What are Block Grants?

Block grants are a form of federal funding that provides states and local governments with a lump sum of money to be used for a wide range of purposes. The key characteristic of block grants is their broad and flexible nature, which allows recipients to allocate funds according to their specific needs and priorities. This flexibility contrasts with categorical grants, which are designated for specific programs or projects with strict guidelines on how the money must be spent.

Such funding is often aimed at supporting areas such as community development, education, health care, and social services. By giving states the latitude to design their own programs, block grants encourage innovation and allow for tailoring of services to meet local needs, which can lead to more effective outcomes compared to prescriptive funding approaches.