Categorical grants are restricted funds that are intended for a specified purpose, to address a particular educational need or accomplish a specific educational objective. These funds, depending on the type of grant, are most often related to the effort to allot resources in order to address the needs various student populations present or provide an incentive for local educational agencies (LEAs) to create, sustain, support, and/or reform an educational program or initiative. To that end, the overarching aim of categorical funding mechanisms is to ensure access and maximize the potential for the success of otherwise at-risk students. To do so, categorical programs are designed to provide supplemental funding to serve students and sustain programs without any cost to LEAs’ general funds.

This entry first discusses the ...