🎓 CLEP Exam Prep

What type of federal grant gives state and local governments the most discretion in how to spend the funds, with broad national purposes rather than specific programs?

A Categorical grants
B Block grants
C Project grants
D Formula grants

✓ Correct Answer: Option B

Block grants provide states with significant flexibility in how funds are spent within a broad policy area, reflecting a shift towards devolution of power.

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