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Jimin Ryu

on 29 September 2012

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by Jimin Ryu AP GOVERNMENT Prezi President Reagan proposed consolidating categorical grants into block grants because he believed states are more conservative that the federal government.

Why did Reagan hold this belief? Question consolidating - reinforce & strengthen
categorical grants - can only be used for very specific purposes outlined by the federal government.
block grants - allow local governments a large amount of discretion as to how they can be used. categorical grants are beneficial because the federal government is able to choose projects based on merit. Because it is not bound by a formula, as with block grants, the federal government can give money to the most worthy applicants. Categorical Grants & Advantages the federal government does not always have a good idea as to how money should be used in a particular community. Also, some communities with fewer resources may not be able to field as compelling an application for the grants as wealthier communities. Categorical Grants & Disadvantages Block Grants & Advantages the federal government usually does not provide much oversight into how the money is spent. So, local governments may use the money ineffectively; but because the money is allocated according to a formula, they will not be held accountable for failures. Block Grants & Disadvantages this is because his entire campaign started with, "I believe in States' rights." Reagan's belief : states are more conservative than the federal government!
So, he believed block grants were of better choice. Significance allow local governments to choose which programs in their community to fund. Often these governments are better able to identify where the money should be spent than the federal government.
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