Federal matching funds are
A) state monies going to support the federal government in its efforts to reduce the deficit.
B) monies going to a state based on a state spending for a program.
C) always distributed to states without any strings attached.
D) only awarded to states that have an income tax.

Question

Quizplus · Accepted Answer

Federal matching funds are monies going to a state based on a state spending for a program. This means that the federal government will match a certain percentage (as determined by law or regulation) of the funding that a state provides for a specific program. The purpose of this is to encourage states to invest in programs that are beneficial for both the state and the federal government, and to ensure that states have the resources they need to provide important services.

Federal Matching Funds Are