{"id":15439,"date":"2022-12-29T23:04:00","date_gmt":"2022-12-29T23:04:00","guid":{"rendered":"https:\/\/businessyield.com\/?p=15439"},"modified":"2023-05-11T10:06:13","modified_gmt":"2023-05-11T10:06:13","slug":"categorical-grants","status":"publish","type":"post","link":"https:\/\/businessyield.com\/grant-opportunities\/categorical-grants\/","title":{"rendered":"CATEGORICAL GRANTS: Definition, Examples, Types (+PDF)","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\n
There has been an increase in federal grant-in-aid outlays throughout the second half of the twentieth century. This shows how the national government balances power between the federal, state, and local governments. One of these ways is through the federal categorical grants which have increased in two-fold since 2000. So we are going to look at the definition of categorical grants and compare it with the other types of grants. Hence we are also going to explore some examples of categorical grants, categorical grants vs block grants, and grants in aid.<\/p>\n\n\n\n
Most times the state and the local government need a boatload of money to fund some exotic projects. So they’ll like to receive this huge sum from the Federal Government which is a good idea-hence, categorical grants to the rescue. So we are going to look at the definition of these categorical grants below. <\/p>\n\n\n\n
A categorical grant is the type of grant paid by the Federal Government to a state government or any other parastatal to be used for a specific purpose. This definition of categorical grants implies that the money can only be received if the state or local government complies with certain regulations. <\/p>\n\n\n\n
Categorical grants are a result of the United States federal system. This Congress system gives the federal government power in some areas, such as military spending. Meanwhile, the state and local governments will have power over other areas like schooling, roads, and law enforcement. Although these certain areas are the domain of local governments doesn’t mean that the federal government won’t be able to influence them. Rather, the federal government uses the money to convince the states to comply with the national goals. Here the categorical grants come to play.<\/p>\n\n\n\n
There are diverse opportunities for governments to cooperate and garner resources to accomplish projects that are too large for either to accomplish easily on its own. For instance, the state may want to make repairs on the interstate highway running through it. So, both the federal and state government can pool money, manpower, and other useful resources to complete the works and repairs timely. This is what we call \u201ccooperative federalism.\u201d <\/p>\n\n\n\n