Each year the Federal Government in the US approves large grants to other levels of government like state and local governments to help them in a certain area like social services for example. – these are known as block grants.
Like most other grants, this is essentially “free money” as they do not need to be paid back to the Government.
The purpose of a Block grant is to give a large sum of money to a state or local government and allow them to decide more specifically where to spend the money.
The general idea behind that is that local governments, because they are closer to the issues affecting their communities, have a better understanding of what needs to be done to help a certain situation in their community.
This creates a win-win situation for the Federal government as much of the more detailed oversight can be done at a local level where the money is being spent.
State and local governments can decide what to do with this money, which is often given out in large “blocks” of money.
Once it’s in their possession they can go about looking for worthy causes in their community that could use funding. These grants have many advantages for a local government because they don’t come with the more specific spending requirements that other forms of government grants have.
Block grants started in the 1970’s under a concept called “new federalism.” This new philosophy stated that instead of centralizing power federally, it was better to de-centralize and allow state governments to have more power over certain aspects of their state.
This is an especially important shift in ideology at the time. This allowed states and local governments to run in a way that benefitted their local area and since different areas in the United States can be vastly different, this made a lot of sense.
For example, the issues that are affecting inner-city New York and those issues affecting rural Oklahoma are very different and therefore the money that they spend on projects in their community may be very different.
One of the great things about block grants is that they favor smaller states. For years, large states got more funding and more attention from the Federal government, but with block grants, this is not the case and their popularity as grown in the past 3 decades.
Can Your Non-Profit Benefit?
If you are involved in a non-profit organization and you are in need of government funding, Block grants may be your answer.
Your local governments have likely received money from a Federal block grant this fiscal year and therefore are looking for worthy projects and causes to help fund with this money.
If your organization is relatively small, yet well known in your community, block grants will have many advantages for you.
Federal grants tend to favor those organizations that are large in scope and known nationally, but Block grants, because they are approved at a local level are good for smaller non-profits.
Examples of Block Grants
Community Development – Block grants have been issued for community development by the Department of House and Urban Development. These grants are given out to local communities to help them address areas like poverty and affordable housing.
Energy Efficiency – In today’s “green” society we are often looking for ways to make our communities more efficient, whether that’s use of energy or fossil fuels. Energy Efficiency and Conservation block grants are given to local or state governments as well as Indian tribes to help make their communities more efficient. The money can fund projects like wind or solar projects.
Social Services – Block grants are also given out to help social services agencies in the local community. Programs that support local mental health, address childcare issues or prevent child abuse are just a few examples of how this money can be spent.
Substance Abuse – A major problem affecting many communities today is substance abuse. Whether for drug or alcohol treatment, this money is given out to local communities to help them deal with areas of substance abuse, addiction and treatment.
Temporary Assistance for Needy Families – This program, otherwise known as TANF is designed to do a number of things. It provides assistance to help children stay with their parents, to encourage a two parent home and also to prevent pregnancy in difficult situation.
Block Grants – A Real Solution
When block grants were first developed they bridged the gap in funding for local projects. They have brought hope and healing to a number of communities through the various projects that they have helped to fund. It’s because of block grants that new energy technologies are being developed, homes are being helped financially and socially, substance abuse is being dealt with in a constructive way and mental health is being addressed.
Without these important grants, many important projects within your community may not have been funded and the benefits never realized.
By: Bradley Barks
About Brad
Brad is our lead researcher and editor - he enjoys business, meditation, being active and always learning - his goal is to successfully help you research, find, secure, and enjoy grants and scholarships.
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