Which of these is an example of a categorical grant?
A.
a federal program designed to help states with environmental cleanup
B.
a housing program with broad goals for states to target specific needs
C.
a community development grant that uses state tax dollars
D.
a reduction in education funds for states that do not achieve national standards
The Correct Answer and Explanation is :
The correct answer is A. a federal program designed to help states with environmental cleanup.
Explanation:
Categorical grants are funds provided by the federal government to state or local governments for a specific purpose, with strict regulations on how the money can be spent. These grants typically have defined objectives and are often tied to certain conditions that recipients must meet.
In the case of option A, the federal program targeting environmental cleanup exemplifies a categorical grant because it is designated for a specific purpose—environmental protection. States receiving this funding must use it solely for the intended environmental initiatives, adhering to the guidelines set forth by the federal government.
On the other hand, option B describes a housing program with broad goals, which suggests a more flexible approach in terms of how the funds can be utilized. This is characteristic of block grants, which provide more discretion to states or localities on how to allocate resources to meet broader objectives.
Option C mentions a community development grant funded by state tax dollars. This scenario typically does not involve federal categorical grants but rather state-funded initiatives. Therefore, it does not fit the definition of a categorical grant.
Lastly, option D refers to a reduction in education funds for states not meeting national standards. While it discusses conditions tied to funding, it does not represent a grant mechanism per se; instead, it implies a punitive measure rather than an allocation of specific funds for a particular use.
In summary, categorical grants, like the one mentioned in option A, serve distinct purposes with set conditions, which are pivotal in driving specific policy objectives at the state or local level.