Block Grants

From LoveToKnow Charity

Block grants make it possible to have programs at the state and local level that help those in need.

What Are Block Grants?

A block grant is a large sum of money granted by the federal government to a state or local government. The money is issued as a lump sum with provisions on how the money is to be spent. A block grant is for general areas of need instead of a specific area. There are many different types of block grants from ones addressing issues of crime prevention to those of community development.

The federal government awards the block grant directly to the state. Individuals are not the direct recipient of the grant. The State then determines who is eligible for the specific grant and is responsible for distributing the money or services.

Advantages of Block Grants

There are advantages to block grants since they give state and local governments the ability to try out new programs and ways to spend the grant. Opponents of block grants say a disadvantage of this type of grant is that federal government cannot track the way the money is being spent or see the program's final outcomes. There is not as much administrative reporting done with a block grant so many see that as a major advantage as well. There are many reasons to support block grants. Without federal funding, many state or local programs would simply not exist.

Types of Block Grants

There are a wide range of block grants available. Some examples include:

  • The Community Development Block Grant was started in 1974. It remains one of the longest running grant programs and is part of the U.S. Department of Housing and Urban Development. The funds awarded are used for community development at the local level. This includes areas such as housing and anti-poverty. The restrictions on this grant are up to the specific state government. The State determines who is eligible and places the restrictions on the funding.
  • The Social Services Block Grant gives funding to States to provide social service programs to individuals within that specific state. Social service programs include child daycare, adult daycare, protective services, transportation, substance abuse counseling, mental health, independent living and employment services. Each State is responsible for their own programs and determining who will receive the funds.
  • Temporary Assistance to Needy Families is a block grant used to help needy families with children. The purpose of this grant is to keep the children at home with their custodians. It also provides pregnancy prevention programs and programs that encourage a two-parent household.
  • Indian Housing Block Grant provides assistance to low-income American Indians and Alaska Natives for housing. This block grant is awarded to tribes for the purpose of making housing an affordable option.
  • Mental Health Block Grant is dedicated to improving mental health services throughout the United States. This grant is awarded to the State to provide the best possible mental health services to those needing assistance.

End Notes

Block grants are a valuable resource issued by the federal government. There are many state and local programs that give assistance to those needing help through funding from a block grant. Many programs are funded by the federal government but overseen as a state or local level. There are a wide range of programs covered under block grants.



 


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