Lump sum of money given to a state or local governing agency based on a formula to be spent in generally eligible areas. Purposes are broadly defined and few restrictions are mandated from the funding source. Restrictions can be imposed by the re-granting agency.
Federal funds made to a state for the delivery of a specific group of related services, such as drug abuse related services.
The federal government creates certain programs as block grants. These are programs which allocate money to states according to a formula, and the states have broad discretion in how to spend the money.