Question

What do you think could be some drawbacks to funding grant programs based upon the concept of block or formula grants? Please cite your source if you used one. Thank you for your help.

Answer 1

Answer )

• Carl W. Stenberg, “Block Grants and Devolution,” in Intergovernmental Management for the 21st Century, eds. Paul Posner and Timothy Conlan (Washington, DC: The Brookings Institution Press, 2007), p. 263.
• Pietro Nivola, Comments at a forum on “Block Grants: Past, Present, and Prospects,” The Brookings Institution, Washington, DC, October 15, 2003, at http://www.brookings.edu/comm/events/20031015_panel2.pdf.
• ACIR, Block Grants: A Comparative Analysis, A-60, 1977, pp. 8-11, at http://www.library.unt.edu/gpo/acir/Reports/ policy/A-60.pdf.

Block grants mechanism have been a part of the American federal grant system since 1966.This is one of three general types of grants programs, general revenue sharing, categorical grants and block grants.

Such grants are paid in form of grant-in-aid uses to give to state and local governments as pre specified amount to support them in addressing big social problems, like community development, public health, law enforcement or/ and social services. The Block grants increase the implementation and efficiency as well as effectiveness by redistributing power and accountability by process of decentralization.

Block grant critics argue that block grants can undermine the achievement of national objectives and can be used as a “backdoor” means to reduce government spending on the most important issues. In such process funds are typically distributed using a formula that may be prescribed in legislation or regulations; the recipients have right to use at their discretion in different activities aimed at addressing national objectives.

Block grants amount often face resistance in US Congress , as they concerns about recipients’ management capacity and commitment to the program. The recipients’ may not capable to make a right decision or allocation of granted fund .Someone also argued that decision makers prefer categorical grants to provide greater opportunity.Some critics also say that federal and local officials can use their increased programmatic flexibility to use and retarget the grant away from individuals with the greatest need toward with political influence.