money givin to states for a specific purpose
categorical grants
Grants in aid are grants to states to achieve a public project or service. Categorical grants are grants that are given to states for a SPECIFIC PURPOSE. Block grants are given to states for a GENERAL purpose.
Categorical grants refer to money given for a specific purpose that comes with. Congress in 1994 changed many federal grants into block grants.
Ronald Reagan
Grants in aid are grants to states to achieve a public project or service. Categorical grants are grants that are given to states for a SPECIFIC PURPOSE. Block grants are given to states for a GENERAL purpose.
Categorical grants are specific funds provided by the government for a defined purpose or program. Block grants, on the other hand, are broader grants given to states or local governments to be used for a variety of programs within a specific policy area, allowing more flexibility in how the funds are used.
Project and formula
Categorical-formula grants
An example would be Head Start or the Food Stamp program.
Categorical grants are the main source of federal aid to state and local government, can be used only for specific purposes and for helping education or categories of state and local spending.Categorical grants are distributed either on a formula basis or a project basis. For project grants, states compete for funding; the federal government selects specific projects based on merit. Formula grants, on the other hand, are distributed based on a standardized formula set by Congress.During the development of the Interstate Highway System, congressional grants provided roughly 90% of the funding. Categorical grants may be spent only for narrowly defined purposes and 33% of categorical grants are considered to be formula grants. Examples of categorical grants include Head Start, the Food Stamp Program, and Medicaid.
Block grant - grant awarded for funding a specific purpose Categorical grant - same as a block grant but has more detailed restrictions in how the funding can be used
Federal grants-in-aid used only for a designated activity are called categorical grants. If a state accepts a federal grant-in-aid, it must comply with federal restrictions on its use.