Question

When the federal government offers grant money to encourage states to promote drug education in classrooms, this is an example of:

Answer 1

Fiscal federalism.

Step-by-step explanation:

In the federal system of governance, fiscal federalism is used to allocate competencies and fiscal instruments to the different layers of administration. For example, by means of grants higher levels of governments share countries resources with the lower level of governance. Such allocation can be unconditional and conditional. Conditional allocations vary both in time and geography. Say, a particular state required grant to promote drug education in classrooms in 2017, but the situation improved and it does not need it anymore.