What type of grants are typically given for narrowly defined purposes such as highway construction?

Categorical grants are specifically designed for narrowly defined purposes, making them a primary source of federal funding for specific projects or initiatives, such as highway construction. These grants come with strict regulations and guidelines on how the funds can be used, which ensures that the money is allocated for its intended purpose. The federal government often uses categorical grants to provide states and localities with the financial resources necessary to support particular programs or projects that align with national priorities.

In the case of highway construction, the federal government may allocate funds through categorical grants to ensure that interstate highway systems meet specific safety and construction standards. This funding structure is critical in maintaining uniformity and achieving desired outcomes across states, as it allows for accountability and monitoring of how funds are spent.

Other types of grants, such as block grants, are given for broader purposes and offer states more flexibility in how they can use the funds. Matching grants require recipients to contribute a certain amount of their own funds to access federal money, while project grants are typically awarded through a competitive process for specific projects but may not be as narrowly defined as categorical grants.