Explain the two types of categorical grants.

Explain the two types of categorical grants.
Federalism
Explain the two types of categorical grants.
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Categorical grants are funds the federal government gives to state and local governments to spend on specific activities within specific programs. The federal government usually requires localities and states to apply for categorical grants for specific purposes.[1]

Categorical grants contrast with block grants, which can be used for broadly defined purposes and are not subject to as much oversight or as many administrative conditions.[1]

Background

In a 2019 report, the Congressional Research Service (CRS) identified the following three kinds of federal grants to state and local governments:[2]

  • Categorical grants
  • Block grants
  • General revenue sharing

Categorical grants can be awarded on a competitive basis, as reimbursements for program costs, or according to a preset formula set by Congress or an administrative agency.[2] Federal categorical assistance started back in 1862, when Congress passed the Morrill Act and allowed states to sell public lands to fund land grant colleges, according to a 1978 report published by the Advisory Commission on Intergovernmental Relations.[3]

Categorical grants made up 1,253 of the 1,274 federal grant programs as of 2018 and funded policies such as health care, transportation, and social services.[2]

According to CRS, "with the exception of the early 1980s, federal grant funding, the number of federal grants, and the issuance of federal mandates have increased under both Democratic and Republican Congresses and Presidents."[2]

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  • Community Development Block Grant.
  • Alcohol Drug Abuse and Mental Health Services Block Grant.
  • Local Law Enforcement Block Grant.
  • National Institutes of Health for bioscience research.
  • National Science Foundation for physical science research.

Though TANF is a block grant there are some strings attached to the use of its funds. Most TANF requirements apply to families receiving assistance. Assistance is often but not exclusively in the form of a cash benefit.

Why do states not like categorical grants?

Categorical grants are the main source of federal aid used for one specific purpose with strings attached. … States prefer block grants because there are less strings attached and the money can be used for a broader purpose.

What is an example of a grant in aid?

Grants-in-aid may be used for a variety of purposes. For example the federal government may decide it wants to encourage state and local governments to become more engaged in a specific policy area such as affordable housing or education for the disadvantaged.

What is categorical funding in education?

Funds from the state or federal government granted to qualifying schools or districts for specific children with special needs certain programs or special purposes such as transportation. This money is in addition to the funding schools receive for their general education program. …

How have categorical grants been used to increase the power of the federal government?

categorical grants are grants that have a specific purpose. this type of grant has been increasing the power of the federal gov relative to the states because the categorical grants come with “strings attached” and states must spend the money in accord with the national government’s wishes.

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What is the purpose of grant funding?

A grant is a way the government funds your ideas and projects to provide public services and stimulate the economy. Grants support critical recovery initiatives innovative research and many other programs listed in the Catalog of Federal Domestic Assistance (CFDA).

What is the difference between a categorical grant and a block grant use details from the text to support your answer?

Categorical grants are specific and contain conditions whereas block grants are very broad and give the state governments more freedom with the funds.

How do categorical grants play into the relationship between state and federal governments?

Categorical grants are federal aid given to states with rules in place. In order to receive the money the states must agree to the federally mandated rules. These rules usually deal with how the money will be spent. … This is because the federal government is giving the states money.

What is true about categorical grants?

Which of the following statements is true about categorical grants? They give the national government control over how states use the funds by imposing certain conditions. … One of these expressed powers is the power to: regulate interstate commerce.

Why are categorical grants good?

Categorical grants are intended to help states improve the overall well-being of their residents but also empower the federal government to exert more power over the states within a specific policy area.

What are categorical grants and why would they be used quizlet?

A categorical grant is used for a specific purpose or category for state or local spending. (Ex: natural disaster airport building crime fighting) that depends on state’s population. Block Grants are given for general purposes that the states can use as they see fit (welfare public health).

What is a categorical formula grant quizlet?

Categorical Grants. federal grants that can be used only for specific purposes or “categories ” of state and local spending. They come with strings attached such as nondiscrimination provisions.

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What are 5 types of grants?

Keep reading to find out which grant category would be most beneficial for you.

  • Program and Project Grants. Programmatic or project grants are the most common category and they are intended to realize special projects or support programming. …
  • General Operating Grants. …
  • Capital Grants. …
  • Capacity Building. …
  • Endowments.

federal grants given to state and local governments for broad purposes such as welfare community development public health or education. States usually prefer block grants because they are designed to allow state officials to spend the money as they see fit.

What are the pros and cons of receiving grants?

  • Free Money. The primary advantage of grants is that unlike loans they don’t have to be repaid. …
  • Prestige and Promotion. Winning a coveted grant can provide benefits beyond the dollar amount awarded. …
  • Difficult to Get. …
  • Strings Attached. …
  • Uncertain Future.

  • Federal Pell Grants.
  • Federal Supplemental Educational Opportunity Grants (FSEOG)
  • Iraq and Afghanistan Service Grants.
  • Teacher Education Assistance for College and Higher Education (TEACH) Grants.

Congressional funding legislation determines annual Pell Grant maximum limits so they do change periodically. Currently Pell recipients are eligible for up to $5500 each year and the grants are renewable for multiple years.

Is unemployment a TANF?

TANF: States have flexibility in TANF on how to consider income but they typically treat UI benefits as unearned income.

Is WIC considered TANF?

Temporary Assistance for Needy Families (TANF) Special Supplemental Nutrition Program for Women Infants and Children (WIC)

Is TANF and SNAP the same thing?

The food stamp program gives families assistance to buy food while TANF gives families cash for bills and necessities. The two are not the same program.

Categorical grants mandates and the Commerce Clause | US government and civics | Khan Academy

Categorical Block and Project Grants Explained

2.6 Explain how block grants categorical grants and federal mandates are used.

FEDERALISM: The Relationship Between STATES and FEDERAL Government [AP Gov Review Unit 1 Topic 7]