What defines category grants in government funding?

Category grants are specifically defined by their provision of financial resources designated for a particular category of purpose, such as education or public health. This means that the funding is earmarked for specific areas, ensuring that the money is used to address defined needs or objectives within those categories. This structured approach allows governments to direct resources effectively towards key areas of policy or service provision that they want to promote or improve.

In contrast, the other choices reflect different types of funding mechanisms. Funding not tied to specific program outcomes relates more to general funding, while block grants typically provide broader funding with fewer restrictions but may involve matching funds from states. Competitive bidding processes emphasize the allocation mechanism rather than the purpose designation. Thus, the correct characterization of category grants highlights their targeted intention and specific use, which aligns well with the role they play in government funding.