Federal grants-in-aid and types of federal grants

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States and Federal Government Sharing Resources

Remember, federalism produces a dual system of government, one in which two basic levels operate over the same people and the same territory at the same time. As a result of this complex arrangement, competition, tensions, and conflict are a regular and ongoing part of American federalism. In short, the American federal system is much like a tug-of-war, a continuing power struggle between the National Government and the States.

Federal Grants-in-Aid- Grants of federal money or other resources to the states & their cities, counties, and other local units. Many of these governments are regularly strapped for funds; these grants often help them perform a large share of their everyday functions. Grants-in-aid are based on the National Governments taxing power. The Constitution gives Congress the power in order, to ‘pay the Debts & provide for the common Defense & general welfare of the United Sates,…’ Article I, Section 8, Clause 1’

Types of Federal Grants- Block grants, Categorical grants, & Project grants

Other forms of federal aid- Federal give support in other ways, for example, the FBI gives extensive help to state & local police. The Army & Air Force equip & train each State’s National Guard.

State Aid to the National Government- Intergovernmental cooperation is a wo-way street. That is, the states and their local government also aid the National Government in many ways. Thus State & local election officials conduct national elections. These elections are financed with State and Local funds, and they are regulated largely by State laws.