A federal program that gives a state government federal funds to address a specific need but gives the state wide latitude in deciding how the funds will be spent is known as a

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A block grant is a federal program that provides a fixed amount of money to the states without restrictions on how the money should be spent. This gives the states more flexibility in determining how they allocate the funds to address specific needs. Categorical grants, on the other hand, are federal programs that provide funds to states for specific purposes and often come with more requirements and guidelines for their use. As such, a block grant aligns with the description given in the question.

A Federal Program That Gives a State Government Federal Funds