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Another example of federal government taking states power would be the new ways of controlling the states spending, the government now gave out categorical grants from which it could control how the states spent this money. For some states the government was giving out over $200 billion dollars from which 90% of this would be categorical grants and the federal government would regulate how it was spent. The states therefore were restricted on what they could spend the money on and this further showed an increase in federal government's power.
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What are categorical grants used for?
An example would be Head Start or the Food Stamp program.
A type of federal grant-in-aid that is used for a specific narrowly defined purpose?
Federal grants-in-aid used only for a designated activity are called categorical grants. If a state accepts a federal grant-in-aid, it must comply with federal restrictions on its use.
What are grants-in-aid categorical grants and block grants?
Grants in aid are grants to states to achieve a public project or service. Categorical grants are grants that are given to states for a SPECIFIC PURPOSE. Block grants are given to states for a GENERAL purpose.
What are categorical grants-in-aid?
Categorical grants are the main source of federal aid to state and local government, can be used only for specific purposes and for helping education or categories of state and local spending.Categorical grants are distributed either on a formula basis or a project basis. For project grants, states compete for funding; the federal government selects specific projects based on merit. Formula grants, on the other hand, are distributed based on a standardized formula set by Congress.During the development of the Interstate Highway System, congressional grants provided roughly 90% of the funding. Categorical grants may be spent only for narrowly defined purposes and 33% of categorical grants are considered to be formula grants. Examples of categorical grants include Head Start, the Food Stamp Program, and Medicaid.
Are categorical grants preferable to block grants?
Well, it depends. It is apparent that block grants are preferable to the states and governors, since they are more broad and less detailed on how the money can and should be spent, whereas a categorical grant is "categorized" and "specific" and is quite detailed in how the state is allowed to spend the money given from the Federal government.
