Final answer:
A block grant is an allocation of federal funds to states with considerable discretion in spending for broader policy areas. These grants contrast with categorical grants, which are more prescriptive and aligned with specific administrative standards and outcomes.
Step-by-step explanation:
A block grant is a type of federal financial aid that comes with less stringent administrative conditions, offering states greater latitude on how to spend the funds allocated. These grants align with the strategy to recognize state sovereignty and to support states in making decisions on resource allocation that best suit their populations. Unlike block grants, categorical grants are federal transfers designed to restrict recipients' discretion in the use of funds and subject them to strict administrative criteria, such as project selection, performance, and financial oversight.
Block grants became more prominent in the 1980s under Reagan's administration as part of a belief in decentralizing control to states. Moreover, block grants are favored by states due to their flexibility and fewer restrictions in comparison to the more prescriptive categorical grants. However, federal authorities often prefer using categorical grants for greater control over outcomes and accountability.