Block grants refer to a type of federal funding where the government gives a lump sum of money to states or local governments to use for specific purposes, with fewer restrictions on how it is spent compared to categorical grants.
Related terms
Categorical Grants: These are federal funds given for specific purposes and come with strict guidelines on how they must be used.
Federalism: The division of power between the national government and state governments.
Devolution: The transfer of power from central government to lower levels such as states or local governments.