Federal grants-in-aid used only for a designated activity are called

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Categorical grants are federal grants-in-aid that are provided to state and local governments for a specific and designated purpose or activity, such as education, transportation, or healthcare. They are sometimes also referred to as formula grants because the funding amount is determined by a formula based on factors like population or need. Block grants (B) are federal grants-in-aid that provide state and local governments with more flexibility in how they use the funding, with fewer restrictions on the specific activities it can be used for. Revenue-sharing grants (C) provide states with a share of federal revenue, with more discretion in how the funding is used. Targeted grants (D) are not a commonly recognized term for a specific type of federal grant-in-aid. Streamlined grants (E) also do not refer to a commonly recognized category of federal grants-in-aid.

Federal Grants-In-Aid Used Only for a Designated Activity Are Called