Which type of grant is designed for specific purposes?

Which type of grant is designed for specific purposes?

• A. Categorical grant
• B. Block grant
• C. General revenue sharing
• D. Matching grant

Answer: (A)

Categorical grants are designed for specific purposes. They come with strings attached that specify exactly what the funds can be used for—often tied to particular programs or projects—and require adherence to guidelines, reporting, and sometimes matching funds. This tight targeting ensures the money advances a precise policy objective. Block grants give broad discretion within a general area, general revenue sharing has minimal conditions, and a matching grant requires the recipient to contribute funds but is still tied to a specific program.

Categorical grants are designed for specific purposes. They come with strings attached that specify exactly what the funds can be used for—often tied to particular programs or projects—and require adherence to guidelines, reporting, and sometimes matching funds. This tight targeting ensures the money advances a precise policy objective. Block grants give broad discretion within a general area, general revenue sharing has minimal conditions, and a matching grant requires the recipient to contribute funds but is still tied to a specific program.