A federal highway grant will provide funds for roads supplied by state and local governments if these governments pay 50 percent of the cost of the roads. This grant is an example of:

Question

A federal highway grant will provide funds for roads supplied by state and local governments if these governments pay 50 percent of the cost of the roads.  This grant is an example of:

BlackTom AI · Accepted Answer

A matching grant requires the recipient to contribute a specified share of project costs, and a categorical grant is restricted to a specific purpose (like highways). These two concepts together define a matching categorical grant.

1. Relevant knowledge points and concepts
- Categorical grant: federal funds earmarked for a narrowly defined purpose (e.g., highways, education programs) and often accompanied by conditions.
- Matching grant: the recipient government must provide a fixed percentage of the project cost, with the federal government covering the remainder.
- Block or general-purpose grants and revenue sharing are broader and typically have fewer restrictions and may not require matching funds.

2. Step-by-step reasoning
- The federal grant is explicitly for roads (a specific purpose) — that signals a categorical nature rather than a general-purpose or block grant.
- The grant requires state/local governments to pay 50% of the cost — that is a matching requirement.
- Combining these two features (specific purpose + required matching share) yields the classification: matching categorical grant.

3. Calculation example (intermediate steps)
- If a road project costs $1,000,000:
  - Recipient (state/local) pays 50% = 0.50 × $1,000,000 = $500,000
  - Federal grant pays remaining 50% = $500,000
This illustrates the matching share explicitly.

4. Why the correct answer is correct
- The program is narrowly targeted to roads (categorical) and requires an exact percent contribution from the recipient (matching), so “matching categorical grant” precisely describes it.

5. Why other options are incorrect
- General purpose grant: broad use, not limited to roads.
- Revenue sharing: typically unrestricted funds given without such specific matching conditions.
- Nonmatching block grant: block grants are broader and “nonmatching” means no required recipient contribution; this grant does require a 50% match.

6. Conclusion
Therefore the correct classification is a matching categorical grant, which matches the provided answer.

A federal highway grant will provide funds for roads supplied by state and local governments if these governments pay 50 percent of the cost of the roads. This grant is an example of:单项选择题

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