A federal grant that gives a state the right to spend money within a broad category is called a

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Block grants give states the freedom to spend money within a broad category, whereas project grants are more specific and give funds for a particular project or program. Community action grants usually go to local organizations for specific community projects, and grant-in-aid generally involves federal money given to states or local governments to support specific policies or programs. State grants are funds that one state gives to another state.

A Federal Grant That Gives a State the Right to Spend