1) Grants-in-aid are intergovernmental cooperation grants that provide federal money to states and local communities to assist with funding for various purposes such as education and infrastructure. 2) Revenue sharing from 1972 to 1987 provided states and local governments with an annual share of federal tax revenues without restrictions on spending. Billions of dollars were distributed overall through this program. 3) Categorical grants allocate federal funds for specific narrowly defined purposes and include rules requiring state matching funds, administration by a designated agency, and adherence to guidelines.

1. Grant and Federal Aid Vocabulary Recap