Fiscal Federalism

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6 Terms

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Categorical Grant

“Strings Attached Grant” Typically population based (medicaid, food stamps.) Brings states into line w/ federal standard as money can only be used for a specific purpose

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Block Grant

States have more freedom on how to use the money, broader area

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Mandates

Fed. govt sets a mandate and provides funds to reach it/provides an incentive (ex. changing drinking age to 21 or else lose % of money for highway system)

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Unfunded Mandate

Fed govt sets a mandate but does not provide funds to reach it (ex. No Child Left Behind)

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Project (Type of Categorical Grant)

Federal money given based on competitive application process (ex: national science foundation)

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Formula (Type of Categorical Grant)

Distributed according to a formula; per capita income, on the basis of population. (ex: medicaid, childrens nutrition programs)