What is a block grant?

A block grant is a type of grant that provides funding for a broad set of services or programs under a general category, allowing recipient governments the flexibility to allocate the money to meet specific local needs. This broad coverage means that the funds can be used across various service areas, such as health care, education, or social services, rather than being tied to a single, narrowly defined purpose. This design allows for increased creativity and efficiency in addressing local issues, as recipients can tailor their spending to best fit the needs of their communities.

In contrast, other types of grants, such as categorical grants, are restricted to specific purposes, limiting how funds can be utilized. This flexibility in block grants encourages states and localities to innovate and prioritize their spending in ways that they deem most impactful.