Block Grant

Written By Jonathan Milner

Definition

A block grant is an annual sum of money that is awarded by the federal government to a state or local government body to help fund a specific project or program. These became official in the U.S. beginning in 1966. This form of federal assistance is often associated with supporting social welfare projects, such as Medicaid, public housing, education, and job training. Block grants are federal funds earmarked for specific state or local programs. A block grant is supported by federal funds but administered by state or local governments, the thought being local authorities are better suited to handle local issues. Opponents of block grants claim that they are a waste of taxpayer dollars and are often misspent. Critics of block grants cite the relative lack of federal oversight as a problem. Notably, the proposal to turn Medicaid into a block grant program was seen as endangering the federal government's ability to guarantee a standard level of service. Because the recipients of block grants have a great deal of flexibility in how those dollars are actually spent, opponents argue that federal money can be misused by local authorities. Money received from block grants often cannot be tracked or audited in the same way that categorical grants (intended for a specific purpose) can, compounding these concerns.

Example

 
 

Questions

  1. What are block grants?

  2. How are block grants different from categorical grants?

  3. Find an image or emoji that does a good job of conveying the meaning of block grant?

  4. Who administers block grants?

  5. What do critics of block grants point to as a problem with these grants?

Remember!

Now, let’s commit this term to our long-term memory. On a scrap piece of paper, take 10 or 20 seconds to draw block grant. Draw with symbols or stick figures if you wish. Nothing fancy. Don’t expect a masterpiece. No one else will see this but you. Look at your drawing. That’s all - now it’s downloaded into your memory. Destroy the piece of paper in a most delightful way.

Further Review

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Jonathan Milner

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https://www.gopopro.com/
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