Grants and Funding Mechanisms in Government

Study Notes

Categorical Grants

Intergovernmental grants directed to state and local authorities with specified guidelines for spending.
Includes project grants, which are competitive and awarded based on applicants' needs.
Also includes formula grants, which allocate funds according to predetermined criteria defined by state or regulatory entities.

Crossover Sanctions

This strategy uses grant funding from one program to encourage states and localities to adopt broader national policies.

Block Grants

Intended to replace traditional categorical grants by providing broader funding with fewer restrictions.
Aims to reduce national oversight while increasing discretionary spending authority for state and local officials.
Represents a form of general revenue sharing, providing states and localities a portion of national tax revenues for flexible use.
Designed to limit the national government's influence and return legislative power to the states.
Efforts to restructure funding for welfare programs like Medicaid and food stamps.

Unfunded Mandates

Define required services or actions that states and local governments must perform to comply with federal standards without accompanying funding.
Forces a reallocation of local funds essential for state projects to adhere to federal requirements.
Challenges the goal of devolving power from the federal to the state level.
Allows Congress to gain political favor with constituents while distancing itself from the cost implications for taxpayers during re-election campaigns.

Description

Explore the various types of government grants including categorical grants, project grants, and block grants. Understand how these funding mechanisms affect state and local authorities and their spending decisions. This quiz covers key concepts and classifications related to intergovernmental funding strategies.