Grants Basics
What is a grant?
Money given by one level of government to another for a specific purpose
Define Catergorical
A grant with strict federal guidelines on how the money must be spent
Define Block Grant
A grant that allows states more flexibility in how the funds are spent
What is a mandate
A requirement imposed by the federal government on state or local governments
Medicaid Type?
Medicaid is a type of formula grant to states
Purpose of Fed Grants
To help fund programs and services that align with federal goals
Who decides usage?
The federal government sets most of the conditions for spending
Why do states prefer this?
Offers way more local control and reduce federal oversight
Funded vs. Unfunded
Funded mandates come with money; unfunded mandates do not
Clean Air Act: Grant or Mandate?
The Clean Air Act is a federal mandate with funding support
Block vs. Categorical
Categorical grants have specific restrictions; block grants offer broader spending freedom
Pro(s) of Categorical Grants
Ensures uniform policy implementation across states
Example: Community dev
The community development block grant is a key example
Example: ADA
ADA is an example of a mandate
No Child Left Behind
No Child Left Behind is a categorical grant tied to education standards
Formula Grants
Grants distributed based on set formula, often considering factors like population or income
Example in Education
Title I funding for low income schools is an example
Flexibility Debate
Some argue block grants reduce accountability for outcomes
Problems w/ Unfunded
They can burden state budgets if no federal funds are provided
Americans w/ Disabilities Act
The ADA is a unfunded mandate that increased public building accessibility
Project Grant
A grant rewarded for a specific project, like building a research center or highway
Limitation of Categorical
Limited flexibility for state and local governments to address unique needs
Drawback of Block Grants
Funding amounts can be inconsistent and vulnerable to cuts
How mandates affect budgets
They may force states to raise taxes or cut programs to comply
COVID-19 Stimulus Funds
COVID-19 stimulus funds included both block grants and project grants