Open End Grants Pros And Cons

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Open ended grants/categorical (mandatory or discretionary programs) : These type of grants stimulate the economy at state and local levels. Many public assistance programs like Medicaid, Head Start, unemployment insurance, housing and food stamps are grouped in this category but have specific program limitations for a given period. These programs are audited (administratively check) to ensure recipients are using these funds appropriately based on the matching requirements and fiscal budget.

State and local governments may be required to contribute partially to programs stemming from nonfederal revenue. When local and state governments have to spend more on these programs less of their own revenue is spent on programs of their choose and

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