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If a state accepts a federal grant-in-aid, it must ____________.

A. reimburse the federal government after a specified period
B. match the funds with twice that amount in state funds
C. None of these answers is correct
D. reduce its income tax rates to adjust for the increased income
E. comply with federal restrictions on its use

User Leyo R
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Final answer:

When a state accepts a federal grant-in-aid, it must comply with federal restrictions and use the funds for their specific intended purpose, according to the rules attached to the grant.

Step-by-step explanation:

When a state accepts a federal grant-in-aid, it must comply with federal restrictions on its use. These grants are transfers of money from the federal government to state or local governments designed to support various activities and encourage them to follow federal policy objectives. The money has strings attached, meaning it can only be used for its intended purpose and must follow specific rules. If the grant funds are not used according to these guidelines, they may have to be repaid to the federal government.

User Scofield
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