Which grant type is awarded for a narrow purpose, such as funding for a specific program like school meals?

Which grant type is awarded for a narrow purpose, such as funding for a specific program like school meals?

• A. Block grant
• B. General revenue sharing
• C. Categorical grant
• D. Formula grant

Answer: (C)

This question is about how federal funds are categorized by how narrowly they target use. A categorical grant is reserved for a specific program or purpose, with particular rules about how the money must be spent and reported. Funding school meals fits this tightly defined target, so it’s a textbook example of a categorical grant. Block grants, by contrast, cover broad policy areas and give states more discretion on how to use the funds. General revenue sharing involved distributing money with few restrictions and no tied program. Formula grants are distributed according to a formula and can still be tied to particular programs, but the key point here is the explicit, narrow purpose of the funds, which makes categorical grants the correct fit.

This question is about how federal funds are categorized by how narrowly they target use. A categorical grant is reserved for a specific program or purpose, with particular rules about how the money must be spent and reported. Funding school meals fits this tightly defined target, so it’s a textbook example of a categorical grant.

Block grants, by contrast, cover broad policy areas and give states more discretion on how to use the funds. General revenue sharing involved distributing money with few restrictions and no tied program. Formula grants are distributed according to a formula and can still be tied to particular programs, but the key point here is the explicit, narrow purpose of the funds, which makes categorical grants the correct fit.