How do block grants differ from category grants?

Block grants are designed to provide federal funding to state and local governments for broadly defined purposes, allowing greater flexibility in how the funds can be used. This flexibility means that states or localities can make decisions based on their specific needs within the general framework laid out by the federal government. Examples of broadly defined purposes include areas such as community development, health services, or social services.

In contrast, categorical grants are much more specific in their application. These grants are intended for particular projects or programs and come with detailed guidelines that dictate how the funds should be spent. This specificity generally restricts the recipient’s ability to allocate funds towards other activities outside the defined scope of the grant.

The distinction underscores the fundamental purpose of each grant type: block grants aim to empower local governments with greater autonomy and versatility in resource management, while categorical grants enforce compliance with federal priorities and specified outcomes. This difference is crucial for understanding how federal funding interacts with state and local government initiatives.