Categorical grants are released through the U . s . States Congress that may simply be allocated to narrowly defined reasons and also have extensive restrictions. Grants supports transportation, housing, insurance benefits for kids along with other projects which are considered appropriate. Congress oversees the program’s implementation to make sure that the federal administrating agency is held accountable for making sure the program’s performance final results are met.
Most government grants are categorical, It’s mean the Categorical Grants are released by Congress for specific reasons. Categorical grants give local government authorities and states assistance in giving federal initiatives: for instance, disability or education programs. Local government authorities and states might be granted these grants to handle research, projects, programs, infrastructure and outreach. Depending on the type of grant, organizations such nonprofits, institutions of higher education and tribal organizations may make an application for the grants. Some grants are given on a competitive basis while other are available to all qualifying entities.
Categorical Grants Types
- Formula Grants – A formula grant is money that’s distributed to states or states administered programs for ongoing initiatives set by Congress. These grants are non-competitive and meaning that applicants won’t be given awards according to merit or specific candidate needs such as expertise. These grants will also be given for activities of a continuing nature: for instance, the Edward Byrne Memorial State and Local Law Enforcement Assistance Grant Program. Since this is a formula grant, all 50 states and American territories are eligible to apply.
- Project Grants – A project grant is assistance that’s provided to organizations for fixed or known periods of time. These grants have application acceptance and deadline periods. These grants receive for specific projects for example fellowships, training, planning, research, planning, technical assistance and construction initiatives. This grant is awarded to qualified organizations based on the merit of the application and other eligibility requirements.
- Block Grants – Block Grants are federal grants provided to local and state agencies for programs that will assist social welfare. The objective of these grants would be to lighten the government burden in giving programs for the social well-being from the community. The American Recovery and Reinvestment act of 2009 was passed to help end the current recession. Because the act was passed, block grants have been awarded to states for projects like the Energy Efficiency and Conservation Block Grant. The grant is given by the Department of Energy to distribute to qualified candidates.
Categorical Grants Advantages and Disadvantages
Advantages : Proponents of categorical grants say that requiring recipients to match funds prevents state and local governments from defunding programs after receiving the grant money. In some instances, this results in an increase in overall funding for programs. In other instances, it helps prevent the decreases in funding typically seen over time with block grants.
Disadvantages : Those opposed to categorical grants argue that the restrictions attached to the grants often prevent the money from being used where it is needed. Opponents say that money becomes stockpiled in reserve accounts while other budget areas are left in need. Those in opposition also protest the fact that recipients must sometimes match the grant funds, saying that this can prevent those who most need such grant money from getting it.
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