Here is a clear contrast between block grants and categorical grants by matching each term to the correct characteristics:
- Block Grants:
- Federal funds provided to states or local governments for a general policy purpose.
- Offer more flexibility in how the funds are spent.
- Give more power to the states/local authorities to decide allocation based on local needs.
- Less federal oversight and fewer restrictions on spending.
- Categorical Grants:
- Federal funds provided to states for a specific purpose or project.
- Come with strict guidelines and rules on how the money must be used.
- Offer more power to the federal government in controlling the use of funds.
- Often require adherence to detailed federal regulations and monitoring.
In summary, block grants allow states broader discretion and flexibility in spending federal money mainly for general purposes, while categorical grants are targeted with tight federal controls for specific projects or programs. This distinction reflects different balances of power between federal and state governments in fiscal policy.
