block grant

The Reagan administration proposed in 1981 the creation of several grants to replace categorical grant programs to the states. The idea behind this proposal was to transfer authority and responsibility to the states, thereby reducing the role of the federal government as a funder, relieving states of some federal regulatory burden and saving money by reducing administrative costs. Congress acted on this proposal in the summer of 1981 and consolidated fifty-seven categorical programs into several block grants. The two most significant block grants for state public health systems were the Maternal and Child Health Block Grant (MCHBG) and the Preventive Health and Health Services Block Grant (PHHSBG).

In Federal Fiscal Year (FFY) 1999, the core PHHSBG was funded nationally at $150 million. Additional funds earmarked specifically for rape prevention education were subsequently added to this core amount and distributed via a formula to all states. The primary areas of activity for the core PHHSBG included chronic disease prevention and control, emergency medical services in rural areas, and community health education efforts. States are required to develop plans, report activities, and target these activities to identify high-need populations. Flexibility inherent in this block grant allows states to address health problems specific to their state, as long as these activities also address the national health objectives for the nation contained in Healthy People 2010. Funded program areas included cardiovascular disease prevention, injury prevention, increasing good nutrition choices and physical activity, and prevention of tobacco use by youth.

The Maternal and Child Health program was authorized under Title V of the Social Security Act of 1935. The actions taken by Congress in 1981 created block grant amendments for Federal Fiscal Year (FFY) 1982 (October 1, 1981–September 30, 1982). These amendments increased states' roles in determining activities and added programs under Title V to create the MCHBG.

The MCHBG is focused on improving and protecting the health of all mothers and children. States have the ability to determine their needs within prescribed categories of activities. These planned activities must be consistent with national health objectives established by the Secretary of the U.S. Department of Health and Human Services (e.g., Healthy People 2010). Programs have been developed to address several areas, which include preventing deaths, illnesses, and disabilities; assuring access to quality health care; and providing community-based health services to children with special needs. It is estimated that over 20 million women, children, and youth received services under the MCHBG in FFY 1999. Programs funded by the MCHBG include prenatal care, services for children with special health care needs, newborn screening for metabolic errors, childhood lead-poisoning prevention, and sudden infant death syndrome prevention.

(SEE ALSO: Maternal and Child Health Block Grant; Newborn Screening; Prevention Block Grant; Sudden Infant Death Syndrome [SIDS])

Bibliography

Association of Maternal and Child Health Programs. "Frequently Asked Questions about Title V." Available at http://www.amchp.org/titlev/questions.htm.

Centers for Disease Control and Prevention. "Preventive Health and Health Services Block Grant." Available at http://www.cdc.gov/nccdphp/prevbloc.htm.

Public Law 97–35, August 13, 1981. Title XIX: Health Services and Facilities, Subtitle A-Block Grants, 95 Stat, 535–542.

— FRANK S. BRIGHT

A central grant in general aid of local government services, distributed on one or more of the criteria of local needs, resource equalization, or relief of local taxation. Often called general grants, block grants are predominant as the form of central grant subvention to local government in the United Kingdom and Europe, in contrast to the United States where specific service-targeted grants are still more common. Confusingly, some US government grants made to local authorities for discretionary usage within a broad policy area, such as education, are also called block grants.

— Jonathan Bradbury

A financial aid package that grants federal money to state and local governments for use in social welfare programs, such as law enforcement, community development, and health services. Block grants provide money for general areas of social welfare, rather than for specific programs. This arrangement not only reduces bureaucratic red tape, but also allows grant recipients more freedom to choose how to use the funds. A product of Republican administrations in the 1970s and 1980s, block grants reduce federal responsibility for social welfare. (See federalism.)

The examples and perspective in this article deal primarily with the United States and do not represent a worldwide view of the subject. Please improve this article and discuss the issue on the talk page.

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In a federal system of government, a block grant is a large sum of money granted by the national government to a regional government with only general provisions as to the way it is to be spent. This can be contrasted with a categorical grant which has more strict and specific provisions on the way it is to be spent.

An advantage of block grants is that they allow regional governments to experiment with different ways of spending money with the same goal in mind, though it is very difficult to compare the results of such spending and reach a conclusion. A disadvantage is that the regional governments might be able to use the money if they collected it through their own taxation systems and spend it without any restrictions from above.

United States

Since the 1980s, the United States government has provided large sums of money through block grants, under a policy that has come to be known as "devolutionary" or "new federalism."

According to the General Accounting Office, from 1980 to 2001 the number of federal block grant programs went from 450 to 700. The grants are aimed at a wide range of activities from education to healthcare, transportation, housing and counterterrorism.

In the United States, the formulas for how much money states receive favors small states. Most grant programs have a minimum amount per state - usually 0.5% or 0.75% of the total money given to states in the program.

For instance, in 2003, under the State Homeland Security Grant Programs and Critical Infrastructure Protection Grants, Wyoming, the least populous state, received $17.5 million and California, the most populous state, received $164 million. In fiscal year 2004 Wyoming is guaranteed to receive a minimum of $15 million and California, the most populated state, $133 million. Wyoming receives $35.3 per person and California receives $4.7 per person.

Similar patterns exist for other block grant formulas. An analysis exists in the book Sizing Up the Senate.

Major criticisms of block grants are that:

• the award process can be manipulated so that grants can be distributed to reward the federal administration's own party (by favoring states with governors of that party, for example);
• at the local level, the same sort of partisan favoritism may occur when the state distributes the funds to local government units;
• dispersing the funds through state or local governments makes federal oversight of their proper use very difficult.

See also

• Categorical grant

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