Which statement is true about block grants and categorical grants?

Which statement is true about block grants and categorical grants?

• A. Block grants provide broad discretion to states with general purposes (e.g., TANF).
• B. Block grants specify exact uses with strict guidelines (e.g., National School Lunch Program).
• C. Means-tested programs are available to everyone regardless of income (universal).
• D. Categorical grants provide broad flexibility (e.g., TANF).

Answer: (A)

Block grants give states broad discretion to spend money within general purposes, rather than for narrowly defined activities. Temporary Assistance for Needy Families (TANF) is a classic example, letting states design welfare programs and set rules within broad federal goals while meeting reporting requirements. Categorical grants, in contrast, come with specific purposes and strict guidelines, such as the National School Lunch Program, which must be used for one clearly defined objective. The statement about block grants providing broad discretion aligns with how TANF operates, making it the true characterization. Means-tested versus universal is a separate concept about eligibility, not about how the funds are granted, and TANF is not a categorical grant.

Block grants give states broad discretion to spend money within general purposes, rather than for narrowly defined activities. Temporary Assistance for Needy Families (TANF) is a classic example, letting states design welfare programs and set rules within broad federal goals while meeting reporting requirements.

Categorical grants, in contrast, come with specific purposes and strict guidelines, such as the National School Lunch Program, which must be used for one clearly defined objective.

The statement about block grants providing broad discretion aligns with how TANF operates, making it the true characterization. Means-tested versus universal is a separate concept about eligibility, not about how the funds are granted, and TANF is not a categorical grant.