Grants the federal government gives to the states that comes with specific strings attached are called Categorical grants.
There are two types of grants given by federal government i.e., Block grants and Categorical grants. The basic difference between there two is that block grants can be used for any purpose decided upon by the state or city whereas categorical grants must be used for a specific, designated purpose.
Categorical grants are also called conditional grants, are grants issued by the United States Congress which may be spent only for narrowly defined purposes. Categorical grants are funds the federal government gives to state and local governments to spend on specific activities within specific programs.
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