Both block grants and categorical grants are the result of the United State's federal system. In a federal system, the federal government is in charge of certain government functions (for example, national defense), and the local and state governments are in charge of other government functions (for example, education). But the federal government often tries to influence state and local governments by offering money grants in exchange for complying with their requirements. For example, all states have adopted 21 as the legal age to drink in large part because the federal government requires the states to enact this rule in order to receive money for their highways. So even though states are in charge of patrolling their own highways, they must adhere to the federal government's wishes on the drinking age to receive desired funding for their highways.
Conditions of aid- “strings” attached to the grant. Tells the state what it must do to get some grant money. For example, if a state does not establish a highway beautification program, or lower the number of teen fatalities due to driving, it will lose 10% of its federal highway aid money. Most conditions are common sense- nondiscrimination, environmental protection, fair labor practices, and equal access. Others, can impose sanctions (penalties) of loss of funds if certain conditions are not met.
Conditions of aid- “strings” attached to the grant. Tells the state what it must do to get some grant money. For example, if a state does not establish a highway beautification program, or lower the number of teen fatalities due to driving, it will lose 10% of its federal highway aid money. Most conditions are common sense- nondiscrimination, environmental protection, fair labor practices, and equal access. Others, can impose sanctions (penalties) of loss of funds if certain conditions are not met.