If you’re looking for information on grants and how they can benefit you, this article will go over an important type of grant. Block grants have been around since 1966. They are used to support different social programs such as public housing, education, professional skills development, and even Medicaid. Keep reading below to learn more about blocks grants.
Overview
A block grant’s main function is to help local governments manage and fund their social programs. By setting guidelines over which groups and organizations receive funding, state governments can prioritize the needs of their own community.
Although block grants haven’t been as widely used in the past 5 years — the Medicaid block grant was rejected in 2017 — the U.S. Department of Housing and Urban Development still receives the Community Development Block Grant.
Critics of Block Grants
Even though block grants are designed to benefit social programs and promote better social welfare, there has been criticism over their use. Most of the criticism has to do with the flexibility of how the money is spent. Federal funding can be misused by local governments and it’s often difficult to track where the money is going.
Critics also say that with block grants local government authorities often choose to give the funding to people and groups with greater political influence, instead of to those who need it most. States argue that they have a better understanding of their needs and don’t trust the Federal government’s opinion on where the money should go.
Block Grant Examples
Mental Health Block Grant (MHBG)
Created in 1981, the Mental Health Block Grant has funded millions of dollars to states in the treatment of mental illnesses. The Mental Health Planning Council offers advice on how best to use the funding.
Community Development Block Grant (CDBG)
This grant is operated through the Housing and Urban Development agency and has supplied more than $160 billion in grants. The CDBG is distributed based on a community’s needs, taking into account poverty and population growth.
Social Services Block Grant Program (SSBG)
Operated by Health and Human Services (HHS), this block grant is more broadly used to promote self-sufficiency and protect children from abuse, neglect, and exploitation. The SSBG also helps people who can’t live alone find the best solution for assisted living.
State Control
Block grants are a great way for the Federal government to supply funding to States in order to increase the effectiveness of social programs. Although some argue that it can give too much power to local authorities, others argue that block grants are necessary for local governments because they know who needs funding the most.
