Categorical Grant

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A categorical grant is federal funds to states or local governments for specified programs that in most circumstances require the recipient of the grant to match the money provided by the federal government and usually has strings attached.

An early form of categorical grant is a Land-grant university.[1] The money allocated via categorical grants is one way that the federal government uses money to control the activities of the states.

Categorical grants are one form of Grant-in-aid.

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