A grant is both financing and governance. Formula grants distribute money according to statutory criteria; project grants are awarded competitively or for approved proposals. Matching requirements can encourage state spending, while reporting and performance conditions make recipients accountable for national objectives.

Acceptance ordinarily creates duties defined by the grant statute and award. A state cannot take the money while disregarding clear lawful conditions, but an agency cannot invent obligations beyond the authorization. Examine whether the condition was stated in advance and connected to the funded program.

Do not use "grant" as a synonym for mandate. A grant offers funds on conditions; a mandate imposes a duty independent of accepting funds. The practical pressure may be substantial, yet the legal mechanisms—and the constitutional questions they raise—remain different.

Video lesson: Federalism: Crash Course Government and Politics #4