A block grant is a grant-in-aid of a specified amount from a larger government to a smaller regional government body. It is a fixed sum of money given to state or local governments to support program activities and administration. Compared with other grants, block grants give state and local-level recipients more flexibility in program design and implementation with reduced federal oversight and requirements. Block grants have been in use in some form since the 1950s and have supported social services, public health services, or community development programs.
Block grants are often associated with supporting social welfare projects, such as Medicaid, public housing, education, and job training. The Community Development Block Grant (CDBG) Program is an example of a block grant program that provides annual grants on a formula basis to states, cities, and counties to develop viable urban communities by providing decent housing.
Block grants have less oversight from the larger government and provide flexibility to each subsidiary government body in terms of program design and implementation. Proponents of block grants typically argue that programs will be more effective and better suited to each states needs when decision-making shifts to the states since local authorities have a deeper knowledge of their constituencies. However, critics argue that block grants funding levels tend to fall short of meeting need, requiring benefit cuts, eligibility restrictions, or waiting lists.
