Categorical Grant: grants given for specific purpose., states must use the money exactly as Federal Government says, Federal Gov retains authority on how money is used, Women, Infant, Children (WIC) program, Head Start , Block Grant: large (fixed amount) financial grant to states for a general need, state and local govt have wide power to spend block grants as they want, states prefer this type because it gives them authority to spend $$ based on needs, Local Law Enforcement grants, Mandates: Federal order on states, Federal gov ties funding to ONE thing based on state compliance with another thing, Highway funding tied to 21 yr. old drinking age, smoking 21 yr. or lose mental health $$, Unfunded mandate : Federal order on states but no money given to comply with order, Environmental laws like Clean Air Act, American for Disabilities Act (ADA), FEDERAL REVENUE SHARING: states get a “share” or portion of Federal income tax revenue., ended in 1986 due to rising national debt (LOL), almost no restrictions on state use,

FISCAL FEDERALISM: GRANTS

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