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Types of Grants

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Types of Grants Categorical v Block Categorical Grants: Grants that can be used only for SPECIFIC purposes Money comes with strings Popular with fiscal federalism Block Grants - Fed. Gov?t still gives money but without as many restrictions - states have more freedom on how the money is spent Examples of Categorical Grants 1. Highway Act of 1916 ? Pres. Wilson used Federal money to build highways 2. Equal Opportunity Act of 1982 ? Federal money given to state and local governments to promote 3. Title VI of the Civil Rights Act 1964 4. Drinking Age (21) tied to funding for maintenance of interstate highways Examples of Block Grants ?New Federalism? of Nixon and Reagan ? wanted to move decision making to local level ( favored small national government)

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