National government imposes standards and requirements. Federal assistance is an ongoing entitlement. States are free to tailor program and impose added restrictions on recipients. States expect recipients to move off welfare on a state-determined schedule. States must match 25 percent of federal funds. States must match 10 percent of federal funds. Answer the following questions:. Federal policy maker goals: How does the use of categorical grants help federal policy makers control the policy activities of state and local governments and benefit federal policy makers politically?
Examining the Policy Principle The Policy Principle: political outcomes are the products of individual preferences and institutional procedures. Crime legislation: Consider the differences in the crime problems of Illinois, California, and New York each of which faces significant challenges with violent crime , on the one hand, versus North Dakota, Kansas, and New Hampshire more rural states , on the other.
What effect does establishing a rule allowing states greater flexibility to address crime have on policy making? Unlike the Republican proposals of the s, why might President Bush have advocated an increasing federal role in education? The figure at the beginning of this exercise shows a significant increase in federal grants-in-aid beginning in What is the source of this increase and in what ways has it involved a more regulated style of federalism?
First Name:. Block grants , categorical grants , and general revenue sharing are three types of federal government grants -in-aid programs. Also Know, why are categorical grants more popular than block grants? Because it is not bound by a formula, as with block grants , the federal government can give money to the most worthy applicants. What was the appeal of block grants and revenue sharing and why did they not achieve their goals?
They were supposed to give the states and cities considerable freedom in deciding how to spend the money the federal government provided while helping relieve their tax burdens. Community Development Block Grant. Energy Efficiency and Conservation Block Grant. Social Services Block Grant. Temporary Assistance to Needy Families. Indian Housing Block Grant.
What Are Block Grants? There are actually just four main types of grant funding. This publication provides descriptions and examples of competitive, formula, continuation, and pass-through grants to give you a basic understanding of funding structures as you conduct your search for possible sources of support. The opposite of block grants is categorical grants , which are chunks of money given by the federal government to state and local governments that have far more rules attached to them.
Both block grants and categorical grants are the result of the United States' federal system. The Community Development Block Grant CDBG Program provides annual grants on a formula basis to states, cities, and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons. Use the federal government's free, official website, Grants.
Department of Housing and Urban Development, funds local community development activities with the stated goal of providing affordable housing, anti-poverty programs, and infrastructure development. For block grants , the applicants are primarily U. Once they receive a block grant , they then utilize the funding to implement the program to provide benefits and services to people who are eligible to receive them.
This is the beneficiary eligibility. Unlike loans, grants don't need to be paid back. There are a few personal grants available at the federal level and a host of other government benefits that don't need to be repaid. We'll refer to all government money that doesn't need to be repaid and is available to individuals as personal grants. A financial aid package that grants federal money to state and local governments for use in social welfare programs, such as law enforcement, community development, and health services.
Block grants provide money for general areas of social welfare, rather than for specific programs. Although the data reflect results, patterns revealed in the figure give us an idea of how governments funded their activities in recent years. For the federal government, 47 percent of revenue came from individual income taxes and 34 percent from payroll taxes, which combine Social Security tax and Medicare tax.
To gain insight on this question check Article I, Section 8, of the Constitution, assigning the federal government various powers allowing it to affect the nation as a whole. Educational expenditures constitute a major category for all levels.
However, whereas the states spend comparatively more than local governments on university education, local governments spend even more on elementary and secondary education. Local governments allocate more funds to police protection, fire protection, housing and community development, and public utilities such as water, sewage, and electricity. While state governments allocate comparatively more funds to public welfare programs, such as health care, income support, and highways, both local and state governments spend roughly similar amounts on judicial and legal services and correctional services.
Intergovernmental grants offer positive financial inducements to get states to work toward selected national goals. On the other hand, unfunded mandates impose federal requirements on state and local authorities.
Mandates are typically backed by the threat of penalties for non-compliance and provide little to no compensation to carry out the mandated action. The national government has used grants to influence state actions as far back as the Articles of Confederation when it provided states with land grants.
In the first half of the s, land grants were the primary means by which the federal government supported the states. Millions of acres of federal land were donated to support road, railroad, bridge, and canal construction projects, all of which were instrumental in piecing together a national transportation system to facilitate migration, interstate commerce, postal mail service, and movement of military people and equipment.
Numerous universities and colleges across the country, such as Ohio State University and the University of Maine, are land-grant institutions because their campuses were built on land donated by the federal government.
By , cash grants replaced land grants as the main form of federal intergovernmental transfers and have become a central part of modern federalism. Federal cash grants have strings attached; the national government wants public monies used for policy activities that advance national objectives.
These grants also often require some commitment of matching funds. Examples are Medicaid and the food stamp program—categorical grants. Block grants come with less stringent federal administrative conditions and provide recipients more flexibility over how to spend grant funds. Examples of block grants include the Workforce Investment Act program, which provides state and local agencies money to help youths and adults obtain skill sets that will lead to better-paying jobs, and the Surface Transportation Program, which helps state and local governments maintain and improve highways, bridges, tunnels, sidewalks, and bicycle paths.
Finally, recipients of general revenue sharing faced the least restrictions on the use of federal grants. During the s and s, funding for federal grants grew significantly, as the trend line shows in the figure above. Growth picked up again in the s and s. The upward slope since the s is primarily due to the increase in federal grant money going to Medicaid. The federal government uses grants and other tools to achieve its national policy priorities.
Take a look at the National Priorities Project to find out more. The national government favors using categorical grants to transfer funds to state and local authorities because this gives them more control and discretion in how the money is spent. In , the federal government distributed 1, grants, 1, of which were categorical, while only 21 were block grants.
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