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Categorical grant
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| •Key terms • Court cases •Major arguments • State responses to federal mandates • Federalism by the numbers • Index of articles about federalism |
Categorical grants are funds the federal government gives to state and local governments to spend on specific activities within specific programs. The federal government usually requires localities and states to apply for categorical grants for specific purposes.[1]
Categorical grants contrast with block grants, which can be used for broadly defined purposes and are not subject to as much oversight or as many administrative conditions.[1]
Background
In a 2019 report, the Congressional Research Service (CRS) identified the following three kinds of federal grants to state and local governments:[2]
- Categorical grants
- Block grants
- General revenue sharing
Categorical grants can be awarded on a competitive basis, as reimbursements for program costs, or according to a preset formula set by Congress or an administrative agency.[2] Federal categorical assistance started back in 1862, when Congress passed the Morrill Act and allowed states to sell public lands to fund land grant colleges, according to a 1978 report published by the Advisory Commission on Intergovernmental Relations.[3]
Categorical grants made up 1,253 of the 1,274 federal grant programs as of 2018 and funded policies such as health care, transportation, and social services.[2]
According to CRS, "with the exception of the early 1980s, federal grant funding, the number of federal grants, and the issuance of federal mandates have increased under both Democratic and Republican Congresses and Presidents."[2]
See also
External links
Footnotes
- ↑ 1.0 1.1 Congressional Research Service, "Block Grants: Perspectives and Controversies," accessed August 2, 2021
- ↑ 2.0 2.1 2.2 2.3 Congressional Research Service, "Federal Grants to State and Local Governments: A Historical Perspective on Contemporary Issues," updated May 22, 2019
- ↑ Advisory Commission on Intergovernmental Relations, "Categorical Grants: Their Role and Design," 1978
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