Evidence suggests that localities did not use s to help people and conditions in distressed neighborhoods as much as was originally intended 26 The earlier categorical grant system seemed to benefit the poor in distressed sections of cities more than did (CDBGs. Some cities concluded that it was more cost-effective, and therefore more productive, to invest money in transitional neighborhoods as opposed to those that were the most distressed. Perhaps more important than this was the pressure put on public officials to invest in more middle-class and moderate income neighborhoods which needed projects, and which were more politically alert and active than were residents of the more depressed areas. Concerned about this trend, President Carter issued a series of executive orders requiring HUD to dispense at least 75 percent of money to low to moderate income neighborhoods. HUD complied, but relaxed its application of the standard in response to local and congressional political pressure When Ronald Reagan assumed the presidency, HUD dispensed with the standard entirely.