Often overshadowed by the GI Bill, the National Youth Administration (NYA) supervised the first federal need-based financial aid program in the United States. Tracing the origin of federal aid back to the era of the NYA reveals that the rationale for need-based assistance rests closer to the core of the American policymaking tradition. This article contributes to previous histories of the NYA by demonstrating how its decentralized implementation empowered local college officials who jeopardized the program’s needs-based intent. Meanwhile, this localized administration also facilitated the NYA’s unusual and relatively successful support for Black college students.