Block Grant

A block grant is a sum of money given by the federal government to state governments, with only general guidelines as to how it should be spent. Although, even if they don't mention it specifically...it probably shouldn't be used to install a plastic ball pit in the state capitol building.

The funds might be for healthcare, housing, education, or infrastructure, but it is up to the state to decide which projects or programs will be funded.

If, for example, you wanted to open a preschool for dogs, you could apply for funding from a Community Development block grant in your state. An ongoing controversy is whether Medicaid should be funded through a block grant to the states, as opposed to funding by the federal government as it is now. States fear they will incur expenses beyond the amount of the block grant, and the federal government fears the money would be used for...other purposes. Possibly a well-founded paranoia.