Categorical grants can only be used for what purpose?

Categorical grants are designated funds provided by the federal government to state and local governments with strict guidelines on how these funds must be used. This means that the money must be allocated for specific purposes outlined by federal regulations. These purposes typically target funding towards particular programs, projects, or initiatives, ensuring that the financial support addresses specific needs or objectives within the educational landscape or other areas deemed important by the federal government.

This structure helps to ensure accountability and that the funds are being used effectively for their intended purposes. For instance, a categorical grant might be used exclusively for education programs related to low-income students or for improving special education services, but cannot simply be spent at the recipient's discretion or for general operational expenses. This regulation ensures that federal funds are directed to areas with the greatest need or that align with federal policy priorities.