A state is currently spending $40 million on highway improvements.If the federal government promises to pay the state $1 for every $1 spent by the state on highway improvements,it is offering a __________ grant that _________ increase total state spending on highway improvements.

Question

Quizplus · Accepted Answer

A matching grant is a type of grant in which the funding agency (in this case, the federal government) agrees to match every dollar spent by the recipient (the state) with one of its own. Therefore, the federal government will increase the total state spending on highway improvements by $40 million, resulting in a total of $80 million being spent on highway improvements.

A State Is Currently Spending $40 Million on Highway Improvements