Final answer:
The question does not provide specific details about a tier system for federal grants, but generally, a large district with significant federal funding likely receives categorical grants that have stipulated uses and conditions.
Step-by-step explanation:
A large, centralized district receiving big funding from the Federal government is likely engaged in various projects supported by federal grants. These grants, often provided as categorical grants, come with specific conditions that determine how the funds must be used.
The tier system isn't specified in the provided information; however, it may imply a classification within the grant allocation process, which could be related to the size of the grant or its strategic importance, with Tier 1 possibly being the highest level of funding and conditions.
When the federal government distributes grants-in-aid, these funds have 'strings attached,' ensuring that the money is used for the intended purposes, such as road construction, education, and urban renewal. If the funds are not utilized correctly according to the stipulated rules, they must be returned to the federal government.
This system of funding is part of the evolution of American federalism and aligns with the redistributive role of the national government, especially in supporting low-income and disadvantaged citizens.