🎓 CLEP Exam Prep

Which of the following best distinguishes a block grant from a categorical grant in the context of federalism?

A Block grants require state matching funds, while categorical grants do not.
B Categorical grants provide funds for broad purposes with fewer strings attached, while block grants are for specific projects.
C Block grants offer states more discretion in how funds are spent, whereas categorical grants have strict conditions.
D Categorical grants are distributed based on population, while block grants are competitive.

✓ Correct Answer: Option C

Block grants give states substantial discretion over how federal funds are spent on a broad policy area. Categorical grants, however, have specific conditions, purposes, and requirements for how states must use the money.

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