Federal grants are typically directed to U.S. state or territory governments and allow those authorities to specifically determine how funds should be allocated and spent. Of course, there are rules and implementation guidelines that vary with each support program, as defined in the authorization regulation. Read more What is a Grant Block? A block grant is a certain type of financial support from the Confederation for a well-defined function. (Editor`s note: Before addressing the nuance of block grants, you should review the terms « federal financial support » and « grant. » The term « block grant » refers to subsidy programs that provide federal assistance for well-defined functions such as local development or social services. Block grants give the recipient a greater discretion than other grants in determining how the funds will be used to achieve a broader objective. 2 The department is free to set shorter deadlines for beneficiaries and funds that are not kept within the prohibited deadlines are withdrawn and reallocated. 1 Low and moderate incomes are defined in the Small Cities CDBG program as the income of « low-income » families, as provided for in the U.S. Department of Housing and Urban Development (HUD) Section 8 Assistance Program. . . .