Question

Which of these is an example of a categorical grant? a. a housing program with broad goals for states to target specific needs b. a reduction in education funds for states that do not achieve national standards c. a federal program designed to help states with environmental cleanup d. a community development grant that uses state tax dollars

Answer 1

A housing program that targets the specific needs would fall under the purview of  a categorical grant.

What is a categorical grant?

The allocation of funds by the central or the federal authorities for the purpose of spends on specific activities or programs are regarded as categorical grants.

The development of a housing program that restricts its targets to the specific housing needs can be regarded as a part of categorical grants.

Hence, option A holds true regarding the categorical grant.

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