Today, Congress appropriates money for three types of grants-in-aid: Categorical grants: made for some specific, closely defined, purpose.
Block grants: for some particular but broadly defined area of public policy.
Project grants: made for some specific projects to States, localities, and private agencies who apply for them.
Chat with our AI personalities
The federal government does not give states loans with interest!
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.
A project grant is a grant-in-aid that has to be applied for. The federal government provides several different types of grants.
Grants-in-aid
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.