Certified Government Financial Manager (CGFM) Practice Exam 2025 – Your All-in-One Guide to Exam Success!

Block grants are designed to provide state and local governments with significant flexibility in how they utilize federal funding. These grants allocate funds for broad purposes, allowing recipients the discretion to develop and implement programs that best address their specific needs. Because block grants are less restrictive compared to categorical grants, which are earmarked for specific programs or activities, they enable jurisdictions to prioritize their own policy goals and adapt their spending to local conditions.

In contrast, categorical grants often require compliance with stringent guidelines and specific objectives, limiting the way funds can be used. Project grants are typically awarded for specific projects with detailed requirements. Formula grants are distributed based on predefined formulas, which may restrict recipient agencies in how they can allocate or spend the money.

The design of block grants aims to empower state and local governments, giving them the authority and flexibility necessary to tailor responses to their populations' unique circumstances, making them a preferred choice for many in regards to funding with autonomy.