If one leve of government provides money to another level of government and it is distributed according to a particular set of rules that specify who is eligible for the grant and how much each eligible applicant will receive, it is known as a_____.
A.) Block grant
B/) Project grant
C/) Hugh grant
D.) Formula Grant
What does your text say?
The correct answer is D.) Formula Grant.
Explanation:
Formula grants are a type of financial assistance provided by one level of government (usually a higher level, such as the federal government) to another level of government (e.g., state or local governments). These grants follow specified rules or formulas that determine how the funds will be distributed among eligible recipients.
The key characteristic of formula grants is that they have a set of rules or a formula that determines eligibility and the amount of funding each recipient will receive. These rules typically consider various factors, such as population size, poverty level, or specific needs of the recipients.
On the other hand, block grants (option A) are fixed amounts of money given to state or local governments to address specific policy areas. Project grants (option B) are awarded to specific projects or initiatives based on a competitive application process. Hugh Grant (option C) is a reference to the English actor and not relevant to government funding.