π Topic Summary
Categorical grants and block grants are two primary ways the federal government provides funding to state and local governments. Categorical grants are very specific; the federal government dictates exactly how the money can be used. Think of it as funding with strings attached! Block grants, on the other hand, offer more flexibility. States and localities have broader discretion in deciding how to allocate the funds within a general area, such as education or community development.
Understanding the difference is crucial because it highlights the ongoing debate about federal versus state control. Categorical grants allow the federal government to influence policy at the local level, while block grants empower states to address their unique needs.
π Part A: Vocabulary
Match the terms with their definitions:
| Term |
Definition |
| 1. Categorical Grant |
A. Federal funding with broad guidelines, allowing states flexibility in spending. |
| 2. Block Grant |
B. Requirements attached to federal funds, dictating how the money must be used. |
| 3. Federalism |
C. A system of government where power is divided between a national government and state governments. |
| 4. Mandate |
D. An order from the federal government that all state and local government must follow. |
| 5. Revenue Sharing |
E. Distribution of a portion of federal tax revenue to state and local governments. |
Answer Key:
1-B, 2-A, 3-C, 4-D, 5-E
βοΈ Part B: Fill in the Blanks
Complete the following paragraph using the words: categorical, block, states, federal, flexibility.
The ________ government provides funds to ________ through both ________ and ________ grants. ________ grants offer more ________ in how the money is spent.
Answer:
The federal government provides funds to states through both categorical and block grants. Block grants offer more flexibility in how the money is spent.
π‘ Part C: Critical Thinking
Imagine you are the governor of a state. Would you prefer to receive federal funding primarily through categorical grants or block grants? Explain your reasoning.