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It depends on a number of factors.

Depending on the program, most of which are made under strict legislative rules and become part of administrative laws. Generally these claim to be enacted based on need, civic requirements, public good, economic development, etc. The monies may come from specific funds, generated in a specific way (like a local sales tax, fee, or such), or more general ones - State or Federal revenues from taxes and such. Something like sewers or street lights for example are frequently funded by a special assessment against only the properties that benefit. Something like funds to help New Orleans rebuild from the flood, from much more broad sources.

Finally, there is no question that which projects are agreed to and who receive funds is a very political issue and as such involves all the good & bad things that may imply....graft, payola, favoritism, etc.

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