18.3 Grants and Other Money Transfers as Intergovernmental Relations

Many intergovernmental relations involve money transfers, often with the federal government providing aid to state and local governments or the state transferring funds to local governments.

Grants are funds provided by one level of government to another. When a federal or state agency offers a grant to a local government, it represents a form of intergovernmental relations, with funds moving from one government to another. These financial transfers are crucial for local governments to implement various programs and services they might otherwise be unable to afford.

There are two main types of grants: block grants and categorical grants. Block grants are awarded for general purposes, giving the recipient considerable discretion in how to spend the money. For example, the Local Law Enforcement Block Grants (LLEBG) Program allows communities to develop their own responses to local crime and drug problems, providing the flexibility to address specific needs within their jurisdictions effectively.

Categorical grants, on the other hand, must be spent on specific purposes according to set rules or projects. One type of categorical grant is a formula grant, distributed according to a set of rules that specify eligibility and funding amounts. For instance, the federal government provides formula grants under the Violence Against Women Act, requiring states and territories to allocate funds to law enforcement, prosecution, courts, and victim services according to specific percentages.

Another type of categorical grant is a project grant, awarded based on competitive applications to perform specific tasks or functions. An example is FEMA’s Assistance to Firefighters Grant Program, which funds fire departments based on the merit of their applications to improve operations and safety measures. These grants ensure funds are used for well-defined purposes and often lead to significant improvements in public services and infrastructure.

This video offers an overview of FEMA’s Assistance to Firefighters Grant Program, which “is designed to enhance the ability of the fire service to protect the public and emergency personnel. The program helps meet the human resource, material, and programmatic needs of fire departments across the country.”

Note: The Federal Emergency Management Agency (FEMA) is a federal agency that operates within the Department of Homeland Security.

Reference

Kettl, Donald F. 2012. The Politics of the Administrative Process. 5th ed. Washington D.C.: CQ Press.