What is the main difference between a block grant and a categorical grant?
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Since the New Deal, the national government has played an increasing role in encouraging and even coercing states to administer federal policies. Central to this evolving relationship has been the federal government’s use of grants-in-aid to encourage states’ cooperation in implementing federal policies. Show
 Increases in federal grant-in-aid outlays throughout the second half of the twentieth century exemplify the increased role of the national government in the federal balance of power. Federal grants have seen a further twofold increase since 2000. Political actors in the national government establish these grant programs with varying degrees of flexibility and discretion given to state governments. Categorical Grants Categorical grants are federal grants given to state and local governments to encourage their cooperation in implementing specific purposes and programs.
Block Grants Block grants are federal grants-in-aid that allow states considerable discretion (within broad limits) about how the funds will be spent.
The Politics of Grants-in-Aid: Devolution When the Republicans took control of Congress after the 1994 elections, their “Contract with America” sought to “devolve” control of many federal programs to the states, often by replacing existing categorical grant programs with block grant programs. Two examples of this approach are welfare reform and crime policy. Devolution in Welfare Reform The Republicans replaced the federal Aid to Families with Dependent Children (AFDC) entitlement welfare program with Temporary Assistance for Needy Families (TANF), which provided block grants to state governments to reform welfare. AFDC: The Federal Role
TANF: Increased State Power
Devolution in Crime Policy With the Taking Back Our Streets Act, the Republicans replaced the specific programs and grants to state and local governments that characterized the Clinton administration’s crime bill with block grants to states, allowing them to fight crime as they saw fit. 1994 Crime Bill
Taking Back Our Streets Act
Examining the Rationality Principle The Rationality Principle: all political behavior has a purpose. All political actors engage in instrumental acts designed to further their individual goals. A block grant is an annual sum of money that is awarded by the federal government to a state or local government body to help fund a specific project or program. These became official in the U.S. beginning in 1966. This form of federal assistance is often associated with supporting social welfare projects, such as Medicaid, public housing, education, and job training. Key Takeaways
Understanding Block GrantsBlock grants have been in use in some form since the 1950s. Most have supported social services, public health services, or community development programs. Block grants were designed to provide funding for those services with relatively few strings attached, allowing local governments to manage and oversee the programs. In addition, state and local governments may add their own guidelines and will sometimes distribute a portion of the grant to other organizations, which likewise have their own guidelines and rules regarding how the money is used and for what purpose. Block grants have fallen out of favor in recent years. A 2017 attempt to revamp Medicaid as a block grant program failed. A number of block grant programs still exist. One enduring example is the Community Development Block Grant (CDBG) program under the U.S. Department of Housing and Urban Development, which began in 1974. Critics of block grants cite the relative lack of federal oversight as a problem. Notably, the proposal to turn Medicaid into a block grant program was seen as endangering the federal government's ability to guarantee a standard level of service. Block grants have been in use since the 1960s, but have fallen from favor a bit in recent years. Criticism of Block GrantsWhile block grants are intended to promote social good by helping states fund important programs, some have held critical views of these programs. Because the recipients of block grants have a great deal of flexibility in how those dollars are actually spent, opponents argue that federal money can be misused by local authorities. Money received from block grants often cannot be tracked or audited in the same way that categorical grants (intended for a specific purpose) can, compounding these concerns. Local officials can therefore be thought to direct the funding from block grants to those communities who have the greatest political influence in order to curry favor and votes, while ignoring those underserved communities that the money was ostensibly intended for. Proponents of block grants typically argue that programs will be more effective and better suited to each state's needs when decision-making shifts to the states since local authorities have a deeper knowledge of their constituencies. Examples of Block GrantsThree of the better-known block grant programs are earmarked for social services delivered at the local level: The Community Development Block Grant Program (CDBG)The CDBG program, administered by the Housing and Urban Development (HUD) agency, says it aims to "develop viable urban communities by providing decent housing and a suitable living environment" with a focus on "low- and moderate-income persons." It has provided more than $160 billion in grants through mid-2021. The grant amounts are awarded according to a formula based on a community's needs, including its extent of poverty, overcrowding, and population growth. Mental Health Block Grant (MHBG)The Mental Health Block Grant, established in 1981, has disbursed millions of dollars to states to assist in the treatment of mental illnesses. The grant was amended in 1986 to require that states develop services based on the advice of Mental Health Planning Councils comprised primarily of family members and non-treating professional citizens. Social Services Block Grant Program (SSBG)The Social Services Block Grant Program (SSBG) is a broadly defined program that allows states and territories to tailor social service programming to the needs of their populations. Administered by Health and Human Services, the program is intended to "reduce dependency and promote self-sufficiency; protect children and adults from neglect, abuse, and exploitation; and help individuals who are unable to take care of themselves to stay in their homes or to find the best institutional arrangements," according to the department's Office of Community Services. What Are the 4 Main Types of Grant Funding?Grants are awarded in one of several ways. The main four are: 1) competitive, whereby bidders submit applications based on merit or need asking for a specific amount; 2) formula, which uses an algorithm to allocate predetermined amounts of funds based on objective need; 3) continuation funding, where prior grants are renewed; and 4) pass-through funding, with federal funds passed to state authorities to be used for federal programs, such as transportation. What Is the Difference Between a Block Grant and a Categorical Grant?A block grant can be used for a variety of purposes, with the distribution of funds overseen and allocated by local authorities. A categorical grant is awarded for a singular and specific purpose, with distributions audited to ensure the intended recipient. Do Block Grants Increase State Power?Because block grants give states or local authorities discretion with how to spend otherwise federal funds, they do increase the state's power to spend in that way. Proponents argue that this increases the efficiency of grant funds since local politicians and directors will have greater knowledge of their own area than those in Washington, D.C. What's the difference between block grants and categorical grant?A block grant can be used for a variety of purposes, with the distribution of funds overseen and allocated by local authorities. A categorical grant is awarded for a singular and specific purpose, with distributions audited to ensure the intended recipient.
What is the difference between a categorical grant and a block grant quizlet?What is the difference between categorical grants and block grants? A categorical grant is when money is given by Congress for a specific purpose. A block grant is money given to a state for a broad category like secondary education or health services.
What is the main difference between block grants and federal mandates?Block grants are federal grants that are given for more general purposes for broad policy areas, such as welfare, public health, community development, or education. Federal mandates are demands on states to carry out certain policies as a condition of receiving grant money.
What is considered a categorical grant?Categorical grants are funds the federal government gives to state and local governments to spend on specific activities within specific programs. The federal government usually requires localities and states to apply for categorical grants for specific purposes.
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