Final answer:
A categorical grant is funding for a specific research project, which is option A. These grants have strict conditions and often require matching funds, mainly used for predefined national objectives like research, education, and emergency relief.
Step-by-step explanation:
An example of a categorical grant is A. Funding for a specific research project. Categorical grants are federal transfers that limit recipients' discretion in the use of funds, subjecting them to strict administrative criteria, and often require matching funds. They are targeted for specific policy areas and objectives, like education, research, and disaster relief. Unlike block grants, which offer more flexibility and general use without strict conditions, categorical grants typically have 'strings attached' to ensure that the funds are used exactly for the intention they were provided. The national government heavily uses categorical grants for this control over outcomes and to ensure that federal money is spent in ways that directly align with national policy goals.