Fiscal Federalism & the Role of Federal Funds in State Policy


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This is when the federal government gives money to the states with no restrictions on how the money can be used. However, this practice is no longer used:

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1. This is federal money given to a state for a specific purpose, with restrictions on how the money can be used:

2. This is a federal regulation that states must follow. It can be funded or unfunded:

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About This Quiz & Worksheet

Federalism is a term that applies to the relationship between the federal government and individual state governments. You will be quizzed on the terms used to describe the different conditions with which the federal government may allocate money to a state.

Quiz & Worksheet Goals

Here are topics related to federal funding that this quiz covers:

  • Non-restricted use of funding
  • Use of funding for a federally determined purpose
  • Conditions which must be adhered to in order to receive federal funding
  • Allocation of money with little to no restrictions

Skills Practiced

  • Information recall- access the information you've learned about the conditions states must meet to receive federal money
  • Distinguishing differences - compare and contrast types of funding from the lesson, such as non-restricted and restricted use of federal funding
  • Knowledge application - use your knowledge to answer questions about how states receive and use federal funding

Additional Learning

For more details on this important American government topic, please take at the lesson titled Fiscal Federalism & the Role of Federal Funds in State Policy. This lesson will highlight:

  • The origins and evolution of federalism
  • Purpose of the New Deal
  • Federal and state fiscal relationships
  • Significance of The Welfare Reform