The Block Grant: Lessons from Two Early Experiments

The block grant is rapidly becoming the most controversial & confusing form of federal assistance to state & local governments. This is due partly to a lack of understanding in the Congress & the executive branch of the conceptual & operational differences between this instrument & the other major components of the federal aid system -- formula & project-based categorical programs & general revenue sharing. As a result, the block grant has been associated with several interrelated but sometimes conflicting purposes & political pressures. It is attempted here to remove some of the confusion surrounding the block grants. Following a brief description of the evolution of the block grant concept, the essential characteristics of this instrument are identified & compared with the realities of implementation, as reflected in the experiences of the two oldest block grants. The lessons from those programs & their implications are then examined. AA.