GRANTS by liuhongmei


Kelly Taylor, AP US Government
               Federal Taxes Paid vs.
             Spending Received by State
•   States send federal taxes to Washington and receive federal
    spending in return.

•   However, some states benefit more from federal taxing
    and spending policies than others. Some "beneficiary"
    states receive a positive return from Uncle Sam, making other
    states "donors" who pick up the tab.

•    The most important factor determining whether a state is a
    net beneficiary is per capita income. States with wealthier
    residents pay higher federal taxes per capita thanks to the
    progressive structure of the income tax.

•   Other factors include whether states have powerful Members of
    Congress, the number of federal employees present in a state, and
    the number of residents receiving Social Security, Medicare and
    other federal entitlements.

•   State info: taxes v. moneys received:
• Block: General.      • Categorical:      Specific.
                         The federal government
• The states decide.     prescribes.
                Block Grants

•   In a federal system of government, a block grant is a large sum of
    money granted by the national government to a regional
    government with only general provisions as to the way it is to be
    spent. This can be contrasted with a categorical grant which has
    more strict and specific provisions on the way it is to be spent.

•   An advantage of block grants is that they allow regional
    governments to experiment with different ways of spending money
    with the same goal in mind, though it is very difficult to compare
    the results of such spending and reach a conclusion.
            BLOCK GRANTS
•   Block grants are fixed-sum federal grants to state and local
    governments that give them broad flexibility to design and
    implement designated programs.

•   Between President Bush's 2005 budget and pending congressional
    legislation, at least 10 different block grant proposals are up for
    consideration by national policymakers.
•    Federal oversight and requirements are light, and funds are
    allocated among recipient governments by formula.

•   ** Note: Most federal aid is currently distributed to state and
    local governments as categorical grants, which may also be
    allocated by formula but can only be used for rather narrowly
    defined purposes.
           Block Grants
• Proponents of block grants typically argue that
  programs will be more effective and better suited
  to each state's needs when decision making shifts
  to the states.

• Opponents usually respond that state flexibility
  will be misused, and that the block grant
  mechanism will provide an indirect means of
  reducing funding for key social programs.
     Categorical Grant
• Categorical Grant
• A more restrictive version of the
  block grant. The categorical grant
  spells out in greater detail the
  specific categories in which the
  money must be spent.
       Categorical grants
• Categorical grants are grants, issued by the United States
  Congress, which may be spent only for narrowly-defined
  purposes. Additionally, recipients of categorical grants are
  often required to match a portion of the federal funds.

• About 90% of federal aid dollars are spent for categorical

• Categorical grants- the main source of federal aid to state
  and local government, can only be used for specific
  purposes, or categories of state and local spending.
       Categorical Grants
• Categorical grants are
                           • For project grants,
  distributed either on
                             states compete for
  a formula basis or a
                             funding; the federal
  project basis.
                             government selects
                             specific projects
• Formula grants, on the     based on merit
  other hand, are
  distributed based on a
  standardized formula
  set by Congress.
      Categorical Grants
• During the development of the Interstate
  Highway System, congressional grants provided
  roughly 90% of the funding.

• Categorical grants may be spent only for
  narrowly defined purposes and 33% of
  categorical grants are considered to be formula

• Examples of categorical grants include Head
  Start, the Food Stamp Program, and Medicaid.

• Block grants are issued in   •   Categorical grants identify
                                   where the money must be
  support of general               spent by the states.
  governmental functions
  such as education or law
                                    – Formula Grants ( 33%)
  enforcement.                          • By population
                                        • Portioned
• State and local recipients            • Entitlement programs
                                             –   Examples of categorical
  have more leeway in                            grants include Head Start,
  determining how best to                        the Food Stamp Program,
                                                 and Medicaid.
  use the block grant money.        – Project Grants
                                        • States propose projects
                                        • Federal government decides
                                          if the project is worthy of
                                        • States compete against each
                                          other for project money
              Examples of
             Project Grants
• Agriculture
                                            •   Food and Nutrition
• Arts (see "Cultural                       •   Health
  Affairs" in CFDA)
                                            •   Housing
• Business and Commerce                     •   Humanities (see "Cultural
• Community Development                         Affairs" in CFDA)
• Consumer Protection                       •   Information and Statistics
• Disaster Prevention and                   •   Income Security and Social
  Relief                                        Services
• Education                                 •   Law, Justice and Legal
• Employment, Labor and                     •    Natural Resources
  Training                                  •   Science and Technology and
• Energy                                        other Research and
• Environment                                   Development
                                            •   Transportation
        Browse by category:;jsessionid=4sWFJgHfbvGnqz9Jg1YSMC
                          Examples of
                         Project Grants
•   Close DateOpportunity TitleAgency Funding Number03/16/2009
•   21st Century Museum Professionals Institute of Museum and Library
    Services 21MP-FY09 03/12/2009
•    NEA Access to Artistic Excellence FY2010, Deadline 1 National
    Endowment for the Arts 2009NEA01AAE1 05/28/2009
•   NEA Challenge America: Reaching Every Community Fast-Track Review
    Grants, FY2010 National Endowment for the
    Arts 2009NEA01CAFT 02/20/2009
•   NEA International Literary Exchanges: Chinese and U.S. Contemporary
    Poetry Anthologies National Endowment for the
    Arts NEAPS0902 06/11/2009
•   NEA Learning in the Arts for Children and Youth, FY2010 National
    Endowment for the Arts 2009NEA01LITA 03/05/2009
•   NEA Literature Fellowships: Creative Writing, FY2010 National
    Endowment for the Arts 2009NEA03LFCW 02/19/2009
•   NEA Universal Design Leadership Project, FY2009 National Endowment
    for the Arts NEAPS0901 02/02/2009
•    National Leadership Grants Institute of Museum and Library
    Services NLG-FY09 03/02/2009
description : Old and young sit
huddled together on narrow backless
benches. Most of these workers
earn no more than 5 cents an hour.
Two toilets, one of them out of
order, serve the 160 workers
employed in this factory
               The Arts
• The largest of the
  W.P.A. tile murals
  can be found above
  the main entrance to
  Alamo Stadium – four
  60-square-foot works
  depicting a century of
  sports in San Antonio
  from Native American
  archers on Military
  Plaza in 1840 to high
  school football in 1940.
              San Antonio
• About 20 million visitors come to San Antonio each year,
  and most of them take a stroll along the banks of the scenic
  stream and patronize its many restaurants, clubs and hotels.

• Very few of them realize the River Walk began as a federal
  government project. The initial grant was $375,000 from
  the Depression-era Works Projects Administration in 1938.

• Millions more federal tax dollars have been spent on the
  River Walk over the decades, fostering a tourism industry
  in San Antonio that now generates nearly $9 billion in annual
  revenues and employs more than 90,000 people.
    San Antonio currently is
      asking for more 
•   A San Antonio project aims to improve the river’s channel south of
    downtown. It is part of a 21-kilometer extension of the River Walk
    that is going to cost tens of millions of dollars.
•   In July, a U.S. Senate committee approved legislation that would
    require the federal government to reimburse Bexar County, which
    includes San Antonio, for as much as $70 million being spent on the
    project. There is also $10 million in federal funds set aside for
    construction in 2009.
•   A major sponsor of the project in Washington is Senator Kay
    Bailey Hutchison, a Texas Republican. She says the objective is “to
    beautify our already scenic river and open it to more recreational
    uses while protecting and restoring key portions of this precious
•   San Antonio Mayor Phil Hardberger says the federal money is
    essential “to ensure the continued success of this project,” and
    strongly objects to suggestions that the river project is “pork.”
       Pork barrel spending
•   In some circles, that kind of spending of taxpayer money carries
    the disparaging name “pork barrel spending”, a term that traces its
    origins back to the era of slavery before the U.S. Civil War, when
    slave owners occasionally would present a barrel of salt pork as a
    gift to their slaves.

•   In the modern usage, the term refers to congressmen scrambling
    to set aside money for pet projects in their districts.

•   Typically, much of Congress’ pork barrel spending is done in
    gigantic, multibillion-dollar omnibus spending bills. Critics say most
    of the “pork” is included in the spending bills passed before an
    election year. That allows incumbents to go before their
    constituents and boast about projects that help the local
    community -- such as roads, dams or government installations.
•   Block Grants:
•   Categorical:
•   Government Project Grants
•   Pork barrel

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