores, bars, and everywhere else. It was a giant loophole created intentionally. At the same time, it managed to meet the standards of the Transportation Department so Louisiana did not lose in federal highway funds. I was 18 - 21 when I lived there 1991 - 1995 and I can assure you that there was no barrier whatsoever for people these ages buying alcohol anwhere in the city. It was even legal to buy it on Tulane’s campus and to consume it in all the dorms.

That started to change I think in 1997? and Lousiana has a 21 year old drinking age now although there are still bigger loopholes than most states have and the drinking culture is still different from other states.