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These grants have been accompanying rules and guidelines that constrain the recipient government in the use of grant funds. [1] Categorical grants are intended to help states improve the overall well-being of their residents, but also empower the federal government to exert more power over the states within a specific policy area.
President Reagan had requested the consolidation of 85 existing anti-poverty grants into seven categorical grants; Congress agreed to consolidate 77 grants into nine. The nine new block grants were budgeted about 25% less than the programs they replaced (Conlan, qtd. in [2]). The CSBG legislation was amended in 1998 by the Coats Human Services ...
Block grants combine categorical grants into a single program. Examples of this type of grant includes the Community Development Block Grant and the Alcohol, Drug Abuse, and Mental Health Services Block Grant. Recipients of block grants have more leeway in using funds than recipients of individual categorical grants. [citation needed]
In the United States, federal grants are economic aid issued by the United States government out of the general federal revenue. A federal grant is an award of financial assistance from a federal agency to a recipient to carry out a public purpose of support or stimulation authorized by a law of the United States.
Block grants can be also provided being tied up to any specific use. A grant of some fixed amount with a mandate that money be spent only on some specific purpose is called conditional block grant. [20] In general, grants that are restricted to a particular way of use are called categorical grants. [19]
A block grant in the United States is a grant-in-aid of a specified amount from the federal government of the United States to individual states and local governments to help support various broad purpose programs, such as law enforcement, social services, public health, and community development.
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The CDBG program was enacted in 1974 by President Gerald Ford through the Housing and Community Development Act of 1974 and took effect in January 1975. Most directly, the law was a response to the Nixon administration's 1973 funding moratorium on many Department of Housing and Urban Development (HUD) programs.