Which type of grant is generally more flexible in how funds can be used?

Block grants are known for their flexibility in how funds can be utilized. These grants are allocated by the federal government to state or local governments for broad purposes, such as education, social services, or public health. Unlike categorical grants, which are designated for specific programs and have stringent requirements on their usage, block grants provide more leeway. This allows recipients to decide how to best allocate the funds according to their particular needs and priorities.

This flexibility is particularly beneficial for addressing localized issues, as it enables state and local entities to tailor their approaches rather than adhere strictly to mandated uses defined at the federal level. As a result, block grants encourage innovation and responsiveness to community needs while also simplifying the funding process compared to more narrowly defined grant types.