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The US Constitution and Federalism

Fiscal federalism and federal grants

  • 3 things to know
  • A2 Unit 4

Overview

Fiscal federalism, categorical grant and block grant.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Key term

Explain how Washington shapes state policy through money rather than through law.

Key term

Define fiscal federalism.

Key term

What is a categorical grant?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    Define fiscal federalism.

    Model answer

    The financial relationship between the federal government and the states, chiefly through taxation and grants.

  2. 2

    What is a categorical grant?

    Model answer

    Federal money given to a state for a narrowly defined purpose, with conditions on how it is spent.

  3. 3

    What is a block grant?

    Model answer

    Federal money given for a broad policy area, leaving the state wide discretion over how to spend it.

  4. 4

    Which type of grant do states generally prefer, and why?

    Model answer

    Block grants, because they carry fewer conditions and leave the state free to set its own priorities.

  5. 5

    Which type of grant gives Congress most influence over state policy?

    Model answer

    The categorical grant, because its conditions dictate what the money buys.

  6. 6

    What is a matching requirement?

    Model answer

    A condition that the state contribute a set proportion of the cost before federal money is released.

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