What Are Categorical Grants?

There are two main types of grants available through the federal government: 1) Categorical and 2) Block Grants, that also include Project, Formula and Matching Grants.

What's an example of a categorical grant?

Medicaid and the food stamp program are examples of categorical grants. Block grants come with less stringent federal administrative conditions and provide recipients more flexibility over how to spend grant funds. … The federal government uses grants and other tools to achieve its national policy priorities.

What is a categorical grant grant?

Categorical grants are funds the federal government gives to state and local governments to spend on specific activities within specific programs. … Categorical grants contrast with block grants, which can be used for broadly defined purposes and are not subject to as much oversight or as many administrative conditions.

What are 3 examples of categorical grants?

Examples of categorical grant funding include Head Start programs, Magnet School programs, Forestry Assistance programs, and Asbestos Abatement programs.

What are categorical grants and why would they be used?

Categorical grants are federal grants given to state and local governments to encourage their cooperation in implementing specific purposes and programs. These grants give less flexibility to state governments than block grants.

The national governments ability to achieve its objectives often requires the participation of state and local governments. Intergovernmental grants offer positive financial inducements to get states to work toward selected national goals. A grant is commonly likened to a carrot to the extent that it is designed to entice the recipient to do something. 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 for the costs of implementation. Thus, given its coercive nature, a mandate is commonly likened to a stick.

Categorical grants are federal transfers formulated to limit recipients discretion in the use of funds and subject them to strict administrative criteria that guide project selection, performance, and financial oversight, among other things. 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.

From 1972 to 1986, when revenue sharing was abolished, upwards of $85 billion of federal money was distributed to states, cities, counties, towns, and villages. Under the AFDC, the federal government had reimbursed states a portion of the costs they bore for running the program without placing a ceiling on the amount. In contrast, the TANF block grant caps annual federal funding at $16.489 billion and provides a yearly lump sum to each state, which it can use to manage its own program.

Unfunded mandates are federal laws and regulations that impose obligations on state and local governments without fully compensating them for the administrative costs they incur. The federal government has used mandates increasingly since the 1960s to promote national objectives in policy areas such as the environment, civil rights, education, and homeland security. Failure to fully comply with crosscutting mandates can result in punishments that normally include reduction of or suspension of federal grants, prosecution of officials, fines, or some combination of these penalties.

The 2015 Unfunded Mandates and Information Transparency Act , HR 50, passed the House early in 2015 before being referred to the Senate, where it waits committee consideration. The law requires drivers licenses and state-issued identification cards (DL/IDs) to contain standardized anti-fraud security features, specific data, and machine-readable technology. The Department of Homeland Security announced a phased enforcement of the law in 2013, which requires individuals to present compliant DL/IDs to board commercial airlines starting in 2016.

The cost to states of re-issuing DL/IDs, implementing new identity verification procedures, and redesigning DL/IDs is estimated to be $11 billion, and the federal government stands to reimburse only a small fraction. The continued use of unfunded mandates clearly contradicts new federalisms call for giving states and local governments more flexibility in carrying out national goals. Specifically, to remain eligible for federal financial aid funds and avoid penalties, colleges and universities must comply with the following provisions:

Publish an annual security report and make it available to current and prospective students and employees; Keep a public crime log that documents each crime on campus and is accessible to the public; Disclose information about incidents of criminal homicide, sex offenses, robbery, aggravated assault, burglary, motor vehicle theft, arson, and hate crimes that occurred on or near campus; Issue warnings about Clery Act crimes that pose a threat to students and employees; Develop a campus community emergency response and notification strategy that is subject to annual testing; Gather and report fire data to the federal government and publish an annual fire safety report; Devise procedures to address reports of missing students living in on-campus housing. categorical grant a federal transfer formulated to limit recipients discretion in the use of funds and subject them to strict administrative criteria

Imagine you are the governor of a state, and you need funding for state projects. How would you like to receive a boatload of money from the federal government? Sounds good, right? Not so quick there’s always a catch!

However, the money is contingent upon local governments meeting the requirements set by the Department of Education. Here, Congress decides how much it wants to spend overall on a project, and then the money is distributed to all states according to a formula.

In this program, states competed for education money by making changes to their educational system, such as adopting the Common Core standards, uncapping the number of charter schools, and making improvements to the lowest-achieving schools. Categorical grants are a major part of American society, even if we don’t always realize it. A controversial categorical grant has been the Patient Protection and Affordable Care Act, sometimes called Obamacare.

They have, thus, left billions of dollars on the table as an act of protest against the controversial piece of legislation. There are many familiar examples of projects that receive categorical grants, including food stamps, Medicare, and Obamacare.

Categorical grants can only be used for a specific purpose, and are given out to state and local governments by federal entities. It is very specific, and can only be used for the one defined objective. Entities are not required to accept these categorical grants, but if they do, they are required to all the rules and regulations that are laid out beforehand. This article with talk more about categorical grants, and give some examples of some.

When Barak Obama was the president, he stressed the importance of getting children ready for their education through Head Start programs. Without them, there simply would not have been enough funding to provide all this support to the Head Start Programs of the country, and children would be worse of for it.

Grants

By the end of this section, you will be able to:The national government’s ability to achieve its objectives often requires the participation of state and local governments. Intergovernmental grants offer positive financial inducements to get states to work toward selected national goals. A grant is commonly likened to a “carrot” to the extent that it is designed to entice the recipient to do something. 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 for the costs of implementation. Thus, given its coercive nature, a mandate is commonly likened to a “stick.”

Unfunded Mandates

For example, Title VI of theThe widespread use of federal mandates in the 1970s and 1980s provoked a backlash among state and local authorities, which culminated in theThe number of mandates has continued to rise, and some have been especially costly to states and local authorities. Consider theCompliance with the federal law has been onerous for many states; only twenty-two were in full compliance with Real ID in 2015.The continued use of unfunded mandates clearly contradicts new federalism’s call for giving states and local governments more flexibility in carrying out national goals. The temptation to use them appears to be difficult for the federal government to resist, however, as the UMRA’s poor track record illustrates. This is because mandates allow the federal government to fulfill its national priorities while passing most of the cost to the states, an especially attractive strategy for national lawmakers trying to cut federal spending.Some leading federalism scholars have used the termIn other words, Washington has been as likely to use the stick of mandates as the carrot of grants to accomplish its national objectives. As a result, there have been more instances of confrontational interactions between the states and the federal government.

Definition of Categorical Grants

Imagine you are the governor of a state, and you need funding for state projects. How would you like to receive a boatload of money from the federal government? Sounds good, right? Not so quick… there’s always a catch!This is the basic idea of a

Categorical Grants and the Federal System

Categorical grants are a result of the United States’s federal system. With this system, the federal government has power in some areas, such as military spending, while the state and local governments have power over other areas, such as schooling, roads and law enforcement. But just because certain areas are the domain of local governments does not mean that the federal government can’t influence them. Instead, the federal government uses money to convince the states to comply with national goals. This is where categorical grants come into play.Take education, for example. Nowhere in the Constitution does it say that the federal government should provide for education. Yet, we have a Department of Education in Washington, D.C. Why is that? The simple answer is that the Department of Education does not provide schooling. Instead, it provides federal money to local states to oversee schooling. However, the money is contingent upon local governments meeting the requirements set by the Department of Education.Categorical grants are the most common types of grants given by the federal government to state and local governments, but they are not the only type. There also exist

Types of Categorical Grants

There are two ways in which categorical grants are distributed. The first way is throughBut how was that money distributed? Clearly, some states have higher levels of poverty than other states. So using a formula, the money was distributed to the different states based on the poverty levels and the number of people in each state.Another type of categorical grant is a

Examples of Categorical Grants

Categorical grants are a major part of American society, even if we don’t always realize it. Anti-poverty programs, such as Medicaid and Head Start, are categorical grants. Likewise, the national drinking age is a result of a categorical grant. In order for states to receive federal-highway-funding money, all states have to make 21 years of age the official age to drink. Otherwise, the state would not get the federal grant money.A controversial categorical grant has been the Patient Protection and Affordable Care Act, sometimes called Obamacare. This program, among other things, gives states massive amounts of money in order to start private insurance exchanges to help individuals buy insurance. Because of the controversial nature of the bill, some Republican governors have refused federal government money in order to not comply with the federal government’s requirements. They have, thus, left billions of dollars on the table as an act of protest against the controversial piece of legislation.

The Conditions for Money

State governments rely on federal funding for a wide variety of projects and programs. The federal government handles this need for money through grants, specifically categorical grants. Categorical grants are money given to state and local governments for programs and projects with specific limitations on how that money is to be spent. The process of obtaining these grants can vary depending on the grant.

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Categorical Grants

Categorical grants can only be used for a specific purpose, and are given out to state and local governments by federal entities. It is very specific, and can only be used for the one defined objective. Entities are not required to accept these categorical grants, but if they do, they are required to all the rules and regulations that are laid out beforehand. This article with talk more about categorical grants, and give some examples of some.

Head Start programs

Categorical grants are given to government agencies and entities that are to be used for a very specific purpose. The grants are awarded to applicants that can meet all of the predefined categories. Those who receive these grants must report back frequently to show the money is being used correctly. Some examples of these categorical grants are